Businessman Tawanda Nyambirai has snapped up Arcturus Mine from Metallon Corporation (Metallon).The London-listed firm placed Arcturus Mine under care and maintenance in the 2016 first quarter with mining operations suspended due to consistent losses.
As part of the transaction, Metallon ceded all of its rights and obligations concerning Arcturus Mine — a gold resource of one million ounces with exploration potential — to TN Securities, an investment firm owned by Nyambirai.
Metallon chief executive Ken Mekani said the sale of Arcturus Mine was in line with the gold producer’s strategy to prioritise investments, focus resources and reduce costs.
The Mzi Khumalo-owned mining giant has four operating mines and over eight million ounces of gold resources.
“The transaction provides the mine, which was on care and maintenance, with the opportunity for the resumption of operations, leading to job creation and increased gold output for the country,” he said.
Arcturus is a robust asset with a significant gold resource and Metallon received offers from a number of potential investors, both from within Zimbabwe and abroad, Mekani said.
“We have taken the decision to sell the mine to a Zimbabwean company in order to empower local investors. As the leading gold mining company in Zimbabwe and a significant employer, Metallon is committed to operating and investing in Zimbabwe,” he added.
The latest announcement comes after Metallon in September said it was restructuring its business as part of a strategy to increase efficiencies and meet growth targets.
Metallon runs four mines, namely How Mine, Mazowe, Redwing and Shamva. Each of these mines is now operating under separately registered companies, namely Bulawayo Mining Company, Goldfields of Mazowe, King’s Daughter Mining Company and Goldfields of Shamva, respectively.
The companies will have their own boards and management that will now assume all responsibilities over operations and suppliers, thereby reducing bureaucracy and bringing renewed focus across the group. New managing directors have been appointed to run the operations.
“As the country’s leading gold producer, Metallon has a duty to invest in production and help meet national gold output targets. Metallon has an ambitious plan to increase gold production. As part of that plan, we had a thorough evaluation of our structure and operations,” Mekani said.
“One of our key findings was that in order for us to efficiently exploit our assets in the future, we require each mine to focus clearly on managing their own operations.
“Reorganising the group will allow each operation to manage and exploit the vast potential of our assets more efficiently. By empowering each mine, we are making the company stronger as a whole,” he said.
The reorganisation is a continuing exercise and stakeholders will be updated on material developments as necessary. DailyNews