South African mining magnate Mzi Khumalo is among Zimbabwe’s high net investors. File picture: Independent Media
JOHANNESBURG – South African businessman Mzi Khumalo has put two of his mining operations in Zimbabwe under business rescue to protect equipment and other assets from creditors.
Khumalo’s Mazowe and Shamva mines filed for business rescue last week as Mazowe and his company, Metallon Corporation, struggled to remain afloat. Metallon said it remained hopeful that “with the partnership and support of the Ministry of Mines and Mining Development, our previously stated plans for future expansion” can be successful.
Metallon problems mirror struggles of precious metal miners in Zimbabwe, with RioZim recently battling the central bank to recover funds it said were owed in unpaid gold deliveries.
The gold mining industry is one of Zimbabwe’s projected growth areas. Foreign suppliers are now limiting advances of equipment and other imported raw materials as a result of delays in receiving payments.
The miners’ plight has been worsened by demands for wage increases, with mine workers and employers agreeing to an 80 percent salary hike for mine employees for 2018.