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ZDAMWU warns Rio on rumours of Jobs bloodbath at Murowa

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ZDAMWU warns Rio on rumours of Jobs bloodbath at Murowa

The Zimbabwe Diamond & Allied Minerals Workers Union (Zdamwu) wrote a letter to Murowa management stating that the union had noted with concern a jobs bloodbath at Murowa.

Reports that Murowa plans to cut its staff complement to 400 from 800 has led to concern among workers that the mining sector is lacking strategic direction and proper management. The company’s retrenchments have been driven by “mismanagement”, according to Zdamwu’s Secretary-General Justice Chinhema. He added that rumors are circulating that some departments are notifying workers of a voluntary retrenchment exercise. If it is true that the company is laying off workers as a result of mismanagement, this will undermine Zimbabwe’s goal of achieving a US$12 billion mining economy by 2023.

“Rumours are also circulating that you intend to lay off 400 workers out of the total 800 workers currently employed,” the letter reads.

“It has further come to our attention that some departments have notified their workers of a voluntary retrenchment exercise. If all this we are hearing is true, then it is confirming what we have been saying in all our letters that RioZim is lacking strategic direction and proper management.

“Your workers and the union now share the view that the correct situation facing RZM (RioZim Murowa) together with other RioZim companies is a lack of proper management. To be honest with you, we have lost confidence in the shareholders of the company and its management. Workers are working in fear of losing their jobs and all is pointing (to) sabotaging the government’s target of US$12 billion mining economy by 2023.”

“(The) mining industry, as the backbone of the country’s economy, as clearly positioned by the Government of Zimbabwe through National Development Strategy 1 &  2, requires every one including your management to play your part through creating and securing more jobs. The timing of your activities now worries us and we are afraid might degenerate into labour unrest,” Chinhema noted.

Zimbabwe’s President Emmerson Mnangagwa’s US$12 billion mining vision is one of several signature policies helping to rebuild Zimbabwe’s struggling economy. Several minerals, including diamonds, are expected to improve output this year, with the gems expected to contribute $1 billion to the economy. The mining union is concerned that the cuts at Murowa will have a detrimental effect on the mineral output.

RioZim, which controls Murowa diamonds, is listed on the Zimbabwe Stock Exchange and has been going through a challenging period over the past year. Financial results for the half-year ended June 30, 2022, reported that liabilities at the firm were $13 billion higher than current assets, or roughly US$14 million today.

As the backbone of the country’s economy, Zimbabwe’s mining industry requires everyone, including management, to work together to create and preserve more jobs. If the fears of a labour unrest based on the timing of Murowa’s retrenchment plans come to fruition, it could damage an industry that is crucial to Zimbabwe’s economic recovery.

Vanished files from Zim’s largest chrome miner sparks legal battle

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Vanished files from Zim’s largest chrome miner sparks legal battle

A South African executive allegedly stole thousands of sensitive documents at Zimbabwe’s largest chrome miner, Moti Group, which officials fear could jeopardise ongoing negotiations on multimillion-dollar projects in the country, the Zimbabwe Independent heard this week.

Moti Group has the majority stake in African Chrome Fields (ACF), which controls swathes of claims in the mineral-rich Midlands province where it launched an aluminothermic plant in Kwekwe to produce up to 12 000 tonnes of low sulphur, high-grade ferrochrome annually without using electricity in July 2018.

It is in the middle of negotiating a venture based on its lithium concession in Zimbabwe with an unnamed Chinese company which could lead to the setting up of a battery factory at a cost of more than US$1 billion.

The group is also involved in platinum mining, real estate and logistics, mainly in South Africa.

Founder, Zunaid Moti has since left the group because “his reputation was hindering the fortunes of the company” and was replaced by South Africa’s former Treasury director-general, Dondo Mogajane, who is now leading the negotiations around the Zimbabwe lithium battery venture.

Mogajane recently told South African media that the lithium mining and battery manufacturing venture would be a “game changer” for Zimbabwe.

Zunaid, however, reportedly plans to maintain his involvement in the running of Africa Chrome Fields.

Confidential documents seen by the Independent showed that the missing corporate documents, which were allegedly taken by a South African executive known as Clinton van Niekerk, have been leaked to a globally acclaimed investigative organisation, The Sentry, various media houses and third parties.

The Sentry is a resource watchdog which investigates how multinational companies siphon wealth out of countries.

This has sparked legal battles for their return both to South Africa and Zimbabwe, the Independent understands.

Van Niekerk, who was employed by Mazetti Management Services, a subsidiary of the Moti Group, allegedly resigned under suspicious circumstances before being arrested at King Shaka International Airport in Durban, South Africa.

The documents claim that van Niekerk was netted as he tried to leave that country to avoid prosecution, after the disappearance came to light last year, setting into motion the investigation that has seen him being slapped with criminal charges in South Africa and Zimbabwe.

Among the “stolen” papers were corporate documents belonging to Moti Group’s Zimbabwean interests, according to court papers seen by the Independent.

Criminal charges have also been filed against a South African attorney.

Following his arrest, van Niekerk’s legal representatives launched an urgent application in the Durban High Court to secure his release because he “fears for his life”.

They also claimed that he was cooperating with Australian police, who had arranged for a visa for him to fly to London to testify. Mazetti was astounded by the alleged involvement of London and Australian authorities on a matter that was being dealt with in a South African jurisdiction.

“These representatives did not attempt to explain why the Australian or London authorities would be interested in alleged crimes committed in South Africa, nor did they explain how the Australian authorities would arrange a visa for the United Kingdom,” read part of documents seen by this publication.

“Van Niekerk was released the next day and is now alleged to be in an unspecified witness protection programme.”

In an urgent application lodged on February 13, 2023, in the Durban High Court, David Willoughby of Mazetti applied to have the order securing van Niekerk’s release set aside.

Willoughby claimed that van Niekerk broke the confidentiality provisions of his employment contract and “inter alia, the Protection of Personal Information Act, the Cyber Crimes Act and the Criminal Procedure Act” in South Africa.

Van Niekerk is said to have taken some of the documents while in Zimbabwe, where authorities are working with their South Africa counterparts in a cross-border investigation, according to official papers.

The Sentry’s reports have covered countries in east and southern Africa, among other regions, unearthing the plunder of resources.

The Moti Group says the documents could have been forwarded to The Sentry by either van Niekerk or his accomplices.

Mazetti has since taken up the matter with The Sentry and its sponsors.

The Sentry is a non–profit organisation sponsored by several high-profile individuals and foundations.

It was co-founded by the American actor George Clooney.

Mazetti, according to correspondence seen by the Independent, claims that The Sentry was working with van Niekerk and was furnished with, and is utilising the confidential documentation.

“Mazetti has requested on no less than five different occasions, in writing, that The Sentry returns all documentation supplied by van Niekerk, an alleged criminal. Mazetti also requested that they be allowed to confirm the authenticity of the documents.

“Mazetti rightly points out that any documents van Niekerk had possession of could have been altered in a variety of ways to support his vindictive narrative. Despite the various correspondences directed to them by Mazetti, The Sentry has failed to even acknowledge receipt of any correspondence. This, even though any use, and even possession of stolen documents, would make them an accessory to the crime,” read part of the documents.

“The Sentry and its sponsors do not see themselves being subject to the laws they claim to fight for. They seem to be promoting the ideology that it is right and just to not only steal confidential documents but to use the documents to further an individual’s agenda and false narratives. The behaviour of The Sentry promotes the theory of a pre-determined false narrative against the group and African governments, and one can only hope that their journalistic ethics will prevail,” Mazetti told the Independent when contacted for a comment.

Efforts to get a comment from The Sentry were fruitless.

Attempts to get a comment from van Niekek were also fruitless and several efforts to get in touch with him and his representatives hit a brick wall. Messages sent to his social media profiles did not get a response by the time of going to print.

Zim independent

Mining Industry hit hard by electricity challenges

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Mining Industry hit hard by electricity challenges

Zimbabwe’s mining industry, which is critical to the country’s economy, has been hit hard by electricity challenges.

The energy crisis in Zimbabwe has been ongoing for some years, and this has seriously affected the country’s mining sector. Zimbabwe has a vast mineral resource base, and the mining industry contributes significantly to the country’s GDP. However, the challenges in the electricity sector have hamstrung the industry, leading to reduced production and revenue.

Electricity is essential for mining activities, and without it, the operations cannot function effectively. Zimbabwe has a small energy-generating capacity that mainly relies on hydroelectric power stations, which are fed by Lake Kariba. The country’s electricity demand from households and industries has consistently exceeded the energy-generating capacity, leading to persistent power outages and load shedding.

The power outages negatively impact the mining sector since it heavily relies on electricity to extract and process minerals. Mining operations require high levels of energy to power the drilling and extraction equipment, lighting, and cooling systems. Additionally, the production process of minerals, such as gold, copper, and platinum requires energy-intensive processes like crushing, grinding, and refining, which need a consistent electricity supply.

Therefore, power shortages disrupt the mining process, leading to reduced production, missed targets, and lost revenue.

Rolling blackouts popularly known as load shedding have impacted production, according to Collin Chibafa, the President of the Chamber of Mines Zimbabwe (CoMZ).

“About 88% of our members are experiencing at least six hours of load shedding daily,” Chibafa said. “That would impact the level of production that comes out.” Some mines experience blackouts for as long as 12 hours a day, he added.

While some mines have built their own solar power plants, they only provide power for a few hours. And others have opted for diesel generators.

“Obviously that’s an expensive and the least viable option. If you have people underground, they need ventilation, they need oxygen,” Chibafa said.

In 2020, Zimbabwe witnessed a 45% decline in gold production attributed to the electricity crisis, among other factors. Apart from reduced production levels, the current energy crisis has led to increased costs of mining operations. For instance, miners have to use fuel-powered generators to supplement the grid’s electricity, making the mining process more expensive and a threat to the 12 billion dollar Mining Industry.

Mining companies in Zimbabwe have resorted to exploring alternative energy sources to mitigate the effects of the energy crisis. However, alternative energy sources come with their unique challenges. For example, most mining activities in Zimbabwe take place in remote areas, far from the main grid supply. These areas depend on diesel-powered generators that are not only expensive but also emit greenhouse gases, which harm the environment.

To address the electricity challenges, the Zimbabwean government has taken measures such as inviting investors to invest in the energy sector. For instance, the government recently announced plans to award tenders to companies that are interested in setting up solar plants. The solar plants are meant to complement the existing power stations, and the government hopes this will help to address the electricity gap in Zimbabwe.

Zimbabwe is currently generating less than half of its 1,700 MW demand as the old thermal units at Hwange, commissioned between 1983 and 1987, frequently break down and are performing below capacity.

The government has also designed schemes to incentivize the use of renewable energy sources. For instance, the government introduced a net metering scheme that allows households and businesses to generate their electricity from renewable energy sources such as solar, and sell any excess energy back to the national grid. Such strategies encourage the uptake of renewable energy and can go a long way in curbing the country’s electricity challenge.

Conclusion

The electricity challenge in Zimbabwe is holding back the potential growth of the mining industry, which is a critical sector for the nation’s economy. The situation has led to reduced production levels, increased costs of mining operations, and loss of revenue for miners. Africa, as a whole, is experiencing a similar challenge, with many countries grappling with electricity shortages. African countries need to invest in renewable energy sources to address the energy crisis and support the growth of vital sectors, such as mining, to propel economic growth.

Gloria Zvaravanhu appointed Karo’s independent non-executive director

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Gloria Zvaravanhu appointed Karo’s independent non-executive director

Karo Mining Holdings has announced the appointment of Gloria Zvaravanhu as an independent non-executive director and chairperson of the audit committee.

Zvaravanhu is a chartered accountant and has received numerous postgraduate qualifications, including an MBA in Business Leadership from the University of South Africa, and a Masters in International Business Law from University of Cumbria, in the UK. She is also the managing director of an insurance company in Zimbabwe and has previously held senior roles across a variety of companies such as KPMG.

Apart from her extensive experience in the business sector, Zvaravanhu is also an experienced non-executive director and has served on the boards of several Zimbabwean companies. Additionally, she is an advisory board member of the International Federation of Accountants and an alumnus of the Fortune 500 Global Women Mentoring Program.

According to CEO Bernard Pryor, the appointment of Zvaravanhu will help strengthen the board and ensure they have the governance oversight and diverse in-country business understanding needed to develop the Karo platinum project successfully. As they guide their next tier-one asset through its rapid development to achieve their stringent construction timeline, it is essential to have a solid team that can develop Karo successfully with strong community support.

Zvaravanhu’s appointment is a significant step towards achieving this goal, and her leadership skills and commercial acumen have been recognized with several business accolades in Zimbabwe. Karo Mining Holdings is excited to have her on board as they continue to strive towards their ambitious goals in the business sector.

Gold buying prices Wednesday 05 April 2023

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Gold buying prices Wednesday 05 April 2023

Fidelity Gold Refinery (FGR) official gold buying prices Wednesday 05 April 2023.

SG 90% AND ABOVE US$61.37/g
SG ABOVE 85% BUT BELOW 90% US$60.41/g
SG ABOVE 80% BUT BELOW 85% US$59.76/g
SG ABOVE 75% BUT BELOW 80% US$59.11/g
SAMPLE BELOW 10g BUT ABOVE 5g US$58.14/g
FIRE ASSAY CASH US$61.37/g

NB: Fire Assay cash price is for gold above 100gs and 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 charged to Primary Producers

Cash available. Fidelity Gold Refinery prices will be changing daily in relation to world market prices.

Pambili appoints Stephen Smith as its technical consultant

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Pambili appoints Stephen Smith as its technical consultant

Pambili Natural Resources Corporation has announced that it has appointed Mr Stephen Smith as a technical consultant to the Corporation.

Pambili Natural Resources Corporation has made a significant move in appointing Smith as a technical consultant to the company.

Smith has had nearly four decades of experience in the exploration and development of mineral deposits, working on projects in South Africa, Tanzania, Namibia, and Zimbabwe. Having worked for Anglo-American Corporation for many years, he later turned his attention to smaller mining companies in Zimbabwe, where he has spent the past 15 years assessing mineral deposits.

This appointment is a clear indication of Pambili’s commitment to growing its mineral exploration and extraction capacities in Zimbabwe. The corporation has also been focused on other projects, such as its Pambili Copper Project in Angola, which is slated to start producing ore in 2022.

It is apparent that the corporation is investing heavily in its operation by bringing onboard experienced and knowledgeable professionals like Smith to help it expand further. The corporation aims to leverage Smith’s expertise to advance its exploration and development projects, which will help to generate long-term value for the company and its shareholders.

Overall, Pambili has put itself in an excellent position to capitalize on the growing demand for minerals globally, and experts such as Steve Smith will be instrumental in achieving the corporation’s goals. The appointment of Smith will undoubtedly reinforce Pambili’s reputation as a leader in mineral exploration and development.

Pambili CEO Jon Harris commented: “We are delighted that a geologist with Steve’s experience has agreed to join the team. Steve has detailed knowledge of more Zimbabwe gold mines than anyone else I know, and his engagement is critical to our being able to expand Pambili’s footprint in Zimbabwe. Furthermore, Steve has an enviable pipeline of projects of his own, any one of which could add significant value to Pambili, and we look forward to working closely with Steve to develop one or more of these opportunities.”

Stephen Smith said: “I would not have spent as much time in Zimbabwe as I have done if I did not believe in the mineral potential of the country. It is great that Pambili shares that belief and has committed itself to Zimbabwe—opportunities abound, and they all need the development capital that Pambili can bring to fulfill their potential.”

Two issues delay the first production at Zulu Lithium – CEO

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Two issues delay the first production at Zulu Lithium – CEO

Premier African Minerals Limited, has reported that two issues have delayed the first production at Zulu Lithium and Tantalum Project located in Fort Rixon, 80km from Zimbabwe’s second capital city.

George Roach, Chief Executive Officer, said the issues will be resolved in the coming days.

“Two issues have delayed production this past weekend. The first is one final approval from a Zimbabwean authority who is working closely with Zulu to ensure that the approval is provided as soon as possible.

The second is the late delivery of one outstanding reagent. This was short-ordered due to an error on the part of the plant supplier as announced on the 29 March 2023. The reagent is freely available but not in Africa and complications related to airfreight of a chemical substance has caused this delay. It must be noted that the delay on this reagent does not necessarily stop the production of spodumene, however it will affect the grade of spodumene concentrate produced.

We believe that the above issues will be resolved in the coming days and will update the market thereafter,” Roach concluded.

About George Roach

George Roach has extensive experience in the natural resources sector in Africa. He has successfully obtained licenses and concluded mineral exploration and exploitation agreements in the entire SADC region, Ethiopia and most of the CEMAC and ECOWAS regions. Under the auspices of Exploration Services, he provided consultancy to prospective exploration companies and has acted in significant capacities for a number of start-ups that have subsequently listed on AIM and TSX-V. Prior to founding Premier, Mr Roach was Managing Director of Africa, for UraMin Inc. Mr Roach maintains a number of other interests in start-ups which include Anglo African Agriculture that recently acquired the Southern Africa-based business of Dynamic Intertrade, as well as Agriminco Inc. A TSX-V listed Agricultural developer in Africa.

Gold buying prices Monday 03 April 2023

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Gold buying prices Monday 03 April 2023

Fidelity Gold Refinery (FGR) official gold buying prices Monday 03 April 2023.

SG 90% AND ABOVE US$60.46/g
SG ABOVE 85% BUT BELOW 90% US$59.51/g
SG ABOVE 80% BUT BELOW 85% US$58.87/g
SG ABOVE 75% BUT BELOW 80% US$58.23/g
SAMPLE BELOW 10g BUT ABOVE 5g US$57.28/g
FIRE ASSAY CASH US$60.46/g

NB: Fire Assay cash price is for gold above 100gs and 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 charged to Primary Producers

Cash available. Fidelity Gold Refinery prices will be changing daily in relation to world market prices.

Issue of escrow shares in the acquisition of the Bilboes gold project

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Issue of escrow shares in the acquisition of the Bilboes gold project

Caledonia Mining Corporation Plc (NYSE AMERICAN: CMCL; AIM: CMCL; VFEX: CMCL) has recently received a notice to issue the Escrow Shares, which were withheld by the company to be issued to Shining Capital Holdings II LP instead in settlement of a commercial arrangement between Toziyana Resources Limited and Infinite Treasure Limited. It was required that the Reserve Bank of Zimbabwe (RBZ) approve this deal, which has now been secured, allowing the two parties to proceed with the issue of Escrow Shares.

After the issue of Escrow Shares, Shining Capital will hold a total of 1,827,818 shares, equating to 9.88% of Caledonia’s fully diluted share capital. This transaction will bring Caledonia’s total number of common shares to 18,506,156, all of which have voting rights.

It is important to note that this figure does not include any shares that will be issued pursuant to the Zimbabwe Placing, an update on which is expected to be announced on March 31, 2023. The figure of 18,506,156 common shares can be used by shareholders to determine their interest in or change to their interest in the company.

Application for the admission of depositary interests representing the Escrow Shares to trading on AIM has been made, with the anticipation of trading in such securities to commence on April 4, 2023. However, it is expected that the natural continuation of the process of retaining 5% of the total consideration shares, the Deferred Shares, will take place shortly, and further shares will be issued in due course.

Overall, Caledonia Mining Corporation’s acquisition of Bilboes Gold Limited and its recent transaction with Shining Capital Holdings II LP represent a significant move for the company. Shareholders will undoubtedly be looking at this development closely and monitoring the impact on the market.

Caledonia extends the closing of its Zimbabwe Placing

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Caledonia extends the closing of its Zimbabwe Placing

Caledonia Mining Corporation Plc, has decided to extend the closing of its Zimbabwe Placing from the previously announced deadline of March 31, 2023, by up to a week. This decision was made due to an unexpectedly high level of interest from both new and existing institutional shareholders who require extra time to attend to their administrative requirements.

The Zimbabwe Placing is aimed at raising funds for the company, and it is expected that, due to strong demand from existing Zimbabwean institutional shareholders, it will raise more than the initial expectation of $3 million.

Caledonia Mining expects to make a further announcement this week regarding the closing date and the amount of funds raised. The company will also notify investors of the shares and Zimbabwe depositary interests that will be issued pursuant to the Placing.

Caledonia Mining Corporation is a leader in gold mining in Zimbabwe, and its key assets include the Blanket mine, which is located in the southwest of the country. The company is committed to increasing shareholder value through its operations and innovations, and it is always on the lookout for new opportunities for growth and expansion.

This decision to extend the closing of the Zimbabwe placing is a testament to the strong demand from both new and existing institutional shareholders. It is also indicative of Caledonia Mining’s commitment to working closely with its shareholders to achieve its goals. The company believes that this extension will allow all interested parties the necessary time to participate and contribute to the company’s success.

In conclusion, Caledonia Mining Corporation Plc’s decision to extend the closing of the Zimbabwe Placing demonstrates its commitment to shareholder value and growth. The company is poised for continued success, and it is always on the lookout for new opportunities to expand its operations and reach. It remains to be seen what the final figures will be, but the extension is likely to result in increased investment and opportunities for the mining company.

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