Mining ZimbabweLatest Mining News, Policy and Industry Updates

As the stampede for the adoption of Li-ion batteries intensifies, Associated African Nickel Resources Ltd (“AANR”) has been growing its mining portfolio in Zimbabwe and Africa at large to satisfy the world’s growing demand for Li-Ion Battery technology.

Rudairo Mapuranga

The junior mining company has announced its intention to list on Zimbabwe US$ Denominated stock exchange, Victoria Falls Stock Exchange (VFEX) thereby attracting significant domestic capital trapped in Zimbabwe pension funds.

Li-Ion Battery technology is an essential component in the electric vehicle industry.

Reports have indicated that the Electric Vehicle rollout promises extraordinary Nickel demand growth, possibly 300-500 percent by 2040. The biggest suppliers of Nickel ore, Indonesia and the Philippines are producing expensive Nickel Oxide deposits that yield toxic waste.

AANR Chair Ben Mbanga indicated that the company and the Nation are on an expansion drive and are looking to spread their wings across the nickel value chain. This will help the company tap into the ever-growing Li-ion battery in line with the global shift towards clean energy alternatives.

“AANR is therefore focused on clean Nickel Sulphide deposits in Africa to yield traceable, sustainable EV-Battery Grade Nickel Sulphate and Cobalt Sulphate (99.5% pure). This has seen the company advancing rapidly in exploring nickel and other Li-Ion Battery technology required metals to advance the world’s increasing demand for green energy, “he said.

Nickel production for AANR remains significant because for small devices and Electric Vehicles, Li-Ion Batteries are unchallenged. Within Li-Ion technology, developments continue to reduce Cobalt requirements in favour of Nickel.

AANR projects in Zimbabwe

AANR intends to Beneficiate its ore in Zimbabwe to EV Battery-Grade Nickel Sulphate + a matching quantum of EV Battery-Grade Cobalt Sulphate – all traced to the source and certified as socially and environmentally responsible. This will likely attract significant price premiums. The following are projects being carried out by AANR in Zimbabwe.

Chaka Project

AANR’s Chaka Project incorporates a 19kms strike of the Chakari Belt including the mothballed Perseverance mine (ex Rio) – which closed for safety reasons during the civil war. Historically, float-concentrate from the mine’s high-grade sulphide ore was processed at Rio’s Empress smelter facility and refinery. The resource may be open at depth and amenable to near-term re-opening. Prospectivity promised by a Thompson model offers a roadmap for discoveries in repetitions targeted along the 19kms strike.

According to the Chaka project’s significant investment to date – geophysics, geochemistry, mapping, Hydrogeological studies, drilling, dewatering etc. The project is arguably in the top 10 global nickel sulphide prospects.

Exploration rollout

Ground-based Electromagnetic Survey – 100x100m TDEM moving transmitter loop; base frequency 1Hz and Average 26Amp pulses. EM targeted at nickeliferous, gossanous outcrop, soil, radiometric, and magnetic anomalies plus off-topographic expressions of bulging serpentinite structures mimicking known ore bodies. Conductors require analysis for differentiation between previously logged graphitic, conductive black shales versus massive sulphides.

Exploration Drilling & Resource Development plans

Drill defined anomalies for proof-of-mineralisation; and Massive & disseminated Sulphide bodies were identified to be drilled out to JORC compliance.

Maddy Project

The setting of the Maddy project is within the greater Madziwa Igneous Complex with Brownfield sites and extensive potential for blind ore body discovery based on new geological understanding.

The Maddy project is one of AANR’s lead projects with the potential for early production and extensive potential for multiple virgin nickel sulphide bodies. It Is a Brownfield with >50,000 tonnes of nickel produced historically.

The float-concentration residues of this history form a 14 million tonne tailings dump. AANR has surveyed & drilled this asset. A JORC compliant Resource of ~25,000 tonnes containing Ni Metal has been declared (mostly in Indicated category). Large parts of the dump are running at 0.2% and over, with early extraction tests showing that much of this is in sulphide particles. Various techniques are being tested to upgrade the dump material to >0.4% Ni whereafter flotation to 5%+ Ni is expected to be achievable.

The Company intends to advance this project to profitable production within 18 months.

During the first quarter of 2022, Maiden JORC Resource Declared 24,923 tonnes of contained nickel metal = ~USD$1 billion gross in situ metal inventory. A feasibility study has commenced intending to test the economic viability of tailings retreatment – targeting a Reserve and Balance Sheet revaluation on discounted NPV.

A comprehensive 2015 White Paper authored by Prendergast & Wilson – arguably two of the leading geologists in their field – has essentially revolutionised the Company’s view of the Madziwa Igneous Complex and offered (indirectly) a clear roadmap to new deposit discovery. This, therefore, means that Past Geological Survey Bulletins can be largely disregarded.

AANR has conducted extensive geophysical surveys over an area of roughly 10kms x 7 kms (Magnetic survey) to assist in the identification of further anomalous zones with nickel mineralization potential. These surveys are ongoing and have yielded excellent data prompting more expensive Stage 2 Geophysics. In stage 2, Legacy data & magnetic anomalies highlighted by Stage 1 Geophysics guided a recently completed time-domain electromagnetic survey. A large conductive body was pinpointed. Qualified interpretation leads the Company to believe it represents a massive sulphide, possibly a significant virgin nickel ore body – i.e. a high-value drill target.

Empress Project

The mineralogy and geological setting of Empress Nickel mine are unusual in that it hosts relatively high Gold, Silver, Palladium, Platinum, Rhodium & Rhenium credits in addition to the expected Nickel, Copper, Cobalt. Host minerals, in order of % occurrence, are pyrrhotite, pentlandite, chalcopyrite, pyrite, violarite and chalcocite.

The ratio of Nickel to Copper is also unusual in that it is almost 50/50 @ 14:13. It has become common practice, therefore, to refer to combined base metals (“CM”) – i.e. Ni+Cu, when referring to estimated contained metals (i.e. excl Co, Au, PGM’s)

Owned and mined by Rio Tinto until 1983, Empress was both open pit & underground, with total reported production of nett 100,000 tonnes of CM (USD$1.4 billion @ today’s pricing). Cobalt and Precious metals went largely unreported.

Rock Stockpiles, slag dumps and float tailings make up some 13 million tonnes lying on the surface – likely bearing some 40,000t CM. Residual underground reserves have been professionally estimated @ 80,000t CM underground excluding lateral extensions which would require exploration & resource definition drilling.

Exploration rollout

Geophysics Surveys around old mine site to detect orebody extensions at depth and nearby; and Targeted magnetic geophysics + geochemistry on surrounding areas, subject to tenure consolidation, to identify targets for EM; and Dewatering followed by limited re-equipping then LIDAR underground survey to map voids/pillars/stopes etc, define residual extractable resource; and Subject to outcomes of above, consider merits of underground EM and drilling for extensions.

Exploration Drilling & Resource Development plans:

Underground: channel sampling + limited drilling of halo; Surface drilling of strong anomalies in lateral extensions; and All above-mineralised zones drilled out to JORC compliance.

GOLD deliveries in the first quarter totalled 10 176,83kgs, a significant increase from 5 400,84kgs compared to the same period under review last year, Fidelity Printers and Refiners, the country’s gold refinery company, has revealed.

This reflects a growth of 88,4 percent compared to the last year’s output for the same period.

The gold refinery company also revealed that most of the gold is delivered by small-scale miners, who delivered 6 571,22kgs compared to 2 257,16kgs the same period last year.

Primary producers delivered 3 605,61kgs compared to 3 143,68kgs during the first quarter of 2021. In October 2019, President Mnangagwa launched the US$12 billion mining industry strategic roadmap by 2023 as the Second Republic set its sights on increasing minerals’ contribution to the economy.

Speaking to Business Chronicle, Zimbabwe Miners Federation (ZMF) chief executive officer Mr Wellington Takavarasha said increased gold output is attributed to the hard work of all mining stakeholders, including Government, with its relevant ministries, small-scale miners, Environmental Management Agency (EMA) and the buyers.

“The huge increase of gold output as recorded by Fidelity Printers is attributed to mining stakeholders, which include Zimbabwe Chamber of Mines, ZMF and other mining units for having collaborative efforts with other Government arms like EMA, which have given ease of doing business to small-scale miners,” said Mr Takavarasha.

“There has been so much Government involvement as it continued to have many engagements with miners.”

He said as ZMF they will continue to engage Government on issues such as formalisation of small-scale miners to continue increasing gold output.

“When talking about formalisation, we are talking about so many issues, which include decriminalisation of gold trade so that we think outside the box and be able to reach 100 tonnes of gold annually,” he said.

To achieve the US$12 billion mining sector by 2023, Mr Takavarasha said the Ministry of Mines and Mining Development together with ZMF have initiated a document called ZERO, whose scope is the formalisation and regularisation of illegal mining activities so that they are in the mainstream economy.

The mining sector is critical in generating foreign currency, which contributes about 70 percent of the forex earnings largely driven by gold, platinum and diamonds.

Meanwhile, gold producer Caledonia Mining Company Plc, has also recorded a 40,3 percent output increase to 18,515 ounces compared to 13,197 ounces in same period last year.

“The first quarter of 2022 was an excellent start to 2022. Gold production in the quarter represents a new production record for any first quarter. Production in April showed a further improvement: production of almost 6 800 ounces in the month reflects an annualised production rate that is marginally above the top end of our guidance range for
2022 of 73 000 to 80 000 ounces of gold.

“Higher production reflects increased tonnes milled, better grade and improved recovery. Production in the quarter excludes approximately 1 500 ounces of recoverable gold contained in an ore stockpile, which accumulated during the quarter as we await the commissioning of an additional mill later in the year,” the company said in its trade update.

The Chronicle

The Minister of Mines and Mining Development Winston Chitando has called on the investing public to prioritize financing mining exploration for huge returns as the country is underexplored.

Rudairo Mapuranga

The government of Zimbabwe in its quest to achieve an upper-middle-income economy by 2030 is convinced that mining has the potential for economic revival with exploration investment considered to take the mining industry to world-class level.

Speaking at this year’s Mining Indaba in Cape Town, South Africa last week, Minister Chitando said the country’s mining sector was a huge capital uplift therefore of significance for investors to bank their money into mineral exploration for huge returns.

“The reason why we have over 60 minerals but only about 10 being actively mined is because the country is under-explored so there are opportunities for those looking for capital uplift to come and invest and enjoy the huge capital uplift presented by Zimbabwe,” Minister Chitando said.

Hon Chitando said the country’s mining industry was a safe investment destination for investors as it has one of the best pieces of legislation in the world which protects and supports investors.

“We have as Zimbabwe one of the best pieces of mining legislation you can ever see in any country, the sector is governed by what is called the Mines and Minerals Act which is an excellent piece of legislation,” Chitando said.

Through the National Development Strategy-1 which seeks for the country to achieve an upper-middle-income economy, the mining industry is expected to contribute annual revenue of US$12 Billion by 2023 with exploration sighted as key to achieve the mark.

The background of mineral contribution to the US$12 billion is that US$4 billion will come from gold, platinum, US$3 billion; US$1 billion, diamonds; US$1 billion, coal; US$1 billion from chrome; ferrochrome and carbon steel, half a billion in lithium and US$1,5 billion from other minerals, summing it to US$12 billion.

The artisanal and small-scale miners (ASM) are also expected to play an important role towards the mining milestone with sector player’s committing to contribute US$4 billion by the targeted period.

Globally, to replace minerals that the country is mining, around 10 per cent of all capital expenditure in mining goes towards exploration, however, in Zimbabwe, it is near 0 per cent with the Finance Ministry throwing up a ridiculous budget for exploration.

CHROME miners are crying foul over underpricing of Zimbabwean ore by some Chinese chrome smelting companies.

This comes as chrome miners appealed to the government not to widen the export ban to include raw chrome fines. The chrome ore fines were exempted from the previous ban on raw chrome exports.

Miners claim that the fundamentals are not yet right for the ban on chrome fines, considering the experiences of the current ban on raw chrome exports, which has seen some Chinese smelters colluding to set prices that disadvantage chrome miners.

Currently, the biggest consumers of raw chrome are Chinese companies, who own a number of smelting facilities around the Great Dyke. There are indications that Chinese smelting companies are giving a raw deal to the miners.

This comes after there has been a surge in ferrochrome prices on the global market triggered by a spike in demand resulting from an increase in construction projects.

A miner, who spoke on condition of anonymity, said the issue of price manipulation was a thorny one, considering that the companies buying are just a small group.

“We recently met the Ministry of Mines and Mining Development over the issue and we were pleading for the extension on the proposed ban on chrome fines because we believe a ban will throw us back into the situation we are facing with Chinese smelters,” the chrome miner said.

“We believe the fundamentals are not yet right and any ban on the export of chrome fines will spell doom on miners. The Chinese have created a cartel that is busy manipulating prices despite the current surge in global ferrochrome prices,” the source said.

Mines ministry permanent secretary Onismo Moyo said he was yet to get the reports on the matter.

“I have not yet received anything to that effect, but I will have to check and come back to you,” Moyo said.

Zimbabwe Miners Federation (ZMF) secretary for external affairs Gift Karanda confirmed that they had made an appeal to the government on the chrome fines ban, but could not divulge more details.

“There is an appeal on the issue of chrome fines expected ban, but at the moment it is premature to comment on the matter and on the issue of chrome prices you can refer your questions to the Ministry of Mines,” Karanda said.

There are also concerns that Zimbabwe has become a target of Chinese companies that are dumping second-hand chrome smelters following the promulgation of an environmental law prohibiting the use of heavy environmentally unfriendly machinery in the Asian economic powerhouse.

In 2019, the State Council of China announced that it would ban new steel, coke, chrome and primary aluminium capacity in the Beijing-Tianjin-Hebei and Yangtze River Delta regions.

Within this region, Hebei’s steel production was expected to have further limited to 200 million tonnes by 2020.

Cities, such as Beijing and Guangdong, have been implementing this ban and other cities were expected to follow suit.

This came as China continued to push heavy industries, especially those involved in chrome smelting, to consider new technologies that are environmentally friendly.

This, therefore, meant that by migrating to the new technologies, countries like Zimbabwe became a lucrative and ready market to dump the old smelting machinery.

The Independent is informed that several chrome companies in Zimbabwe have since been approached by Chinese companies with the intention of striking deals on the smelters.

The Independent

ACUTE coal shortages grounded state run thermal power stations for 142 days during the first quarter of this year, triggering a sharp fall in production, the Zimbabwe Power Company (ZPC) says.

In a quarterly review covering the first three months of 2022, ZPC, a unit of power utility Zesa Holdings, said small thermal power stations contributed only 1% to total electricity output during the period.

Zimbabwe has three thermal power stations namely Bulawayo, Munyati and Harare.

ZPC did not disclose why the country experienced coal shortages.

But in the past few years, local miners have been struggling to meet demand for various reasons.

ZPC indicated that Bulawayo, Harare and Munyati power stations missed their quarterly power target of 47,50 gigawatt hours (GWh) by 45,17%.

However, the country surpassed its total quarterly power generation target by 18,55% due to improved reliability and plant optimisation at Hwange Thermal Power Station, as well as increased generation at Kariba hydro power station.

“The small thermal power stations missed their target which was pegged at 47,50GWh by 45,17% due to lack of coal stocks and low plant availability, which resulted in the stations shutting for a total of 142 days during the quarter,” ZPC said in its first quarter update.

Over the years, due to ageing plant equipment, small thermal power stations have lost their generation capacity, which has seen their output dropping to zero production on some days due to operational constraints.

The ZPC said 2022 started off well with notable improvement in output in the first quarter.

“The quarterly target, which was set at 1885,30GWh was surpassed by 18,55%.

“This is mainly attributed to improved reliability and plant optimisation at Hwange, as well as increased generation at Kariba hydro power station to cater for high system demand,” the update reads in part.

“Hwange generated with four units for the bulk of the quarter while all eight units at Kariba were available for peak generation on most days.”

Kariba power station contributed 70% of the total energy production in the period under review, 4% of which was exported to NamPower.

Hwange power station, which is undergoing a US$1,5 billion expansion programme,  contributed 29% of the total, the report noted.

“Kariba power station contributed more than planned as it was ramped to meet high system demand and compensate for low generation at the small thermal stations,” ZPC said.

Although the Hwange 7 and 8 expansion project has faced delays predominantly caused by the Covid–19 pandemic, ZPC said the project was proceeding smoothly and it was on course to commission Unit 7 at the end of November this year, while Unit 8 is expected to feed into the grid in April 2023.

The project is currently at 83% complete, said ZPC.

It said the construction of a second pipeline and upgrade of the existing Deka pump station commenced in 2021.

It is expected to be completed at the end of March 2023.

The US$48 million project is being implemented in parallel to the Hwange Unit 7 and 8 expansion project, and is expected to solve the perennial water supply problem at Hwange power station, the country’s largest coal-fired power plant

The ZPC said plans to repower Bulawayo power station were on course and the impasse over ownership issues between it and Bulawayo City Council has been escalated to the Ministry of Local Government, Public Works and National Housing for assistance.

The company said it was stirring towards the use of renewable energy for power generation in order to achieve zero harm to the environment.

Some of the projects on the cards include Gairezi Hydro Power Plant and Batoka Gorge Hydro Power Project.

The Batoka project, which is being jointly developed by the governments of Zambia and Zimbabwe through Zambezi River Authority, has a capacity of 1 200 MW.

Construction costs have been estimated at about US$2,3 billion.

The Standard 

CANADIAN based gold exploration and development company, Zephyr Minerals Ltd, is planning to acquire 75% stake in Zimbabwe’s Manicaland-based Chikanga Gold Mine in a deal that is pending due diligence in the coming fortnight.

If the deal sails through, Zephyr will acquire 75% of the 40 hectares of the mine from Hiltouch Investments (Pvt) Limited.

Loren Komperdo, president and CEO Zephyr vowed to tap into the underground potential of the mine and the low risk profile of the mine.

“We are very excited about the potential of the Chikonga Mine property. This proven gold producer with over eight years of small scale mining has never been drilled except for one 41,4 meters core hole drilled in 1975.

“The current shallow mine workings have barely scratched the surface of this property. Zephyr sees Chikanga as a low-risk exploration prospect. We know the gold is there. The questions are: how rich is it; will the gold distribution support potential open pitting; and how big is it?”

The development comes at a time when Zimbabwe has been implementing economic reforms as work around stabilising the local currency continues to progress prompting some international investors to settle for the Southern Africa nation as an investment option.

The Chikanga Mine is a small scale mine with 12 to 14 small, shallow shafts on multiple echelon, east-west trending, steeply dipping shear zones comprised of siliceous mica schist and silicified andesite typically hosting bands of fine grained grey and black quartz with disseminated pyrrhotite, pyrite, arsenopyrite, chalcopyrite and gold.

Current information indicates the Chikanga Mine, with the exception of a single 41,4-meter hole, has not been previously core drilled which presents an excellent discovery opportunity beneath current mine workings.

“The property will be assessed for both its open pit and scaled up underground potential of the multiple shear zones. In addition, historical reports suggest potential for gold mineralisation in the shear zone wall rocks.

“An underground winze developed in 1974 intersected “… a strong wide band of pale grey rock … it contained no quartz or visible sulphides and assayed only 1,0 g/t.”* At the time, only one reef was being mined at the No.1 Shaft versus the multiple reefs at present,” added Zephyr.

NewZimbabwe