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Q2 Mining Confidence Index Down to 12.9: ZIMSTAT

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The Zimbabwe Statistical Agency (Zimstat) Business Tendency Survey for the second quarter of 2024 reveals that the mining confidence index has declined to 12.9 from 15.9 in the first quarter. Miners cited cash flow difficulties among other significant challenges affecting the sector.

By Ryan Chigoche

The survey aims to produce indicators that monitor the current business situation and short-term developments in the manufacturing and mining sectors. The index values range from 0 to 100, with readings above 50 indicating sector expansion and those below 50 signifying contraction.

Insights on business performance during the second quarter were gathered from 80 mining companies, achieving a response rate of 62.5%. According to Zimstat,

“The Mining Confidence Index decreased to 12.9 in the second quarter of 2024, from 15.9 recorded in the first quarter of 2024. The mining sector faced the following three major challenges: cash flow difficulties, a shortage of electricity, and uncertainty regarding the economic environment.”

Zimbabwe’s mining sector faces several obstacles hindering its growth and development. A significant issue is the unstable policy environment. Frequent changes in mining regulations create uncertainty, discouraging investment and complicating long-term planning. Ongoing amendments to key laws, such as the Mines and Minerals Act and the Economic Empowerment Bill, further exacerbate this instability.

Another major challenge is the exchange rate disparity. Mining companies are suffering substantial losses due to the gap between the official exchange rate for export proceeds and the parallel market rate for input costs, effectively acting as a tax on their gross proceeds.

Power supply issues also plague the sector. Frequent and prolonged outages disrupt mining operations, resulting in increased costs and reduced productivity, particularly for energy-intensive processes.

These interconnected challenges contribute to a difficult operating environment for mining companies in Zimbabwe, limiting their potential to drive economic growth and development. Addressing these issues requires a comprehensive and coordinated approach involving both government and industry stakeholders.

In terms of capacity utilization, the agency reports that the mining sector stood at 57.5% in the second quarter, up from 50.3% in the first quarter of 2024. Notably, 20% of respondents expressed more optimism about the general business climate, with 45% expecting an increase in production levels during the third quarter.

Regarding total order books for the second quarter, approximately 64% of respondents felt that conditions were normal for the season, although the sector recorded negative net balances in this area during the same period. Additionally, 17.9% of mining sector respondents noted that supplier delivery times in the second quarter of 2024 were faster than in the first quarter.

Disco to Begin Steel Bar Production in 2025 as Manhize Plant Ramps Up

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Dinson Iron and Steel Company (Disco)’s US$1.5 billion steel plant in Manhize is set to begin manufacturing steel bars by April 2025, marking a significant development that will expand the plant’s product range and boost Zimbabwe’s industrial output, Mining Zimbabwe reports.

By Rudairo Mapuranga

The company, currently operating at 60% of its capacity, aims to increase production to 75% by the second quarter of next year. The introduction of steel bars is a key driver of that growth.

The plant, located between Chivhu and Mvuma on the border of Midlands and Mashonaland East provinces, began production in July this year and is already producing pig iron and steel billets.

According to Dinson’s projects director, Mr Wilfred Motsi, the company’s move to start manufacturing steel bars marks a new operational phase, significantly boosting the plant’s capacity utilization and job creation.

“Currently, we are operating at 60% capacity utilization, and we expect to reach 75% in the second quarter of next year when we introduce steel bars to our product range.

“Employment figures, as a result of the steel bars we will be producing, will rise to 2,700,” Motsi said.

The introduction of steel bars is expected to create 500 additional jobs in the second quarter of 2025. The Manhize plant, which currently employs 2,200 workers, is projected to employ 10,000 people directly by the time it reaches its final production phase, making it the largest steel plant in Africa.

Dinson is one of three local subsidiaries of China’s Tsingshan Holdings, a global giant in the steel industry. The other two subsidiaries operating in Zimbabwe are Afrochine Smelting in Selous, Mashonaland West Province, and Dinson Colliery in Hwange, Matabeleland North Province. Together, these operations form part of a broader strategy to revitalize Zimbabwe’s steel industry and reduce the country’s reliance on imports.

When fully operational, the Manhize steel plant is expected to produce 600,000 tonnes of products annually in its first phase, with production rising to 1.2 million tonnes in the second phase. By the third phase, output will increase to 3.2 million tonnes, ultimately reaching five million tonnes at full capacity. These products will serve both local and international markets, with exports to regions such as Asia and Europe expected to generate significant foreign currency earnings for Zimbabwe.

“So far, we haven’t started exporting, but we are producing for the local market,” Mr Motsi explained. “As for the tonnage we are producing, I don’t have the figures offhand, but we have started selling, and our sales figures so far have been promising.”

To support the plant’s growing energy needs, Dinson has launched a 50-megawatt power plant, with plans to increase its capacity to 500MW as the project scales up. The 50MW plant will help the company achieve energy self-sufficiency, reducing its dependence on the national grid. The current plant consumes 28MW of power, with the excess capacity set to be synchronized with the national grid, further contributing to the country’s energy security.

The Manhize steel project is seen as a major step in Zimbabwe’s efforts to industrialize and restore its steel production capabilities following the closure of the Redcliff-based Zimbabwe Iron and Steel Company (Zisco) in 2008. Once one of the largest integrated steel plants in Africa, Zisco’s collapse left Zimbabwe dependent on steel imports from countries such as China and India. Dinson’s project, forecasted to generate revenues of up to US$4.5 billion annually in its final phase, is expected to transform the country’s steel industry and reduce the need for imports.

As Dinson continues to expand its operations, the company is poised to become a key player in the global steel market, positioning Zimbabwe as a hub for steel production in Africa.

Grid Africa Partners with Huawei for 72MW Solar Project to Boost Mining Efficiency

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Grid Africa, a leading renewable energy provider, has partnered with Huawei, a global technology powerhouse, to implement a 72-megawatt (MW) solar power infrastructure in Zimbabwe. The project, aimed at addressing the country’s chronic energy shortages, is set to significantly enhance the efficiency of the mining sector, Mining Zimbabwe reports.

By Rudairo Mapuranga

Zimbabwe has faced frequent power outages in recent years, negatively impacting the economy, particularly the mining industry.

The 72MW solar project will provide a critical alternative energy source, reducing the nation’s reliance on the strained national grid and ensuring a more stable and reliable power supply.

The partnership between Grid Africa and Huawei merges their expertise in renewable energy and technology. Grid Africa will manage the design, construction, and operation of the solar power plants, while Huawei will provide its advanced solar inverter technology and energy management solutions.

The 72MW solar project is expected to bring substantial benefits to Zimbabwe, including:

  • Alleviating power shortages: By supplying a significant amount of clean energy, the project will help ease the country’s chronic power shortages and improve electricity reliability.
  • Boosting mining efficiency: As the mining sector is a major electricity consumer, the solar project will provide a more stable and cost-effective power source, enabling mining companies to improve operational efficiency and productivity.
  • Creating jobs: The construction and operation of the solar power plants will create numerous direct and indirect jobs, contributing to Zimbabwe’s economic growth.
  • Reducing greenhouse gas emissions: The project will lower Zimbabwe’s carbon footprint by replacing fossil fuel-generated electricity with clean solar power.

Norman Moyo, CEO of Grid Africa, highlighted the partnership’s potential to make Zimbabwe energy-sufficient while providing clean, affordable power.

“This partnership with Huawei is a significant step toward our mission of delivering sustainable and affordable energy solutions to Zimbabwe. We are confident that the 72MW solar project will have a transformative impact on the country’s energy landscape and support the growth of its mining industry,” Moyo said.

Mr. Xia Hesheng, Huawei Digital Power Sub-Saharan Region President, echoed Moyo’s optimism, emphasizing Huawei’s commitment to sustainable development and technological innovation.

“We are excited to collaborate with Grid Africa on this crucial project. Our advanced solar inverter technology and energy management solutions will ensure the efficient and reliable operation of the solar power plants,” he said.

The 72MW solar project highlights the growing importance of renewable energy in Zimbabwe and the potential for international partnerships to drive sustainable development. As the project progresses, it is expected to serve as a model for other renewable energy initiatives across the region.

Mine Ventilation AGM and Conference Kicks Off Next Week!

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The Mine Ventilation Society of Zimbabwe (MVSZ) will hold its Annual General Meeting (AGM) and Conference next week in Masvingo, Mining Zimbabwe can report.

By Rudairo Mapuranga

Running under the theme “Ventilation Engineering Solutions for Solid Safety Performance,” the event will take place from October 31 to November 1, 2024, at the Great Zimbabwe Hotel.

It will bring together mining professionals to discuss critical ventilation challenges, particularly concerning safety, as Zimbabwe’s mining sector experiences rapid growth.

The event kicks off on October 30 with the arrival of delegates, followed by the President’s Cocktail, an exclusive networking session for MVSZ members.

The formal conference will begin on October 31 with registration, followed by a series of presentations and exhibitions over the two days.

Presentations will focus on key issues such as innovations in ventilation technology, health and safety standards, and engineering solutions that help mitigate risks in mining environments. Participants, including mining engineers, ventilation specialists, and industry stakeholders, will explore ways to enhance safety and operational efficiency through advanced ventilation techniques.

A highlight of the event is the Annual General Meeting (AGM), which will take place on November 1. This members-only session will discuss important decisions regarding the society’s future. To conclude, a Networking and Sunset Cruise will provide a relaxed atmosphere for attendees to engage further and strengthen industry relationships.

The conference fees for members are set at US$150, while suppliers can participate for US$250, with up to three delegates allowed. Accommodation is not included, and attendees are encouraged to register by October 31.

This gathering promises to be a vital platform for addressing ventilation challenges and advancing safety in Zimbabwe’s mining sector.

Caledonia Targets US$309 Million Bilboes Project to Chart Growth by 2025

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Victoria Falls Stock Exchange-listed gold miner Caledonia Mining Corporation is advancing its US$309 million Bilboes gold project in Matabeleland, aiming to finalize a comprehensive feasibility study by early 2025, Mining Zimbabwe can report.

By Rudairo Mapuranga

The Bilboes project marks a major step in Caledonia’s growth strategy, which will see the company transform from a single-asset operator to a multi-asset gold producer.

Caledonia CEO Mark Learmonth, in an interview during the Gold Forum Americas held in Colorado Springs, emphasized the significance of the Bilboes project, which the company acquired in early 2023 after a seven-year pursuit.

The project has the potential to yield up to 1.5 million ounces of gold over a ten-year-period, with peak production expected to reach 150,000 ounces annually.

“Bilboes will be the catalyst for our evolution. We aim to maximize net present value per share and drive our share price higher,” said Learmonth.

According to Learmonth, funding for the project is expected to come primarily from development finance institutions, with a portion supplemented by equity.

He highlighted Caledonia’s ability to raise capital in Zimbabwe, noting that the company has secured more funding locally than in any other market.

“We are confident in our ability to finance this project effectively, especially given the strong local support,” he said.

Addressing concerns about operating in Zimbabwe, Learmonth downplayed worries over the business environment, citing the country’s educated and motivated workforce as a key asset.

“We have found the unions to be cooperative, not militant,” he noted, adding that operational challenges, while present, are manageable.

With the Bilboes project set to redefine Caledonia’s production capabilities, the company is positioning itself for substantial growth in the Zimbabwean mining sector.

Miners Support Shift from Indigenization Act to Economic Empowerment Bill

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Miners in Zimbabwe are showing significant support for a transformative change in economic policy, as highlighted in the latest State of the Mine Industry Survey report sponsored by the Chamber of Mines Zimbabwe (CoMZ).

By Ryan Chigoche

An impressive 99% of mining executives commend the government’s intention to replace the existing Indigenization Act with the proposed Economic Empowerment Bill. This change reflects a significant shift in the industry, with executives advocating for a framework that prioritizes local participation and sustainable economic benefits for communities.

The survey shows that industry leaders are actively engaging with the government, having received the gazetted Bill and submitted proposals through the Chamber of Mines. This proactive involvement underscores a collective commitment to align with government initiatives focused on economic empowerment, moving away from the equity-based model that has previously dominated the sector.

The proposed Economic Empowerment Bill offers several advantages over the Indigenization Act. By emphasizing local content, the new framework encourages the participation of local suppliers and businesses, creating valuable economic opportunities within communities. Unlike the equity model, which often ties dividends to company performance and results in limited benefits during downturns, the new framework aims to provide immediate and sustainable advantages for local stakeholders. Additionally, many mining companies are already implementing initiatives to support local enterprise development, demonstrating a strong commitment to empowerment and collaboration.

To ensure the successful implementation of the Economic Empowerment Bill, the report recommends that the government clarify its policy on exempting mining companies from the equity model, providing clear guidelines to encourage further investment. Furthermore, expediting the finalization of the empowerment framework is crucial for attracting both domestic and foreign investments, ultimately stimulating growth in the mining sector.

However, there are concerns regarding the broader legislative landscape. Mining executives are generally pessimistic about the prospects for an improved policy environment in 2025. A significant 80% of respondents expect the legislative policy environment to either worsen or remain unpredictable, similar to conditions in 2024. Key concerns include frequent policy reversals, an unstable macroeconomic environment, and uncertainty surrounding the finalization of amendments to the Mines and Minerals Act, the Economic Empowerment Bill, and the Local Content Implementation Framework.

Executives have recommended that the government expedite the finalization of amendments to these key legislative frameworks. As the mining industry navigates these challenges, the transition from the Indigenization Act to the Economic Empowerment Bill remains a critical opportunity for economic transformation, with the potential to foster a more equitable and sustainable environment for all stakeholders involved in Zimbabwe’s mining sector.

Defold Mine Champions Breast Cancer Awareness in Guruve

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Mutapa Investment Fund-owned Defold Mine, in collaboration with San HE Mining, has taken a pivotal step in promoting breast cancer awareness and early detection within the Guruve community by hosting a breast cancer awareness event on Friday, Mining Zimbabwe can report.

By Rudairo Mapuranga

Defold Mine will lead this impactful initiative at Nyamuswe Secondary School under the theme “No One Should Face Breast Cancer Alone.” As part of its corporate social responsibility (CSR) efforts, the mine has partnered with San HE Mining to deliver this critical campaign. The event aims to educate women and girls about the symptoms and risk factors of breast cancer, while also offering free screenings to encourage early detection.

The awareness campaign will feature a variety of activities, including:

  • Educational Talks: Breast health experts will provide informative presentations on the causes, symptoms, and preventive measures for breast cancer. They will also highlight the importance of early detection and timely treatment.
  • Free Screenings: Medical professionals will conduct free breast examinations for women and girls attending the event, helping to identify potential early signs of breast cancer.
  • Awareness Activities: The event will also include interactive demonstrations and activities aimed at raising awareness and encouraging active community participation.

Defold Mine’s dedication to breast cancer awareness reflects its commitment to ensuring that no one faces this life-threatening illness alone. Through education, screenings, and support, the company aims to empower the women and girls of Guruve to prioritize their health and seek early medical intervention when needed.

Defold Mine’s Acting General Manager, Wilfred Tanyanyiwa, emphasized the importance of such initiatives in improving the well-being of the community, particularly for women who are often the most vulnerable to health challenges.

He expressed the mine’s commitment to not only promoting economic development but also addressing critical health issues affecting the lives of those in Guruve.

“We are proud to spearhead this breast cancer awareness campaign in Guruve. Breast cancer is a serious health concern that affects women of all ages. By offering education, screenings, and support, we hope to make a meaningful difference in the lives of women and girls in our community,” said Tanyanyiwa.

ZCDC Donates US$55,000 in Food Hampers in Manicaland

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Zimbabwe’s biggest diamond producer, Zimbabwe Consolidated Diamond Company (ZCDC), has responded to the ongoing El Niño-induced drought that severely impacted communities by donating nearly US$55,000 worth of food in Manicaland province, Mining Zimbabwe reports.

By Rudairo Mapuranga

ZCDC, in collaboration with the Chiadzwa Community Share Ownership Trust, donated US$55,000 worth of food hampers to vulnerable families in Chiadzwa, Marange, Mukwada, and Arda Transau.

According to ZCDC’s Corporate Affairs Executive, Sugar Chagonda, this initiative is part of ZCDC’s broader commitment to corporate social responsibility (CSR) and comes at a critical time when food security is under serious threat due to the drought.

The hampers, containing essential items such as mealie meal, sugar, and cooking oil, aim to provide immediate relief to drought-stricken households.

Chagonda emphasized ZCDC’s concern for the welfare of the local communities and its dedication to supporting them during these challenging times.

“We are deeply concerned about the impact of the drought on the people of Chiadzwa. We believe it is our responsibility to help those in need, and we are committed to providing support wherever possible,” said Chagonda.

ZCDC has been working closely with government agencies, including the Department of Social Welfare, to identify the most vulnerable families. The company’s partnership with the Chiadzwa Community Share Ownership Trust, which represents local interests, is crucial in ensuring that the support reaches those in greatest need.

The severity of the current drought, driven by the El Niño weather phenomenon, has heightened food insecurity across Zimbabwe.

The government has acknowledged the pressing need to mitigate the effects of the drought and has implemented several programs to provide relief to affected communities. However, with resources stretched thin, ZCDC’s contribution has become a vital supplement to the government’s efforts.

ZCDC has a strong history of CSR, demonstrated through various community development initiatives. These include investments in education, healthcare, and infrastructure in regions where the company operates. For instance, through its social investment strategy, ZCDC has undertaken projects aimed at improving living conditions, including building schools, health centers, and providing clean water to local communities.

As the drought continues to threaten livelihoods, ZCDC’s intervention underscores the importance of corporate involvement in addressing national challenges.

“We believe that it is important for businesses to give back to the communities in which they operate. We are proud to be able to make a difference in the lives of the people of Chiadzwa,” said Chagonda.

The hampers are expected to provide critical relief to thousands of families, and ZCDC has pledged to continue monitoring the situation, ensuring further assistance as needed.

This donation reflects the company’s ongoing efforts to support the communities in Manicaland, reinforcing its role not only as a key player in the diamond mining industry but also as a partner in national development.

Gold buying prices per gram in Zimbabwe 23 October 2024

These are the official gold buying prices per gram in Zimbabwe today 23 October 2024, from the official gold buyer and exporter Fidelity Gold Refinery (FGR).

SG 90% and ABOVE US$83.14/g
SG ABOVE 85% BUT BELOW 90% US$82.26g
SG ABOVE 80% BUT BELOW 85% US$81.38/g
SG ABOVE 75% BUT BELOW 80% US$80.50/g
SAMPLE BELOW 10g BUT ABOVE 5g US$79.18/g

Fire Assay CASH $83.58/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.

All Set for the Geological Society of Zimbabwe Summer Symposium

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The Geological Society of Zimbabwe (GSZ) is gearing up for one of its most anticipated events of the year, the Summer Symposium and MacGregor Memorial Lecture.

By Ryan Chigoche

This event, set to take place from 1 to 2 November, 2024, at the Natural History Museum of Zimbabwe in Bulawayo, will bring together geologists, students, and enthusiasts for a day of knowledge, exploration, and networking.

This year’s symposium will feature a lineup of distinguished speakers and experts in geology. Attendees can look forward to engaging presentations covering a variety of topics, including geochronology, mineral resources, and innovative sustainable practices in geological research. The event aims to foster collaboration and discussion, allowing participants to share ideas and insights that could shape the future of geological studies in Zimbabwe and beyond.

A key highlight of the day will be the MacGregor Memorial Lecture, delivered by Professor Benjamin Mapani from the Namibia University of Science and Technology. His lecture, titled

“Zircon Geochronology: A Handle in Plate Reconstructions, Geological Evolution of Mobile Belts, and Assessment of Mineral Deposit Fertility,”

is scheduled to begin at 3:30 PM. Open to the public, this lecture presents a unique opportunity for everyone, from professionals to casual enthusiasts, to deepen their understanding of geological processes and their implications for mineral exploration.

Following the symposium, participants are invited to join an exciting field trip to the Diana’s Pool area in Matobo on November 2. This excursion will offer a firsthand look at the region’s captivating geological features, including its renowned orbicular granite formations. Guided by experienced geologists, attendees will gain valuable insights into the area’s geological history, making it a perfect complement to the symposium’s discussions.

The Geological Society of Zimbabwe has a rich history. It was founded in 1981 after operating as a branch of the Geological Society of South Africa since 1962. This transition marked a pivotal moment for geological study and collaboration within Zimbabwe, allowing for a more localized focus on the unique geological challenges and opportunities in the region.

As the date approaches, excitement is building for this remarkable gathering of minds in the geological community.