BUSINESS WRITER 4 December 2017
HARARE – 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
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.
This includes trade and statutory creditors and the mining rights over
Arcturus mining lease Number 33.
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.