September 21, 2017

More opportunities for local suppliers in Zimbabwe’s gold sector

Zimbabwe’s biggest gold producer, Metallon Corporation, says it is targeting to produce 115 000 ounces of gold this year – up from 94 000 last year.

The company says this will open opportunities for local suppliers of goods and services.

Metallon’s General Manager, Kimpton Chiwota, told business representatives at the on-going 7th Buy Local Summit in Victoria Falls on Thursday that the mining sector was short of equipment supplies. This is a gap in the market where local companies can fill, he said.

Metallon has 15% of Zimbabwe’s gold production of 23 tonnes, but it aiming to increase its output.

“We are aiming for 20% more than what we did last year, but the challenge is the lack of capital goods available locally. The Mining Industry Surveillance report for 2016 showed that 78% of capital goods needed in mining are sourced offshore, which leaves a balance of 22%, which should come from local producers,” said Chiwota.

Metallon Corporation is a  low-cost gold mining company with four underground mines locally and exploration assets in Zimbabwe, Tanzania and DRC.

In Zimbabwe the company owns How Mine, Mazowe, Redwing and Shamva.

In 2016, revenue from the mining sector was US$1.8 billion, 50% of which was from gold. In 2015, gold output was 40% of annual revenue from mining.

“Gold mining is a growing industry and there is a huge opportunity for increasing local content,” said Chiwota.

 

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