ZMDC gold mine fend off debtors

ZMDC gold mine fend off debtors
Published: 27 July 2017
JENA Gold Mines, owned by the State's Zimbabwe Mining Development Corporation (ZMDC), got a reprieve from debtors when the High Court ordered a creditors' meeting to consider a moratorium on claims.

Jena mine in Silobela, 60 kilometres outside Kwekwe, produced 309 kilogrammes of gold in 2012, realising $16,1 million in revenue, according to the latest available annual report on the ZMDC website.

"The purpose of the scheme meeting is to consider and, if deemed fit, to agree (with or without modification) to the scheme, which in essence is a moratorium with creditors to hold in abeyance all debts/claims against the applicant company for an agreed period to enable it to put in place a turnaround strategy to increase production and eventually pay off the creditors," said a notice of the scheme meetings issued in line with a High Court order of July 12.

The first meeting was held on Tuesday in Bulawayo, with two others expected to follow, on August 23 in Harare and August 24 in Kwekwe.

Late last year, ZMDC officials announced they were negotiating a $6 million recapitalisation package with Fidelity Printers, the country's sole gold buyer owned by the central bank.

Jena, which employs 600 people and is the biggest gold mining operation in the Midlands, has been the target of bailiffs enforcing court orders to recover several debts owed to the mine's various suppliers.
- online
Tags: ZMDC,

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