Mining ZimbabweLatest Mining News, Policy and Industry Updates

The Minister of State for Midlands Provincial Affairs and Devolution, Hon. Owen Ncube, has raised alarms over the severe environmental damage caused by irresponsible mining activities along the Great Dyke.

Speaking to government officials, Miners, and Shurugwi residents during the Midlands Provincial clean-up campaign, Minister Ncube highlighted the pressing issue of land degradation due to mining.

“Our province has not escaped the challenges of land degradation, desertification, and drought. Irresponsible mining along the mineral-rich Great Dyke has left vast tracts of land scarred with open pits, posing constant threats to people and livestock,” he stated.

He also emphasized that illegal mining activities have destroyed productive land, severely impacting community livelihoods. Minister Ncube called for a united effort involving the government, mining companies, farmers, local communities, and environmental organizations to ensure sustainable land use.

Additionally, he pointed out that pollution from mining has led to the loss of aquatic life in major water bodies.

“My office has directed all district development coordinators to engage mining entities to immediately adopt sustainable mining practices, such as land reclamation, filling open pits, and planting trees,” he said.

Minister Ncube also urged the business community to collaborate with local authorities to maintain clean premises by installing litter containers and establishing waste management committees.

Finance Minister Prof. Mthuli Ncube has announced new regulations that make the sale of gold to Fidelity Gold Refinery (FGR) exempt from value-added tax (VAT). These changes are outlined in Statutory Instrument 105 of 2024, under the Value Added Tax Act.

By Rudairo Mapuranga

The new rules are part of the Value Added Tax (General) (Amendment) Regulations, 2024 (No. 69), which introduce a zero-rating for gold sales to the refinery. Zero-rated goods are products that are exempt from VAT, meaning no tax is added to their sale.

According to a newly released  Statutory Instrument (SI) 105 of 2024 “Second Schedule (Section 13)

“ZERO RATE: SUPPLY OF GOLD TO FIDELITY GOLD REFINERY (PRIVATE) LIMITED

1. Supply of gold to Fidelity Gold Refinery (Private) Limited.” says the SI.

This exemption is significant because zero-rated goods, like gold in this case, play a crucial role in the production of other goods and are essential in the broader supply chain.

Typically, countries require VAT on most goods and services sold domestically. VAT is a type of consumption tax that is included in the total price of products and is charged in addition to sales tax in many transactions.

The decision to zero-rate gold sales follows a recent increase in Zimbabwe’s VAT rate from 12% to 15%, which faced opposition from many quarters.

VAT is an indirect tax applied to the consumption of goods and services. It is charged on transactions and the importation of goods, with the main legislation being the Value Added Tax Act (Chapter 23:12).

Pardon Dziva, a public prosecutor in Zimbabwe Miners Federation (ZMF) President Henrietta Rushwaya’s gold smuggling case has been sentenced to an 8-year jail term by the Harare Magistrates Court.

Dziva and his co-accused Alex Tombe were both found guilty of demanding a US$20 000 bribe from Rushwaya, who had been convicted of gold smuggling by the Harare High Court, to help her get a lighter sentence.

Rushwaya was arrested in 2020 at the Robert Mugabe International Airport after she was caught trying to smuggle gold bars weighing 6kgs to Dubai.

She was convicted in 2023, fined US$5 000 and given a wholly suspended 18 months jail term. The gold worth US$330 000 she was caught trying to smuggle was forfeited by the State.

According to the prosecution, Helliate Rushwaya a sister to Henrietta tipped the Zimbabwe Republic Police Anti-Corruption Unit (ZACC) after being told that Dziva was demanding a US$20 000 bribe.

“It is the State’s case that on the 15th of November 2023, the first accused person demanded USD20 000 from Wellington Takavarasha to facilitate a lighter sentence for Henrietta Rushwaya who had been convicted of smuggling by a Harare High Court Judge.

“Wellington Takavarasha told Henrietta Rushwaya’s sister, Helliate Rushwaya of the first accused person’s demand. Helliate Rushwaya reported the matter to the Zimbabwe Republic Police Anti-Corruption Unit who set a trap for the accused person.”

Dziva and his accomplice were arrested after Helliate tipped ZACC and handed over trap money to them.

“Helliate Rushwaya agreed to meet the accused persons at CABS Centre whereupon the second accused person approached Helliate Rushwaya and indicated that he had been sent to collect the money by the first accused. Helliate Rushwaya refused to hand over the money and insisted on handing it over to the first accused.

“They drove to Kebbab Restaurant in Milton Park where they met the first accused. The first accused proceeded to Helliate Rushwaya’s motor vehicle where she handed over the trap money before the accused persons were both subsequently arrested”.

Dziva was sentenced to 10 years in prison, with 2 years suspended for 5 years on the condition that he does not commit a similar offense.

“The first accused person was sentenced to 10 years imprisonment of which 2 years was suspended for 5 years on condition that he does not commit a similar offence. The second accused person was sentenced to 8 years imprisonment of which 2 years was suspended for 5 years”, said the prosecution.

Source: New Zimbabwe

Dinson Iron and Steel Company (Disco) has successfully commenced pig iron production from its blast furnace at the Manhize steel plant near Mvuma.

The development, which took place on Wednesday afternoon, marks a historic moment in Zimbabwe’s journey toward industrial revitalization and economic recovery.

The successful launch of pig iron production is a pivotal step for Zimbabwe, signalling the potential for substantial growth and development within the nation’s industrial landscape.

The Minister of Mines and Mining Development heralded this achievement, stating, “We are witnessing the dawn of a new era in Zimbabwe’s industrial landscape. DISCOSTEEL’s success is a clear indicator of what can be achieved through dedication, strategic planning, and investment in technology.”

Through its subsidiary Zim Alloys, Kuvimba Mining House (KMH) is reviving its chrome concentrator and washplants across Zimbabwe to boost the country’s chrome production.

KMH Group CEO Trevor Barnard highlighted the group’s strategic move to capitalise on the current chrome boom.

According to Barnard, with Zim Alloys’ strategic resuscitation efforts, Zimbabwe is poised to strengthen its position in the global chrome market, ensuring greater economic benefits and a more robust chrome industry.

“We’re busy resuscitating more of the chrome concentrator plants and washplants we have around Zimbabwe. This is definitely part of our strategy. As we progress, we’ll announce the resuscitation of each plant. This is our current strategy moving forward,” Barnard said.

Zim Alloys, holding the largest chrome reserve and being the biggest producer of chrome concentrate in Zimbabwe, is set to enhance the country’s production capabilities significantly.

Globally, only six countries have the capacity to produce more than one million tonnes of chrome ore annually namely South Africa, Turkey, Kazakhstan, India, Finland, and Zimbabwe. In 2022, these countries produced 18 million tonnes, 6.9 million tonnes, 6.5 million tonnes, 4.2 million tonnes, 2.2 million tonnes, and 1.5 million tonnes respectively.

South Africa dominates the market with 72% of the world’s commercially accessible chrome reserves and produces almost half of the global output annually. Zimbabwe, despite having 12% of the world’s chrome ore reserves, currently contributes less than 4% of the global output due to sector challenges.

Countries with fewer reserves, such as Turkey, Kazakhstan, India, and Finland, are outpacing Zimbabwe’s production. Turkey, for instance, produces more despite having smaller reserves.

Zimbabwe faces several issues in the chrome value chain. Local miners, particularly small-scale miners, sell their high-grade chrome for much less compared to South African miners. In January 2023, South African chrome ore was priced at around US$281 per tonne, while Zimbabwean miners received just US$70 per tonne. This disparity persists despite Zimbabwean chrome being comparable to higher-priced Turkish chrome, which sold for around US$350-US$360 per tonne in the same period.

Over 90% of the world’s chrome output is used to make ferrochrome, an alloy of chrome and iron ore, produced through high-temperature smelting. Ferrochrome, containing 50%-70% chrome by weight, is a crucial component in manufacturing stainless steel.