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WHAT IF CORPORATE SOCIAL RESPONSIBILITY IS NOT THE BEST OPTION…

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Corporate Social Responsibility (CSR) or Corporate Social Investment (CSI) have been embraced at the confluence of capitalism and socialism. Throughout the years, companies have variously embraced this aspect. Sincerity is measuredly seen in the implementation of these concepts but they have been advanced as options towards balancing between natural resource exploitation and the concerns of communities surrounding these mine sites.

by Edmond Mkaratigwa1 and Albert Maipisi2

At the bottom of the phenomenon of Corporate Social Responsibility or Investment lays a strategy for the existence of the corporates. The strategy is not voluntary but preemptive and a fight against the consciousness of a class that feels left out exploited and poor. This group of people has a mindset suspicious of those who have managed to create wealth through investments in the various sectors of the economy and in this case, the mining sector. It is not everyone who can be in business and more so, become a miner. Even so, there is need to interrogate this matter further, towards finding a lasting solution for developing countries and in particular Zimbabwe.

In trying to deal with this challenge, Zimbabwe, once took an extreme position through the indigenization laws. In this direction, many after a particular time backtracked and questioned the efficacy of that approach in the country, led by the civil society organizations. It was viewed as retrogressive. In the same sense today, many are wishing for the former approach over more liberal approaches which can be market-based or voluntary and based on individual firm’s values and convictions as well as the need to survive any foreseen risk that may emanate from negative actions against the firm, as a result of community dissatisfaction.

Where does the solution to this conundrum lay? The key challenge has roots in many aspects. First, is the delay by the government to adopt a mechanism that can sustainably grow its own crop of new miners through a supportive legislative framework. In this regard, Zimbabwe until now, is reliant on an archaic legal framework and in some instances, the practice is already by far ahead of the law. The situation can be brittle even though tackling the matter can also open a can of worms, that can break already achieved gains. The Mines and Minerals Amendment Bill is providing a chance for solution-seeking. Its contents have been debated only in terraces and not in the mainstream legislative formulation framework for a while, hence no solution in sight, though in sight. It offers room for reconsideration of our paths if we are ready and sharing the same sentiment.

The next aspect revolves around the nature of the country’s orientation as part of the social system that builds national culture. The fact that communities demand to benefit from the natural resources extracted from their settings does not really imply that the miner has rendered all other mining opportunities in the country inaccessible through his or her engagements. Of course, it is correct that where one mines, another cannot mine at the same time. Nevertheless, the key question is, are all resource-rich areas already fully exploited in the country.

If not, why is that most of the rich people who know that there are minerals, are not motivated to mine, yet demand those mining, to plough back to their communities. The answer may be laying in our education system and the culture of being workers still dominant in the broader local citizenry and those abroad. Failure to review appropriate laws hopefully is also not attributable to weak comprehension of the necessity to incorporate the new thinking, transformed from that of the 1960s, towards economic growth from within and by selves. The thinking is buttressed by the view that most people involved in modern mining are not even trained for the task as the trained are looking for jobs elsewhere.

In ending for now, is the increased call for corporate social responsibility or investment due to levels of poverty being witnessed in communities where mining activities are taking place? Is it a result of feeling for those without by those in the mining sector or those concerned with the plight of the communities? These are all important questions but the real issue is also for us to face our own realities. Among these realities is acceptance of our strengths and weaknesses and then we can build our foundations from there. Capital exists within the country and among our people, but many are not risk-takers. Risk takers are an important human capital in our societies or from worlds abroad, but the culture can also be deliberately motivated, created and cultivated.

The culture of alms is as old as humanity and that is entrenched in our communities, but is it the best of the cultures, towards national economic empowerment. This cannot be a one-day adventure and equally Corporate Social Responsibility or Investment is not the best approach but a wedge in the absence of the best. Pragmatism is the arena in which Corporate Social Responsibility or Investment dwells as it seeks to consider concerns from various stakeholders, but it remains voluntary and ultraistic, hence difficult to use in dealing with poverty and for planning toward sustainable poverty reduction unless adequately coordinated and based on verifiable indicators as measures of progress towards the set goals.

Otherwise, Corporate Social Responsibility in Zimbabwe is another façade that keeps societies expectant of crumbs which will never meaningfully economically transform societies but usually achieves the opposite. Real transformation is in genuine ownership which we continue to evade where laws are taking long to buttress certainty of such thoughts towards ownership and reversal of any negative overlaps among the different sectors of production in our overall economy. Within such a thinking framework, the question remains: Is Corporate Social Responsibility or Investment the last of our thought process initiatives toward community empowerment and local wealth creation? Definitely no!


[1Ph.D. Candidate of Energy Innovation and Chairperson of the Parliamentary Portfolio Committee on Mines and Mining Development & 2Ph.D. in Disaster Management and Public Administration. Published ideas are entirely views of authors and cannot be attributed to their current institutional positions].

Zimbabwe doubles royalties on platinum miners

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Zimbabwe has tabled new regulations for local companies, which include a doubling of mineral royalties for platinum miners.

The royalty rate for platinum miners – among them units of Anglo Platinum and Impala Platinum – has been raised from 2.5% to 5%.

Mineral royalties must now be paid “in both local and foreign currency in the ratio of 50:50”.

Former Finance Minister Tendai Biti has criticised the new measures on platinum mining companies, saying the platinum miners earn their income in US dollars and should be liable for taxation in foreign currency.

“Unjust tax breaks have cost Africa for decades,” said Biti.

Lithium mining companies must now pay a new 5% royalty.

Money transfer companies such as Western Union and Mukuru, which previously have been exempt from the Zimbabwean mobile money and electronic transaction tax, are now also covered by the regulations, with specific reference to “the internal transfer of money by authorised dealers”.

The rate of withholding tax chargeable to cross-border traders without tax certificates has also been raised from 10% to 30%, the Finance Bill 2022 reads.

“In order to mitigate against the risk of over or understating tax, taxpayers trading in more than one currency (will be required) to prepare two separate tax returns in the currency of trade. The expenditure qualifying for deduction under each tax return will be determined by the ratio of local to foreign currency income,” further reads the new Finance Bill 2022.

The government of Zimbabwe has also proposed the imposition of a beneficiation levy for shipments of platinum that is not fully beneficiated, factoring in the various stages of beneficiation of the precious metal.

Where a platinum miner “has built a plant in Zimbabwe capable of producing platinum group concentrates, a tax at the rate of 5% on the value of unbeneficiated platinum shall be levied” on exports.

Russell Investments Group Ltd. Makes New Investment in Caledonia

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Russell Investments Group Ltd. bought a new position in Caledonia Mining Co. Plc in the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund bought 2,052 shares of the company’s stock, valued at approximately $29,000.

Separately, Advisor Group Holdings Inc. increased its holdings in shares of Caledonia Mining by 72.3% during the first quarter. Advisor Group Holdings Inc. now owns 9,053 shares of the company’s stock valued at $138,000 after acquiring an additional 3,800 shares in the last quarter. 8.09% of the stock is owned by institutional investors and hedge funds.

Source: Defense World

MOSI-OA-TUNYA GOLD COIN PRICE 31 AUGUST 2022

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MOSI-OA-TUNYA GOLD COIN PRICE 31 AUGUST 2022.

CURRENCYSELLING PRICE
USD1,816.82
ZAR30,703.63
BWP23,292.50
AUD2,633.07
GBP1,554.96
EUR1,809.94
ZWL1,033,311.35

Interview: Collin Chibafa – Chamber of Mines President

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Interview: Collin ChibafaChamber of Mines of Zimbabwe President.

Thank you for taking the time from your busy schedule to speak to us. A brief introduction of yourself?

Collin Chibafa (CC): Collin Chibafa is a Chartered Accountant, having trained with PWC. I have spent over 20 years working within the mining sector.

KS: Your view on the status of the mining industry?

CC: The mining industry has generally continued the strong growth recovery post the COVID-19 induced lockdowns of 2020. Compared to Q1 2021, we have witnessed increases in output across all key minerals in the first quarter of 2022, with an 86% increase in gold, 83% for lithium, 51% in diamonds, 21% for coal, 13% for nickel and 13% for PGMs. The strong output performance is largely due to the ongoing expansion projects as a result of the favourable commodity prices. However, the mining industry is still performing below its full potential with capacity utilisation currently estimated at around 80%, weighed down by foreign currency shortfalls, fragile power supply, capital constraints and a high-cost structure.

KS: Despite protests and suggestions that 60/40 gold retention is not working for gold miners, the government hasn’t budged. Has the Chamber of Mines given up the fight for gold miners?

CC: We cannot afford to give up. The Chamber of Mines continues to engage and lobby the RBZ and Government for an optimal foreign exchange framework for the mining industry. While the retention has remained at 60/40, we have seen some changes namely, allowing miners to pay a proportion of the royalties and taxes in local currency and the introduction of an incremental export incentive scheme that results in mining companies retaining 80% of export proceeds about a set threshold.  In addition, for mining companies that are listed on the Victoria Falls Stock Exchange, the retention on incremental incentives is set at 100%. We will continue to engage and lobby for improved retention levels to ensure mining companies are able to sustain and expand their output.

KS: The world is going green and Zimbabwe is a significant player as it hosts some of the highest world lithium deposits and significant deposits of Copper. We do not seem to have local takers of these minerals. What’s your take on local players pulling resources together to form Joint ventures to mine Lithium for example?

CC: As a Chamber, we stand ready to support investors into the mining sector. The mining sector is open for anyone to invest in and contribute in maximizing the contribution of the sector to the socio-economic development of the country. It is my personal desire to see more Zimbabweans pulling their resources together to take advantage of the various opportunities that exist.

KS: Simple equipment like steel ropes used on skip cages is not being manufactured locally. Does the Chamber encourage value addition to reduce the import bill in the mining industry?

CC: The Chamber of Mines has, for a long time, at the forefront to promote linkages between the sector and local industry. The Chamber also has a Joint Suppliers and Producers Committee to spearhead and promote linkages and local content in the mining sector. In addition, most mining companies have introduced various initiatives to promote local manufacturers through Local Enterprise Development programs that have seen manufacturing companies growing from infancy to become suppliers to the mining industry. We continue to urge foreign-owned mining companies operating in the country to ensure they utilise local skills where these are available, from the exploration to the operating stage of their operations.

KS: Which metals have the most exciting prospects and potential in Zimbabwe?

CC: The country’s traditional minerals including PGMs, gold, ferrochrome, nickel and diamond continue to anchor the sector while emerging minerals including lithium provide a base for a diversified mineral sector.

KS: Zimbabwe is currently on the verge of getting a new Mines and Minerals Act what three things would you want to see removed or amended from the Act?

The government afforded the Chamber an opportunity to submit proposals for changes to the Draft Amendment Bill. Most of the Chamber proposals were incorporated in the Draft Bill and our expectation is that the Final Act will result in a modern, easy-to-interpret mining regime that guarantees the safety of mining investments and encourages capital inflows into the mining sector.

KS: What are the reasons that you would give a prospective foreign investor who is interested in investing in Zimbabwe’s mining sector?

CC: My advice would be that they should not mistake noise for useful information. By this, I mean that mining is a long-term investment decision. As a potential investor, they should not only consider the constant reports from various quarters some of whom are not operating in the country to that of the major mining companies that are operating in the country. Though not Switzerland, the operating environment for business has improved. As a Chamber, we believe we have a role to play in engaging the government for an improved fiscal and regulatory environment.

KS: What would you say are the long-lasting solution to power challenges for Mines in Zimbabwe?

As an industry, our view is that the power supply situation can be resolved by addressing some domestic structural bottlenecks that continue to weigh down the electricity value chain. We believe there are several electricity projects across the country which are at different levels of implementation. The thermal power value chain has huge scope to anchor the electricity supply in the country. Quick wins at the Hwange Power station are paramount. Refurbishment of the 6 old units and completion of the 7 and 8 units can easily improve the power supply in the country. These can be complemented by addressing challenges threatening the survival of the coal sector (the critical feedstock). These challenges include low coal prices and acute foreign currency constraints. The country also needs to develop and implement a plan for self-sufficiency in power generation. The SADC region is facing a power deficit and it is important for the country to set a timeline by which it will be self-sufficient. The country’s development cannot be premised on importing a critical input such as electricity when it has abundant sources that could be developed in this regard.

KS: Besides mining business what does Mr Chibafa enjoy doing?

CC: I read and enjoy photography, mainly portraiture.


This article first appeared in the Mine Entra 2022 issue of Mining Zimbabwe Magazine

Fidelity official gold buying prices Wednesday 31 August 2022

Fidelity Gold Refinery (FGR) official gold buying prices Wednesday 31 August 2022.

SG 90% AND ABOVE US$52.84/g
SG ABOVE 85% BUT BELOW 90% US$52.01/g
SG ABOVE 80% BUT BELOW 85% US$51.45/g
SG ABOVE 75% BUT BELOW 80% US$50.90/g
SAMPLE BELOW 10g BUT ABOVE 5g US$50.06/g
FIRE ASSAY CASH US$52.84/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.

Rio Tinto exec appointed AngloGold CFO

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Gold miner AngloGold Ashanti has appointed Gillian Doran CFO, with effect from January 1, 2023.

Doran (45) joins AngloGold from Rio Tinto Group, where she is currently CFO Aluminium, based in Montreal, Canada.

Rio Tinto Aluminium is a large-scale global primary aluminium business, vertically integrated and producing bauxite, alumina and aluminium across 29 assets in Australia, Canada, Brazil, Guinea, Iceland, New Zealand and Oman.

Last year, this Rio Tinto division generated revenue of $12.7-billion and underlying earnings before interest, depreciation and amortisation of $4.4-billion.

Doran’s career at Rio Tinto has spanned 15 years, during which time she has held a number of leadership positions across various jurisdictions including Australia, the UK and North America, both at a corporate and operational level.

AngloGold says she is a strong advocate for women in the natural resources industry through her work with the International Women in Resources Mentoring Program and external engagement following Rio Tinto’s release of the Everyday Respect Report.

She holds a number of board positions on behalf of Rio Tinto and is a member of the Australian Institute of Company Directors and the Canadian Chamber – Net Zero Council.

Prior to joining Rio Tinto, she gained significant financial and leadership experience across a number of industries including manufacturing and construction during her early career in Ireland, as well as time spent at Alcoa, in Western Australia.

“Gillian’s technical and leadership expertise, her record in promoting dignity, respect and inclusion in the workplace and her commitment to the highest levels of governance, make her a strong addition for AngloGold Ashanti,” says AngloGold chairperson Maria Ramos.

“Gillian brings to us deep financial, commercial and strategic experience earned inside a complex global resource business.

“Her knowledge of operating environments across many of our operating jurisdictions, her leadership capability, proven in managing large teams across multiple jurisdictions, and her familiarity with leading-edge processes and systems, make her an excellent fit for this vitally important role,” adds AngloGold CEO Alberto Calderon.

Mining Weekly

Fidelity official gold buying prices Tuesday 30 August 2022

Fidelity Gold Refinery (FGR) official gold buying prices Tuesday 30 August 2022.

SG 90% AND ABOVE US$53.48/g
SG ABOVE 85% BUT BELOW 90% US$52.64/g
SG ABOVE 80% BUT BELOW 85% US$52.08/g
SG ABOVE 75% BUT BELOW 80% US$51.51/g
SAMPLE BELOW 10g BUT ABOVE 5g US$50.67/g
FIRE ASSAY CASH US$53.48/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.

Miner clashes with villagers

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Mzinyathini villagers in Umzingwane, Matabeleland South are up in arms against a miner they accuse of pegging his mining claims on their farmland.

Ward 3 village co-ordinator David Mpofu confirmed the developments to Newsday’s Southern Eye saying the miner was making life unbearable for the villagers and threatening to shoot them.

Mpofu said the miner, France Ndlovu, popularly known as Leeboff pegged his mining claims on villagers’ farmland and boasts of protection from top authorities.

“We are tired of artisanal miners who cause havoc within our villages. Ndlovu has become a thorn in the flesh. He goes around claiming areas that are rich in gold deposits. He is trying to halt an irrigation initiative that is meant to benefit the whole community,” Mpofu said.

“We tried to call a meeting with him, but he did not turn up even though we had assured him that the police would be present to show him that we were not fighting him. What puzzles us is that after two days, he showed up with some certificates claiming that the place was his, but he did not physically show us what was on the certificates. Leeboff came with armed security, and villagers were not happy with the developments.”

Ward 3 village head, Jeboy Luvuno said farming was the only source of living for the villagers, adding that taking away their farmland would drive them into poverty.

“If the land is snatched away from us, then we have nowhere to turn to. When Leeboff came to claim our land, we relied on agriculture to fend for our families. Without our small portions of farmland, we cannot survive. If the law cannot protect us, then who can be our shadow,” he said.

Luvuno said Leeboff boasted that he was being backed by the government and the Chinese; hence it was good for the villagers to give up their land.

But Ndlovu denied mining on villagers’ fields, adding that he was doing his business on idle land.

“I am not mining on people’s farming land, but l pegged my mine on idle land that was deserted for over 10 years. I never threatened anyone, but l brought law enforcers as witnesses. It seems there is an individual who is up in arms with me and is influencing others to fight me. I do my activities following proper procedures, but these people who want to do gold panning are blocking my way, yet I envisage uplifting the community,” Ndlovu said.

He said the so-called irrigation scheme that the villagers claimed they had been working on started when he told the villagers that he had pegged a mine in the area.

“I work alone; it is a lie that I’m backed by the Chinese. I am not chasing away anyone because my desire is to help the community,” he said.

Matabeleland South mining director, Khumbulani Mlangeni said mining activities were not allowed on farmland.

“According to the Mines and Minerals Act, no one is allowed to prospect on arable land. The affected individuals should lodge a written complaint with the office to ensure that the issue is investigated and corrective action taken,” Mlangeni said.

There have been calls for Ministries of Mines, and local authorities to work together in issuing land as land disputes grow.

Newsday

Gold hits one month low

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Gold prices fell to a one-month low on Monday, as US Federal Reserve Chair Jerome Powell’s stance to continue with aggressive monetary policy to bring down inflation dented the zero-yielding metal’s appeal and boosted the dollar.

Spot gold had shed 0.7% to $1 724.88 per ounce by 05:50 GMT. Prices earlier fell to $1 720.55, their lowest since July 27.

US gold futures dropped 0.8% to $1 736.40/oz.

The dollar index scaled a 20-year high, making greenback-priced bullion more expensive for buyers holding other currencies.

Gold’s momentum has turned lower and while at some point there will be a safe-haven flow, investors are currently focusing on interest rates remaining high, said Matt Simpson, a senior market analyst at City Index.

In a speech kicking off the Jackson Hole central banking conference in Wyoming on Friday, Powell said the Fed would raise rates as high as needed and would keep them there “for some time” to bring down inflation. He also warned of “some pain” to households and businesses.

Echoing the Fed chief’s stance, European Central Bank board member Isabel Schnabel said central banks must act forcefully to combat inflation, even if that drags their economies into a recession.

While gold is often considered a safe haven during financial uncertainties, it is highly sensitive to rising US interest rates, which increase the opportunity cost of holding non-yielding bullion while boosting the dollar.

“Gold is probably heading towards $1 700 and has room to go to $1 680. You can get some buyers stepping in around the $1 680 level to support the market and back up to $1 750,” Simpson added.

Spot silver fell 1.4% to $18.61 per ounce, platinum dipped 1% to $854.66 and palladium was flat at $2 110.39.

Mining Weekly