Zimbabwe’s biggest bullion producer, Metallon Corporation has suspended operations at its Arcturus Mine following consistent losses.
Arcturus Mine made a $7 million loss last year despite the acquisition of new equipment which the group expected to turn around its fortunes.
More than 500 of the mine employees downed tools demanding their unpaid wages since April 2015.
Metallon corporate affairs executive Ambassador Zenzo Nsimbi yesterday confirmed the suspension of operations at Arcturus Mine.
“Arcturus Mines is mothballed at the moment, meaning we’ve stopped operations but will keep it in good condition for use in the future. The mine has been consistently making losses and the operations were no longer sustainable,” said Ambassador Nsimbi.
He said the mine made a $600,000 loss in January this year and also made a similar loss in February further forcing the mining group to suspend operations.
“Resource development was done at Redwing Mine and the same could be done at Arcturus, so there’s hope of resuming of operations at the mine in the long run,” said Ambassador Nsimbi.
Arcturus Mine has been operating since 1907 and since dollarisation the mine has failed to operate at its full capacity due to antiquated equipment.
Low global mineral prices have also had an impact on the company’s operations.
“The loss of production due to mothballing of Arcturus Mine will be recouped at Redwing Mine,” said Ambassador Nsimbi.
Arcturus mine was placed under care and maintenance in 2009 and resumed operations in 2013.