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Commissioning of Binga Coal Mine Plant moved to July 31

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Commissioning of Binga Coal Mine Plant moved to July 31

Contango Holdings has announced the postponement of the commissioning of its coal mine plant in Binga. The formal opening ceremony, originally scheduled for this week and to be commissioned by President Mnangagwa, has been rescheduled to July 31 due to unforeseen circumstances. However, the delay will not affect the company’s operations, as production is already underway.

Contango has recently started production and is considered to be a transformative development in the region. The coal mine is expected to have a positive impact on job creation, community development, and downstream industries.

In a statement, Contango Holdings confirmed the new commissioning date and expressed its commitment to proceeding with its plans. The company also announced a new offtake arrangement with TransOre International FZE, a UAE-based entity managing global commodity supply chains. This new contract will replace the previous agreement with AtoZ Investments (Pty) Ltd and is priced at US$120 per tonne of washed coking coal.

Once steady production is achieved in the third quarter of the year, Contango Holdings expects its operating costs to be around US$45 per tonne of washed coal. The company is also exploring additional options to further reduce these costs and expects economies of scale with larger volumes.

The mining firm has been rapidly assembling machinery in recent months, facilitated by a successful £7.5 million fundraising in October last year. The coal mine plays a crucial role in the government’s plan to grow the mining industry into a US$12 billion industry by 2023, which aligns with Zimbabwe’s broader vision of becoming an upper-middle-income country by 2030.

The project is expected to create employment opportunities for locals, both directly within the mine and within downstream industries. Contango Holdings remains optimistic about the success of the coal mine and its contribution to the region’s economy.

Zisco to establish a comprehensive closure plan

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Zisco to establish a comprehensive closure plan

In an endeavour to ensure workers and stakeholders including communities are not affected by a sudden closure, Zimbabwe Iron and Steel Company (Zisco) is developing a comprehensive closure strategy that will see through all problems created by a sudden shutdown of the mining value chain company.

Rudairo Mapuranga

The company is looking at closure problems such as financial obligations (debt), environmental rehabilitation, legal affairs and social corporate responsibility expectations.

Mine closure planning involves planning effectively for the after-mining landscape that is all activities required before, during, and after the operating life of a mine that is needed to produce an acceptable landscape economically.

Mine closure planning has to be done at the starting point of the mining operations and needs periodic review and revision during its life cycle to cope with the market due to geotechnical constraints, safety and economic risks, social and environmental challenges.

Speaking to the Media on the sidelines of the Zisco Steel Media tour in Redcliff on Wednesday, the company body Chairman Engineer Martin Manuhwa said his company was working to establish a strategic and comprehensive closure plan that will ensure that stakeholders are not affected by an unplanned closure.

“Our approach is from cradle to cradle, so as we design the new systems, we must also have a demolition plan and recycling plan. As Zisco we believe in the circular economy where most of the scrap is recycled. There will be no waste as we go forward, we really believe in the circular plan and we will make a strategic and comprehensive closure plan after the feasibility study to ensure that mine closure minimally affects stakeholders,” Engineer Manuhwa said.

Engineer Martin Manuhwa said part of the closure strategy is to ensure that workers will not be owed money by the company after closure as was the case with the Shutdown of the iron mining, Steel manufacturing and value addition company.

It should be noted that planning for mine closure is a complex process because it encompasses the decommissioning project, land rehabilitation, post-closure monitoring, and the necessary provisions for future land management after the mining cycle is complete.

Closure plan development includes in-house specialists such as senior management, mine engineering, environment, external affairs, legal and financial staff. This internal team, frequently led by consulting specialists to assist in “workshopping” the risks and opportunities presented by integrated closure planning, can come out of the closure planning process with stronger working relationships and a better understanding of the business.

According to Kuvimba, Mining is expected to restart soon to create cash and revenue flows to power the resuscitation. Engineer Martin Manuhwa said the new investor is putting in over US$300 million to start rebuilding ZiscoSteel using modern technologies to produce high-grade steel.

The resuscitation of ZiscoSteel hinges on generating cash from mining operations and investing the proceeds to modernise and rebuild the steelworks. The strategy was accepted by experts as the most realistic way to timely revive the giant steel company

Zisco group chief executive officer Dr Engineer Farai Maronga said his company was a national asset whose revival was crucial to the country’s economy.

“Zisco is an integrated company that started from the mining of iron ore, manufacture of steel and value addition by Lancashire Steel. So the company covers the whole mining value chain showing that it’s pivotal for the country’s economic resuscitation,” he said.

Blow to Moti Group’s plans for Zimbabwe lithium plant as Chinese partner cuts stake

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Blow to Moti Group’s plans for Zimbabwe lithium plant as Chinese partner cuts stake

The Moti Group has said a Chinese company with which it planned to develop a $1 billion lithium processing plant in Zimbabwe is halving its stake in the venture, dealing the project a potential blow, News 24 has reported.

Moti Group’s Pulserate Investments holds a 10 000 hectare lithium exploration concession in the northeast of the country, Africa’s biggest producer of the metal, according to the US Geological Survey. Earlier this year Moti said it planned to have the Chinese company, which it didn’t identify, increase its stake in Pulserate to 70% and apply for an exemption to Zimbabwe’s ban on lithium ore exports while establishing a battery factory.

The company, “one of the largest Chinese battery manufacturers”, has instead exercised an option to cut its stake to 10% from 20%, Dondo Mogajane, Moti’s chief executive officer, said in a response to queries. Pulserate “is adjusting its plans in line with the changes introduced by the Zimbabwean government regarding lithium mining and processing conditionalities”, he said.

The decision is a setback to Zimbabwe’s plans to develop an industry that will process the metal, which is crucial to the battery storage and electric vehicle industries. Since the ban was announced in December, stockpiles of the material have built up at mines in the country and smuggling of the ore has increased.

Moti, which runs a platinum extraction business in South Africa, will now need to find another partner or raise the money itself to build a processing facility.

Mogajane is a former director general of South Africa’s National Treasury who has been tasked with restructuring the Moti Group as its founder, Zunaid Moti, steps back from active management.

Moti has been tied to a number of scandals and told Bloomberg this year that his reputation was hindering the company’s progress. He spent five months in a German jail in 2018 and 2019 after being arrested on an Interpol diffusion notice issued by Russia in connection with the alleged theft of a pink diamond. In 2012, he was charged with conspiracy to commit murder before the case was thrown out of court.

He is no longer subject to a notice from Interpol and said he was arrested improperly on bogus charges engineered by a disgruntled businessman.

Mogajane is the chairperson of South Africa’s Government Employees Pension Fund, which has R2.3 trillion under management. He’s also a board member at the New Development Bank, a multilateral lender founded by the BRICS group of countries.

Unki production increased 2 percent

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Unki production increased 2 percent

Despite mining through higher internal waste areas, platinum group metals (PGM) production at AngloAmerican-owned Unki Mine in Shurungwi increased by 2 per cent during the first half year compared to the same period last year, Anglo American Platinum Limited (Amplats) PGMs Production Report for the second quarter ending 30 June 2023 shows.

Rudairo Mapuranga

The mine’s total PGM production during the half year of 2023 was 121 500 ounces compared to 119 600 ounces produced during the period 1 January to 30 June of 2022.

However, Unki PGM production decreased by 11 per cent to 59,000 ounces against 66 300 ounces produced during the comparable period of 2022. The decreased production was a result of mining through planned higher internal waste areas.

The PGM also took a 6 percent decrease during the second quarter of 2023 compared to the first quarter of 2023 where production was at 62 500 ounces.

Amplats owns Mogalakwena Mine, Amandelbult Mine, Unki Mine, Mototolo Mine, Modikwa Mine (jointly owned) and Kroondal Mine (jointly owned).

The whole of Amplats PGMs sales volumes (from production, excluding sales from trading) decreased by 8 per cent to 1,108,700 ounces due to lower refined production.

According to Amplats CEO Natascha Viljoen, total PGM production from own-managed mines decreased by 10 percent to 526,700 ounces with PGM production from Amandebult mine decreased by 19 percent to 147,900 ounces for the quarter. This was driven by short-term operational challenges at Tumela which have since been mitigated, the 2022 closure of Dishaba open pit and Merensky concentrator and continued challenging ground conditions at Dishaba.

She said PGM production at Mogalakwena mine decreased by 7 per cent to 242,400 ounces. She added saying that in line with guidance, the company continued to mine lower grades which resulted in a 7 per cent reduction in 4E built-up head grade to a guided 2.70g/t compared to 2.91g/t in Q2 2022.

Viljoen said Mototolo PGM production increased by 2 per cent to 77,400 ounces, largely due to improved grade. She added saying that Eskom load curtailment deferred own managed mines metal in concentrate production by c.21,500 ounces.

“Our total PGM production was 9 per cent lower compared to the prior period. Production was impacted mainly by short-term operational challenges and infrastructure closures at Amandelbult as well as expected lower grades at Mogalakwena. Despite mining through higher internal waste areas, Unki continues to deliver a stable tonnes output along with Mototolo.

“We delivered lower refined production of 1,073,800 PGM ounces due to our planned asset integrity program at our processing operations.

“While we continued to manage heightened Eskom load-curtailment, it impacted 29 production days for the quarter contributing to a build-up in work-in-progress inventory of c.38,900 PGM ounces.

“We remain on track to achieve our 2023 guidance, with a strong focus on demonstrating our resilience through safe, stable, and capable operations for the remainder of the year,” Viljoen said.

Impala victorious in RBPlat bid battle

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Impala victorious in RBPlat bid battle

ZIMPLATS parent company, Impala Platinum (Implats), has emerged victorious in its battle for control of Royal Bafokeng Platinum (RBPlat) after rival company Northam Platinum sold its stake.

In January 2022, Implats made an offer to acquire all outstanding shares of RBPlat, but it faced delays due to Northam’s intention to make a counteroffer. However, Northam’s plans were terminated in April, allowing Impala to move forward with its bid.

The sale of Northam’s 34.5% holding will increase Impala’s stake in RBPlat to 91%. As a result, shares in Northam rose by 8.68% following the announcement. The transaction will see Northam receive 9 billion rand ($505 million) in cash and approximately 30 million Impala shares.

Johan Theron, the spokesperson for Impala, expressed that the sale represents a positive outcome for all parties involved. He stated that Impala’s focus now shifts towards integrating RBPlat into its operations and providing value for its shareholders. Moreover, with the sale of Northam’s stake, Impala now has a clear path to achieving 100% ownership of RBPlat. Their cash-and-shares offer remains open to any remaining investors.

RBPlat owns shallow and mechanized mines, which both Northam and Impala sought to control. These mines are strategically located next to Impala’s own aging and expensive deep-level shafts at the Rustenburg complex. The acquisition of RBPlat will enable Impala to integrate its assets and realize synergies.

Citigroup analysts believe that this deal will remove the investor overhang and further enhance Impala’s ability to maximize the potential of RBPlat. They anticipate that the acquisition will lead to the integration of RBPlat with Impala’s existing assets and the realization of synergies.

For Northam, selling its RBPlat stake could enable the company to pay dividends, implement share buybacks, reduce debt, and strengthen its balance sheet. Although the stake was sold at a loss, RMB Morgan Stanley analysts noted that the price Northam received was attractive due to the decline in platinum metal prices. Northam had originally acquired its RBPlat stake at an average price of 180 rand per share but will now receive 131 rand per share based on Impala’s latest share price.

Analysts also believe that selling the stake will resolve Northam’s balance sheet position and alleviate concerns during the platinum price downturn.

Overall, Impala Platinum’s victory in the battle for control of RBPlat and the subsequent sale of Northam’s stake have significant implications for both companies. Impala can now move forward with its plans for integration and maximizing synergies, while Northam can take steps to strengthen its financial position and benefit from the sale in the long run.

The Association of Mine Managers of Zimbabwe (AMMZ)

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The Association of Mine Managers of Zimbabwe (AMMZ)

The Association of Mine Managers of Zimbabwe (AMMZ) is a professional and representative body that brings together mine managers from various mining companies in Zimbabwe. The association aims to promote professionalism, skills development, and knowledge sharing within the mining industry in the country.

Founded 51 years ago, the AMMZ serves as a platform for mine managers to collaborate, exchange ideas, and address common challenges in the sector. It provides a forum for networking, capacity building, and continuous professional development. The association is an affiliate of the Chamber of Mines of Zimbabwe.

One of the key objectives of the AMMZ is to foster the highest standards of safety and health in mines. The association provides resources, training programs, and guidance to its members on best practices in mine management. By promoting a culture of safety and adhering to international standards, the AMMZ aims to reduce workplace accidents and ensure the well-being of mine workers.

Another crucial aspect of the AMMZ’s role is to support sustainable mining practices in Zimbabwe. The association recognizes the need to balance economic development and environmental conservation. It encourages its members to adopt responsible mining practices that minimize the negative impact on the environment, promote reclamation of land, and support biodiversity conservation.

The AMMZ also actively engages in industry research and knowledge sharing. It organizes seminars, conferences, and workshops where mine managers can learn from experts, share experiences, and stay updated on the latest trends and technologies in the mining sector. By fostering a culture of continuous learning, the association contributes to the professional growth and development of mine managers in Zimbabwe.

Overall, the Association of Mine Managers of Zimbabwe plays a vital role in the mining industry. It brings together professionals, promotes safety and health, advocates for sustainable mining practices, and facilitates knowledge sharing. Through its efforts, the association contributes to the growth, efficiency, and sustainability of the mining sector in Zimbabwe.

Popularly known as the technical arm of the Zimbabwe Mining Industry, the Association’s current President is Eng Elton Gwatidzo Deputised by Eng Abel Makura…

Zimbabwe gold buying prices 19 July 2023

TEPE
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Zimbabwe gold buying prices 19 July 2023

Fidelity Gold Refinery (FGR) official gold buying prices Wednesday 19 July 2023. See the Zimbabwe gold buying prices today.

SG 90% AND ABOVE US$60.00/g
SG ABOVE 85% BUT BELOW 90% US$59.37/g
SG ABOVE 80% BUT BELOW 85% US$58.73/g
SG ABOVE 75% BUT BELOW 80% US$58.10/g
SAMPLE BELOW 10g BUT ABOVE 5g US$57.14/g
FIRE ASSAY CASH US$60.32/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 about world market prices.

Karo Progress: Concrete Pour & Pilot Mining Launched

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Karo Progress: Concrete Pour & Pilot Mining Launched

Victoria Falls Stock Exchange-listed (VFEX) platinum mining company Karo Mining Holdings’ Karo Platinum project in Mhondoro remains on track with major milestones of the first concrete pour and pilot mining already commenced.

Rudairo Mapuranga

This was revealed by Tharisa plc Chief Executive Officer Mr Phoevos Pouroulis in Tharisa production results for the third quarter of Financial Year 2023.

Tharisa, the platinum group metals (PGMs) and chrome co-producer dual-listed on the Johannesburg and London stock exchanges, owns 85 per cent of Karo Mining Holdings which owns the Karo Platinum project.

According to Pouroulis first concrete pour at Karo was completed in June with the pilot mining having commenced.

“At Karo, we remain on track with project construction, completing our first concrete pour in June, with pilot mining having commenced. The equity contribution by Tharisa of US$ 135 million is being drawn down to match capital requirements with cash flow as we finalise the senior debt portion for this globally strategic mine,” he said.

According to Tharisa production results for Q3FY20231 and cash balance as at the quarter end, the Karo Platinum project is yet to record a lost time injury with 540 people on site, 99 of which are Karo employees and the balance being contractor employees.

The report said that the concrete foundation pouring was progressing well, with earthworks nearing completion for the pilot mining phase. Contractors and staff are onsite to commence operational tests. It also said that power line construction was expected to commence during this quarter.

“No LTI recorded on the project to date

  • 540 people on site, of which 99 are Karo employees with the balance contractor employees.
  • Concrete foundation pouring progressing well with earthworks nearing completion.
  • Pilot mining commenced with the contractor and staff onsite to commence operational tests.
  • Long-lead items manufacturing progressing as planned with the first major deliveries scheduled for Q4 calendar 2023.
  • Power line construction to commence this quarter” reads the report in part.

ZMF invites miners to interface with Indian Investors

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ZMF invites miners to interface with Indian Investors

The Zimbabwe Miners Federation (ZMF) is inviting miners to an interface meeting with Indian Investors in Harare from the 20th – 21st of July 2023, the organisation‘s Chief Executive Officer Mr Wellington Takavarasha has said.

Rudairo Mapuranga

According to Takavarasha, all Miners should prepare relevant mining documents and records for presentation to the team of investors.

“ZMF membership is cordially invited to an interface meeting with Indian Investors in Harare from the 20 – 21st of July 2023. Please urge members to prepare all relevant mining documentation and records for presentation to the Investors’ team.

Miners attending this interface meeting should confirm with our secretariat on the following number: 0773625224,” Takavarasha said.

The Indian Economic Trade Organisation (IETO) is making significant strides in expanding economic cooperation and development between India and Zimbabwe. Led by President Dr Asif Iqbal, the team of investors from IETO is eager to explore mining and commodity trading opportunities in Zimbabwe. This delegation is accompanied by esteemed members, including Hon Dr Chetna Ilpate, Mr Mohit Shrivastava, and others who bring a wealth of expertise and experience to the table.

Two individuals within this investment team have garnered substantial interest from the mining industry. Mr Mohammed Ali Kurumbathoor, Managing Partner-ASB Trading and Manufacturing, has a keen interest in solar power and is seeking to engage in the trading of key minerals. Recognizing the significance of these valuable resources in various industries, Mr Kurumbathoor aims to play a vital role in facilitating the trade and distribution of essential minerals. His dedication to both renewable energy practices and mineral trade showcases his commitment to progress and sustainability.

Mr Padmakumar Padmanabha Pillai, Managing Director of Whales International Service, brings an extensive background in business consulting and a strong interest in mining opportunities in Zimbabwe. Mr Pillai’s expertise lies in the supply of mining machinery, and he is eager to explore potential ventures in this sector within Zimbabwe’s market. Moreover, he is also motivated to delve into the realm of commodity trading with Zimbabwe. With a keen eye for business opportunities, Mr Pillai aims to establish fruitful partnerships that can contribute to the growth and prosperity of both nations. His dedication to identifying and seizing favourable prospects highlights his commitment to fostering economic cooperation and development between his company and Zimbabwe.

The presence of IETO’s investment team signals the ever-growing interest in Zimbabwe’s mining and commodity sectors. This delegation’s expertise, coupled with their dedication to progress and sustainability, bodes well for the future of economic cooperation between India and Zimbabwe. As the team explores various opportunities, it is anticipated that mutually beneficial partnerships will be forged, promoting growth and prosperity for both nations.

The Indian Economic Trade Organisation’s mission is not only focused on promoting economic ties between India and Zimbabwe but also on nurturing responsible business practices that prioritize renewable energy and sustainable development. With the expertise and dedication of Dr Asif Iqbal, Hon Dr Chetna Ilpate, Mr Mohit Shrivastava, Mr Mohammed Ali Kurumbathoor, and Mr Padmakumar Padmanabha Pillai, this delegation from IETO is poised to make a meaningful impact in the mining and commodity sectors of Zimbabwe. Their efforts will undoubtedly contribute to the growth and progress of both nations, fostering economic cooperation and sustainable development along the way.

Gold deliveries increase by over 23 per cent

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Gold deliveries increase by over 23 per cent

Gold deliveries by large-scale producers to the country’s sole gold buyer and exporter Fidelity Gold Refinery (FGR) increased by approximately 23.34 per cent in June 2023 compared to the same period last year, statistics from the country’s sole buyer show.

Rudairo Mapuranga

Total deliveries by the large-scale gold producers during the period January to June 2023 increased by approximately 0.4 per cent from 5498.4087 kgs delivered in 2022 to 5519.9795 kgs.

However, deliveries by Artisanal and Small-Scale Miners (ASM) decreased by 17.31 per cent to 8661.0463 kgs from 10474.1159 kgs.

Also, total deliveries by both the large scale and the ASM declined by approximately 11.22 per cent to 14181.0258 kgs from 15972.5246 kgs.

In June alone, large-scale producers delivered 1032.5263 kgs from 837.1151 kgs. While the ASM deliveries decreased by 13.5131 percent with 1702.0787 kgs delivered in June from 1968.0192 kgs delivered in June last year. June total deliveries also decreased 2.5 per cent to 2734.6047 kgs from 2805.1343 kgs delivered in 2022.

There is an urgent need for financial institutions in Zimbabwe to look for opportunities and ways to capacitate Artisanal and Small-Scale Gold Miners (ASGM) to ramp up production in the wake of heavy rains which saw deliveries by the miners decline by 18.2 per cent during the first 5 months of 2023 compared to the same period last year.

Artisanal and Small-Scale Miners last year accounted for over 67 per cent of gold deliveries to the country’s sole gold buyer and exporter Fidelity Gold Refinery (FGR). FGR General Manager Mr Peter Magaramombe attributed the improved contribution of small-scale producers to timeous payments to the miners by his organization.

Last year gold deliveries reached FGR’s target of 35 tonnes, the increase in deliveries is attributed to ASM whose deliveries increased by 30.3 per cent to 24.1 tonnes from 18.5 tonnes delivered in 2021. Deliveries by large-scale producers were approximately 11.2 tonnes in 2022 as well as in 2021.

Gold deliveries to FGR in the first quarter of this year (2023) plunged 20 per cent to 6.194 in the first quarter of the year from 7.694 tonnes in the same period last year.

“Gold output has declined for the first quarter ended March 31 2023 to 6.194 tonnes from 7.694 tonnes during the comparable period last year due to heavy rains during the first two months of the year,” FGR general manager Mr Peter Magaramombe said.

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