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Mudha Urges Miners to Buy Explosives from Registered Suppliers and Follow Safety Standards

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The Minister of State for Midlands Provincial Affairs and Devolution, Hon. Owen Mudha Ncube, has called on Artisanal and Small-scale Miners (ASM) to mine responsibly. He emphasized the importance of adhering to underground plans, purchasing explosives only from registered suppliers, and strictly following safety procedures.

Addressing members of the Zimbabwe Miners Federation (ZMF) in Gweru on Thursday, Ncube highlighted that the growth of ASM in the province has had unintended negative consequences on sustainable and responsible mining. He urged miners to adhere to safety, health, and environmental standards.

“The growth of the mining sector has its fair share of unintended outcomes that negatively affect sustainable mining. Provisions of Statutory Instruments such as SI 109 of 1990, Mining (Management and Safety) Regulations, which provide for the establishment and submission of survey maps as well as underground plans to the Ministry of Mines and Mining Development, have been violated. Miners should avoid buying explosives from unregistered suppliers and desist from using these explosives without adhering to standard safety procedures,” said Ncube.

Furthermore, Ncube stressed the importance of providing protective clothing for mining workers as both a safety and regulatory requirement. He also urged compliance with the Mining (Health and Sanitation) Regulations, ensuring the provision of clean water, ablution facilities, and health services to all employees in line with the national vision of achieving an upper middle-income society by 2030.

“In light of the above, there is no compromise in the provision of social infrastructure and services in mining areas,” Ncube stated.

The Midlands Minister also encouraged ASM to invest in infrastructure, such as road networks and modern housing for workers, to ensure that mining benefits local communities directly.

“Since the inception of the Second Republic, the Devolution and Decentralisation Policy now underpins the development of critical infrastructure like housing, roads, boreholes, dams, and power generation. I urge the mining sector to emulate the Government by providing decent housing, ablution facilities, quality roads, water reticulation, and recreational facilities for their workers and communities in their areas of operation. Corporate Social Responsibility should address local community needs and problems to make it sustainable and mutually beneficial,” Ncube stated.

Hon. Ncube applauded miners in Shurugwi, Zvishavane, and Mberengwa for their Corporate Social Responsibility (CSR) initiatives, such as drilling boreholes and establishing community projects.

“I applaud some mining entities for their CSR programs implemented in Shurugwi, Mberengwa, and Zvishavane, where they funded projects such as borehole drilling and equipping, the establishment of nutrition gardens, as well as the solar electrification of health care facilities, among others. I urge other mining entities to follow these sustainable socio-economic interventions covering areas such as food and nutrition security, drug and substance abuse mitigation, gender-based violence elimination, communicable diseases control, and provision of health and education support.”

Ncube emphasized the need for miners to fulfil their financial obligations to local authorities to ensure quality service delivery. He also directed government agencies to engage with miners to streamline the ease of doing business.

“The era of leaving infrastructure like housing, roads, boreholes, dams, and power generation is regrettable and unacceptable. The ability of local authorities to provide quality service delivery lies in efficiency in revenue collection. I, therefore, urge all miners to pay their dues to all licensing authorities while I also direct government agencies serving the mining sector to continuously engage miners to expedite ease of doing business through consultation on mining policies and administrative decisions.”

Ncube concluded by urging miners to sell their gold and minerals to approved buyers like Fidelity to help the country account for its wealth and by calling for ethical and responsible mining practices that consider environmental impacts and human rights issues.

“I implore miners to employ ethical and responsible mining as global markets now consider the long-term impact of extraction methods on the environment as well as human rights issues. I urge the Ministry of Mines and Mining Development, local authorities, and EMA to descend heavily on errant mining entities violating statutory provisions. All mining areas should be reclaimed in line with the clean air and green environment approach,” Ncube said.

Disco’s Manhize Plant Ignites Industrial Revolution

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The Dinson Iron and Steel Company (Disco) has achieved a historic milestone with the activation of its blast furnace at the Manhize steel plant near Mvuma in the Midlands Province. This landmark event signals the beginning of pig iron production, with pricing details set to be announced today (Monday), paving the way for sales to commence.

This development heralds a new era for the region’s industrial landscape, positioning Zimbabwe as a burgeoning hub in the global steel industry. Pig iron, an essential intermediary in steel manufacturing, is produced by smelting iron ore in a blast furnace, and its local production marks a significant advancement.

The Manhize Plant, nearing full commissioning later this year, is on track to become one of Africa’s largest integrated steelworks.

Built by Disco, a subsidiary of China’s Tsingshan Holdings Group Limited, the plant is poised to transform Zimbabwe’s industrial capabilities. Tsingshan also operates Dinson Colliery in Hwange and Afrochine Smelting Limited in Selous.

Project Manager Wilfred Motsi highlighted the plant’s ambitious production targets:

“Last Wednesday afternoon, the blast furnace began pig iron production successfully. The price will be announced on Monday. The plant aims to produce 600,000 tonnes of steel products annually in its first phase, eventually scaling up to five million tonnes per year in the final phase.”

Both the US$1.5 billion plant and the electricity transmission line from Sherwood in Kwekwe to Manhize have been completed, ensuring a steady supply of power to support the massive industrial operation.

The inauguration of the Disco steel plant places Zimbabwe on the map as a potential global steel manufacturing powerhouse. Zimbabwe Institute of Foundries COO Dosman Mangisi emphasized the plant’s positive impact on the local engineering, iron, and steel sectors, noting its potential to revitalize the metal casting industry and boost exports.

Mangisi pointed out that the plant’s operation comes at a critical time, alleviating the foundry industry’s raw material shortages and stabilizing scrap metal prices, which have hindered production in the engineering, iron, and steel sectors.

President Mnangagwa, who toured the plant in March, lauded the rapid progress and investor confidence in Zimbabwe’s business environment. He highlighted the strategic importance of harnessing local iron ore resources to add value and maximize benefits for the nation.

“This investment reflects the conducive business environment and policies of the Second Republic. The full potential of our iron ore resources and value chains is being realized through exceptional teamwork and determination from both the public and private sectors. This national strategic project is a testament to our commitment to infrastructure development in line with Vision 2030,” the President stated.

Gold Miners Applaud VAT Relief but Urge Clear Legislation for 2024

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Miners have welcomed the zero-rating of gold supply to Fidelity Gold Refinery (FGR), noting that it alleviates operational burdens. However, they called for clearer legislation as the new statutory instrument (SI) 105 of 2024 does not backdate the zero-rating to January 1, 2024.

By Rudairo Mapuranga

Finance, Economic Development, and Investment Promotion Minister, Professor Mthuli Ncube, eliminated the 15 percent Value Added Tax (VAT) requirement for gold miners delivering to Fidelity Gold Refiners through SI 105 of 2024.

The new regulation states: “The principal regulations are amended by the insertion of a new schedule after the First Schedule as follows: Second Schedule (Section 13) Zero Rate: Supply of Gold to Fidelity Gold Refinery (Private) Limited.”

Earlier this year, the 15 per cent VAT on gold deliveries created significant cash flow challenges for miners.

Chamber of Mines of Zimbabwe (CoMZ) CEO Isaac Kwesu emphasized that removing VAT on gold deliveries to FGR reduces financial burdens and improves cash flow, enabling miners to expand their projects.

“The zero-rating of the supply of gold to Fidelity Gold Refinery is a welcome development and provides relief to gold producers. This zero-rating will improve the cash flow situation for gold producers and allow them to utilize the cash in expanding their projects. It also reduces complexity in tax administration and eliminates transaction costs and exchange rate losses that may arise when VAT is claimed in ZiG currency. Zero-rating gold sales is also in line with best practices, restoring confidence within the gold industry,” said Kwesu.

National Vice Chairman of Miners for Economic Development, Dru Edmund Kucherera, highlighted the strategic benefits of the policy shift.

“This policy reduces operational burdens on miners and aligns with broader economic objectives, particularly enhancing foreign reserves. Gold is a crucial export for Zimbabwe, and by incentivizing more deliveries to Fidelity, the government aims to increase the flow of gold through formal channels, boosting reserve levels and strengthening the country’s balance of payments. With the new Zimbabwe Gold (ZiG) currency, substantial gold reserves are essential for its credibility. The VAT reversal supports the stability and acceptance of ZiG in the market. The timing is significant, considering high global gold prices, presenting an opportunity for Zimbabwe to maximize its foreign earnings from gold exports,” Kucherera said.

However, Kwesu noted that SI 105 of 2024 does not backdate the zero-rating to January 1, 2024, potentially requiring gold producers to pay VAT for that period. He urged the government to address this issue to remove uncertainty.

“To note, the new statutory instrument does not backdate the zero-rating to January 1, 2024, implying that for the period from January 1, 2024, to June 12, 2024, gold producers remain liable for VAT payments on gold supplied. We therefore appeal to the government to resolve and remove uncertainty around this matter,” Kwesu concluded.

Interview: Senzeni Moyo, Geotechnical Officer and Council Member of ZINIRE

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Senzeni Moyo, Can you share your personal experience of entering the mining industry as a woman? What motivated you to pursue a career in this field?

I joined the platinum mining industry as a Geological technician, which required me to work on a shift schedule. The night shift was difficult and draining at first. For 4 years, I was the only lady on my production shift before I was joined by a few more ladies. The initial period was tough, as one had to prove their equal capabilities on the job. As my first focus was on proving myself, I gained confidence in my job faster and earned respect from my male colleagues. My honours go to all my male colleagues I worked with on this shift. My motivation to join the mining industry was mainly due to my resilient, disciplined, and risk-taking character which led me to choose a career path that is not very common among women.

You’ve been Treasurer at ZINIRE and a member of various professional affiliations. How has your involvement in these organizations contributed to your professional growth and the advancement of industry standards?

My involvement in various Rock Engineering, Geology, and Mining professional institutions has assisted in my interaction with high-level professionals and obtaining technical skills from original expert sources. Rubbing shoulders with high-level professionals is a lifetime experience on my professional front. Professional institutions always provide the latest information and news about my career path. My inclusion as an executive member of ZINIRE ignited an interest in other ladies to join the Rock Engineering profession. Organizing technical visits conferences and collaborating with the Young Rock Engineers Foundation has allowed me to pass on my knowledge and skills as an executive member of ZINIRE. The creation of a platform for the continued interaction of professionals has assisted the industry in updating practices and standards within the working environment.

As a Geotechnical Officer, what have been your key achievements and responsibilities during your tenure, both in your current role and in previous positions within the company?

My responsibilities span from rock engineering designing to quality assurance and control. The focus of my responsibilities is on the management of regional ground stability in mining excavations, including the prevention of localized fall of ground incidents and accidents. The key functions include designing, implementing, and monitoring stable excavations through mining layout and support design. The major achievement in my role is in participating in producing competent rock engineering designs that ensure stable mine roof support and a safe working environment for mine workers.

Could you elaborate on your experience in database management and its importance in the context of rock engineering standards and procedures?

Database management is crucial in rock engineering as all designs and recommendations depend on the raw data provided. Collecting information as mining progresses is as important as analyzing the data consistently. Consistency in data analysis will provide early warning signs in the event of a change in the geotechnical environment or process. Standards and procedures play an important role in implementing design recommendations in underground working areas. My experience has taught me that procedures for database management are equally important, as they provide a quality control measure on the information provided from various sources.

How do you approach quality assurance and control in rock engineering, ensuring adherence to industry standards and best practices?

Quality assurance and control are vital for ensuring the accuracy of rock engineering recommendations. They act as a checkpoint for validating assumptions, conceptual models, and values of rock mass properties used in design calculations. The principle of ‘doing it right the first time’ is crucial in minimizing or eliminating potential flaws in the initial stages of a model, design, or implementation process. Incorrect data collection, including inaccurate assumptions, can lead to disastrous consequences during ore extraction. Therefore, it is critical to ensure the accuracy and validity of all inputs and implementation processes to prevent catastrophic failures.

Your role involves project implementation and control. Can you provide examples of successful projects you’ve managed, and how you ensured their successful completion?

Mining a box cut, creating portal entrances, and establishing declines to reach the reef position from the ground level was a major experience in my career. This job demands great attention to detail to ensure success, as the life of the mine depends on it. The stability of a portal entrance is crucial for the long-term operation of a mine. I gained experience in slope stability analysis and monitoring when I was given a rock engineering and supervision role in an open-pit project. The underground projects have focused on designing large crusher chambers and silos in varying geotechnical complexities. Other geotechnical projects include the review of surface settler pond structures and the rehabilitation of long-standing box cuts.

You’ve been involved in training and development for best practices. How do you identify training needs, and what strategies do you employ to ensure effective training delivery?

In order to determine the training requirements of workers in the mining industry, it is important to analyze leading indicator trends in various mining activities. The mining process involves several different activities such as drilling, excavation support, sampling, charging, blasting, and lashing. Each of these activities requires a unique approach. By monitoring and analyzing incidents and accidents related to rocks, I can identify the key areas that require upskilling. This will provide a better understanding of the areas where workers need to be trained to improve their performance and safety at work. Planned Job Observations (PJOs), workshops training reviews, and impact reviews are tools that assist in identifying the training needs.

Can you share insights into your involvement in continuous improvement initiatives, particularly in implementing systems and procedures to enhance mine support and performance?

My role in the central department includes researching and identifying the relevant ground monitoring systems, providing procedures for monitoring, and implementing the monitoring systems. The continuous improvement initiatives include the introduction of geophysical scanning equipment for slope stability monitoring and underground structural mapping processes. Geophysical scans assist in the identification of unstable ground conditions beyond the surface of an excavation. The introduction of real-time monitoring instruments such as closure sensors, stress meters, and seismic stations has improved the tracking of deviations to provide early warning signs within underground excavations.

Your educational journey includes pursuing an MSc in Mining Engineering (Rock Engineering). How do you foresee this advanced degree impacting your career trajectory and contributions to the mining industry?

The MSc in Mining Engineering program has the potential to enhance my educational and professional technical capabilities and enable me to achieve new heights in my profession and career. This program’s advanced level of knowledge will equip me with the necessary skills and expertise to become a highly proficient mining professional. With this knowledge, I aspire to become a successful and widely respected Rock Engineer in the mining industry. Additionally, as a researcher, I will utilize my skills to document technical knowledge in areas that require further exploration.

What advice would you give to young women considering a career in mining, based on your own experiences and insights?

A career in the mining industry demands an individual who is focused, principled, and steadfast. It requires someone with a strong character who can easily adapt to change. Once you become accustomed to the environment, the technical, educational, and financial benefits far outweigh the challenges you may face. Working in a male-dominated environment is possible.

Finally, could you elaborate on your interests in technical research and project management, and how these additional skills complement your role as a geotechnical officer?

The mining industry is becoming increasingly automated and digitized, and my research interests will help to improve processes within my department. As a Geotechnical Officer, it is my responsibility to ensure consistency in implementing business improvement initiatives and supervising major rock engineering projects. Staying up-to-date with the latest technological advancements and best practices is crucial for enhancing safety performance within the company. The basic principles of project management, which include planning, organizing, leading, and controlling, have assisted in the successful completion of major projects.

Besides the mining business, what are you into?

My extracurricular activities are focused on the educational front. Being a Chairlady at a primary school has helped me gain insight into the needs of children and their upbringing. My dream is to be able to assist on the educational front, especially towards the less privileged children in various societies. I wish to share my expertise and help the underprivileged reach their full potential.

Zimbabwe gold buying prices per gram 14 June 2024

Fidelity Gold Refinery (FGR) official gold buying prices/ gram. See the Zimbabwe gold buying prices per gram today 14 June 2024.

SG 90% AND ABOVE US$70.20/g
SG ABOVE 85% BUT BELOW 90% US$69.46g
SG ABOVE 80% BUT BELOW 85% US$68.72/g
SG ABOVE 75% BUT BELOW 80% US$67.97/g
SAMPLE BELOW 10g BUT ABOVE 5g US$66.86g

Fire Assay CASH $70.57/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.

Manganese Prices Surge, Outpacing Copper and Gold

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Manganese, a crucial ingredient in steelmaking, has outperformed copper, gold, and several other commodities this year after a cyclone halted exports from the world’s second-largest mine in March.

Prices of 44% grade manganese ore have nearly doubled since the beginning of the year, surpassing gains of 15% in copper, 12% in gold, and almost 30% in tin.

The cyclone struck the Groote Eylandt Mining Co. (GEMCO) operation in northern Australia, damaging critical port and haulage infrastructure and halting high-grade exports. Shipments are expected to remain suspended until 2025. South32 Ltd. owns 60% of GEMCO, while Anglo American Plc holds the remaining 40%.

Although not widely recognized, manganese is vital in steelmaking to enhance the metal’s strength and reduce brittleness. It is also used in batteries and aluminium alloys.

The surge in manganese prices was initially delayed due to stockpiles elsewhere that provided a buffer, according to Benchmark Mineral Intelligence analyst Zach Parsons. The supply shock impacted ore prices in April and took time to affect other manganese products, he said.

Supply constraints and elevated prices are expected to persist until GEMCO resumes operations, Parsons added.

The high prices have encouraged pure-play manganese miners to sell lower-grade material. ASX-listed Element 25 Ltd. informed shareholders this week that current ore production prices “present an opportunity to generate short-term cash flow.” The company may sell stockpiles of lower-grade manganese from its Butcherbird project, which is profitable in the current market.

Other companies might accelerate projects in development. “Miners who were already planning to commence operations might move their timetable up to capitalize on higher prices this year, but this represents a small number of producers, insufficient to bridge the supply gap,” Parsons said.

In Zimbabwe Manganese is found in Kwekwe, Gweru, Makonde, Mberengwa and more deposits have been reported in areas such as Dotito.

Minister Calls for Sustainable Mining to Combat Environmental Damage in Midlands

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The Minister of State for Midlands Provincial Affairs and Devolution, Hon. Owen Ncube, has raised alarms over the severe environmental damage caused by irresponsible mining activities along the Great Dyke.

Speaking to government officials, Miners, and Shurugwi residents during the Midlands Provincial clean-up campaign, Minister Ncube highlighted the pressing issue of land degradation due to mining.

“Our province has not escaped the challenges of land degradation, desertification, and drought. Irresponsible mining along the mineral-rich Great Dyke has left vast tracts of land scarred with open pits, posing constant threats to people and livestock,” he stated.

He also emphasized that illegal mining activities have destroyed productive land, severely impacting community livelihoods. Minister Ncube called for a united effort involving the government, mining companies, farmers, local communities, and environmental organizations to ensure sustainable land use.

Additionally, he pointed out that pollution from mining has led to the loss of aquatic life in major water bodies.

“My office has directed all district development coordinators to engage mining entities to immediately adopt sustainable mining practices, such as land reclamation, filling open pits, and planting trees,” he said.

Minister Ncube also urged the business community to collaborate with local authorities to maintain clean premises by installing litter containers and establishing waste management committees.

Government Makes Gold Sales to Fidelity VAT-Free

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Finance Minister Prof. Mthuli Ncube has announced new regulations that make the sale of gold to Fidelity Gold Refinery (FGR) exempt from value-added tax (VAT). These changes are outlined in Statutory Instrument 105 of 2024, under the Value Added Tax Act.

By Rudairo Mapuranga

The new rules are part of the Value Added Tax (General) (Amendment) Regulations, 2024 (No. 69), which introduce a zero-rating for gold sales to the refinery. Zero-rated goods are products that are exempt from VAT, meaning no tax is added to their sale.

According to a newly released  Statutory Instrument (SI) 105 of 2024 “Second Schedule (Section 13)

“ZERO RATE: SUPPLY OF GOLD TO FIDELITY GOLD REFINERY (PRIVATE) LIMITED

1. Supply of gold to Fidelity Gold Refinery (Private) Limited.” says the SI.

This exemption is significant because zero-rated goods, like gold in this case, play a crucial role in the production of other goods and are essential in the broader supply chain.

Typically, countries require VAT on most goods and services sold domestically. VAT is a type of consumption tax that is included in the total price of products and is charged in addition to sales tax in many transactions.

The decision to zero-rate gold sales follows a recent increase in Zimbabwe’s VAT rate from 12% to 15%, which faced opposition from many quarters.

VAT is an indirect tax applied to the consumption of goods and services. It is charged on transactions and the importation of goods, with the main legislation being the Value Added Tax Act (Chapter 23:12).

Zimbabwe gold buying prices per gram 13 June 2024

Fidelity Gold Refinery (FGR) official gold buying prices/ gram. See the Zimbabwe gold buying prices per gram today 13 June 2024.

SG 90% AND ABOVE US$70.67/g
SG ABOVE 85% BUT BELOW 90% US$69.92g
SG ABOVE 80% BUT BELOW 85% US$69.18/g
SG ABOVE 75% BUT BELOW 80% US$68.43/g
SAMPLE BELOW 10g BUT ABOVE 5g US$67.31g

Fire Assay CASH $71.05/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.

Bribe demanding prosecutor in Rushwaya’s case sentenced to 8 years

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Pardon Dziva, a public prosecutor in Zimbabwe Miners Federation (ZMF) President Henrietta Rushwaya’s gold smuggling case has been sentenced to an 8-year jail term by the Harare Magistrates Court.

Dziva and his co-accused Alex Tombe were both found guilty of demanding a US$20 000 bribe from Rushwaya, who had been convicted of gold smuggling by the Harare High Court, to help her get a lighter sentence.

Rushwaya was arrested in 2020 at the Robert Mugabe International Airport after she was caught trying to smuggle gold bars weighing 6kgs to Dubai.

She was convicted in 2023, fined US$5 000 and given a wholly suspended 18 months jail term. The gold worth US$330 000 she was caught trying to smuggle was forfeited by the State.

According to the prosecution, Helliate Rushwaya a sister to Henrietta tipped the Zimbabwe Republic Police Anti-Corruption Unit (ZACC) after being told that Dziva was demanding a US$20 000 bribe.

“It is the State’s case that on the 15th of November 2023, the first accused person demanded USD20 000 from Wellington Takavarasha to facilitate a lighter sentence for Henrietta Rushwaya who had been convicted of smuggling by a Harare High Court Judge.

“Wellington Takavarasha told Henrietta Rushwaya’s sister, Helliate Rushwaya of the first accused person’s demand. Helliate Rushwaya reported the matter to the Zimbabwe Republic Police Anti-Corruption Unit who set a trap for the accused person.”

Dziva and his accomplice were arrested after Helliate tipped ZACC and handed over trap money to them.

“Helliate Rushwaya agreed to meet the accused persons at CABS Centre whereupon the second accused person approached Helliate Rushwaya and indicated that he had been sent to collect the money by the first accused. Helliate Rushwaya refused to hand over the money and insisted on handing it over to the first accused.

“They drove to Kebbab Restaurant in Milton Park where they met the first accused. The first accused proceeded to Helliate Rushwaya’s motor vehicle where she handed over the trap money before the accused persons were both subsequently arrested”.

Dziva was sentenced to 10 years in prison, with 2 years suspended for 5 years on the condition that he does not commit a similar offense.

“The first accused person was sentenced to 10 years imprisonment of which 2 years was suspended for 5 years on condition that he does not commit a similar offence. The second accused person was sentenced to 8 years imprisonment of which 2 years was suspended for 5 years”, said the prosecution.

Source: New Zimbabwe