A majority of the country’s gold mines shut last year as they struggled
with an economic crisis made worse by hyper-inflation, which made the
local currency worthless.
"The (Metallon) group is currently engaged in discussions with some
lending institutions both local and offshore. We are encouraged by the
positive responses we are getting, especially from local financial
institutions," Collen Gura, the company’s chief executive was quoted as
saying.
Gura said Metallon planned to immediately resume production at two of
its biggest mines – which contribute 66 percent of output and 95
percent of cashflow – and planned to re-open the other three later
using its own resources.
Zimbabwe’s central bank in February allowed gold producers to sell
their own bullion after output slumped by more than 50 percent in 2008.
Last month, London-Listed Mwana Africa Plc (MWA.L: Quote) CEO Kalaa
Mpinga told Reuters the company planned to re-open a Zimbabwe gold mine
within six months after the central bank move allowing producers to
sell gold on the world market.
"This allows us to export gold for our own account and be in control of
our own destiny. Given this background … Metallon Gold is in its
preparatory stages to resume operations," Gura said.
Metallon’s mines have a capacity to produce 15,000 ounces of gold every month.
Gold contributes one-third to Zimbabwe’s export earnings following the
collapse of commercial agriculture after President Robert Mugabe’s
seizure of white-owned farms to resettle landless blacks.
At its peak, the country produced 2,400 kg of gold per month. Last year production stood at a record low of 3,072 kg.
Reuters
Post published in: Economy