Metallon Gold workers resume work

Business Reporter
ABOUT 500 Metallon Gold Zimbabwe workers at Arcturus Mine who downed their tools a fortnight ago demanding their outstanding wages spread over five months have returned to work.

Metallon Gold corporate affairs executive Ambassador Zenzo Nsimbi told Business Chronicle yesterday that the workers returned to work following a successful negotiation between the company and employees’ representatives.

“The workers have gone back to work after we engaged them and we’ve reached an understanding. After a board of directors’ meeting we’ll be issuing a statement on what we’ve agreed with the workers,” he said.

Ambassador Nsimbi is on record as saying the wage arrears were a result of the $7 million loss the mine has incurred due to the current low gold price regime.

On the international market, gold is presently trading at $1,243 per ounce. Arcturus Mine has been operational since 1907. Following the adoption of a multicurrency system in February 2009, the mine has failed to operate at full throttle due to obsolete equipment.

Low global mineral prices have also had an impact on the company’s operations. Arcturus Mine comprises four underground mining operations namely Venus, Gladstone, Ceylon and Viceroy.

The mine processes underground ore using a combination of a carbon-in-solution/carbon-in-pulp circuit.

Metallon Gold Zimbabwe, the country’s biggest gold producer which also owns three other mines namely Shamva, How Mine, and Mazowe Arcturus – intends to inject over $294 million to expand its operations over a five-year period through 2019.

Of this investment, $78,3 million generated from internal cash resources and bank facilities was expected last year. The expansion projects, it is believed, will increase production from the 90,000 ounces (about 2,5 tonnes) produced in 2014 to about 30 percent of Zimbabwe’s current gold output.

Plans are also in the pipeline to re-open Metallon’s Redwing Mine with $4,8 million earmarked for the mine’s restoration exercise, which involves a process that includes dewatering and plant and equipment rehabilitation.