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Understanding The New Mining Royalties Regulation In Zimbabwe

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Understanding The New Mining Royalties Regulation In Zimbabwe

Miners in Zimbabwe are obligated to pay royalties to the State from the minerals they would have extracted.

by Fungai Chimwamurombe and Nontokhozo Hope Moyo

Royalty is a charge that the government levies on the volume of minerals produced at a mine or the income or profit made from the sale of those minerals. These royalties are remitted to the Revenue Authority adding on to the state reserve. All issues regarding minerals in Zimbabwe are governed by the Mines and Minerals Act [Chapter 21:05] together with other ancillary legislation like the Reserve Bank of Zimbabwe Act [Chapter 22:15] together with the Finance Act.

Through Statutory Instrument 189 of 2022, the government of Zimbabwe has promulgated new regulations to the effect that mineral royalties are to be paid partly in kind and partly in monetary form. The mineral royalties are collected from minerals like gold, diamonds, platinum group metals, lithium and all other minerals deemed to be components of the reserves maintained by the Reserve Bank of Zimbabwe. These regulations have also caused timeous amendments to the Finance Act and the Reserve Bank of Zimbabwe Act so as to ensure the cooperation in application of legislation.

Royalties remitted to the Zimbabwe Revenue Authority in respect of gold and those minerals specified shall be paid on the basis of 50% in kind and 50% in monetary form. With regards the “in kind component”, miners have to submit actual minerals they would have extracted continuing 50% of the Royalty pegged on them. The 50% monetary component would be paid up as follows; 40% in the Zimbabwean dollar (ZWL) currency and 10% in foreign currency. Prior to the promulgation of these regulations, royalties were paid only in monetary form.

According to section 251 of the Mines and Minerals Act, miners are obliged to submit their royalty not later than the tenth day of each month. Any person who fails to pay their mining royalty to the Zimbabwe Revenue Authority shall be guilty of an offence and liable to payment of a fine and or imprisonment for a period not exceeding six months.

Many actors in the mining sector are encouraged not to be taken aback as the new regulations do not impose any increase in the rate of royalties further it comes as a benefit for the nation at large as the state revenue is increased.

Source: Mandaq

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MMCZ appoints 8 coloured gemstones subagents

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MMCZ appoints 8 coloured gemstones subagents

The Minerals Marketing Corporation of Zimbabwe (MMCZ) has appointed five entities and three individuals to be subagents following Statutory Instrument (SI) 256 of 2019 which allows subagents to buy semi-precious stones (coloured gemstones) from small-scale miners and sell the stones through the entity.

Anerudo Mapuranga

The three individuals are renowned Mineral Economic Expert Lyman Mlambo, Innocent Majoni and Givemore Karichi have been licensed to buy gemstones while Boldtouch Trading, Rawbright Mining Consultancy (PVT LTD), Suzan General Trading, Merit Diamond Cutting and Polishing and Passpoint publishers are the companies given the go-ahead to trade in gemstones in the country.

The MMCZ said the registration of subagents to become semi-precious stone traders in the country is still in progress, therefore, is calling for individuals and companies interested to apply.

“MMCZ wishes to inform Zimbabwean citizens (individuals and companies) that invitations to submit an expression of interest to be considered and licenced as MMCZ subagents are still open. The purchase of coloured gemstones and selling same through the Corporation will be done in accordance to the MMCZ Act, Chapter 21:04,” MMCZ said in a statement.

Through its General Manager Mr Tongai Muzenda, MMCZ is upbeat to tap into the global growing demand for coloured gemstones which are expected to improve every year by 4.4 per cent from 2020 to 2026 as it seeks to make a significant mark towards the achievement of the upper middle-income economy by 2030.

Muzenda said MMCZ was however going to first create a friendly environment for gemstone miners, traders and cutters by creating a local market centre.

“Our vision is to turn around the gemstones sector into a US$1 billion industry by 2030. This starts by creating reliable sources for gemstones. Development of convenient trading centres in gem-stone producing regions where miners link up with gemstone processors. In the end, we hope to see more cutting and polishing centres for gemstones, research hubs in tertiary institutions and technologies in cutting and polishing of coloured,” Muzenda said.

Official gold buying prices Wednesday 23 October 2022

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Official gold buying prices Wednesday 23 October 2022

Fidelity Gold Refinery (FGR) official gold buying prices Wednesday 23 October 2022.

SG 90% AND ABOVE US$53.23/g
SG ABOVE 85% BUT BELOW 90% US$52.39/g
SG ABOVE 80% BUT BELOW 85% US$51.83/g
SG ABOVE 75% BUT BELOW 80% US$51.27/g
SAMPLE BELOW 10g BUT ABOVE 5g US$50.43/g
FIRE ASSAY CASH US$53.23/g

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

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

Mimosa to construct a 38MW solar power plant

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Mimosa to construct a 38MW solar power plant

Plans to construct a 38-megawatt Mimosa solar power plant to improve the provision of alternative energy for the company’s operations are underway.

The project will be carried out by Mimosa Mining Company (MMC), a producer of Platinum Group Metals (PGMs).

PPC Zimbabwe will establish a 10MW solar power plant at its Bulawayo plant, with 5MW set aside for internal use as well as the remainder fed into the national grid.

The country’s shift to investing in clean energy sources in line with commitments to adapt to and mitigate global climate change is backed by the alternative energy project.

Investment in alternative energy projects by such huge companies is expected to go a long way in enabling the company to address power outages. Additionally, the investment will help reduce expensive costs associated with alternative power. It will also improve operational efficiencies at a time when the country and also the region are experiencing subdued energy generation.

Mr. Steve Ndiyamba, general manager of MMC, said that their company must concentrate on renewable energy sources. He also claimed that they should also contribute to the reduction of carbon emissions.

He said that feasibility studies are currently being carried out on the Mimosa solar power plant. One of the results is expected to be the project cost.

Why the company is establishing the Mimosa solar power plant

According to Mr. Ndiyamba, to improve and supply power to the company’s operations, they have put plans in place to construct the power plant.

Furthermore, the company is committing millions of dollars to a plant optimization project to boost production. The country’s aim to achieve a US$12 billion mining industry by 2023 is on track.

The mine is expanding its mining activities and constructing a new tailings dam. It is also enhancing the efficiency of its processing.

A new tailings storage facility is being constructed for US$65 million.

A further US$38 million is being invested by the company in plant optimization. This will improve processing effectiveness. Additionally, it will also increase the amount of mineral ore the mine can recover.

The plant optimization project will be complete by the end of the year. It will boost output by 6% from its current capacity of 2,8 million metric tons of ore annually.

The mine is jointly owned by South African companies Sibanye-Stillwater and Impala Platinum. It is situated near Zvishavane town in the southern part of the Zimbabwean Great Dyke.

CR

Official gold buying prices Tuesday 22 October 2022

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Official gold buying prices Tuesday 22 October 2022

Fidelity Gold Refinery (FGR) official gold buying prices Tuesday 22 October 2022.

SG 90% AND ABOVE US$53.15/g
SG ABOVE 85% BUT BELOW 90% US$52.31/g
SG ABOVE 80% BUT BELOW 85% US$51.75/g
SG ABOVE 75% BUT BELOW 80% US$51.19/g
SAMPLE BELOW 10g BUT ABOVE 5g US$50.35/g
FIRE ASSAY CASH US$53.15/g

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

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

Government to establish a gold centre in Mazowe

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Government to establish a gold centre in Mazowe

In an endeavour to curb illicit financial flows through the selling of gold through informal markets, the government has announced it will establish a gold service centre in Mazowe in December.

Rudairo Mapuranga

Mazowe is known for the heavy presence of artisanal and small-scale miners, the majority of whom have no capacity to process their minerals.

This has created a situation where the miners process their ore through third parties most of whom are believed to be smuggling the gold out of the country.

Zimbabwe’s mining sector, especially the extraction of gold, has lately been characterised by illicit leakages of gold and it is believed the establishment of gold centres could help restrict obscure movement of the yellow metal. The gold sector carries a huge potential for the Zimbabwean economy with small-scale miners producing (at this moment in 2022) over 67 per cent of gold receipts which has necessitated consistent efforts to support their production.

Speaking at the launch of Zimbabwe Miners for Economic Development (Miners for ED) Mashonaland Central Chapter at Jumbo Mine Stadium in Mazowe, the Minister of Mines and Mining Development Hon Winston Chitando said the government was going to establish a gold service centre to assist miners in processing their ores.

“In December to support the President’s vision for the country to become an upper middle-income economy by 2030, we are going to establish a gold service centre here in Mazowe to assist our miners to process their ores,” Minister Chitando said.

Speaking at the same event Zimbabwe Miners Federation (ZMF) Mashonaland Central Province Chairperson Christine Munyoro commended the government for the gesture saying miners in Mazowe have been losing out while processing ores at some private mills.

“Our miners were losing a lot of money while processing at private mills, the move by the government is welcomed and it will be of benefit to us and the government because all the gold will be sold through formal channels,” Munyoro said.

Gold service centres are aimed at giving the miners access to equipment and transportation services. The Cabinet has approved proposals for the establishment of gold centres across the country. Areas targeted for the facilities include Makaha, Odzi, Mount Darwin, Shamva, Mazowe and Silobela.

The country’s gold buyer and exporter, Fidelity Gold Refinery (FGR) officials will also be stationed at the centres directly or through approved buying agencies to buy all the gold produced.

Traditionally, Zimbabwe issues 2 500 mining titles per annum but due to increased appetite to invest in mining, applications have soared to about 15 000 per annum, a 500 per cent increase. Zimbabwe is home to the world’s third-biggest reserves of gold, platinum, diamond, chrome, iron ore, coal, lithium, and other minerals and a revived minerals sector would go a long way in fuelling an economic turnaround.

Official gold buying prices Monday 21 October 2022

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Official gold buying prices Monday 21 October 2022

Fidelity Gold Refinery (FGR) official gold buying prices Monday 21 October 2022.

SG 90% AND ABOVE US$53.49/g
SG ABOVE 85% BUT BELOW 90% US$52.65/g
SG ABOVE 80% BUT BELOW 85% US$52.09/g
SG ABOVE 75% BUT BELOW 80% US$51.52/g
SAMPLE BELOW 10g BUT ABOVE 5g US$50.68/g
FIRE ASSAY CASH US$53.49/g

NB: Fire Assay cash price is for gold above 100gs and no sample is deducted.
For Fire Assay Transfer price, a sample of not more than 10g is deducted
A 2% royalty is charged on all deposits (Small-scale Miners)
A 5% royalty is charged on Primary Producers

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

Zim to ban exports of raw minerals and concentrates 

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Zim to ban exports of raw minerals and concentrates 

Zimbabwe will in days gazette a law that will ban exports of raw minerals and concentrates to enable the country to fully benefit from its mineral wealth without having to export more jobs.

Rudairo Mapuranga

Speaking at the official commissioning of the US$67 million new Central Shaft Expansion Project at Blanket Mine in Gwanda on Thursday President Mnangagwa said the move to ban exports of raw lithium comes at a time when Chinese Nationals were getting the commodity at a song in Mberengwa depriving the people of fair value.

He said if the country was to achieve its vision of becoming an upper middle-income economy by 2030, greater effort was supposed to be made to ensure that the export of raw minerals and concentrates is been banned.

“In line with Vision 2030, greater efforts should be made towards value addition and beneficiation of minerals. We cannot as a country continue to export primary products including concentrates and ores. Recently in Mberengwa, we discovered that there was a mountain with nothing but lithium and our people were collecting this lithium ore and being paid something like US$100 when that same quantity will fetch more than a thousand to US$2000 and then exporting it unprocessed, so Zimbabwe loses. Within a few days I’m gazetting a law prohibiting what has been happening in Mberengwa,” Mnangagwa said.

Last year the Cabinet approved a ban on all exports of unprocessed chrome ore in order to protect the ferrochrome industry, which it says is integral in the country’s attainment of an envisioned US$12 billion industry by 2023.

A cumulative twenty-two chrome smelters are now operating and are shared among nine foreign and local companies.

Mine Managers urged to invest in research

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Mine Managers urged to invest in research

Permanent Secretary in the Ministry of Mines and Mining Development Mr Pfungwa Kunaka has encouraged Mine Managers to take advantage of industrial hubs being spearheaded by the government to research on technologies that can propel the mining industry in Zimbabwe to achieve world-class status.

Rudairo Mapuranga

Speaking at the Association of Mine Managers of Zimbabwe‘s Annual General Meeting held at Elephant Hill Hotel in Victoria Falls which ran under the theme, Transition towards the present day 4th industrial revolution Kunaka said experts in the mining industry need to invest in research and development as the country seeks to achieve an upper middle-income economy by 2030.

“As mining experts, we need to invest in research and development. Zimbabwe has a framework that allows for research at various levels. It could be in universities where the sector can make use of industrial hubs that are being developed at these institutions,” Kunaka said.

He said as the Mine Managers were seeking to adopt the 4th industrial revolution, research was of importance as this will help in promoting and recognising safety and efficiency.

“Collectively, government and industry need quickly to formulate policies and frameworks that are responsive to the dictates of the 4IR. The policy matrix that is required includes mining fiscal regime, R&D, labour laws, investment framework etc. Under 4IR we have to adopt the technologies that promote and recognize safety and efficiency,” he said.

The Fourth Industrial Revolution, 4IR, or Industry 4.0, conceptualizes rapid change to technology, industries, and societal patterns and processes in the 21st century due to increasing interconnectivity and smart automation.

The digitisation of the mining sector and the broader economy should be seen as an opportunity to re-skill and re-direct workers into higher-value technology-driven jobs such as data mining and data analytics.

A greater emphasis on and investment in research and development funded by the mining industry at universities is seen as an important part of the mining sector’s future success. The creation of new academic and research chairs would lead to knowledge development and greater applied research.

The AMMZ celebrates 50 years this year. The technical arm of the mining industry as the AMMZ is sometimes referred to yesterday re-appointed Bulawayo Mining Company’s Elton Gwatidzo to lead the organisation for another year deputised by Unki Mine’s Abel Makura.

ZMF brings formalization to Mazowe gold fields

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ZMF brings formalization to Mazowe gold fields

The Zimbabwe Miners Federation (ZMF) has taken a move to formalize, professionalize and regularize the work by illegal miners at the Mazowe gold fields by engaging Metallon Corporation which owns the shut-down mine to control the work at the mining claims.

Rudairo Mapuranga

Through its recently formed Zimbabwe Miners for Economic Development (Miners for ED) ZMF engaged Metallon Corporation so that those who have been mining illegally at the mining site are managed and also that people from Mazowe benefit from the resource that is mined in their area.

Speaking at the launch of Miners for ED Mashonaland Central Chapter at Mazowe gold fields, ZMF President Ms Henrietta Rushwaya said her organization was working to formalize the work of artisanal miners so that they can be a formal sector.

“We are trying to remove our people from illegal activities. We are trying to remove our people from being called nuisances by big companies who are owners of these areas where our people have been illegally mining. We are also trying to make government generate revenue from the day-to-day workings that will be taking place,” Rushwaya said.

Speaking at the same event, Mazowe Gold Fields (Jumbo Mine) Mine Manager Mr Allan Musikavanhu said his mine was supporting ZMF for the country to achieve a formalization process. He said they wanted to lead by example in assisting the growth and development of the artisanal mining sector.

“Over the years, artisanal miners have been called derogatory names like makorokoza, yes they have been invading most big operations and mining illegally but today marks a different chapter as the mine has initiated and designed programs to empower them and achieve ZMF initiative in formalizing the sector.

“In support of ZMF we have started a formalization process so that the artisanal miners will mine formally observing all set regulations and standards,” Musikavanhu said.

For the country to achieve the President’s vision to see the economy earning an upper middle-income status by 2030 and the mining industry fetching US$12 billion annually, formalization has been one of the strategies for the country.

Speaking at the event Minister of Mines and Mining Development Hon Winston Chitando commended the ZMF for having the vision to see that closed mines like Mazowe can for a time implement formalization of mining to support the formal selling of minerals.

“The issue of formalization is supported by the government because it encourages miners to sell their minerals through formal channels. It also creates orderly mining because the miners will be managed,” Chitando said.

ZMF Chairperson Tichaona Mharadze said the thrust by his organization was to see all illegal activities happening at disused or closed operations being done legally and formally to avoid environmental degradation and accidents.

“As ZMF we are engaging big mines to give our youth tributes for them to formalize operations so that we can control how they are digging to minimize environmental degradation,” Mharadze said.

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