Blow for Mzi Khumalo’s mines control bid

Business Writer

Businessman, Mzi Khumalo’s fight for control of Mazowe Gold Mine in Mashonaland Central Province and Redwing Mining Company in Manicaland, suffered a huge setback after workers, for the second time, applied to have the two gold mines placed under corporate rescue.

Mazowe and Redwing had been removed from the corporate rescue after the Supreme Court cited some legal technicalities when the initial orders were granted by the High Court.

That effectively returned the control of the mines to Khumalo’s Metallon Corporation.

However, the workers have again applied to have the mines placed under corporate rescue.

Apart from Mazowe, one of the oldest gold mines in the country and Redwing, Metallon also owns How Mine in Matebeleland-South province, 30 kilometers southeast of Bulawayo in southern Zimbabwe.

Hearings of the applications by Redwing and Mazowe employees, are now pending before the High Court.

In both applications, workers have nominated Knowledge Hofisi as the corporate rescue manager.

Reggie Saruchera of Grant Thornton and Cecil Madondo of Tudor House Consultancy, were initially appointed to lead the corporate rescue at Mazowe in February 2020, while Hofisi was appointed to lead Redwing.

At its peak, Metallon produced about 100 000 ounces of gold from its four mines, Shamva, Mazowe, Redwing and How. The company, however, halted operations at Redwing, Mazowe and Shamva in 2019, weighed down by debts of US$200 million.

The company has a significant mineral resource of 8,3 million ounces of gold, at the last available estimate in 2016.