Mining ZimbabweLatest Mining News, Policy and Industry Updates

INVICTUS Energy, the Australian firm exploring oil and gas in the Muzarabani and Mbire districts of Mashonaland Central, north of Zimbabwe, expects the first batch of key pieces of the exploration drilling equipment to be delivered at the project site this week.

The company announced recently that mobilisation of the Exalo 202 rig from Tanzania’s Songo Songo area, where the equipment was contracted for similar work, had commenced.

This sets up Zimbabwe for a historic first-ever oil and gas exploration drilling exercise that could significantly transform the mineral-rich Southern African country’s economy if the project achieves commercial discovery.

President Mnangagwa said at the launch of the Petroleum Exploration Development and Production Agreement (PEDA) last year that the signing of the (PEDPA) agreement represented major strides in Zimbabwe’s efforts to tap into its oil and gas deposits, which is new territory in the country’s mining sector.

The PEDPA provides the framework for the progression of the Cabora Bassa Project through the exploration, appraisal, development and production phases, the obligations and rights of each party, the minimum work program obligations to maintain the licence in good standing, and the security of tenure for the project duration. He also said other potential benefits of an oil and gas discovery included electricity generation, production of liquid petroleum, liquefied petroleum gas (LPG), fertiliser production and petrochemicals.

President Mnangagwa said the signing of the PEDPA with Geo-Associates, (Invictus’ 80 per cent owned subsidiary), was testimony to the Government’s commitment to open up the economy to investment as well as engage and reengage the global community to do business in Zimbabwe. Results of data gathered by American oil giant Mobil in the early 90s and reprocessed using modern technology have shown encouraging evidence supporting the potential existence of hydrocarbons in the prospective area.

Further similar work, using the latest technology, on denser line spacing (seismic study), which was completed in September last year, has also indicated the huge potential for oil and gas deposits in Muzarabani and Mbire.

The seismic, gathering sub-surface vibrations to investigate the potential existence of domes trapping oil/gas, was carried out by an experienced Canadian firm, Polaris Natural Resources.

Invictus chief executive, Scott MacMillan, said in an interview that the Exalo Rig 202 equipment had arrived in Beira, Mozambique and was now ready to be transported to Zimbabwe.

He said the company was on track to commence the exploration drilling programme at the end of July and in August. However, he said the commencement of the drilling exercise “would depend on how the rest of the rig move goes and (if there will be) any delays with border (clearing) and rig up.

But Mr MacMillan said the rig equipment was already “on its way”. “First load clearing customs (is underway) in Mozambique at the moment”. The company estimates up to U$25 million would be spent on the drilling.

In an earlier update, Invictus said the rig and associated equipment were expected during the course of June ahead of the commencement of the drilling programme at the end of next month. Invictus said, then, that following the completion of clearing procedures and documentation, the Exalo Rig 202 has commenced mobilisation from Songo Songo Island in Tanzania to Cabora Bassa.

“The rig and associated equipment will arrive over the course of June and commence rig up to drill the first of two wells in the company’s upcoming exploration campaign in the Cabora Bassa Basin,” it said.

Invictus said the Mukuyu-1 well pad construction was nearing completion following the finalisation of civil works including pad levelling and compaction, water supply and reservoirs.

The concrete footings for the rig will be poured for curing ahead of the arrival of the rig to the wellsite.

“The Mukuyu-1 well will test multiple stacked targets within the greater Mukuyu structure, which is independently estimated to contain 8.2 Tcf (Trillion Cubic Feet) + 247 million barrels of conventional gas condensate (gross mean unrisked),” Invictus said.

Invictus has since been advised that the pre-gazettal administration process to increase its Special Grant 4571 (SG 4571) area by seven-fold has been completed and awaits publishing in the Government Gazette.

Invictus’ subsidiary, Geo Associates and the Sovereign Wealth Fund of Zimbabwe, recently executed a Heads of Agreement (HoA) to increase its SG 4571 licence area from 100 000 hectares to 709 300 ha.

Mr Macmillan said earlier; “The commencement of the rig mobilisation marks another milestone in the project as we prepare to commence drilling the Mukuyu-1 well, the first well in our potentially play opening two-well exploration campaign in the frontier Cabora Bassa Basin.

“The enlarged SG 4571 licence provides us with a basin master position encompassing the entire Cabora Bassa Basin in Zimbabwe.

“Subject to making an opening discovery with one of our first two wells, it potentially could provide us with future discoveries on a large scale within the basin which will be transformational for the company and the Republic of Zimbabwe.”

The company has committed to drill a second well in the campaign to test the newly identified basin margin play which was matured through the CB21 Seismic Survey completed in November 2021.

Source – Sunday Mail

The country’s largest body representing the artisanal and small-scale mining (ASM) sector Zimbabwe Miners Federation (ZMF) has invited mining stakeholders from the country and abroad to exhibit in the specialized small to medium-scale mining Exhibition Hall at this year’s Mining, Engineering and Transport expo (MineEntra) to be held in Bulawayo.

Rudairo Mapuranga

According to ZMF CEO Mr Wellington Takavarasha, the Federation is offering this unique opportunity with packages that cater to businesses intending to make a breakthrough into the small to medium mining sector.

“With major decision-makers from the public and private sectors attending the event from Zimbabwe and surrounding countries, you are guaranteed to reach a wide range of targeted audience from the mining sector.’

“The Zimbabwe Miners Federation (ZMF) will, from this year be hosting small to medium scale miners exhibitors in Hall no 5 at ZITF. We are therefore cordially inviting you to attend, exhibit and participate in Hall 5 under the ZMF Flagship.

“This hall will afford you and your organisation a rare but significant opportunity to interact with serious players and stakeholders within the mining industry. We have also created private meeting rooms and conferences which will be held concurrently with the exhibition. This will result in a hive of activity for the small-medium scale miners, service providers and government arms attending.

“We are offering an early-bird 10% discount for bookings and payments made before the 10th of July 2022

“In addition, an exhibitor will get FIRST annual subscription membership to the Zimbabwe Miners Federation which includes positioning and mentioning on the ZMF website and access to the small to the ZMF Miners database and preferential consideration to all ZMF events, nationally.

 “Plus, the exhibitor will get the opportunity to be ONE of only 10 stakeholders invited to participate in the Zimbabwe Miners Federation Equipment Outreach Show that will take place over the course of the next 3 months.

“ZMF will be touring the 8 mining provinces of Zimbabwe and offering a variety of packages to the small to medium scale miners comprising of start-up to semi-advanced mining equipment to be distributed on lease hire purchase scheme.

“It is ZMF’s premium conference and exhibition that will assemble key representatives from the local and regional mining industry along with regional business leaders to network and delve into strategic conversations.

“ It will provide the largest of its kind opportunity for participants to identify and capitalize on huge business opportunities available in Zimbabwe’s rich mining sector.

“Featuring a massive exhibition space and continent-oriented conference, this event will position itself as Zimbabwe’s flagship mining business and informative event by hosting 3 days of critical deliberations, latest product demonstrations, critical knowledge sharing, quality business meetings with influential mining and related Ministries and industry bigwigs.

“Over 3 000 miners drawn from across all the 8 Mining Provinces of Zimbabwe will attend this event and this will enable exhibitors to position themselves within the context of the mining market against the backdrop of the event.

“ This event provides an opportunity for exhibitors to collect invaluable market data and contacts to better position their brands and acquire feedback from the industry elite.

The Reserve Bank of Zimbabwe (RBZ) on today announced the introduction of gold coins into the market as a store of value.

In a statement following a meeting of the bank’s Monetary Policy Committee (MPC) on June 24, RBZ governor John Mangudya also announced some measures meant to curb inflation.

“The MPC resolved to introduce gold coins into the market as an instrument that will enable investors to store value. The gold coins will be minted by Fidelity Gold Refineries (Private) Limited and will be sold to the public through normal banking channels,” Mangudya said.

He said that the MPC had expressed great concern over the recent rise in inflation, which increased to 30.7 percent on a month-on-month basis for June 2022, thereby increasing the year-on-year inflation for June to 191.6 percent.

“The committee noted that the increase in inflation was undermining consumer demand and confidence and that, if not controlled, it would reverse the significant economic gains achieved over the past two years,” he said.

In that regard, the MPC resolved to put in place measures to align the interest rates with the inflation developments and enhance the circulation of foreign exchange, on top of the introduction of gold coins.

Interest rates and statutory reserves for financial institutions were reviewed with effect from July 1, with the MPC increasing the bank policy rate from 80 percent to 200 percent per annum.

It also increased the Medium Term Accommodation interest rate from 50 percent to 100 percent, while the minimum deposit rate was increased for Zimbabwean dollar savings from 12.5 percent to 40 percent per annum.

The minimum rate for Zimbabwean dollar time deposits was also increased from 25 percent to 80 percent per annum.

The MPC, however, maintained the Statutory Reserve Requirements at the current levels of 10 percent for demand and call deposits and 2.5 percent for savings and time deposits.

“In order to enhance the circulation of foreign currency in the economy, as well as to support the willing-buyer willing-seller foreign exchange market, the MPC resolved to maintain the current export retention thresholds across the various sectors of the economy and that 25 percent of the unutilized export receipts shall be liquidated at the willing-buyer willing-seller exchange rate after 120 days from the date of receipt of the export proceeds,” Mangudya added.

The MPC had also noted the widespread use of forwarding pricing in foreign exchange by some economic agents and had therefore resolved that mechanisms to formalize forward pricing arrangements should be created.

This would be done through the development of a market for forwarding exchange rates, he said.

Copper prices have dropped to their lowest point since March 2021, while iron ore also faltered to a six-month low. But why?

Copper

Three-month copper slumped to $US8725.50 ($12,656) per tonne on the London Metal Exchange on Wednesday on fears of a global economic slowdown and continued COVID-induced uncertainty in China.

Standard Chartered said copper prices were linked to several ever-changing variables.

“Base metals remain pressured by a challenging demand outlook related to China’s COVID-19 lockdowns and to monetary policy tightening raising recession fears over the trade-off between inflation and growth,” the financial services company wrote in a note.

“We expect the base metals complex to continue to take its cues from macro developments, US dollar moves, external market moves and risk appetite trends.”

China’s strict zero-COVID policy has seen the country bound to regular lockdowns, hampering its economy and manufacturing sector in the process. Often perceived as China’s Achilles heel, Wood Mackenzie is projecting the country can only produce 16 per cent of the copper needed for it to reach carbon neutrality by 2060.

But if the factories aren’t open due to a lockdown, demand drops and the price flops with it.

Iron ore

According to Mysteel, the price for 62 per cent Australian iron ore fines dropped $US6.75 per dry metric tonne (dmt) on day to $US109.35 ($158.6)/dmt on Wednesday – its lowest point since December 2021.

Commonwealth Bank of Australia analyst Vivek Dhar told Reuters this price slump was directly linked to the situation in China.

“Markets are particularly worried that demand growth expectations linked to China’s pledge to boost infrastructure investment may not materialise, especially with China’s zero-COVID policy still in play,” he said.

China has also increased its run-of-mine iron ore output of late, with Mysteel suggesting it grew 14 per cent on month in May to reach 97.8 million tonnes. This followed a decline in April.

China has been eager to boost its domestic iron ore output and reduce its reliance on external sources. The Financial Times has reported the country is also moving to establish its own centralised iron ore buyer, which it hopes can secure lower prices through larger bulk purchases.

At the end of the day, there’s a key contributor to copper and iron ore’s pitfalls – and that’s China.

Source: Australian resources and investment

The first female mine manager at Australia’s largest producing gold mine – Newcrest Mining’s Cadia Valley Operations – has been named the ‘Exceptional Woman in NSW Mining for 2022’.

Health, Safety and Environment Manager at Cadia Valley, Lyndsay Potts, was announced the winner at the NSW Minerals Council’s Women in Mining Awards ceremony in Sydney.

The event was attended by more than 250 people including representatives from the mining industry, the community and many MPs from the Government and Opposition, including the NSW Minister for Women Bronnie Taylor, NSW Deputy Premier Paul Toole, Shadow Minister for Women Jodie Harrison and Shadow Minister for Natural Resources Tania Mihailuk.

Potts has forged an untrodden path in the resources sector, taking up postings and leadership positions where there had been no female predecessor.

Her leadership brought significant health and safety improvements and saw Cadia East achieve a record 221 days without any recordable injuries.

Potts has juggled an impressive career while raising three young children and has used her leadership role at Cadia to strongly advocate for women in mining, including in her role as Cadia’s inclusion leader.

“These awards are a fantastic way of highlighting the efforts and achievements of women in mining. These incredible role models show young women and girls that there is so much potential for them in this industry,” Taylor said.

“We need more women to aspire to leadership positions in the NSW mining industry, now more than ever as we rebuild our economy following the COVID-19 pandemic.”

Other winners included Hetherington’s Tamara Woods who was named ‘NSW Exceptional Young Woman in Mining’ at the Awards ceremony.

Woods has become a highly sought-after senior adviser in developing community consultation strategies for clients, assisting in navigating and enhancing negotiations between all interested parties for important mining and exploration projects.

Emily Jaques from Newcrest Mining’s Cadia Valley Operations received the ‘Technological Innovation Award’ for developing the world’s first application of Hydrofloat technology for the recovery of sulphides.

Michelle Wetherell from CMOC-Northparkes Mines was awarded the ‘Gender Diversity Champion Award’ for her work in overseeing the introduction of the company’s parental leave program which resulted in a 100 per cent return to work rate. She has championed more flexible work-life-balance for all employees, including overseeing the first job-share arrangement in an operational role.

The ‘Outstanding Trade, Operator or Technician Award’ was presented to Casey Martin from Alkane Resources–Tomingley Gold Operations, a pioneer for women seeking to forge a career in mining.

In her previous role at the CSA mine in Cobar, Casey was the first woman on-site to gain a blasting explosives user licence.

In 2021, she joined Tomingley Gold Operations as an underground bogger operator, again breaking new ground as the first woman underground at the operation.

The winners in the five award categories will be entered into the Women in Resources National Awards.