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Mining giant to pay US$180m to cover corruption claims

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Mining giant to pay US$180m to cover corruption claims

Glencore has agreed to pay $180m to the Democratic Republic of the Congo (DRC) to cover corruption allegations, the latest payment in a series of graft cases it has faced worldwide.

The Anglo-Swiss mining company said on Monday that the settlement with DRC covers “all present and future claims arising from any alleged acts of corruption” by the Glencore Group between 2007 and 2018.

It comes months after Glencore announced deals with authorities in the United States, Britain and Brazil to pay a total of $1.5bn to resolve all accusations of corruption and market manipulation.

The US Justice Department said in May that Glencore paid more than $100m to intermediaries over 10 years, “intending that a significant portion of these payments would be used to pay bribes to officials” in Nigeria, Cameroon, Ivory Coast, Equatorial Guinea, Brazil, Venezuela and Congo.

In DRC, Glencore acknowledged that it paid $27.5m to third parties with the goal that a portion be used to bribe Congolese officials to secure improper business advantages, according to the Justice Department.

“Glencore is a long-standing investor in the DRC and is pleased to have reached this Agreement to address the consequences of its past conduct,” Chairman Kalidas Madhavpeddi said in a statement on Monday.

The company “looks forward to continuing to work with the DRC authorities and other stakeholders to facilitate good governance and ethical business practices in the country,” he added.

Last month, a British court ordered Glencore to pay more than 280 million pounds ($341m) for using bribes to bolster its oil profits in five African countries.

It pleaded guilty in June after an investigation launched by the United Kingdom’s Serious Fraud Office in 2019 found it paid bribes worth a combined $29m to gain access to oil in Cameroon, Equatorial Guinea, Ivory Coast, Nigeria and South Sudan.

Cat electrifies the 793 dump truck

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Cat electrifies the 793 dump truck

Caterpillar has staked its claim to leadership in mining sustainability with the successful demonstration of a battery-electric large mining truck at its proving grounds in Arizona – a site that will itself be the focus of major investments to incorporate sustainable operations moving forward.

The demo of a battery-electric 793 mining truck is one of numerous electric projects that Caterpillar is working on – it announced both its own battery prototype and four models of battery-electric prototypes in October. This test of the 252-ton (US) truck was part of Cat’s Early Learner program, which includes key mining customers to help accelerate development and validation of battery electric trucks.

“Our global team came together to develop this battery truck at an accelerated pace to help our customers meet their sustainability commitments,” said Resource Industries Group President Denise Johnson. “This demonstration is a significant milestone, and we are excited for these trucks to get to work at customers’ sites around the world in the near future.”

Cat’s Early Learner customers watched a live demonstration of the prototype 793 on a seven-kilometre course at the Tucson Proving Ground in Green Valley, Arizona, where it was built. The demo saw the 793, fully loaded to its rated capacity, achieve a top speed of 60 km/h (37.3 mph). It also climbed a 10 percent grade at 12 km/h (7.5 mph) for one kilometre, as well as a one-kilometre run on a 10 percent downhill grade to capture energy that would normally be lost to heat and regenerating the energy to the battery.

After the run, the truck held enough battery energy to perform additional complete cycles, Cat reported.

Cat’s Early Learner program started in 2021 and is focused on accelerating development and validation of battery-electric trucks at participating customer sites. A key objective is collaboration – working with clients who have made commitments to reduce and eliminate greenhouse gas emissions in their operations aids in advancing developments that support the energy transition.

HEG

UK-listed company plans thermal coal exports from Zimbabwe

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UK-listed company plans thermal coal exports from Zimbabwe

Contango Holdings plans to start exporting thermal coal early next year from its Zimbabwe mine following requests from customers in Europe and Asia, the company said last week Wednesday.

Zimbabwe’s neighbour South Africa saw an eight-fold increase in coal exports to Europe during the first half of 2022, after the European Union banned coal imports from Russia as part of sanctions for its invasion of Ukraine.

Coal prices had started rising even before the conflict as some European countries switched away from expensive natural gas to coal, despite global commitments to move away from the polluting mineral.

Contango owns 70% of the Lubu project in western Zimbabwe’s coal-rich Hwange district. The company’s main focus is supplying its low-sulphur coking coal to the southern African Ferro alloy and industrial markets, but it has found current prices of thermal coal – used in electricity generation – attractive.

The company said it had received “unsolicited approaches” for thermal coal from buyers, ranging from trading houses to industrial consumers, in Africa, Europe and Asia.

“Fuelled by the dramatic rise in thermal coal prices over the past 12 months … the board are now considering a coking and thermal operation, delivering 10 000 tonnes of coking coal and 10 000 tonnes of thermal coal per month based on current capacity in H1 2023,” Contango said in a statement.

Contango, which plans to increase its annual output to 300 000 tonnes by the end of 2023, said it had recently raised £7.5-million through a private placement to fund its operations.

Mining weekly

Diamond miners now paying half royalties in rough stones

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Diamond miners now paying half royalties in rough stones

Diamond miners in Zimbabwe are now paying half their royalties to the government in rough stones, 40 per cent in local currency and 10 per cent in foreign currency.

Sophia Takuva

Finance Minister Mthuli Ncube gave details of the new policy last week, saying the government needed to build its national reserve of precious stones and metals, including gold, platinum and lithium.

It previously accepted 100 per cent cash payments from mining companies for royalties (the right to extract mineral resources).

“We cannot, as the present government, and as the current generation, run and manage finite resources profligately, without any regard for generations yet and sure to come,” said President Emmerson Mnangagwa in a weekly newspaper column.

Zimbabwe has huge mineral resources, largely untapped, but has been blighted by economic difficulties and inflation that is currently running at 255 per cent.

Idex

WATCH: Nomore raw lithium exports, President Mnangagwa

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WATCH: Nomore raw lithium exports, President Mnangagwa

WATCH: Nomore raw lithium exports, President Mnangagwa. President Mnangagwa singled out Mberengwa as a hotspot zone for illegal lithium exports.

Video credit: ZTN

Mberengwa leadership, community welcome ZMF

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Mberengwa leadership, community welcome ZMF
  • Lithium is expected to trade at US$83 959.41/t by the end of this quarter
  • How miners from Mberengwa are going to be beneficiaries of the lithium mining tribute
  • Cartels were buying Lithium at paltry amounts

In an effort to see communities benefiting from minerals found in their areas, the Mberengwa community has welcomed Kuvimba’s initiative to tribute Zimbabwe Miners Federation (ZMF) members to mine at its Sandawana mineral-rich Mwezha range.

On Thursday the Mberengwa/ Zvishavane local leadership comprising of four chiefs namely Chief Mahlebadza, Chief Mudavanhu, Chief Chingoma and Chief Mposi met at Mberengwa Rural District Council Offices to map the way forward on responsible mining in Mberengwa.

The meeting came after the Joint Operation Command (JOC) led by Hon Larry Mavhima visited Sandawana’s claims on the eve of the ZMF tribute to access the situation on the ground. JOC was informed that operations will commence once the registration of miners has been done and toilets constructed.

The meeting was called at the behest of the District Development Coordinator (DDC) for Mberengwa Mr Hlabati to map a way forward as to how miners from Mberengwa were going to be beneficiaries of the mining tribute. In attendance was the ZMF leadership led by President Henrietta Rushwaya and Midlands Provincial Chairman Mr Makumba Nyenje. Mberengwa Ward 29 Councillor Mr Tawina Shumba, District JOC and representatives of various interest groups including women, youths, people living with disabilities and war veterans also attended the meeting.

The Chiefs thanked ZMF for considering the plight of the locals and welcomed the ZMF engagement efforts and promised to work closely with the mining body.

The meeting also looked into developmental issues and of note was the issue of the state of the roads, bridges and other developmental issues which are making Mberengwa lag behind as a district. It was resolved that while communities were benefiting from mining the lithium in their area, part of the proceeds were going to be used for Corporate Social Responsibility (CSR) and Environmental Social and Governance (ESG) issues as a way of making sure that the whole of Mberengwa benefits.

The chiefs were happy that ZMF was considering empowering their people in the process ensuring that they solely have access to mining areas in the tribute. The Chiefs also made a clarion call for ZMF to put their people first when it comes to employment and developmental issues.

ZMF President commended the local leadership for welcoming her organization into their district and promised to work in accordance with the country’s mining legislation, ensuring that issues of responsible sourcing are well adhered to. The ZMF President also advised the gathering that the area designated for small-scale mining tribute by Kuvimba was outside Mining Lease 3. It was also made clear by ZMF that all the miners needed to get access cards to enter the mining areas.

Mberengwa DDC commended the mining body for managing the situation and bringing sanity to the Mberengwa mining area. A representative of the war veterans who were present at the meeting thanked ZMF for also ensuring that the liberation war heroes were included in issues of national development and emphasized the issue of ensuring that Zimbabwe as a country benefits from its God-given resources and the issue of value addition and beneficiation was of paramount importance towards economic revival.

There was a lithium rush by illegal miners in Mberengwa’s Sandawana area (which Kuvimba has mining rights) with more than 5000 illegal miners from across the country flooding to plunder the lithium resource.

Following the invasion, cartels emerged and were buying the resource at paltry amounts ranging from US$100 to US$150 per tonne.

Singling out Mberengwa as a smuggling hotspot President Mnangagwa said the government will gazette a law to ban exports of raw minerals and concentrates to enable the country to fully benefit from its mineral wealth.

Lithium Sales

Despite the unprecedented global disruption precipitated by the COVID-19 pandemic, 2020 and H1 2021 saw a revival in market sentiment for lithium with allied rebound in demand and prices.

In H1 2021, lithium product prices continued their upward trajectory, by June 2021 prices continued to be strong with lithium carbonate and lithium hydroxide both at US$13,500 and US$15,000 per tonne respectively. This trend has continued into Q3 2021, with Fastmarkets reporting prices of US$14,000 and US$15,500 per tonne respectively in July 2021.

Lithium is expected to trade at US$83 959.41/t by the end of this quarter, according to Trading Economics global macro models and analysts expectations and is estimated to trade at US$87 143.65 in the next 12 months.

Minister Chitando impressed by Invictus oil project

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Minister Chitando impressed by Invictus oil project

The progress of Australia Stock Exchange-listed Invictus Energy’s Mukuyu oil and gas project in Muzarabani has Minister of Mines and Mining Development Hon Winston Chitando optimistic that the project will be a game changer to economic revival.

Rudairo Mapuranga

The company has reached the 4km depth target plus a 1km horizontal for the main well and is now drilling parallel holes along the main well to enhance evaluations.

Speaking during his official visit to the project to have a more detailed understanding  Hon Chitando said the work which has taken place at the Mukuyu Prospect is positive and the government was looking forward to an exciting future.

He also said that President Emmerson Dambudzo Mnangagwa’s open-for-business mantra has made it possible for the country to attract risk capital.

“We have come here to visit Invictus project first sight where they are drilling the first well. We came here to appraise ourselves of the progress which is taking place in the sinking of the Invictus oil and gas project. The results which were released recently by Invictus were positive and we have always been positive from day one that the oil and gas project in this basin is going to yield positive results which will help in the turnaround of the economy. The President’s open-for-business mantra has enabled to help risk capital to flow in.

“The work which has taken place to date is very positive as per their statement and we are looking to a positive result where Zimbabwe will be a hydrocarbon producing country from oil and gas perspective,” Hon Chitando said.

Speaking during the visit Minister of State in the President’s office Hon Monica Mavhunga said the project was a game changer for the province and the government was taking necessary steps to support the project.

“I’m very excited to hear that they have drilled 4km and as a province, we are very excited. This project is a game changer to our province and as the government, we are already putting necessary measures to ensure the project is a success once oil is discovered,” Mavhunga said.

Invictus said the project was on track towards oil and gas discovery and it has received tremendous support from the government.

“We are on track, it’s slightly longer than expected, logistics have been tough but the government has been supportive,” he said.

Official gold buying prices Wednesday 30 October 2022

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Official gold buying prices Wednesday 30 October 2022

Fidelity Gold Refinery (FGR) official gold buying prices Wednesday 30 October 2022.

SG 90% AND ABOVE US$53.53/g
SG ABOVE 85% BUT BELOW 90% US$52.68/g
SG ABOVE 80% BUT BELOW 85% US$52.12/g
SG ABOVE 75% BUT BELOW 80% US$51.56/g
SAMPLE BELOW 10g BUT ABOVE 5g US$50.71/g
FIRE ASSAY CASH US$53.53/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.

Parly unhappy with Mines budget allocation

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Parly unhappy with Mines budget allocation

Portfolio Committee on Mines and Mining Development members yesterday expressed disappointment with the paltry $12,9 billion 2023 allocated to the Ministry of Mines and Mining Development (MMMD) by the Finance Ministry for the 2023 financial year.

Sophia Takuva

The MMMD initially requested $53 billion but only received 20% of the total.

In his statement to members of Parliament MMMD, Permanent Secretary Mr Pfungwa Kunaka admitted that the allocated funds were insufficient but nevertheless applauded the Ministry of Finance that it did try to meet their requirements.

“We feel that this 20% is not sufficient, but we want to applaud the Ministry of Finance that it did try to meet the requirements of the Ministry of Mines and Mining Development,” Kunaka said.

This, however, did not go down well with Members of Parliament (MPs), with Mbizo MP Settlement Chikwinya asking Kunaka why he was happy with the 2023 budget when the Ministry has an 80% budget deficit and is failing to cater for small-scale miners who constantly lose their lives due to lack of equipment.

“My feeling is that you are satisfied despite the 20% allocation against a 100% bid you had put. I think you are comfortable with the 20%. Within your comfort, you have not expressed how you are going to take care, or rather (prevent) accidents that have been happening in the year 2022 whereby artisanal small-scale miners lost their lives and were found wanting because they did not have equipment.”

Rushinga legislator Tendai Nyabani said it was surprising that the Ministry was mum about mine accidents and the shortage of vehicles and furniture in its offices.

Kunaka said as an ex-treasury employee he appreciated any budget increase taking into account that the allocated funds were twice what the MMMD got for the 2022 year.

“I say this because we are comparing the allocation we had in 2022, which was around $6,5 billion. I once worked for Treasury and if there is an increase in the budget we become grateful,” he said.

Despite the Mines Ministry presiding over a sector that’s leading in foreign currency receipts it remains poorly funded with basic office utilities like computers, printing paper, and office furniture in a poor state. The Ministry is also short of vehicles which are a necessity in Mine inspections for Mining Title issuance. Meeting the Ministry’s budget would go a long way in ensuring it is well-resourced as the country pushes towards the 12 billion dollar Mining Industry by December 2023.

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