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Metallon Gold Zimbabwe, which operates four gold mines in the country, is yet to comply with the indigenisation regulations while it claims it is in talks with Government to resolve the issue.The company is wholly owned by Metallon Gold South Africa.

“We are 100 percent owned by Mr Mzi Khumalo. Discussions are being held with the Minister (Youth Development, Indigenisation and Empowerment Francis Nhema) and there are several scenarios being thrown around,” said the company’s corporate affairs secretary, Mr Zenzo Nsimbi during a tour by the Portfolio Committee on Mines and Energy of Shamva Gold Mine last week.

He said the company was considering empowerment credits for the assistance it gives to local communities, including businesses.

The Indigenisation and Economic Empowerment Act requires that foreign-owned companies with a value of US$500 000 should cede 51 percent shareholding to indigenous Zimbabweans.

Mr Nsimbi said Shamva Gold Mine had only released US$25 000 for the Community Share Ownership Scheme because it was facing financial challenges.

The company pledged US$3 million to the scheme.

“We had to take that money from one of our mines (How Mine) because we did not have money,” he said.

Metallon owns Shamva, Mazoe, Arcturus, Redwing and How Mines.

Meanwhile, Mr Nsimbi said the company requires US$78 million for its operations at Shamva.

Metallon Gold Zimbabwe is the largest gold producer in the country.

Source : The Herald