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Unki takes ZIMRA to court over a $24 million dispute

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Unki takes ZIMRA to court over a $24 million dispute

Unki Platinum mine has taken the Zimbabwe Revenue Authority (ZIMRA) to court over a $24 million royalty dispute, court documents seen by Reuters show.

Unki filed an urgent application at the high court on Sept. 9 to stop ZIMRA from seizing the money from the miner’s bank account, which ZIMRA claims is the value of royalties it is owed by the wholly owned Amplats subsidiary.

In its court application, Unki said it had paid the disputed outstanding royalties in Zimbabwe dollars on July 29, but ZIMRA has insisted the payment should be in foreign currency.

A ZIMRA spokesperson said they were not able to provide an immediate comment.

Zimbabwe currently allows foreign currencies to circulate in the economy alongside the local dollar.

In 2020, the government ordered miners to pay royalties in foreign currency. Although that rule was relaxed in February 2022 to allow mining companies to pay 50% of their royalties in local currency, Unki argues the Zimbabwe dollar should be able to be used to pay all taxes and royalties.

The Anglo American Platinum (Amplats) unit said ZIMRA’s move was “unlawful” and threatened its business as it is unable to trade, pay suppliers and purchase raw materials.

“The consequence is that the applicant has been locked out of its bank accounts with devastating consequences,” Unki said in its application.

Unki and ZIMRA have been embroiled in a dispute over royalties since 2018 when a special mining agreement with the government allowed it to calculate its royalties after deducting expenses.

The two parties have sparred over the calculation of royalties, with ZIMRA insisting that Unki should pay royalties on the gross value of refined minerals. Unki, however, says it only produces concentrates, not refined metals, and sells these to refiners in South Africa.

The $24 million that ZIMRA claims as underpaid royalties by Unki arises from the two parties’ different interpretations of the tax regulations, leading to different calculations.

Mining.com

SA launches a R50 million Jagersfontein relief fund

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SA launches a R50 million Jagersfontein relief fund

The Minerals Council South Africa has launched an internal emergency Jagersfontein Relief Fund for its members to contribute towards urgent humanitarian assistance, the clean-up of the affected area, and to assist with the reconstruction of infrastructure after the collapse of a tailings dam at the Free State town.

Minerals Council President, Nolitha Fakude, CEO, Roger Baxter, and the Council’s senior executives have been in regular engagement with Mineral Resources and Energy Minister Gwede Mantashe, Chief Inspector of Mines, David Msiza, and the Department Director-General, Jacob Mbele, about possible assistance the industry could provide affected communities.

While the owners of the Jagersfontein assets are not Minerals Council members, the Council sent a senior technical team to the site on Monday to assess the damage and establish what the industry could do to assist families and the affected communities.

Council President visited the site with Minister Mantashe to gain first-hand insight into the tragedy and to guide the Minerals Council’s relief efforts. “Based on our assessment of the situation, we believe urgent steps must be implemented to provide emergency assistance, including contributing funds to provide
food aid and shelter, to assist in the clean-up and contribute to some rebuilding for those affected by the disaster,” says Fakude.

The Minerals Council set a target of R50 million for the Jagersfontein Relief Fund and it has requested contributions from its member companies and associations. The funds will be administered by the Minerals Council, which will be accountable to its Board on how they are spent. An additional request was made for Minerals Council members to provide temporary shelters and other forms of assistance, where practically possible.

Mining Review Africa

Fidelity Gold Refinery gold buying prices 15 September 2022

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Fidelity Gold Refinery gold buying prices 15 September 2022

Fidelity Gold Refinery (FGR) official gold buying prices Thursday 15 September 2022.

SG 90% AND ABOVE US$52.04/g
SG ABOVE 85% BUT BELOW 90% US$51.22/g
SG ABOVE 80% BUT BELOW 85% US$50.67/g
SG ABOVE 75% BUT BELOW 80% US$50.12/g
SAMPLE BELOW 10g BUT ABOVE 5g US$49.30/g
FIRE ASSAY CASH US$52.04/g

NB: Fire Assay cash price is for gold above 100gs and no sample is deducted.
For FireAssay Transfer price, a sample of not more than 10g is deducted
2% royalty is charged on all deposits (Small-scale Miners)
5% royalty is charged on Primary Producers

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

4 months later, Mashwest still to issue Blitz certificates

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4 months later, Mashwest still to issue Blitz certificates

In an effort to clear mining title backlogs that were dating back to 2017 the Minister of Mines and Mining Development Hon Winston Chitando deployed teams to affected provinces starting with Midlands and Mashonaland West Provinces.

Rudairo Mapuranga

The blitz teams were deployed to quicken survey inspection and reports so that miners timely receive their certificates to be able to commence regularised mining.

However, investigations done by Mining Zimbabwe seem to conclude that although the Minister had sent teams in Mashonaland West to make sure that the backlog has been cleared even with the province receiving 10 cars for the backlog clearing blitz, little to no certificates have been issued so far prompting fears that the Minister’s efforts for the mining industry to achieve a US$12 billion mining industry by 2023 are not being taken seriously.

According to a quantitative analysis done by this reporter from a sample of 312 people who were supposed to receive certificates under the Blitz program, no one has yet received a mining certificate in Mashonaland West and of the 99 people interviewed by this reporter in Midlands only 25 could not confirm whether they received certificates or not.

According to this sample research, this makes Midlands backlog clearing over 60 per cent while Mashonaland West still stands at zero. The miners from Midlands who spoke to this reporter said they received the certificates two weeks after an inspection was conducted at their claims.

The researcher is perplexed as to whether it was only coincidental that MashWest seems to be on zero per cent or the province’s inaction is potentially sabotaging the vision or it is just inapt to compliment the Minister’s efforts.

However, when Mining Zimbabwe visited Mashonaland West Province, the Provincial Mining Director (PMD) Sibongile Mpindiwa said the certificates were being issued maybe not at the desired rate by miners. She said Mashonaland West Province has been under pressure that’s why it was struggling to deal with backlogs.

She said allegations being made by miners that no single person is yet to get certificates from the Blitz are non-founded. She said her office was strategizing on how to increase the numbers because the province has a backlog that surveyors did through Mines Minister Chitando’s backlog clearing blitz.

It should be noted that Midlands Province reportedly had a backlog above that of Mashonaland West and has been able to cope with the pressure at least for now.

Mashonaland West Province before the backlog clearing Blitz was reported to have around 8000 title backlog with reports indicating that over 65 per cent of the people who are yet to get mining titles are already operating. This, therefore, means that without certificates many people although producing gold and other minerals may not be selling through formal markets leading to leakages, and potentially depriving the country of much-needed foreign currency.

Second batch of gemmology classes training rolled out

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Second batch of gemmology classes training rolled out
The second batch of gemmology and lapidary online classes under the Zimbabwe School Mines is underway. The training is being spearheaded by Eng. Clever Sithole who came up with the initiative upon noticing the skills gap within the Zimbabwe mining industry.
The shortage of gemological and lapidary skills in Zimbabwe has impacted negatively on the crucial interventions required to accurately unlock value from Zimbabwe’s gemstones and diamonds. After successfully launching the Silk Road Heart Gemological and Lapidary Centre in Afghanistan, Eng Sithole decided to collaborate with the Zimbabwe School of Mines so that the country can nurture its talent. The first batch of trainees completed its course in August 2022.
Zimbabwe is one of the biggest rough diamond and coloured stones producers in the World, and we continue to lose a lot of revenue through raw gemstone exports.
As part of the government’s economic blueprint, a Gemological and Lapidary Centre was envisaged to be launched in Mutare but to date, nothing has been done.
Eng Sithole obtained training in gemstones and diamonds in Belgium, Switzerland, Spain, India, South Africa and was also trained by the Gemological Institute of America. He is the first Career gemologist from Africa.
Speaking to Mining Zimbabwe on the line from Ghana where he is based, Eng Sithole said he will come to Zimbabwe and practically conduct complementary training for the benefit of the gemstone producers in Zimbabwe.

BREAKING: Midlands PMD, Tariro Ndlovu exonerated

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BREAKING: Midlands PMD, Tariro Ndlovu exonerated

Midlands Provincial Mining Director (PMD) Tariro Ndlovu who was arrested last week was exonerated by the court on Friday as it found no basis to even proceed with the trial.

Anerudo Mapuranga

The court found that Ndlovu was not the right person to put on trial as he did not preside over the case which he was arrested for. The court concluded that this case was in 2014 and Ndlovu joined the Mines and Mining Development Ministry in 2018, it was impossible for him to preside over a 2014 case.

The Police were reprimanded by the prosecution and told to do a better job before arrests.  The police were told that in the case of Ndlovu they did not follow procedure as they arrested him to investigate which was outside the law, the police should have arrested him after all investigations were exhausted.

The Police were also asked why they are not arresting the Minister of Mines and Mining Development because Ndlovu’s position is the Ministry’s point.

As disputes increase across the country it is essential that the Mines Ministry speeds up the Cadastre system as they claim it is the solution to the eradication of conflicts.

After the news broke of Ndlovu’s arrest Mining Zimbabwe received several calls from shocked Miners hailing from Midlands.

“Gweru Ministry of Mines is a much better place since this guy took over. You know how bad things were before him. We appreciate the fight against corruption but this sounds suspicious, so sad,” a trusted source said.

Zimbabwe official gold buying prices Monday 12 September 2022

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Zimbabwe official gold buying prices Monday 12 September 2022

Fidelity Gold Refinery (FGR) official gold buying prices Monday 12 September 2022.

SG 90% AND ABOVE US$52.33/g
SG ABOVE 85% BUT BELOW 90% US$51.50/g
SG ABOVE 80% BUT BELOW 85% US$50.95/g
SG ABOVE 75% BUT BELOW 80% US$50.40/g
SAMPLE BELOW 10g BUT ABOVE 5g US$49.57/g
FIRE ASSAY CASH US$52.33/g

NB: Fire Assay cash price is for gold above 100gs and no sample is deducted.
For FireAssay Transfer price, a sample of not more than 10g is deducted
2% royalty is charged on all deposits (Small-scale Miners)
5% royalty is charged on Primary Producers

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

Jagersfontein mine tailings dam collapses, several dead

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Jagersfontein mine tailings dam collapses, several dead

Dozens of people have been hospitalised and infrastructure damaged after a tailings dam of the mothballed Jagersfontein diamond mine burst on Sunday morning.

It is unclear how many fatalities have resulted from the tragedy with the latest statement from Free State emergency services putting the number of confirmed deaths at one, adjusting previous reports that three people had died as a result of the dam burst.

At midday on Sunday, SABC News cited spokesperson to the Free State Premier Palesa Chubis as saying that houses and cars were swept away in the incident. Several houses in the nearby Charlesville residential area had collapsed, the report said.

“The provincial government has activated the disaster management team and the Joint Operation Centre to determine the extent of the disaster and also carry out evacuation processes where necessary,” the spokesperson said.

“More details on what may have caused the incident will be shared at the later stage once government has received a detailed report on the incident.”

The Department of Minerals Resources and Energy is expected to send a team of inspectors to assess the extent of damage caused following a mine dam burst, according to a report by SABC News.

“The Department of Minerals and Energy has noted with concern the unfolding incident in Jagersfontein in the Free State province where flooding occurred as a result of the reported dam burst,” said Nathi Shabangu in a statement.

“The department inspectors are en route to the site and further information thereof would be communicated following investigations,” he said.

Unconfirmed reports say the tailings dam was located on a diamond mine owned by JDP Mining. The Minerals Council said it was unable to confirm the mine owner but it added it was not any of its members. The Jagersfontein diamond mine was closed in the 1970s.

“The loss of life and injuries sustained in the deluge from the collapsed dam as well as the damage to homes and infrastructure is a tragedy,” it said in a statement.

“The Minerals Council has reached out to the South African authorities to offer whatever practical support and assistance that the industry can provide regarding the Jagersfontein tragedy at this trying time.”

Residents are being evacuated from their homes while others have already moved to higher lying areas for safety.

Free State Premier Sisi Ntombela and Cooperative Governance MEC Mxolisi Dukwana are on their way to Jagersfontein to assess the situation, said SABC News.

State-owned power utility Eskom said in a separate statement it lost bulk electricity supply in the area when its Rietkuil substation was engulfed by mud and aims to restore supply to the Jagersfontein mine before the end of the day.

Tailings safety was global news in 2015 when a dam owned by the Samarco Mineracao SA joint venture between Vale and BHP in Brazil burst killing 19 people.

That was followed by an even greater trajedy when in January 2019 the collapse of the Brumadinho dam, containing waste from an iron ore mine, killed 270 people. Families of the victims were awarded $7bn after mine and dam owner Vale, a Brazilian firm, was found to be responsible.

Mx Mining

Spencer Manguwa appointed FS Mining CEO

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Spencer Manguwa appointed FS Mining CEO

Spencer Manguwa has been appointed FS Mining Chief Executive Officer (CEO).

Rudairo Mapuranga

In a statement seen by this publication, the Zimbabwe Miners Federation (ZMF) CEO, Mr Wellington Takavarasha announced that Spencer was appointed CEO of FS Mining, a special purpose vehicle for the Henrietta Rushwaya-led organisation.

“This memo serves to announce the appointment of Spencer Manguwa as the FS Mining Chief Executive Officer effective on the 1st of September 2022. We are eager to have Spencer on Board as he brings along 15 years of vast experience in leadership and management skills from the other companies that he has previously worked for.

“Mr Manguwa is a holder of an Honours degree in Applied Mathematics, A Master’s degree in Business Administration, an Associate Degree in Digital Business, a Diploma in Marketing, and other professional certifications. We are very grateful to have Mr Manguwa joining the ZMF Special Purpose Vehicle FS Mining,” Takavarasha said.

Popularly known as Spencer, Manguwa said his reign will bring tremendous change in the Artisanal and Small-scale Mining (ASM) formalization revolution.

In an interview with Mining Zimbabwe, Spencer said FS Mining will push to ensure that the ASM sector achieves zero harm and contribute significantly to the US$12 billion revenue by the end of 2023.

“FS will ensure that we promote the Medium and small scale miners through capacitation both from skills and technical point of view. FS will play a key role in identifying partners that add genuine value to miners. Proper planning and safety are some of the aspects we will push as we strive to achieve the 12 billion mining annual revenue target. We want to compliment the work that the bigger players are already doing and it is important that we see each other as partners as we aim to achieve the NDS1,” Spencer said.

Arcadia lithium mine to start exports next year

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Arcadia lithium mine to start exports next year

China’s Zhejiang Huayou Cobalt’s Arcadia lithium mine will start delivering lithium-containing minerals spodumene and petalite next year, according to the local manager of the company.

Huayou, one of the world’s major producers of cobalt, last year completed a 422-million-U.S.-dollar purchase of the hard-rock lithium mine from Australia-listed Prospect Resources.

The Arcadia project, which is near Harare, the capital of Zimbabwe, is considered to be one of the world’s largest hard rock lithium resources, one of the key components used in the manufacturing of rechargeable batteries.

Construction of a full processing plant at the mining site is already at an advanced stage and has been earmarked for completion by the end of the year.

“We are targeting to complete our project by the end of the year so that we can start commissioning and production at the first quarter of 2023. As we speak, we are on course to achieve that,” said George Togara, manager of Huayou Cobalt’s Arcadia lithium mine.

In addition, he said once production starts, the project will contribute immensely to the growth of Zimbabwe’s mining sector.

“Looking at the policy or the outlook from the government to achieve 12 billion U.S. dollar mining industry by 2023, which is next year, next year we will be producing the products and exporting, so we are coming in at the right time where we are going to be playing a major role in achieving the government’s target of being a 12-billion-dollar mining industry by 2023,” Togara said.

In 2019, Zimbabwe set out an ambitious drive to more than quadruple the mining sector revenue by hauling minerals worth 12 billion U.S. dollars by 2023. The country has set an ambitious target of earning 500 million U.S. dollars from lithium exports starting next year from 2 million in 2017.

Trevor Barnard, deputy general manager of Prospect Lithium Zimbabwe, said the Arcadia Lithium project will make Zimbabwe one of the major players in the lithium value chain.

“On an annual basis, we will be mining 4.5 million tonnes of ore, and that ore will be then processed and will produce around 400,000 tonnes of concentrate and that concentrate will all be exported,” he told Xinhua.

In addition, he said the investment will make Zimbabwe one of the major players in the renewable energy value chain.

“I think Zimbabwe had got significant lithium resources and obviously from that perspective, it plays an important part within the lithium value chain and also by extension into the renewable energy value chain of which lithium is a very important component,” Barnard told Xinhua.

He disclosed that feasibility studies are being conducted to see if further value addition to the lithium can be done locally before export.

Mining is strategic to the Zimbabwean economy, accounting for more than 60 percent of foreign currency receipts annually and 13 percent of the gross domestic product (GDP).

In 2021, the country earned about 5.7 billion U.S. dollars in mineral exports, a huge leap from the 3.2 billion recorded the previous year.

Zimbabwe possesses Africa’s largest lithium reserves and the fifth largest globally, but the resource has remained largely untapped due to a lack of investment.

Lithium has become a vital raw material required in the transition to a green economy, and the country is seeking to capitalize on the global drive toward renewable energy.

Chinese investments in lithium mining are expected to play a significant role in the realization of Zimbabwe’s mining sector growth plans.

Earlier this year, Shenzhen-listed Sinomine Resource Group acquired Bikita Minerals, another key producer of lithium in Zimbabwe.

Shenzhen-listed Chengxin Lithium Group last year also acquired a 51 percent interest stake in Sabi Star Lithium Mine in eastern Zimbabwe for 77 million U.S. dollars.

Source: Xinhua

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