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Zimbabwe’s Metallon Corporation halts operations at three gold mines over debts

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The suspension is the latest sign of stress in the Southern African nation’s gold industry, which has been hampered by a shortage of foreign exchange.

Sunday 14, April 2019

Gold producer Metallon Corporation has halted operations at three of its four mines in Zimbabwe because of mounting debts, reported local newspaper, Sunday Times.

Zimbabwean laws force producers to sell their metal to the Reserve Bank of Zimbabwe (RBZ), which only allows companies to retain a portion of their export proceeds.

Metallon suspended operations after a group of workers applied to have business-rescue measures implemented at two of its mines. The workers, through their lawyers, said that they’re owed more than two years’ wages and benefits by Metallon.

In a statement, Metallon Corporation said that the company has since placed its Mazowe, Shamva and Redwing mines under care and maintenance as debts mount.

Metallon owner Mzi Khumalo is said to be considering selling the company’s gold mines, which have accumulated about $200 million of debt.

In addition to the three mines that have been shuttered, Metallon also operates the How Mine in Zimbabwe.

 

TAGS : Metallon Corporation, RBZ, Mzi Khumalo

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