Mining ZimbabweLatest Mining News, Policy and Industry Updates

Sinomine-owned Bikita Minerals, the country’s largest lithium producer, has suspended the operations of its key contractors due to challenges in the lithium market and rising operational costs in Zimbabwe, Mining Zimbabwe can report.

By Rudairo Mapuranga

In a notice, the lithium miner announced the suspension of key mining contractors, with the Dense Media Separation (DMS) plant set to shut down starting this month due to lithium market challenges.

According to the notice, mining contractors Hocean, Kinsey, Anxin, and KW have been affected. Hocean, Kinsey, and KW completely halted operations as of September 30, 2024, while Anxin will scale down production, withdrawing personnel and equipment to align with reduced tonnages.

“Stripping and blasting service providers, Hocean, Kinsey, Anxin, and KW, will adjust operations. Due to lithium market factors, the DMS plant will be shut down from October 2024, and the following contractors will make adjustments based on production needs:

1. Kinsey, Hocean, and KW will cease mining operations as of 30/09/2024.
2. Anxin will reduce production and withdraw personnel and equipment to fit the lower tonnages.

The resumption of production will be announced by Bikita’s Mining Department,” the notice reads.

On Monday, Bikita Minerals warned the Parliamentary Portfolio Committee on Mines and Mining Development about the potential shutdown of the mine due to operational challenges caused by high taxes, energy costs, and logistical expenses.

During the committee’s visit, Bikita Minerals’ General Manager, Xuedong Gong, emphasized the severe impact of falling commodity prices, particularly lithium, which has plummeted by approximately 90%. Combined with rising costs, this has placed significant financial strain on the company.

“The lithium price has dropped dramatically since the end of last year—a 90% reduction. The current price is only 10% of what it was at its peak. As a result, Bikita Minerals is now losing money,” Gong said.

Sinomine acquired Bikita Minerals in 2022 for US$180 million, and in just over two and a half years, the company has injected an additional US$200 million into upgrading and expanding the mine’s infrastructure. The company increased the processing plant’s handling capacity from 700,000 tonnes per year to a staggering 4 million tonnes per year, nearly a fivefold increase.

This expansion included the construction of two complex processing plants, one of which is a flotation processing plant, and the installation of a new Dense Media Separation (DMS) plant. Before the acquisition, Bikita Minerals had only a small DMS plant with a 700,000-tonne capacity. That capacity has now been increased to nearly 2 million tonnes annually. Together with the 2 million tonnes for flotation processing, the total handling capacity now sits at almost 4 million tonnes per year.

Bikita Minerals currently focuses on mining lithium in the form of spodumene, petalite, and lepidolite. However, while the mine has substantial reserves of lepidolite, there is no viable technology at present to process the mineral efficiently.

Despite these challenges, Bikita Minerals is achieving impressive results with its lithium spodumene concentrate. The current grades, with a cutoff of 0.5% lithium oxide (Li₂O), average around 1.8%. The spodumene concentrate itself achieves grades of 5.5% to 6% Li₂O, making it highly competitive in the global market.

In 2023, the government warned it would soon ban the export of lithium concentrates to push companies to process lithium carbonates, which is a step forward in value addition. This regulatory shift aims to enhance local processing capabilities and maximize the economic benefits of lithium extraction within the country. Bikita Minerals has announced plans to invest around US$0.5 billion in a lithium sulphide plant.

The planned lithium sulphide plant is expected to not only add value to the extracted raw materials but also position Zimbabwe as a serious contender in the production of battery-grade lithium. This aligns with the government’s push for value addition and beneficiation, which aims to transform the country from being a raw material exporter to a producer of high-value products in the global lithium value chain.

Zimbabwe’s third-largest platinum group metal (PGM) producer, Unki Mine, located in Shurugwi, has reached nearly 12 years without a fatality, Mining Zimbabwe can report.

By Rudairo Mapuranga

This milestone makes Unki the first mine in Zimbabwe to achieve such an impressive safety record.

The achievement reflects Unki Mine’s unwavering commitment to Safety, Health, and Environmental (SHE) performance, underpinned by rigorous monitoring and adherence to Anglo American Platinum’s safety protocols.

Unki’s safety success is part of Anglo American Platinum’s broader strategy, which focuses on embedding a culture of safety across all its operations. This culture is driven by continuous risk assessments, advanced technology deployment, and a zero-harm mindset.

In 2023, Anglo American Platinum, Unki’s parent company, marked its second consecutive year without recording a fatality. The total recordable case frequency rate (TRCFR) reached a historic low of 1.61 per million hours worked, representing a year-on-year improvement of 31% and an 85% improvement since 2012.

Unki, together with the Mogalakwena and Mototolo mines, has maintained over 11 years of fatality-free operations, while the Amandelbult mine achieved 96 million fatality-free shifts.

Unki Mine’s safety strategy hinges on several key elements:

Proactive Hazard Identification: The mine emphasises early detection and mitigation of potential hazards through regular safety audits and continuous risk assessments. These processes ensure that potential dangers are identified and addressed before they escalate.

Training and Safety Culture: Employees undergo regular safety training programs aimed at promoting a culture of vigilance and shared responsibility for workplace safety. Workers are encouraged to report unsafe conditions and intervene to prevent unsafe acts.

Technological Innovation: Unki leverages state-of-the-art technology to enhance safety, including the use of real-time monitoring systems to track equipment performance and worker safety, reducing the risk of accidents.

Emergency Preparedness: The mine maintains well-coordinated emergency response teams that are trained to handle accidents swiftly and effectively, minimising the risk of harm in critical situations.

Contractor Safety Management: The safety of contracted workers is integrated into Unki’s overall safety framework.

Unki Mine’s safety achievements align with its broader sustainability commitments. In 2021, Unki became the first mine in Africa to be assessed against the Initiative for Responsible Mining Assurance’s (IRMA) comprehensive mining standard, achieving the IRMA 75 level of performance.

This recognition underscores Anglo American’s commitment to transparency, accountability, and the highest responsible mining standards.

In 2019, Unki Mine was the first to publicly commit to being independently audited against the IRMA Standard for Responsible Mining, a commitment verified by SCS Global Services. This landmark achievement highlights Unki’s role as a leader not only in safety but also in setting standards for responsible mining practices on the continent.

Through its commitment to safety and sustainable operations, Unki Mine continues to set a benchmark for the mining industry, proving that zero harm is not just a goal but an achievable reality.

The African diamond mining industry is poised for significant growth, with African producers aiming to consolidate their influence in the global market.

By Rudairo Mapuranga

Speaking to Mining Zimbabwe, the Minister of Mines and Mining Development, the current African Diamond Producers Association (ADPA) Chairman, Hon. Winston Chitando, said Africa has vast potential to be a major player in the global diamond industry.

“Regarding the outlook for the diamond mining industry in Africa, we recognize Africa’s massive potential in this sector. This is why African producers aim to unite and be a significant voice in the global diamond market. However, the main challenge Africa faces is price setting,” Minister Chitando said.

He noted that countries like Botswana and Angola market their diamonds differently, making it difficult to form a unified African approach.

“Each country has its own marketing strategies tailored to its specific needs. For instance, Botswana and Angola have different structures for marketing their diamonds, which makes it difficult to establish a unified African marketing strategy due to the varying circumstances of each country,” Minister Chitando explained.

Despite these challenges, Minister Chitando remains optimistic about Africa’s future in the diamond sector, stressing that collaboration is key.

He emphasized that Africa, with its vast reserves, could become a global force, but only if countries work together to streamline operations and enhance their diamond beneficiation strategies.

According to Chitando, Zimbabwe, in particular, is committed to maximizing the value of its diamonds through local cutting and polishing initiatives, ensuring that more of the wealth generated from diamonds remains in the country.

Minister Chitando further noted that establishing Africa as a significant market for diamonds remains difficult due to the dominance of markets like the United States, which currently accounts for the largest portion of global diamond sales.

“As for whether Africa could become a market for diamonds, that’s challenging because the largest market currently is the United States. Establishing a significant diamond market in Africa would require a strong marketing strategy over a considerable period, coupled with substantial buying power from local consumers,” Chitando said.

There is a need for African countries not only to produce diamonds but also to create demand within their local economies. Zimbabwe, under the leadership of Hon. Chitando, has been making strides to ensure that diamond mining benefits the country holistically. Through policies that encourage beneficiation, such as local diamond cutting and polishing, Zimbabwe seeks to increase the value of its diamond exports and retain more revenue from the industry. These efforts align with the broader vision of African diamond-producing nations, which aim to ensure that the continent’s rich resources are used for the development and economic empowerment of its people.

Africa’s diamond industry continues to face obstacles, such as fragmented marketing strategies and the challenge of developing local markets. However, with leaders like Hon. Chitando spearheading initiatives to maximize value and encourage collaboration, the future looks promising for Africa to become a more influential player in the global diamond sector. As Zimbabwe dedicates itself to creating value through local beneficiation, other African nations may follow suit, increasing the continent’s share in global diamond profits.