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Caledonia Mining 2022 gold production up

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Caledonia Mining Corp PLC on Friday said it reached record gold production in 2022, exceeding the top end of its guidance, while it expects 2023 production to perform similarly.

The Jersey-based gold producer whose primary asset is the Blanket mine in Zimbabwe said total 2022 gold production at Blanket exceeded the top end of company guidance to a record 80,775 ounces, up 20% from 67,476 ounces in 2021.

It said this meant it achieved its longstanding production target.

Gold production in the fourth quarter that ended December 31 was also up 13% to 21,049 ounces from 18,604 ounces a year earlier.

Looking ahead, it expects similar levels of gold production at Blanket of between 75,000 and 80,000 ounces in 2023, alongside 12,500 to 17,000 ounces at the Bilboes oxides project, taking group consolidated production to the range of 87,500 to 97,000 ounces.

On-mine cost per ounce across the group is forecast to be around USD900 to USD1,000. Breaking this down, the on-mine cost per ounce at Bilboes oxides is between USD1,200 to USD1,320, while it is between USD770 and USD850 at Blanket.

Gold was priced at just over USD1,900 an ounce on Friday.

“The on-mine cost of the small oxides project at Bilboes reflects the low grade of the oxide material. The oxides project is not expected to be representative of the much larger sulphide project at Bilboes in terms of grade, production levels or cost profile,” said Chief Executive Officer Mark Learmonth.

“Nevertheless, the oxides project is expected to contribute to the group’s cash generation whilst at the same time allowing us to pre-strip to the deeper sulphide material.”

Learmonth added regarding outlook: “Over the last 18 months the company has built an attractive portfolio of assets with the acquisitions of Bilboes, Motapa and Maligreen. Blanket will continue to serve as a solid foundation for this growth, as we look to progress our assets with our long-term goal of becoming a multi-asset gold producer.”

Shares in Caledonia Mining were up 0.5% to 1,166.00 pence each in London on Friday afternoon.

Source: lse

Zimbabwe Defence Industries gets permit to export raw lithium

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The Zimbabwe Defence Industries (ZDI) has been granted a special permit to export raw lithium by the government, a decision expected to inject life into the firm’s struggling operations, a local daily has revealed.

The development comes after Zimbabwe banned the export of raw lithium to enable value addition and beneficiation in an effort to see the country benefit from the clean energy revolution. However, the export of raw Lithium is on special conditions and the exporter will be issued with a written permit from the Minister.

According to a recently gazetted Statutory Instrument raw Lithium will only be exported in exceptional circumstances justifying the exportation.

“On written application by any party wishing to export samples of lithium-bearing ore or unbeneficiated lithium for assaying outside Zimbabwe; or to a miner or exporter of lithium upon production of written proof satisfactory to the Minister that there are exceptional circumstances justifying the exportation in question and that the lithium-bearing ores or unbeneficiated lithium in question have been valued in terms of section 12D(3) of the Value Added Tax Act,” the Act reads.

ZDI, which has a vast investment portfolio in mining and is reeling under a Western-imposed embargo that crippled the firm’s operations for over two decades, got approval to export lithium in October last year.

The latest development comes at a time when Zimbabwe is experiencing a lithium rush following the random discovery of the lucrative and strategic mineral in some parts of the country, particularly at Sandawana Mine in the Midlands province.

Following the discovery of lithium at Sandawana Mine last year in December, an estimated 5 000 artisanal miners and fortune seekers descended onto the area searching for the lucrative mineral required in energy transition and the manufacturing of cleaner technologies such as electric vehicle batteries.

With an additional extract from Zim Ind

Indian gold refiners struggle as smugglers offer hefty discounts

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Indian gold refiners have nearly stopped imports of gold dore, a semi-pure alloy, as grey market operators offer hefty discounts to market rates and cut into their slender margins, making business a losing proposition, industry officials say.

Most refiners in the world’s second-biggest consumer of the precious metal have suspended operations and are struggling to honour long-term supply contracts with miners, they said.

“For the last two months Indian prices have been trading at a big discount,” Harshad Ajmera, secretary of the Association of Gold Refiners and Mints (AGRM), told Reuters.

“Refiners can’t offer big discounts as they run operations with wafer-thin margins.”

India’s tax on gold dore is 0.65% lower than the rate on refined gold, so as to make domestic refining viable. But discounts over official prices in the last few weeks have widened to nearly 2% or about $30 per ounce.

Jewellers and bullion dealers were not buying from refiners as they could not offer the same kind of discount available from competing suppliers, he said.

“Our margin is less than 0.5%. How can we match the 2% discount?” asked Ajmera.

Grey market operators, or businesses that smuggle gold from overseas and sell it for cash to avoid the duties, got a boost in July 2022 when India raised its import tax on gold.

Such operators can sell gold at discounts to market prices as they evade the tax of 18.45% on gold, dealers said.

Many Indian refiners are diverting gold ore into refineries in Dubai as they could not sell refined bars at home because of the discounts, said James Jose, managing director of refiner CGR Metalloys.

India relies on imports to meet most of its demand.

The margins of grey market operators are increasing with rising prices, making smuggling even more lucrative, a scenario that can be dispelled only by cutting the import duty on gold to 5%, Jose said.

The AGRM and other trade bodies have asked New Delhi to cut import taxes.

“The government should also increase the import duty difference between refined gold and dore to 1.65%, to make refining viable,” Ajmera said.

India imports gold dore mainly from Ghana and Peru, while refined gold comes from Switzerland and the United Arab Emirates.

Gold demand usually picks up during the wedding season as the bullion is an essential part of the bride’s dowry in India and also a popular gift from family and guests at weddings.

But this year demand is muted as prices have jumped near a record peak MAUc1, further eroding refiners’ sales, said Ashok Jain, proprietor of Mumbai-based gold wholesaler Chenaji Narsinghji.

Mining Weekly

Zambia rationing electricity supply to mines

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Zambia has started rationing electricity supply to mining firms following reduced power generation after a big drop in water levels in lake Kariba, the chairman of state-owned power utility Zesco said on Tuesday.

Water levels in the lake were down at 1.66% of usable storage on Monday for the Kariba North Bank Power Station in Zambia and the Kariba South Bank Power Station on the Zimbabwean side of the lake, said the Zambezi River Authority, which manages the dam.

The north bank power station has an installed capacity of 1,080 megawatts (MW), while the south bank power station in Zimbabwe has a capacity of 1,050 MW.

Hydropower contributes to more than 75% of Zambia’s electricity generation.

“We requested them to give away 180 MW but after negotiations, we went down to 110 MW,” the utility’s chairman Vickson Ncube told Reuters, referring to mining companies in Africa’s No. 2 copper producer.

Last week, Zesco doubled the number of hours it cut supply to domestic customers to 12 hours from six hours daily as the low water levels in the lake threatened power generation.

Water levels in the lake have fallen due to reduced inflows from the Zambezi river and its tributaries and heavy use by power generation companies in Zimbabwe and Zambia.

Ncube said power rationing was expected to be reduced by the middle of next month as water levels increased and full generation was to likely resume in March.

mining.com

ZCDC achieves 2.6 million fatality-free shifts

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The country’s biggest diamond producer, Zimbabwe Consolidated Diamond Company (ZCDC) in its quest to achieve zero harm has gone for over 2.6 million shifts with zero fatalities.

Rudairo Mapuranga

The country’s mining sector through the Chamber of Mines of Zimbabwe (CoMZ) is subscribed to the zero harm mantra and it aims to see the country achieving a fatality-free mining industry.

“Mineral resources are finite and cannot be replaced once mined out, ZCDC attaches significance to the principles of responsible and sustainable mining that promotes environmental rehabilitation to promote economic activity from other sectors after mining.

“As ZCDC, our SHEQ vision is Zero Harm, that is, Zero Property Damage, Zero Occupational Illnesses, Zero Injuries and Zero Environmental Contamination and degradation,” the company said.

Since its inception, ZCDC has not recorded a fatality or serious or disabling injury.

Zimbabwe grants conditional approval for Bikita Lithium’s acquisition

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The Competition and Tariff Commission (CTC) has granted conditional approval for Sinomine (Hong Kong) Rare Metals Resources Co to acquire Bikita Minerals.

Priscah Chisara

The commission was informed in February 2022 that Africa Minerals (Afmin) and Amzim Minerals Limited (Amzim) would be fully acquired.

The CTC set various requirements before approving the US$180 million transaction between Bikita Minerals and Sinomine (Hong Kong) Rare Metals Resources Co.

It mandated that, if it is economically feasible, Bikita Minerals, its subsidiaries, affiliates, and successors-in-title sell lithium concentrates to any user who may be available in Zimbabwe on non-discriminatory terms and conditions.

Additionally, the company was instructed to commit to producing high-purity lithium from lithium concentrates within five years of obtaining the commission’s ruling.

Sinomine should continue to implement corporate social responsibility initiatives and programs, such as building Zesa’s Tokwe Station, helping to rebuild Birchenough Bridge, and implementing philanthropic social responsibility programs in Bikita that benefit local communities, government agencies, clinics, and schools.

A month after obtaining the commission’s decision, it must also submit to the CTC an implementation plan of these requirements. It must also start a year after receiving the CTC’s decision by submitting an annual compliance report detailing how the requirements here were met.

An experiment to convert coal to graphite underway

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Scientists are a step closer to turning coal into graphite as the world extensively moves from fossil fuels to clean energy to delay climate change.

Anerudo Mapuranga

Students at Ohio University are experimenting on how coal can be converted to valuable and carbon-neutral Elements like graphite and carbon nanotubes. The team has carried out a series of simulations in an attempt to discover if coal at become a carbon-free element to be used during the green energy revolution.

Using the Pittsburgh Supercomputing Center’s Bridges-2 system, the researchers simulated coal and graphite in computer software and recreated the coal-to-graphite conversion virtually. Generations of scientists know that, at least in theory, it is possible to convert coal to graphite if the fossil fuel is put under enough pressure at a high enough temperature.

Pure graphite is a series of sheets made up of six-carbon rings. A special type of chemical bond called ‘aromatic bond’ holds these carbons together.

In aromatic bonds, pi electrons float above and below the rings. These “slippery” electron clouds cause the sheets to slide easily past each other. Pencil “lead”—a low-grade form of graphite—leaves a mark on paper because the sheets slip off of each other and stick to the paper.

Aromatic bonds have another virtue, important in electronic technology. The pi electrons move easily from ring to ring and sheet to sheet. This makes graphite conduct electricity, even though it is not a metal.

Coal, by comparison, is messy chemically. Unlike the strictly two-dimensional nature of a graphite sheet, it has connections in three dimensions. It also contains hydrogen, oxygen, nitrogen, sulphur, and other atoms that might disrupt graphite formation.

Simplified coal

To begin their studies, David Drabold and his team created a simplified “coal” that consisted of only carbon atoms in random positions. By exposing this simplified coal to pressure and high temperature—about 3,000 Kelvin, or nearly 5,000 Fahrenheit—they could take a first step in studying its conversion to graphite.

“To push out the amorphous-graphite paper we needed to do a lot of serious analysis,” said Chinonso Ugwumadu, a doctoral student in Drabold’s group. “Compared to other systems which we have, Bridges is the fastest and most accurate. Our home systems … take about two weeks to simulate 160 atoms. With Bridges, we can run 400 atoms over six to seven days using density functional theory.”

Their results were more complicated than the team had expected. The sheets did form. But the carbon atoms didn’t entirely develop simple, six-carbon rings. A fraction of the rings had five carbons; others had seven.

The non-six-carbon rings posed an interesting wrinkle, in more ways than one. While six-carbon rings are flat, five- and seven-membered carbon rings pucker, but in opposite senses of “positive and negative curvature.”

The scientists might have expected these puckers to ruin the formation of the graphite sheets. But sheets formed anyway, possibly because pentagons and heptagons balanced each other in the simulations. The sheets were technically amorphous graphite because they weren’t purely six-ringed. But again, they formed layers.

Carbon nanotubes

In another series of simulations, Ugwumadu followed up on his work with Rajendra Thapa to study molecules rather than solids. The conditions in these sims caused the sheets to curve in on themselves. Instead of sheets, they formed nested amorphous carbon nanotubes (CNTs)—a series of single-atomic-layer tubes, one inside another.

CNTs have been hot in materials science lately, as they are in effect tiny wires that can be used to conduct electricity at incredibly small scales. Other promising applications of CNTs include fuel cell catalysis, the production of supercapacitors and lithium-ion batteries, electromagnetic interference shielding, biomedical sciences, and nano-neuroscience.

One important facet of the CNT work was that Ugwumadu studied how amorphous wrinkles in the tube walls affect the movement of electricity through the structure. In materials science, every “bug” is also a “feature”—engineers may be able to use such irregularities to tune the behaviour of a given CNT to match the exact requirements needed in a new electronic device.

The group continues to study the conversion of carbon atoms to graphite and related materials.

Vubachikwe Mineworkers lose confidence in shareholders

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Duration Gold Limited-owned Vubachikwe Mine’s workers say they have lost confidence in the shareholders and its management due to the continued mismanagement resulting in failure to pay salaries and reopening of the Mine.

Rudairo Mapuranga

The workers through Zimbabwe Diamond and Allied Mine Workers Union (ZDAMWU) General Secretary Mr Justice Chinhema said that they are disappointed by the management who “lied” that plans to resume operations rests in the election of workers committee when in actual fact workers don’t determine the reopening of a struggling Mine.

“We note with concern comments by yourselves in which it was reported that the ‘reopening of the mine rests on workers’. The report quoted you saying plans to resume operations at Vumbachikwe mine are at an advanced stage but rest on workers who are required to elect a workers committee. We are shocked and surprised by this statement from you that seek to push a narration that workers can determine the reopening of a struggling mine.

“This is a dangerous path you are choosing because it is on record that management suspended operations to make sure it is safe to mine again after the job action. Elections of the workers’ committee can never be the deciding factor to reopen. Instead, payment of outstanding salaries that caused the job action, sound business management, capital injection and good corporate governance is required for the mine to reopen. Workers are employed to work not to elect the workers’ committee, and all the workers are holding on to your communication that operations are suspended. The first memo from you must uplift the suspension of operations followed by payment of all outstanding salaries in full, a clear work plan and commitment by your management and shareholders that salaries and wages will be paid on time every month including remittance of all statutory employment deductions. This does not require a workers’ committee for it to happen but requires your management to act and do so urgently,” Chinhema said.

Vubachikwe Gold Mine Manager None Kananji had said through the media that plans to resume operations at Vubachikwe Gold Mine in Gwanda are at an advanced stage with the mine management waiting for workers to select a new workers’ committee to ensure that the rights of employees are not undermined.

“Our last communication to the workers spelt out what we need to go to the negotiating table for an immediate restart and they are aware of the expectations,” said Kananji.

Chinhema continued saying that it was difficult for the mine to resume operations as workers are still to be paid outstanding allowances resulting in the workers losing confidence in Duration Gold as a notable owner of one of the oldest gold mines in Zimbabwe.

“The current situation points to lack of strategic direction and we now have the view that the failure to pay salaries on time and other obligations are due to financial mismanagement, and lack of proper management. There is great variance on workers’ welfare and extravagance on the part of the shareholders. To be honest with you manager, we have lost confidence in the shareholders of the company and its management. Workers have been living in abject poverty and facing hardships under the watch of the current management who have failed to find lasting solutions to all problems that affect parties to an employment contract,” Chinhema said.

ZDAMWU also gave Vubachikwe Gold Mine a seven-day ultimatum, “With all the above we are under instructions to demand the following from your management within (7) seven days–

  1. All outstanding salaries be paid in full to everyone owed within the (7) seven days of receipt of this letter.
  2. 2022 back pays and all allowances be paid in full at once by the last day of January 2023.
  3. Duration Gold (Vubachikwe mine) through its shareholders makes a pledge that going forward all salaries will be paid in full at the end of every month.
  4. No employee will lose his/her employment because of anything, instead, the management team should see heads rolling for poor management.
  5. A financial re-capitalization must be made so as to secure the jobs of current workers.

In the event that you fail to address the above within the stated time, or chose to ignore, we are under instructions to immediately consider the process of corporate rescue which we believe is long overdue. As you may appreciate, corporate rescue is meant to resurrect failing entities. In our view, we should not wait until another mine collapses, and jobs lost, but diligence requires that we act now.”

Gwanda-based human rights watchdog Coalition for Citizens Advocates secretary-general Wilbert Ndiweni said that Vumbachikwe mine management was making unfair demands to desperate workers.

“This is a serious violation of workers’ rights and the country’s labour laws regarding wages and salaries. We are appealing to Vubachikwe management to at least show humane concern and avert a possible social calamity by giving these suffering human beings their earnings so that they also restore order in their families which are in abject poverty. We, as an organisation, appeal to the government to intervene at Vubachikwe before a social calamity unfolds.”

Gold deliveries reach the 2022 target

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Gold deliveries to the country’s sole gold buyer and exporter Fidelity Gold Refinery (FGR) achieved the 2022 projected target of 35 tonnes marking an 18.9 per cent increase from 29.7 tonnes delivered in 2021.

Rudairo Mapuranga

The increase in deliveries is attributed to Artisanal and Small Scale Miners (ASM) whose deliveries increased by 30.3 per cent to 24.1 tonnes from 18.5 tonnes delivered in 2021. Deliveries by large-scale producers were approximately 11.2 tonnes in 2022 as well as in 2021.

However, deliveries during the last quarter of 2022 decreased by 10.3 per cent from approximately 10.7 tonnes delivered in 2021 to 9.6 delivered in 2022.

Experts attributed the improved contribution of small-scale producers to timeous payments to the miners by Fidelity Gold Refinery (FGR), the country’s main buyer of the yellow metal.

In 2021, the Reserve Bank of Zimbabwe announced a 5 per cent incentive for gold deliveries above 20kg by small-scale miners. This was done in an attempt to curb rampant smuggling of the precious metal.

During the period January to November 2022, gold deliveries increased by 31 per cent to 33.3 tonnes from the same period last year. During the period, Artisanal and Small Scale Miners (ASM) contributed 22.9 tonnes while the primary producers contributed 10.4 tonnes.

Gold deliveries also increased by 33.8 per cent during the first 10 months of the year compared to the same period last year, raising the prospect that Zimbabwe might achieve the 35-tonne target for this year.

According to FGR General Manager Mr Peter Magaramombe, the massive increase in deliveries has been necessitated by a host of measures taken by FGR and the Reserve Bank of Zimbabwe (RBZ) including timeous payments and incentives.

“The 5% Gold incentives to the small-scale miners are key, timeous payment to our miners, and incremental good incentives to the large-scale miners,” Magaramombe said.

The 33.784 per cent increase saw 29 460.6532 Kg of gold being delivered by the end of October 2022 compared to 22 024.3507 kgs delivered during the same period last year.

Artisanal and Small-Scale Miners (ASM) have contributed 67.8 per cent of the total deliveries, sending 19 987.6292 kgs compared to 9 473.0240 kgs delivered by the large-scale producers. ASM deliveries increased by 54.3 per cent from 12952.3801 kgs delivered during the same period last year with large-scale producers’ gold deliveries increasing by 4.4 per cent from 9071.97 kgs delivered during the same period in 2021.

Gold deliveries to FGR in the nine months to September 2022 grew by 36 per cent to 25,7 tonnes, from 18,9 tonnes in the same period a year earlier.

According to FGR statistics seen by this publication, overall deliveries stood at a 41.0734 per cent increase to 22290.41 kgs during the period January to August of 2022 compared to 15800.57 kgs delivered during the same period last year.

Large-scale producers increased their gold delivery by 5.025 per cent to 1086.5330 kgs in August 2022 compared to 1034.54 kgs in the same period last year. The Artisanal and Small-Scale Miners (ASM) increased their deliveries by 18.27 per cent to 2263.2531 kgs in August 2022 from 1913.48 kgs in August 2021.

FGR is confident that gold deliveries to FGR will reach 40 tonnes this year as a result of notable expansion projects by Large producers as well as the growth in ASM projects.