malvernmugadzikwa
Business Writer
President Mnangagwa says challenges at Redwing Mining Company will be resolved soon to ensure the community benefits.
Redwing, situated in Penhalonga, about 30 km west of Mutare, is among four gold mining operations owned by Metallon Corporation.
“Government is in the process of ensuring that issues and concerns around Redwing Mine are addressed,” President Mnangagwa said. “Our youth should be empowered so that they benefit from the mine, currently the owner Mzi Khumalo who bought it is underutilising it and the community is also not benefiting.”
Recently, Redwing employees applied to have the gold mining company returned, for the second time, under the corporate rescue after the Supreme Court nullified the earlier High Court order citing legal technicalities.
The Supreme Court dismissed the locus standi of the Associated Mine Workers Union of Zimbabwe (AMWUZ), which applied for the corporate rescue while the notice of intention, also known as the standard notice to place the company under the reconstruction process, was not properly issued.
The workers made the application at the High Court on the basis that the Supreme Court ruling was basically on legal technicalities and not on merit.
Redwing, estimated to have a gold reserve worth US$30 million, used to produce about 60 kg of gold per month.
According to the competent person report by the Australian firm, Golder Associates, the mine has an estimated lifespan of 70 years at its peak extraction level while the quantified mineral resource is approximately 2,63 million ounces of gold.
Online Reporter