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Invictus, Mbuya Sign a 500MW Gas to Power Plant MoU

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Invictus, Mbuya Sign a 500MW Gas to Power Plant MoU

Australia Stock Exchange-listed oil and gas exploration junior Invictus Energy Limited has executed an updated Gas Supply MOU with Mbuya Energy (Mbuya) for the supply of gas to their proposed 500 MW Gas to Power project, Invictus CEO and Managing Director Scott MacMillan said.

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Mbuya is a Zimbabwean consortium led by IPP developer Tatanga Energy (“Tatanga”). The consortium, which includes existing Invictus’ institutional shareholder Mangwana Opportunities Fund, is seeking to develop a 500MW Gas to Power project.

The updated MOU builds on the previous non-binding memorandum of understanding (MoU) with local energy firm Tatanga Energy (Private) Limited for a 500-megawatt (MW) ‘Gas to Power Plant’ estimated to cost about US$800 million.

According to MacMillan, the plant can be expanded in future phases to up to 1,000MW (equating to a forecasted demand of approximately 1.4 trillion cubic feet of natural gas over 20 years). The updated MOU will see the parties work together to assess the feasibility of developing the project utilizing gas produced from the Mukuyu field or any other field developed in the Cabora Bassa project.

“Signing this MOU with Mbuya Energy to develop a 1,000MW Gas to Power project is another significant step forward in our early commercialization strategy as we look to progress the Cabora Bassa project following our gas discovery at Mukuyu.

“The potential offtake is a substantial volume of gas of up to 1.4 trillion cubic feet which will underpin the commercialization of the Mukuyu gas field. This MOU demonstrates the huge demand in an energy-starved market in Zimbabwe and the wider region.

“Natural gas and power are in high demand in southern Africa due to increasing supply shortages of natural gas from mature fields that are now in decline, the retirement of over 10,000 MW of aging coal-fired power infrastructure in the region and the increasing adoption of gas for industrial use and as a source of cleaner energy.

“We look forward to working closely with Mbuya Energy and our partners One-Gas Resources to progress the project and with the ultimate goal of providing reliable and affordable baseload power to Zimbabwe and the region,” MacMillan said.

Tunde Akerele, Mbuya Energy Director, said the Power Project will be developed in line with world-class standards and will support the further integration of renewable sources of energy into the National Grid.

Akerele said the project will be designed to minimize its environmental footprint and will utilize an efficient Combined Cycle Gas Turbine configuration (CCGT) that will incorporate cutting-edge carbon reduction technologies.
“We are thrilled to join forces with Invictus and One Gas Resources to not only unlock the immense potential of the Mukuyu discovery but also pave the way for a cleaner and more sustainable energy future for Zimbabwe.

“This MoU signifies a critical step forward in transitioning Zimbabwe away from its reliance on coal power generation and towards a more diversified energy mix that includes natural gas and renewables. The introduction of much-needed dispatchable energy for the national grid will enhance energy security, reliability, and facilitate the increased integration of renewables.

“The project also has significant potential to drive economic growth, fostering new industries, creating jobs, and stimulating broader economic development across Zimbabwe. We are confident that the Gas-to-Power Project represents a turning point for Zimbabwe’s energy sector and its journey towards a cleaner and more prosperous future.

“We look forward to collaborating with Invictus, One Gas Resources, and all stakeholders to bring this transformative project to fruition and unlock a brighter energy and economic future for the nation,” he said.

ZMF proposes measures to protect small-scale Lithium miners

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ZMF proposes measures to protect small-scale Lithium miners

The Zimbabwe Miners Federation (ZMF) has proposed the artisanal and small-scale miners (ASM) in the lithium sector to partner with Kuvimba Mining House (KMH) for their ore processing to ensure predatory buyers and agents do not defraud the miners.

Speaking to this publication, the Zimbabwe Miners Federation (ZMF) President, Ms Henrietta Rushwaya, said miners were working towards modalities to prevent the theft happening in the chrome sector where ores are bought for a song.

“We propose that Kuvimba does toll processing for the ASM sector as this will enable us to benefit from the resource since we don’t want a repeat of what is currently happening in the chrome sector where there is a monopoly and the resource is being sold for a song. We are getting cleverer by the day and we cannot allow our miners to continue suffering when we are the owners of the resource,” Rushwaya said.

The country’s chrome market is dominated by predatory buyers who have formed domestic cartels which purchase chrome at an average price valued at 15% of export sales prices. With this in mind, ZMF wants to prevent the situation and see miners benefiting through value addition and beneficiation of the product.

Chrome ore producers face major growth challenges because there is limited access to the international export market, which reduces opportunities for chrome producers to earn much-needed foreign currency to help resuscitate operations.

Chrome ore production, which is mainly dominated by ASM, is now declining due to the low prices being paid by our local smelters and local internationally-based buyers to chrome producers.

As a result, Zimbabwe, as a nation, is losing significant foreign currency and tax revenues, while at the same time opportunities to reinvest in production growth and efficiencies are being lost.

Zimbabwe gold buying prices/ gram 16 December 2023

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Zimbabwe gold buying prices/ gram 16 December 2023

Fidelity Gold Refinery (FGR) official gold buying prices/ gram. See the Zimbabwe gold buying prices/ gram today 16 December 2023.

SG 90% AND ABOVE US$61.74/g
SG ABOVE 85% BUT BELOW 90% US$61.09g
SG ABOVE 80% BUT BELOW 85% US$60.43/g
SG ABOVE 75% BUT BELOW 80% US$59.78/g
SAMPLE BELOW 10g BUT ABOVE 5g US$58.80/g

Fire Assay CASH $62.07/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.

Additional gas discovery in Muzarabani

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Additional gas discovery in Muzarabani

Australia Stock Exchange listed oil and gas exploration junior Invictus Energy Limited has discovered additional gas in the Lower Angwa formation in Mukuyu-2 exploration well sidetrack. This follows another discovery in the upper Angwa formation, company CEO and Managing Director Scott MacMillan said.

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According to MacMillan the discovery of gas in both upper and lower Angwa greatly expands the resource in Mukuyu/Muzarabani gas field.

He said the discoveries which were drilled 7 km and 450m deep confirm the incredible potential of the Mukuyu field, which has a structural closure of over 200km2.

MacMillan said Invictus’ focus now turns to completing the remaining wireline logging and well suspension operations safely.

“We are delighted to declare an additional gas discovery from the Mukuyu-2 sidetrack well in the Lower Angwa formation.

“The discovery of gas in both the Upper and Lower Angwa greatly expands the resource in the Mukuyu gas field and marks another significant milestone for Invictus.

“The Mukuyu-2 discoveries were drilled 7 kilometres away and 450 metres updip of the Mukuyu-1 discovery well which, confirms the incredible potential of the Mukuyu field, which has a structural closure of over 200km2.

“This also provides the Company with substantial running room for identifying further potential discoveries within our commanding 360,000-hectare acreage in the Cabora Bassa Basin. “Our team has worked incredibly hard over this drilling campaign, and we are thankful to everyone involved in delivering not one, but two discoveries at Mukuyu-2.

“Our focus now turns to completing the remaining wireline logging and well suspension operations safely.

“Following the conclusion of these current operations the team will begin preparing for a new round of activities including a well test at Mukuyu-2 and further drilling of appraisal wells and/or new exploration prospects across our exciting portfolio with the Rig 202 secured for a further 2 years,” said MacMillan.

Ministry of Mines hailed for change of mine ownership restriction

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Ministry of Mines hailed for change of mine ownership restriction

The Ministry of Mines and Mining Development has been applauded for barring Provincial Mining Directors (PMDs) and their staff from transferring registered mining titles without seeking written authorisation from the Ministry of Mines Head Office.

Speaking to this publication Zimbabwe Miners Federation (ZMF) President Ms Henrietta Rushwaya commended the government decision saying it will go a long way in curbing corruption in the transfer of mining claims as has been the case where corrupt individuals would change mining ownership without the consent of miners.

“We welcome the move as ZMF as this was now fueling corruption and also some sales were now taking place without the consent of the owner and some were also taking place in reserved areas. How does a foreign company buy an 8-hectare lithium block?” Ms Rushwaya said.

Young Miners Foundation (YMF) CEO Mr Payn Kupfuwa said the decision will allow due diligence to take place before transfers are effected. He also said that the decision will ensure a steady flow of professionalization and formalization initiatives.

“The Ministry of Mines and Mining Development has done well by stripping of the right to transfer ownership of Mines as this will reduce disputes as due diligence will be done before transfers are done. Disputes have been hindering progress in terms of production which affects the US$12 billion mining economy target which resonates to the prosperous and empowered Upper Middle Income economy by 2030. As Young Miners, we are ready to participate in the bolstering of efficiency gains in mining enterprise development through increased formalisation and professionalisation of small-scale mining. We are serious in re-writing and re-defining the small-scale mining narrative by working formally. This initiative is a great move towards formalisation and professionalisation of small-scale mining,” Kupfuwa said.

Zimbabwe gold buying prices/ gram 15 December 2023

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Zimbabwe gold buying prices/ gram 15 December 2023

Fidelity Gold Refinery (FGR) official gold buying prices/ gram. See the Zimbabwe gold buying prices/ gram today 15 December 2023.

SG 90% AND ABOVE US$62.16/g
SG ABOVE 85% BUT BELOW 90% US$61.50g
SG ABOVE 80% BUT BELOW 85% US$60.84/g
SG ABOVE 75% BUT BELOW 80% US$60.19/g
SAMPLE BELOW 10g BUT ABOVE 5g US$59.20/g

Fire Assay CASH $62.49/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.

Karo platinum project a prime example of local empowerment

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Karo platinum project a prime example of local empowerment

Tharisa’s Karo Platinum Group Metals (PGM) Project in Mhondoro Ngezi has proven to be one of the favourites with 99 per cent of employees and contractors being from within Zimbabwe.

Rudairo Mapuranga

The project whose groundbreaking exploration was commissioned by President Emmerson Mnangagwa in 2018 is expected to be online 7 years later in 2025 relatively a short period for a project of that magnitude.

According to world standards, on average it takes from exploration to development stage of a PGM project it usually takes 10-15 years to open an ore deposit for production, and costs vary from $100 million to over $1 billion to complete depending on the type of mine. Development involves extensive pre-development planning and paperwork.

Tharisa will invest over US$400 million in the first phase of the project, already over US$100 million has been invested with Tharisa initially targeted bringing the first ore to the mill by the second half of 2024 and significant progress has been made in line with the target. However, the giant has indicated that the timeline has been extended to June 2025 in response to the deterioration in PGM prices.

The project is in the development stage, employing over 1000 people with over 400 coming from the surrounding community and over 600 coming from other areas like Norton, Chegutu and the rest of the country.

Of the 15 contractors working to build what could be the country’s second-biggest PGM mine after Zimplats in 2025, 14 are Zimbabwean-owned companies proving that the project is in the hands of Zimbabweans.

The Karo project has also been designed as a model and yardstick to ensure the knowledge to build PGM project is cascaded downwards for future generations to be able to open and develop Mines.

During its first phase of production, Karo Platinum Mine will produce an annual average of 190,000 ounces of PGMs with the capacity to grow the country’s GDP by an average 2 per cent.

“Over 400 local people from this surrounding community have already been employed in the project. We’ve got 1104 people with respect today working on the project which is a big number. Obviously, you’ve seen a lot of the local companies that are providing services and contributing to the local economy and developing obviously not just the current point but also developing the country’s skills base to do projects of this magnitude.

“This project is being done to international standards both from environmental social issues, engineering sticks up to some of the best engineerings in the world. It’s a project of the highest quality that we’re developing here so we hope that that sort of skill set will cascade downwards into other sectors of the economy.

“It’s a big project we’re looking to produce plus or minus 190 000 ounces of PGMs on an annual basis you know with some of the work that we’re doing it might go beyond 200 000 ounces of PGMs.

“For every thousand jobs that are created in the mining industry you create an additional seven you, so if we do a thousand jobs here, there are 7 000 jobs created,” Karo Resources Country Director Dr Joe Zimba speaking on the sidelines of Ministerial visit to Karo Platinum project on Tuesday said.

Some foreign investors bring with them too many employees from abroad to a country with high employment rates and jobless skilled professionals saturating the already pressed jobmarket.

BREAKING: PMDs stripped of the right to transfer ownership of mining claims

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BREAKING: PMDs stripped of the right to transfer ownership of mining claims

The Permanent Secretary in the Ministry of Mines and Mining Development Mr Pfungwa Kunaka on Tuesday wrote to all Provincial Mining Directors (PMDs) to stop the transfer of registered mining titles without seeking written authorisation from the Head Office.

In a statement seen by Mining Zimbabwe, Kunaka said many of the transfers were being effected without the knowledge of PMDs and the Head Office leading to mining activities which are disproportionate to the locations concerned.

“It has come to the principal’s attention that so many transfers of mining titles are being affected and many of those could be taking place without the knowledge of PMDs and Head Office. This development has led to serious ownership of mining rights and has also, in several cases led to mining activities which are disproportionate to the locations concerned.

“Taking into account the above, I hereby advise you that with immediate effect, all PMDs and any of your staff are directed not to effect any transfer or exchange of ownership of mining title. Whereby such transfer is required by any title holder, PMDs are required to seek written authorisation from Head Office,” Kunaka said.

Whilst it is commendable that the Ministry  is taking measures to stop rising disputes across the sector, the decision is likely to affect change of ownership time frame as it is likely to take more time creating backlogs in the process.

This is a developing story…

Premier issues US$2.5 million shares to Zim’s largest contractor, JR Goddard

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Premier issues US$2.5 million shares to Zim’s largest contractor, JR Goddard

AIM-listed mining and exploration company, Premier African Minerals has settled the payment of US$2.5 million in invoices by issuing 769,230,769 new ordinary shares of the Company to Zulu open pit mining contractor, JR Goddard Contracting (Pvt) Ltd popularly known as JRG, the company CEO George Roach said.

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According to Roach, the company has also announced a subscription to raise £2.4 million before expenses at an issue price of 0.23 pence per new ordinary share for the Zulu project.

He also said Premier is on track to target revenue-generating production by February 2024 following the installation of the 55 tons per hour ball mill and other associated structures which is expected to be completed by late January/early February 2024.

The Premier African Minerals CEO said the Company has conditionally settled the payment of US$2.5 million (equivalent to £2 million) in invoices through the issue of 769,230,769 new ordinary shares of the Company to Zulu open pit mining contractor, JR Goddard Contracting (Pvt) Ltd, issued at a price of 0.26 pence per new ordinary share.

“The subscription and the contractor settlement should see Zulu through to production in February 2024.

“We are deeply encouraged that the subscription was taken up by two institutional investors with one of the investors having supported the Company previously. We believe that the attraction of further institutional investment into Premier demonstrates the underlying value of Premier.

“We would be remiss if we did not also express our appreciation to our Mining Contractor for their willingness to accept settlement of invoices in Premier shares,” Roach said.

Karo project excites government

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Karo project excites government

The government is enthusiastic about the development and plant construction phase of the Karo Platinum project, despite the impact of declining commodity prices on production projections. Over $100 million has been invested in the project so far.

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Speaking to Mining Zimbabwe on the sidelines of a Ministerial visit to the Karo Platinum project in Ngezi on Tuesday, the Deputy Minister of Mines and Mining Development, Engineer Polite Kambamura, said that the Karo project, despite changing its timelines for production commencement, is in line with global mine development for Platinum Group Metals (PGM) projects, which is between 10 to 15 years. Karo’s timelines, despite being reviewed upwards, will only go to 8 years.

Kambamura said the future of the project will be of significant benefit to the country’s economic prosperity. It currently employs over 1100 people, with 420 of them coming directly from the Mhondoro Ngezi community. 99 percent of the employees are Zimbabweans, and 14 percent are women. The company has a strategy to employ at least 20 percent women.

“As you are aware, mine projects take a long time to establish. The company started with massive exploration drilling and they drilled 488 holes, which translates to 53 km. They are further drilling to 58 km. The exploration will be JORC certified.

“Karo Resources is going to process 225,000 tonnes of ore per month at a strip ratio of 1:19, which means for every tonne of ore that is mined, they have to bring 19 tonnes of waste, translating to 4 million tonnes of waste that has to be moved per month. Annually, the company is looking forward to producing 190,000 ounces of PGM. This includes 42% platinum, 39.9% palladium, 8.5% gold, and 4.1% rhodium, at a grade of 2.8 grams per tonne. The deposit here is very economical, and the company is also looking to exploit base minerals. So the future here is great,” Dr. Kambamura said.

Speaking to Mining Zimbabwe at the same event, Karo Resources Country Director Dr. Joe Zimba said pilot mining has already started in the country, with the company using a mining strategy after commissioning in 2025.

Dr. Zimba said Karo was looking forward to commissioning as soon as possible, with the possibility of going ahead of the timelines if the factors that affected the previous projections have changed.

He said the project will be very significant, contributing around 1 percent of the national GDP.

“The pilot mining has already started, and construction of processing plants is underway, and everything should be set by 2025. We would like to commission as early as possible. We are fully committed to this project, and we want it to contribute to the country’s GDP as soon as possible. We believe that this project will contribute 1 to 2 percent of the country’s GDP,” Dr. Zimba said.

Karo Platinum

Karo Platinum is the newest low-cost, open-pit PGM asset under construction and located on the Great Dyke in Zimbabwe.

A joint venture between Karo Mining Holdings (85%) and Generation Minerals (15%), a Republic of Zimbabwe special purpose vehicle (SPV), the Karo Platinum project has an initial life of 17 years with less than 10% of the 23 903 ha project area having been utilised to attaining this project life.

The project has a short construction period and is due to deliver its first ore to the mill by the third quarter of 2024.

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