7 September 2017

Zimbabwe: Metallon Restructures

ZIMBABWE's largest gold producer, Metallon, has restructured the business with the group's mining units becoming independent entities with separate executive management and boards, in an effort to increase efficiency and spur growth.

Metallon said the restructuring of operations was part of a strategy to increase efficiencies, through eliminating bureaucracy, and meeting its growth targets. Gold production in 2016 totalled 94 212 ounces and the target for 2017 is 115 000 ounces. Metallon is focused on increasing gold production significantly through ambitious expansion plans across local operations and developing gold mines in Tanzania.

"As part of this restructuring exercise, each of Metallon's four operating mines will now operate as separate entities. "By making the mines standalone operations, Metallon will increase efficiency and allow each mine to manage its own assets and operations more effectively," Metallon said in a statement.

Metallon Corporation runs four gold mines, namely How Mine, Mazowe, Redwing and Shamva. Each of the mines is now operating under separately registered companies, namely Bulawayo Mining Company, Goldfields of Mazowe, King's Daughter Mining Company and Goldfields of Shamva, respectively.

Metallon, owned by South African magnate Mr Mzi Khumalo, said the companies will have own boards and management assuming all responsibilities over operations and suppliers, thereby reducing bureaucracy and bringing renewed focus across the Group.

New managing directors have been appointed to run the operations. Mr Ken Mekani, chief executive of Metallon, said that as Zimbabwe's leading gold producer, Metallon had a duty to invest in production to help meet national gold output targets. Metallon has an ambitious plan to increase gold production.

"As part of that plan, we had a thorough evaluation of our structure and operations. One of our key findings was that in order for us to efficiently exploit our assets in the future, we require each mine to focus clearly on managing their own operations.

"Reorganising the Group will allow each operation to manage and exploit the vast potential of our assets more efficiently. By empowering each mine, we are making the company stronger as a whole," he said.

Metallon has four gold mining operations and has a world class gold resource of over 8,3 million ounces . How Mine, near Bulawayo, is the flagship mining operation and produces over 55 percent of production. Shamva and Mazowe Mines, both located near Harare, each produce approximately 22 percent and 13 percent respectively while Redwing Mine, near Mutare, is currently ramping up production.


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