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Zimplats Spent Over US$800 Million on Major Projects

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Zimplats Spent Over US$800 Million on Major Projects

The country’s biggest platinum group metal (PGM) producer, Zimplats, has spent US$858 million on its major projects as of June 30, 2024, according to the company’s quarterly report for the period ending June 30, 2024.

By Rudairo Mapuranga

According to the report, Zimplats spent the money on the Bimha and Mupani mine development and upgrade, smelter expansion, solar plant, and base metal refinery refurbishment, against a budget of US$1.239 billion.

“The Bimha and Mupani mine development and upgrade projects will replace production from the Rukodzi and Ngwarati mines, which were depleted in FY2022 and June 2024, respectively, and Mupfuti Mine, which will be depleted in FY2028.

“Cumulatively, US$407 million has been spent on these projects as of June 30, 2024, against a total project budget of US$468 million.

“A total of US$387 million has been spent on the smelter expansion and SO2 abatement plant project, against a total project budget of US$544 million.

“US$36 million has been spent on the implementation of the 35MW solar plant project, against a budget of US$37 million. The solar plant will be commissioned in the first quarter of FY2025.

“A total of US$28 million has been spent on the Base Metal Refinery refurbishment project, against a total budget of US$190 million,” the Zimplats report reads in part.

Under its US$1.8 billion capital expenditure investment, which was launched in 2021, Zimplats’s strategy involves the setting up of integrated projects, including the development of new mines, expansion of the smelter, construction of an additional concentrator, base metal refinery, sulphuric acid plant, and the establishment of a 110-megawatt (MW) solar power plant.

The report also states that mining volumes increased by 2% year-on-year, benefiting from pillar reclamation activities at Rukodzi Mine and the continued production ramp-up at Mupani Mine, which is under development. However, mining volumes declined by 1% from the prior quarter due to higher productivity at Ngwarati Mine’s primary operations ramping down.

The 6E head grade declined by 1% year-on-year and quarter-on-quarter due to an increased contribution of lower-grade Mupani Mine development ore and dilution from mining across geological structures.

According to Zimplats, year-on-year milled volumes improved by 3% due to the higher milling rates achieved, in line with improved mining volumes. Milled volumes decreased by 1% from the prior quarter, however, due to a planned mill reline shutdown at the Selous Metallurgical Complex (SMC) concentrator. Concentrator recoveries were 1% lower year-on-year and quarter-on-quarter due to lower mill feed grades achieved.

The country’s biggest PGM producer said that as a result of the milled volumes and mill feed grade achieved, 6E concentrate production was the same year-on-year and decreased by 3% quarter-on-quarter.

The group said 6E metal in the final product decreased by 4% year-on-year and 5% from the prior quarter.

MIPF 2nd AGM Set for September 30, 2024

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MIPF 2nd AGM Set for September 30, 2024

The Mining Industry Pension Fund (MIPF) is set to hold its second Annual General Meeting (AGM) on September 30, 2024. This meeting aligns with the Pensions and Provident Funds Act (Chapter 24:32), which mandates that all pension funds must hold AGMs for their members, pensioners, and beneficiaries.

By Ryan Chigoche

The Act, effective from October 2, 2023, aims to ensure greater transparency and accountability in the management of pension funds.

In compliance with this regulation, MIPF conducted its inaugural AGM on February 2, 2024, reviewing the fund’s activities for the year ending December 31, 2022. The upcoming AGM, which will focus on the financial and operational aspects for the year ending December 31, 2023, will take place at 0900 hrs at the Anmy Miller Hall, Zimbabwe Agricultural Society Showgrounds, with a virtual attendance option available.

“We take this opportunity to invite all contributing member mines to allow at least two employee members to attend this important event. Please note that all members unable to attend the AGM are entitled to appoint a representative to stand in for them, either virtually or physically, to vote and speak on their behalf by completing and lodging with the Fund the Proxy Form at least 7 days prior to the meeting date,” read parts of the MIPF circular.

The MIPF was established in 1952 through an industrial agreement between the Associated Mine Workers Union of Zimbabwe (AMWUZ), the Mine Officials and Salaried Staff Association, and the Chamber of Mines of Zimbabwe (COMZ). This agreement created the Fund Rules, initially published as Statutory Instrument 771 of 1982 and later replaced by Statutory Instrument 14 of 2016. These rules, however, are currently under review to ensure alignment with the contemporary regulatory and operational environment.

As of December 31, 2020, the fund had 22,495 active members, 42,139 deferred members, 8,080 preserved members, and 11,782 pensioners, with 143 employer members contributing. Ensuring that members receive their pension benefits in compliance with the Fund Rules remains the primary goal of MIPF.

Defold, Bravura Strengthen Partnership with Focus on Community Involvement and Project Progress

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Defold, Bravura Strengthen Partnership with Focus on Community Involvement and Project Progress

Defold Mine Pvt Ltd, owned by the Mutapa Investment Fund, has expressed optimism regarding Bravura’s Kamativi lithium dump processing project.

By Rudairo Mapuranga

The mine is eager to see the completion of civil works by the end of the fourth quarter while ensuring strong community involvement in the project.

In an interview with Mining Zimbabwe, Defold Mine Pvt Ltd Acting General Manager, Wilfred Tanyanyiwa, shared that the project, which had previously experienced some delays, is now gaining momentum.

He highlighted the progress made in the shipment of a state-of-the-art processing plant from South Africa by the vendor, Manhattan Corporation.

“The project is now starting to gain some traction. Since the last update from Bravura in June, when the equipment was 97% complete and they faced challenges with marine transportation, we’ve seen good progress with the latest batch that has arrived in Zimbabwe. We anticipate that the batches will continue to arrive within this quarter, which is Q3. As the government arm, which is a partner in this project, we are hopeful that its implementation may be expedited. We’ve done our part, including granting Bravura an operating license and providing the VAT exemptions they were anticipating. The road is now clear for their equipment to start arriving,” Tanyanyiwa said.

He noted significant progress in the preparation of the plant sites and expressed hope that civil works would commence in the fourth quarter of this year to ensure the steady advancement of the project.

Tanyanyiwa also emphasized the improvements Bravura has made in stakeholder engagement, ensuring that all parties involved are well-informed and actively participating in the project’s development.

“Bravura has improved in terms of engaging with local stakeholders, ensuring everyone is involved in the journey they are embarking on to bring this project to the community. They have engaged with government bodies like the Chiefs DNC and have communicated with community leaders, ensuring that even the Hwange Rural District Council is aware of the developments they are bringing into the community,” he added.

However, Tanyanyiwa pointed out that Bravura still faces challenges, particularly in securing water sources and ensuring a reliable electricity supply for the plant.

He stressed the importance of addressing these issues and also highlighted the need for Bravura to enhance its local employment strategies.

“There are still some issues they are working on, such as securing water sources for the project and ensuring reliable electricity for their plant. We anticipate providing them with the necessary support as needed. However, Bravura could improve by ensuring that local people are employed in their project. While there has been some progress in the construction work, we believe more can be done to involve skilled local labor, especially as the project kicks off. Zimbabwe has many trained graduates who have the capacity to contribute to the project,” Tanyanyiwa noted.

He concluded by stressing the importance of utilizing local talent, given that Bravura is not a Zimbabwean-based company and therefore should ensure local people benefit from skills transfer.

“We believe a good ratio of skilled labour should come from our local workforce. We hope that they can improve their timelines for the project’s implementation. Our goal is to have the project up and running by December 2024, as we have expectations from our ultimate shareholder, the government, and a dividend must be realized from this project this year,” he said.

Harare based Chinese nationals nabbed in Zambia with 29.9 kgs of gold usd$200,000 cash hidden in vehicle

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Harare based Chinese nationals nabbed in Zambia with 29.9 kgs of gold usd$200,000 cash hidden in vehicle

Chinese nationals residing in Harare were intercepted in Lusaka by Zambian authorities, who seized 29.9 kilograms of gold and usd$200,000 in cash hidden within the door panels of their vehicle.

By Ryan Chigoche

This incident marks the latest case of gold smuggling from Zimbabwe. The seized gold is valued at $2.3 million.

The vehicle, registered in Zimbabwe, belonged to Chinese national Zhao Changson. The Zimbabwean license plates suggest that the gold might have been smuggled from Zimbabwe, highlighting the prevalence of gold smuggling beyond its borders.

According to Zambia’s Inspector-General of Police, Graphel Musamba, in a statement issued on Friday, the police received a tip-off on August 12, 2024, about a Toyota Land Cruiser Prado with Zimbabwean license plates suspected of transporting precious stones.

“Acting swiftly on this information, the police impounded the vehicle, which was driven by Zhao Changson, aged 58, accompanied by Zhao Yanjing, aged 46, both Chinese nationals,” Musamba said.

“The search led to the discovery of 29.9 kilograms of gold and $200,000 in cash, concealed within the door panels of the vehicle. The suspects, when interviewed, denied any knowledge of the recovered items,” he added.

In their defense, the female passenger, Yanjing, claimed she had purchased the vehicle less than two weeks ago and was unaware of the hidden gold and cash.

Investigations revealed that the suspects were Chinese nationals residing in Harare, Zimbabwe, and were apparently involved in selling fencing wire. They claimed they were in Zambia to visit a friend, whom they refused to name.

The gold and cash have been securely stored as evidence while investigations continue.

Zimbabwe loses about $1.5 billion annually to the smuggling of precious metals, according to the International Crisis Group.

Bravura Processing Plant Arrives, Civil Works Commence

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Pan-African diversified mining company Bravura has had its state-of-the-art lithium processing plant components delivered to its Kamativi Lithium project site

By Rudairo Mapuranga

The company is concurrently undertaking civil works for the plant foundations and other ancillary structures, Mining Zimbabwe has learned.

Speaking to Mining Zimbabwe, Bravura’s Head of the Kamativi Dump Processing Project, Dr Tafadzwa Murinzi, stated that the relocation of the plant components will continue until all parts have arrived in the country. This process is running concurrently with the ongoing civil works.

“The plant is a 300-tonne-per-hour concentrate facility, translating to a spodumene concentrate production of 70,000 tonnes per annum. The expected grade of the concentrate is 6% lithium oxide. We have started relocating the plant into the country, and this process will continue until all the components are on the ground. Concurrently, we are doing civil works for the plant foundations and other ancillaries. Once that is done, we will commence with plant installation and then commissioning. At that stage, we will begin production,” Dr. Murinzi explained.

Dr. Murinzi also noted that nine containers of the plant have already arrived at the Kamativi Lithium Dump Project site, and the installation and commissioning will follow as soon as the civil works are completed.

According to Dr. Murinzi, Manhattan Corporation, the company responsible for designing and manufacturing the plant, will also handle its installation. However, there is a strong emphasis on involving local personnel to ensure skills transfer during the process.

“The vendor who manufactured the plant will be responsible for its installation to ensure it operates efficiently. However, they will work hand in hand with our local engineers, artisans, and other technical personnel. During this phase, there will be a skills transfer to ensure our team is well-equipped to manage and run the plant after the commissioning process,” Dr. Murinzi said.

She further emphasized that Bravura’s employment criteria favour local people, with general workers being hired from the community and skilled positions sourced from across the country.

“Our vision also includes further beneficiation of the product. For managerial and most technical positions, we look for the skill set within the entire country, while for general workers, we aim to employ locally. We are working closely with local governance structures, including chiefs and councillors, to ensure we hire the right people from the area,” Dr. Murinzi added.

The Kamativi Dump Project head highlighted the significant benefits the local community will gain from the project through employment opportunities and corporate social responsibility (CSR) initiatives, which Bravura will undertake in collaboration with community leadership.

“The surrounding community will benefit primarily through employment creation. We intend to provide a significant number of jobs for the local community. Additionally, we are collaborating with local governance structures to identify the particular needs of the community and engage in programmes that will be most beneficial,” she noted.

“For managing tailings or waste generated from the construction processes, we will have a tailings storage facility. We have already started on the designs, ensuring everything aligns with regulatory requirements for such a facility. It will be lined and placed a certain distance away from water bodies. We are also ensuring that the facility meets ISO requirements and adheres to the best industrial standards,” Dr. Murinzi said.

“In terms of water for processing, we are currently investigating available options and getting assistance from local Zinwa authorities. Our plant will use DMS technology, chosen after thorough evaluation to ensure it includes the latest refinements for improved recovery efficiency and compliance with safety, health, and environmental standards,” she added.

Dr. Murinzi concluded by emphasizing the importance of maintaining strong relationships with vendors and manufacturers, treating them as business partners beyond the supply of equipment.

“We treat all our vendors and manufacturers as business partners. Our relationship with them extends beyond the supply of equipment; we continue working with them to stay informed on new developments. They continuously optimize the plant to ensure it operates according to the latest available industrial standards,” she concluded.

Hwange Set to Continue Underground Mining as Coal Prices Firm

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Hwange Set to Continue Underground Mining as Coal Prices Firm

The government-owned Hwange Colliery Company Limited (HCCL) is poised to capitalize on rising coal prices by continuing its underground mining operations.

By Ryan Chigoche

Initially, HCCL announced plans to halt underground mining in June this year to minimize the risk of spontaneous combustion caused by excess coal, as production was significantly outpacing sales.

However, according to the company’s current management, underground production will continue as HCCL has already opened a new underground mine to take advantage of the firming prices.

Due to technical insolvency and persistent losses, HCCL was placed under administration and is still suspended from trading on the Zimbabwe Stock Exchange. The government owns a 37% stake in the company, with Messina Investments being the second-largest shareholder with a 31% stake.

Although still suspended, the company has seen an improvement in performance. In their last results for the third quarter ended September 2023, HCCL reported a positive performance, producing 989,503 tonnes and selling 911,245 tonnes, almost doubling the 388,487 tonnes sold in the prior comparable period. The improved performance was largely due to efficient machinery acquired in the first quarter of 2023.

Collectively, in the nine months to September 2023, the company saw a 163% surge in sales from 1,060,976 tonnes to 2,795,303 tonnes. Hwange Power Station coal accounted for 43% of the sales, raw coal 39%, Hwange Industrial Coal 17%, with Hwange Coking Coal accounting for just 1%. This surge in sales is in line with the doubled production during the period.

HCCL operates three divisions: mining, real estate, and a medical division. The mining division contributed 96% to the company’s unaudited profit before tax of US$10.2 million in the reported period of 2023, with the real estate and medical divisions contributing 3% and 1%, respectively.

Looking forward, the company aims to regain its market share, as it no longer enjoys the monopoly it once had. New private players in the sector have emerged, all seeking to capitalize on the strengthening global coal prices.

Hwange Council Praises Bravura for Exemplary Community Engagement and Transparency

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Hwange Council Praises Bravura for Exemplary Community Engagement and Transparency

Pan-African diversified mining company Bravura has been praised by the Hwange Rural District Council for its exemplary involvement of the local community in its operational plans and Environmental, Social, and Governance (ESG) strategies, Mining Zimbabwe can report.

By Rudairo Mapuranga

During the inaugural arrival of the first batch of equipment for Bravura’s state-of-the-art processing plant, comprising nine containers, Hwange Rural District Council Engineer, Eng. Alic Mudenda, commended Bravura for its ongoing engagement with the community. Since the company’s inception, Bravura has ensured that the local population understands its vision and is given a platform to contribute ideas on how the company’s operations can positively impact the community.

Mudenda highlighted that Bravura’s approach sets it apart from other mining companies operating in the district, as it prioritizes the needs of the community despite being a foreign entity. He emphasized that this commitment is commendable and reflects Bravura’s dedication to responsible and inclusive business practices.

“What we have learned and observed with Bravura is that since the beginning, they have involved the local authority in their activities, plans, and future direction. As a local authority, we feel honored to be moving forward with them. Unlike other investors who enter an area without notifying the local authority, Bravura has taken a different approach. For instance, they invited us to witness the offloading of their containers, which is their first consignment. To us, this is a very positive step. The project feels like it belongs to us, and we will continue to support them,” Mudenda said.

These sentiments were echoed by Defold Mine Pvt Ltd Acting General Manager and Company Secretary, Mr. Wilfred Tanyanyiwa, who noted that Bravura has significantly improved its engagement strategies and ensured that all stakeholders are involved in enhancing their operational efficiency.

“Bravura has improved in terms of engaging with local stakeholders, ensuring everyone is involved in the journey they are embarking on to bring this project to the community. They have engaged with government bodies like the Chiefs DNC and have communicated with community leaders, ensuring that even the Hwange Rural District Council is aware of the developments they are bringing into the community,” Tanyanyiwa said.

Bravura is set to process a tailings dump in Kamativi using its state-of-the-art processing plant. This operation is in partnership with Defold Mine Pvt Ltd, marking a significant step in their collaborative efforts to bring advanced mining technology and community-centered development to the region.

Zimbabwe gold buying prices per gram 15 August 2024

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Zimbabwe gold buying prices per gram 15 August 2024

Fidelity Gold Refinery (FGR) official gold buying prices/ gram. See the Zimbabwe gold buying prices per gram today 15 August 2024.

SG 90% and ABOVE US$74.64/g
SG ABOVE 85% BUT BELOW 90% US$73.85g
SG ABOVE 80% BUT BELOW 85% US$73.06/g
SG ABOVE 75% BUT BELOW 80% US$72.27/g
SAMPLE BELOW 10g BUT ABOVE 5g US$71.08g

Fire Assay CASH $75.03/g

NB: Fire Assay cash price is for gold above 100gs, no sample is deducted.
For the Fire Assay Transfer price, a sample of not more than 10g is deducted
A 2% royalty is charged on all deposits (Small-scale miners)
A 5% royalty is set for Primary Producers

Cash available. Fidelity Gold Refinery prices will be changing daily to match world market prices.

Zimplats reports of a Fatality at Mupfuti Mine

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Zimplats reports of a Fatality at Mupfuti Mine

Zimbabwe’s biggest miner, Zimplats, reported that a tragic fatality occurred during the quarter that ended June 30, 2024, marking a significant setback to the company’s unwavering commitment to achieving zero harm.

By Rudairo Mapuranga

This unfortunate incident occurred at Mupfuti Mine, where a female mine worker lost her life in an underground accident involving a load-haul dump (LHD) machine.

According to Zimplats’ quarterly report for the period ended June 30, 2024, the fatal accident took place on June 22, 2024. The report details that Ms. Ruvimbo Hatihugar was fatally injured when an LHD machine, loaded with ore, struck her while she was waiting on the side of a travelway.

The company has since launched a thorough investigation to determine the precise cause of the accident.

“It is with deep regret and profound sadness that Zimplats reports a fatal accident underground at Mupfuti Mine on June 22, 2024. An LHD machine, which was tramming laden with ore, struck Ms Ruvimbo Hatihugar, who was waiting on the side of a travelway. An investigation into the accident is underway. The Zimplats Board and management team have conveyed their sincere condolences to Ms. Hatihugar’s family, friends, and colleagues. This accident is a setback on Zimplats’ journey to sustainable zero harm, to which it remains committed,” the Zimplats report reads in part.

Despite this tragic incident, Zimplats remains steadfast in its commitment to safety. The company has made significant strides in its zero-harm journey, having recorded nearly 5 million fatality-free shifts as of March 2024. This achievement reflects Zimplats’ dedication to creating a safe working environment and its continuous efforts to eliminate workplace hazards.

In addition to its safety milestones, Zimplats has also been recognized for its excellence in first aid and safety practices. One of Zimplats’ mines recently won accolades in both categories, underscoring the company’s commitment to maintaining the highest standards of safety and health. These achievements highlight Zimplats’ proactive approach to safety management and its ongoing efforts to ensure the well-being of its workforce.

Zimplats has also received several accolades for its commitment to high safety standards, reflecting its robust safety culture. One such recognition is the ISO 45001:2018 certification for Occupational Health and Safety Management Systems. This accreditation demonstrates Zimplats’ commitment to providing a safe working environment for its employees and contractors.

Moreover, Zimplats has been acknowledged for its efforts during its annual safety symposium, which brings together contractors and stakeholders to align on safety practices. The company also emphasizes a “Zero Harm” objective in all its operations, further establishing its leadership in maintaining exemplary safety standards.

Kuchera Announces Partnership with Eureka Mine

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Kuchera Announces Partnership with Eureka Mine

Kuchera, a German-based technology company specializing in optimizing haulage operational efficiency in mining, has partnered with Eureka Mine for the large-scale deployment of its results-focused optimization solution, teamUp.

By Ryan Chigoche

The optimization solution was developed to address fundamental pain points in mining that often remain unaddressed, impacting productivity and standardization. The partnership with Eureka Mine, an already productive operation, aims to enhance efficiency as the miner works toward its production targets for 2024.

“At Kuchera, we believe in the power of autonomy and empowerment. Our goal is to equip mining teams with the necessary tools and insights without overwhelming them with unnecessary data. With teamUp, the mining company can now set realistic goals based on their unique operational needs. We are excited to collaborate with Eureka Mine in transforming their operations and achieving their objectives with Kuchera’s cutting-edge technology,” the company said in a statement.

TeamUp is a groundbreaking software solution designed by Kuchera. This innovative platform harnesses advanced technology and artificial intelligence to optimize load and haul operations. Kuchera’s teamUp provides real-time insights that empower businesses to operate more efficiently and achieve exceptional results.

The platform offers a comprehensive view of production output versus targets, asset performance, and operational efficiency. With its user-friendly interface, teamUp enables users to track the location and status of assets, receive live updates, and access actionable recommendations for improving productivity, efficiency, safety, and overall asset health.

Eureka, owned by Dallaglio Investments, is one of the leading gold mines in Zimbabwe, achieving a 93% gold recovery rate. This partnership will also be a significant boost for Eureka, which is forecasted to produce 1,660 kg of gold.

The company was co-founded by Zimbabwean-born entrepreneur Kumbirai Chipadza, French technology guru Christian Hugger, and South African Mxolisi Sibiya.

Kuchera’s teamUp technology arrives at the perfect time as government experts in the sector are calling for the adoption of new technologies to optimize operations given the uncertainties surrounding mineral prices.

Technology significantly boosts efficiency in mining operations. Automation and advanced machinery reduce manual labour and streamline processes, allowing for faster extraction and processing of minerals. This increase in productivity can lead to lower operational costs and higher output.

It also allows for greater precision in operations through the use of Geographic Information Systems (GIS) and data analytics, which provide detailed insights into mineral deposits and terrain, enabling more accurate planning and extraction.

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