Mining company Metallon Gold is seeking alternative power sources to ensure uninterrupted production at its five mines in Zimbabwe, following the loss of at least 6 000 oz in potential output as a result of outages since the beginning of the year.

The company says its How, Shamva, Acturus, Redwing and Mazowe mines suffered 112 hours of lost production, owing to Zimbabwe’s worsening electricity situation during the second quarter of 2016.

“Metallon is working on possible solutions to supplement the power supply grid,” the company says in a statement.

However, during the second quarter, the five mines reported a 9% surge in combined gold production to 22 565 oz, owing to outstanding production from the How mine. Production for the two quarters amounted to 43 238 oz.

Metallon CEO Ken Mekani says the group is pleased with the increase in production and is investing in several expansion projects, which will enable it to achieve its 2016
production target of 120 000 oz.

“Construction of the new processing plant at Mazowe is 80% complete, with all key equipment on site and confirmation from our contractors that the new plant will be commissioned in the first quarter of this year,” he says.

“We look forward to continued expansion and reaffirm our production target of 120 000 ounces in 2016. Metallon is currently investing significantly in Zimbabwe, with [ongoing projects including] the deepening of the shaft at the How mine and the refurbishment of the processing plant at the Shamva mine.

“We are also expanding at the Redwing mine while running a targeted exploration programme across the group. “This large capital expenditure
programme, over the next few years, will considerably increase our production and generate future revenue.”

Meanwhile, the cash shortage in Zimbabwe, which has worsened during the past two months, has negatively impacted on mining activities, with companies experiencing long delays in the processing of payment for imported raw materials and other essentials.

However, Mekani is hopeful that new mining industry priority payment arrangements being made by the Reserve Bank of Zimbabwe will alleviate the liquidity crisis in the short term.