Mining ZimbabweLatest Mining News, Policy and Industry Updates

CEMENT manufacturing company PPC Zimbabwe has invested US$37million towards a 30 mega watts solar project as it seeks to mitigate power challenges that have been hampering production.

The company operates a clinker plant in Gwanda District at Colleen Bawn where 20 mega watts of solar powered electricity is set to be installed while Cement Siding which is the milling plant situated on the outskirts of Bulawayo is set to be installed with 10 mega watts of solar generated power.

With the country’s national grid falling short of electricity supply coupled with vandalism such as theft of cables, power outrages have affected production in a number of sectors including mining and manufacturing.

The installation of the solar system come not only as a mitigatory measure but the system is rapidly becoming a mainstream alternative energy source in the world.

Solar energy comes with a number of advantages that include less service disruption, reduced electricity bills, increase in value of energy-efficiency, renewable energy, reduced carbon emission as well as low maintenance costs amongst other advantages.

PPC Zimbabwe managing director Mr Kelibone Masiyane told Sunday Business last week at the company’ Cement Siding plant, that the project was part of the company’s efforts to scale up production.

“Next month we will have a ground breaking ceremony to set up a solar plant in our Collen Bawn plant. We are talking about a 20 mega watts solar plant. Here in Bulawayo we will set up a 10 mega watts plant. So these are efforts coming from our side in terms of complementing Government efforts. We have a lot of power challenges.

As we speak, this plant was down for the last four days due to power cuts. So what we are doing is to try and complement what government has been doing,” he said.

The development will not only scale up production but will come in handy for the nation as surplus energy will be fed into the national grid.

“We have injected US$37m towards the project. Our plant in Colleen Bawn uses only 13MW while the one in Bulawayo uses only 5MW hence the surplus will be fed into the national grid,” said Mr Masiyane.

Meanwhile, Permanent Secretary in the Ministry of Industry and Commerce Dr Mavis Sibanda describedthe development as one of the signs that industry is keen to grow.

“Companies have shown that they are putting more resources into production and that is very interesting. As you can see here at PPC they are putting a solar plant which means that the issue of electricity which has been mentioned by a few other companies will be dealt with.

People are not only waiting for the Government to come and help them, they are also investing in green energy like the PPC,” said Dr Sibanda.

The development will see increased local production of cement as well as the continued trajectory of increased manufacturing capacity utilisation to over 61 percent, according to estimates from industrialists.

The Sunday News

BULAWAYO Mining Company’s How Mine has increased gold output by 59% after a US$5 million capital injection and also gained Standards Association of Zimbabwe (SAZ) recognition.

The mine obtained SAZ certification for successfully using internationally recognized management procedures.

Speaking during the handover of the certificates, SAZ director-general Eve Gadzikwa said the company had been recognised for its commitment to ensure safety of workers and the environment.

“This important milestone underlines the determination and commitment of management and staff in safeguarding the health and safety of staff and stakeholders and protecting the environment,” she said.

“With the ever-changing legal and safety requirements impinging on co-operatives today, it makes good business sense to ensure that an organisation implements international standards to support every aspect of business.”

How Mine managing director Kimpton Chihota said the company had set new mining and milling records in 2021.

“Our gold output increased by 59% compared to the previous year. This improved performance is on the back of a capital injection of US$5m for the shaft sinking project, which opened up new mining areas,” he said.

“This project was commissioned in the last quarter of the year 2020. The mine is currently carrying out exploration, both on surface and underground, in order to open up the resource base for expansion.”

Chihota said they remained focused on contributing towards government’s target of a US$12 billion mining industry by the year 2023.

“Today, our company receives recognition for successfully implementing internationally-recognised management systems, ISO 14001:2015 and ISO 9001:2015. What we are witnessing here today is a business that has reached some of the highest principles expected of businesses in the modern world,” he said.

“It means that, today, Bulawayo Mining Company is committing itself to the highest standards in its operations and in its service to the community, and to our country.”

Chihota said the mine started with the implementation of the ISO 14001:2004 environmental management system, which was a commitment to the highest standards in managing and protecting our environment.

“We also implemented the globally renowned behaviour-based safety programme as a result, we saw a massive drop in annual injury numbers by 60%.”

Newsday

YOUNG Miners Foundation (YMF) has partnered with Bulawayo based KBM Consultancy, a mining and metallurgical consulting company as part of efforts to assist young small-scale miners formalise their operations and grow their enterprises to medium scale.

Formalisation of youths artisanal and small-scale miners has been viewed as one of the ways to curb smuggling of precious minerals out of the country, while complementing the country’s target to turn the mining sector into a US$12 billion industry by 2023.

In an interview, YMF chief executive officer Mr Payne Kupfuwa said the partnership with KBM Consultancy was in sync with their vision of up scaling young small-scale miners into formalised medium scale miners.

“Our aim as young miners is to positively contribute to the realisation of a US$12 billion mining economy target which should see Zimbabwe edging closer to the goal of being an upper-middle income country by 2030.

This can be achieved by working together with strategic partners such as KBM Consultancy to formalise and grow young miners’ enterprises into professional medium scale entities so that they boost their production capacities,” said Mr Kupfuwa.

He said their 2022 theme was: ‘Young Miners Collaborative Corporate Participation for Sustainable Mining by 2030’ and they were pushing towards creating strategic synergies, strategic partners with key stakeholders in mining as well as along the value chain.

Mr Kupfuwa said since the beginning of the year they had engagements with various stakeholders including Better Brands Jewellery, a local gold-buying agent to map the way forward on how best they could assist young miners.

“In terms of assistance, Better Brands Jewellery will be coming in to help young miners with exploration and extraction equipment so that they can sell their gold to them since they are an agent of Fidelity Printers and Refiners. We will continue to engage and partner with more key stakeholders in the mining sector,” he said.

He said they were also working with institutions to ensure that better opportunities are availed for employment of mining graduates or technicians from the Zimbabwe School of Mines and other universities.

Mr Kupfuwa said for 2022 they were looking at exchange programmes meant to give young miners exposure outside the country so that they get to understand how other young miners in other countries are managing to develop their small-scale mines to medium scale ones.

KBM Consultancy director of operations Mr Kudakwashe Mapurisa said they were going to provide services to young miners in the form of expertise ranging from mineral exploration, mining, crushing, milling and leaching of gold ores.

He said they aimed to assist with designing of facilities, construction of plants, management consultancy and training of staff.

“As YMF comes through for the development of small-scale miners into noticeable and profitable industries through professionalism and formalisation of all mining activities, we will work hand in glove with them.

“We will provide technical services input to ensure there is efficiency and productivity in mining operations all leading to improved gold production in the sector. The collective achievement will boost miners’ production capacities and positively contribute to the Government’s US$12 billion mining industry target,” added Mr Mapurisa.

Meanwhile, last month the Reserve Bank of Zimbabwe (RBZ) records revealed that in 2021, Zimbabwe’s large-scale gold producers delivered 11 159 kilogrammes while small-scale producers contributed 18 470,61 kilogrammes, a move that represented a 55,5 percent increase as compared to the previous year.

Mines and Mining Development Minister Winston Chitando is on record saying the US$12 billion mining industry target by 2023 is achievable as part of the broader macroeconomic roadmap towards achieving an upper middle-income economy by 2030.

The Sunday News

IMPALA Platinum (JSE: IMP, Implats), a leading producer of platinum group metals, announced that its gross concentrate volumes in H2 2021 decreased by 4% to 1.62 million 6E ounces from 1.68 million 6E ounces in H2 2020.

The company’s production from managed operations declined by 4% to 1.16 million 6E ounces (H2 2020: 1.21 million ounces) and production from joint venture operations declined by 4.2% to 271,000 6E ounces (H2 2020: 283,000 ounces).

Group refined production of 1.62 million 6E ounces, including saleable production from Impala Canada, declined by 5% from the comparative period.

The company added that refined volumes in the comparative period benefitted from increased availability of processing capacity due to the timing of annual processing maintenance.

Implats also reported that its sales volumes declined by 5% to 1.55 million 6E ounces from the comparative period, in line with lower refined production.

Importantly, the company said that its basic earnings for the period are expected to decrease by between 39% and 50% to be between R12.5 billion and R15.3 billion. Basic earnings per share for the period are expected to decrease by between 42% and 53%, to be between 1,529 cents and 1,872 cents per share.

Implats explained that in the comparative period (H2 2020), basic earnings of R25.1 billion or 3,222 cents per share, benefited from the reversal of impairment losses on property, plant and equipment and the prepayment of royalties of R10.6 billion or 1,362 cents per share (post-tax).

Implats is a leading producer of platinum group metals. The group is structured around six mining operations and Impala Refining Services, a toll refining business.

The company’s operations are located on the Bushveld Complex in South Africa, the Great Dyke in Zimbabwe – the two most significant PGM-bearing ore bodies in the world – and the Canadian Shield, a prominent layered igneous domain.

NewZimbabwe

HWANGE Colliery Company (HCC) has won a civil court order to evict about 200 ex-workers who had refused to vacate the properties citing outstanding terminal benefits.

The company has given them until month-end to move out and pave way for new occupants.

But the workers said the move was inhumane given that it was being effected at the peak of the rainy season.

“The ex-workers are refusing to vacate the Colliery houses saying the company owes them money.”

The coal miner recently evicted hundreds of its former employees from company houses in Number 1, Number 2, Number 5 and Lusumbami villages.

Some of the affected ex-workers retired 10 years ago and have been staying in the company houses waiting for full payment of their terminal benefits by the struggling firm.

They are expecting around US$20 000 each, but the company claims to have fully paid them in local currency in monthly instalments of $300.

In an unrelated matter, the Hwange Local Board has embarked on a stormwater drain clearing programme in the town to prevent flooding after 10 houses were recently affected by flash floods.

Town secretary Ndumiso Mdlalose said: “When the rains started, the engineering department’s teams were on high alert, monitoring areas that are prone to floods. In 2020, council undertook an extensive exercise, which saw it clearing storm drains and widening water courses to avert catastrophe.

“It also cleared the
1 200-millimetre diameter culvert on one of Empumalanga suburb’s major roads that had been stopping the flow of water over the past few years, leading to flash floods. Prior to the exercise, about 10 houses were perennially affected by floods.”

NewsDay

Zimbabwe’s largest platinum miner, Zimplats has set aside US$521m for the construction of a 38MW furnace and an acid plant as it targets to double the smelting capacity.

The investment is part of the miner’s US$1.8bn kitty recently approved by the board to be invested over a 10-year period beginning in 2021.

Zimplats’ current smelting capacity is at 132 000 tonnes of concentrate per year and with the capital injection the mine is expecting to hit 380 000 tonnes of concentrate per year.

“The expanded smelter complex will have capacity for toll treatment of third-party material. The acid plant, in addition to reducing Point-source sulphur dioxide emissions, will produce sulphuric acid – a vital feedstock in the manufacture of fertiliser,” the company said in a quarterly update for the period ending December 31, 2021.

Zimplats reported that they are within course in the implementation of Mupani Mine development project and Bimha mine upgrade as replacement to Rukodzi, Ngwarati and Mupfuti mines set to be depleted in the financial year 2022, 2025 and 2028 respectively.

“Implementation of the Mupani mine development project, the upgrade of Bimha mine and the construction of the third Concentrator plant progressed according to plan during the quarter, with project-to-date expenditure of US$211m and commitments of US$131m at period end, against a combined budget of US$562m,”  Zimplats said.

In the period under review, mined tonnage decrease by 7% both quarter-on-quarter and year-on-year mainly due to disruptions at Mupfuti Mine during a changeover of trackless mining equipment service provider.

Milled tonnes increased by 3% quarter-on-quarter and year-on-year due to higher running time at the concentrator plants while 6E metal in final product decreased by 2% to 140 768 ounces from the prior quarter, impacted by the lower head grade notwithstanding the higher tonnes milled.

Business Times