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Conrad Mwanawashe and Tinashe Makichi
PREMIER bullion producer, Metallon Gold, has set aside a capital expenditure budget of $34 million for this year giving impetus to production forecasts of about 30 percent above last year.

Metallon Gold expects production to shoot above 130 000 ounces from underground operations helped by the resumption of mining operations at Redwing Mine and the setting up of re-treatment plants at Mazowe mine.

These efforts will help increase production to 150 000 ounces this year, according to Metallon Corporate Affairs Executive Ambassador Zenzo Nsimbi.

Mining operations at Redwing Mine in Penhalonga were suspended due to flooding but dewatering is continuing and the mine is expected back in production.

“Production forecast for 2015 is expected to be plus or minus 30 percent of last year’s forecast, yielding 130,000 ounces from underground operations. This will be achieved by resuming operations at Redwing Mine and ensuring full operating capacity for all our mines,” Ambassador Nsimbi said.

Redwing Mine averages about 30,000 ounces per annum at full capacity.

The company is putting up tailings re-treatment plants at Mazowe Mine.

“This programme should increase production from the current forecast of 130 000 to 150 000 ounces,” he said.

Last year Metallon Group forecast to produce 100, 000 ounces but fell short by about one percent.

“The company met 99 percent of this forecast and fell short by one percent. The shortfall was caused by; power cuts associated with the rainy season and pen stock failure at Shamva Mine which resulted in a five day loss of production,” said Ambassador Nsimbi.

Metallon Gold, which is owned by South African mining tycoon Mr Mzi Khumalo boasts of five gold mining operations in Zimbabwe; How Mine, Shamva, Acturus, Mazowe and Redwing mines.

The group produced 156 000 ounces in 2006 at its peak position the group as Zimbabwe’s number one gold producer.

Metallon Gold plans to float on London’s main market in the second half of this year.

Reports from London said Metallon Gold has engaged broker Canaccord Genuity and lawyers Norton Rose ahead of the listing.

In his 2015 National Budget statement the Minister of Finance and Economic Development Patrick Chinamasa said by October 2014 a total of 11,1 tons of gold was delivered to Fidelity Printers and Refiners, surpassing the minimum annual requirement of 10 tons for the country’s re-accreditation into the London Bullion Marketers Association.

Government projects exports to increase by five percent to $3,832 billion with gold contributing four percent.

Minister Chinamasa also said there is need for unification of the various Government agencies overseeing the operations of the mining sector for us to fully account for gold production and monitoring in the country.

In this regard, a Gold Compliance and Enforcement Unit is being established with the task of coordinating the operations of all various stakeholders.

“This will facilitate realisation of Government desired goals, principally to increase gold production and enhance deliveries to Fidelity Printers and Refiners,” Minister Chinamasa said.

The Unit will comprise of the stakeholders from the Ministry of Mines and Mining Development; Ministry of Finance & Economic Development; the Reserve Bank of Zimbabwe; ZRP; the Environmental Management Authority; Fidelity Printers and Refiners; the Zimbabwe Revenue Authority; and Rural District Councils.