Shamva Mine loses vehicles in auction

HARARE - Gold producer, Metallon Corporation (Metallon)’s Shamva Gold Mine is to lose cars at an auction on August 8, according to a notice released by the firm that is conducting the auction released on Wednesday.

Bindura-based Miracle Auctioneers said the sale of the gold miner’s assets was with regards to a case between the firm and Premier Service Medical AID Investment. “Duly instructed by the Sheriff of the High Court of Zimbabwe, we shall sell by public auction the following assets to the highest bidder…Toyota Hilux, Nissan NP, Nissan NP,” said the statement.

Shamva is one of the country’s oldest and major gold mines.

This comes as Metallon this week laid out a series of post poll plans underpinned by a decision to invest $530 million into its four mines in Zimbabwe and beef up output.

In a major confidence boost to Zimbabwe, which held tightly contested polls on Monday hoping to end an investment drought, Metallon said it was planning to maintain its stronghold in gold mining in a country where it is already the biggest producer. The group will pour $110 million into Mazowe Mine, $150 million into Shamva Mine, $120 million into How Mine near Bulawayo and $150 million into Red Wing Mine.

This is according to statements released on Tuesday, as the Zimbabwe Electoral Commission began announcing results of the polls that many say will have a huge bearing in the direction of foreign investment in the post Robert Mugabe era.

Metallon will shut down underground operations at two of the mines for about 24 months, while extensive dewatering at Redwing will be undertaken to expose gold seams, as it prepares the mine for extraction.

Some of the group’s staff will be placed on short week while it reviews operations, according to the statement.

“Due to recent political changes and renewed confidence in Zimbabwe, GFM (Gold Fields of Mazowe) is now in a strong position to invest in its gold mining operations,” Metallon said referring to its operation in Mazowe Mine.

Mazowe holds about 1,8 million ounces of gold reserves.

“GFM will be undergoing a significant modernisation and investment programme in order to introduce mechanisation and commence volume mining and mining at surface. Underground mining will be suspended and accelerated development will be carried out while production takes place from the newly commissioned 60 000 tonnes per month sands plant,” said Metallon.

“Due to recent political changes and renewed confidence in Zimbabwe, GFS (Goldfields Shamva) is now in a strong position to invest in its gold mining operations. At GFS, underground mining will be suspended while redesign and development of underground operations takes place. Production will commence from mining at surface with current processing operations. Two new flotation based processing plants will be constructed. The first 150 000 tonne per month plant will be built by 2020 and process ore from near-surface. The second 100 000 tonne per month plant will be commissioned in 2022 and will be supplied from underground ore after the sinking of a new shaft. New tailings storage facilities and infrastructure upgrades will also be required,” the statement noted.

— The Financial Gazette

Comments (1)

ha ha - and this Metallon is being held up as a big investor into ZW to the tune of 530 million USD. ! So some cars are sold off so that some small debts can be paid off ! Metallon sounds abit dodgy if you ask me - like LONRHO the former owners of the mines

ace mukadota - 6 August 2018

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