Mining ZimbabweLatest Mining News, Policy and Industry Updates

DOROWA Minerals, the firm that produces phosphate for Zimbabwe’s fertiliser makers, is to decommission its plant and replace it with efficient technologies, according to Industrial Development Corporation (IDC) chairperson Winston Makamure.

The IDC controls 100% shareholding in Dorowa through its fertiliser production unit, Chemplex Corporation Limited Group.

In the past six months, the board has helped Dorowa resume magnetite exports and the foreign currency generated from the sales was being channelled towards capital expenditure.

Makamure told businessdigest this week that his plan was to reduce costs at Dorowa and free up resources for funding a string of projects that the IDC is undertaking, as it champions rural industrialisation.

He did not say how old the plant was.

However, Makamure said it last underwent major maintenance during the colonial era in 1975, which means it has been propelling Zimbabwe’s agricultural sector for 47 years since the major overhaul.

It could be one of the country’s oldest plants.

“The phosphate deposits are massive at Dorowa,” Makamure said.

“For us to meet national demand, we definitely need to ramp up production. But the plant, which we have at Dorowa is very old.  I think the last time there was major plant maintenance was in 1975. We are making do with that but the next thing is we now need to move with technology.

“The money, which we are getting from magnetite exports, has started ramping up the magnetite production,” he added.

Makamure said magnetite exports were expected to generate up to US$1,5 million per month, giving Dorowa a fresh impetus to fund capital projects currently underway.

“I think by July we should be producing 6 000 tonnes per month,” he said.

“Now, 6 000 tonnes per month gives us US$1,5 million per month. That is what we will now start generating. For us to be fully self-sufficient in terms of Compound D fertilisers, we need to move away from old antiquated equipment. We need to bring new technology.

‘We need to put a completely new plant. The new plant and everything will require US$70 million. We have already started talks. I think the process has actually moved quite a stage,” Makamure added.

He said this level of funding would be enough to help the firm commission new equipment for processing the resource.

The initial stages of the project have already started, Makamure said.

“It’s a process, which is being finalised in terms of timeframes and everything,” he added.

In 2019, the Confederation of Zimbabwe Industries (CZI) said the country was running on plants, which were commissioned as far back as 1947.

The CZI said antiquated plants were burning cash and piling up pressures of industries by guzzling electricity.

Frequent breakdowns due to old age were also rampant, according to the CZI, which has indicated that industries required up to US$2 billion to revamp plants in line with global trends.

The Independent

STATE-OWNED diamond miner, Zimbabwe Consolidated Diamond Company (ZCDC)’s gems are back on the market after a seven-month hiatus.

The ZCDC has been on a massive production ramp up spearheaded by a new management team. Last year, for the first time, the diamond company declared a dividend to its sole shareholder, the government.

In an interview, ZCDC chief executive officer Mark Mabhudhu  confirmed the development.

In 2020, ZCDC indicated that 11 local and international sales it had planned did not materialise due to Covid-19 restrictions, after battling government-sanctioned moratoriums. The miner had only managed to conduct four sales in 2019 out of the planned 10, a similar number to what it achieved the previous year when it first sold diamonds. ZCDC, which commenced operations in early 2016 did not conduct any sales that year and in 2017.

The former acting chief executive officer, Roberto De Pretto lamented interference from the Office of the President and Cabinet (OPC). However, the new ZCDC chief executive committed to keeping the highest standards in the diamond sector as the country is set to assume the Kimberley Process (KP) chairmanship in 2023.

Zimbabwe is the vice chair of the global Kimberley Process Certification Scheme (KPCS) organisation and chair of the African Diamond Producers Association (ADPA).

“We will assume the KP chairmanship during 2023. Tasked with this level of responsibility at country level, ZCDC and other diamond producers in Zimbabwe have got to go far and beyond in not only maintaining the high standards expected of such responsible roles, but to exceed them,” Mabhudhu said.

“So you will notice that we are very busy preparing for these fora which will occupy us during 2022 and 2023.”

The halting of sales of diamonds at the state-owned miner also coincided with the blacklisting of prominent diamond dealer Jamal Ahmed through an instruction to the Minerals and Marketing Corporation of Zimbabwe (MMCZ) by the presidium.

Ahmed, who was involved in a vicious fight with former First Lady Grace Mugabe over a US$1,5 million diamond ring, had become the sole diamond buyer at MMCZ, arrangement which raised serious concerns in government.

The situation triggered ZCDC to scout for its preferred buyers from India and Belgium.

A source said: “Jamal had taken control of the auction and such concerns have always been raised by ZCDC officials but MMCZ had its own ideas since they were the marketers of the product. It only took the intervention of the President’s Office for Jamal to leave the diamond auction,” the source said.

“ZCDC had to halt diamond sales as they went on a crusade of inviting credible buyers from different countries. The idea was to bring competition to the auction.”

Ahmed has always denied the allegations of favouritism by MMCZ top officials, arguing that he was a credible buyer who offered competitive bids.

There are allegations that ZCDC evaluators and MMCZ marketers were part of a syndicate that leaked diamond prices to prospective buyers, eliminating competition in diamond buying.

Last year, the ZCDC launched an internal investigation, which led to the dismissal of one senior employee (name withheld) accused of leaking prices to buyers.

The search for buyers by ZCDC, the independent learnt, has created friction with MMCZ top leadership, who say they have the mandate to market the diamonds.

In 2018, the government introduced online diamond sales – the Zimbabwe Electronic Diamond Trading System (ZEDTS) to promote transparency and the ease of doing business.

According to Mines minister Winston Chitando when the system was launched, the implementation of the ZEDTS was supposed to “augur well for future diamond sales and supported the ease of doing business mantra”.

The system, he said, was also meant to ensure the sale of diamonds through the MMCZ was in line with global best practice.

Last year, MMCZ published an advert soliciting for partners in diamond processing under a venture capital agreement. This was in line with the corporation’s strategic initiatives towards increased value addition and foreign currency generation. But the venture failed after ZCDC raised objections because it was excluded.

The diamond trading industry in Zimbabwe has always been targeted by diamond smugglers, who use the Mozambique route.

Three years ago, a Lebanese diamond dealer Hussein Robai was deported from Zimbabwe over allegations of illegal diamond dealings with former ZCDC executives.

The Independent 

ZIMBABWE’S platinum production for the fourth quarter of 2021 increased 6% to 121 000 ounces from 115 000 ounces recorded the  same period in 2020. This increase was boosted by additional volumes from Unki Mines’ concentrator debottlenecking project which  offset a modest decline recorded by another platinum miner, Zimplats during the period.

According to the fourth quarter report by the World Platinum Investment Council (WPIC), there were lower grades and decreased concentrator recoveries which limited the country’s biggest platinum producer, Zimplats.

However, the country’s fourth quarter platinum production was then improved by the debottlenecking project at Unki Mines, which is the country’s third largest platinum producer.

“Zimbabwe’s platinum production increased 6% (+6 000 ounces) to 121 000 ounces as additional volumes from the concentrator debottlenecking project at Unki offset a modest decline from Zimplats, where lower grades and decreased concentrator recoveries limited output,” WPIC said.

During the period under review, Russia’s output was virtually unchanged year-on-year as the disruption from the mine flooding and concentrator stoppage earlier in the year normalised. Russia is one of the world’s largest platinum producers.

North American production declined 23% to 63 000 ounces, primarily due to the deferred impact of the strike at Vale’s Sudbury operations in addition to safety related production restrictions at Sibanye-Stillwater’s US operations.

Going forward, Zimbabwe’s production capacity is forecast to increase through the concentrator debottlenecking project at Unki and mine development at Zimplats.

North America is expected to add 86 000 ounces as disruption from the Sudbury strike and safety incidents of 2021 normalises, while project development progresses.

However, the ramp-up of new production areas brings inherent risks and regional labour shortages may hamper growth.

As part of growing the platinum production value chain, Zimbabwe’s platinum producers are engaging a consultant to come up with a roadmap that will culminate in the construction of a multi-million dollar base metal refinery.

This comes as Zimbabwe plans to establish a base metal refinery in 2025 and a precious metals refinery by 2027 to process platinum from all the country’s platinum mines.

Platinum miners have a plan to jointly develop a base-metal refinery in the country and the processing plant has been under consideration since 2014. The project is expected to cost about US$134 million.

The current platinum players in Zimbabwe include Zimplats, which is owned by Impala Platinum, Unki Mine – a subsidiary of Anglo American Platinum, and Mimosa, which is jointly owned by Impala and Sibanye Gold.

Zimbabwe holds the world’s largest deposits of platinum after South Africa and has been pushing mining firms operating in the country to build refineries to stop the export of raw platinum ore.

The Independent 

AN explosive dispute emerged between villagers and the government over the controversial licensing of a private company to mine chrome Mutorashanga.

The villagers are up in arms with the company which was licensed to extract the precious mineral within the age-old Green Pool which has unqualified sentimental value to the community.

The conflict was laid bare during parliamentary evidence hearing of a petition by three villagers in the area who alleged that the government’s ceding of mining rights to Amazon (Pvt) Ltd would destroy the heritage and tourism facilities.

Amazon has been awarded a 25-hectare piece of land within the Green Pool area to mine chrome.

The hearing was jointly conducted by the Ministry of Mines and Mining Development, the Ministry of Environment, Tourism and Hospitality industry and the Ministry of Home Affairs.

The Green Pools are a remnant of Ethel Mine, an asbestos mine that was closed after it collapsed some decades back.

The villagers alleged in their petition petitioners alleged and want the area to be placed under auspices of the Protected Places and Areas Act (Chapter 11:12) or Environmental Management Act (Chapter 20:27).

Samson Mugwa, Clemence Gonde, and Peter Mashayamombe’s told the joint committee that they would fight Amazon, but government representatives insisted there was nothing amiss.

“Our system has steps to take from engagement. We have met with people from Mutorashanga and an Environment Impact Assessment study (EIA) will be conducted by the Environmental Management Agency (EMA) before any mining activities commence. since 1918, it was a mine. So if the place is sacred, the people will allude to the petitioners during the EIA study,” mines ministry secretary Onesimo Moyo said.

He got support from Environment Secretary Munyaradzi Munodawafa who said: “The area has not been registered as a tourist attraction resort but Mines and Environment ministries should certify the area is not dangerous to communities for such activities as mining for which the company in question is set to undertake.”

“We have taken the water samples for further investigations. A full EIA is to be submitted to EMA this week. We recommend that part of the area be left out of the pool parameters to avoid confrontations so that there is a co-existence between tourism and mining activities,” he said.

However, Home Affairs official, director National Museums and Monuments of Zimbabwe (NMMZ) Godfrey Mahachi stated that the area had indeed some cultural heritage that needed to be respected and further investigated as alleged by the petitioners.

“The green pool is known as an Ancient Park due for tourism development and should therefore be a protected area. From the narratives we generate from the communities, the place has over the years acquired values of its own,” Mahachi said.

“We hear mysterious things happen at the place and there is a comparative advantage if you look at Chinhoyi curves which also have a site of cultural activities. If we are to declare it a national monument, we need to assess the values and traditions of the area for it to be considered sacred as well. What is it that makes it or keeps a place sacred? Let us not destroy the area that is in question. An investigation is necessary to seek more clarification from the people around,” he said.

NewZimbabwe

AT least 12 000 small-scale miners people from Matabeleland South Province have benefited from Farvic Consolidated Mine’s tribute system after the mining giant allocated them more than 80 mining claims.

The mine director, Mr Filimoni Sibanda, said the mine, situated near West Nicholson, has been doing projects at the claims but have now opted to give away some claims to local communities as tributes.

Most beneficiaries are from Gwanda District.

“Due to our dry region we then planned to give away 80 plus tributes to the local communities.

This started in 2013 and as of now we have around 12 000 people benefiting from it.

We give these claims to everyone regardless of where they come from though our priority lies with local communities.

The claims are under our licence, we give them a tribute which goes to the Ministry of Mines and Mining Development for approval under the standard tribute approval which the miners will then work under the Mines and Mineral Act and compliance with Environmental Management Authority,” he said.

One the beneficiaries, Mr Thulani Moyo, the manager of Sibambane Syndicate, said the mine has been giving people empowerment projects which were helping to alleviate poverty.

“As Sibambane tribute holders and beneficiaries we are very grateful to Farvic for their empowerment projects and the good work within the Communities Tributes.

We have over 2 000 families that are benefiting within Sibambene project at West Nicholson Mixnote (A) Mine which was awarded to us by Farvic Mine and social responsibility within Collen Bawn and West Nicholson community.

Some of the beneficiaries are taking their children to school, building houses, shops and more as they are making a living through these tributes.”

The Sunday News

A CONSIGNMENT of new mining equipment procured to boost production at Hwange Colliery Company’s Chaba Coal Mine has arrived in Hwange, signalling the beginning of a new era for the giant coal producer.

Hwange Colliery owns Chaba Coal Mine and is on an expansion project for the mine whose production is expected to increase following acquisition of two hydraulic mining shovels with a capacity to excavate up to 14 tonnes of coal ore.
Equipment used elsewhere has a capacity to excavate about four tonnes.

Barzem Enterprises, the country’s sole Caterpillar machinery dealer is responsible for the supply of equipment and technical support for the mine located between Number 3 and Number 5 coalfields.

The two CAT 6015B hydraulic mining shovels were delivered in Hwange in five pieces; the bucket and stick, the boom, the tracks and the cab, last week and engineers are busy assembling them before they can be commissioned and rolled out to start excavation.

It was imported via Durban in South Africa and is the first batch of more equipment that has been procured to boost coal mining especially ahead of commissioning of Unit 7 and 8 where demand for coal for thermal power production will increase.

The 100-tonne CAT 6015 hydraulic shovel is one of the best high-tech equipment that is renowned for its ability to move more material at the lowest possible cost.

It is well advanced in technology and enhances safety through its modern and well-designed cab and controls with enhanced serviceability, and is an assurance for increased coal production as one scoop of the bucket will carry an average payload of 14,6 tonnes.

Responding to questions, Barzem Enterprises Zimbabwe country manager, Mr Henry Madovi said the hydraulic shovels will be a game changer in the mining industry as they are the first of their own kind in Zimbabwe.

He said the country is in the right direction towards meeting the US$12 billion mining industry target by 2023, with the coal sector set to meet its contribution.

“Barzem Enterprises Zimbabwe has scored a first by bringing in state-of-the-art mining equipment to Hwange.

The sole CAT dealer in the country early this week, wheeled to Hwange two brand new 6015 hydraulic shovels and delivered them to one of the coal miners in the Hwange coalfields.

“As Barzem we are more than happy to have played a role in the coal mines’ production targets by providing high tech equipment that will boost production output.

We shall be providing the in-country technical expertise and support through our on-site CAT trained locally based technicians and engineers,” said Mr Madovi.

He said coal miners are already investing in state-of-the-art CAT machines to boost coal mining production in anticipation of increased demand for coal for power generation is once

Zimbabwe Power Company completes upgrading the Hwange power station.

“It was noted in the US$12 billion Mining Industry Roadmap that ageing equipment is chief among the factors hampering the achievement of local production targets towards the 2023 goals.

The 6015B shovels will boost production output by over 100 per cent provided they are supported by the correct, appropriate and adequate haulage trucks.

“The 6015-mining shovels are set to be a game-changer for local coal production as the equipment is rated as one of the best globally as it is certified to achieve twenty per cent higher production than similar equipment in its class,” said Mr Madovi.

The Sunday News

Government has said it is satisfied with progress made by mining sector players towards mineral beneficiation in line with the Government’s quest for a US$12 billion mining industry by 2023.

This comes as the government has, over the past five years, been exploring possible methods of ensuring beneficiation of minerals, with policies targeting mostly platinum, diamonds, gold and chrome mining with the intention to unlock the backward and forward linkages in the mining sector so as to create jobs.

Mines and Mining Development Deputy Minister, Dr Polite Kambamura, said some sector players have made progress and commitments while others are yet to bring in their comprehensive plans.

“Mineral beneficiation is work in progress, some have already started and these are within the diamond and platinum group metals (PGM’s) subsectors,” he said in an interview.

It is estimated that while Zimbabwe can produce up to 25 percent of the world’s supply in diamonds, it has not made much by way of foreign currency earnings.

If Zimbabwe adopts diamond beneficiation, the country stands to earn over US$8 billion annually and create 200,000 jobs.

On the other hand, platinum mining in Zimbabwe is done by three subsidiaries of South African firms, namely Zimplat, Unki and Mimosa.

Mimosa and Unki export platinum as concentrates while Zimplats exports as matte. In the chrome industry, the government is not content with the level of beneficiation at smelting level, and has given ultimatums for the mining firms to have a base metal refinery.

Dr Kambamura said players in the PGM sector have already made inroads and commitments to setting up of base metal refinery as well as the precious metal refinery.

“The US$1,8 million worth of investments committed by Zimplats are testimony to commitment towards mineral beneficiation but there are other players that have not indicated their direction,” he said.

Zimplats as part of their overall capital investment strategy last year approved a budget of US$1,8 billion to be implemented over a 10 year period. The group said implementation of the investment strategy began in 2021, with US$1,2 billion already approved for implementation.

Recently, Mr Nico Muller, the chief executive of Zimplats parent company Implats told investors that the company is investing US$521 million to expand smelter capacity, which will be fed by new mines and redevelopment.

“The first platinum matte is scheduled from January 2024 while the acid plant commissioning is expected in August 2024.

“A new concentrator which turns ore into the raw materials for platinum extraction will be completed this year,” he said.

While Zimplats exports platinum mattes, Mimosa, in which Implats has a 50-50 share with Sibanye Stillwater, ships its concentrates to South Africa for smelting.

The new capacity being built now will see all smelting — from Zimplats, Mimosa and possibly other producers — being done locally.

“What that will do is give us an opportunity to smelt Zimplats as well as Mimosa concentrate in Zimbabwe, and therefore qualify us for a dispensation against the export levies for unbeneficiated concentrate,” Muller said.

He added that Zimplats will be independent in Zimbabwe from the South African operations.
“It does then, obviously, with the removal of the Mimosa concentrates from our Rustenberg furnaces, create headroom in Rusternberg,” said Mr Muller.

According to Gerhard Potgieter, Implats Chief Operating Officer, Zimbabwe is a key asset for Implats and expanding smelting capacity makes sense.

He said: “One of the reasons why we have agreed to increase that capacity in Zimbabwe is that Zimbabwe is our playground, we know how to mine there, we know how to make money there.

So, it just makes sense for us to also benefit from it.”

According to Zimplats, the base metal refinery (BMR) will have a cost of US$540 million and the plant will have capacity for local PGM base metal refining as well as create more than 1000 jobs directly and indirectly. The Zimplats projects resonate well with the government’s quest of the mining sector becoming a US$12 billion industry by 2023 as well as the broader Vision 2030 which seeks to fundamentally transform Zimbabwe to an upper-middle-income economy by 2030.

Of the US$12 billion, gold, platinum diamonds will contribute US$4 billion, US$3 billion and US$1 billion respectively.

Chrome, iron ore and carbon steel will contribute US$$1 billion while coal and hydrocarbons will contribute the same. Lithium at US$500 000 while other minerals will constitute US$1.5 billion.

Chrome in Zimbabwe is mostly sold as ferrochrome, even though a significant portion is also exported as raw ores. About four major smelters, namely Zimbabwe Mining and Smelting Company; Maranatha; Zimbabwe Alloys; Riochrome, and Oliken in Kwekwe have been the main chrome smelting firms before the coming in of new entrants into the industry, which include some small-scale smelter installations exploiting Dyke ores, Afrochine Smelting
(Pvt), a subsidiary of Tsingshan Iron and Steel Group of China.

The Sunday Mail

Zimbabwe’s mineral commodity producers will enjoy limited benefit from the currently upsurge in international prices as it is nearly impossible to ramp up production in the short term, industry experts have said.

Commodity markets are being squeezed from increased demand as economies recover from the coronavirus pandemic as well as the impact from geopolitical factors that are affecting supplies.

As a result prices for metals and other internationally traded commodities are climbing at the fastest rate since 1995, pointing to a very good year for producers.

Gold extended its rally towards a record high on Tuesday, after investors made a beeline for the traditional safe-haven metal on mounting fears around the Russia-Ukraine crisis.

While the gold price has since retreated below US$2,000 per ounce, it is still trading 15,16 percent higher than its price a year ago. As at mid-morning yesterday, the gold price was up 2,44 percent for the week.

Gold miners are expected to benefit from the rush to safe haven amid the Ukraine crisis.

The benefit is however likekly to be limited to current production levels as the nature of mining does not allow any unplanned ramp up in production levels.

According to Caledonia Mining Corporation CEO Mark Learmonth the miner does not have the flexibility to increase production at short notice in response to a higher gold price.

“Production increases over and above our current mine plan will require years of planning and investment,” Learmonth said in an emailed response to Business Weekly.

Caledonia will however still benefit from the current high gold prices as it has been able to ramp up production within its planned targets.

In January this year, Caledonia announced record annual production of 67,476oz, exceeding revised increased guidance.

This year, Caledonia is guiding for production of 73,000 ounces of gold from its Blanket mine in southern Zimbabwe.

The miner’s strategy is also to focus on becoming a multi-asset gold producer now that the Central Shaft is complete and the Company can focus on other areas of its growth strategy, predominately de-risking the business from being a single asset producer.

As a country Zimbabwe is set to earn more from its gold as producers have almost doubled production.

Latest figures from Fidelity Printers and Refiners show that gold output for the first two months to February 2022 was 5,131kg against 2,168kg of gold produced prior year comparative.

Dr Wilson Gwatiringa, RioZim Group Corporate Affairs Executive said the company already has its plans which it will stick to.

He said what is happening to international commodities now is considered short term and as such RioZim will not ramp production to take advantage of the good prices.

Gwatiringa said the higher price situation can turn at any given time.

And already gold prices extended declines by Thursday mid morning after recording their worst drop in nearly 14 months in the previous session as a retreat in oil prices and planned diplomatic talks between Russia and Ukraine boosted risk appetite.

Business Weekly

Platinum Group Metals (PGM) producer, Mimosa Mining Company, says it invested US$40 million into capital projects in the six months to December 31, 2021 aimed at expanding mine life and production capacity.

“Capital expenditure increased 25 percent to US$40 million from US$32 million during the previous quarter as spending on the plant optimisation project accelerated and studies on the North Hill life-of-mine extensions were completed,” the company said.

It noted that the feasibility study was completed and discussions regarding fiscal accommodations were progressing with the Zimbabwean Government.

“The plant optimisation project is aimed at increasing capacity and improving process recoveries, but due to Covid-19-related delays, the project commissioning is scheduled for December 2022,” said Mimosa.

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