Friday, 30th June 2006 (4425 views)

Zimbabwean gold producer Metallon Gold has announced plans to list on the London stock exchange before the end of 2006 as it looks into options to raise funds, Zimbabwe newspaper The Herald reports.

The country's largest gold mining company needs to raise $100 million-worth of dividends to finance a new opencast mine project, the Redwing Mine, in Zimbabwe.

Metallon currently operates five mines in Zimbabwe and accounts for around a third of the total gold output of the African nation, which itself represents over half (52 per cent) of all mineral exports – an important vehicle for foreign investment.

The announcement comes soon after Metallon said it would miss its target output of 170,000 ounces of gold in 2006 due to a "hostile operating environment" in Zimbabwe.

The country's power stations are currently running below capacity and are in need of renovation while power imports are below the required 35 per cent levels at present, resulting in frequent disruptions.

Zimbabwean president Robert Mugabe has also dealt a blow to the industry recently by announcing plans to acquire 51 per cent of all foreign-owned mining corporations operating in the country.

 

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