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RBZ releasing 2000 more gold coins this week

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RBZ releasing 2000 more gold coins this week

After successfully selling 1500 gold coins in the first week of trading, the Reserve Bank of Zimbabwe (RBZ) has reported that it will release an additional 2000 Mosi Oa Tunya gold coins this week as the demand for the coins accelerates.

Rudairo Mapuranga

In an effort to curb inflation and to save the local currency from collapse the central bank last month introduced gold coins which are sellable in both local and foreign currency. The Bank said the gold coins have proven to be a real deal factor in combating inflation and the collapse of the Zim dollar.

The gold coins were sold at an initial price of US$1 823, 80 per coin or $805 745,35 using the willing-buyer willing-seller rate through agents who include Aurex Zimbabwe, Homelink and all commercial banks.

According to RBZ, 85 per cent of gold coins were sold in the local Zimbabwean dollar while the remaining 15 per cent were sold in foreign currency, with the uptake proving that the coins can be a stable store of value.

“The MPC resolved to maintain the interest rates at current levels. The tight monetary policy stance would be buttressed by the favourable uptake of gold coins which were introduced into the economy on 25 July 2022 as an alternative stable financial product for store of value.

“A total of 1500 gold coins were sold by the Bank’s agents during the first week of their release into the market, with 85% having been bought in local currency and the balance of 15% in foreign currency. An additional 2000 gold coins will be released into the market during the week commencing 1 August 2022,” RBZ said.

The Reserve Bank said that month-on-month inflation declined from 30,7 per cent in June to 25,6 per cent in July 2022. It also noted that whilst monthly inflation is expected to continue to decelerate during the outlook period, annual inflation will continue to increase up to September 2022 as a result of the lower base effect in 2021.

“The Monetary Policy Committee (MPC) of the Reserve Bank of Zimbabwe (the Bank) met on 29 July 2022 to review the impact of the recent monetary policy measures on the economy. With month-on-month inflation having declined from 30.7% in June 2022 to 25.6% in July 2022, the MPC noted that the progressive decline will continue in the outlook period as a result of the tight monetary policy stance being pursued by the Bank. The MPC also noted that the disinflation trend will be reinforced by measures the government was taking to deal with factors that destabilise the foreign exchange market, particularly by reviewing the basis and framework for payments to its suppliers of goods and services in its quest to stabilise the foreign exchange market and enhance value for money. The MPC further noted that whilst monthly inflation is expected to continue to decelerate during the outlook period, annual inflation will continue to increase up to September 2022 as a result of the lower base effect in 2021,” reads RBZ Press Statement.

Fidelity official gold buying prices Tuesday 2 August 2022

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Fidelity official gold buying prices Tuesday 2 August 2022

Fidelity Gold Refiners (FGR) official gold buying prices Tuesday 2 August 2022.

SG 90% AND ABOVE US$54.13/g
SG ABOVE 85% BUT BELOW 90% US$53.27/g
SG ABOVE 80% BUT BELOW 85% US$52.71/g
SG ABOVE 75% BUT BELOW 80% US$52.14/g
SAMPLE BELOW 10g BUT ABOVE 5g US$51.28/g
FIRE ASSAY CASH US$-/g

Exchange rate TBA

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 Refiners’ prices will be changing daily in relation to world market prices.

85% of gold coins bought in local currency

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85% of gold coins bought in local currency

The Reserve Bank of Zimbabwe (RBZ) has revealed that 1 500 gold coins were sold by its agents during the first week of their release onto the market, signalling strong demand for the yellow metal currency but 85% of the sales were in local currency.

The central bank, which released a total of 2 000 Mosi-oa-Tunya gold coins onto the market on July 25, said it will release another batch of 2000 this week.

“A total of 1 500 gold coins were sold by the bank’s agents during the first week of their release into the market, with 85% having been bought in local currency, while the balance of 15% was bought in foreign currency,” RBZ governor John Mangudya said yesterday.

In a bid to save the local currency from collapse and also halt soaring inflation, the central bank introduced the gold coins, described by critics as elitist and possibly a looting scheme.

The gold coins were sold at an initial price of US$1 823, 80 per coin or $805 745,35 using the willing-buyer willing-seller rate.

The agents for the gold coins are all the commercial banks, Aurex Zimbabwe and Homelink.

The government believes the gold coins, which can be used as collateral if one wants to borrow money from the banks, will stabilise the exchange rate and absorb excess liquidity.

Mangudya also revealed that the RBZ monetary policy committee (MPC) resolved to maintain interest rates at current levels.

He said the tight monetary policy stance would be buttressed by the favourable uptake of gold coins which were introduced in the economy last month as an alternative store of value.

With month-on-month inflation declining from 30,7% in June to 25,6% in July 2022, the MPC noted that the progressive decline will continue in the outlook period as a result of the tight monetary policy stance being pursued by the bank.

“The MPC also noted that the disinflation trend will be reinforced by measures the government was taking to deal with factors that destabilise the foreign exchange market, particularly by reviewing the basis and framework for payments to its suppliers of goods and services in its quest to stabilise the foreign exchange market and enhance value for money,” Mangudya said.

“The MPC further noted that while monthly inflation is expected to continue to decelerate during the outlook period, annual inflation will continue to increase up to September 2022 as a result of the lower base effect in 2021.”

The central bank chief said the MPC would continue to review interest rates on a regular basis in line with month-on-month inflation developments.

Meanwhile, cash barons have taken advantage of arbitrage opportunities around the trade of the gold coins given the huge exchange rate disparity between the official rate at about 450 and the parallel exchange rate which topped 1 000 last week.

When the coins were introduced late last month economists warned that selling the gold coins in local currency would present significant arbitrage opportunities.

Economist Trust Chikohora, however, said:  “That was the whole idea to create an alternative store of value besides the US dollar. Even if people are selling US diollars on the black market to go and buy gold coins, the net effect is that the rate will come down.”

Source: Newsday

Zimbabwean man to be Caledonia’s biggest share holder

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Zimbabwean man to be Caledonia’s biggest share holder

Zimbabwean businessman and miner Mr Victor Gapare is set to be the biggest shareholder in New York Stock Exchange and Victoria Falls Stock Exchange listed gold-focused mining company, Caledonia Mining Corporation if a successful completion of the Bilboes gold project purchase sails through.

Rudairo Mapuranga

Late last month, Caledonia signed an agreement to purchase Bilboes for a consideration of 5.12m Caledonia shares (approximately 28.5% of Caledonia’s fully diluted equity) and a 1% NSR on the Project. According to Caledonia Chief Executive Officer Mark Learmonth, following the successful transaction, Gapare through one of his companies will become the major shareholder of Caledonia owning over 13% of the company.

“Toziyana Resources Limited, which is controlled by Mr Victor Gapare, will become Caledonia’s largest shareholder (13.5%). Following the successful completion of the Transaction, Mr Gapare will be appointed as an executive director of Caledonia,” Learmonth said.

Caledonia said that the Transaction is subject to several conditions including Bilboes Holdings receiving confirmation from the Zimbabwe authorities that it will, for the life of the mine, be able to export gold directly and retain 100 per cent of the sale proceeds in US dollars with no requirement to convert US dollar gold revenues into domestic currency.

Prior to completion of the transaction, Caledonia will enter into a tribute arrangement with Bilboes Holdings Limited to restart oxide mining operations which are currently on care and maintenance. This is expected to result in Bilboes returning to profitable operations within 6 months.

According to Learmonth, Bilboes Gold Project has the potential to become Zimbabwe’s largest gold producer, producing more than twice the current gold produced by a single mine, it has been reviewed.

“Bilboes has a NI43-101 compliant P&P Reserve of 1.79Moz @ 2.34 g/t and an M&I Resource of 2.56Moz @ 2.26 g/t and an additional Inferred mineral resource of 577Koz @ 1.89 g/t

“A Feasibility Study indicates the potential for an open-pit gold mine producing an average of 168Koz per year over a 10-year life of mine,” Learmonth said.

Bilboes to become the country biggest gold producer

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Bilboes to become the country biggest gold producer

Caledonia Mining Corporation’s newly acquired gold mining outfit, Bilboes Gold Project, will become Zimbabwe’s largest gold producer, more than twice the current gold produced by a single mine, it has been reviewed.

Rudairo Mapuranga

Last month, Caledonia signed an agreement to purchase Bilboes for a consideration of 5.12m Caledonia shares (approximately 28.5% of Caledonia’s fully diluted equity) and a 1% NSR on the Project.

According to the company, the Transaction is subject to several conditions including that Bilboes Holdings receives confirmation from the Zimbabwe authorities that it will, for the life of the mine, be able to export gold directly and retain 100 per cent of the sale proceeds in US dollars with no requirement to convert US dollar gold revenues into domestic currency.

The Bilboes gold project, according to Caledonia Chief Executive Officer Mark Learmonth, has the potential to become the country’s biggest gold-producing mine by producing nearly 5 tonnes per year. Currently, the country’s biggest gold producer is producing an average of 2 tonnes per annum.

He said a feasibility study prepared by the vendors (the “DRA Feasibility Study”) indicates the potential for an open-pit gold mine producing an average of 168,000 ounces per year over a 10-year life of mine.

“Bilboes has a NI43-101 compliant P&P Reserve of 1.79Moz @ 2.34 g/t and an M&I Resource of 2.56Moz @ 2.26 g/t and an additional Inferred mineral resource of 577Koz @ 1.89 g/t

“A Feasibility Study indicates the potential for an open-pit gold mine producing an average of 168Koz per year over a 10-year life of mine,” Learmonth said.

According to Learmonth, Caledonia will conduct its own feasibility study to identify the most judicious way to commercialise the Project. One approach that will be considered is a phased development which would minimise the initial capital investment and reduce the need for third-party funding.

He said, prior to completion of the transaction, Caledonia will enter into a tribute arrangement with Bilboes Holdings Limited to restart oxide mining operations which are currently in care and maintenance. This is expected to result in Bilboes returning to profitable operations within 6 months

Learmonth said Caledonia will acquire Bilboes Gold in an all-share deal worth US$53 million with Toziyana Resources.

“Toziyana Resources Limited, which is controlled by Mr Victor Gapare, will become Caledonia’s largest shareholder (13.5%). Following the successful completion of the Transaction, Mr Gapare will be appointed as an executive director of Caledonia.

“Based on the closing share price on 20 July 2022 of $10.40 per share, the value of the new shares that will be issued as consideration is approximately $53 million,” he said.

Victor Gapara will become Caledonia’s largest shareholder with 13. 5 per cent.

Struggling Riozim’s Dalny mine in 6 months blackout

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Struggling Riozim’s Dalny mine in 6 months blackout

RioZim Limited’s Chakari-based mine, Dalny mine, has been without power for over half a year due to a huge electricity debt, it has been revealed.

Rudairo Mapuranga

There have been reports that RioZim has been struggling to pay its debts including paying workers which has resulted in the company decreasing in production.

According to Zimbabwe Diamond and Allied Mine Workers Union (ZDAMWU), General Secretary Justice Nhema, electricity at Dalny mine was cut due to debts leading to the closure of the mine with workers at the mine transferred to Cam and Motor mine in Kadoma.

“Zesa was cut off due to debts. Workers at Dalny Mine were then transferred to Cam & Motor Mine in Eiffel Flats,” Nhema said.

Nhema, representing workers, also accused RioZim of delaying payment of salaries, and threats to the workforce, among a cocktail of other allegations.

“The truth of it all is that Rio Zim who owns Dalny, Cam and Motor, Renco and MUROWA are facing financial problems. Workers have not been paid salaries on time. They are failing to pay salaries. Salaries are paid half, half every month,” the ZDAMWU General Secretary said.

Speaking to Mining Zimbabwe, RioZim Corporate Affairs Manager Dr Wilson Gwatiringa could neither confirm nor deny the reports that Dalny Mine has been without power.

“Hello, Rudairo. I don’t have a comment on that,” he said.

In its trading update for the first quarter of 2022, RioZim blamed the lack of production at Dalny Mine on poor ground conditions and flooding. The company also indicated that the mine was going to be operational during the second quarter.

“There was no gold production at Dalny mine throughout the period. The mine suffered from poor ground conditions and flooding of its pits which rendered mining activities insurmountable. The mine is scheduled to resume operations in the second quarter after dewatering of the pits.” RioZim said through its trading update for the first quarter of 2022.

BREAKING: ZAMA joins ZMF

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BREAKING: ZAMA joins ZMF

The Zimbabwe Artisanal Miners Association (ZAMA) has joined the Zimbabwe Miners Federation (ZMF) as an affiliate member.

The yesteryear-formed outfit officially became a member of the ZMF today in Msasa.

Speaking to Mining Zimbabwe on the development ZMF President Ms Henrietta Rushwaya said the coming-in of more Associations into the ZMF family ensures Artisanal and Small-scale Miners (ASM) interests are well taken care of.

“The coming in of ZAMA as one of the affiliate members of ZMF is a milestone achievement especially in the sense that ZAMA among many other Associations that have joined ZMF will bring in lots of expertise and lots of membership that had already affiliated under their flagship. This will help us in achieving and attaining one objective of ensuring that the interests of Small-scale miners are taken care of. ZMF has quite a number of Associations under its purview some that deal with interests that involve women, others deal with conservancy others deal with the environment, others deal with the youths, others deal with people with disabilities and so forth. So ZAMA is welcome to be part of the big ZMF Family and welcome on board to ZAMA,” Rushwaya said.

ZAMA National chairperson Constance Muchoni said joining the Federation is a welcome development for the Association as it stands to benefit immensely from affiliating with the ZMF.

“It’s out of necessity as ZAMA is an association within the Mining Sector and according to the structure of the sector, we have to affiliate to ZMF. Our work as ZAMA compliments both the work of ZMF and the Ministry of Mines. It is a welcome development for ZAMA as the Association stands to benefit a lot from ZMF,” Muchoni said.

Zimbabwe Miners Federation (ZMF)

Zimbabwe Miners Federation’s birth was marked to represent and contribute to the development, growth, and empowerment of the artisanal and small-scale (ASM) miners in Zimbabwe. Established in 2003, the ZMF seeks to bring ASM into the mainstream economy through lobbying and support of ASM operations.

Part of the ZMF objectives is lobbying for the formalization and regularisation of artisanal miners, and small-scale miners. ZMF ensures that legislation in the country is conducive for ASM mining operations and at the same time developing a good rapport with the government.

ZMF links on a day-to-day basis, with its partners who are stakeholders which include but not limited to government, investors, mining service providers, suppliers, and tertiary training institutions that complete the mineral value chain. ZMF has a total of 60+ affiliate associations at the district and provincial levels.

It is by far Zimbabwe’s largest mining body with a membership of over 1,5 million.

Fidelity official gold buying prices Friday 29 July 2022

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Fidelity official gold buying prices Friday 29 July 2022

Fidelity Gold Refiners (FGR) official gold buying prices Friday 29 July 2022.

SG 90% AND ABOVE US$53.55/g
SG ABOVE 85% BUT BELOW 90% US$52.71/g
SG ABOVE 80% BUT BELOW 85% US$52.14/g
SG ABOVE 75% BUT BELOW 80% US$51.58/g
SAMPLE BELOW 10g BUT ABOVE 5g US$50.73/g
FIRE ASSAY CASH US$53.55/g

Exchange rate TBA

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
2% royalty is charged on all deposits (Small-scale Miners)
5% royalty is charged on Primary Producers

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

ZMF distributes contraceptives to Norton ASM

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ZMF distributes contraceptives to Norton ASM

Zimbabwe Miners Federation (ZMF) through its secretary for Semi Precious and gemstones Mr Privelage Moyo, has distributed contraceptives to the Norton mining community in an effort to create awareness and protect Artisanal Miners from sexually transmitted infections (STIs).

Rudairo Mapuranga

Artisanal miners popularly known as “Makorokoza” are infamously known for behaving carelessly, especially with the ladies of the night which has led to a number of them succumbing due to STIs.

According to Moyo, the distribution of condoms was done to make sure that artisanal miners are healthy as the country heads towards the US$12 billion mining Industry.

“The purpose is to protect our miners who cannot easily access condoms, which are now in short supply country-wide. We sourced the contraceptives to make it easy for our miners to get them. As ZMF we stepped up our effort in sourcing through the social health department and make it available to our miners who are the engine of the mining sector. We are trying to make sure that every miner has access to safe social health. Since our government has a target of US$12 billion through mining, we cannot reach the target without the workforce, hence it is our duty as leaders to ensure that the journey is well protected and our workforce is very healthy. These workers are pioneers in the ASM sector hence the knowledge and skills they have, need to be passed on to the next generation whilst they are still alive,” Moyo said.

Mr Chapfuwa Banda a miner in Norton applauded ZMF for embarking on the idea to promote the health of artisanal miners as the miners are living under a huge health risk.

“We are very happy that ZMF remembers us and we urge them to continue distributing these condoms to protect miners from STIs,” he said.

In 2018 National Aids Council (NAC) provincial manager David Nyamurera said artisanal miners are at a high risk of spreading HIV and STIs as a result of low-risk perception.

“Key drivers of the epidemic in the province include having multiple concurrent sexual partners and this includes sex work, incorrect and inconsistent use of condoms, unequal gender relations resulting in Gender Based Violence (GBV) and child marriages. It is kind of a vicious cycle also low-risk perception and intergenerational sexual relations.

“Indeed artisanal miners are at high risk of acquiring and transmitting HIV and other STIs because of their vulnerability. When they get money after their hard work they tend to prioritise leisure and joy, this is where the issue of low-risk perception comes in,” he said.

High-risk sexual behaviour is frequent among small-scale miners owing to the excessive drug abuse that accompanies their operational activities. “ It is common knowledge that ‘Makorokozas’ lead a reckless life of serious drug abuse, alcohol and careless sexual practices with little or no fear of death hence you find they are rarely shocked with reports of HIV prevalent rates.

Manicaland mining cadastre system now online

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Manicaland mining cadastre system now online

The implementation of the Mining Cadastre Information Management System is now at an advanced stage with the Manicaland pilot project now operational online, the Minister of Finance and Economic Development Prof Mthuli Ncube has said.

Rudairo Mapuranga

The Mining Cadastre Portal provides an e-Government platform for all stakeholders in the mineral sector to engage directly with the mining commissioners who issue mining certificates. The aim of the Portal is to ensure international standards of transparency with an emphasis on improving the ease of doing business in Zimbabwe.

The computerized cadastre Portal will be open for registrations for existing mineral titleholders who will have a period to verify and validate their individual mineral titles. Once verified, registered users will be able to view their portfolios and provide feedback on title data. Online applications and other portfolio management functionality will commence after the inauguration of the system.

According to Prof Ncube through budget strategy paper 2023, with the Manicaland mining cadastre system now online, the government is optimistic that all other mining provinces will be online in 2023.

“The implementation of the computerised mining cadastre system is at an advanced stage. Data capturing and provision for a platform for clients to log on to the system to apply for the mining title is at an advanced stage. Manicaland is now operating online, with the rest of the mining provinces targeted to be online in 2023 once the data capturing exercise is complete,” Prof Ncube said.

Currently, the Ministry of Mines and Mining Development is flooded with several running disputes caused by over-pegging and double allocation of mining titles which at times results in chaos in the sector.

The introduction of the new mapping system is therefore expected to bring sanity to Zimbabwe’s mining sector, the Southern African country’s single largest foreign currency earner, and spur growth through that economic segment.

Advantages of the cadastre system

The computer-based cadastre system is expected to enhance transparency and accountability in the administration of mining titles.

The cadastre system will have all records of interest in the land such as licence holders’ rights, restrictions and government activities.

The computerised mining register is also expected to be the central database for the storage of information on applications and licences.

It is also expected to reduce processing time for the issuance of mining titles and other mining services in line with best practices across the globe.

Currently, mining licence separations are marked on the ground by metal stakes, concrete beacons, or some other fixed points surveyed using conventional methods such as theodolite or archaic methods involving tape and chains. This method has been criticized for breeding corruption in the allocation of titles.

The cadastre system will therefore help curb corruption in the allocation of mining claims.

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