Mining ZimbabweLatest Mining News, Policy and Industry Updates

In an endeavour to achieve sustainable and responsible mining within the Artisanal and Small-scale Mining (ASM) sector, the Zimbabwe Miners Federation (ZMF) has created an Environmental, Social, and Governance (ESG) strategy tailor-made for the country’s ASM industry.

By Rudairo Mapuranga

Speaking at the ZMF AGM and Conference held at the Hippodrome in Braeside, Harare on Friday, which ran under the theme “Sustainable Mining: A Catalyst Towards National Development,” ZMF President Ms Henrietta Rushwaya stated that her organization has heeded the government’s call and international standards to prioritize responsible mining. This measure respects human rights, delivers safe conditions for personnel and communities, and minimizes environmental impacts.

“The government of Zimbabwe early last year, through President H.E. Emmerson Dambudzo Mnangagwa, initiated the Responsible Mining Audit to promote responsible and compliant mining activities in the country. This measure ensures that mining activities are carried out responsibly and per international and the country’s legal framework.

“There is a need for precautionary measures to ensure the safety of miners and the preservation of the environment,” Rushwaya said.

The ZMF president noted the government’s endeavour to achieve 40 tonnes of gold deliveries to the Fidelity Gold Refinery (FGR) and urged the ASM sector to prioritize responsible mining practices.

“As small-scale miners, we need to take precautionary measures at our sites, ensure that our shafts are collared and covered, and encourage proper drainage systems to capture flowing water,” she said.

Rushwaya emphasized that in adhering to responsible mining, the Zimbabwe Miners Federation (ZMF) will employ a multidisciplinary approach. This includes integrating disciplines in planning, operating, resource marketing/selling, and closing mines following international best practices.

“To achieve the responsible mining pledge, the ASM in Zimbabwe will have an environmental, social, and governance (ESG) strategy tailor-made for the country’s ASM sector,” she said.

According to Rushwaya, the ZMF believes in environmental safety. Therefore, issues such as decarbonization, water stewardship, climate action, energy efficiency, and human dignity in the mining industry will be prioritized.

“While the issue of decarbonization is rarely a result of ASM operations, we believe that the use of solar energy in ASM operations will significantly impact the decarbonization agenda.

“The management of water also poses several growing risks for the stability of mining. We believe that using less water, recycling as much as possible, and ensuring water is uncontaminated will safeguard the environment from water-related challenges caused by scarcity and contamination,” Rushwaya said.

ZMF believes that responsible mining leads to responsible sourcing. As a result, ZMF will ensure that minerals are sourced responsibly, considering the impact of mining and its extensive value chain—from the environmental impact and carbon footprint to social and human rights issues.

Responsible sourcing is already high on the European Union (EU) agenda. Its RE-SOURCING project, funded by the EU’s Horizon 2020 research and innovation program, is developing roadmaps for critical sectors and contributing to future policies.

Responsible Mining Audit in Zimbabwe

Between May and June last year, the government of Zimbabwe conducted a Responsible Mining Audit to establish if mining companies were complying with requirements relating to submitting production returns as required by law.

“Finally, we thank the government for establishing a framework that fosters responsible mining practices while guaranteeing the well-being of the communities and environments where mining activities are taking place,” Rushwaya concluded.

The country’s third-biggest platinum group metal (PGM) producer, Unki Mine‘s tax contribution decreased by approximately 15.5 per cent in 2023 compared to 2022, according to the Anglo American Platinum Tax and Contribution Report 2023.

By Rudairo Mapuranga

The platinum Mine’s total tax and economic contribution dropped from US$318 million in 2022 to US$269 million in 2023, marking a 15.5% decrease. This decline reflects the broader economic challenges the mining sector faces, particularly the impact of softening commodity prices.

Total wages and related payments increased to US$58 million in 2023 from US$49 million in 2022, marking an increase of approximately 18.4%. This rise indicates Unki Mine’s commitment to maintaining a stable workforce despite financial pressures.

Community and social investments grew by 25 percent, rising to US$5 million in 2023 from US$4 million in 2022. This increase highlights the mine’s ongoing dedication to social responsibility and local development initiatives.

Total procurement expenditures increased by 2.1%, reaching US$147 million in 2023 from US$144 million in 2022. This modest increase underscores the mine’s efforts to sustain its operational capabilities while managing costs.

Local procurement expenditures decreased dramatically from US$144 million in 2022 to US$77 million in 2023, a decrease of approximately 46.5%. This significant drop requires further clarification to understand its implications fully.

Capital expenditure surged to US$59 million in 2023 from US$15 million in 2022, representing an increase of approximately 293.3%. This substantial rise indicates significant investments in infrastructure and expansion projects aimed at enhancing long-term productivity and efficiency.

Total taxes and royalties borne and collected dropped by 50.4%, from US$121 million in 2022 to US$60 million in 2023. This decline reflects the mine’s reduced profitability and taxable income, largely due to lower commodity prices.

Corporate income tax payments fell sharply by 77.4%, decreasing from US$31 million in 2022 to US$7 million in 2023. This significant reduction underscores the financial strain experienced by the mine.

Royalties and mining taxes decreased by 59.5%, dropping from US$42 million in 2022 to US$17 million in 2023. This decline mirrors the reduced revenue generated from mining operations amid weaker commodity prices.

Other payments decreased by 47.8%, from US$23 million in 2022 to US$12 million in 2023. This reduction highlights cost-cutting measures undertaken by the mine to mitigate financial pressures.

Taxes collected slightly decreased by 3.8%, from US$26 million in 2022 to US$25 million in 2023. This marginal decline indicates that while overall contributions have decreased, the mine continues to fulfil its tax obligations.

The decline in Unki Mine’s tax contribution is primarily attributed to the softening of commodity prices in the global market. Lower prices for platinum and other PGM metals have led to reduced revenue and profitability for mining companies. Consequently, this has impacted their ability to contribute significantly to tax revenues and economic development initiatives.

The mining sector, particularly in Zimbabwe, has faced numerous challenges, including fluctuating commodity prices, operational costs, and regulatory changes. These factors have collectively influenced the financial performance of companies like Unki Mine, necessitating strategic adjustments to maintain viability and competitiveness.

Caledonia Mining Corporation Plc has reported positive gold production results for their Blanket Mine in the first half of 2024.

Q2 2024 gold production at Blanket was 20,773 ounces, a 19% increase from the 17,436 ounces produced in the second quarter of 2023. H1 2024 gold production at Blanket was 37,823 ounces, a 13% increase from the 33,472 ounces produced in the first half of 2023.

Caledonia reiterates its 2024 gold production guidance at Blanket of 74,000 to 78,000 ounces.

According to Mark Learmonth, Chief Executive Officer,

“Blanket Mine continues to provide a solid foundation for growth as we prepare to become a multi-asset gold producer. Production in the first half of 2024 was excellent and has exceeded our expectations. We remain on track to hit our annual production target of 74,000 to 78,000 ounces of gold.”

The Minister of Mines and Mining Development, Hon. Winston Chitando will be the guest of honor at the Zimbabwe Miners Federation (ZMF) AGM scheduled for 11-12 July 2024.

By Rudairo Mapuranga

The AGM, which will run under the theme “Sustainable Mining: A Catalyst Towards National Development,” will take place at Hippodrome in Braeside, Harare.

Speaking to Mining Zimbabwe, ZMF President Ms. Henrietta Rushwaya said,

“At the Zimbabwe Miners Federation (ZMF), we fully support the government’s commitment to sustainable mining practices. Our zero-tolerance policy against deforestation, habitat destruction, pollution, soil erosion, human-wildlife conflict, and loss of biodiversity reflects our dedication to preserving our environment. We believe that responsible mining is not only essential for the health of our planet but also for the prosperity of future generations. Together, we can ensure that our mining activities contribute positively to the nation’s development while safeguarding our natural heritage,” said Rushwaya.

A government official has said it is important to shift the approach to developing skills and conducting audits in the mining sector.

By Patricia Rwafa

Speaking at the Skills Audit and Development and provincial stakeholders’ consultation workshop at Monomotapa Cresta Plaza Hotel,  Ambassador R.M. Chitiga who is the Secretary for Skills Audit and Development urged stakeholders to focus on skills education in local mining companies and colleges.

She emphasized that skills development is inclusive, transcending gender, disability, and all other backgrounds in the mining sector.

“The development of skills transcends gender. When men and women work together to learn and apply these skills, they can collectively contribute to poverty reduction and national progress. Universities should play a vital role in equipping students with the skills needed for lithium battery production, a field crucial for a country’s technological advancement in the clean energy sector.”

“Strong lithium battery skills are crucial for a country’s Vision 2030 goals. This encompasses not only the production of lithium itself but also the expertise required to manufacture batteries and develop a robust value chain in this sector.”

“Universities can play a key role in training students in oil and gas exploration and production, particularly for fields like Muzarabani. This would equip graduates with the necessary skills to contribute to the country’s development in this sector. The rise of artificial granite production by countries like China highlights the need for innovation in the natural granite industry. By developing unique skills and value-added products, a country can differentiate itself in the global market.” Chitiga said

London Stock Exchange-listed mining and exploration junior, Premier African Minerals, has met its targets and will commission its conditioning tank at its flotation circuit, company CEO George Roach announced.

By Rudairo Mapuranga

A conditioning tank, though adding to the capital cost of the flotation circuit, has the potential to improve circuit control, reduce operating costs, and enhance process performance.

According to Roach, the conditioning tank, which is the final plant modification, is installed and will be commissioned this week according to the planned timelines.

“Following Premier’s announcements on 29 May 2024 and 18 June 2024, Premier is pleased to confirm that the conditioning tank is now on site and largely installed, with commissioning, as originally expected, to be completed over the course of this week,” Roach said.

“While the plant is able to run continuously and produce spodumene concentrates at up to 50 tons per day during this commissioning phase, ongoing testing clearly demonstrated that to achieve recovery and acceptable SC6 grade would require a final modification to the spodumene float circuit. Profitable plant operations require concentrate at grade. It was anticipated that the plant could run while the additional conditioning tank was being installed, but with no further advances in plant performance without this addition being possible, it is logical to stop the float circuit now and in so doing both expedite the changes to be made and preserve cash to the extent possible. The civil construction to support this conditioner is expected to be completed by 10 June 2024 and assembly of the new components to commence as soon after 20 June 2024 as possible. The target completion date is now 10 July 2024, and all efforts are targeted at shortening this period,” stated the 29 May announcement.