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MMCZ Mulls Export Exemption Certificates for Gemstone Miners

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The Minerals Marketing Corporation of Zimbabwe (MMCZ) is actively pursuing the introduction of Exemption Certificates for gemstone exporters, a development that will provide semi-precious mineral miners with more market options while enabling the government to increase accountability for minerals leaving the country.

By Ryan Chigoche

Currently, gemstone miners can only legally sell to MMCZ and its sub-agents, with export regulations being very restrictive. This has created opportunities for foreign buyers who purchase the stones cheaply and then smuggle them out of the country, a situation that benefits neither the miners nor the government.

Zimbabwe maintains stringent controls over its mineral exports to ensure adherence to local laws and to maximize revenue from its extensive natural resources. However, the current export regulations present significant challenges for gemstone miners, often hindering them from legally selling their products outside Zimbabwe. This illicit activity not only damages the local economy but also results in substantial revenue losses for the government.

In an effort to provide gemstone miners with market options while also accounting for the gemstones leaving the country, MMCZ recently announced in Mashonaland West that they will be issuing Exemption Certificates. These certificates will allow miners to export gemstones valued at up to US$10,000 without needing to comply with the full range of export regulations.

“The introduction of an Exemption Certificate from compliance with export regulations will facilitate a more streamlined export process for specified semi-precious stones. An Exemption Certificate could be issued, waiving the need for an export permit and the associated Bills of Entry for export values equal to or less than US$10,000,” MMCZ stated.

“The MMCZ will issue these Exemption Certificates and will account to the Ministry of Mines and Mining Development, the Reserve Bank of Zimbabwe, and the Zimbabwe Revenue Authority (ZIMRA) to ensure compliance with the relevant statutes administered by these institutions,” the authority added.

The Ministry of Mines and Mining Development is responsible for setting policies and regulations, while the Reserve Bank of Zimbabwe (RBZ) issues export permits for all mining companies. The MMCZ, as the sole marketing and selling agent for most minerals (excluding gold and silver), ensures proper valuation and fair pricing. These regulations are designed to centralize oversight and prevent illicit trade, thereby enhancing the country’s ability to benefit from its mineral wealth. However, this has not been the case.

This initiative comes at a critical juncture, as MMCZ reported gemstone exports worth only US$200,000 in 2023. This figure suggests significant smuggling through unofficial channels, as it does not align with actual production levels in the region.

Through this measure, MMCZ aims to open up additional markets and curb smuggling, ultimately contributing to the growth of the local gemstone industry and maximizing economic benefits for Zimbabwe.

However, the authority did not provide clear timelines on when the certificates will be issued, though it comes as a relief to miners.

Zimbabwe has over 40 special coloured gemstones. Mashonaland West Province, where Karoi is situated, is home to several significant gemstone deposits that contribute to Zimbabwe’s rich mining heritage.

Global Economic Uncertainties Drive 14.6% Increase in Gold Exports in HY2024

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Global Economic Uncertainties Drive 14.6% Increase in Gold Exports in HY2024

Zimbabwe’s gold exports in the first six months of 2024 surged by 14.6% to US$970.4 million, up from US$846.6 million in the comparable period of the previous year, as bullion defied the trend of weakening prices that characterized the same period. This was largely due to its status as a “safe haven” for many economies.

By Ryan Chigoche

This development was confirmed by the Minister of Finance and Investment Promotion, Mthuli Ncube. Gold’s reputation as a “safe haven” asset plays a significant role in driving its demand, especially during times of economic uncertainty or financial market volatility.

As a result, Ncube said the increase in exports was due to surging prices driven by gold’s haven status. “The increase in gold exports in the first half of 2024 was largely driven by higher global gold prices, buoyed by safe-haven demand amidst prevailing global economic uncertainties,” Ncube said.

Ongoing conflicts, such as the war in Ukraine and tensions in the South China Sea, have heightened global uncertainty. These situations have driven investors to seek refuge in gold, pushing up demand as they look to protect their assets from the potential fallout of these conflicts.

The performance of gold defied the odds as the prices of many other minerals, particularly those in the PGMs sector, declined during the same period.

However, Ncube noted that the sector’s resilience, despite weakening commodity prices, was bolstered by new minerals like lithium and anticipated growth in output for nickel and chrome.

He added that without this support, the sector would have suffered significantly.

As a further boost to the sector, Ncube said the Ministry of Mines and Mining Development was allocated ZiG 36.7 million to support activities within the sector in the face of softening commodity prices.

“To support interventions in the sector, a total amount of ZiG 36.7 million, inclusive of employment costs, was disbursed during the first six months of 2024 to the Ministry of Mines and Mining Development. The sector also benefited from capacity-building initiatives by development partners amounting to US$177,478, aimed at enhancing transparency and accountability,” Ncube said.

ZMF Showcases Zimbabwe’s Gold Potential at China Gold Expo

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ZMF Showcases Zimbabwe’s Gold Potential at China Gold Expo

The Zimbabwe Miners Federation (ZMF) delegation, led by President Henrietta Rushwaya, made a significant impact at the China Gold Congress and Expo, successfully promoting Zimbabwe’s gold sector as a prime investment destination.

By Rudairo Mapuranga

Rushwaya was accompanied by key members of the ZMF executive, including Mashonaland West Province Chairman Timothy Chizuzu, Treasurer Johane Sithole, and Youth Secretary Eventhough Matimbe, who collectively represented the country’s vibrant small-scale mining sector.

Also present at the expo were Fidelity Gold Refinery (FGR) General Manager Peter Magaramombe and Head of Gold at Fidelity Gold Refinery Tavonga Siziba.

Rushwaya and the ZMF delegation emphasized that Zimbabwe is open for business, highlighting the nation’s vast gold reserves, favourable regulatory reforms, and attractive investment incentives. They positioned Zimbabwe as a country ripe with opportunities for local and international investors, underlining the Second Republic’s commitment to creating a conducive environment for investment.

During her speech titled “Unlocking Zimbabwe’s Gold Potential: Opportunities for Investment and Sustainable Development,” Rushwaya presented a compelling case for investing in Zimbabwe’s gold sector.

“Zimbabwe is endowed with rich and largely untapped gold reserves,” Rushwaya stated. “Our country is underexplored, with artisanal and small-scale miners, who often mine blindly, accounting for over 60% of gold deliveries to the country’s sole operating gold buyer and exporter, Fidelity Gold Refinery. This significant contribution underscores the untapped potential that awaits systematic exploration and investment.”

Rushwaya further assured potential investors of the Zimbabwean government’s commitment to creating a transparent and efficient mining sector.

“To create a more investor-friendly environment, Zimbabwe is undertaking significant regulatory reforms, including amendments to the Mines and Minerals Act, which will provide clear guidelines for foreign investors and protect their interests,” she said.

She also highlighted the wide range of incentives Zimbabwe offers to attract and retain investors, such as tax breaks, reduced royalties, and streamlined permitting processes. Rushwaya also emphasized the robust infrastructure development underway in Zimbabwe, which includes the construction of world-class roads, new railway lines, and upgrading airports.

“Our government is investing heavily in infrastructure to support mining activities, ensuring that investors have access to the expertise needed for successful ventures,” Rushwaya noted.

“Moreover, we are committed to sustainable mining practices that protect the environment and promote community development.”

Fidelity Gold Refinery, represented at the expo, also underscored its role in supporting the ASM sector, which accounted for approximately 67% of the total gold deliveries in July 2024. The presence of FGR alongside ZMF highlights the collaborative effort to elevate Zimbabwe’s position in the global gold market.

Zimbabwe gold buying prices per gram 7 August 2024

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Zimbabwe gold buying prices per gram 7 August 2024

Fidelity Gold Refinery (FGR) official gold buying prices/ gram. See the Zimbabwe gold buying prices per gram today 7 August 2024.

SG 90% and ABOVE US$72.81/g
SG ABOVE 85% BUT BELOW 90% US$72.04g
SG ABOVE 80% BUT BELOW 85% US$71.27/g
SG ABOVE 75% BUT BELOW 80% US$70.50/g
SAMPLE BELOW 10g BUT ABOVE 5g US$69.34g

Fire Assay CASH $73.19/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.

Mining Sector Dominates License Issuance in Q2 2024

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Mining Sector Dominates License Issuance in Q2 2024

In the second quarter of 2024, the mining sector emerged as the leader in license issuance, surpassing other industries. During this period, a total of 65 mining licenses were granted, amounting to a value of $282.74 million.

By Ryan Chigoche

Overall, the Zimbabwe Investment and Development Agency (ZIDA) issued 154 licenses across various sectors, with a cumulative value of $1.8 billion. Among these, the mining sector was one of the standout performers. This robust activity underscores the sector’s pivotal role in the country’s economic landscape and its continued appeal to investors.

In addition to new licenses, there were 138 license renewals during the reported period, valued at $450.3 million. This demonstrates not only ongoing investor confidence but also the mining sector’s crucial contribution to sustained economic growth.

Following the mining sector, the manufacturing industry issued 35 licenses, with the highest total value of $745.08 million. The sectoral breakdown showed the manufacturing sector leading with 41% of the projected investment value, closely followed by the energy sector at 35% and the mining sector at 21%.

These significant figures highlight the sector’s substantial investment potential, though it was the mining licenses that dominated in terms of issuance volume and importance.

The strong performance of the mining sector in Q2 2024 reflects growing interest in resource exploration and development, which is expected to drive further investment and economic benefits in the future.

In the reported quarter, there was an increase of 8% in licenses issued compared to Q1 2024, indicating that investors are embracing ZIDA’s DIY licensing platform. However, there was a notable dip in timely renewals during the same period. As of 30 June 2024, only 29% of the projects licensed in 2022 were still operational, which is concerning.

Commenting on the agency’s Q2 update report, CEO Tafadzwa Chinamo said they are working tirelessly to close this gap.

“This performance leaves much to be desired, and with effect from 1 July 2024, the recently developed MCE framework through our CRM system shall be used to close this gap and ensure that the time aligns with international best practices,” Chinamo said.

The report also highlighted significant inflows of capital equipment and foreign currency. Capital equipment from abroad totaled $670.50 million, up from $202.54 million in the previous period.

The projected value of projects processed through ZIDA’s Business Development by the end of the second quarter was estimated at $14.9 billion, exceeding the half-year target of $7.5 billion.

The majority of these projected values, around 87%, are driven by investment opportunities in Infrastructure Development ($8.2 billion), Energy ($2.2 billion), Mining ($1.3 billion), Agriculture ($0.86 billion), and Tourism ($0.5 billion) sectors.

The increase in the number of licenses issued, despite a slight dip compared to the same period in 2023, suggests a continued strong interest and investment in the Zimbabwean economy.

RioZim’s Murowa Diamond Production Declines Despite Early Gains in 2023

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RioZim’s Murowa Diamond Production Declines Despite Early Gains in 2023

Zimbabwe Stock Exchange-listed RioZim‘s diamond operation, RZM Murowa, reported a 3% decrease in production for the full year ending 2023, with output falling from 426,000 carats in 2022 to 414,000 carats in 2023.

By Rudairo Mapuranga

Despite this annual decline, the first half of 2023 showed a significant 84% increase in production, attributed to the newly commissioned 500 TPH plant, which boosted diamond output from 115,000 carats in the first half of 2022 to 212,000 carats in the corresponding period of 2023. However, challenges faced during the first quarter impacted the overall annual performance.

RZM Murowa’s efforts to maintain profitability have been supported by processing low-grade stockpiles and expanding exploration activities to extend the life of its pits. The company’s increased throughput and plant capacity have been critical to these operations, helping Murowa achieve a 20% production increase in the first quarter of 2023 compared to the same period in 2022.

RZM Murowa, which began operations in 2004, is a medium-scale diamond mine with a nameplate capacity of around 1.2 million carats annually. The mine is known for producing predominantly white, gem-quality diamonds, including large “special” stones.

At Murowa, a truck and backhoe method is used to extract ore from the three open pits. The waste is drilled, blasted, and trucked away using dump trucks. This leaves the ore available for extraction, which is then crushed, processed, and pumped to the final recovery plant.

Government to Approve a Number of EPOs

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Government to Approve a Number of EPOs

The government of Zimbabwe, through the Mines Affairs Board (MAB), will soon announce the approval or rejection of several Exclusive Prospecting Orders (EPOs) as part of its efforts to promote mining growth and development, Mining Zimbabwe has learnt.

By Rudairo Mapuranga

According to the Deputy Minister of Mines and Mining Development, Dr Polite Kambamura, several EPOs have either been approved or rejected, and the Mines Affairs Board will inform the applicants of the outcomes soon.

“EPOs undergo a vetting process, which includes steps such as interviewing the applicant. During this process, EPOs can either be approved or rejected. While some EPOs have been approved or rejected, I cannot disclose them at this time, as it is the duty of the Mines Affairs Board to inform the applicants first, in accordance with the law,” Dr. Kambamura said.

An EPO is a large area of ground designated for the exploration of specific minerals. In Zimbabwe, the maximum size is 65,000 hectares, with the minimum size determined by the company. An EPO’s tenure is three years, with an option for renewal for another three years.

EPOs are used by companies as initial exploration areas. After conducting technical exploration studies, companies may choose to release the EPO ground within three years.

How are EPOs Issued?

Large-scale exploration is conducted under licenses issued by the Head of State and administered by the Mines Affairs Board, as per the provisions of the Mines and Minerals Act [Chapter 12:05]. Two types of titles are issued for large-scale exploration depending on the mineral being explored: Special Grants (SG) for energy minerals such as Coal Bed Methane, natural gas, oil, and uranium, and EPOs for other minerals such as base metals, gold, and diamonds.

Why Are EPOs a Point of Contention?

Stakeholders in the mining industry are urging the government to expedite the approval or rejection of EPO applications. As long as an EPO is gazetted by the government, no miner can operate in the area, and the EPO applicant is also prohibited from exploring. This situation results in the land remaining “frozen” for both the EPO applicant and prospective miners.

“An EPO application freezes exploration ground for both the applicant and small-scale miners. No one can operate in an EPO application area that has been gazetted by the government, leaving the exploration ground frozen and inaccessible. This is counterproductive for the government’s goals,” said Geological Society Chairperson Kennedy Mtetwa.

“Production generally stagnates or declines because potentially mineral-rich exploration grounds that could lead to the development of new mines are not available to interested parties,” Geologist Patrick Takaedza told Mining Zimbabwe.

The Importance of Government Approving EPOs Within a Specific Timeframe

It is crucial for the government to approve EPOs within 12 months of application, as this would free up land for use and potentially lead to the discovery of new mines.

“The government needs to approve EPOs to facilitate exploration, which in turn leads to discoveries and mine development. This benefits both the government and local communities. Once an EPO is gazetted, stakeholder reviews and meetings should be completed within six months. The Ministry of Mines should also conduct proper due diligence on the applicant within 12 months. Therefore, EPOs should be issued or rejected within a 12-month period,” Takaedza said.

According to Mtetwa, Zimbabwe could learn from Australia, where exploration has led to massive gold production of over 300 tonnes per year, while in the 1980s, Australia and Zimbabwe produced similar amounts of gold.

“I have previously mentioned the lack of exploration due to the bureaucracy surrounding the approval of EPOs. Without large-scale exploration, new large-scale mineral deposits cannot be discovered. The CEO of Caledonia has stated that more gold could be discovered if exploration were to occur through the timely granting of EPOs. In the 1980s, Australia and Zimbabwe produced similar amounts of gold, but today Australia produces over 330 tonnes of gold per annum because they have been granting EPOs promptly since 1980, leading to the frequent discovery of world-class deposits. Meanwhile, Zimbabwe produces just 35 tonnes of gold per annum, a tenth of what Australia produces. This clearly shows that the Australian government is serious about growing mineral production; they don’t just talk, they act. In countries like Australia, Canada, Zambia, and Namibia, an EPO must be approved or rejected within six months,” Mtetwa said.

What Should Be Done About EPO Holders Who Do Not Undertake Exploration?

The government has been allowing EPO holders to complete their tenure, and even a second one, without any exploration taking place, leading to companies and individuals holding land for speculative purposes.

The Zimbabwe Miners Federation (ZMF) President, Ms Henrietta Rushwaya, stated that the government should expedite the granting or rejection of EPOs to facilitate production in reserved areas, as many areas where EPOs have neither been accepted nor rejected have remained idle.

She also urged the government to create and implement a policy that would allow small-scale miners to access mining claims held under EPOs for speculative purposes. This would enable artisanal and small-scale miners to peg and operate in areas that are currently inaccessible.

“The issue of EPOs has become a significant problem, as it affects the general populace. The government should be willing to accept or reject EPOs in the shortest possible time. If EPOs are rejected, the government should allow local Zimbabweans who wish to mine to have a moratorium of at least three months to peg and apply for land within the rejected EPO. This would enable local people to peg claims in areas within their communities,” Rushwaya said.

Zimbabwe gold buying prices per gram 5 August 2024

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Zimbabwe gold buying prices per gram 5 August 2024

Fidelity Gold Refinery (FGR) official gold buying prices/ gram. See the Zimbabwe gold buying prices per gram today 5 August 2024.

SG 90% and ABOVE US$75.03/g
SG ABOVE 85% BUT BELOW 90% US$74.24g
SG ABOVE 80% BUT BELOW 85% US$73.45/g
SG ABOVE 75% BUT BELOW 80% US$72.65/g
SAMPLE BELOW 10g BUT ABOVE 5g US$71.46g

Fire Assay CASH $75.43/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 Considers VFEX for Funding Gold Projects in Zimbabwe

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Kavango Considers VFEX for Funding Gold Projects in Zimbabwe

UK Stock Exchange-listed Kavango Resources is exploring a second listing on the Victoria Falls Stock Exchange (VFEX) to raise funds for developing its gold projects in Zimbabwe. This move will also provide local investors with opportunities to engage in the country’s mining sector activities.

By Ryan Chigoche

If successful, Kavango will become the sixth mining entity to list on local exchanges, joining Caledonia, Padenga, Rio Zim, and Bindura Nickel (currently suspended), alongside Hwange Colliery Mine.

This initiative aligns with calls from market experts urging authorities to enhance local bourses as attractive funding sources for Zimbabwe’s mining sector. Mining companies, on the other hand, are being called to consider dual listings, leveraging both local and foreign markets.

Currently, Padenga and Caledonia are listed on VFEX, while Bindura Nickel Corporation remains under trading suspension.

In a statement, Kavango highlighted that the listing on VFEX will offer Zimbabwe-based investors an opportunity to participate in its exploration and mining ventures.

“The proposed listing will enable local investors to engage in Kavango’s exploration and mining developments, expanding our capital pool and shareholder base, and supporting our strategic objective of enhancing local ownership in our projects,” said Kavango CEO Ben Turney.

“Our strategy emphasizes promoting local ownership to share in future successes. Despite being relatively new to Zimbabwe, Kavango has made significant strides in drilling and exploration activities, which we believe will attract further international investment into Zimbabwe.”

Recently, mining companies have been hesitant to list on local bourses due to perceived capital limitations and the investment climate. However, financial analyst Rufaro Hozheri told Mining Zimbabwe that local listing requirements are favorable, potentially encouraging more companies to consider listing.

In Zimbabwe, Kavango operates the Nara Gold Project, covering four historic mines near Bulawayo with cumulative production exceeding 90,000 ounces in the early 20th century.

The project includes extensive artisanal and historical workings, indicating substantial bulk mining potential. Magnetic surveying has identified a promising shear corridor along 5km within the Nara property, known for hosting significant gold deposits.

Previous workings in the area have produced 250,000 tonnes in tailings, which the company believes may contain some gold.

Zimbabwe’s local mining sector accounts for 13% of the country’s GDP, and the sector invested upwards of US$1.5 billion in capital projects over the past three years, with a further US$456 million lined up to boost production.

Caledonia’s Workforce and Supply Chain Drive Local Economic Growth, Promotes 100% Local Involvement

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Caledonia’s Workforce and Supply Chain Drive Local Economic Growth, Promotes 100% Local Involvement

Victoria Falls Stock Exchange-listed gold producer, Caledonia Mining Corporation, proudly reported that its entire workforce consists of Zimbabwean nationals, with 92 per cent of its 2023 procurement being sourced from Zimbabwean-owned companies, according to the company’s latest Environmental, Social, and Governance (ESG) report.

By Rudairo Mapuranga

Caledonia’s commitment to local empowerment is evident in its substantial reliance on Zimbabwean suppliers, aligning with the company’s philosophy of reinvesting in the communities where it operates.

“As a responsible corporate citizen and gold miner, we understand that our role goes beyond merely extracting ore and producing gold. We are dedicated to driving the transformation of Zimbabwe’s national mineral wealth to foster entrepreneurship and sustainable socio-economic upliftment within the local community and the broader Zimbabwean economy. To achieve this, we focus on building strong, trust-based relationships with our local and in-country stakeholders, localizing our workforce and supply chain, and making strategic community investments aimed at delivering skills development. In 2012, we donated 10% of our ownership in the Blanket Mine to a local community trust. These efforts help us secure and maintain our social license to operate,” Caledonia stated.

This localized approach extends to Caledonia’s employment practices, where the company takes pride in employing 100 per cent Zimbabwean staff. The company has further enhanced its commitment by compensating all employees in U.S. dollars and providing extensive safety training programs aimed at achieving zero harm within its operations.

“100% of employees at Blanket Mine are Zimbabwean. All employees are paid in U.S. dollars. All employees undergo safety training. We have also undertaken repairs to local roads,” the company added.

Caledonia’s focus on local procurement and employment not only strengthens its operations but also contributes significantly to the sustainable development of the Zimbabwean economy, demonstrating the company’s holistic approach to corporate responsibility.

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