Mining ZimbabweLatest Mining News, Policy and Industry Updates

AIM Stock Exchange-listed mining and exploration junior, Premier African Minerals Limited, has secured approximately $4.35 million from a fundraising initiative, marking a crucial step toward restarting operations at its Zulu Lithium and Tantalum Project in Fort Rixon, Mining Zimbabwe can report.

By Rudairo Mapuranga

The fundraising effort includes a retail offer of $2.87 million through the issuance of 8.263 billion new ordinary shares at a price of 0.0275 pence per share, alongside a $1.5 million share placing. This ensures the company has the necessary capital to complete the final commissioning of the Primary Flotation Plant and purchase a Secondary Flotation Plant at the Zulu project.

The retail offer, part of Premier’s larger strategy to resume full-scale production at Zulu, comes at a 30% discount from the 15 January 2025 mid-market closing price. The success of the offer remains conditional on the new shares being admitted to trading on the AIM market of the London Stock Exchange by 23 January 2025.

Most of the funds raised will be directed toward critical operational needs, beginning with a 3-to-5-day test run of the plant. This phase is expected to cost $800,000 and includes the commissioning of the Secondary Flotation Plant. Additionally, $250,000 will go toward settling deferred VAT and other statutory obligations owed to the Government of Zimbabwe. Premier will also allocate $400,000 to cover overdue employee salaries and wages, and $180,000 will be used to pay suppliers of plant spares and maintenance costs.

The remaining balance from the fundraising will be used for partial payments to contractors and other creditors, facilitating the continuation of commercial operations at Zulu.

Alongside this, Premier has been negotiating with various creditors, suggesting they accept new shares as partial or full settlement of debts owed by the company and the Zulu project. The company expects these discussions to conclude shortly, with shareholders receiving updates on the issuance of settlement shares once agreements are finalized.

In the world of gold mining, the choice of extraction methods can significantly impact the environment. Traditionally, cyanide has been the go-to chemical for gold leaching due to its effectiveness and relatively low cost. However, in recent years, alternatives like CNlite have emerged, touted for being safer and more environmentally friendly, Mining Zimbabwe can report.

By Rudairo Mapuranga

This article compares CNlite with cyanide, focusing on their environmental effects and the growing demand for greener mining practices.

Cyanide: An Effective but Controversial Method

Cyanide has been used in the gold mining industry for over a century, offering an efficient way to extract gold from ore. However, its environmental implications are significant. Cyanide is a toxic substance that poses severe risks to water sources, soil, and ecosystems if mishandled or if accidental spills occur. Cyanide spills have been responsible for the contamination of rivers and ecosystems, often leading to fish kills and long-term damage to local wildlife.

Moreover, cyanide poses a significant threat to human health. Communities near gold mining operations risk exposure to cyanide-contaminated water and air, which can result in respiratory issues, skin irritation, and even death in extreme cases. Despite advances in technology and strict regulations designed to mitigate these risks, accidents and mismanagement still occur, leaving cyanide as a controversial chemical in the mining industry.

CNlite: A Greener Alternative

In response to the environmental and health concerns posed by cyanide, CNlite was developed as an eco-friendly alternative for gold leaching. CNlite is non-toxic and biodegradable, making it a safer option for both miners and the environment. Unlike cyanide, CNlite does not pose the same level of risk to water sources and ecosystems, significantly reducing the potential for contamination.

From an environmental perspective, CNlite has several advantages over cyanide:

1. Reduced Toxicity: CNlite is non-toxic and does not produce harmful by-products. This eliminates the risk of toxic spills that can devastate ecosystems, unlike cyanide, which can cause long-term environmental damage.
2. Biodegradability: CNlite naturally breaks down in the environment, reducing the chances of residual contamination. Cyanide, on the other hand, requires additional processing to detoxify before disposal, often at a significant cost and risk.
3. Lower Environmental Risk: The use of CNlite reduces the environmental footprint of mining operations. This is particularly important in sensitive ecosystems or areas where local communities rely on clean water sources for agriculture and daily living.

Cost vs. Environmental Responsibility

While CNlite presents a more environmentally responsible choice, the transition from cyanide to CNlite is not without challenges. Cyanide remains cheaper and widely available, which continues to make it attractive for many gold mining operations, especially in developing nations where cost is a key consideration. However, the long-term environmental costs associated with cyanide spills and contamination can far outweigh the initial savings.

Investing in CNlite and other non-toxic alternatives signals a shift towards more sustainable and responsible mining practices. As global awareness of environmental issues grows, and as governments and international organizations tighten regulations on mining operations, there is likely to be increasing pressure on companies to adopt greener technologies.

A Choice for the Future

The comparison between CNlite and cyanide reveals a clear winner in terms of environmental sustainability. While cyanide remains a powerful tool in gold extraction, its risks to the environment and human health cannot be ignored. CNlite, with its non-toxic, biodegradable properties, offers a compelling alternative that aligns with modern demands for eco-friendly mining practices.

As the gold mining industry evolves, the adoption of safer, greener alternatives like CNlite is not just a responsible choice; it is an essential step toward minimizing environmental impact and protecting the communities that live near mining operations. Ultimately, the future of mining lies in sustainable solutions, and CNlite is leading the charge in that direction.

In recent weeks, anti-Chinese sentiment has been on the rise across several African nations, with protests and violent incidents reported.

By Ryan Chigoche

In the Democratic Republic of Congo (DRC), locals have targeted Chinese nationals in response to frustrations over Chinese involvement in illegal activities.

Recently, a Congolese court sentenced three Chinese citizens to seven years in prison after they were arrested with gold bars and $400,000 in cash. They were found guilty of illegal activities related to the artisanal mining sector.

The case marks a significant milestone, as the trio are the first Chinese nationals to stand trial since the DRC launched its latest crackdown on unlicensed extraction of the country’s valuable and strategic minerals, particularly in its conflict-torn east.

In addition to the prison sentence, the judge ordered the three individuals to pay a fine equivalent to $600,000 and permanently banned them from entering the DRC once their sentences were served.

Back home in Zimbabwe, Chinese companies have gained increasing control over the country’s mining sector. Data from the Centre for Natural Resource Governance released late last year reveals that 58% of Zimbabwe’s mining operations — 83 out of 148 mines — are now owned by Chinese firms.

This growing dominance is particularly significant in gold, black granite, and lithium-rich regions, where China has made substantial investments. From the gold-rich Kwekwe to the lithium reserves of Mutoko, Chinese investors are securing key mining operations across the country.

However, Chinese interests in Zimbabwe’s small-scale mining sector continue to benefit from strong protection from the politically powerful. In some cases, Chinese companies are even involved in land grabs, particularly in the chrome sector, where they have been accused of pushing local miners off prime mining areas. This trend has led to further frustration among locals, as these foreign entities benefit from political ties that shield them from accountability, while local miners are left marginalized.

Many small-scale Chinese mining operations in Kwekwe have been accused of operating without proper registration, a problem that was raised by Zimbabwe’s parliament in 2013. Despite a two-year investigation, most of the Chinese companies visited by the Parliamentary Portfolio Committee on Mines and Energy could not produce the required documents, raising concerns about transparency and the government’s ability to regulate foreign operations.

These unregistered mines are often accused of cutting corners and neglecting environmental protections, all while benefiting from political connections that protect them from scrutiny.

Rising discontent is also apparent in the eastern region of Zimbabwe, where Chinese companies are accused of operating illegally, damaging the environment, and violating the rights of local miners. This frustration with Chinese businesses has spread to Mozambique, where protests have erupted against Chinese-owned companies.

In Mozambique, Chinese businesses are perceived to be closely aligned with government officials, leading opposition parties to accuse the Chinese government of fostering corruption. This has fueled further anti-Chinese sentiment, with protests increasingly targeting Chinese-owned businesses and illegal operations. The situation underscores a growing dissatisfaction with Chinese investments across Africa, driven by concerns over exploitation, environmental degradation, and perceptions of corruption.

As anti-Chinese sentiment continues to grow, it remains to be seen whether other countries, like Zimbabwe — with significant Chinese involvement in illegal and unregistered mining, particularly in the small-scale sector — will follow the DRC and push for accountability.

Local miners in Zimbabwe, represented by the Zimbabwe Miners Federation (ZMF), are actively advocating for foreigners to be banned from operating in small-scale mining. This movement is driven by frustration over foreign dominance in the sector. However, it remains uncertain whether these efforts will be successful, given the delays by the government on the Mines and Minerals Amendment Bill.

The bill aims to regulate mining and prospecting in Zimbabwe and also establish a Mining Cadastre Registry, which would make mining title information publicly available — a development that would combat corrupt mine grabs.

A Congolese court has sentenced three Chinese citizens to seven years in prison after finding them guilty of illegal activities linked to the artisanal mining sector. The defendants, arrested with gold bars and $400,000 in cash, are the first Chinese nationals to stand trial under the country’s intensified crackdown on unlicensed mineral extraction.

The judgment, delivered in Bukavu, the capital of South Kivu province, includes a $600,000 fine and a permanent ban from Congo upon completing their sentences. The court convicted the trio on charges of money laundering and illegal purchase and possession of mineral substances but acquitted them of fraud and illegal mineral extraction due to insufficient evidence. Despite pleading guilty to four charges, the defendants claimed ignorance of Congolese law, a defence their lawyers plan to use in an appeal.

“This is an educational trial that should normally serve as a wake-up call to all Chinese nationals who think they can leave China, arrive in Kitutu, Kibe, Lugushwa, Kamituga, or Mwenga and behave as if they were in their own room, without even paying the hotel fees,” said Christian Wanduma, a lawyer representing local communities.

The case comes amid Congo’s ongoing struggle to prevent unlicensed companies and armed groups from exploiting its vast mineral reserves, which include cobalt, copper, and gold. The nation’s mineral wealth, often unregulated, has fueled corruption, environmental harm, and conflict, particularly in the eastern regions.

Public outrage over illegal mining activities has intensified in recent weeks. Last week, protesters in Bukavu condemned the release of Chinese men detained in a separate illegal mining case. Civil society leader Nene Bintu expressed the frustration of many, saying, “Our minerals are being plundered by companies that are mostly Chinese-owned, and our people remain in extreme poverty. The roads are very dilapidated, and we have difficulty accessing drinking water, health care, education, electricity, and employment. This situation has gone on for too long and must end now.”

In 2021, authorities banned six Chinese-owned mining companies for alleged illegal operations. The latest trial underscores Congo’s renewed commitment to regulating its artisanal mining sector, though critics argue that more robust measures are needed to protect local communities and ensure equitable distribution of mining revenues.

Saudi Arabia’s recent announcement of a joint venture (JV) between Aramco, the world’s largest oil company, and the state-owned mining company Ma’aden highlights a model Zimbabwe can emulate to drive economic growth and reduce its reliance on external sources of capital. The partnership, aimed at extracting lithium from high-concentration deposits, aligns with Saudi Arabia’s Vision 2030 to tap into $2.5 trillion in untapped mineral resources and increase mining’s contribution to GDP.

By Rudairo Mapuranga

Zimbabwe, rich in minerals such as gold, lithium, and coal, could similarly benefit from investing in mining exploration and opening its own state-controlled mines. By strategically utilizing its mineral wealth, the country could significantly reduce government tax dependency while allowing local businesses to grow. Such investments would generate profits that could be reinvested into state-owned industries or even the agricultural sector, creating a more sustainable economic framework.

Exploration: The Key to New Wealth

Saudi Arabia’s approach demonstrates the importance of prioritizing exploration. The country’s push to discover recoverable gold and copper deposits in the Arabian Shield through the world’s largest single-jurisdiction mineral exploration program shows the potential rewards of investment in new mining ventures. Zimbabwe could similarly increase funding for geological surveys and exploration, targeting key mineral-rich areas like Kamativi, which has seen past investments of under US$0.5 billion.

Zimbabwe’s Minister of Finance should ensure that exploration becomes a priority in the national budget, with the goal of opening a new state-controlled mine every year. By taking ownership of these ventures, Zimbabwe could channel profits back into the national economy, benefiting all citizens.

Building State-Owned Mines for Future Growth

Kamativi provides an excellent example of how targeted investment in exploration and mining can yield economic benefits. The investment required to restart mining operations there was less than US$0.5 billion, showing that even with modest funding, Zimbabwe can unlock substantial value from its mineral reserves. If the government commits to developing a new mine each year, the revenue generated could significantly alleviate the tax burden on citizens and businesses.

Furthermore, Zimbabwe has vast lithium deposits, among other critical minerals, which are essential for the global green energy revolution. By developing its own mining projects, Zimbabwe can better position itself in this booming sector, reducing reliance on foreign companies that often dominate the mining space.

Channelling Profits to Industry and Agriculture

The profits from state-owned mines could be used to support other vital sectors of the economy. Just as Saudi Arabia is building an electric vehicle manufacturing hub as part of its mining strategy, Zimbabwe could establish state-owned processing plants that would refine its minerals, adding value before export. This would create jobs and increase export revenues.

Additionally, a portion of mining profits could be directed toward agricultural development, an area in which Zimbabwe has tremendous potential. By investing in state-owned farms or providing financial support to private farmers, the government could boost food production and improve food security.

Reducing Tax Burdens and Stimulating Business Growth

One of the key benefits of state-owned mining is that it could significantly reduce the government’s need to levy heavy taxes on other sectors. With mining profits funding national projects, Zimbabwe could lower taxes on local businesses, allowing them to thrive and expand. This would stimulate further growth in industries such as manufacturing, services, and technology, creating a more diversified and resilient economy.