Mining ZimbabweLatest Mining News, Policy and Industry Updates

The small-scale and artisanal mining (ASM) sector has continued to dominate in the country’s economic revival by contributing over 77 percent of total gold deliveries to Fidelity Gold Refinery (FGR) in January 2022.

Rudairo Mapuranga

Speaking at the ZMF Induction and Stakeholders Consultative Workshop on Wednesday, Zimbabwe Miners Federation (ZMF) President Ms. Henrietta Rushwaya said the ASM sector delivered a total of 1.4 tonnes of gold in January 2022.

The ASM sector in January of the previous years has been delivering an average of 400 kgs making this year’s contribution increase to about 350 percent. Total deliveries to Fidelity in January by both small and large producers was 1.8 tonnes.

“There are now more than 1.5 million artisanal and small scale miners in Zimbabwe but despite the international up and downs over the past two years due to the covid-19 pandemic with its uncertainties, the ASM remains a vibrant sector averaging 60 percent gold deliveries as recorded by FGR.

“Of note is the marked improvement of gold deliveries for the first month of 2022 where the ASM delivered 2.4 tonnes and over the years the ASM would only deliver 400 kgs for the first month. Credit also goes to the government for realizing the full potential and the significance of the ASM sector by incentivising our operations. We are a sector that compliments government effort,” Rushwaya said.

Rushwaya emphasized the need for miners to prioritize sustainable mining for the growth of the small-scale and artisanal miners in Zimbabwe.

“As a mother body for ASM we attach great importance to corporate governance and we believe that for organisations to be successful, competitive, and sustainable in the long term a high standard of governance is indispensable,” Rushwaya said.

Speaking at the same event Zimbabwe’s Ambassador at Large, Ambassador Eurbert Angel said there was a need to support the ASM sector in Zimbabwe through sustainable and smart mining.

“In Zimbabwe, we have witnessed a great positive contribution to our economy by artisanal miners, the bigger part of gold deliveries is now coming from the ASM sector. To increase productivity in this sector there is a need to support artisanal miners through sustainable smart mining,” Angel said.

The value of gold receipts  jumped 180% to US$167.5m in January  this year  from US$59.9m reported in the same period last year on the back of increased output and firming prices.

Gold deliveries to the country’s sole buyer and marketer of the yellow metal Fidelity Printers and Refiners (FPR) also jumped 188% to 2.87 tonnes last month from 0.99 tonnes achieved in January last year.

This was attributed to improved mining policies.

“The total gold delivered to FPR in January 2022 stood at 2.867 tonnes  at an average price of US$58 410 per kilogramme,” FPR acting general manager Peter Magaramombe said.

The small scale miners delivered 2.05 tonnes in January this year compared to 0.355 tonnes  delivered during the same period last year.

The large mining houses delivered 0.814 tonnes  compared to 0.642 tonnes.

The Chamber of Mines of Zimbabwe  CEO Isaac Kwesu  said there  was, however, need for  miners to improve production to capitalise on the current strong mineral prices.

“The firm commodity prices continue to be good for miners but there is a need to ramp up production to ensure that we have capitalised on that positive aspect,” Kwesu said.

Last year, the gold export receipts rose 42% to US$1.7bn compared to US$1.2bn earned in 2020.

This was after gold deliveries to FPR soared 55% to 29.6 tonnes. The previous year, deliveries stood at 19.05.

This was, however, less than the 33.4 tonnes of gold delivered in 2018 .

Government introduced various initiatives, which appear to  be paying dividends.

Gold is the third largest foreign currency earner after platinum and diaspora remittances.

However, the government has been battling smuggling of the yellow metal in the past few years owing to payment delays by FPR and low prices compared to those obtained on the international market.

Government has, however, rectified the problem. It’s now paying timeously and the prices are now at par with those on the international markets.

In addition, the central bank has also scrapped taxes on small scale miners to encourage deliveries through formal channels.

Experts say there is a need to review retention levels for the large scale miners and capacitation of small scale miners to ramp up production.

On Monday, international gold prices stood at US $59 660 per kilogramme and Fidelity was paying above US$58 870 per kg to those who delivered over 20kg.

The government has also moved to provide equipment in gold centres to move towards helping the attainment of US$4bn gold export revenue.

Business Times 

The government is considering taking over part or all of Eskom’s R392 billion debt as it seeks to restructure the cash-strapped power utility’s loan obligations, according to the International Monetary Fund.

Eskom’s financial position is of particular concern and requires a decision on how to address its “unsustainable” debt levels, the Washington-based lender said in a statement published on its website following on-line meetings between its staff and South African officials.

The local authorities are discussing whether the state should assume part or all of the debt upfront or continue making annual transfers of funds to the company, which could be higher than budget estimates, it said.

While shifting Eskom’s debt onto the state’s balance sheet would make the utility financially viable and smooth its planned split into transmission, generation and distribution businesses, it would precipitate a marked deterioration in the nation’s already stretched finances. Gross government debt amounted to R4.27 trillion at the end of last year, compared with the National Treasury’s November estimate of R4.31 trillion, or 69.9 percent of gross domestic product, for the current fiscal year.

Surging debt and debt-service costs, the fastest-growing expenditure line item in the budget since 2011, are already key risks to fiscal sustainability and have been compounded by the fallout from the coronavirus pandemic, years of overspending, mismanagement and graft.

Transfers to Eskom averaged about 1 percent of GDP in the past two fiscal years, while its government-guaranteed loan facility stands at about 6 percent of GDP, according to the IMF.

The National Treasury didn’t make additional provisions for Eskom in November’s mediumterm budget policy statement and Finance Minister Enoch Godongwana suggested that the utility sell some of its coal-fired power stations to reduce its debt burden.

The Treasury didn’t immediately respond to an email from Bloomberg News seeking comment. The government has previously said it may take over some of the utility’s debt, but never suggested that it is considering assuming it in its entirety.

A MACHETE gang has invaded Carry Mine complex in Hope Fountain outside Bulawayo and embarked on illegal mining activities.

Mine owner Bekezela Moyo told NewsDay yesterday that the machete gang was led by a female miner Peniah Macheka.

He said invasion of his mine occurred last month and the matter was reported to the police on Thursday.

“Macheka came to the mine and claimed to have been given legal rights to operate within our space. We tried to ask her to move out, but she did not listen,” Moyo said.

“We reported the matter to the Hillside Police Station.  I took police officers to the mine. To our surprise, there were about 30 men armed with machetes who attacked us as we tried to talk to Macheka.

“Some police officers were attacked and seriously injured while trying to rescue us from the attack.  They even seized an officer’s service pistol during the melee. There was only one police officer who remained and tried to negotiate with them to return the gun that they had taken.  Macheka then agreed to negotiate with the police and was arrested and later fined.”

He said he had since sent a letter to the police requesting for assistance to resolve the issue.

“Macheka was fined $20 000 and she is still there occupying the space. She continues to threaten me. Now I can’t even work because it is no longer safe to do so,” Moyo said.

In a statement yesterday, Bulawayo police spokesperson Inspector Abednico Ncube said two people were arrested for illegal mining, adding that among them were Macheka (49) from Selborne and Honest Dlamini (48) from Pumula South who were the top bosses of the machete gang.

“The accused loaded a nine-tonne truck with gold ore and when asked by police, she failed to produce a registration certificate of ownership of the mine, leading to their arrest,” the statement read.

Police urged members of the public to report illegal mining activities to prevent clashes that might result in injuries and loss of life.

Newsday