Zimbabwe’s leading gold producer, Metallon Corporation says it has spent US$12 million on capital expenditure in 2016 as part of efforts to boost operations and has set the first quarter of this year for the commissioning of the new Mazowe processing plant.
The gold mining concern, which has just announced a 40 percent improvement in earnings before interest, taxes, depreciation and amortisation (EBITDA) to US$18.6 million in 2016, from US$13.3 million in 2015 says it is committed to improving its operations in Zimbabwe.
In 2016, capital expenditure across the group was US$12 million of which US$3.7 million was sustaining and restoration capital and US$8.3 million expansion capital spent on new projects.
According to the firm, commissioning of the Mazowe processing plant which had to be postponed due to equipment delays is now scheduled for the first quarter of 2017.
Economic analyst Dr Mthokozisi Nkosi urged other gold producers to increase investments in their operations in order to boost national gold output.
Metallon chief executive officer Mr Ken Mekani attributed the solid performance by the group to improved cost efficiencies at How Mine and a strong gold price.
While gold production for full year 2016 was 94.212 ounces, a 2 percent decline from the 96.530 ounces produced in 2015, the group is targeting 115.000 ounces of gold in 2017.
The firm is also targeting improved development and increased production across the group and ramp up at Redwing Mine.