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ZIMPLATS Cuts Jobs

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ZIMPLATS Cuts Jobs

ZIMPLATS has released scores of workers from various departments of its mines as global platinum players move to cut costs amid falling prices.

The platinum miner follows other platinum players after profits slumped as metal prices plummeted over the past year due to weak auto production and concerns about a global economic slowdown.

Mimosa, the second biggest platinum miner recently released managers and supervisors in an attempt to lower its wage bill.

Platinum prices fell last year and are trading lower this year, threatening the profitability for miners of the metal despite persistently tight supplies.

More to follow…

 

African Development Banks likely to fund Zim’s $250 million gold mine

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African Development Banks likely to fund Zim’s $250 million gold mine

African development banks are seen as the most likely funders of Caledonia Mining Corporation’s planned $250 million gold mine in Zimbabwe, the mining company’s CEO Mark Learmonth told Reuters on Wednesday.

Caledonia, which already owns the Blanket gold mine in Zimbabwe, is updating a feasibility study ahead of the planned construction of a new mine at Bilboes to produce at least 170,000 ounces annually, making it potentially the country’s biggest gold mine.

The southern African country has significant mineral resources, including platinum group metals, gold, and lithium, but has struggled to attract investment due to economic instability and jitters over property rights after the government seized white-owned farms at the turn of the century. Caledonia, backed by investors including BlackRock and Cape Town-based fund manager Allan Gray, is one of the few foreign investors – along with Anglo American Platinum and Impala Platinum – to brave Zimbabwe’s tough economy marked by foreign currency shortages and episodes of hyperinflation.

The company is in preliminary talks with the “most likely lenders,” Learmonth said during a conference call.

“They are going to be African development banks who have indicated a high degree of interest in this project,” he said.

Learmonth said debt would form the bulk of the funding for the Bilboes project.

“We will not be approaching the market for any non-debt funding until we’ve got a better idea of what the debt capacity is because, frankly, nothing is going to be as cheap as debt funding,” Learmonth said.

He said once funding was in place, “optimistically” a year from now, construction of the mine would likely take two years after financial close.

Caledonia’s operating profit plunged 62% to $15.18 million in 2023, from $40.28 million a year earlier, mainly due to higher administrative and production costs.

Sishen and Kolomela Mines Achieve IRMA 75 Performance on Responsible Mining

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Sishen and Kolomela Mines Achieve IRMA 75 Performance on Responsible Mining

Anglo-American subsidiary Kumba Iron Ore’s Sishen and Kolomela mines, in South Africa, have been assessed against the Initiative for Responsible Mining Assurance’s (IRMA) comprehensive mining standard, achieving the IRMA 75 level of performance.

Patricia Rwafa

The IRMA 75 achievement level means that environmental resource management certification and verification confirmed that the operations at least substantially met all 40 critical requirements of the IRMA Standard, as well as at least 75% of the standard’s criteria in each of the four principal areas: social responsibility, environmental responsibility, business integrity, and planning for positive legacies.

According to Mpumi Zikalala, Chief Executive of Kumba Iron Ore:

“We are proud of our teams’ efforts and the outstanding progress made across both of our operations to promote responsible mining practices. As part of our commitment to leading in ESG practices, we are dedicated to delivering premium quality iron ore products that help to reduce carbon emissions in the steel-making process, while helping our customers meet the growing demand for responsibly sourced materials in an efficient and independently verified way. Through the IRMA assurance process, we have been able to evaluate our sustainability performance at Sishen and Kolomela mines, identify areas for improvement and ensure that we strive to adhere to the highest standards of responsible mining.”

Themba Mkhwanazi, Anglo-American’s Regional Director – Africa and Australia, said:

“We are pleased that Kumba is the first iron ore producer in Africa to complete the IRMA audit, providing stakeholders with a way of accounting for sustainability practices that is transparent, verifiable, and comparable. Launched last year, our digital traceability platform Valutrax™ is available to customers purchasing Anglo-American mined products, helping them to trace metals and minerals through a tailored selection of key provenance and sustainability indicators, including third-party assurance such as IRMA. The IRMA results demonstrate further progress on our Sustainable Mining Plan commitment of having all our operations undergo third-party audits against responsible mine certification standards by 2025. IRMA improves our ability to build an understanding of areas where we can continue to improve our ESG performance.”

In the same vein, Aimee Boulanger, Executive Director of IRMA, said: “Through detailed IRMA audit reports, mining companies, communities, and companies that purchase mined materials can gain the information they need to decide what’s going well — and what may require more attention — at specific mines. The Sishen and Kolomela reports demonstrate that these mines can point to transparent, independent evaluations of their environmental and social performance.”

The IRMA scoring system recognizes four levels of performance: IRMA Transparency, in which a mine is third-party-assessed and publicly shares its scores; IRMA 50, 75, or 100, signifying that a mine meets a core set of critical requirements together with at least 50%, 75%, or 100% of the requirements in each of the four sections of the Standard for Responsible Mining being met respectively.

IRMA’s Standard for Responsible Mining has been developed over a decade through a public consultation process with more than 100 different individuals and organizations, including mining companies, customers, and the ultimate downstream users of mined products, NGOs, labour unions, and communities, and is considered to be one of the most rigorous certification processes.

Tharisa Repurchases General Shares for US$5 Million

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Tharisa Repurchases General Shares for US$5 Million

Tharisa held its annual general meeting on February 21, 2024, where shareholders approved a special resolution authorising the Company to undertake a general repurchase of ordinary shares, up to 10% of the 302,596,743 ordinary shares in issue at the date of the AGM.

In a report released on March 26 by Paphos Cyprus, Tharisa was dual-listed on the Johannesburg and London stock exchanges. The Board believes that the Company’s shares are trading at a significant discount, having been negatively impacted by the PGM commodity price environment, while not reflecting the strong co-product contribution from its chrome sales.

The Company has appointed Peel Hunt LLP (‘Peel Hunt’) to manage and carry out on-market purchases of ordinary shares as principal on both the Johannesburg and London stock exchanges, up to a maximum amount of US$5 million (the “Repurchase Programme”) (excluding associated expenses). Tharisa is committed to capital discipline and believes that a share repurchase at its current valuation supports this.

According to Michael Jones, CFO of Tharisa, “We have maintained our strict capital discipline throughout the commodity cycles and believe it is opportune to allocate capital to a share repurchase program for the benefit of our shareholders. This reflects our firm belief in the prospects for our company. While the PGM commodity pricing environment is challenging, chrome prices have remained firm, reinforcing the strength of our co-product business model. The Karo Platinum Project is a multi-generational resource, and while maintaining capital discipline, we continue on the road to delivering the necessary third-party financing to bring the first phase into production.”

William Gambiza Appointed Hwange’s Acting Managing Director

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William Gambiza Appointed Hwange’s Acting Managing Director

Mining investment expert Engineer William Gambiza has been appointed Acting Managing Director of Hwange Colliery Company Limited (HCCL). This was effective from February of this year.

Rudairo Mapuranga

HCCL is currently undergoing reconstruction for the second time in two years and aims to utilize the vast experience of Eng Gambiza to transform the coal miner.

Eng Gambiza is an accomplished mining investment expert with 18 years of experience in mineral asset management and investment banking. He has held several senior positions in the mining industry and mining finance sectors.

Drawing on his experience as a mining analyst, Eng William Gambiza has developed competencies in mining-related business planning, management, valuations, modelling, economics, strategy, and transaction experience, including a unique and comprehensive understanding of the mining industry and a disciplined approach to investing based on fundamental analysis.

He joined Hwange Colliery Company Limited (“HCCL”) in November 2023 as a Consultant in business Restructuring and Development and was later appointed Acting Managing Director in February 2024. Prior to joining HCCL, he was the Chief Investments Officer – Metal & Mining for Unchartered Group. He also worked as the fund manager for Fidelity Gold Refiners (FGR). William started his career as a mining engineer with HCCL, after which he worked for other mining companies including Zambezi Gas where he served as a projects mining engineer and Marange Resources as the mining manager before migrating into mining private equity and venture capital space. He also serves on company boards, including Harare Quarry where he sits as the Vice Chairman.

Originally trained as a Mining Engineer, William holds a BSc Honours Degree in Mining Engineering, an MSc (Eng.) in Valuation of Mineral Assets, an MSc in Strategic Management, an Investment Banking Analyst (IBA) Program, and a Certified Business Valuation Analyst (CVA). He is currently studying for a PhD in Mineral Economics at the University of Zambia.

President to Commission Two Major Mining Projects Next Week

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President to Commission Two Major Mining Projects Next Week

President Emmerson Mnangagwa will next week officially commission the Pickstone Peerless Mine’s underground operations and Kamativi Mining Company (KMC) phase 1 processing plant.

Rudairo Mapuranga

The projects are projected to contribute significantly towards achieving the vision for the country to attain an upper middle-income economy by 2030.

President Mnangagwa will commission the Pickstone Peerless Underground project on Wednesday, 10 April 2024, and then move to commission the KMC phase processing plant on Friday, 12 April 2024.

Pickstone Project

To increase its gold output, Dallaglio Investment-owned mine, Pickstone Peerless Mine has transitioned from open-pit mining to underground mining where there are improved grades.

Pickstone Peerless indicative underground grades range between 3 to 5 grams per tonne, while the open-pit grades stand at an average of 1.8 grams per tonne. This will be an improvement in grades.

Due to the opening of the underground project, production at the mine has increased significantly with the mine together with Eureka Mine in Guruve producing a combined 210 kgs per month with a focus to increase to 230 kgs per month next year and eventually 250 kgs in 2025.

The mine, which currently averages 70 per cent gold recoveries, is looking to manage that through building three big CIL tanks to get maximum gold.

Pickstone will run as a hybrid mine up to June of 2024 and is building a new tailing facility to avoid a hazard on the current one, which is now about 25 meters. The expansion of the tailing facility has been approved by the Environmental Management Agency (EMA).

KMC Phase 1 Processing Plant

KMC has completed its first-phase processing plant and is constructing a second-phase processing plant. The first-phase processing plant will handle 300,000 tonnes and produce 50,000 tonnes of concentrate, with the second phase expected to handle 2.3 tonnes and produce 300,000 tonnes per annum. The company is looking to produce 350,000 tonnes of lithium concentrate next year.

More Gold-buying Centers boosting Deliveries

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More Gold-buying Centers boosting Deliveries

The move by Zimbabwe’s sole gold buyer and exporter, Fidelity Gold Refinery (FGR), to add gold-buying centres in the country is making a positive impact towards achieving set targets, FGR General Manager Peter Magaramombe has said.

Rudairo Mapuranga

According to Magaramombe, the establishment of new centres in the last five years has led to an increase in deliveries.

In 2022, under Magaramombe’s leadership, FGR established two gold centres, leading to the achievement of the country’s gold production target of 35 tonnes, with FGR buying 35.6 tonnes during the year. However, deliveries decreased by 25 per cent in 2023 to 30.1 tonnes attributed to excessive rainfall in the first quarter of the year.

“We have a total of 17 gold buying centres now, we added five in the last five years, from 12. The new centres are contributing very close to set targets,” Magaramombe said.

The FGR General Manager said FGR has implemented the Gold Development Initiatives Fund (GDIF) and mobile buying units to enhance the delivery of gold.

“We are paying top prices benchmarked to the London Bullion Market Association. We also have the Gold Development Initiatives Fund to assist the artisanal and small-scale miners to increase their gold output as well as increasing the number of gold buying centres, mobile gold buying units to cover gold rushes, elution plant monitoring to plug gold leakages, and gold buying agents to cover areas where FGR does not have reach,” Magaramombe said.

Hwange in Over US$10 Million in Profit

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Hwange in Over US$10 Million in Profit

Coal producer Hwange Colliery Company recorded a US$10.2 million profit before tax during the quarter ended 30 September 2023, as stated by the company’s Administrator, Eng Munashe Shava, in a trading update for the quarter.

Rudairo Mapuranga

Hwange Colliery, in 2022, was placed under reconstruction for the second time in two years to revive the miner who has been plagued by financial losses.

According to Shava, despite coal sales dropping, the company still managed to achieve profits during the quarter ended 30 September 2023. This was due to efficient machinery acquired during the first quarter of 2023.

“The sales prices for coal dropped slightly for the quarter ended 30 September 2023. The input costs remained relatively constant, thereby affecting the company’s profits. However, the company performed fairly well during this quarter, with unaudited profit before tax amounting to US$10.2 million, better than the previous year’s.

“The company’s performance during this quarter was significantly better, with both production of 989,503 tonnes and sales of 911,245 tonnes almost doubling from last year’s performance, mainly due to efficient and effective machinery acquired during the first quarter of 2023,” Shava said.

The company realized 911,245 tonnes in sales in the third quarter, with Hwange Power Station coal (“HPS”) accounting for 48%, raw coal 39%, Hwange Coking Coal (“HCC”) 1%, and Hwange Industrial Coal (“HIC”) 12% of the total sales. During the same period last year, the company sold 388,487 tonnes comprising HPS 7%, raw coal 55%, HCC 6%, and HIC 32%. Contaminated coal sales accounted for 8,143 tonnes (2022: 25,309 tonnes) in the same period.

For the nine months to 30 September 2023, the company realized 2,795,303 tonnes (2022: 1,060,976 tonnes) in sales, with HPS accounting for 43%, raw coal 39%, HIC 17%, HCC 1% (2022: HPS 9%, Raw coal 48%, HCC 8%, and HIC 35% of 1,060,976 tonnes). Contaminated coal also amounted to 30,229 tonnes (2022: 71,933 tonnes). Sales improved from 1,060,976 tonnes for the same period last year to 2,795,303 tonnes, achieving a positive change of 163%. The positive change is attributed to a doubling of production as well as an increase in marketing efforts to sell off the mined coal.

The company aims to stop underground mine production for the next six months to prevent the loss of mined coal through spontaneous combustion, as production exceeds sales. The quantity of mined coal is deemed sufficient to meet the operating needs of the company.

Unlocking Potential: ZMF to Empower Miners with Equipment

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Unlocking Potential: ZMF to Empower Miners with Equipment

The Zimbabwe Miners Federation (ZMF) is gearing up to revolutionise the artisanal and small-scale mining sector with its upcoming Mining Mechanization and Symposium launch in Midlands Province on the 22nd of April 2024 at Pote Hotel in Midlands.

Scheduled to take place in the heart of Zimbabwe’s mining region, the event promises to be a game-changer for small-scale miners who often face barriers to accessing modern equipment and machinery to increase their output.

Speaking to Mining Zimbabwe, ZMF Chief Executive Officer Mr Wellington Takavarasha said the mining body will distribute essential equipment to its members who struggle to get support from financial institutions.

“At the forefront of the initiative is the distribution of essential mining equipment aimed at empowering our artisanal and small-scale miners members. We plan to distribute a range of machinery including compressors, dewatering pumps and electronic vehicles. We will also be introducing a credit facility option to facilitate access to this equipment, particularly for our members who struggle to secure loans from traditional financial institutions such as banks,” Takavarasha said.

The introduction of mechanization in the small-scale mining sector is poised to bring about several significant benefits to the organisation’s members.

Firstly, it will enhance operational efficiency, allowing miners to increase productivity and output. With access to modern equipment, miners can streamline their operations and optimise resource utilisation, ultimately leading to improved profitability.

Furthermore, the availability of essential machinery through a credit facility option addresses a longstanding challenge faced by many artisanal and small-scale miners – limited access to financing.

According to the ZMF Midlands Chairman Mr Makumba Nyenje, stringent expectations from financial institutions have for years hindered the growth of the ASM sector and the mining body is playing its part to level the playing field.

“Traditional financial institutions often impose stringent requirements that small-scale miners struggle to meet, hindering their ability to invest in modern equipment. Most banks and financial institutions require home title deeds to issue out loans, which may be out of range for most miners. By offering a credit facility, the ZMF is levelling the playing field and empowering miners to access the tools they need to boost production,” Nyenje said.

As Zimbabwe’s mining industry continues to evolve, initiatives like these play a crucial role in driving progress and unlocking the full potential of artisanal and small-scale mining operations.

ZMF’s commitment to empowering miners and promoting sustainable development underscores the importance of collaboration and innovation in shaping the future of the mining sector.

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