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ZDAMWU Calls for Stronger Union Efforts to Tackle Job Insecurity, Unsafe Working Conditions in Mining

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The Zimbabwe Diamond and Allied Minerals Workers Union (ZDAMWU) has made a compelling call for stronger union action to tackle the ongoing challenges confronting mine workers in Zimbabwe.

By Rudairo Mapuranga

Speaking at the 2nd Congress of the Union held at Khumalo Hotel on Saturday, ZDAMWU General Secretary Justice Chinhema underscored the critical need for enhanced protections in the mining sector, particularly in the face of job insecurity, unsafe working conditions, and ongoing exploitation of workers.

In his address, Chinhema painted a sobering picture of the current state of the mining industry, where workers continue to face significant risks and uncertainties.

He highlighted how economic instability in Zimbabwe has further exacerbated the hardships endured by mine workers, who are already grappling with precarious employment and hazardous work environments.

“The reality for many mine workers in Zimbabwe is one of constant fear and uncertainty. Job security is a luxury that most cannot afford, and the conditions under which they work are often dangerous and unacceptable,” Chinhema stated.

His remarks come at a time when the mining sector, a key pillar of Zimbabwe’s economy, is under intense scrutiny for its labour practices.

Chinhema’s speech served as a rallying cry for the union to intensify its efforts in safeguarding workers’ rights. He called for a renewed focus on improving safety standards across all mining operations in the country.

“We cannot stand by while our members continue to work in conditions that put their lives at risk. It is our duty as a union to ensure that every mine worker is able to return home safely at the end of each day,” he emphasized.

The issue of job insecurity was another major point of concern highlighted by the ZDAMWU General Secretary. According to Chinhema, the lack of stable employment in the mining sector has left many workers vulnerable to exploitation. He pointed to the frequent layoffs and contract terminations as evidence of a deeply flawed system that prioritizes profits over people.

“Job insecurity is a weapon used by employers to keep workers in a state of constant anxiety. This makes them more susceptible to exploitation, as they fear losing the little income they have. This must change,” Chinhema argued.

He stressed the need for the union to negotiate more robust employment contracts that protect workers from arbitrary dismissals and ensure that their rights are respected.

Chinhema also addressed the broader economic challenges that have further compounded the difficulties faced by mine workers. He noted that ongoing currency instability in Zimbabwe has led to severe economic hardships for many, as wages have been eroded by inflation and the fluctuating value of the Zimbabwean dollar. This, he said, has left workers struggling to make ends meet, with many unable to afford basic necessities.

“The economic environment in Zimbabwe has placed an unbearable burden on our members. They are paid in a currency that loses value every day, while the cost of living continues to rise. We must fight for better wages and fair compensation that reflects the true cost of living,” Chinhema asserted.

Chinhema reiterated the union’s commitment to standing up for mine workers and ensuring that their voices are heard. He urged all members to remain united in their struggle for justice and dignity in the workplace.

“The challenges we face are great, but our resolve is greater. Together, we can build a future where every mine worker is treated with the respect and fairness they deserve,” he concluded.

Zimbabwe gold buying prices per gram 2 September 2024

Fidelity Gold Refinery (FGR) official gold buying prices/ gram. See the Zimbabwe gold buying prices per gram today 2 September 2024.

SG 90% and ABOVE US$76.36/g
SG ABOVE 85% BUT BELOW 90% US$75.55g
SG ABOVE 80% BUT BELOW 85% US$74.74/g
SG ABOVE 75% BUT BELOW 80% US$73.93/g
SAMPLE BELOW 10g BUT ABOVE 5g US$72.72g

Fire Assay CASH $76.76/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.

Mutapa Investment Fund Seeks Investors to Boost Mining Cluster

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The Mutapa Investment Fund, Zimbabwe’s sovereign wealth fund, has revealed that its current strategy for the mining cluster is to form joint ventures and partnerships to revitalize its mining portfolio, rather than acquiring new mines, Mining Zimbabwe has learned.

By Ryan Chigoche

This development comes amid speculation that the sovereign wealth fund may acquire new mines, as Zimbabwe is currently experiencing an unprecedented influx of investors in the mining sector.

Mutapa currently holds a diverse range of assets in the mining sector, and the fund is seeking to unlock the full potential of the mines already in its portfolio. The fund’s mining cluster comprises various companies, each with its unique strengths and resources.

Speaking to Mining Zimbabwe on the sidelines of a recent event, Mutapa Investment Fund CEO John Mangudya stated that they are not looking to acquire new mines but have opened up investment opportunities through partnerships to make the mines already in their portfolio more viable.

“In terms of acquisitions of new mines, the opportunity is for investors to form joint ventures with us, Mutapa. If you want to go into gold production, lithium, or chrome, we have those resources under Mutapa, so if you have a good investor or are an indigenous investor yourself, we can do a joint venture. For now, we can’t acquire new mines, but we need to look at how we can make those already in the portfolio more viable. So, it will either be us putting money there or investors,” Mangudya said.

The Mutapa Investment Fund has a diverse portfolio of mining companies, including Kuvimba Mining House, which owns around a dozen gold, lithium, nickel, and platinum mines, as well as Fidelity Gold Refinery, a gold refining company, and Hwange Colliery Company, a coal mining company. Additionally, the fund has investments in Defold Mine, which owns the Zimbabwe Consolidated Diamond Company (ZCDC), a leading diamond mining company. This diverse range of investments positions the Mutapa Investment Fund as a significant player in Zimbabwe’s mining sector, with a focus on tapping into the country’s vast mineral resources and contributing to its economic growth.

RioZim Loses Over 200 Mine Claims to Zim Army

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Listed diamond producer RioZim has lost more than 200 mine claims to the Zimbabwe National Army (ZNA) following the High Court’s dismissal of RioZim’s application regarding the ownership of the claims.

By Ryan Chigoche

RioZim had listed the Defence and Mines Ministers as respondents in its application, which the court found defective. The company initially sought a review of the Defence Minister’s decision to designate the land as a cantonment area or military zone under section 89 of the Defence Act.

In its application, RioZim stated it held 206 mining claims in the Darwendale area of Mashonaland West, including the Wendale 42 and Wendale 43 Block claims, registered under certificate numbers 18006BM and 18007BM, respectively. These mines are located on portions of Darwendale South Eclipse Farm, New Burnside Farm, and Darwendale B Farm. Before filing the court application, RioZim had contacted the Defence Ministry to lay claim to the land, but their request was dismissed on the basis that the land belonged to the Ministry.

In a judgment released this week, High Court judge Justice Webster Chinamhora agreed with the Defence Minister’s argument that the application was defective.

“I will deal with the preliminary points and start by addressing whether or not the deponent had the authority to act on behalf of the applicant. The starting point is section 130(2) of the Insolvency Act [Chapter 6:07], which is a deeming provision that provides as follows: ‘(2) During a company’s corporate rescue proceedings, the board of the company will be deemed to be dissolved…’

“It is evident that the first respondent’s (Minister of Defence) contention that the deponent to RioZim’s founding affidavit lacks authority to depose the applicant’s affidavit is properly founded at law.

“As highlighted above, this proposition is anchored on the fact that when a company is placed under corporate rescue, it ceases having a life of its own,” Chinamhora ruled.

“Having come to the conclusion that the deponent to the applicant’s affidavit had no authority or approval by the corporate rescue practitioner, I make the finding that the application is fatally defective.

“As I have resolved the matter on the basis of the aforesaid preliminary point, there is no application before the court,” Chinamhora said before he struck the matter off the roll with costs.

In August 2018, the Defence Minister, acting under section 89 of the Defence Act, issued a notice cited as Defence (Cantonments) Notice 2018 (No. 51). However, before the notice in February 2018, Falcon Resources (Pvt) Ltd had requested that RioZim grant it a tribute for its chrome ore claims in Darwendale.

The letter specified that the claims needed to be at least 10 kilometres away from what the company referred to as the Darwendale Military Zone. However, RioZim did not respond, as it had no intention of ceding any claims to Falcon Resources (Pvt) Ltd or any other entity.

According to RioZim, it was on May 30, 2018, that the company discovered that Rusununguko Nkululeko, which is linked to the army, and Falcon Resources were mining on its claims, specifically the Wendale 43 Block in Darwendale.

RioZim then engaged with these organizations several times to address the issue, but with no success, as the two companies argued that RioZim was operating in a military cantonment, and they continued mining on the said claims.

RioZim argued that the claim of the area being a military cantonment was false, as the area had not been officially declared as such.

This prompted RioZim to file an urgent chamber application under HC 5212/18, which the High Court initially granted with interim relief. However, Falcon Resources (Pvt) Ltd and Rusununguko Nkululeko (Pvt) Ltd appealed the High Court’s decision under SC 476/18, and the appeal was dismissed.

In the application, RioZim argued that the Defence Minister’s declaration of the area covering its mining claims as a cantonment area under Statutory Instrument 145 of 2018 was reviewable. They contended that the decision was made in a manner that violated the duty to act lawfully, reasonably, and fairly, and was irregular and ultra vires, as the Defence Minister exercised power for purposes other than those for which it was granted.

The Minister argued that RioZim had no mining claims in the area covered by Statutory Instrument 145 of 2018, Defence (Cantonments) Notice 2018 (No. 51). The Minister claimed that the Statutory Instrument declared a 10 km radius shown on the plan as a restricted area. The argument was that RioZim had no valid title to any mining claims within this area, as both Wendale 42 and 43 had been re-pegged and assigned new registration numbers different from those provided by RioZim.

Kuchera TeamUp: A Game Changer in Mining Surveying

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German-based technology firm Kuchera is revolutionizing mining surveying with its TeamUp software, which plays a crucial role in optimizing load and haul operations.

Ryan Chigoche

As the company aims for regional expansion, TeamUp stands out by leveraging advanced technology and artificial intelligence to provide real-time insights, enhancing operational efficiency and outcomes.

The platform offers a comprehensive view of production metrics, asset performance, and operational efficiency, all through a user-friendly interface. This allows users to track asset locations, receive live updates, and access actionable recommendations for boosting productivity, safety, and overall asset health.

Speaking to Mining Zimbabwe at the Association of Mine Surveyors of Zimbabwe (AMSZ)’s recent technical visit to Eureka Mine, Kuchera’s Business Development Manager, Tinevimbo Mandishonha, emphasized the software’s significance in mining surveying operations.

“Kuchera’s system is a game changer for mining surveyors, offering unparalleled precision, efficiency, and safety. Our technology ensures accurate measurements and real-time data tracking, enabling mining operations to proceed with confidence and reduced risk. By minimizing errors, improving planning capabilities, and enhancing collaboration across teams, Kuchera’s system not only streamlines operations but also generates significant cost savings. This innovation empowers surveyors to make informed decisions, ultimately leading to safer and more efficient mining processes,” Mandishonha said.

The technology significantly boosts efficiency in mining operations. Automation and advanced machinery reduce manual labour and streamline processes, allowing for faster extraction and processing of minerals. This increase in productivity can lead to lower operational costs and higher output. Additionally, Geographic Information Systems (GIS) and data analytics offer precise insights into mineral deposits and terrain, enabling more accurate planning and extraction.

Recently, Kuchera announced partnerships with Eureka and JR Goddard, leading mining contractors in the country. The company is also collaborating with R. Davis at Freda Rebecca Mine operations. Kuchera aims to strengthen its presence in mining houses and contractor partnerships, with plans to expand its installations globally. The company is targeting new operations in Kazakhstan, Brazil, and Chile.

Kuchera recently introduced a new value-based share business model that aligns its success directly with its clients’ success. This model is designed to reduce upfront costs for partners while maximizing return on investment, fostering mutually beneficial relationships.

“Through sharing in the value generated, we foster stronger, long-term partnerships, ensuring our interests are fully aligned with those of our clients. This approach not only adds flexibility but also reinforces our commitment to delivering the best possible outcomes for our partners,” Kuchera stated.

Looking ahead, Kuchera is focused on rapid expansion, starting with Southern Africa. Currently operating in South Africa’s Northern Cape and Mozambique, the company plans to enter Zambia and the Democratic Republic of Congo (DRC) in Q4. Once established in these markets, Kuchera will pursue opportunities in South America and Asia, including Kazakhstan, Brazil, and Chile.

“We anticipate announcing new partnerships within the next six months, continuing our mission to enhance mining operations worldwide through cutting-edge technology and innovative business models,” added Kuchera. With six clients in the mining sector and one in waste management, Kuchera’s existing partnerships have demonstrated significant improvements in efficiency, safety, and cost-effectiveness,” Mandishonha added.

Kuchera’s expansion drive reflects its commitment to advancing surveying technologies in mining operations, aiming to enhance efficiency, safety, and sustainability on a global scale.

Dorowa Minerals Invites Bids for Supply and Service Contracts

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The country’s only phosphate mine, Dorowa Minerals Limited (DML), owned by Chemplex Corporation, has issued an invitation for domestic competitive bidding, calling on reputable and PRAZ-registered companies to participate in a series of tenders for the supply of essential goods and services, Mining Zimbabwe can report.

By Rudairo Mapuranga

According to a notice in the Government Gazette of August 30, 2024, the tenders, which are set to close on September 30, 2024, provide opportunities for businesses to supply oils, lubricants, cleaning chemicals, vee belts, canteen groceries, and motor vehicle hire services.

The company, a key player in Zimbabwe’s mining sector, seeks qualified suppliers and service providers to meet its operational needs.

The tenders are as follows:

  1. Tender Number: DML-CB-07-2024
    Description: Supply and delivery of oils, lubricants, and cleaning chemicals
    Closing Date and Time: September 30, 2024, at 10:00 hours
  2. Tender Number: DML-CB-06-2024
    Description: Supply and delivery of vee belts
    Closing Date and Time: September 30, 2024, at 12:00 hours
  3. Tender Number: DOMESTIC/DML/FMWK/02/2024
    Description: Provision of canteen groceries
    Closing Date and Time: September 30, 2024, at 14:00 hours
  4. Tender Number: DOMESTIC/DML/FMWK/01/2024
    Description: Motor vehicle hire service
    Closing Date and Time: September 30, 2024, at 14:00 hours

Bidding Process and Requirements

Interested bidders are required to obtain the bid documents, which include detailed instructions and the scope of work, through the electronic Government Procurement System (e-GPS).

Bidders must submit their tenders online via the e-GPS system, ensuring that each submission is clearly marked with the appropriate tender number. Adherence to the specified closing dates and times is crucial, as late submissions will not be considered.

Key Points to Note:

  • No Payment Required: Unlike some tender processes, Dorowa Minerals Limited has clarified that no payments are required for participation in these tenders.
  • PRAZ Registration: Only companies registered with the Procurement Regulatory Authority of Zimbabwe (PRAZ) are eligible to bid.

861 hectares in Mt Darwin reserved against prospecting and pegging

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The Ministry of Mines and Mining Development has officially reserved a significant area in Mt Darwin, Mashonaland Central, from any prospecting and pegging activities, according to General Notice 1342 of 2024, published under the authority of the Mines and Minerals Act [Chapter 21:05].

By Rudairo Mapuranga

In a move set to affect potential mining operations in the region, the Ministry, through Secretary Pfungwa Kunaka, has announced that the area designated as Mashonaland Central Provincial Mining District RA MSC004 will be reserved with immediate effect.

The reservation comes in accordance with Section 35(1) of the Mines and Minerals Act [Chapter 21:05], which allows the Ministry to set aside land against mining activities for various reasons, including environmental protection, preservation of heritage sites, or other considerations deemed necessary by the government.

The reserved area, referred to as the Tongogara Reservation MSC004, covers approximately 861 hectares in the Mt Darwin region of Mashonaland Central. The specific boundaries of this reserved area are meticulously described in the official schedule, ensuring clarity for all stakeholders. The area is bounded by a series of coordinates, starting from Point A, approximately 0.2 km northwest of Trig. Beacon 24/P, and extends over several kilometers, creating a clearly defined zone where mining activities are prohibited.

The detailed boundary description is as follows:

  • Point A: The starting point is approximately 0.2 km northwest of Trig. Beacon 24/P, with grid reference 351975.78E: 8136156.59N.
  • Point B: From Point A, the boundary extends for 3.88 km on a bearing of approximately 045 degrees to Point B (grid reference 354199.93E: 8139335.94N).
  • Point C: The boundary then proceeds due east on a true bearing of 90 degrees for a distance of approximately 0.2 km to Point C (grid reference 354401.35E: 8139336.22N).
  • Point D: From Point C, the line extends for 4.5 km on a bearing of approximately 135 degrees to Point D (grid reference 357120.07E: 8136073.86N).
  • Return to Point A: Finally, the boundary returns to the starting point on a true bearing of 272 degrees for a distance of 5.25 km.

This reservation is expected to have significant implications for mining companies and individuals who may have been considering prospecting or pegging in the region. The reserved status of this land means that no new mining claims can be established within the defined boundaries, and any existing claims may be subject to review depending on their status under the law.

The Ministry of Mines and Mining Development has not provided specific reasons for the reservation of this area at this time. However, such reservations are typically enacted to protect certain regions from the environmental impact of mining, to safeguard areas of cultural or historical significance, or to reserve land for future state-directed mineral exploration activities.

Stakeholders in the mining sector and interested parties in Mashonaland Central are advised to take note of this development and adjust their plans accordingly. Any inquiries or clarifications regarding this reservation should be directed to the Ministry of Mines and Mining Development.

Muzururi Special Grant Extended by 3 Years Again

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The Minister of Mines and Mining Development, with the authority of the President, has extended Muzururi Mining Development (Private) Limited’s Special Grant No. 5237 by another three years, Mining Zimbabwe can report.

By Rudairo Mapuranga

Special Grant No. 5237 for Muzururi was first issued in 2012 and was announced in the Government Gazette on January 4, 2023. Initially, the grant was set to expire on October 1, 2015. This extension marks at least the third time the special grant has been renewed.

According to a notice seen by Mining Zimbabwe, published in the Government Gazette and signed by the Permanent Secretary in the Ministry of Mines and Mining Development, Pfungwa Kunaka, the special grant will now expire in 2027.

The notice reads:
MINES AND MINERALS ACT [CHAPTER 21:05] — Special Grant No. 5237: Masvingo Mining District — It is hereby notified that the Minister of Mines and Mining Development, with authorization from the President, has, in terms of section 301 of the Mines and Minerals Act [Chapter 21:05], extended the tenure of Special Grant No. 5237 for Muzururi Mining Development (Private) Limited for a period of three years, with effect from 30th August 2024 to 29th August 2027.

P. Kunaka, 30-08-2024. Chairman, Mining Affairs Board.

Critics have encouraged the government to walk the talk and invoke the “Use it or Lose it” policy which will unlock some idle land covered by EPOs.

Zimbabwe gold buying prices per gram 30 August 2024

Fidelity Gold Refinery (FGR) official gold buying prices/ gram. See the Zimbabwe gold buying prices per gram today 30 August 2024.

SG 90% and ABOVE US$76.50/g
SG ABOVE 85% BUT BELOW 90% US$75.69g
SG ABOVE 80% BUT BELOW 85% US$74.88/g
SG ABOVE 75% BUT BELOW 80% US$74.07/g
SAMPLE BELOW 10g BUT ABOVE 5g US$72.86g

Fire Assay CASH $76.91/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.

Kavango Resources Launches Ambitious Expansion Plan to Bolster Gold Mining in Zimbabwe

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London Stock Exchange-listed mining and exploration junior Kavango Resources is making notable advances in the Southern African metals exploration sector, with a strong focus on Zimbabwe.

by Patricia Rwafa

The company recently announced its Capital Investment & Financing Programme (Cap-Ex Programme), signalling its intention to significantly develop its mining projects and tap into Zimbabwe’s abundant mineral wealth.

The Cap-Ex Programme is centred around the Hillside Gold Project, where Kavango aims to unlock significant value through targeted exploration and development.

The initial phase of this programme is designed to enhance the project’s potential, setting the stage for a robust expansion of gold mining activities in the region.

In a press release dated August 29, 2024, Kavango detailed its plans for the first phase of the Cap-Ex Programme, emphasizing the potential of the Hillside Gold Project to host mineable ore bodies. This phase will be financed in part by a £2 million convertible loan note issued to Purebond Limited, Kavango’s major shareholder.

According to Ben Turney, CEO of Kavango Resources, the company is satisfied with its progress in Zimbabwe.

“We are extremely pleased with the rapid progress and achievements Kavango is making in Zimbabwe. So far, this approach has delivered highly encouraging results,” he said.

The Kavango CEO highlighted the company’s accomplishments over the past year, which have paved the way for Kavango to embark on this ambitious capital investment programme.

He noted that since the initiation of small-scale gold production at Hillside in March 2024, Kavango has successfully built a competent mining and production team, made key improvements to the plant and site, and hosted several site visits by industry experts to further refine their operations.

“Our exploration team has worked diligently to deepen our understanding of Hillside’s geology and structural setting,” Turney added.

“This groundwork has enabled us to move forward with resource drilling, bringing us closer to our goal of expanding gold production,” he concluded.

The first phase of Kavango’s Cap-Ex Programme is designed to maximize near-term revenue generation in Zimbabwe through a disciplined and focused approach. The primary activities planned for this phase include:

Capital Investment in Hillside Mining Operations

Kavango will enhance the existing small-scale gold production at Hillside by improving current processes and reactivating historic mine shafts. The company anticipates that these efforts will double gold production to 3 kilograms per month by the end of Q4 2024.

Resource Drilling at Hillside

Resource drilling will be conducted on Kavango’s top-ranked targets at Hillside, to establish a gold resource of at least 10,000 ounces within the top 100 meters and an additional 5,000 ounces in the next 50 meters below. The aim is to identify 73,000 tonnes of mineable ore, sufficient to sustain continuous operations for two years.

Commissioning of a 100-tonne/day Gold Processing Plant

If exploration targets are met, Kavango plans to commission a 100-tonne/day gold processing plant at Hillside. The company is collaborating with a South African manufacturer experienced in designing and installing modern gold production plants across Africa. The plant is expected to begin gold production by Q2 2025.

Investment in Equity Drilling Zimbabwe (Pvt) Limited

Kavango will acquire a 45% stake in its drill partner, Equity Drilling Zimbabwe, for US$22,500. This investment is part of a broader strategy to build a supply chain that supports metals exploration in Zimbabwe, a country with limited modern exploration activities. The company has already extended a US$240,000 loan to Equity Drilling in Q2 2024, with plans to provide an additional US$240,000 in Q3 2024 for the purchase of new drill rigs.

Kavango Resources’ Cap-Ex Programme marks a significant step forward in the company’s efforts to expand its gold mining operations in Zimbabwe. By focusing on the Hillside Gold Project, Kavango is positioning itself as a key player in the country’s mining sector. The successful implementation of this programme could not only enhance the company’s profitability but also contribute to Zimbabwe’s economic growth by promoting sustainable mining practices.

As Zimbabwe continues to attract international investment, Kavango’s progress at Hillside could set a benchmark for future projects in the region. With strong backing from its shareholders and partners, Kavango Resources is well-positioned to drive the next phase of gold mining in Zimbabwe, unlocking new opportunities in one of Africa’s most promising mining destinations.