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Lovemore Zigara, Midlands Bureau
SHURUGWI-based Golden Quarries gold mine is in financial dire straits amid reports that workers have gone for three months without pay.

Recent demonstrations at the mine, which is a subsidiary of Falcon Gold (Falgold), have crippled operations at the mine.

Business Chronicle visited the mine after employees’ wives forced operations to come to a halt demanding that their husbands be paid before they could return to work.

Police had to be called to intervene and arrest some of the women.

Responding to e-mailed questions, Falcon Gold board member, Mr Jack Murehwa, said the mine will soon settle its outstanding commitments as both mining and processing were now back on line.

“Falgold’s wages are in arrears from July to date. For some time, it has not been possible to meet the full wage obligations due to mining production constraints that required addressing. The mining and production constraints were then addressed, to a large extent, during July and August,” he said.

“During that period, very little production occurred resulting in minimum resources being available to meet our obligations, including wages. Both the mining and processing are now back on line and in a couple of months, it should be possible to significantly address most of the outstanding commitments.”

Mr Murehwa said capital for equipment replacement and availability of working capital were the major constraints but said Falgold had managed to shore up capital to recapitalise operations.

“However, after marshalling some resources, it was possible to address some of the capital issues.

“Hoisting capacities were improved and urgent requirements at the processing plant were addressed.

“As a result, we are now back on track and beginning this September, we are working towards capacity,” he said.

Falcon Gold in July hinted on shutting down operations in Zimbabwe after reporting a $2.4 million loss in the six months to March 2017.

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