Metallone Gold Zimbabwe suspends listing at the London Stock Exchange

HARARE, ZIMBABWES key gold mining outfit, Metallone Gold Zimbabwe has said it has been forced to suspend plans to list at the London Stock Exchange after potential investors in that country showed they were pessimmistic about the safety of their investment in the country, where new government policies are thretening private enterprise.

The government of Zimbabwe has been planning a controversial law aimed at taking over 51 percent of stock held by foreigners in every business to give to locals.

Gura warned that potential investors could be forced to continue watching from the sidelines if the mining industry’s proposed laws are no revisited.

“We were going through a listing process at the London Stock Exchange in the last four years, we have been failing, Gura said while presenting a paper on empowerment in Zimbabwe at the Chamber of Mines of Zimbabwe annual congress in Harare last week.

Metallone runs five mines in Zimbabwe.

The inlude Shamva Gold Mine, Arcturus Mine, How mine Red Wing Mine and Mazowe Mine, which were aquired from Lonrho in 2002.

Metallone Gold had major expansion plans in Zimbabwe but these have been hampered by the non payment of gold by the Reserve Bank of Zimbabwe last year were the company was estimated to be owed about US$20 million in October.

The expansion plans had forced the company to seek a listing at the Londo Stock Exchange to raise the funds.

In November Metallione temporarily suspended.

We were talking to people who were prepared to put in money and wait for while you sink in a shaft. When they asked for our address, we told them we were from somewhere in Africa. Because of a document that has been not well thought after (Metallone has failed to list). These are the same sources of funding that is needed to run the mines, Gura told the congress.

Prime Minister Morgan Tsvangirai said at the congress is expected the mining industry to attract between US$6 billion and US$16 billion in exploration and mine development investment between 2011 and 2018.

He however warned that indeginisation should not be used for political mileage.

The term indigenisation tends to raise emotions when it is used merely as a political gimmick to win votes, Tsvangirai said.

He added: The concept of indegenisation should be one of ensuring that the ordinary Zimbabweans benefit from the countrys mineral endowment and participate at all levels in the business of mining and mineral exploration.

The manner in which this approach and objective are realised has to, as a matter of principle, lead to growth of the economy and uplifting of the standards of living of our people. There should be no preferred class or people in adopting this approach and realising this objective.

Gold mines in Zimbabwe operated under difficult conditions.

At last weeks AGM, Gura said, however that it was possible for Zimbabwe to reach three million ounces per annum with the right policies and health investment levels.

He proposed, instead that any empowerment programme should leave 60 percent shareholding to foreign investors to encourage capital inflows.

Post published in: Economy

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