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Simbi Alloys Urges for Beneficiation Amid Concerns Over Unprocessed Copper Exports

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Simbi Alloys, a leading copper processor in Zimbabwe, has expressed strong concerns about the ongoing export of unprocessed copper ores, calling for a renewed focus on beneficiation to support local industries and reduce the substantial import costs borne by the government.

by Ryan Chigoche

Zimbabwe’s copper sector has historically suffered from a lack of effective beneficiation. Despite having significant copper reserves, the country has primarily exported raw copper, missing out on the potential economic benefits that come from processing and value addition. This practice has led to substantial losses in potential revenue and job creation, as value-added copper products are largely produced abroad.

Patricia Mutombgwera, Chief Executive of Simbi Alloys, emphasized that the massive export of unprocessed copper is detrimental to the economy, calling for increased local beneficiation to boost economic growth and employment. “We have vast, unexplored copper reserves that should be utilized for beneficiation, which would generate employment and revenue. The current practice of exporting unprocessed minerals is unjust to our economy and our future. We can do better,” Mutombgwera stated.

Despite its potential, Zimbabwe’s copper production is relatively modest compared to other countries. The country’s copper resources are concentrated in areas like the Zambezi Valley and around Mhangura. More than 70 known copper deposits exist, with significant resources in the Magondi Basin and Umkondo Basin. Hydrothermal deposits such as Inyathi and Copper Duke also present opportunities.

Historically, copper production ceased after the closure of Mhangura, and the current output is linked with nickel, gold, and PGM operations. The Chamber of Mines notes that exploration spending has been low, leading to a decline in production.

Looking ahead, S&P Global projects a long-term increase in copper prices due to the clean energy transition. The demand for copper is expected to double, reaching 50 million metric tons by 2035, driven by its use in electric vehicles (EVs). For example, a battery electric vehicle (BEV) contains up to 83 kg of copper. The International Energy Agency (IEA) predicts a record 17 million EVs and plug-in hybrids will be sold globally in 2024.

Zimbabwe is urged to accelerate copper exploration to capitalize on this anticipated demand. Despite the current low levels of copper production and exploration, significant potential remains in the country’s untapped resources.

AMSZ to Conduct Q3 Technical Visit at Eureka Gold Mine This Friday

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The Association of Mine Surveyors of Zimbabwe (AMSZ) will this Friday conduct its third-quarter technical visit at the Dallaglio owned Eureka Gold Mine in Guruve.

According to AMSZ President Gabriel Mwale, the professional body dedicated to promoting excellence in mine surveying practices within Zimbabwe will visit Eureka to gain deeper insights into survey methodologies and technologies, safety protocols and procedures, data management and analysis systems, as well as training and development programs for mine surveyors. This visit is set to offer an excellent opportunity for members to gain firsthand experience and insights into the operations of one of the country’s leading gold mining companies.

“We believe that learning from industry leaders like Eureka Gold Mine is crucial for the continuous development and improvement of our members’ skills and knowledge. During this visit, we are particularly interested in learning about:

  • Survey Methodologies and Technologies
  • Safety Protocols and Procedures
  • Data Management and Analysis Systems
  • Training and Development Programs for Mine Surveyors

This visit will provide an excellent opportunity to gain firsthand experience and insights into the operations of one of the country’s leading gold mining companies, enabling technical engagements among members and other participants,” Mwale said.

Importance of technical Visits

Technical visits offer surveyors practical exposure to the complexities of mining, bridging the gap between theoretical knowledge and real-world application. By witnessing surveying techniques in action and interacting with seasoned professionals, surveyors enhance their problem-solving skills and practical expertise.

The mining industry is constantly evolving, with new technologies and practices emerging to improve efficiency, safety, and sustainability. Technical visits provide a platform for surveyors to stay abreast of these advancements, enabling them to adopt new techniques and remain at the forefront of their field. Furthermore, these visits foster networking and collaboration among surveyors, mining professionals, and industry experts. The exchange of knowledge and experiences during these interactions enriches the surveyors’ understanding of diverse mining operations and best practices.

Technical visits also play a crucial role in the ongoing professional development of surveyors, fulfilling their continuous learning requirements. By expanding their knowledge base and skill set, surveyors enhance their professional competence and career prospects. Safety is paramount in the mining industry, and technical visits often highlight safety protocols and best practices. Observing and discussing safety measures on-site fosters a heightened awareness of potential hazards, enabling surveyors to implement safety-conscious practices in their own work.

Zimbabwe bans riverbed, alluvial mining with immediate effect

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The government has immediately banned all mining and desiltation activities in riverbeds, citing their lack of tangible benefits to the country and the increasing environmental degradation of rivers, Cabinet announced.

Cabinet stated that pollution, siltation, and degradation were worsening rather than improving.

During a Cabinet briefing on Tuesday, the Minister of Information, Hon. Jenfan Muswere, announced that the commencement of large-scale and mechanical alluvial mining has led to significant destruction of rivers and disruption of riverine ecosystems. As a result, the Cabinet has imposed an immediate ban on riverbed mining.

“Cabinet considered and approved the Report on Alluvial Mining and Rehabilitation of Degraded Rivers, which was presented by the Minister of Lands, Agriculture, Fisheries, Water and Rural Development, Honourable Dr. Anxious Masuka, as Chairperson of the Inter-Ministerial Committee on Mining and Environment.

Cabinet noted that since its commencement in 2011 across the country’s rural provinces, large-scale and mechanical alluvial mining, or riverbed mining, has resulted in water pollution, siltation, degradation of river channels, and disruption of riverine ecosystems. Cabinet directed that riverbed mining be banned with immediate effect,” Muswere said.

The country is facing severe water shortages exacerbated by illegal gold mining activities around its supply dams. These activities pose a serious threat to water supplies, as illegal miners are even digging in the dried-up dams, which is likely to cause heavy siltation and contamination.

Rivers such as the Nyagadzi in Chendambuya, Mazowe, Munyati, Insiza, Save, Mutare, and Angwa have been severely affected by riverbed mining, leading to similar environmental damage and water resource challenges. The Umzingwane Dam, one of the key water sources for Bulawayo, is currently at just two percent capacity and is unlikely to see significant inflows without extreme weather conditions, such as a cyclone, due to the damage caused by illegal mining.

Zimplats Spent Over US$800 Million on Major Projects

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The country’s biggest platinum group metal (PGM) producer, Zimplats, has spent US$858 million on its major projects as of June 30, 2024, according to the company’s quarterly report for the period ending June 30, 2024.

By Rudairo Mapuranga

According to the report, Zimplats spent the money on the Bimha and Mupani mine development and upgrade, smelter expansion, solar plant, and base metal refinery refurbishment, against a budget of US$1.239 billion.

“The Bimha and Mupani mine development and upgrade projects will replace production from the Rukodzi and Ngwarati mines, which were depleted in FY2022 and June 2024, respectively, and Mupfuti Mine, which will be depleted in FY2028.

“Cumulatively, US$407 million has been spent on these projects as of June 30, 2024, against a total project budget of US$468 million.

“A total of US$387 million has been spent on the smelter expansion and SO2 abatement plant project, against a total project budget of US$544 million.

“US$36 million has been spent on the implementation of the 35MW solar plant project, against a budget of US$37 million. The solar plant will be commissioned in the first quarter of FY2025.

“A total of US$28 million has been spent on the Base Metal Refinery refurbishment project, against a total budget of US$190 million,” the Zimplats report reads in part.

Under its US$1.8 billion capital expenditure investment, which was launched in 2021, Zimplats’s strategy involves the setting up of integrated projects, including the development of new mines, expansion of the smelter, construction of an additional concentrator, base metal refinery, sulphuric acid plant, and the establishment of a 110-megawatt (MW) solar power plant.

The report also states that mining volumes increased by 2% year-on-year, benefiting from pillar reclamation activities at Rukodzi Mine and the continued production ramp-up at Mupani Mine, which is under development. However, mining volumes declined by 1% from the prior quarter due to higher productivity at Ngwarati Mine’s primary operations ramping down.

The 6E head grade declined by 1% year-on-year and quarter-on-quarter due to an increased contribution of lower-grade Mupani Mine development ore and dilution from mining across geological structures.

According to Zimplats, year-on-year milled volumes improved by 3% due to the higher milling rates achieved, in line with improved mining volumes. Milled volumes decreased by 1% from the prior quarter, however, due to a planned mill reline shutdown at the Selous Metallurgical Complex (SMC) concentrator. Concentrator recoveries were 1% lower year-on-year and quarter-on-quarter due to lower mill feed grades achieved.

The country’s biggest PGM producer said that as a result of the milled volumes and mill feed grade achieved, 6E concentrate production was the same year-on-year and decreased by 3% quarter-on-quarter.

The group said 6E metal in the final product decreased by 4% year-on-year and 5% from the prior quarter.

MIPF 2nd AGM Set for September 30, 2024

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The Mining Industry Pension Fund (MIPF) is set to hold its second Annual General Meeting (AGM) on September 30, 2024. This meeting aligns with the Pensions and Provident Funds Act (Chapter 24:32), which mandates that all pension funds must hold AGMs for their members, pensioners, and beneficiaries.

By Ryan Chigoche

The Act, effective from October 2, 2023, aims to ensure greater transparency and accountability in the management of pension funds.

In compliance with this regulation, MIPF conducted its inaugural AGM on February 2, 2024, reviewing the fund’s activities for the year ending December 31, 2022. The upcoming AGM, which will focus on the financial and operational aspects for the year ending December 31, 2023, will take place at 0900 hrs at the Anmy Miller Hall, Zimbabwe Agricultural Society Showgrounds, with a virtual attendance option available.

“We take this opportunity to invite all contributing member mines to allow at least two employee members to attend this important event. Please note that all members unable to attend the AGM are entitled to appoint a representative to stand in for them, either virtually or physically, to vote and speak on their behalf by completing and lodging with the Fund the Proxy Form at least 7 days prior to the meeting date,” read parts of the MIPF circular.

The MIPF was established in 1952 through an industrial agreement between the Associated Mine Workers Union of Zimbabwe (AMWUZ), the Mine Officials and Salaried Staff Association, and the Chamber of Mines of Zimbabwe (COMZ). This agreement created the Fund Rules, initially published as Statutory Instrument 771 of 1982 and later replaced by Statutory Instrument 14 of 2016. These rules, however, are currently under review to ensure alignment with the contemporary regulatory and operational environment.

As of December 31, 2020, the fund had 22,495 active members, 42,139 deferred members, 8,080 preserved members, and 11,782 pensioners, with 143 employer members contributing. Ensuring that members receive their pension benefits in compliance with the Fund Rules remains the primary goal of MIPF.

Defold, Bravura Strengthen Partnership with Focus on Community Involvement and Project Progress

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Defold Mine Pvt Ltd, owned by the Mutapa Investment Fund, has expressed optimism regarding Bravura’s Kamativi lithium dump processing project.

By Rudairo Mapuranga

The mine is eager to see the completion of civil works by the end of the fourth quarter while ensuring strong community involvement in the project.

In an interview with Mining Zimbabwe, Defold Mine Pvt Ltd Acting General Manager, Wilfred Tanyanyiwa, shared that the project, which had previously experienced some delays, is now gaining momentum.

He highlighted the progress made in the shipment of a state-of-the-art processing plant from South Africa by the vendor, Manhattan Corporation.

“The project is now starting to gain some traction. Since the last update from Bravura in June, when the equipment was 97% complete and they faced challenges with marine transportation, we’ve seen good progress with the latest batch that has arrived in Zimbabwe. We anticipate that the batches will continue to arrive within this quarter, which is Q3. As the government arm, which is a partner in this project, we are hopeful that its implementation may be expedited. We’ve done our part, including granting Bravura an operating license and providing the VAT exemptions they were anticipating. The road is now clear for their equipment to start arriving,” Tanyanyiwa said.

He noted significant progress in the preparation of the plant sites and expressed hope that civil works would commence in the fourth quarter of this year to ensure the steady advancement of the project.

Tanyanyiwa also emphasized the improvements Bravura has made in stakeholder engagement, ensuring that all parties involved are well-informed and actively participating in the project’s development.

“Bravura has improved in terms of engaging with local stakeholders, ensuring everyone is involved in the journey they are embarking on to bring this project to the community. They have engaged with government bodies like the Chiefs DNC and have communicated with community leaders, ensuring that even the Hwange Rural District Council is aware of the developments they are bringing into the community,” he added.

However, Tanyanyiwa pointed out that Bravura still faces challenges, particularly in securing water sources and ensuring a reliable electricity supply for the plant.

He stressed the importance of addressing these issues and also highlighted the need for Bravura to enhance its local employment strategies.

“There are still some issues they are working on, such as securing water sources for the project and ensuring reliable electricity for their plant. We anticipate providing them with the necessary support as needed. However, Bravura could improve by ensuring that local people are employed in their project. While there has been some progress in the construction work, we believe more can be done to involve skilled local labor, especially as the project kicks off. Zimbabwe has many trained graduates who have the capacity to contribute to the project,” Tanyanyiwa noted.

He concluded by stressing the importance of utilizing local talent, given that Bravura is not a Zimbabwean-based company and therefore should ensure local people benefit from skills transfer.

“We believe a good ratio of skilled labour should come from our local workforce. We hope that they can improve their timelines for the project’s implementation. Our goal is to have the project up and running by December 2024, as we have expectations from our ultimate shareholder, the government, and a dividend must be realized from this project this year,” he said.

Harare based Chinese nationals nabbed in Zambia with 29.9 kgs of gold usd$200,000 cash hidden in vehicle

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Chinese nationals residing in Harare were intercepted in Lusaka by Zambian authorities, who seized 29.9 kilograms of gold and usd$200,000 in cash hidden within the door panels of their vehicle.

By Ryan Chigoche

This incident marks the latest case of gold smuggling from Zimbabwe. The seized gold is valued at $2.3 million.

The vehicle, registered in Zimbabwe, belonged to Chinese national Zhao Changson. The Zimbabwean license plates suggest that the gold might have been smuggled from Zimbabwe, highlighting the prevalence of gold smuggling beyond its borders.

According to Zambia’s Inspector-General of Police, Graphel Musamba, in a statement issued on Friday, the police received a tip-off on August 12, 2024, about a Toyota Land Cruiser Prado with Zimbabwean license plates suspected of transporting precious stones.

“Acting swiftly on this information, the police impounded the vehicle, which was driven by Zhao Changson, aged 58, accompanied by Zhao Yanjing, aged 46, both Chinese nationals,” Musamba said.

“The search led to the discovery of 29.9 kilograms of gold and $200,000 in cash, concealed within the door panels of the vehicle. The suspects, when interviewed, denied any knowledge of the recovered items,” he added.

In their defense, the female passenger, Yanjing, claimed she had purchased the vehicle less than two weeks ago and was unaware of the hidden gold and cash.

Investigations revealed that the suspects were Chinese nationals residing in Harare, Zimbabwe, and were apparently involved in selling fencing wire. They claimed they were in Zambia to visit a friend, whom they refused to name.

The gold and cash have been securely stored as evidence while investigations continue.

Zimbabwe loses about $1.5 billion annually to the smuggling of precious metals, according to the International Crisis Group.

Bravura Processing Plant Arrives, Civil Works Commence

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Pan-African diversified mining company Bravura has had its state-of-the-art lithium processing plant components delivered to its Kamativi Lithium project site

By Rudairo Mapuranga

The company is concurrently undertaking civil works for the plant foundations and other ancillary structures, Mining Zimbabwe has learned.

Speaking to Mining Zimbabwe, Bravura’s Head of the Kamativi Dump Processing Project, Dr Tafadzwa Murinzi, stated that the relocation of the plant components will continue until all parts have arrived in the country. This process is running concurrently with the ongoing civil works.

“The plant is a 300-tonne-per-hour concentrate facility, translating to a spodumene concentrate production of 70,000 tonnes per annum. The expected grade of the concentrate is 6% lithium oxide. We have started relocating the plant into the country, and this process will continue until all the components are on the ground. Concurrently, we are doing civil works for the plant foundations and other ancillaries. Once that is done, we will commence with plant installation and then commissioning. At that stage, we will begin production,” Dr. Murinzi explained.

Dr. Murinzi also noted that nine containers of the plant have already arrived at the Kamativi Lithium Dump Project site, and the installation and commissioning will follow as soon as the civil works are completed.

According to Dr. Murinzi, Manhattan Corporation, the company responsible for designing and manufacturing the plant, will also handle its installation. However, there is a strong emphasis on involving local personnel to ensure skills transfer during the process.

“The vendor who manufactured the plant will be responsible for its installation to ensure it operates efficiently. However, they will work hand in hand with our local engineers, artisans, and other technical personnel. During this phase, there will be a skills transfer to ensure our team is well-equipped to manage and run the plant after the commissioning process,” Dr. Murinzi said.

She further emphasized that Bravura’s employment criteria favour local people, with general workers being hired from the community and skilled positions sourced from across the country.

“Our vision also includes further beneficiation of the product. For managerial and most technical positions, we look for the skill set within the entire country, while for general workers, we aim to employ locally. We are working closely with local governance structures, including chiefs and councillors, to ensure we hire the right people from the area,” Dr. Murinzi added.

The Kamativi Dump Project head highlighted the significant benefits the local community will gain from the project through employment opportunities and corporate social responsibility (CSR) initiatives, which Bravura will undertake in collaboration with community leadership.

“The surrounding community will benefit primarily through employment creation. We intend to provide a significant number of jobs for the local community. Additionally, we are collaborating with local governance structures to identify the particular needs of the community and engage in programmes that will be most beneficial,” she noted.

“For managing tailings or waste generated from the construction processes, we will have a tailings storage facility. We have already started on the designs, ensuring everything aligns with regulatory requirements for such a facility. It will be lined and placed a certain distance away from water bodies. We are also ensuring that the facility meets ISO requirements and adheres to the best industrial standards,” Dr. Murinzi said.

“In terms of water for processing, we are currently investigating available options and getting assistance from local Zinwa authorities. Our plant will use DMS technology, chosen after thorough evaluation to ensure it includes the latest refinements for improved recovery efficiency and compliance with safety, health, and environmental standards,” she added.

Dr. Murinzi concluded by emphasizing the importance of maintaining strong relationships with vendors and manufacturers, treating them as business partners beyond the supply of equipment.

“We treat all our vendors and manufacturers as business partners. Our relationship with them extends beyond the supply of equipment; we continue working with them to stay informed on new developments. They continuously optimize the plant to ensure it operates according to the latest available industrial standards,” she concluded.

Hwange Set to Continue Underground Mining as Coal Prices Firm

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The government-owned Hwange Colliery Company Limited (HCCL) is poised to capitalize on rising coal prices by continuing its underground mining operations.

By Ryan Chigoche

Initially, HCCL announced plans to halt underground mining in June this year to minimize the risk of spontaneous combustion caused by excess coal, as production was significantly outpacing sales.

However, according to the company’s current management, underground production will continue as HCCL has already opened a new underground mine to take advantage of the firming prices.

Due to technical insolvency and persistent losses, HCCL was placed under administration and is still suspended from trading on the Zimbabwe Stock Exchange. The government owns a 37% stake in the company, with Messina Investments being the second-largest shareholder with a 31% stake.

Although still suspended, the company has seen an improvement in performance. In their last results for the third quarter ended September 2023, HCCL reported a positive performance, producing 989,503 tonnes and selling 911,245 tonnes, almost doubling the 388,487 tonnes sold in the prior comparable period. The improved performance was largely due to efficient machinery acquired in the first quarter of 2023.

Collectively, in the nine months to September 2023, the company saw a 163% surge in sales from 1,060,976 tonnes to 2,795,303 tonnes. Hwange Power Station coal accounted for 43% of the sales, raw coal 39%, Hwange Industrial Coal 17%, with Hwange Coking Coal accounting for just 1%. This surge in sales is in line with the doubled production during the period.

HCCL operates three divisions: mining, real estate, and a medical division. The mining division contributed 96% to the company’s unaudited profit before tax of US$10.2 million in the reported period of 2023, with the real estate and medical divisions contributing 3% and 1%, respectively.

Looking forward, the company aims to regain its market share, as it no longer enjoys the monopoly it once had. New private players in the sector have emerged, all seeking to capitalize on the strengthening global coal prices.

Hwange Council Praises Bravura for Exemplary Community Engagement and Transparency

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Pan-African diversified mining company Bravura has been praised by the Hwange Rural District Council for its exemplary involvement of the local community in its operational plans and Environmental, Social, and Governance (ESG) strategies, Mining Zimbabwe can report.

By Rudairo Mapuranga

During the inaugural arrival of the first batch of equipment for Bravura’s state-of-the-art processing plant, comprising nine containers, Hwange Rural District Council Engineer, Eng. Alic Mudenda, commended Bravura for its ongoing engagement with the community. Since the company’s inception, Bravura has ensured that the local population understands its vision and is given a platform to contribute ideas on how the company’s operations can positively impact the community.

Mudenda highlighted that Bravura’s approach sets it apart from other mining companies operating in the district, as it prioritizes the needs of the community despite being a foreign entity. He emphasized that this commitment is commendable and reflects Bravura’s dedication to responsible and inclusive business practices.

“What we have learned and observed with Bravura is that since the beginning, they have involved the local authority in their activities, plans, and future direction. As a local authority, we feel honored to be moving forward with them. Unlike other investors who enter an area without notifying the local authority, Bravura has taken a different approach. For instance, they invited us to witness the offloading of their containers, which is their first consignment. To us, this is a very positive step. The project feels like it belongs to us, and we will continue to support them,” Mudenda said.

These sentiments were echoed by Defold Mine Pvt Ltd Acting General Manager and Company Secretary, Mr. Wilfred Tanyanyiwa, who noted that Bravura has significantly improved its engagement strategies and ensured that all stakeholders are involved in enhancing their operational efficiency.

“Bravura has improved in terms of engaging with local stakeholders, ensuring everyone is involved in the journey they are embarking on to bring this project to the community. They have engaged with government bodies like the Chiefs DNC and have communicated with community leaders, ensuring that even the Hwange Rural District Council is aware of the developments they are bringing into the community,” Tanyanyiwa said.

Bravura is set to process a tailings dump in Kamativi using its state-of-the-art processing plant. This operation is in partnership with Defold Mine Pvt Ltd, marking a significant step in their collaborative efforts to bring advanced mining technology and community-centered development to the region.