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Unki’s tax contribution decreases by over 15%

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Unki’s tax contribution decreases by over 15%

The country’s third-biggest platinum group metal (PGM) producer, Unki Mine‘s tax contribution decreased by approximately 15.5 per cent in 2023 compared to 2022, according to the Anglo American Platinum Tax and Contribution Report 2023.

By Rudairo Mapuranga

The platinum Mine’s total tax and economic contribution dropped from US$318 million in 2022 to US$269 million in 2023, marking a 15.5% decrease. This decline reflects the broader economic challenges the mining sector faces, particularly the impact of softening commodity prices.

Total wages and related payments increased to US$58 million in 2023 from US$49 million in 2022, marking an increase of approximately 18.4%. This rise indicates Unki Mine’s commitment to maintaining a stable workforce despite financial pressures.

Community and social investments grew by 25 percent, rising to US$5 million in 2023 from US$4 million in 2022. This increase highlights the mine’s ongoing dedication to social responsibility and local development initiatives.

Total procurement expenditures increased by 2.1%, reaching US$147 million in 2023 from US$144 million in 2022. This modest increase underscores the mine’s efforts to sustain its operational capabilities while managing costs.

Local procurement expenditures decreased dramatically from US$144 million in 2022 to US$77 million in 2023, a decrease of approximately 46.5%. This significant drop requires further clarification to understand its implications fully.

Capital expenditure surged to US$59 million in 2023 from US$15 million in 2022, representing an increase of approximately 293.3%. This substantial rise indicates significant investments in infrastructure and expansion projects aimed at enhancing long-term productivity and efficiency.

Total taxes and royalties borne and collected dropped by 50.4%, from US$121 million in 2022 to US$60 million in 2023. This decline reflects the mine’s reduced profitability and taxable income, largely due to lower commodity prices.

Corporate income tax payments fell sharply by 77.4%, decreasing from US$31 million in 2022 to US$7 million in 2023. This significant reduction underscores the financial strain experienced by the mine.

Royalties and mining taxes decreased by 59.5%, dropping from US$42 million in 2022 to US$17 million in 2023. This decline mirrors the reduced revenue generated from mining operations amid weaker commodity prices.

Other payments decreased by 47.8%, from US$23 million in 2022 to US$12 million in 2023. This reduction highlights cost-cutting measures undertaken by the mine to mitigate financial pressures.

Taxes collected slightly decreased by 3.8%, from US$26 million in 2022 to US$25 million in 2023. This marginal decline indicates that while overall contributions have decreased, the mine continues to fulfil its tax obligations.

The decline in Unki Mine’s tax contribution is primarily attributed to the softening of commodity prices in the global market. Lower prices for platinum and other PGM metals have led to reduced revenue and profitability for mining companies. Consequently, this has impacted their ability to contribute significantly to tax revenues and economic development initiatives.

The mining sector, particularly in Zimbabwe, has faced numerous challenges, including fluctuating commodity prices, operational costs, and regulatory changes. These factors have collectively influenced the financial performance of companies like Unki Mine, necessitating strategic adjustments to maintain viability and competitiveness.

Zimbabwe gold buying prices per gram 11 July 2024

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Zimbabwe gold buying prices per gram 11 July 2024

Fidelity Gold Refinery (FGR) official gold buying prices/ gram. See the Zimbabwe gold buying prices per gram today 11 July 2024.

SG 90% and ABOVE US$72.44/g
SG ABOVE 85% BUT BELOW 90% US$71.67g
SG ABOVE 80% BUT BELOW 85% US$70.90/g
SG ABOVE 75% BUT BELOW 80% US$70.14/g
SAMPLE BELOW 10g BUT ABOVE 5g US$68.99g

Fire Assay CASH $72.82/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.

Blanket Mine Gold Production Up 13% in First Half

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Blanket Mine Gold Production Up 13% in First Half

Caledonia Mining Corporation Plc has reported positive gold production results for their Blanket Mine in the first half of 2024.

Q2 2024 gold production at Blanket was 20,773 ounces, a 19% increase from the 17,436 ounces produced in the second quarter of 2023. H1 2024 gold production at Blanket was 37,823 ounces, a 13% increase from the 33,472 ounces produced in the first half of 2023.

Caledonia reiterates its 2024 gold production guidance at Blanket of 74,000 to 78,000 ounces.

According to Mark Learmonth, Chief Executive Officer,

“Blanket Mine continues to provide a solid foundation for growth as we prepare to become a multi-asset gold producer. Production in the first half of 2024 was excellent and has exceeded our expectations. We remain on track to hit our annual production target of 74,000 to 78,000 ounces of gold.”

ZMF AGM: Minister Chitando to be the Guest of Honor

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ZMF AGM: Minister Chitando to be the Guest of Honor

The Minister of Mines and Mining Development, Hon. Winston Chitando will be the guest of honor at the Zimbabwe Miners Federation (ZMF) AGM scheduled for 11-12 July 2024.

By Rudairo Mapuranga

The AGM, which will run under the theme “Sustainable Mining: A Catalyst Towards National Development,” will take place at Hippodrome in Braeside, Harare.

Speaking to Mining Zimbabwe, ZMF President Ms. Henrietta Rushwaya said,

“At the Zimbabwe Miners Federation (ZMF), we fully support the government’s commitment to sustainable mining practices. Our zero-tolerance policy against deforestation, habitat destruction, pollution, soil erosion, human-wildlife conflict, and loss of biodiversity reflects our dedication to preserving our environment. We believe that responsible mining is not only essential for the health of our planet but also for the prosperity of future generations. Together, we can ensure that our mining activities contribute positively to the nation’s development while safeguarding our natural heritage,” said Rushwaya.

 

Government Urges Revamp of Mining Training Skills

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Government Urges Revamp of Mining Training Skills

A government official has said it is important to shift the approach to developing skills and conducting audits in the mining sector.

By Patricia Rwafa

Speaking at the Skills Audit and Development and provincial stakeholders’ consultation workshop at Monomotapa Cresta Plaza Hotel,  Ambassador R.M. Chitiga who is the Secretary for Skills Audit and Development urged stakeholders to focus on skills education in local mining companies and colleges.

She emphasized that skills development is inclusive, transcending gender, disability, and all other backgrounds in the mining sector.

“The development of skills transcends gender. When men and women work together to learn and apply these skills, they can collectively contribute to poverty reduction and national progress. Universities should play a vital role in equipping students with the skills needed for lithium battery production, a field crucial for a country’s technological advancement in the clean energy sector.”

“Strong lithium battery skills are crucial for a country’s Vision 2030 goals. This encompasses not only the production of lithium itself but also the expertise required to manufacture batteries and develop a robust value chain in this sector.”

“Universities can play a key role in training students in oil and gas exploration and production, particularly for fields like Muzarabani. This would equip graduates with the necessary skills to contribute to the country’s development in this sector. The rise of artificial granite production by countries like China highlights the need for innovation in the natural granite industry. By developing unique skills and value-added products, a country can differentiate itself in the global market.” Chitiga said

Premier’s Conditioning Tank to be Commissioned This Week

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Premier’s Conditioning Tank to be Commissioned This Week

London Stock Exchange-listed mining and exploration junior, Premier African Minerals, has met its targets and will commission its conditioning tank at its flotation circuit, company CEO George Roach announced.

By Rudairo Mapuranga

A conditioning tank, though adding to the capital cost of the flotation circuit, has the potential to improve circuit control, reduce operating costs, and enhance process performance.

According to Roach, the conditioning tank, which is the final plant modification, is installed and will be commissioned this week according to the planned timelines.

“Following Premier’s announcements on 29 May 2024 and 18 June 2024, Premier is pleased to confirm that the conditioning tank is now on site and largely installed, with commissioning, as originally expected, to be completed over the course of this week,” Roach said.

“While the plant is able to run continuously and produce spodumene concentrates at up to 50 tons per day during this commissioning phase, ongoing testing clearly demonstrated that to achieve recovery and acceptable SC6 grade would require a final modification to the spodumene float circuit. Profitable plant operations require concentrate at grade. It was anticipated that the plant could run while the additional conditioning tank was being installed, but with no further advances in plant performance without this addition being possible, it is logical to stop the float circuit now and in so doing both expedite the changes to be made and preserve cash to the extent possible. The civil construction to support this conditioner is expected to be completed by 10 June 2024 and assembly of the new components to commence as soon after 20 June 2024 as possible. The target completion date is now 10 July 2024, and all efforts are targeted at shortening this period,” stated the 29 May announcement.

Cabinet Approves MPC and Prospect Brooke Resources Exploration Deal in Arcturus

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Cabinet Approves MPC and Prospect Brooke Resources Exploration Deal in Arcturus

The Minister of Information, Hon. Jenfan Muswere, has announced that the Cabinet of Zimbabwe has approved a proposed partnership between the Mining Promotion Corporation (MPC) and Prospect Brooke Resources (Pvt) Ltd. This partnership aims to conduct exploration and mine development over the Arcturus Exclusive Prospecting Order Number 1842.

According to Muswere, the joint venture seeks to explore for lithium and other minerals found within pegmatite rock as the country strives to become a leader in Africa’s green revolution.

Muswere stated that MPC, which will not bear any financial obligations towards the exploration of the resources, will hold a 30% stake in the project, while Prospect Brooke Resources will hold the remaining 70%.

“Cabinet considered and approved the proposed partnership between the Mining Promotion Corporation and Prospect Brooke Resources (Pvt) Ltd to conduct exploration and mine development over the Arcturus Exclusive Prospecting Order Number 1842, as presented by the Minister of Finance, Economic Development and Investment Promotion, Honourable Professor Mthuli Ncube.

“The joint venture seeks to prospect and explore for lithium and pegmatite minerals on 52,600 hectares in Goromonzi, Mashonaland East Province. Prospect Brooke Resources (PBR) is a Zimbabwean-based private company incorporated under the Companies and Other Business Entities Act [Chapter 24:31]. In terms of the agreement, a special purpose vehicle, the MPC JV, will be established in which Prospect Brooke Resources shall hold 70% shareholding and the Mining Promotion Corporation 30% at the exploration stage. Prospect Brooke Resources will mobilize the entire amount required for exploration, and the Mining Promotion Corporation is not expected to make any financial contribution towards this stage.

“Prospect Brooke Resources has demonstrated the technical and financial capacity to undertake the project, and exploration is expected to commence once the Joint Venture Agreement is signed by the parties. Prospecting and exploration are estimated to take no more than five years from the commencement date. The Joint Venture shareholding structure will be renegotiated after the exploration stage if the project proceeds to mine development and commences mining activities.

“The Joint Venture Agreement is in line with the Standing Policy on Public-Private Partnerships,” Muswere said.

ZMF encourages ASM to prepare EMPs to avoid mine closure

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ZMF encourages ASM to prepare EMPs to avoid mine closure

The Zimbabwe Miners Federation (ZMF) has called on Artisanal and Small-scale Miners (ASM) to prepare an Environmental Management Plan (EMP), an ASM-designed Environmental Impact Assessment (EIA), to avoid arrests during the ongoing operation targeting miners without an EIA.

By Rudairo Mapuranga

ZMF CEO Mr Wellington Takavarasha advised miners to have an EMP because it’s easier and does not require consultants to carry it out.

“There is an operation ongoing to arrest those without EIAs. Please, you are advised to prepare an Environmental Management Plan (EMP) for small-scale mining operations, which you can do yourself without necessarily engaging an EIA registered consultant and be given an EIA certificate,” Takavarasha said.

Currently, the majority of small-scale miners are operating without Environmental Impact Assessment (EIA) Certificates, which is a violation of the Environmental Management Act Cap 20:27 and its ancillary legislation. One of the reasons cited by small-scale miners for not complying with the legislation is a lack of financial resources to undertake the EIA process. Some miners with EIA certificates are failing to comply with the submitted Environmental Management Plans (EMPs), mainly due to a lack of understanding of the full contents of the so-called “voluminous” EIA documents.

To improve compliance, it is proposed that small-scale miners should be assisted in developing a generic and simplified Environmental Management Plan. The Agency developed operational guidelines for small-scale miners in line with the provisions of the Act. These guidelines have reduced the cost of engaging EIA consultancies for undertaking EIA reports. It is also expected that the guidelines should be simplified to enable easy understanding by small-scale miners.

Women in Mat North Eager to Fully Utilize Bubi Gold Centre

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Women in Mat North Eager to Fully Utilize Bubi Gold Centre

Women under the Zimbabwe Miners Federation (ZMF) in Matabeleland North Province have vowed to restructure operations at the Bubi Gold Service Centre, which is currently “partially” operating.

By Rudairo Mapuranga

Speaking to Mining Zimbabwe, ZMF Matabeleland North Chairperson Jane Lusinga said women are now eager to come and strategize operations at the Bubi Service Centre because it has been run by people who were not ready to listen to the miners’ concerns.

She said the ZMF women’s wing in Matabeleland North is working to ensure they take matters into their own hands so that the Bubi Gold Service Centre can work at full capacity to help achieve the government’s vision for the country to become an upper-middle-income economy by 2030.

“We have our people who were members of the board, the operation has predominantly been run by men. As women, we are working to make the centre viable. The previous management did not adequately address the diverse needs of miners. We are now strategizing and focusing on reviving some of the essential machinery at the site, including setting up ball and stamp mills and cyanidation tanks. These are critical for the efficient processing of gold ore and improving recovery rates. By enhancing our processing capabilities, we aim to support both large-scale and artisanal miners in the region,” Lusinga said.

The Bubi Small Scale Miners Association, in partnership with ZMDC, set up the Bubi Service Centre in the Bubi Area of Matabeleland North Province. The Service Centre was launched by the Government of Zimbabwe in July 2018, with funding from the Reserve Bank of Zimbabwe (RBZ).

Although ZMDC claims on its website that the Bubi Milling Centre is fully operational, the centre is reportedly shunned by miners due to the lack of competitive measures to attract clients.

About ten small-scale miners in the area have already received capacitation in the form of services and equipment. However, there are claims that the equipment they received is not suitable for running a small-scale mine, as the rollout of the equipment was done without consultations.

Artisanal and small-scale miners contribute over half the gold sold to Fidelity Printers, with over 23.3 tonnes of the 35 tonnes delivered in 2022. This year, the Government is targeting the production of over 50 tonnes to be delivered as a result of the support for artisanal and small-scale miners and the expansion of mines by the major mining houses.

Illegal Miners ordered to Vacate Mazowe or Face the full wrath of the law

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Illegal Miners ordered to Vacate Mazowe or Face the full wrath of the law

The Zimbabwe Republic Police (ZRP) has issued a notice to illegal miners from Mazowe Mine Lease 35 to vacate the area by July 13, 2024, or face the full wrath of the law.

By Patricia Rwafa

The eviction order, issued by the Ministry of Mines and Mining Development, requires all illegal occupants to vacate the area which stretches from near ZRP Mazowe to the small town of Concession.

In a press statement, Police Assistant Commissioner Paul Nyathi said:

“The Zimbabwe Republic Police confirms that the Government, through the Ministry of Mines and Mining Development, recently issued an eviction notice and order for all illegal occupiers of mining sites, those involved in the destruction of land and vegetation activities, and those engaged in criminal acts to vacate Mazowe Mine Lease 35, which covers areas near ZRP Mazowe up to Concession, with effect from July 6 to July 13, 2024.

“The Zimbabwe Republic Police, therefore, has the opportunity to warn illegal occupants of mining sites and those perpetuating criminal activities to heed the notice and vacate the indicated areas by the given period.

“Police will ensure the law takes its course on anyone who defies the government’s directive or commits criminal activity under the guise of mining syndicate groups. The public is urged to cooperate with police officers as they move in to maintain law and order.”

The government is grappling with how to tackle illegal mining due to the prevalence of unregistered mines and limited resources for enforcement as more and more citizens take to mining to earn a living.

The Ministry however faces capacitation challenges which is leading to Mining Certificates taking over five years to be processed. In places like Mashonalandwest earlier this year there were reportedly 13 000 Mining Certificates applications which are expected to be processed via physical site inspections from Ministry Officials of which the 57,441 km² province only has two vehicles.

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