METALLON Gold Zimbabwe Private Limited will resume operations at its Redwing mine in Penhalonga near Mutare in July after its closure during the 2008 hyperinflation period.
In an interview with New Zimbabwe.com Friday in Mutare, Metallon Corporate Affairs Executive, Zenzo Nsimbi said operations at Redwing stopped in 2008 after Reserve Bank of Zimbabwe (RBZ) raided their gold bank and failed to pay them.
He said since then the company failed to pay electricity to the Zimbabwe Supply Authority (ZESA) resulting in power disconnections.
“We were disconnected by Zesa and we could not pump water. Our shafts were flooded because we were mining under Mutare River. We stopped operations but we are now resuming,” said Nsimbi.
He said the company has procured three state of the art heavy duty pumps to de-flood the shafts.
Nsimbi said close to 290 workers have been re-engaged for training while the number is expected to increase to 700 in July when they are expecting more funding to flow in.
He said their Indigenization proposal has been approved by government and the company will inject $500 000 towards Community Share Ownership Trust to benefit the local community this year.
“Communities will also be allocated claims to mine gold as part of our community broad based empowerment programme. The company will also help
with giving technical assistance to small scale miners,” said Nsimbi.