Metallon expects to lift Zimbabwe gold output to 150,000 oz this year - CNBC Africa

Metallon expects to lift Zimbabwe gold output to 150,000 oz this year


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Gold mining company Metallon Corporation's Zimbabwe business expects to raise output by more than half to 150,000 ounces this year.

This is as its mines move to operate at full capacity, the company said on Wednesday.

The unlisted London-based group operates five mines in Zimbabwe through its Metallon Gold unit, the largest bullion producer in the southern African country.

(READ MORE: Zimbabwe's Jan-July gold output down 26% yr-yr)

Metallon said its output of 98,864 ounces last year had just missed a target of 100,000 ounces because of power shortages caused by heavy rains in December.

"Group gold production guidance for 2015 is approximately 150,000 ounces. Of this, approximately 130,000 ounces will be achieved by ensuring full operating capacity for all our mines," the company said.

A further 20,000 ounces is expected to come from retreated waste at one of its mines north of Harare.

Last year chief executive Ken Mekani said Metallon Gold planned to ramp up output to half a million ounces a year within five years and would be looking for acquisitions.

The price of gold rallied to a 12-week high on Wednesday as sharp falls in stock markets and other commodities prompted investors to buy the metal as a haven from risk.