MZI Khumalo’s Metallon Gold does not suffer a crisis in confidence, that’s for sure. The company is still targeting 500,000 ounces in annual gold production by 2019, but with production only likely to hit 120,000 oz in 2016, and with some $400m needed in funds, it’s hard to see how this target is achieveable. One plan is to expand the mill at its Mazowe mine, but Metallon has conceded finance is hard to come by when you’re operating in Zimbabwe. Power constraints – the company lost 324 hours of production in its first quarter alone – and uncertain business climate only makes matters harder for Khumalo. The adoption of bond notes by the Zimbabwe Reserve Bank in lieu of bank notes raises concerns about how gold producers such as Metallon are going to be reliably paid for their supply of gold to the central bank. There’s also political troubles. In an effort to cut down on artisanal mining at its Redwing mine, Metallon made some 12,000 hectares of mineral-bearing land available to the local community only for stories to emerge that politically-connected individuals in Harare were, in fact, the beneficiaries. Still, Khumalo is resiliant which has helped Metallon become Zimbabwe’s largest gold producer, business conditions notwithstanding.
LIFE OF MZI
He’s a former political prisoner who spent time on Robben Island. He holds a B.Com from Unisa and has been a non-executive director of Mintek, Telkom, McCarthy Retail, Ridge Mining and Anglo American Corporation. He’s best known for his role in the collapse of JCI in the mid-Nineties when he and the late Brett Kebble took over the corporation which had been earmarked by Anglo American Corporation as its first major BEE venture.
“We look forward to the continued expansion across the group.”
- Web Address: www.metcorp.co.za