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ZCC Calls for Justice and Fairness in Zimbabwe’s Energy Transition

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ZCC Calls for Justice and Fairness in Zimbabwe’s Energy Transition

The Zimbabwe Council of Churches (ZCC) has called for a fair and equitable energy transition in Zimbabwe, emphasizing the need to prioritize community welfare and environmental sustainability. The church urges a balanced approach to resource extraction and community development, Mining Zimbabwe reports.

By Rudairo Mapuranga

The call was made at the Zimbabwe Alternative Mining Indaba (ZAMI) 2024, held under the theme “Energy Transition Minerals: Putting Communities First for Community Development,” which focused on ensuring that local communities benefit from the nation’s rich mineral resources.

The Indaba is co-hosted by the Zimbabwe Environmental Law Association (ZELA), the Zimbabwe Coalition on Debt and Development (ZIMCODD), and the Zimbabwe Council of Churches (ZCC).

In his keynote address, Bishop Makumbe, President of the ZCC, highlighted the importance of balancing economic growth with social justice and environmental responsibility. Drawing on biblical principles, he stressed the need for fairness and justice, stating that God’s desire for a just and righteous world should be reflected in human actions.

However, Bishop Makumbe expressed concern over the global energy transition, which he noted is often marked by inequality and injustice, particularly in developing nations like Zimbabwe.

“Countries with transition resources are still in the second industrial revolution, while those benefiting from the energy transition are far beyond the fifth industrial revolution,” he said. “One wonders if God is pleased with developed countries pushing developing nations to transition from fossil fuels to green energy when they have yet to satisfy their own energy needs.”

The ZCC President also called for greater accountability from mining companies operating in Zimbabwe. He criticized practices where companies prioritize profit over people and the environment.

“Mining companies lobby for tax exemptions, tax holidays, and tax relief while continuing to extract transition resources. One wonders how they intend for the country, and particularly the mining communities, to benefit from these resources. In earnest, there can be no just energy transition that disrespects property rights, evades taxes, or underreports profits,” he added.

Bishop Makumbe also emphasized the need for an energy transition that addresses the specific needs of marginalized communities, especially women and persons with disabilities. He urged a balance between economic development and social justice, ensuring that the benefits of resource extraction are shared equitably.

The ZCC’s stance aligns with the growing global movement for a just energy transition, which seeks to ensure that the shift to clean energy is fair and inclusive. By advocating for the rights of mining communities and promoting sustainable development, the ZCC is playing a crucial role in shaping Zimbabwe’s energy future.

GSZ Lobbying Government to Issue More Exploration Licenses as Mineral Resources Deplete

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GSZ Lobbying Government to Issue More Exploration Licenses as Mineral Resources Deplete

The Geological Society of Zimbabwe (GSZ) is urging the government to issue more exploration licenses due to the rapid depletion of the country’s mineral resources, as reported by Mining Zimbabwe.

By Ryan Chigoche

Zimbabwe’s mineral sector remains largely under-explored, hindered by a lack of modern technology necessary for thorough exploration and the creation of a comprehensive resource database. The country is believed to host deposits of around 40 different minerals, including lithium, chrome, nickel, platinum, gold, diamonds, iron ore, and coal.

Recently, Zimbabwe has witnessed a surge in mining sector investment, particularly following the adoption of the “Zimbabwe is open for business” mantra, which has led to increased resource extraction.

Significant exploration activities have been sporadic over the years and were often impeded by economic challenges and regulatory issues, despite the country’s vast potential.

With Zimbabwe lagging in the use of modern exploration technologies that are proving effective in other regions, GSZ Chair Ernest Mgandani emphasized the need for new exploration licenses to allow for the discovery of new mines, as current resources are depleting rapidly. He also highlighted the lengthy timelines required for exploration projects to transition into operational mines.

“The current mineral resources at operating medium to large-scale mines are depleting at a fast rate. If exploration licenses are not continuously issued, it will be difficult to replace old mines with new ones in the future, given the long time required for exploration projects to transition into successful operations. The Geological Society of Zimbabwe is lobbying the government to issue more exploration licenses so companies can deploy emerging exploration technologies and make mineral discoveries for a better future for all Zimbabweans,” said Mgandani.

As known resources are depleted due to overexploitation, there is a pressing need for further exploration to identify and develop untapped mineral deposits.

Enhanced exploration efforts could revitalize the mining industry, contributing to economic growth, job creation, and sustainable resource management. Investing in geological surveys and advanced mining technologies could unveil new opportunities and ensure the sector’s long-term viability.

This topic will be at the forefront of the upcoming GSZ Summer Symposium, scheduled for November 1st. The Summer Symposium is a flagship annual event where the society aims to promote the science and practice of geology and the advancement of Earth Sciences, in line with its constitutional mandate.

With a focus on geological exploration, the society intends for the Summer Symposium to share knowledge and experiences regarding various mineral resources (e.g., groundwater) and explore the best methods for locating these resources.

Gold buying prices per gram in Zimbabwe 29 October 2024

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Gold buying prices per gram in Zimbabwe 29 October 2024

These are the official gold buying prices per gram in Zimbabwe today 29 October 2024, from the official gold buyer and exporter Fidelity Gold Refinery (FGR).

SG 90% and ABOVE US$83.30/g
SG ABOVE 85% BUT BELOW 90% US$82.42g
SG ABOVE 80% BUT BELOW 85% US$81.53/g
SG ABOVE 75% BUT BELOW 80% US$80.65/g
SAMPLE BELOW 10g BUT ABOVE 5g US$79.33/g

Fire Assay CASH $83.74/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.

ASM Ventilation Challenges to be Discussed at Mine Ventilation AGM

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ASM Ventilation Challenges to be Discussed at Mine Ventilation AGM

The upcoming Mine Ventilation Society of Zimbabwe (MVSZ) Annual General Meeting (AGM) and Symposium 2024 will address the critical issue of ventilation challenges, particularly in the Artisanal and Small-scale Mining (ASM) sector.

By Rudairo Mapuranga

The event, themed “Ventilation Engineering Solutions for Solid Safety Performance,” will take place from October 31 to November 1, 2024.

Speaking to Mining Zimbabwe, MVSZ Chairman Joshua Tigere identified gassing as the greatest ventilation challenge facing Zimbabwe’s mining industry.

He stated that this issue has been particularly problematic for artisanal and small-scale miners, who often lack knowledge about the sources, properties, and effects of dangerous gases encountered during mining. Without a proper understanding of these gases, miners are unable to manage the risks effectively, leaving them vulnerable to fatal incidents.

Tigere emphasized that the lack of knowledge about gases and their occurrence in mining environments poses a serious safety hazard. Many small-scale miners are unaware of the dangers lurking underground, which increases the likelihood of fatal accidents.

“The greatest challenge facing ventilation engineering in Zimbabwe is the loss of life due to gassing in the small-scale mining sector,” he stated.

To address this issue, Tigere announced that the MVSZ, in collaboration with the Ministry of Mines and Mineral Development, will conduct workshops across the country aimed at raising awareness among small-scale miners. These workshops will equip miners with the knowledge necessary to identify, manage, and mitigate the risks associated with gas exposure during mining operations. This initiative forms a crucial part of the MVSZ’s broader strategy to improve safety and reduce fatalities in the mining sector.

Additionally, Tigere cited the lack of monitoring equipment in small-scale mines as another major challenge. Many mines are unable to acquire the necessary tools to test for airflow and gas concentrations after blasting. This results in miners re-entering sites without verifying environmental safety, significantly increasing the risk of accidents. The symposium will offer solutions and insights into affordable ventilation monitoring technologies that can help these smaller operations improve safety.

The upcoming MVSZ AGM and Symposium will play a pivotal role in addressing these critical challenges. Through presentations, exhibitions, and interactive discussions, the event will provide a platform for mining professionals to share innovations in ventilation engineering and safety practices that could transform Zimbabwe’s mining industry for the better.

The Future of ZiG: RBZ Quells Concerns Over Legal Status

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The Future of ZiG: RBZ Quells Concerns Over Legal Status

The Reserve Bank of Zimbabwe (RBZ) has issued a public notice to clarify the legal status of the Zimbabwe Gold (ZiG) currency, addressing concerns raised by prominent lawyer Thabani Mpofu, Mining Zimbabwe reports.

By Rudairo Mapuranga

Mpofu had claimed that the ZiG currency had ceased to be legal tender following the expiration of the statutory instrument that introduced it. However, the RBZ maintains that the ZiG remains a valid form of currency.

In a statement, the RBZ emphasized that the lapse of the Presidential Powers (Temporary Measures) that established the currency does not create a legal gap.

The central bank asserts that currency reform measures, once implemented, do not automatically expire and require a specific legal instrument to be revoked.

According to the RBZ, the recent Finance Act, which was gazetted into law, aims to consolidate the legal framework for the ZiG currency.

The RBZ clarified that the Act does not merely validate the previous statutory instrument but instead reinforces the continued validity of the ZiG.

The central bank affirmed its commitment to strengthening the use and stability of the ZiG currency, reassuring the public that it remains legal tender in Zimbabwe.

Mining Zimbabwe advises the public to stay updated on official announcements from the Reserve Bank of Zimbabwe and other relevant authorities, as the situation continues to evolve.

Zimbabwe to Participate in Global Mine Rescue Competitions

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Zimbabwe to Participate in Global Mine Rescue Competitions

Zimbabwe is set to participate in the upcoming International Mine Rescue (IMR) Global Competitions, hosted by Zambia in 2026, Mining Zimbabwe reports.

By Ryan Chigoche

The announcement was made by the Chamber of Mines of Zimbabwe (CoMZ) at the recently concluded local Mine Rescue competitions, which were dominated by the host, Zimplats.

The International Mine Rescue (IMR) competition will feature over 20 participating countries, including the United States, Russia, and Colombia. These competitions are designed to enhance the skills and knowledge of team members who would respond to a mine emergency. Contestants are required to solve a hypothetical problem under timed conditions, observed by judges according to complex rules.

David Matyanga, Mining Affairs Manager at the Chamber of Mines, emphasized the importance of the competition for the country’s representatives and urged industry stakeholders to support the teams attending this global event.

“It is our wish as the Chamber of Mines to participate in the games so that we can benchmark ourselves against global industry players. The Mine Rescue Association of Zimbabwe has already taken that on board, and the winners of this year’s local competition will be eligible to participate next year. We need the support of the Ministry, teams, and sponsors to ensure that the load is shared and that it’s lighter for the participating teams,” Matyanga said.

This year’s local competition, which concluded on Friday, saw Zimplats emerge as the winner across all categories.

Mine rescue competitions date back to the early 20th century, emerging from the growing awareness of mining hazards. Organized competitions began as a response to the need for enhanced safety measures in mining operations. In Zimbabwe, the Mine Rescue Association was established in the 1970s to coordinate rescue efforts and training nationwide. The association conducts regular training and drills to prepare teams for emergencies, equipping them with the necessary skills and knowledge.

Typically, competitions involve simulated rescue scenarios where teams demonstrate their skills in a controlled environment. Participants are evaluated on various criteria, including problem-solving abilities, adherence to safety protocols, and overall performance during rescue operations. As the mining industry evolves, so do the challenges it faces. Modern mine rescue competitions reflect these changes, incorporating new technologies and techniques to address contemporary mining hazards.

Mine rescue competitions play a crucial role in enhancing safety and preparedness within the mining industry. These events sharpen rescue teams’ skills, allowing participants to practice essential techniques and learn effective responses to emergencies. This training is vital, as it can save lives during actual incidents. Additionally, competitions provide a platform for teams to benchmark their skills against national and international standards, raising the overall level of competency in the industry.

An emphasis on teamwork and coordination is another significant aspect of these competitions. Successful rescue operations rely heavily on effective collaboration and communication among team members.

The Mine Rescue Association of Zimbabwe has been operating since around 1973 and is tasked with coordinating mine rescue efforts across the country. Its activities are managed by the Mine Rescue Working Party, consisting of a chairman appointed by the Association of Mine Managers of Zimbabwe (AMMZ), zone coordinators, nationally trained personnel, a national coordinator, a representative from the Chamber of Mines, and a committee member.

The association is organized into four distinct zones. The North Zone includes Zimplats Mining, Freda Rebecca and Redwing Mine. The South Zone includes Unki, Renco Mine and Mimosa Mine. Finally, the West Zone consists of Blanket Mine, Hwange Colliery, and How Mine. This structured approach ensures effective coordination and response across various mining operations in the country.

Fresh air teams include Zimplats SMC, Shamva, Blanket Mine and Jena Mine.

From Riverbanks to Refineries to the Big Apple: The Golden Journey of Blessing Hungwe Nharara

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From Riverbanks to Refineries to the Big Apple: The Golden Journey of Blessing Hungwe Nharara

Blessing Hungwe Nharara’s eyes sparkle as she recalls childhood trips to the river with her grandmother—not for a picnic, but to mine for gold! She remembers watching her grandmother expertly sift through the water with a winnowing dish, the glimmer of gold a promise of adventure.

“That’s when I fell in love with gold mining,” she recalls.

Fast forward to today, and Blessing is no longer a curious observer. Now, she is a powerhouse in the industry, a small-scale miner, and this week, she addressed a United Nations General Assembly event on Accelerating Women’s Entrepreneurship Development in Africa.

“My contribution to this big conversation was rooted in my experience as an artisanal and small-scale miner, and in my leadership role assisting women miners to organize and ensure policymakers cannot ignore their concerns,” she says.

“We are where we are because of the support from the government and the large-scale miners who have given us some of their idle claims for us small-scale miners to work on.”

Her presentation in New York focused on five key pillars meant to support women miners in Africa.

“Ownership and control of natural resources, particularly land and minerals. This is an area dominated by corporate and patriarchal power,” she says.

“There is, however, a silver lining in Zimbabwe, as large-scale mines are tributing mining claims to promote artisanal and small-scale mining.”

Human Capital

She is supported by her son Engineer Panashe Muguza, a recently qualified Mining Engineer. She notes that his skills could help address the double challenge of formalizing ASM (Artisanal and Small-Scale Mining) through technical expertise and tackling the high unemployment rate among skilled youth. His presence has also boosted productivity at her mine.

“If it’s not about networking, then it’s not working. Women need spaces to network, learn, and share experiences about entrepreneurship.”

“Mining doesn’t scare me,” she says with a grin.

“When I’m on the job, it’s like a second home. This mindset should inspire solutions to the challenges of formalizing ASM and high youth unemployment among skilled workers.”

She cited the Delve Exchange platform—”by miners, for miners”—as an example of bridging this gap.

“Alone, one can go fast, but together, we can go far,” she says, borrowing from the wisdom of African elders.

Her passion wasn’t born solely by the riverbank. Visits to her gold-mining uncles in Kwekwe during high school fueled the fire. “Some classmates even lent me money because I always had a bit extra,” she chuckles. Blessing’s hustle started young!

But her journey extends beyond personal success. Now a champion for women in mining, she’s a patron of the Zimbabwe Association of Women in Mining Associations and a former Secretary General of SADC Women in Mining. She is the Regional Knowledge Exchange Coordinator for Anglophone Africa for the World Bank’s Delve Exchange program.

Blessing’s story is more than just about gold. It’s about a young girl captivated by the glint of possibility, a woman who carved her path in a male-dominated industry, and a leader empowering others to do the same.

Financial Control

She says although some small-scale miners do strike it rich, the lack of financial control has been detrimental to the sector.

“It’s common for gold miners to hit a jackpot. However, many times, the funds are squandered on luxury cars and drinks,” she says.

“The money should be reinvested to enhance mechanization and diversification beyond mining. Financial literacy is essential.”

Technology

She adds that access to technology is crucial in supporting women. “Through the Zimbabwe Association of Women in Mining Associations (ZAWIMA), we piloted the rehabilitation and repurposing of land into an avocado orchard,” she says.

“Thanks to Global Green Fund’s support, and a big thank you to the Ministry of Women’s Affairs and UNDP for making it possible for me to attend this wonderful event.”

Blow for Miners as Tax Holidays May Soon Be Over

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Blow for Miners as Tax Holidays May Soon Be Over

The mining industry may suffer a major setback as the Treasury considers removing tax incentives for mining companies, asserting that current measures are overly generous given the sector’s profitability.

By Ryan Chigoche

This development comes at a time when mining companies are pessimistic about profitability in 2025, citing an anticipated high-cost structure and weak commodity price outlook. This has led miners to call for a review of the tax environment. Earlier in the year, the Chamber of Mines of Zimbabwe sought temporary tax relief and lower electricity tariffs due to declining global prices impacting the sector, particularly for lithium and Platinum Group Metals (PGM) producers.

The government’s decision follows pressure from civil society organizations, which have long argued that tax incentives primarily benefit mining companies at the expense of the communities where they extract resources. Over the years, the government has offered these incentives to attract foreign investment in the mining sector. However, in a recent interview at the Employers’ Confederation of Zimbabwe annual congress, Deputy Minister of Finance David Mnangagwa confirmed that the government is reassessing these incentives, noting that current tax holidays are overly generous as mining companies are excessively profitable.

According to the recent Chamber of Mines Zimbabwe State of Mining Industry Survey Report, miners have urged the government to review the tax regime, expressing concern over high royalties for platinum and diamonds, as well as export taxes on PGMs and lithium concentrates, which they claim increase production costs and impact project viability. Over 90% of industry executives reported that miners are currently overtaxed, with the effective tax rate for the industry at 69%, the highest in the region. The survey indicated that this level of taxation is unsustainable, diverting capital intended for reinvestment in new projects.

The report also anticipated this policy shift, as mining executives expressed concerns that the fiscal framework will worsen in 2025, predicting further profit declines.

“Ninety percent of mining executives indicated that the fiscal framework for the industry is suboptimal, citing the multiplicity of taxes, high royalties, beneficiation taxes, retrospective special capital gains tax, and elevated mining fees and levies. They also expect the fiscal framework to worsen in 2025, highlighting increased stakeholder pressure on the perceived contribution of mining to the economy,” the report noted.

With Zimbabwe’s potential as a leading lithium producer and the second-largest platinum producer after South Africa, Mnangagwa stated that despite a recent downturn in platinum and lithium prices, trends show mining companies do not require tax holidays to invest. He acknowledged the need for better revenue distribution from the extractive industry, emphasizing the importance of preparing for economic shifts as platinum resources gradually deplete and the need for foresight in budgeting and developing subsidiary industries.

In Zimbabwe, many mining companies benefit from these substantial tax incentives, which can significantly enhance their profitability. However, this often leaves local communities with little to show for the resources extracted from their lands. While miners enjoy lower taxes, the funds available for public services and infrastructure in these areas are reduced, leading to underinvestment in essential services like healthcare and education. Consequently, there is a growing call for a fairer distribution of mining revenues to ensure that communities benefit from the resources extracted from their regions.

Despite the mining industry’s crucial role in the economy, the sector is projected to see mineral revenue rise by about 2% in 2024 and by 10% to reach $6 billion by 2025, driven by increased output and recovering commodity prices.

Gold buying prices per gram in Zimbabwe 28 October 2024

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Gold buying prices per gram in Zimbabwe 28 October 2024

These are the official gold buying prices per gram in Zimbabwe today 28 October 2024, from the official gold buyer and exporter Fidelity Gold Refinery (FGR).

SG 90% and ABOVE US$82.98/g
SG ABOVE 85% BUT BELOW 90% US$82.10g
SG ABOVE 80% BUT BELOW 85% US$81.23/g
SG ABOVE 75% BUT BELOW 80% US$80.35/g
SAMPLE BELOW 10g BUT ABOVE 5g US$79.03/g

Fire Assay CASH $83.42/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.

Fuel Levy, Power Cuts, and Soaring Costs Push Zimbabwe’s Mining Sector to the Brink

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Fuel Levy, Power Cuts, and Soaring Costs Push Zimbabwe’s Mining Sector to the Brink

Zimbabwe’s mining sector is facing a severe crisis as a new fuel levy of US$0.005 per litre worsens existing challenges, including crippling power cuts and skyrocketing operational costs. Already burdened by an effective tax rate of 69%, miners are struggling to remain viable, with sectors like lithium and platinum group metals (PGMs) particularly hard-hit, Mining Zimbabwe can report.

By Rudairo Mapuranga

The lithium sector has seen companies threatening to shut down operations, while the PGM industry has resorted to cutting jobs and reducing spending. Adding to the woes, the predicted softening of commodity prices threatens to make these industries increasingly unviable.

The fuel levy, introduced to raise additional revenue for government projects, is expected to push mining companies to the edge of collapse, with industry leaders warning of potential shutdowns that could further stifle economic growth.

The Chamber of Mines of Zimbabwe (CoMZ), in a report, emphasized that the levy comes at a time when the sector is already grappling with a complex array of costs, regulatory burdens, and frequent power outages, all of which are severely undermining operations.

Zimbabwe’s miners are already dealing with an effective tax rate of 69% in 2024, a level far exceeding regional competitors such as Zambia (60%), the Democratic Republic of Congo (61%), Ghana (56%), and South Africa (44%). This tax burden is eroding the competitiveness of local mining companies, with the fuel levy threatening to push some operations past the breaking point.

Additionally, the mining sector faces a labyrinth of taxes, fees, and levies, including a 20% special capital gains tax, environmental impact assessment levies of 0.8% to 1.2%, a 2% environmental rehabilitation levy, and royalties of up to 10% depending on the mineral.

Miners must also contend with rising electricity and labour costs while surrendering 25% of their export proceeds to the government, effectively adding a 12% tax on gross revenue.

On top of this, miners are subjected to 157 separate fees and charges imposed by government ministries, agencies, and Rural District Councils, ranging from US$4,000 to US$15,000. These high and often unaffordable fees severely impact the viability of mining projects.

The CoMZ report notes that procurement, contractors, government taxes, employment costs, and power expenses consumed a staggering 91% of total mining revenues in 2024, leaving little room for reinvestment in capital projects.

The situation is dire for key sectors like lithium and PGMs. Lithium companies have already signaled potential shutdowns due to untenable costs, while the PGM industry has been forced to cut jobs and reduce operational spending. Compounding these challenges is the forecast of continued softening in commodity prices, which could make mining in these sectors increasingly unsustainable.

CoMZ Chief Executive Isaac Kwesu highlighted that smaller mining operations, consuming around 18,000 litres of fuel per month, are already paying US$27,000 monthly before the new tax. These costs are set to rise with the introduction of the fuel levy, pushing small and large mining operations further into financial strain. Larger mining companies have reported losses of up to US$500 million in potential revenue this year alone due to frequent operational downtime caused by power cuts and rising costs.

“The mining industry is heavily reliant on diesel and petrol, particularly for electricity generation during power outages. While the fuel levy may not seem like a significant increase for smaller operations when applied across the industry, it will add substantial costs, further straining the sector,” Kwesu said.

This is not the first time Zimbabwe’s mining sector has faced the threat of widespread closures. In the early 2000s, gold mines were shuttered due to hyperinflation, price distortions, and foreign currency shortages. Now, history seems to be repeating itself, with the added pressure of softening commodity prices.

The new fuel levy is also expected to increase inflationary pressures across the economy. The Direct Fuel Importers (DFI) industry body, representing petroleum importers, has confirmed that the additional costs will be passed on to consumers. Prior to the levy, a litre of petrol and diesel was already priced at US$1.49 and US$1.50, respectively.

DFI Secretary-General Bart Mukucha noted that while the levy may support government projects, it is the mining sector and the broader economy that will bear the brunt of rising fuel prices.

As miners contend with ever-increasing costs, there is growing concern that the industry’s future hangs in the balance. Industry leaders are urging the government to reconsider its tax and regulatory framework before the country’s key economic driver becomes unsustainable.

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