Mining ZimbabweLatest Mining News, Policy and Industry Updates

The world must decarbonise its growth models and shift to renewable energy sources to meet the goals of the Paris Climate Agreement, the United Nations’ (UN’s) Sustainable Development Goals and Africa’s Agenda 2063, UN Economic Commission for Africa (UNECA) acting executive secretary Antonio Pedro has said.

Speaking during a panel discussion on ‘Building a regional battery mineral value chain in Africa’ earlier this week, he said the shift to renewable energy sources was a resource-intensive path that required greater production of a variety of minerals – many of which are found in Africa – that are central to decarbonisation efforts.

The Democratic Republic of Congo (DRC), for example, produces over 70% of the world’s cobalt, while the DRC and Zambia together supply 10% of the world’s copper. Mozambique and South Africa hold significant reserves of graphite, platinum group metals, lithium and others.

“We have clear opportunities not only from the global green mineral boom, but also from our domestic achievements, such as the African Continental Free Trade Area to facilitate the development of regional value chains for these green economy products,” said Pedro.

He also noted that several innovative financing mechanisms had been developed to support initiatives such as the battery and electric vehicles (EVs) value chains.

The session was jointly organised by UNECA and Afreximbank. The organisers wanted to present the specifics of the lithium-ion battery initiative to a wider audience.

In the past two decades, Pedro said, the world had seen that, without the right enabling policies and incentives, commodity supercycles come and go, leaving countries dependent on resource extraction.

He deplored the fact that about 70% of Africa’s exports were unprocessed commodities, a situation that could change with the right policies that prioritise industrialisation and value-addition in mining and other resource sectors.

Afreximbank export development director Oluranti Doherty said it was disappointing that, despite Africa being endowed with an array of minerals, from copper and magnesium to nickel and cobalt, the continent had not been able to efficiently transition to greener forms of energy.

Underlining Afreximbank’s commitment to promoting an inclusive battery and electric vehicle value chain, she said the bank was promoting industrialisation on the continent and was facilitating the emergence and expansion of industrial parks and special economic zones (SEZs) in Zambia and the DRC.

“We are working on a framework agreement for SEZs for the production of batteries, electric vehicles and accessories and we will facilitate the commencement of studies to facilitate the development of this facility,” said Doherty.

According to a BloombergNEF study, the DRC is a favourable location for producing sustainable battery materials for high-nickel batteries owing to the country’s abundant cobalt resources and access to hydroelectric power.

The study, which was supported by UNECA, Afreximbank, the African Development Bank, the Africa Finance Corporation, the Arab Bank for Economic Development in Africa, the African Legal Support Facility, and the UN Global Compact, suggests that battery precursors produced in the DRC would be cheaper, environmentally sustainable and more competitive than material produced in China, the US and elsewhere.

The report estimates the global market opportunity for EVs at $7-trillion by 2030 and $46-trillion by 2050.

Jean-Marie Kanda from the University of Lubumbashi highlighted that African countries needed to own such projects and commit investment and appropriate funding for research on the battery technology.

“Africa needs to develop standards as far as batteries are concerned. We need to focus on the assembly of these batteries and focus on mineral exploitation as well as on recycling,” he said.

UNECA senior economist Jean Luc Matsaki Namegabe told participants that the DRC presented an opportunity in the development of electric batteries and vehicles not to be missed because it would move Africa up the value addition ladder as Africa was the only region that did not manufacture electric batteries.

Abdou Moumouni University West African science service centre in climate change and adapted land use director Rabani Adamou said that, by promoting the development of mineral value chains, African countries must invest in research and development to understand the exploitable quantity of the minerals.

African Minerals Development Center interim director Marit Kitaw said the battery and EV initiative was a huge opportunity for Africa, which had triggered a huge surge of investment coming into Africa for green minerals.

She added that the centre was in the process of developing a mineral strategy for Africa and called for the institutionalisation of the initiative as well as harnessing of innovative financing for its realisation.

Pedro described the initiative as one of the most transformative projects for Africa, noting that it has received wide publicity and interest.

He also called for the development of an ecosystem that taps capacities, expertise and partnerships that exist in Africa.

Efforts to evade a US$234 500 debt by Marange Resources Pvt Ltd flopped after the High Court said the company cannot be excluded from the claim given existing facts.

The company has not yet been ordered to pay the amount but High court judge Justice Bongani Ndlovu ruled that it must explain its defence against the evidence of the complainant Brandon Bowen.

Bowen issued a summons in his individual capacity in 2016 claiming payment of US$234 500 plus costs of suit from Marange Resources.

The claim was for unpaid security services Bowen had allegedly rendered to the mining company.

Defendant defended the action.

Bowen told the court that he was contracted by Marange Resources’ predecessor, Canadel (Pvt) Ltd sometime in 2009 to provide men on horses security services in the mining fields of Marange.

When Canadel left the mining fields Marange Resources took over, and the contract which was predominantly oral, tacitly relocated to the company in that Bowen continued providing the security services and continued engaging the Accounts Department personnel of the company who coincidentally had been with Canadel previously, regarding payment of the outstanding bill.

The communication was through emails.

In some instances, Marange Resources personnel negotiated varying amounts for the security services and even paid him for the service.

For Marange Resources’ audit purposes, Bowen was classified by the company as its creditor.

The money paid to him was deposited into Two Mile Trading (Pvt) Ltd /Two Mile] bank account.

Bowen is one of the directors in the company.

On one occasion a payment was made into Bowen’s father’s bank account.

The court heard these payments to third parties were done with the knowledge and consent of the company because Bowen did not have a personal bank account.

The amount claimed was not disputed as well as the engagements between the parties.

However, in its plea Marange Resources denied entering into an agreement with Bowen.

It stated that Bowen was wrong in his view that Canadel “turned into” Marange Resources.

The company said Bowen must direct his claim to Canadel.

Marange Resources also denied ever making any clear or unequivocal acknowledgement of debt with respect to Bowen’s claim.

The company said Bowen entered into a contract for the provision of security services with an entity called Two Mile which is not a party to these proceedings and wanted his application trashed.

The judge however ruled otherwise.

“In this matter having considered the pleadings filed of record, the evidence adduced by the plaintiff, and the cross-examination that ensued, I find that this is not a case fit for absolution from the instance.

“Plaintiff has tried to explain why the payments made to him by Defendant were made into third parties’ bank accounts.

“Whether or not that explanation sustains his claim is not to be decided at this stage of the trial.

The judge said Marange Resources has to explain its defence against the evidence of the plaintiff and pleadings filed.

“It is trite that only when both parties have testified can a court decide on issues of fact in a matter.

“Accordingly, I find that Plaintiff has managed to establish a prima facie case upon which a reasonable court might find for the plaintiff,” said the judge.

He ruled, “It is therefore ordered as follows; The application by the defendant for absolution from the instance after the closure of the plaintiff’s case is dismissed.”

New Zimbabwe

ZIMBABWE is home to 60 different types of minerals, 40 of which have been traditionally exploited to varying degrees.

Platinum group metals (PGMs), chrome, gold, coal, and diamonds are the main minerals. Other minerals found in the country include gemstones, granite, manganese, lithium, asbestos, iron ore, copper, nickel, cobalt, limestone, coal-bed methane (CBM) and rare earth minerals.

With over 2,8 billion tons of PGM and 10 billion tonnes of chromium ore, the nation has the second-largest platinum deposit and high-grade chromium ores in the world. Approximately 12% of the nation’s gross domestic product is made up by this sector (GDP).

The government estimates that by 2023, the industry will have the capacity to produce US$12 billion annually. However, analysts have cautioned that this is anticipated to occur if only the government addresses issues including ongoing power outages, a lack of foreign currency, and policy uncertainty.

Low foreign exchange retention requirements have presented difficulties for mineral exporters, especially when the black-market exchange rate significantly deviated from the official rate and encouraged smuggling.

According to Mthuli Ncube, Minister of Finance and Economic Development, the mining industry was predicted to grow by 10% in 2022, up from the mid-year prediction of 9,5%. This is primarily caused by the anticipated rise in the production of coal, PGMs, chrome, nickel, diamond, and gold, which is supported by record-high global commodity prices and increased investments in the industry.

The prognosis predicts that the mining industry would expand by 10,4% in 2023, supported by expected high worldwide mineral prices and an increase in investments, particularly in exploration, mine development, and mechanization.

Due to new mining activities that are currently being explored, the sector is anticipated to continue growing in the medium term, until 2025.

Gold, PGMs, chromium, coal, diamonds, lithium, nickel, black granite, copper, silver, and asbestos are the most mined minerals in Zimbabwe.

Below, we briefly examine them.

Gold

One of the most mined minerals in Zimbabwe is gold. According to the Ministry of Mines and Mining Development, gold has been mined and explored in Zimbabwe since ancient times. From the seventh century until the introduction of mechanized mining techniques with the arrival of Europeans about a century ago, it is estimated that a third (or about 700 tonnes) of all historical gold production was mined locally.

According to the Ministry, there are more than 4000 documented gold deposits, almost all of which are situated on historic workings.

Due to new mining ventures, prompt payments, and incentives for miners, Zimbabwe’s gold output increased to a new record high of 35,38 tonnes in 2022.

Statistics from Fidelity Gold Refinery, the only buyer of gold in the nation, show that the output increased by 19,5% from the previous year.

According to the Reserve Bank of Zimbabwe, the country in southern Africa possesses the second-largest gold reserves per square kilometre in the world, with 13 million tonnes of confirmed deposits, only 580 tonnes of which have been used since 1980.

Top gold producers in Zimbabwe include Freda Rebecca, which is near Bindura’s Trojan Nickel mine, Blanket Mine in the province of Matabeleland South, Rio Zimbabwe, Metallon Corporation, Sabi gold Mine, Falcon Gold, Pickstone Peerless, Duration Gold Mine, Bilboes Holdings, and Eureka Gold Mine.

Small-scale producers currently lead the sector.

Platinum Group Elements

Due to their numerous industrial applications, PGMs, which include platinum, palladium, rhodium, ruthenium, iridium, and osmium, are in high demand all over the world. The second-largest platinum reserves in the world are found in Zimbabwe’s Great Dyke, a linear early Proterozoic layered mafic-ultramafic intrusion trending over 550 km with a maximum width of roughly 11 km.

According to the Ministry of Mines, the Dyke is home to an estimated 2,8 billion tonnes of PGM ore grading 4g per tonne. Notably, only in the South African Bushveld and along the Zimbabwean Great Dyke are PGMs exploited as primary metals.

PGM mineralization was discovered in the Great Dyke in the early 1920s.

Between 1925 and 1926, there was a surge in PGM prospecting as a result of these documentations and the discovery of PGMs in the Merensky Reef of the South African Bushveld Complex, leading to the discovery of the Wedza Mine. Numerous businesses have engaged in exploration since the 1950s. Global Platinum Resources and CAMEC (Todal Mining) are now conducting platinum exploration on the Great Dyke in the Bougai region of Shurugwi and Chegutu, respectively.

The Mimosa, Ngezi, and Unki Platinum Mines are currently operating as mines. Exploration and assessment of Zimbabwe’s platinum deposits have increased due to the demand for PGMs.

Diamonds

In Chiadzwa, Mutare West, Zimbabwe, there is extensive small-scale diamond production in the Marange diamond resources. According to the Ministry of Mines, more than 120 kimberlites have been found, but only two deposits—the River Ranch and the Murowa Diamond Mines—had economically significant grades.

According to the Ministry of Mines, evaluation is now being done on a number of kimberlites in the country’s southern region, however, some were discovered to be non-commercial. Recently, many diamond mines in the Chiadzwa region have opened as a result of the finding of diamondiferous Proterozoic conglomerates in the Umkondo basin, including Mbada, Marange Resources, and Anjin.

According to the Chamber of Mines, the production of diamonds was predicted to increase by 19% last year to five million carats from the 4,2 million produced in 2021. As part of an ambitious goal to enhance mining output and bring in US$12 billion annually, Zimbabwe anticipates increasing diamond production to 11 million carats by 2023.

Chrome

In addition to diamonds, platinum group metals, and gold, chrome is one of Zimbabwe’s principal exports. With deposits of roughly 10 billion tonnes, the nation contains the second-largest high-grade chromium ores in the world, behind South Africa. Chrome is primarily mined from the seam and stratiform deposits along Zimbabwe’s Great Dyke. It can be found as serpentinites with podiform structures in greenstone belts away from the dyke, such as in the Zimasco mine on Shurugwi Mashava.

In Mashava, south of Mberengwa in the Limpopo mobile belt, chromium is discovered in the remains of greenstone. In the greenstone zones, chrome can be found as alluvial deposits as well. Chrome is primarily utilized in the manufacture of stainless steel, as a metal coat, in the chemical sector, and metallurgical procedures.

Coal

Zimbabwe began producing coal in the early 1900s and is thought to have 25 billion tons of coal reserves. Large amounts of high-grade coal that have been fossilized can be found throughout the nation. Lower Karoo sediments contain it. About 12 billion tonnes of high-quality coal are found in the middle Zambezi basin in the north and the Save Limpopo basin in the south of the nation.

In the province of Matabeleland North, where businesses like Hwange Colliery, Makomo Resources, and Zambezi Gas are active, Zimbabwe can boast of enormous coal resources. The amount of coal produced this year is predicted to increase to 15 million tons as new producers come online and older ones increase their output. Chilota Colliery, Western Coal, and Liberation Mining are the newest miners.

Nickel

According to the Minerals Marketing Corporation of Zimbabwe, nickel is only processed at Bindura, where the Trojan mine is located and is currently produced commercially at two mines, Shangani and Trojan. Less than 8 kilometres to the south of the Bindura town centre is where you’ll find the Bindura Smelting and Refinery.

Nickel is found in Zimbabwe’s Archean craton in komatiitic-composed rocks, such as those found at Trojan Mine. For Empress, Madziwa Great Dyke, it also seems to be stacked or unlayered mafic-ultramafic intrusive bodies. It can also be found in nickel laterite deposits, such as those in the northern Great Dyke hydrothermal shear zone.

Around the nation, there are nickel deposits in a number of serpentinite regions in greenstone belts with igneous complexes. The country has got huge potential in komatiite and laterite and more than 30 nickel deposits are known.

Asbestos 

Chrysotile is one kind of asbestos. It can be found in enormous serpentinites, slip fibre zones, and ultramafic complexes that are packed with matted fibres in the Great Dyke, such as the Mashava Igneous Complex and the Ethel mine. 60 deposits have been worked on for chrysotile and are dispersed throughout the Masvingo, Insiza, Gwanda, Mberengwa, and Shurugwi.

Prior to the demand reduction, Zimbabwe was the third-largest producer of asbestos in the world. Asbestos used to be the second-largest revenue generator in the mining industry, behind gold. Gaths Mine and Shabani Mine were closed, which put an end to production.

One of the largest asbestos miners, Shabanie-Mashava Mines (SMM), has made repeated failed attempts to restart operations. Even now, the mine’s production hasn’t been started, despite plans to do so in September 2019 when the dewatering of flooded shafts was finished. SMM is thought to possess asbestos reserves worth more than US$1 billion, and if the company’s mines are reopened, they will generate roughly 75,000 tonnes of high-grade fibre, largely for export. 

Copper

In Zimbabwe, there are more than 70 copper deposits that have generated copper as a primary or secondary product. The Magondi Basin, which spans more than 150 kilometres, has been the primary producing region. Similar copper resources can be discovered in the Umkondo Basin in the southeast of the nation. Numerous copper possibilities can also be found in hydrothermal formations in granite and Archaean Greenstone Belts, such as Inyathi and Copper Duke. After Mhangura was shut down, primary copper production all but halted. Current PGM, gold, and nickel operations are connected to copper production. There is still a huge amount of exploratory potential, it is thought.

Copper production has been declining in recent years because of the depletion of known reserves and low exploration expenditure levels, according to the Chamber of Mines of Zimbabwe.

Black granite

An estimated 150 000 tonnes of granite are produced in Zimbabwe each year, with the Mutoko district producing roughly 75% of the total amount of black granite. Ilford Red, Natural Stone, CRG, Zimbabwe International Quarry, and the province of Mashonaland East’s Mutoko Granite Mining Company are a few of the businesses that mine granite there.

Silver

Silver is the other resource that has primarily been mined in Zimbabwe. According to the Mines Ministry, silver is found naturally in combination with other minerals including gold, copper, and lead. It is classified as a by-product of the mining of platinum, gold, and copper, with the exception of the Osage Mine in Zimbabwe. The highest silver-to-gold ratios can be found in the gold deposits of the Odzi greenstone belt. The locations of the mineral are mostly Makoni, Makonde, and Kwekwe. 

Lithium

Zimbabwe is the sixth-biggest producer of lithium in the world and is thought to have the greatest untapped resource in Africa. The greatest lithium mines in the nation are found at the Bikita mine, which is 308 kilometres south of Harare, the capital.

Other lithium mines include Kamativi Lithium Mine, Sabi Star Lithium Mine, MIRRORPLEX Lithium Project, Zulu Lithium and Tantalum Project, Step Aside Lithium Project, Kamativi Lithium Project, and Arcadia Lithium Mine, which is expected to produce 2,5 million tonnes of lithium ore per year.

According to the Ministry of Mines and Mining Development and the Minerals Marketing Corporation of Zimbabwe, the areas with confirmed lithium deposits in Zimbabwe are Goromonzi, Mudzi, Buhera, Bikita, Chegutu, Hwange, Harare, Insiza, Rushinga, Mutoko, Mutare, and Hwange. However, lithium is still being found in numerous locations all around the nation. The mineral has so far been found in locations including Mberengwa, Shamva, Bindura, and Kadoma.

Due to its high electrochemical potential, lithium has emerged as a crucial component in the production of high energy-density rechargeable batteries as the world moves toward clean energy, particularly electric mobility.

Since lithium-ion batteries are now 30 times less expensive than when they initially entered the market in the early 1990s, battery manufacturers believe that they will continue to dominate the sector.

This issue first appeared in the Mining Indaba issue of the Mining Zimbabwe magazine.