JOHANNESBURG (miningweekly.com) – Power supply interruptions and equipment breakdowns have contributed to a 15% year-on-year decrease in Zimbabwe-based Metallon Corporation’s production for the quarter ended March 31.

The company on Thursday reported production of 20 676 oz for the quarter under review, compared with the 24 386 oz produced in the March 2015 quarter.

“There have been some challenges in production during the first quarter owing to equipment breakdowns at How and Shamva mines and significant power interruptions,” said CEO Ken Mekani.

Metallon noted that it had lost 324 hours of production, or 4 275 oz of gold, in the first quarter of this year, compared with the 167 hours of lost production in the prior comparative period.

However, progress was being made in finding possible solutions to supplement grid power supply.

Also contributing to the lower production was the breakdown of the primary mill and the North shaft hoist at How mine in January and February, while underground equipment breakdowns at the Shamva mine had resulted in challenges in meeting ore generation targets. The Shamva underground equipment had since been replaced.

The Symons crusher at the Mazowe mine, which had also suffered a breakdown in March, had been repaired.

Meanwhile, group C1 and C3 costs for the quarter under review were $884/oz and $1 160/oz respectively, compared with C1 and C3 costs of $773/oz and $962/oz respectively in the March 2015 quarter.

Production shortfalls and higher expenditure had contributed to the higher costs, but Metallon expected production and cost efficiency improvements for the remainder of the year to lead to lower costs.

UPGRADES
The gold producer would, throughout this year, upgrade and refurbish its mining equipment and processing plants to reduce breakdowns, improve efficiencies and lower costs.

“This year we will be investing in our assets by refurbishing and upgrading operations and expanding capacity, which will deliver economies of scale and significantly lower costs.

“This investment and the exploration taking place will put Metallon on course to increase production over the next five years. Metallon is committed to mining in Zimbabwe and we are especially pleased with the tremendous progress at the Redwing mine since the resumption of operations in November 2015,” said Mekani.

Metallon had set a production target of 120 000 oz of gold for this year.