Mining ZimbabweLatest Mining News, Policy and Industry Updates

Zimbabwe is one of the richest countries on earth with over 63 discovered minerals.

It is a haven for Mining enthusiasts and is home to almost every mineral any Mining die-hards can ever dream of. From Gold to Platinum, Lithium, you name it we have it.

Many across the globe have unanswered questions on how they can have a piece of the Zimbabwean cake and Mining Zimbabwe took the opportunity to interview Zimbabwe’s Mines and Mining Development Minister Hon Winston Chitando to shed light on investing in Zimbabwe Mining.

Here is how the Mines and Mining Development Minister Hon Winston Chitando Investment Interview went.

KS May you give a brief description of the Mineral Resources in Zimbabwe?

• Zimbabwe has excellent geology, comparable to that of leading mining economies and has
unique and highly prospective geological environments:
• Expansive craton with high diamond prospectively;
• Widespread greenstone belts rich in precious metals, precious stones, base metals and
industrial minerals;
• The Great Dyke;
• Precambrian sedimentary basins rich in placer gold and diamond deposits
• Karoo basins rich in coal, coal bed methane gas (CBM), natural gas and uranium.
• Metamorphic belts rich in pegmatite minerals such as lithium, tantalite, rare earth elements
etc.
• Zimbabwe is host to about 60 minerals whose commercial profitability has been proven at
one point or another. The major minerals found in Zimbabwe include Gold, Platinum Group
Metals (PGMs), Diamonds, Chrome, Ferrochrome, Nickel, Copper, Iron, Lithium, Coal, Coal
Bed Methane (CBM) gas etc. Zimbabwe also has huge potential for Rare Earth Elements
(REE) as well as oil and gas.

Why should investors consider Zimbabwe and why?

Zimbabwe’s mining sector presents many competitive opportunities to different needs of diverse
investors as a result of:
• The abundance of mineral resources;
• Availability of a highly skilled labour force that is willing to work;
• Attractive Investment Incentives;
• Functional systems:
i. Effective and efficient minerals marketing system;
ii. Investor-friendly Mines and Minerals Act – currently being amended to
iii. make it more competitive;
iv. Responsive to relevant Government Ministries and institutions;
v. Progressive policies e.g. Ease of Doing Business and Rapid Results
vi. Initiative (RRI);
vii. Availability of good basic infrastructure – power, water, rail and road network.

Get the full interview on issue 55, page 8 HERE

Legislators have commended the country’s diamond producers for their commitment to Kimberly Process compliance requirements.

Prince Sunduzani

The Kimberly Process Review team is currently in the country, conducting an assessment of Zimbabwe’s compliance with set standards of the organisation.

The  Edmond Mkaratigwa led,  Portfolio Committee on Mines and Mining Development, has said this was demonstrated by the security systems at the mines and sorting houses and steps taken by the companies to address challenges faced by their host communities.

The committee said the companies, Anjin Investments, Zimbabwe Consolidated Diamond Company (Pvt) Ltd ( ZCDC ) and Murowa Diamond’s willingness to address the problems faced by communities they operate in the long and short term was commendable.

The Portfolio Committee in collaboration with the Ministry of Mines and Mining Development, diamond producers, the Minerals Marketing Corporation of Zimbabwe (MMCZ) and civil society organizations (CSOs) embarked on a self-assessment of the diamond sector to gauge if the country was compliant with the Kimberly Process Certification Scheme (KPCS).

“The diamond producers in the country Anjin, ZCDC and Murowa Diamonds showed commitment towards compliance with the requirements of the KPCS as demonstrated by the security systems at the mines and sorting houses. However, it is important for the companies to ensure availability of documentation on request during such visits,” said the committee in the diamond sector self-assessment report.

“Diamond producers, that include Anjin, ZCDC and Murowa Diamonds expressed their willingness to address challenges raised by local communities in the short-term whilst others would be addressed in the long term. There were too many community-based organizations in Marange and it was clear that they were not always speaking with one voice, hence making it difficult for mining companies to address all the challenges facing the communities.”

The committee also singled out the approach by ZCDC to initiate a self-assessment on its human rights impact on communities through the Initiative on Responsible Mineral Assurance (IRMA), which it viewed as a positive step towards promoting responsible sourcing.

It also noted that most of the government agencies that were visited including customs officials were generally conversant with the KPCS requirements, saying regular training was necessary, particularly for new recruits.

The Kimberly Process Certification Scheme is the core of the Kimberly Process, which is a multi-lateral trade regime established in 2003 by the United Nations General Council to prevent the flow of conflict diamonds with member states implementing control of shipments of rough diamonds and certifying diamonds as conflict-free.

HWANGE Colliery Company Limited (HCCL) projects to scale up high-value coal production from the current 15 000 tonnes per month to 150 000 tonnes per month in the last quarter of the year 2023 as part of measures to unearth the company’s potential.

To increase production, the coal miner says it has entered into an equipment mobilisation agreement for the Underground Mine, that will result in the company getting new underground mining equipment valued at more than US$15 million in the next two years.

“This arrangement will enable us to increase production to 50 000 tonnes per month in the second-half of 2022, then 100 000 tonnes per month first-half of 2023 and 150 000 tonnes per month in the last quarter of the year 2023 compared to the current production of 15 000 tonnes per month,” financial results for the year ended 31 December show.

“In addition, Opencast operations at the JKL pit will continue to be capacitated in order to increase high-value coking coal in the product mix, the target being to increase production to 90 000 tonnes per month by end of 2022.”

The firm added that it has also engaged a new mining contractor to increase high-value coking coal with a target production of 20 000 tonnes per month.

As part of strategies to boost production at Chaba Mine, the mine said it is in an advanced stage to engage a new mining contractor to increase thermal and industrial coal.

“This will result in increased monthly production by 40 000 towards the end of 2022. This will enable the company to meet its demand of dry products.”

The production is targeted to commence during the first quarter of this year and will generate about US$3,4 million in 2022.

Colliery noted that in the period under review, production increased by 49,5 percent and sales volumes also increased by 39 percent compared to the prior year.

“Going forward, the company is targeting to increase coking coal production and sales, which will in turn increase capacity to discharge obligations to creditors as well as create a positive balance sheet in the medium term.

During the period under review, the focus was on increasing production and sales of highvalue coking coal. Raw coking coal and clean coking coal sales increased by 226 percent from 63 294 tonnes in 2020 to 206 564 tonnes in 2021.

The coking coal sales volumes were however, limited by washing capacity constraints and the company redressed it by recommissioning a washing plant during the period under review, it noted.

The coking coal. Image taken from NS Energy
For Opencast operations, 1 804 663 tonnes were mined, a 53 percent increase in production from the previous year.

A total of 733,102 tonnes of coal was delivered to Hwange Power Station during the year, which was an increase of 11 percent from the previous year. Deliveries into the power station were however, negatively affected by plant challenges in the power station and limited stockholding space, it said.

Meanwhile, revenue improved by 31 percent from $7,2 billion in 2020 to $9,4 billion in 2021 on an inflation-adjusted basis.

The firm said this was largely driven by a combination of an increase in sales of high value coking coal and regular product price adjustments done during the year in line with market value.

Gross profit increased by 26 percent from $1,6 billion prior year to $2,1 billion in inflationadjusted terms this year.
Legacy debts contributed $904 million of unrealised losses on inflation-adjusted terms.

The Chronicle

OPERATIONS at coal miner Hwange Colliery Company for the 2021 financial year were hampered by depressed cashflows to import spares and consumables among other challenges despite a 49,5% increase in production.

In its financial results for the year ended December 31, the coal miner said it had been affected by the exchange rate impact on legacy debts.

“Legacy debts contributed $904 million of unrealised losses in inflation adjusted terms,” Hwange Colliery revealed in its financial statement.

Operations were also negatively affected by the prevalence of the COVID-19 pandemic, depressed cashflows to import spares and consumables as well as the depressed market for NPD (nuts, peas and duff) and duff products. The coalminer‘s production increased by 49,5% during the period under review with sales volumes increasing by 39% compared to prior year.

Hwange Colliery’s revenue improved by 31% from $7,2 billion in 2020 to $9,4 billion in 2021 on an inflation-adjusted basis. This, it said, was largely driven by a combination of an increase in sales of high value coking coal and regular product price adjustments done during the year in line with market value.

The coalminer’s gross profit increased by 26% from $1,6 billion prior year to $2,1 billion in inflation adjusted terms this year. The company posted a net profit of $28,6 million during the year.

Going forward, the company is targeting to increase coking coal production and sales, which will in turn increase capacity to fulfil its obligations to creditors.

On coal production, Hwange Colliery said raw coking coal and clean coking coal sales increased by 226% from 63 294 tonnes in 2020 to 206 564 tonnes in 2021 but the coking coal sales volumes were, however, limited by washing capacity constraints which the company redressed by recommissioning a washing plant during the period.

It revealed that total coal mined by opencast operations was 1 804 663 tonnes, a 53% increase in production from the previous year.

A total of 733,102 tonnes of coal was delivered to Hwange Power Station during the course of the year, which was an increase of 11% from previous year. Deliveries to the power station were, however, negatively affected by plant challenges at the power station and limited stock-holding space.

Coal production on its three Main Underground Mine was 27% higher than the previous year, spurred by improved operational funding and credit availed by spares suppliers.

The coal miner said it had entered into an equipment mobilisation agreement for the underground mine, that will result in the company getting new underground mining equipment valued in excess of US$15 million in the next two years.

This arrangement will enable it to increase production to 50 000 tonnes per month in the second half of 2022, then 100 000 tonnes per month in the first half of 2023 and 150 000 tonnes per month in the last quarter of year 2023 compared to the current production of
15 000 tonnes per month.

Hwange Colliery revealed that opencast operations at the JKL pit will continue to be capacitated in order to increase high value coking coal in the product mix, the target being to increase production to 90 000 tonnes per month by end of 2022.

The company also engaged a new mining contractor to increase high value coking coal with a target production of 20 000 tonnes per month.

At its Chaba Mine, the company is at an advanced stage to engage a new mining contractor to increase thermal and industrial production which would result in increased monthly output by 40 000 tonnes towards the end of 2022.

The company has also engaged a contractor to resuscitate beehive coke ovens to produce high value foundry coke with high demand on the export market.

The production is targeted to commence during the first quarter of 2022, and is expected to generate about US$3,4 million in 2022.

Newsday

THREE nights of pumping water out of the 240-metre-deep shaft at Bucks Mine in Colleen where seven miners have been trapped underground since Saturday were met with dead silence when the first body was finally hoisted out of the shaft.

After waiting for days with no idea what could have been happening with their loved ones underground, anxious relatives could finally see the culmination of their wait.

While some watched helplessly, others couldn’t hold back tears. They stood, watched and wept silently as the rescue team battled with a blue drum containing the body of one of the trapped miners at around 9.30AM.

In that moment, all hope started to peel off.

Another body emerged at around 12 noon and was again met with dead silence, blank stares and tears.
Dejected relatives watch as more bodies are brought to the surface

By 1.50PM, another body was being hoisted to the surface, and at this point, it was clear there were no survivors from the accident as some of the retrieved bodies had been badly injured with skin peeling off due to prolonged exposure to water.

It must’ve been hard to be a police officer as co-workers struggled to identify some of the miners whose faces had been defaced.

The blankets covering the bodies were opened and closed several times before positive identifications could be made so that the correct relatives could be asked to identify the bodies.

The rescue workers who have been on the mission 24/7 since they were called in to assist, some of whom have been living underground since Saturday continued to hoist more miners out with a body count of five by 5PM.

The inevitable would soon follow — packing up the deceased belongings and holding family caucuses on what the next move would be.

Members from various miners’ associations gathered to commiserate with the bereaved families and offer assistance to the rescue team in retrieving the trapped miners’ bodies.

By 6PM, six bodies had been retrieved with the seventh one reportedly visible to the rescue team but partly crushed by the plunged skip.

Speaking at the scene of the accident yesterday, Mines and Mining Development Deputy Minister Polite Kambamura urged miners to adhere to safety standards in order to avoid similar accidents in future.

“It’s sad that we lost seven miners of this operation but we want to thank everyone who is here and has been making frantic efforts to rescue those who drowned underground. We’ve so far managed to retrieve five bodies; the sixth body is still underground but it will be out in the next hour. The seventh body is still trapped underground under a cocopone which we’re trying to move so that we can have space to get the body out. We’re confident that we’ll be able to retrieve all the seven bodies,” said Deputy Minister Kambamura.

Mines and Mining Development Deputy Minister Polite Kambamura (right) gets briefed on the rescue operation by national chief mining engineer Mr Michael Munodawafa yesterday He extended his condolences to the families and co-workers of the deceased.

“We’re so saddened as Government and want to urge the communities around to adhere to all safety standards to make sure that such accidents don’t happen in future. Currently, the department of the chief Government mining engineer is going around doing safety awareness campaigns together with the Ministry of Environment to make sure that miners adhere to safety standards and a safe working environment,” said Deputy Minister Kambamura.

Vubachikwe Mine rescue team captain Mr Cleopas Karima said the rescue mission had been a difficult one.

“We started pumping water on Sunday around 10PM because the mine had problems with broken pipes so we started by equipping the pipes and the pump. We continued pumping until Monday around 10PM, that’s when we started to see the first body floating on top of water.

“We continued pumping until today (yesterday) around 5AM, that’s when we saw six bodies,” said Mr Karima.

He said the team started cleaning the shaft and installing some working platforms to enable them to retrieve the bodies.

“We started retrieving the bodies around 9AM today (yesterday) but still our challenge is that there’s still water underground.

The water from the expected platform is about three meters which makes it difficult for us.

We’ve retrieved five bodies, the sixth one is on its way up now. The seventh body is still a challenge but there are positive signs that we’ll retrieve it soon. If we fail, we’re going to pump water again so that we can retrieve it,” said Mr Karima.

Zimbabwe Miners Federation president Ms Henrietta Rushwaya speak to some of the rescuers

He said the top part of the seventh body was still trapped underwater.
“We’re fighting to retrieve it. This has been a difficult activity considering the state of the mine. It’s been hard but we’ve managed to sail through. We hope we’re going to retrieve the seventh body soon. We’ve had help from some of the guys from here. It’s a hard situation especially considering that these bodies have been in water since Saturday up to now. The bad smells and you can imagine the water with blood and everything,” said Mr Karima.

Zimbabwe Miners Federation Matabeleland South chapter chairman Mr Philemon Mukwili said the bereaved families would be assisted with burial logistics.

“We saw this accident as a challenge to us because we now understand that most smallscale miners lack knowledge of health and safety which is very important in our mining operations. We’ll be training our miners so that they understand the importance of safety in the mines. Most miners were not taking issues of health and safety seriously such that when we called for training, most miners were not coming. However, these trainings will be useful in reducing accidents in our mines,” said Mr Mukwili.

The Chronicle

Victoria Falls Stock Exchange-listed Caledonia Mining Corporation has commenced discussion with the Zimbabwe Electricity Transmission and Distribution Company (ZETDC) to connect its US$14 million solar plant to the national grid.

ZETDC is a division of State-run power utility, Zesa Holdings, which sells power to consumers.

Independent power producers sign agreements with the utility to help them sell output from their facilities.

The plant is expected to be commissioned next month.

“The company is in talks with the Zimbabwe Electricity Transmission and Distribution Company to co-ordinate the commissioning and connection of the plant to the 33KV grid and it is expected that the plant will be commissioned in June 2022,” the mining company said in its latest management’s discussion and analysis.

“Manufacturing delays and port closures due to the current COVID-19 lockdowns in China could impact the supply of the remaining equipment and may cause delays to the commissioning date. This equipment is not currently on the critical path to complete the project.”

“The company has commenced the evaluation of a further phase for the solar project to provide for Blanket’s peak demand during daylight hours. This will require an agreement between the company and the Zimbabwean authorities regarding the treatment of power that will be generated by a second phase that is surplus to Blanket’s requirements and or the installation of storage capacity,” it said.

Blanket, which is Caledonia’s flagship operation, suffers from unstable grid power and load shedding which results in frequent and prolonged power outages.

In late 2019, Caledonia initiated a tender process to identify parties to make proposals for a solar project to reduce Blanket’s reliance on grid power. After careful consideration, Caledonia’s board approved the construction of a 12 mega-watt alternating current solar plant at a revised construction cost of approximately US$14 million.

The plant is expected to provide all of Blanket’s minimum electricity demand during daylight hours. Blanket will continue to rely on the grid and generators to provide additional power during daylight hours and at night.

In 2020, the company raised US$13 million to fund the project through the sale of 597 963 shares at an average price of US$21,74 per share.

Currently, the 40-hectare site for the project has been cleared and fenced and Caledonia has obtained the necessary licences and permits for the project.

Voltalia, an international renewable energy provider, has been appointed as contractor for the project under an engineering, procurement and construction contract.

Caledonia provided Voltalia with a notice to proceed in March 2021 and has made an advance payment of US$1,8 million for long lead time items that are required to construct the plant. It said orders had been placed for approximately 95% of the solar equipment required to build the plant.

Civil works on the internal roads, drainage, foundations for equipment and the operations and maintenance building have commenced.

The majority of the equipment to construct the project has either been delivered or is en route to site.

Approximately 4 300 holes have been drilled on the structure to be constructed.

Caledonia said 15 770 metres of low voltage cabling has been installed out of a total of 15 932 metres.

Newsday