SHAMVA Gold Mine has reopened after Landela Mining Venture
acquired and injected fresh capital into the business, previously owned by
Metallon Corporation.
“We are almost one month into production and we are now
focusing on growth,” Landela chief executive Mr David Brown told The Herald
Finance and Business yesterday.
Metallon suspended operations at three of its mines
including Shamva and Mazowe last year due to mounting debts estimated at US$200
million. The Associated Mine Workers Union of Zimbabwe applied for the
reconstruction order of the two mines while Mr Reggie Saruchena of Grant
Thornton was appointed the interim corporate rescue administrator. Dr Cecil
Madondo of Tudor Consultants was also appointed to deputise him for purposes of
rescuing the two mines.
Mr Brown said Landela was also working on improving
production at Freda Rebecca in Bindura while the acquisition of Mazowe Gold
Mines was close to finalisation.
“The major drawback for Freda is Covid-19 but we are
working on trying to improve production. What we will basically do is to inject
capital to maintain production and then to expand operations,” said Mr Brown, a
former chief executive of Implats.
Landela has been buying mining various assets in platinum,
nickel and chrome sectors.
The company is now a significant shareholder in the
Zimbabwe Stock Exchang-listed Bindura Nickel Corporation, Great Dyke
Investments, which is building a platinum mine expected to become the country’s
largest ahead of Zimplats, Mimosa and Unki as well as ZimAlloys, which owns
smelters and significant chrome reserves.
Earlier, a local consortium, Vara Mining, made a bid for
Mazowe and Shamva mines and had indicated plans to invest as US$120 million
over three years towards expansion.
The consortium had already secured offshore funding with
the objective to sweat both assets to optimal returns premised on expansion at
both Mazowe and Shamva to achieve economies of scale mainly by developing near
surface resources to augment underground operations and introducing industry
best practices across the value chain.
Metallon used to be the country’s largest gold miner,
accounting for more that 50 percent of output. The company, founded in 2002
when Mr Mzi Khumalo, one of most recognisable businessman in South Africa,
acquired Lomnin’s Zimbabwean gold mining assets for US$16 million.
Government is banking on mining and agriculture as proving
impetus to stimulate economic resuscitation. Herald
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