ARTISANAL miners have been warned to stop mining activities during the rainy season to avoid possible mine collapses because of the wet ground.

“The rains have made mining shafts and pillars in unregulated mining operations weak, hence putting the lives of miners at risk. We would like to urge those in the small-scale and artisanal mining sectors to at least halt their operations temporarily until the rains have subsided.  This is one of the most dangerous seasons for small-scale and artisanal miners as we have seen lives being lost during this season,” the Zimbabwe Diamond and Allied Mineral Workers Union (Zidamwu) secretary-general Justice Chinhema said.

“Most small-scale miners have not invested in developing their mines and putting in place some safety measures thereby putting lives at risk. As a union we take note of the message coming from the Zimbabwe Miners Federation (ZMF) encouraging small-scale and artisanal miners to put safety first.”

ZMF recently said efforts were underway to raise awareness among small-scale miners against going under-ground as various parts of the country continued to receive high rains.

Chinhema said small-scale and artisanal miners were the major contributors to the gold mining sector in the country, hence the need for their formalisation and provision of equipment support.

“Worldwide economies are sustained through formalising small-scale and artisanal mining.  We want to see the government bringing together all players including small-scale and artisanal miners in efforts to eradicate illegal mining and reduce accidents,” he said.

In 2020, six miners were trapped in a mine shaft at Matshetshe Mine in Esigodini due to weak soils caused by the rains, while several other incidents of mine collapse were recorded throughout the country last year.

Newsday

Mangwana Opportunities Fund has agreed to increase its investment in Invictus Energy by way of a private placement for A$500 000, a development seen as strategic as this increases Zimbabwean ownership in the Australian listed company.

The fund is managed by Mangwana Capital and has Zimbabwe’s institutional investors including State-owned and private pension funds. It invests mainly in agriculture, natural resources, and tourism.

Managing director, Scott Macmillan said, “Mangwana’s increased stake in Invictus adds significant local ownership weight to the company and aligns well with the company’s commitment to in-country investor, community and government stakeholders, among others.”

Invictus Energy has also completed a capital raising programme to support its flagship Cabora Bassa project in Zimbabwe as the company raised a total of A$8 million from its placement and share purchase plan (SPP).

The SPP was oversubscribed, raising A$4 million although the company was originally targeting to raise $2 million after opting to accommodate as many shareholders as possible.

Just under four million shares will be issued under the SPP at a price of A10 cents each.

All SPP applicants will receive a one-for-two free attaching option with an exercise price of 14 cents and expiring in January 2025. The other A$4 million was raised from the placement.

Five million shares and 2,5 million options will be issued to Mangwana under the same terms as the SPP. The shares will be escrowed for a period of three months from the date of issue.

The funds from the capital raising will be used to fund initiatives to develop the company’s flagship Cahora Bassa project in Zimbabwe.

This includes payment of the rig mobilisation fee, purchase of long lead items, finalisation of the CB21 Seismic Survey data processing, and general working capital.

Managing Director Scott Macmillan said the company is in a solid position.

“Invictus is in a strong position ahead of its planned May drilling campaign thanks to an excellent show of support from retail investors and recent SPP participants, which allowed the company to double its targeted raise ahead of launching key pre-drilling initiatives in coming weeks,” he said.

The SPP and placement funding will help with drilling costs of Muzarabani-1. Besides, Invictus has identified significant potential for the Cahora Bassa Project and drilling of the world-class Muzarabani prospect is anticipated to commence in May.

Business Weekly

PARLIAMENTARY Portfolio Committee on Mines and Mining Development chairperson, Mr Edmund Mkaratigwa has said the draft Mines and Minerals Amendment Bill should be tabled in the legislative assembly during the first session of Parliament.

He said the Bill should be among the key priorities during this session of Parliament.

This comes as the sector is currently being governed by the Mines and Minerals Act of 1961, which has been described by stakeholders as archaic.

Since it was crafted over five decades ago, the current Act is reportedly creating a lot of confusion in the mining sector which stakeholders believe will be eradicated if the new bill is passed into law.

“The draft Mines and Minerals Amendment Bill should be among the key priorities in this session of Parliament and in this Government year.

“It has been placed among the key enablers of the 2022 Budget targets and the national vision for the upper middle-income economy,” said Mr Mkaratigwa in an interview yesterday.

He said the draft Bill still has to pass through the “hall of critics before it goes to the hall of fame”.

In that respect, Mr Mkaratigwa said all that is currently in it is not guaranteed to remain as consultations with stakeholders will seal what would be upheld as part of the sectoral legislative framework for our country.

“Naturally, where it included compelling mining companies to make their production and revenues a public record and also to enable both the state and citizens to monitor, curb mineral leakages and illicit financial flows, it aids accountability but the main issue is whether that should be part of the Act or the strategy,” he said.

Mr Mkaratigwa said the current spirit of the draft Bill is to have the best law for Zimbabwe, that strikes a balance and answers key questions by stakeholders.

“His Excellency the President had noted that new issues were introduced not necessarily that he was against it, but that he needed to give it more attention and adequate scrutiny,”

Mr Mkaratigwa said, adding the Executive wants sanity in the mining sector.

“The Executive should be at the forefront in advancing sectoral institutional and practice reforms being reinforced through the bill. Parliament is willing, the broader society is willing, the Executive is willing; and that means, the intention and spirit of the Bill cannot be delayed any further.”

The Chronicle