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ZESA raises mines power tariff by 8% to meet production cost

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ZESA raises mines power tariff by 8% to meet production cost

Zimbabwe, which has the world’s third-biggest reserves of platinum-group metals, and also mines gold, diamonds and chrome, is targeting growth in the sector to $12 billion output by 2023.

Zimbabwe’s power utility ZESA Holdings will no longer charge mining houses tariffs below cost of production as it is struggling to service “ballooning power import debt.”

Exporters, such as mining companies, will be charged 10.63 US cents per kWh from August 1, ZESA Executive Chairman Sydney Gata said in a letter to miners. Power from diesel-run Hwange plant, which is under expansion to add 300 megawatts, is produced at 10.7 US cents/kWh, translating to 12 cents for customers, he said.

“ZESA will no longer be able to continue supplying electricity to exporting customers at USc9.86 as it is unsustainable,” he said.

The southern African country generates an average 1 200-1 300 megawatts of its own electricity and relies on imports from Zambia, South Africa and Mozambique to cover shortfalls. ZESA requires $17 million monthly for those imports, the company has said in the past.

Zimbabwe, which has the world’s third-biggest reserves of platinum-group metals, and also mines gold, diamonds and chrome, is targeting growth in the sector to $12 billion output by 2023.

Bloomberg

Make selling gold locally lucrative – Mliswa

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Make selling gold locally lucrative – Mliswa

Fire-brand politician and Norton member of Parliament Temba Mliswa has urged the government to create schemes that make selling gold locally lucrative.

Speaking on his Twitter account Mliswa said many gold producers prefer to smuggle the precious metal out of Zimbabwe in order to be paid in US$.

“All gold mined in Zimbabwe is supposed to be sold to the central bank, but many producers prefer to smuggle it out of the country in order to get payment in US dollars. Gvt should respond to this issue by providing schemes that make selling it local lucrative,” Mliswa said.

“…Currently we are losing around 33 tonnes of gold annually, according to a report by the Centre for Natural Resource Governance. This kind of corruption will negate any gold production!”

A report by the International Crisis Group last year estimated that Zimbabwe is losing at least US$1.5 billion annually through the smuggling of gold, mainly to traders in Dubai and South Africa.

The report notes that smugglers are hiding smaller quantities of gold in clothing and headdresses, while larger amounts are stowed away in car glove compartments, spare wheels and any other parts of a vehicle that can be modified for smuggling purposes.

“Similarly, in Southern Africa, gold is easily smuggled from Zimbabwe into South Africa. Porous land borders make it easy for criminal groups to cross into South Africa where laundering opportunities and transport services are more readily available,” the report reads in part.

“While there are informal border crossings, the official Beitbridge border post remains a preferred route for gold smugglers. Smaller quantities of gold are hidden in clothing and headdresses, while larger amounts are stowed away in car glove compartments, spare wheels and any other parts of a vehicle that can be modified for smuggling purposes,” continues the report.

In both east and southern Africa, Global Initiative said trucking is a popular way to smuggle large gold shipments.

On the Zimbabwe-South Africa border, both bus drivers and truckers are reported to smuggle gold.

On the Democratic Republic of Congo (DRC)–Uganda border, gold is hidden in trucks that can bypass COVID-19 restrictions to deliver ‘essential goods’. Bars weighing between five and 20 kilograms are stuffed underneath truck cabins, inside battery compartments and emptied gasoline tankers.

“As a result, some major buyers have invested in both gold and trucking. For example, certain major gold dealers in Harare have invested in the gas business, enabling the use of gas haulage trucks with secret compartments to smuggle gold into South Africa,” it said.

On the borders, there appears to be a lack of capacity and will to stop gold smuggling.

It is clear the payment system is not suiting those who end up smuggling costing the country the much-needed revenue. On the other hand, it is a clear sign that the Apex bank needs to re-look at its payments to gold producers as buyers interviewed by the Global Initiative revealed that they were selling between 10% and 30% of their gold to the Fidelity Printers and Refiners (FPR) only to maintain their gold licences, with the rest being sold on the illicit market.

Calls for RBZ to reduce gold coin mass

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Calls for RBZ to reduce gold coin mass

The Reserve Bank of Zimbabwe (RBZ) has been advised to consider reducing the mass of gold coins in order to cover some sections of the country’s population which might not be able to raise money to buy an ounce of gold.

Rudairo Mapuranga

RBZ recently announced the introduction of the gold coins as a store of value amid soaring inflation and depreciation of the local Zimbabwean dollar against major currencies. Local agents commenced selling the gold coins on an agent basis at the initial price of 1,823.80 per gold coin (an ounce) or in ZWL$805,745.35 using the willing-buyer-willing-seller rate selling rate as of 22 July 2022.

Speaking to Mining Zimbabwe former Zimbabwe Miners Federation (ZMF) Vice President who is also the current Chief Executive Officer of the Cotton Council of Zimbabwe (CCZ) Engineer Chris Murove said there should be lower value coins of half or quarter an ounce to enable many people to hedge against inflation which has hit the country and the world at large.

“In due course, there should be added lower value coins like ¼ and ½ ounces to ensure that the gold coins are affordable to a wider section of the Zimbabwean populace,” Engineer Chris Murove said.

Mineral Economist Lyman Mlambo said the corporate community and government should address the issue of affordability to ensure that Zimbabweans are earning enough money to be able to afford to preserve the value of what they are earning.

“This is really an issue of affordability, which needs to be addressed by increasing the disposable incomes of Zimbabwean citizens. Before people can store value (money) in gold coins as an asset they must have the value in the first place. This is no different from other assets. Better economic policies that result in more disposable income for workers and small-medium business enterprises should be implemented. How the macroeconomic environment could be improved is a wider discussion than the affordability of just gold coins,” Mlambo said.

Internationally, gold coins are used in countries such as China, South Africa and Australia to hedge against inflation and as an investment opportunity, although they are not as widely used as currency as envisaged by Zimbabwe’s central bank.

ZIMSHEC, ZSM & MSU introduce safety training program

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ZIMSHEC, ZSM & MSU introduce safety training program

THE Zimbabwe Mining Safety Health and Environmental Council (Zimshec) has partnered the Zimbabwe School of Mines (ZSM) and the Midlands State University (MSU) to introduce a skills development programme for small-scale miners in the Midlands and Matabeleland regions.

Zimshec was formed last year by small-scale and artisanal miners to promote occupational health and safety, environmentally-friendly and sustainable mining practices.

This follows deaths of several miners after getting trapped in mineshafts due to poor safety and mining practices.

Zimshec Safety Health and Environmental Council manager Thubeluhle Sibanda said the three-month training programme would cover occupational health and safety risks to miners.

“As Zimshec, we realised that most small-scale miners are not well-equipped in terms of knowledge of safe mining. We have managed to have about 30 students attending a three-month training course at the ZSM to undergo what we call first aid and proto teams training,” Sibanda said, adding that every mine should have first aid kits and a first aid team to respond quickly to accidents.

“The courses introduced at MSU will commence on August 1 and will cost US$200. Upon completion of the course, they will be awarded certificates in safety, health and environment in small-to-medium scale mining. The course has six modules which include an introduction to safety, health and environment in mining, an introduction to risk and conflict management, plant machinery and materials application, professional ethics and practice in mining, environmental impact assessment norms, technological entrepreneurship and innovation in mining,” Sibanda added.

Mines minister Winston Chitando said:  “Small-scale miners are now contributing 60% of the total gold output in Zimbabwe and the ministry will support Zimshec by all means possible in its efforts to train small-scale miners.  We will organise awareness campaigns and workshops which will ensure that Zimshec connects and meets up with donors who can actually help small-scale miners.”

Newsday

EIA 1st before exploration – Court

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EIA 1st before exploration – Court

High Court Judge Musithu J, granted an interim interdict that prohibited Pearline Mineral Exploration from conducting an aeromagnetic survey over Shangani Ranch in Insiza District before carrying out an Environmental Impact Assessment (EIA).

According to a report by the Zimbabwe Environmental Law Association (ZELA), Pearline had carried out an aerial survey using a low-flying aeroplane over land on which it had been granted an Exclusive Prospecting Order without carrying out an EIA. The company was prospecting for a number of minerals including gold, silver, copper, antimony, lead and many more.

“The problem is, this was being done without a prior environmental impact assessment having been conducted as required by the law. Shangani Ranch had never been approached by the mining company in connection with the exploration works,” ZELA said in a statement.

“Perturbed by the developments and the threats to its farming operations, the land owner rushed to court for an interdict. This case revolves around non-compliance with EIA requirements by a mineral exploration co, a major problem and headache for many landowners and communities in Zimbabwe,” ZELA continued.

In its decision, the court indicated that the grant of an Exclusive Prospecting Order does not exempt the prospector from first obtaining an EIA from the Environmental Management Authority.

Judge Musithu J described the exploration as illegal and said there is no law that stops aggrieved parties from approaching courts for urgent relief to protect their interest. This was after Pearline argued that Shangani should have approached the Environmental Management Agency to obtain an order to stop prospecting activities as an alternative remedy in terms of Section 97(3) Environmental Management Act.

“…victim of the illegal exploration may not fold their arms, and wait for the Agency to issue the order referred to in the EMA Act. A party in the position of the applicant with all the massive investments at stake, would not choose to remain nonchalant while its rights were being trampled upon. Further, I do not read the law to be implying that an aggrieved party cannot approach the courts for urgent relief to protect their interests…”  the judge said in his ruling.

Shangani Ranch conducts ranching operations on the land in question. It is involved in cattle ranching with a herd of 8 000 cattle, wildlife conservation, Safari hunting and acts as an elephant sanctuary and home to White-backed Vultures and White-Headed Vultures, which are considered to be critically endangered species. It exports beef products to the United Kingdom and employs 400 employees mostly drawn from the local community.

For more on the landmark ruling click HERE.

Invictus Energy renews EIA

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Invictus Energy renews EIA

Australia Stock Exchange-listed energy exploration company, Invictus Energy Limited has renewed its Environmental Impact Assessment (EIA) which was recently approved by Environmental Management Agency (EMA) Managing Director Scott Macmillan has said.

Rudairo Mapuranga

According to Macmillan, EMA has renewed the EIA for Special Grant 4571 to July 2023. EMA issued an EIA Certificate number 8000092F361 and has granted Geo Associates (Private) Limited, the Company’s 80 per cent owned subsidiary and holder of SG 4571, permission to operate in accordance with Part XI of the Environmental Management Act (Chapter 20:27), subject to certain specified terms and conditions that are normal for such an authority.

“The Company is very pleased to have the Environmental Impact Assessment and our Environmental Management Plan renewed by EMA,” Macmillan said.

Macmillan said, the renewal of the Environmental Management Plan concludes the permitting requirements and enables the company to undertake activities in the field including seismic acquisition and exploration drilling. The initial EIA assessment conducted in 2019 by independent environmental consultants, the Scientific & Industrial Research & Development Centre (SIRDC) is one of the largest assessments conducted in Zimbabwe.

“The EIA survey conducted by SIRDC has been one of the most comprehensive surveys undertaken for an exploration project in the country and we thank them for their thorough and professional work,” he commented.

 The EIA assessment included field surveys and baseline measurements of hydrology, ecology, environmental, archaeological, hydrogeological, soil surveys and socioeconomic and community consultations of the key project stakeholders, local leaders, relevant government ministries and government extension offices. The community information sessions were well attended with up to 1,000 participants at some meetings.

Gold coins now on the market at US$1,823.8 or ZWL$805,745.35

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Gold coins now on the market at US$1,823.8 or ZWL$805,745.35

The Mosi-oa-Tunya gold coins are now on the market. A single Gold coin costs US$1,823.8 OR ZWL$805,745.35.

Reserve Bank of Zimbabwe governor John Panonetsa Mangudya today announced that 2000 coins were disbursed to local banks.

Mangudya said Banks shall not lend for the purpose of buying gold coins. He also said the RBZ will be releasing lower denomination coins with time.

This is a developing story…

Zimbabwe mining surpasses US$5 billion

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Zimbabwe mining surpasses US$5 billion

Zimbabwe’s mining sector is registering unprecedented growth, for the first time in history.

Earnings jumped to US$5,2 billion in 2021 from about US$2,9 billion in 2017, as positive gains continue to be realised from the Government’s economic reform agenda, President Mnangagwa has said.

Officially opening the 25th edition of the Mining, Engineering and Transport (Mine Entra) Conference in Bulawayo last week at the Zimbabwe International Exhibition Centre, President Mnangagwa rallied industry players to ramp up production and embrace modern technologies to scale up capacity and business competencies in line with global best practice.

Official statistics already indicate that the mining sector is poised to clock US$8 billion in earnings this year, having already surpassed US$6 billion last month.

With such growth being achieved within a few years in the mining sector alone, the President said the stage was now set for the extractive sector to drive the modernisation of the country’s economy through backward and forward linkages that stimulate localised production of the supply chain.

The Government has set an ambitious target for the mining sector to realise a US$12 billion milestone by 2023 and this, despite unforeseen shocks, remains certain, judging by the continued momentum across key sub-sectors, and the newly commissioned signature projects covering different mineral segments.

These include the expansion of Zimplats and Unki Mines, the re-opening of Eureka Gold Mine, Shamva Gold Mine, Rio-Zim Cam and Motor Biox Gold Plant Expansion Project, Radnor Mine, and most recently, the Sinomine Bikita Minerals Lithium project, among others.

Source: af24news

Caledonia to buy Bilboes Gold for about $53.3 million

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Caledonia to buy Bilboes Gold for about $53.3 million

Caledonia Mining Corporation Plc. has agreed to buy one of Zimbabwe’s biggest gold mining projects as it seeks to expand in the southern African country.

Jersey-based Caledonia will buy Bilboes Gold for about $53.3 million in shares, plus a royalty on revenues, it said in a statement on Thursday. The purchase could make Caledonia Zimbabwe’s biggest gold producer, with the potential to more than double its annual output to over 200 000 ounces.

“We are delighted to have signed an agreement for the purchase of Bilboes, the premier gold development project in Zimbabwe, and indeed one of the best gold development projects in Africa,” Caledonia Chief Executive Officer Mark Learmonth said in the statement.

Bilboes, which owns the Isabella-McCays-Bubi mines in northwest Zimbabwe, can potentially produce about 168 000 ounces of gold, Caledonia said. The operations have been mothballed as the company’s owners searched for new investors and Caledonia will conduct further studies to determine the “most judicious way” to exploit the deposit, it said.

Caledonia, which has Cape Town-based fund manager Allan Gray as one of its biggest shareholder, already operates the Blanket mine in the southwest of Zimbabwe.

The desire to grow local equipment manufacturing highlights Mine Entra conference

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The desire to grow local equipment manufacturing highlights Mine Entra conference

The need to see local equipment and consumable manufacturing growing to satisfy the ever-rising mining industry highlighted Mine Entra’s official opening conference.

Rudairo Mapuranga

This year’s Mining Engineering and Transport Expo (Mine Entra) which ran under the theme Explore, Extract, Expand towards sustainable mining value chains was officially opened by President Emmerson Dambudzo Mnangagwa who emphasized the need for manufacturing of mining equipment and consumables.

Mnangagwa said the continued exportation of consumables and equipment should be a thing of the past.

“Riding on the increased capacity utilisation of the various mining houses, there is no excuse for the continued importation of mining consumables and related accessories such as balls mill and conveyer belts, among others. I challenge the Suppliers Committee to work closely with government and suppliers to ensure the local production of quality and competitively priced products, in line with Buy Zimbabwe, Made in Zimbabwe, Build Zimbabwe initiative,” President Mnangagwa said.

Speaking at the same conference, Chamber of Mines President Mr Collin Chibafa said the country was exporting its much-needed foreign currency due to buying equipment manufactured in other countries.

“We are exporting jobs, we are exporting the foreign currency that we don’t have and this is an attainable situation. My advice to suppliers, miners are price takers our customers determine the prices of the goods that we sell. Therefore, we cannot afford a more than 100 per cent increase of prices in USD terms that we have seen in the recent past. Let us seek to manufacture locally, let us price reasonably,” Chibafa said.

Speaking to Mining Zimbabwe on the sidelines of the event, the Minister of Mines and Mining Development Hon Winston Chitando said the conference emphasises the need to see mining equipment and consumables being sourced locally for the country to fully benefit from Mining revenue.

“The event has gone well very well, the main emphasis was to see how local suppliers can take advantage of opportunities which are in the mining industry. NDS_1 emphasises on upwards and downward integration and here particularly it’s upward integration we want to ensure that as many goods and services are sourced locally,” Chitando said.

Parliamentary Portfolio Committee on Mines and Mining Development chairperson Hon Edmond Mkaratigwa said the country should strive to see the manufacturing of consumables and equipment.

“I’m hoping in the near future to see an improvement ownership of manufacturing entities or at least some innovation around equipment and consumables that are necessary for the mining sector,” Hon Mkaratigwa said.

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