Home Blog Page 385

CSOs red-flag Chinese projects

0

CIVIL society groups have expressed concern over Chinese business operations, saying they were causing unnecessary displacements and damaging the country’s ecologically sensitive sites.

In a statement yesterday, the groups under the Centre for Natural Resources Governance banner, said: “We seek to register our deep concern with the behaviour of Chinese business operations in Zimbabwe. Zimbabwe is a country endowed with vast natural resources in the minerals, flora and fauna categories. These resources have the potential to reduce poverty and improve human security.

“Sadly, the abundance of natural resources has become the major cause of poverty, inequality, human rights abuses environmental crimes and transnational organised crimes that are prejudicing the country of billions of dollars annually.”

“Some of these mining operations have left deep scars in the affected communities. For instance, in Marange, Anjin operated between 2011 and 2016 and was accused by the then Finance minister of not (remitting revenue) to Treasury despite the company boasting of being the largest diamond mine in the world by volume of production.”

The statement added: “We expect the Zimbabwe government and media to engage China from the vantage point of advancing Zimbabwe’s national interest and promoting and protecting the dignity of the Zimbabwean people against corporate injustice and human rights abuses.

“It is essential to listen to the real people in the affected communities. The Chinese ambassador should find time to tour the Chinese operations and observe working conditions. The Chinese investors in Zimbabwe should be accountable to local communities and open to public scrutiny starting with their contracts, their taxes and beneficial ownership.”

Recently, Mutare residents red-flagged a Chinese company which had started quarry mining operations in the sacred Dangamvura Mountain without an environmental impact assessment certificate.

Last week, the Chinese embassy in Harare accused Western countries of sponsoring a media smear campaign to discredit Chinese investments in Zimbabwe.

 

 

 

NewsDay

Chinese Miner Engages Residents Over Dangamvura Mountain Quarry

0

MUTARE: A CHINESE mining company, Freestone Mines will consult local residents on its planned quarry mine operations earmarked at the deforested Dangamvura Mountain, NewZimbabwe.com can report.

Last year, the Mutare City Council leased its 6,5-hectare stand situated surrounding Dangamvura Mountain to Freestone Mines.

The Chinese miner will pay a US$7 557 annual fee to the local council to conduct its quarry stone mining operations.

However, a vicious war erupted last November after the local council ignored to consult the residents over the siting of the quarry mine, which is close to a residential area, and water sources.

Angry residents demanded the Chinese miner should be relocated to a new site far from residential areas and water distribution pipes.

Freestone Mines was forced to withdraw the equipment from the site as irate residents piled pressure against it.

Freestone Mines director Ruoxin Qi declined to comment before directing all questions to the local council.

“Sorry, right now I cannot supply anything, hence if you need to know what happened to this issue, please contact the city council,” Qi said.

He added: “If there is a consultation, it should be held by the city council, not us. You can ask them for the information because I do not have the right to consult the public.”

However, Mutare mayor, Blessing Tandi confirmed to NewZimbabwe.com the miner would soon engage in stakeholder consultations regarding Dangamvura Mountain Quarry.

“The consultative meetings are expected very soon and we assume if the town clerk liaises with them (Freestone Mines) anytime from now, they will announce a schedule,” Tandi said.

“We want this done very soon so that as the city council, we will know if the residents and other stakeholders are in support of the quarry site or not.

“Council will only facilitate the meetings since the miner has the sole responsibility to preside over the consultations. They have since written a letter requesting to use our structures during consultations like our ward councillors mobilising residents,” he said.

“Consultations are important as they enable us to decide whether to carry on or deny the project based on an informed position. I am not concerned about the residents in Natal or Dangamvura suburbs, but a water pipeline that is 200 metres away from the blasting site. If the pipeline is not disturbed residents in Dangamvura cannot be severely affected by the quarry,” Tandi said.

However, the Mutare Residents and Ratepayers Association (MURRA) programmes coordinator, David Mutambirwa accused the border city authorities of putting the cart before the ox.

“That is precisely what the council should have done (consulting) before making a decision which is very unpalatable and a mockery to residents of Mutare,” he said.

“We hope and believe those consultations will not be a rubber stamp or a decoy to validate their intentions of giving Dangamvura Mountain to the Chinese. The views of residents must be implemented.

ZPC relocates 90 homesteads in Mat North

0

THE Zimbabwe Power Company (ZPC) has relocated villagers from 90 homesteads in Matabeleland North province to pave way for a 360km powerline which stretches from Hwange to Insukumini near Bulawayo.

ZPC’s expansion project entails construction of a new power plant with a 600-megawatt capacity.

“The transmission lines require a servitude of 60 metres which must be cleared to pave way for the powerlines which in our case is about 360km. About 90 homesteads have been affected; these are project-affected persons,” Chanakira said. “The thrust of the project is to make people better than what they were before the commencement of the project.

“The project has been received with warm hands, people are happy because we are constructing new dwellings for them.”

Pedisai Moyo, the assistant project manager, said major work was in Mazvi, where 29 houses were being constructed for the relocated villagers. The project cuts through Hwange rural district, Tsholotsho, Lupane and Umguza up to Insukamini near Bulawayo.

 

 

NewsDay

Chinese after Zulu lithium and Tantalum mine in Bulawayo

0

Premier African Minerals’ Zulu lithium and Tantalum project has received several offers from investors who want to partner or buy off the project, with many coming from the People’s Republic of China, CEO George Roach has said.

Rudairo Mapuranga

The Lithium project has been projected as one of the critical assets towards the achievement of US$0.5 billion lithium industry by 2023 as the mining sector looks forward to becoming a US$12 Billion industry by 2023 is currently well into the Defensive Feasibility Study process with results foreseen to be on the bright side.

According to Roach, Zulu lithium is a very attractive project for investors with the potential of producing high-grade spodumene in very large quantities the reason why investors are looking forward to a stake in the project.

Roach, however, said that the Zulu lithium and tantalum mine was not for sale and the company has never invited anyone to buy off the project as lithium is well aware of the potential future of the mine.

“We have had a multitude of advances from different people wanting to get involved, many of these coming from the Chinese side.

“We are a very attractive project for somebody to get involved in if they want high-grade spodumene in quite large quantities as we go down the line.

“We are not in the market to try to sell this project, that’s not what we are about and we haven’t gone out with some kind of offer sheet and say boys come and invest,” Roach said.

Premier African Minerals

Premier African Minerals is currently developing a portfolio of strategic metals and agri mineral projects located across Africa.

Premier is an emerging tungsten producer from the RHA Tungsten Mine and is advancing the sizeable Zulu Lithium and Tantalum Project in Zimbabwe. In addition, the Company has an interest in MN Holdings Limited, the owner and operator of the Otjozondu Manganese Mining Project in Namibia

The Company holds 5,010,333 shares in Circum Minerals Limited, the owners of the Danakil Potash Project in Ethiopia, which has the potential to be a world-class asset.

Premier has a long history of project discovery, acquisition and development across Africa and the Company is managed by a dedicated team of professionals which have a strong track record is project development and value creation.

Premier African Minerals is currently developing a portfolio of strategic metals and agri-mineral projects located across Africa.

Premier is an emerging tungsten producer from the RHA Tungsten Mine and is advancing the sizeable Zulu Lithium and Tantalum Project in Zimbabwe. In addition, the Company has an interest in MN Holdings Limited, the owner and operator of the Otjozondu Manganese Mining Project in Namibia

The Company holds 5,010,333 shares in Circum Minerals Limited, the owners of the Danakil Potash Project in Ethiopia, which has the potential to be a world-class asset.

Premier has a long history of project discovery, acquisition and development across Africa and the Company is managed by a dedicated team of professionals who have a strong track record in project development and value creation.

CIVIL SOCIETY STATEMENT ON CHINESE INVESTMENTS IN ZIMBABWE: COMMUNITIES’ SENTIMENTS SHOULD BE RESPECTED

0

We, the Zimbabwe Civil Society groups, united in our common objective of defending our communities and national heritage against investment projects that disempower and impoverish our people, seek to register our deep concern with the behaviour of Chinese business operations in Zimbabwe. Our joint statement is not meant to defame China or trigger xenophobic resentment towards Chinese nationals in Zimbabwe. On the contrary, we seek fair and mutually beneficial relations between the two countries. We have however noted with deep concern the threats of displacements and mining projects in ecologically sensitive places around the country without any due regard for the concerns of the local people.

Zimbabwe is a country endowed with vast natural resources in the minerals, flora and fauna categories. These resources have the potential to reduce poverty, improve human security and help achieve President Mnangagwa’s target of an upper-middle-income economy by 2030 if managed properly.

Sadly, the abundance of natural resources has become the major cause for poverty, inequality, human rights abuses, environmental crimes and transnational organized crime that are prejudicing the country of billions of dollars annually and this has been going on for decades.

Regarding the growing resentment towards Chinese investments in Zimbabwe, it is important to highlight that for the past 15 or so years, China has been the dominant player in Zimbabwe’s minerals sector, which saw Chinese small scale and large-scale miners getting deep into rural communities to start mining operations.

Some of these mining operations have left deep scars in the affected communities. For instance, in Marange, Anjin operated between 2011 and 2016 and was accused by the then Finance Minister of not paying anything to treasury despite the company boasting of being the largest diamond mine in the world by volume of production. The company made several promises to the families it displaced to Arda Transau and all the promises were broken. Many former workers were arbitrarily dismissed and are still owed to this day.

The Marange community recently (Nov. 2021) held a protest against Anjin resulting in 29 of them, including the Headman being arrested. In Mutare, there was a recent outcry after a Chinese company, Freestone Mines, started ground preparation for quarrying at Dangamvura mountain without an environmental impact assessment. The Ministry of Mines, Mutare City Council and Freestone itself all confirmed that an environmental impact assessment was a prerequisite requirement but had not been carried out. The local traditional leadership was not consulted either. Dangamvura Mountain is an ecologically sensitive site that is situated in Mutare’s green zone and very close to educational institutions and residential areas.

There are many cases across the country where the Chinese investors have been in a standoff with local communities. The cases include the desecration of shrines and graves in Mudzi black granite mines and Dinde coal explorations in Hwange.

Local communities have come to realise (without any external influence) the losses they are incurring at the hands of the Chinese companies operating in their localities. It is important to note that Zimbabweans are so learned to be able to distinguish exploitative, destructive development from progressive development without having to be influenced by anyone.

The primary objective of attracting investors to Zimbabwe is to ensure the Zimbabwean people benefit from their natural resource endowment. True investors leave communities in a better state than they found them in. They build infrastructure which the community will continue to use even long after the investors have left.

We appreciate the positive developments done by other mining companies in Zimbabwe whose investments have been behind the establishment of towns like Bindura, Hwange, Shurugwi and Zvishavane. There are companies like Zimplats which have massively invested in educational, health and road infrastructure for the host communities. They have built standard residential areas which offer comfortable housing for their staff and families. We are yet to see such investments coming from investors from China, leaving us to question who exactly is benefiting from the Chinese investments.

We expect the Zimbabwe government and the media to engage China from the vantage point of advancing Zimbabwe’s national interest and promoting and protecting the dignity of the Zimbabwean people against corporate injustice and human rights abuses.

We call on the Government of Zimbabwe to openly engage affected communities through public hearings to understand the sentiments of the citizens regarding human rights, environmental and social impacts of Chinese investments in those communities. It is essential to listen to the real people in the affected communities.

The Chinese Ambassador should find time to tour the Chinese operations to observe the working conditions of the employees. The Chinese investors in Zimbabwe should be accountable to local communities and open to public scrutiny, starting with their contracts, their taxes and beneficial ownership

Law enforcement, EMA, rural district councils and Chiefs should conduct their mandate of protecting natural resources and local people without intimidation or fear of victimisation by those siding with the investors.

We are proud Zimbabweans, masters of our own destiny. We neither pander to the West nor to the East. We place it on China that how would they react if an African start blasting the Great wall, without a license, and uses Sino-Afro ties as defence?

If China respects and loves Africa as it purports, then the primary sign is to place ordinary citizens at the centre of development.

Zimplats granted licence to set up solar plants

0

Zimplats, the Zimbabwean unit of Impala Platinum, has been granted licences to generate its own power as the firm seeks ways of cushioning operations from intermittent power supplies.

Zimbabwe does not generate enough power to meet local demand and has perennially relied on imports from neighbouring South Africa, Mozambique and Zambia.

The southern African country has a total installed capacity of 2 382MW, but its power stations have recently been generating a combined 1 055 MW against a maximum demand forecast of 1 650MW resulting in load shedding that is crippling industry and plunging households into darkness.

The balance has to come from imports, but due to limited foreign currency and deficits in the region Zimbabwe has to resort to load shedding to manage shortages, negatively impacting households and key sectors as agriculture, industry and mining.

Over the years, alternative power would come from generators, but with Zimbabwe fuel price among the highest in the region, the cost of running mines on generators is not sustainable.

Zimplats and other miners have now turned to solar power generation. The Implats-owned miner was last Friday granted two licences to generate a total 185MW of electricity.

The Zimbabwe Energy Regulatory Authority (ZERA) announced on Friday that it had granted Zimplats a licence to construct, own, operate and maintain a 105MW solar photovoltaic power plant at Ngezi Mine in Mhondoro in Zimbabwe’s Mashonaland West Province.

“The purpose of generation and supply of electricity is for own consumption at Ngezi Mine, but connected to the grid,” reads part of ZERA’s public notice.

A similar notice was also published but this time for the generation of an 80MW solar photovoltaic power plant at Zimplats’ Selous Mine in Chegutu, Mashonaland West Province.

Zimplats says setting up the two power plants will cost the company as much as US$201 million.

Giving an update in December 2021, Zimplats chief executive Alex Mhembere said the miner was investing in a 185MW solar plant “to augment power supplies and enhance ESG performance metrics”.

The PV solar plant is expected to be commissioned in the 2023 financial year, according to Mr Mhembere.

Zimplats is not the only miner that has turned to solar power as New York Stock Exchange gold miner Caledonia Mining, which runs Blanket Mine in Zimbabwe is constructing a 12MW solar plant which is expected to be operational this year and will exclusively supply Blanket Mine with approximately 27 percent of its daily electricity usage.

The gold mine has faced interruptions to its electricity supply from the grid, which the operator has circumvented using diesel generators.

Due to the rising costs of diesel fuel and problems in obtaining a secured supply, a solar power plant was proposed to reduce the reliance on diesel power as well as mitigate the impact of Zimbabwe’s grid instability. — fin24.

Blanket Mine in record production of over 2 tonnes

0

Victoria Falls Stock Exchange (VFEX) listed gold-focused miner Caledonia Mining Corporation’s Blanket mine has produced a record 2.1 US tons of gold in 2021 marking a 17 per cent increase from the previous year.

Rudairo Mapuranga

Blanket mine recorded total gold production of 67,476 ounces during 2021, exceeding the Company’s revised increased guidance and a 17 per cent increase on 2020 annual production.

According to Caledonia’s CEO Steve Curtis, the year 2021 has been outstanding for Blanket mine leading the company to revise its production guideline for 2022. The miner forecasts its gold production for 2022 to be between 73,000 to 80,000 ounces.

“This has been an outstanding performance and a tremendous team effort. I would like to thank all our employees for their hard work in achieving this result and that we were able to exceed our revised annual production guidance,” Curtis said.

The mine achieved a quarterly production of 18,604 ounces of gold, a 24 per cent increase on the 15,012 ounces in Q4 2020 leading Caledonia Chief to conclude that the commissioning of the central shaft was significant in the production increase.

“The commissioning of the Central Shaft, record gold production, along with a continued commitment to safety, all in one year, is an outstanding achievement and testament to the quality of the Caledonia technical team.”

“Now that the Central Shaft is complete, the Company will also focus on other areas of its growth strategy, as we continue to evaluate investment opportunities, with a vision of becoming a multi-asset gold producer,” Steve Curtis said.

Arcadia offtaker to cash-in US$8 million after mine sale

0

The sale of the Arcadia Lithium Mine to Chinese new energy lithium-ion battery material producer, Zhejiang Huayou Cobalt will see offtaker Sinomine Resource (Hong Kong) International Trading Co. Limited getting US$8 million after Offtake Agreement termination.

Rudairo Mapuranga

Prospect Resources has executed a Deed of Termination and Release (Termination Deed) with Sinomine regarding the offtake and marketing arrangements between Prospect, Prospect Lithium Zimbabwe (Pvt) Limited (PLZ) and Sinomine (Offtake Agreement) that was signed in 2018.

The terms of the Termination Deed take effect upon completion of the binding Share Sale Agreement governing the Transaction. When the Offtake Agreement is terminated and Prospect, PLZ and Sinomine are released from their respective obligations, and Sinomine will receive an amount of US$8 million as required under the Termination Deed.

The terms of the Termination Deed only take effect in the event of completion of the Transaction. If the transaction is not completed, the terms of the Termination Deed do not take effect, and the status quo prevails.

Termination of the Offtake Agreement is a condition precedent to completion of the Transaction. The parties to the Transaction have confirmed that this condition precedent will have been satisfied once the Termination Deed takes effect, and Huayou has confirmed to Prospect that it will not rely on this condition precedent as a reason not to proceed to completion if all other conditions precedent have been satisfied or waived.

Sinomine remains a 4.86% shareholder in Prospect.

Afrochine calls for CSR suggestions

0

Zimbabwe’s biggest ferrochrome producer Afrochine Smelting (Pvt) Ltd has called on stakeholders and communities to suggest and propose charity work which the miner should carry out this year as part of its Corporate Social Responsibility (CSR).

Rudairo Mapuranga

The Chinese owned ferrochrome miner said this year through its charity arm Kubatana Afrochine Trust, it is going to undertake some community and corporate social responsibility activities at the same time supporting local and national charitable causes.

“This year, through our charity arm #KubatanaAfrochineTrust we will embark on a number of community & CSR activities as well as support local and national charitable causes. Any suggestions of what we can do, especially in communities where we operate?” the company enquired.

Last year the country’s largest ferrochrome producer said it was geared to upgrade roads in Chegutu and rebuilding a sports field for a local school to promote grassroots development.

The Chinese owned ferrochrome producer said its Corporate Social Responsibility drive was to see the community they are operating improving.

“Our current CSR involvement includes upgrading roads in the Saruwe area of Chegutu District and clearing up a sports field for a local school aimed at promoting physical education in our children,” Afrochine said.

Caledonia Q4 output up 24%

0

Resources outfit Caledonia Mining Corporation’s production rose 24% to 18 604 ounces in the quarter ended December 31 2021 from 15 012 ounces recorded during the same period in 2020 due to the utilisation of the US$60m Central Shaft project which pushed up output.

In a statement, Caledonia chief executive officer Steve Curtis said  the London Stock Exchange listed miner’s total gold production during 2021 was 67,476 ounces, exceeding the company’s revised increased guidance and a 17% increase on 2020 annual production.

Curtis said the performance has been outstanding and the resources group was able “to exceed our revised annual production guidance”.

“The commissioning of the Central Shaft, record gold production, along with a continued commitment to safety, all in one year, is an outstanding achievement and testament to the quality of the Caledonia technical team,” Curtis said.

“Now that the Central Shaft is complete, the company will also focus on other areas of its growth strategy, as we continue to evaluate investment opportunities, with a vision of becoming a multi asset gold producer.”

The company has achieved more than 2,4m fatality free shifts since 2018.

Caledonia is bullish about the 80 000 ounces target by the  year end despite missing out the target since 2019.

The inception of the Central Shaft project has boosted the  miner’s confidence to reach  the target.

“Gold production for 2022 is expected to be between 73,000 to 80,000 ounces,” Curtis said.

He said there is still some further underground development that is required before the miner can achieve full production of 80 000 oz in 2022.

Curtis said the miner needs to achieve a quarterly target of 20,000 ounces to meet the 80 000 ounces by year-end.

 

 

 

Business Times