Home Blog Page 263

Mapinga Mines to Energy Industrial Park Construction Begins in June

Mining
-
0
Mapinga Mines to Energy Industrial Park Construction Begins in June

In an endeavour to ensure the country benefits from the green revolution by beneficiating and value-adding the country’s minerals, especially lithium, the government has announced that construction for Phase 1 of the Mapinga Mines to Energy Industrial Park will commence in June.

The Mapinga Mines to Energy Park aims to bridge the gap between beneficiation and value addition by creating a manufacturing industry for commodities like lithium batteries, electric vehicles, and others.

This industrial park is a lithium value addition and beneficiation project that will include the construction of a coking plant with a capacity of 1.2 million metric tonnes of coke and 130,000 metric tonnes of lithium salt per annum. Additionally, it will involve the construction of two 300-megawatt power stations, a graphite processing plant, a nickel-chromium alloy smelter, and a nickel sulfate plant, supported by power supply and logistics.

According to Minister of Information, Honorable J. Muswere, Cabinet was briefed by Vice President Retired General Constantine Guvheya Chiwenga, Chairman of the Inter-Ministerial Committee on the Establishment of the Mines to Energy Industrial Park in Mapinga. He stated that the industrial park, spanning over 500 hectares, will be implemented in phases, with Phase 1 set to begin in June 2024. The government will hold a shareholding in the project.

“Honorable C.G.D.N. Chiwenga briefed Cabinet as Chairman of the Inter-Ministerial Committee on the Establishment of the Mines to Energy Industrial Park in Mapinga. The industrial park, covering 500 hectares, will be implemented in phases, with Phase 1 scheduled to commence in June 2024. The government will have a shareholding in this project,” said Hon. Muswere.

Prospect Acquires 85% of the advanced copper-cobalt project in Zambia

Mining
-
0
Prospect Acquires 85% of the advanced copper-cobalt project in Zambia

Prospect Resources Limited has acquired an 85% interest in the Mumbezhi Copper Project in Zambia, solidifying its position in the battery and electrification mineral sector in Africa.

Patricia Rwafa

Managing Director and CEO Sam Hosack highlighted the significance of this acquisition, emphasizing the project’s potential for a world-class, long-life, open-pit copper-cobalt operation.

Under the agreements, Prospect will pay approximately US$5.5 million in cash and US$1 million in scrip to Global Development Cooperation Consulting Zambia Limited (GDC) for the acquisition. Additionally, Prospect will settle approximately $1 million in scrip plus options to Orpheus Uranium Limited (ORP) for select exploration costs on Mumbezhi, aiming to withdraw all legal claims and gain access to historical geological and mining data.

Hosack expressed optimism about the project’s prospects, citing the extensive drilling completed by ORP and the favorable metallurgy in the region. He noted Zambia’s strong history in the resources sector, particularly for copper, highlighting the existing infrastructure and government support.

The Mumbezhi Copper Project is strategically located near established copper mines like Sentinel and Kansanshi, providing Prospect with a well-capitalized opportunity to advance exploration rapidly. Hosack indicated that this acquisition aligns with Prospect’s strategy to diversify its portfolio amid subdued lithium markets, positioning Mumbezhi as a potential flagship project with substantial exploration upside.

Commenting on the development, Prospect’s Managing Director and CEO, Sam Hosack said,

“The purchase agreements we have struck for the highly prospective Mumbezhi Copper Project which includes the Nyungu deposits, represent a significant milestone, which extends our reach into the battery and electrification mineral sector in Africa,”

‘The Nyungu deposits have all the potential ingredients of a world-class, long-life, open pittable, copper-cobalt mining and processing operation, with regionally favourable metallurgy and significant exploration upside. Zambia is also a leading jurisdiction to explore and develop mining operations in sub-Saharan Africa, having a long-standing history in the resources sector, particularly for copper. I personally have spent over five years in this part of Zambia during my career and have firsthand experience of the excellent infrastructure and strong support from both the government and community, with major companies like Barrick Gold, First Quantum Minerals and KoBold Metals already calling it home,”

The Project also offers excellent potential to deliver significant new, high-value copper-cobalt discoveries. Subject to the satisfaction of all relevant conditions precedent, this acquisition is set to deliver a high-quality, advanced copper exploration play into our portfolio – which is an exciting proposition.”

“The timing of this push into copper is ideal as markets for lithium remain subdued. Our current drilling program at Step Aside is nearing completion and the acquisition of 100% of Omaruru gives us much more flexibility with cash spend, allowing a real focus on aggressively drilling Mumbezhi. We remain committed to our strategy and think the long term potential of lithium remains robust but we are excited to add copper to our portfolio as it provides diversification and this new project holds the potential to rapidly develop into the flagship project we have been seeking.”

ZiG gains 0.2% to 13.53 per US dollar

Mining
-
0
ZiG gains 0.2% to 13.53 per US dollar

Less than a week after its launch, the Zimbabwe Gold (ZiG) has gained against the United States Dollar by 0.2%, making it one of the strongest currencies in Southern Africa.

The ZiG currency is expected to address the country’s currency woes, which have persisted for the past 25 years.

Last week, the country’s central bank introduced the new gold-backed currency in an attempt to tame price gains that reached a seven-month high of 55% in March.

This is the country’s sixth attempt at creating a new currency since 2008. The Zimbabwe dollar — the currency most recently used by the country — has depreciated by 80% this year alone.

There has been so little confidence in Zimbabwe’s local currency that about 80% of the country’s population transacts in the US dollar.

On Thursday, Zimbabwe’s central bank governor, John Mushayavanhu, said the country has real gold and mineral assets to back up the new ZiG currency. Mushayavanhu mentioned that Zimbabwe’s central bank holds 2.1 tons of gold and other assets, including diamonds, equivalent to 0.4 tons of gold.

The ZiG started trading on Monday at an exchange rate of 13.56 to the dollar, set by the central bank. The gain in the ZiG was a result of the increase in gold prices.

Gold deliveries decrease over 2%, LSM overtake ASM

Mining
-
0
Gold deliveries decrease over 2%, LSM overtake ASM

Gold deliveries to the country’s sole buyer and exporter, Fidelity Gold Refinery (FGR), decreased by 2.41 per cent during the first quarter of 2024 compared to the same quarter of 2023, due to increasing operational costs.

The deliveries closed the first quarter of 2024 at 6,044 kg, lower than the 6,194 kg in the first quarter of 2023, and significantly below the 7,694 kg delivered in the first quarter of 2022, a record-breaking year.

Large Scale Miners (LSM) delivered 51.995 per cent (3,143.0683 kg) of the total deliveries (6,044.8689 kg), overtaking Artisanal and Small-scale Miners, who delivered 48.004 per cent (2,901.8006 kg).

Deliveries decreased by 24 per cent compared to the record year of 2022 during the same quarter, which saw 7,694 kg delivered. The deliveries also dropped by 27 per cent in March 2024 compared to 1,816 kg from 2,403 kg in March 2022.

The LSM delivered 1,045.5575 kg in March, with the ASM delivering 770.9838 kg, totalling 1,816.5413 kg.

Zimbabwe’s gold deliveries fell by 15% in 2023 as the industry felt the impact of rising costs, power shortages, and the government’s currency policy.

Deliveries to the official gold buyer, Fidelity, ended the year at 30.1 tonnes, down from 35.6 tonnes in 2022. The 2022 haul was a record, driven by new mining projects at larger producers and better payments to small-scale miners, who account for the bulk of Zimbabwe’s gold deliveries. However, sales slowed in 2023.

Gold output has plateaued for large producers. They delivered 11.4 tonnes, showing little growth from the 11.2 tonnes they delivered in 2022, the same amount of gold they delivered in 2021. Small-scale producers delivered just 18.6 tonnes in 2023, a sharp drop of 23% from the 24.1 tonnes they sold in 2022. Deliveries from small miners are now back to where they were in 2021.

Kavango’s Nara tailings dump Maiden 5,860/oz indicated Gold Resource

Mining
-
0
Kavango’s Nara tailings dump Maiden 5,860/oz indicated Gold Resource

London Stock Exchange-listed Southern Africa-focused metals explorer Kavango Resources plc announced that it received a maiden Resource Estimate of 5,860 ounces for its tailings dump at the Nara Gold Project in Zimbabwe.

The Resource Estimate highlights the potential for the tailings dump to provide Kavango with a significant near-term source of gold production and early, non-dilutive free cash flow.

The Resource Estimate concludes that the two Nara tailings dumps tested together contain an Indicated Mineral Resource of 293,000 tonnes at an average of 0.62 grams per tonne of gold, totalling 5,860 ounces of gold contained, and an inferred resource of 11,900 tonnes at 0.66 g/t gold, totalling 253 ounces of gold contained.

According to Kavango CEO Ben Turney, 96 per cent of the Mineral Resource has been categorized as Indicated, thus placing it into a relatively high resource category for the early stage of the project, demonstrating confidence in the continuity of the material with future extraction costs operational, with no mining required.

Turney said the Mineral Resource Estimate also identified upside potential at the tailings dump, highlighting the opportunity to increase tonnage at as-yet-untested depths.

He said Kavango is now assessing options to commercialize the gold in the Nara tailings dump with the company planning to use free cash flow generated by any tailings production to advance its wider exploration activities targeting large-scale, bulk-mineable metal deposit discoveries in Zimbabwe.

“This Maiden Resource Estimate for gold for the Nara tailings dumps is the first Mineral Resource Estimate Kavango has delivered. It’s a milestone moment for our company and reflects the speed at which we are growing in Zimbabwe.

“Given that this is a tailings dump, all material has already been mined and there are no further mining costs. The Resource Estimate and high resource category achieved underline the commercial potential at Nara. While our primary objective is to discover larger-scale, bulk mineable gold deposits, the 6,000 ounces of gold in the main tailings dump present an early opportunity for commercializing this project.

“The free cash flow we could generate from processing the gold in the Nara tailings can help fund both our development of this project and our wider exploration across Zimbabwe’s highly prospective, under-explored greenstone belts.

“We will now commence metallurgical test work to optimize plant design to enable future gold production,” The Kavango CEO said.

Zimplats Invests Over Half a Million to Preserve Water

Mining
-
0
Zimplats Invests Over Half a Million to Preserve Water

The country’s biggest platinum group metals (PGM) producer, Zimplats, invested US$580,000 to implement water stewardship, reduce freshwater withdrawals, enhance recycling, and continuously improve water use efficiency to prevent pollution.

“Water is a vital resource for our operations and the communities around them. Water management is critical as our Southern African sites are in water-scarce areas.

“We reduce freshwater withdrawals, enhance recycling, continuously improve our water use efficiency, prevent pollution, and support host communities,” Zimplats said in a statement earlier this year.

Through its US$580,000 investment, the group has embarked on the following projects:

  • Extension of the Chitsuwa pipeline to reduce water losses and unauthorized abstraction. The pipeline was commissioned this year.
  • Implementation of the Turf sewage water recycling project, which will avail an additional 2,160 Ml of recycled/reused water and assist Zimplats in reducing freshwater intake.
  • Conducted a catchment area study evaluating potential dam sites based on yield and risk.
  • Continued engagement with stakeholders and advancement of studies into potential water recycling and water efficiency projects.

James Mufara Joins Caledonia Mining as COO

Mining
-
0
James Mufara Joins Caledonia Mining as COO

Caledonia Mining Corporation Plc has announced that James Mufara has joined the Caledonia group as Chief Operating Officer, effective May 1, 2024.

Mark Learmonth, Chief Executive Officer of Caledonia Mining, said he is looking forward to working with James Mufara considering the experience he has in developing the company within the mining industry.

“I am delighted James will soon be starting his new role at Caledonia. He will be joining us at a pivotal moment in Caledonia’s development, and I know the team will benefit from his wealth of experience. I very much look forward to working with him.”

James Mufara commented, “I am excited to be joining Caledonia and look forward to working with the talented team to drive operational performance across the group’s high-quality portfolio.”

James (49) was previously employed at Harmony Gold Mining Company Limited, where, as Regional General Manager, he headed a complex portfolio of operations consisting of five mines and 15,000 staff, mining 450koz of gold per annum.

James has over 25 years of experience in the mining sector in Southern Africa, including 13 years in leadership roles. His career has been primarily gold-focused, but he also has exposure to nickel, copper, and chrome mining.

His experience includes deep-level underground mining and open-pit operations, which is relevant to the existing underground operation at Blanket Mine and Caledonia’s development projects at Bilboes and Motapa, which will be open-pit. He holds a BSc in Mining Engineering and an MBA.

JCMZ vows to reduce operations costs, promote SHE issues

Mining
-
0
JCMZ vows to reduce operations costs, promote SHE issues

The Junior Chamber of Mines of Zimbabwe (JCMZ) has vowed to reduce operational costs and promote safety, health, and environmental (SHE) issues within the medium-scale mining industry.

Speaking at the association’s first quarterly meeting in Gweru on Friday, JCMZ President Mr Brian Samuriwo stated that they would implement measures to lower the cost of conducting business while emphasizing safety, health, and environmental concerns.

Samuriwo explained that JCMZ plans to introduce mechanization models to increase mineral output and production efficiency at reduced costs. Additionally, the organization will actively seek SHE training initiatives for the medium-scale sector and encourage responsible mining practices among miners to adhere to set standards.

He emphasized JCMZ’s commitment to addressing workers’ welfare, and ensuring fair treatment of employees within the industry.

Mr. Samuriwo outlined key focus areas stating, “We are committed to reducing the cost of doing business in the mining sector by establishing local mechanisms through JCMZ committees. This includes optimizing mining consumables, equipment, machinery, ensuring fair labour practices, and prioritizing employee welfare.”

“We must operate as professional and organized miners and understand the cost implications of our business. This is why we have established the Committee of Safety, Health, Environment, and Training, led by the Zimbabwe School of Mines, to conduct technical mining visits and facilitate mutual learning and development,” Samuriwo added.

He further advocated for the establishment of a miners’ bank aimed at financing the mining industry, particularly the medium-scale sector, through crowdfunding initiatives involving medium-scale miners and stakeholders.

Samuriwo stressed the importance of financial sustainability within the mining sector, asserting, “We need to establish a miners’ bank to support our operations. We must crowd-fund and finance ourselves to ensure liquidity within the Junior Chamber. The Reserve Bank of Zimbabwe, Fidelity Gold Refinery, and banks will witness the positive initiatives led by JCMZ.”

He urged equipment and consumable suppliers to innovate and develop local solutions to reduce the mining sector’s significant import bill.

“The mining sector currently bears the highest import bill of USD$3 billion, which we aim to reduce by 20% in the short term. I urge local industries to collaborate with JCMZ and leverage opportunities within the mining value chain,” Samuriwo concluded.

About The Junior Chamber of Mines Zimbabwe (JCMZ)

is the primary advocate for medium-scale miners in Zimbabwe. It operates as a member-funded, not-for-profit organization representing the interests of medium-scale miners and advocating on their behalf. JCMZ’s membership includes medium-scale miners, suppliers of machinery, spare parts, and chemicals, as well as service providers such as banks, insurance companies, consulting experts, engineers, and other mining-related professionals.

JCMZ plays a vital role in policy development affecting the sector, promoting its value within the mining community, and facilitating collaboration among members and stakeholders. The organization aims to provide a unified voice for medium-scale miners, ensuring their priorities are understood and supporting their role as key drivers of Zimbabwe’s mining economy. JCMZ also serves as an incubator for developing medium-scale miners who may transition into large-scale operations under the Chamber of Mines Zimbabwe (CoMZ).

Falling PGM prices puts Thousands of Jobs on the line

Mining
-
0
Falling PGM prices puts Thousands of Jobs on the line

The global platinum mining industry is facing significant challenges amidst a period of declining prices, leading to widespread job losses across various critical roles within mining operations.

The effects of these job losses extend beyond the individuals directly affected, impacting families and the broader economies.

According to Zimplats’ Directors’ Report and Condensed Consolidated Interim Financial Statements (Reviewed) for the half-year ended 31 December 2023, the company made a post-tax loss of US$8.8 million, down from a profit of US$159.6 million, marking a 105% loss in earnings.

Zimplats’ pre-tax profit also decreased by 94% from US$221.5 million to US$14.2 million.

Of the six platinum group minerals that Zimplats produces, the biggest price losses were in palladium, which fell 42%, and rhodium, down 70%. Platinum suffered a 1% decline, while ruthenium decreased by 11%. Gold and Iridium were positive, with Iridium posting a 24% increase, while gold increased by 13%.

Jobs loses at ZIMPLATS

ZIMPLATS has now resorted to cutting jobs after initially offering voluntary retrenchment packages in a bid to protect the miner from the impact of a sharp fall in platinum group metal (PGM) prices.

Some of those who have lost their Jobs include Projects, Transport, Contracts Managers, SHEQ (Safety, Health, Environment, and Quality), Geologists, Resource Evaluation Specialists, Training Instructors, Development and Training Officers, HRD (Human Resources Development) Managers, and Materials Managers Departments among others.

Job losses in South Africa and Zimbabwe

Amplats

Anglo-American Platinum (Amplats) plans to cut 3,700 jobs in South Africa. This is in a bid to reduce costs and turn around fortunes for one of the company’s most troubled divisions.

Recently, the company said it would reduce its workforce by almost a fifth, after a 71% fall in annual profitability following a sharp drop in platinum group metal prices. The company also said it was planning to review contracts with 620 service providers, which could mean an even larger number of cuts which will affect the entire value chain.

Amplats CEO Craig Miller said the job cuts would have a “socio-economic impact”, adding that it was “important to understand that this has been a decision taken as a last resort for the company.

The group’s earnings fell to R14bn, from R48.8bn in 2022.

Anglo owns Unki mine. So far no price slump-related jobs have been cut at the Shurugwi mine.

Sibanye-Stillwater

Sibanye said that it could restructure lossmaking PGM mines including potentially shutting them down which will cost more than 4,000 jobs. Sibanye owns 50% of Zvishavane-based Mimosa Mine with the other 50% belonging to Implats which owns ZIMPLATS.

Mimosa recently undertook a significant workforce reduction, retrenching 33 managers and supervisors due to a persistent 35% decline in metal prices since April 2023. In response to the challenging market conditions, nine of the affected employees opted for early retirement, while 24 chose voluntary separation packages, as detailed in a company statement released on the 5th of February 2024.

“In response to these challenging market conditions, we have implemented several measures to ensure the viability of our business in the low-price metal environment. These proactive steps include capital expenditure curtailment, cost reduction initiatives, and cash conservation efforts,” the company said.

Implats

ZIMPLATS’ parent company Impala Platinum earlier this year said profit plunged 88% in the first half of its current financial year, and reported much lower earnings because of softening prices in the PGMs.

The miner announced that basic earnings dropped to R1.6 billion in the six months through December.

CEO Nico Muller joined a chorus of mining CEOs warning that more job cuts are imminent as reducing costs becomes a strict requirement to keep the industry afloat. This has now become a reality at its Zimbabwean unit, ZIMPLATS. Muller told eNCA that if Implats cannot reduce its costs, the miner risks undergoing significant restructuring or absolute closure.

Zim introduces another new currency, the”ZiG”

Mining
-
0
Zim introduces another new currency, the”ZiG”

The new Reserve Bank of Zimbabwe (RBZ) governor Dr John Mushayavanhu today unveiled the new structured currency, the “ZiG”.

Patricia Rwafa

Addressing the country, Mushayavanhu said the ZiG is a “structured currency”. He said unlike typical fiat money, the ZiG will not rely solely on the government trust, instead, it will be supported by a concrete asset, like the gold reserves that were recently presented to President Mnangagwa by the RBZ.

The new currency will replace bond notes, which have been in freefall since 2019, losing 800% of value against the United States dollar in 2023 alone.

“Denominations of such would be similar to any other fiat currency meaning ZW$1, ZW$2, ZW$5, ZW$10, ZW$50, ZW$100, ZW$200, and others. The RBZ can call them structured currency or ZiG, a name they have already been using (Zimbabwe Gold).

According to John Mushayavanhu, dividing the current ZWL rate by today’s gold price of 1 ZiG is just US 6 cents. Meaning USD1 is Approximately 17 ZiG.

Starting Monday, all Zimdollar balances will be converted to the new gold-backed ZiG currency at Z$1=13.5686 ZiG.

“With effect from today, banks shall convert the current Zimbabwe dollar balances to ZiG. Zimbabweans have 21 days to exchange ZWL notes for ZiG.

“I don’t believe in taking people’s money. The ZiG will circulate with other currencies in the basket,” he said.

Meanwhile, street money changers in Westgate, Harare were not optimistic about the new currency labelling it “the usual”.

“We have seen this so many times and in no time this new currency will follow suit. Within a month the rates will be different from the ones announced,” one money changer said.

The new ZiGs will be backed by foreign currency and by gold reserves, meaning the currency is tied to the value of a specific amount of gold.

1...262263264...733Page 263 of 733