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ZIMBABWE’S largest gold producer, Metallon Corporation says it plans to spend $294 million across its five mines between 2015 and 2019 to boost output to more than 500,000 ounces per annum. Metallon has five mines and these are Mazowe, Shamva, Arcturus, How Mine and Redwing. The Redwing mine was put under care and maintenance in 2008 but is due to resume operations next month.

In a statement, Metallon said $69 million would be spent at How Mine, jolting gold output to 100,000 ounces per annum by 2019, while Shamva would increase production to 96,000 ounces per year after a $54 million capital injection. At least $52 million would be channelled towards improving production efficiencies at Mazowe Mine which will increase output to 141,000 ounces per year while Arcturus would be developed to the tune of $46 million, increasing production to 108,000 ounces per annum by 2019.

At Redwing Mine, $73 million would be spent, increasing production to 111,000 ounces per annum. Some of the developments to be undertaken include the Mazowe and Shamva sands retreatment projects, underground exploration and development, shaft upgrades and deepening and shaft sinking.

Metallon said the operating environment in Zimbabwe remained favourable and focus would be put on maintaining low operating costs. “Government has come up with favourable policies for mining companies to incentivise investment in the sector. “These include reduction in the royalty rate from seven percent to five percent of revenue in October and exemptions on customs duty and import taxes on capital items during exploration and development phases.

The government is considering further policy review to assist mining companies during times of declining commodity price,” the company said. Metallon is targeting to increase its output from Zimbabwe to 120,000 ounces this year from 99,000 ounces last year. The company also has exploration assets in Tanzania and the DRC. — New Ziana