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Unki production increases by over 40 percent

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Unki production increases by over 40 percent

Zimbabwe’s second biggest platinum group metal (PGM) producer Unki Mine has recorded a production increase of 41 per cent during the quarter ended 30 September 2022 compared to the same quarter of last year, figures from Unki’s parent company Anglo American Platinum indicate.

The Anglo-American Platinum-owned PGM producer recorded 59 900 tonnes during the quarter compared to 42 600 tonnes produced during the comparable quarter of 2021. However, there was a 10 per cent decrease compared to the previous quarter ended 30 June 2022 where the mine recorded 66 300 tonnes of production.

Compared to the first quarter of 2022, the PGM producer recorded an increase from 53 300 tonnes while during the fourth quarter of 2021, the mine produced 63 200 tonnes.

During the first three quarters of 2022, the PGM producer recorded a 27 per cent increase to 179 500 tonnes from 141 400 tonnes produced during the first three quarters of the previous year.

Completion of the company’s R700 million de-bottlenecking project towards year-end resulted in an improved capacity.

The project focused on upgrading the flotation circuit, the primary mill and other ancillary equipment.

Unki last year invested US$48 million towards increasing its concentrator capacity, which is expected to boost output by 30 per cent.

General Manager, Walter Nemasasi, at the time said the new concentrator was set for commissioning sometime in September last year.

The new plant was the second major value addition and beneficiation project by the mine after the commissioning of a US$60 million smelting plant at the mine by President Mnangagwa in 2019.

The project was expected to increase the production of platinum group concentrate at the plant by 30 per cent and ultimately increase exports by the same margin.

The company said the project was so huge that it will increase production from 180 000 tonnes a month to 210 000 tonnes a month.

Zimbabwe is envisioning a US$12 billion mining industry by 2023. Of the US$12 billion, platinum will contribute US$3 billion.

Zimplats invests $373m in projects

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Zimplats invests $373m in projects

Zimplats has spent about US$372,8 million in various projects in the country, with the Mupani and Bimha mines development chewing the largest chunk.

According to the company’s quarterly activities report for the period to September 30, 2022, the projects were at different stages of implementation.

The mining giant said the development of Mupani Mine and the upgrading of Bimha Mine had progressed well during the quarter.

A total of US$252,2 million has been spent on the projects to date, the firm said, adding that US$82,4 million had been committed against a project budget of US$468 million.

“The third concentrator plant, which will increase milling capacity by 0,9 million tonnes per year, was commissioned during the quarter. Cumulative project expenditure as at the end of the quarter amounted to US$91,3 million, with US$9,3 million committed against a project budget of US$104,1 million. The plant is expected to ramp up production to design capacity by the end of the second quarter,” the report read in part.

Zimplats said the implementation of the US$521 million smelter expansion and sulphur dioxide (SO2) abatement plant project was on course, with US$28,8 million spent and US$215 million committed as at end of the quarter.

“Implementation of the 35MW solar plant which is Phase 1 of Zimplats’ 185MW solar project progressed during the quarter with US$0,5 million spent against a budget of US$37 million,” it said.

A solar plant is being constructed at Selous Metallurgical Complex and is targeted for completion in 2024. Overall, the project has four implementation phases with the last phase scheduled for completion in financial year 2027 at a total project cost estimate of US$201 million.

Apart from these projects, Zimplats said US$0,4 million was spent on exploration projects, with a further US$1,1 million committed as at September 30, 2022.

Exploration activities included mineral resource evaluation comprising approximately 6 103 metres of surface diamond drilling on mining lease ML36, it said.

In the period under review, mined tonnage increased by 2% quarter-on-quarter and 4% year-on-year following good operational performances across the mines.

Rukodzi Mine, the highest-grade operation in the portfolio, was mined out at the end of the previous quarter. This impacted 6E (ruthenium, rhodium, palladium, osmium, iridium and platinum) head grade, which decreased slightly by 1% to 3,41g per tonne.

“Ore milled decreased by 2% to 1,73 million tonnes from the 1,77 million tonnes milled in the previous quarter mainly due to power outages at the processing plants and a planned mill reline shutdown during the period,” it said.

Zimplats said 6E metal in the final product decreased by 8% from the prior quarter and 3% year-on-year, mainly due to decreased mill volumes, lower head grade and recovery, and the accumulation of inventory following the furnace reline shutdown during the quarter.

Total operating cash costs increased by 5% from the prior quarter, driven mainly by a 2% increase in tonnes mined and inflationary pressures. The company said a total of US$4,3 million was transferred from operating costs as volumes mined during the quarter exceeded the tonnes milled.

“In addition, the quarter closed with stocks of concentrates that will be smelted in the second quarter. This resulted in the cost of metal produced increasing by 2% compared to the previous quarter,” it said.

Zimplats said the 8% decrease in 6E ounces produced and the 2% increase in costs of production resulted in 6E unit costs increasing by 10% to US$801 per ounce. Year-on-year unit costs increased by 18%, mainly due to the inflationary increase in operating cash costs and a 3% decrease in 6E ounces produced.

Newsday

Tharisa to raise US$50 million for Karo Platinum project

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Tharisa to raise US$50 million for Karo Platinum project

Tharisa has announced the opening of a fixed-income note offer by Karo Mining Holdings, a subsidiary of Tharisa, to raise US$50 million to be listed on the Victoria Falls Stock Exchange (VFEX).

The proceeds from the Bond will be applied to part-fund the Karo Platinum Project.

The capital raise forms part of a broader capital strategy by Tharisa to develop the Karo Platinum Project in Zimbabwe on time and on budget. Tharisa is a 70% shareholder in the Issuer, a company incorporated in the Republic of Cyprus, which in turn indirectly owns 85% of the Karo Platinum Project, with the Government of Zimbabwe holding the remaining 15% of the Project, on a free carry basis.

The Project is scheduled to commence production with first ore milled in July 2024. Ground-breaking is expected to take place in December 2022. A local earthworks contractor has been appointed and is expected to start onsite activities in December 2022, marking the beginning of the Karo construction phase.

The proceeds from the Bond issue, net of costs, will be used to part fund the development of the Karo Platinum Project, which has a total capital cost for phase one of US$391 million and is set to be the second world-class asset in Tharisa’s portfolio.

The Bond is US dollar denominated and will be issued in minimum denominations of US$2 500 by way of a private placement. The Bond is not rated and will be guaranteed by Tharisa. The minimum amount to be raised from the Bond is US$25 million. Should applications for less than this amount be received the Bond issue will not proceed. The Issuer reserves the right to increase the total aggregate issue amount, subject to approval by its Board and the guarantor, by delivering notice thereof to Note Holders.

The VFEX has approved the listing of the Bond on the VFEX, a subsidiary of the Zimbabwe Stock Exchange and established in a Special Economic Zone. Participation in the Bond will be by way of private placement and is not restricted to Zimbabwean financial institutions or residents.

Arxo Finance plc, a wholly owned subsidiary of Tharisa, which was established to provide funding to Tharisa group companies, has committed to subscribe for US$10 million of the Notes.

Phoevos Pouroulis, CEO of Tharisa, commented:

“This is a historic moment for Tharisa and our tier-one Karo Platinum Project on the Great Dyke in Zimbabwe. From our discussions to date with potential investors, both in Zimbabwe and abroad, we have received extremely positive feedback for this robust investment opportunity, boasting highly attractive returns. We expect strong participation from Zimbabwean investors.

“This interest stems from Tharisa’s strong track record in developing projects on time and on budget, as well as the outstanding fundamentals of the Karo Platinum Project. Zimbabwe has indicated it is open for business and through our interactions with all levels of Government, it is clear there is strong commitment to support Tharisa as we develop the Karo Platinum Project into a fully producing PGM mine.

“We look forward to welcoming investors on this exciting journey into a new operating jurisdiction. Our investment commitment by guaranteeing the Bond and investing US$10 million in the Notes demonstrates Tharisa’s support for not only the project but the economics of the Bond, benefitting from the protections afforded to investors by the Special Economic Zone.”

Bernard Pryor, MD of Karo Mining Holdings, commented:

“Developing a tier-one project in this unique geological setting comes once in a lifetime. Funding for any mining project remains key and I am delighted that we have not only received support from Tharisa in the form of early equity, but that Tharisa has committed to anchor this proposed bond raise. I look forward to engaging with stakeholders in Zimbabwe and beyond to ensure this Bond raise is completed successfully.”

Source: MRA

Zimbabwe nominated for improved mining jurisdiction award

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Zimbabwe nominated for improved mining jurisdiction award

Zimbabwe has been nominated for the improved mining jurisdiction by the Mines and Money London Outstanding Achievement Awards which will take place from the 29th of November to the first of December 2022.

The awards have seen Zimbabwe nominated together with the United Kingdom, the Kingdom of Saudi Arabia, Ecuador and Quebec for the year 2022.

The nomination will see the country or region/province/state’s most improved mining jurisdiction of the last 12 months awarded by an Awards Panel.

Winners of the mining investment world’s most prestigious annual awards recognising the industry’s standout performers, inspiring leaders and rising stars will be announced at the Mines and Money Awards for Outstanding Achievement in December 2022.

The coming in of Winston Chitando as the Minister of Mines and Mining Development has seen the Mining sector grow significantly with the sector on the verge of achieving a record US$8 billion in annual revenue by year-end.

Zimbabwe has been praised by the likes of Implats, Caledonia, Premier African Minerals, and Alrosa, among others as a very suitable mining destination.

Africa’s exploration spend slumping

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Africa’s exploration spend slumping

Tullow Oil and The Metals Company non-executive director Sheila Khama, during her keynote address at the 2022 Council for Geoscience Summit on Wednesday, commented on her unease with the phrase ‘Africa is very rich in minerals’.

She described it as a “dangerous statement” that perpetuated the idea that Africa did not have to compete with the rest of the world for mineral exploration investment.

“While Africa is rich in certain minerals, Africa is not rich in all minerals.” Moreover, other countries on other continents also have these minerals and have fewer drawbacks, in terms of political stability, legislative certainty, and ease of doing business.

However, she stressed that the more people repeated the phrase, “the more we give the sense that the investors coming onto our shores need us more than we need them.”

And yet, over the last 20 years, the African share of exploration expenditure has declined significantly from what it was. Further, Khama noted that the vast majority of this spend had instead been reallocated to countries and regions where the environment, from an investment policy perspective, was considered more conducive.

“If you look at the perception of Africa’s mineral endowment, and the level of the exploration budgets, African countries underperform, not relative to other countries, but to its potential.”

She noted that Africa should, at the least, be attracting the same level of exploration spend as it had in previous years. “We should be seeing a spike now that there is a greater demand for minerals for transition to clean energy. But, believe it or not, when looking at Africa’s capacity to attract investment, the trend is downward.”

Khama also cited a PWC report on exploration expenditure, commenting that even a country as well-endowed as the Democratic Republic of the Congo, had in the last two years seen a drop in expenditure, owing to a perception of risk caused by political instability.

She implored the African geoscientific community to advocate for policies that complement mineral endowment – ones that were not indifferent to market trends, but that helped create an environment that attracted finance and appetite to fund exploration, scientific research, and project development.

Mining Weekly

SA man swindles Zim gold miners of US$154 000

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SA man swindles Zim gold miners of US$154 000

A South African man with three names, Peter Coetzee, Van Tinder Vikus, and Johannes Jacobus Cornelius Naude yesterday appeared at the Harare Magistrates Court facing charges of duping local gold dealers of US$154 000.

Naude (54) of Pretoria, who was represented by lawyer Lucky Mauwa, was arraigned before magistrate Taurai Manuwere.

It is alleged that in the first count Naude approached one of the complainants, Gift Kudakwashe Mineji who is a miner at Pisto Mine, Kwekwe claiming that he was an investor and swindled them of money.

He later approached another complainant, Simba Dumbura, a gold miner at S and J Mining Syndicate, Penhalonga, Mutare, and duped him of some money using the same modus operandi.

The complainants lost US$154 000 to Naude and his accomplices only identified as Tanaka and Ruth, who are still at large.

On October 19, detectives heard that Naude was in Harare and they lured him to Glen Lorne, Harare under the pretext that they wanted to carry out a gold-buying transaction.

He was then arrested, but his accomplices, Tanaka and Ruth fled. – (Newsday)

Invictus in potential hydrocarbon findings

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Invictus in potential hydrocarbon findings

Invictus Energy Limited (IEL) says it has found some potential hydrocarbons — the principal constituents of petroleum and natural gas — several hundred metres into drilling its Mukuyu-1 well.

Invictus has made significant progress at the Cabora Bassa project, located in northern Zimbabwe near the Mozambican border since it started drilling several weeks back.

It has two drilling sites, the Mukuyu-1 and Baobob-1 well but drilling is ongoing at the former.

In an update released yesterday, Invictus reported that it had reached the second phase of drilling several hundred metres and identified hydrocarbons at a width of 12 ¼”.

“Since the last update, the 12 ¼” hole section has been completed and section Total Depth (“TD”) was called at 2021 metres measured depth (“MD”) in order to set the 9 ” casing near the base of a substantial regional seal above the primary targets,” it said.

“Following the completion of the first suite of wireline logging, a zone of interest in the secondary objective in the 200 Horizon target coincident with observed seismic amplitude anomalies was interpreted to contain potential hydrocarbons based on significantly elevated resistivity (two orders of magnitude above baseline) across a 10-15m interval from approximately 785m MD and separation between shallow, medium and deep resistivity readings.”

Invictus said further study of this zone revealed tight reservoir characteristics and complex mineralogy; and that it was, therefore, decided not to run the formation pressure/sampling wireline tool in the absence of the suitable sampling probe and packers.

“The decision was made with careful consideration of several factors, including the ability to obtain valid pressure measurements and fluid samples in tight reservoir and significantly overbalanced hole conditions with the increased risk of tool sticking and potential loss due to the heavy mud weight used in this hole section,” Invictus said.

Newsday

Mining contracts should be signed after consultation

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Mining contracts should be signed after consultation

To create a sustainable Environment Social and Governance (ESG) WorkPlan in Zimbabwe, it is vital for the government to sign mining contracts after a full report on consultation has been delivered, Mutoko Ward 5 Councilor Kwanisai Dende has said.

Rudairo Mapuranga

Speaking at the WorkPlan 4 Workshop on Assessing the Environment Social and Governance (ESG) in the mining sector in Zimbabwe hosted by the Association of Women in Mining in Africa (AWIMA) at Monomotapa Hotel in Harare today, Councilor Dende said communities need good roads, health facilities among others, therefore it was of importance for companies to meet communities first for consultation before Government issues mining certificates.

“The current Mines and Minerals Act does not look into the future of the country. Without sustainable plans for the future, the communities will suffer from the consequences of mining. Mining contracts should be signed by the government after consultations have already been done. Our communities need good roads, dusty roads are not ideal because they would want to be maintained every day.

“Health care facilities should be built.

“Proper exploration should be done, mining companies are moving out tonnes of ore but claiming to be still exploring for minerals,” Councilor Dende said.

Speaking at the same event National Environment Awareness Trust (NEAT) Founder and CEO Mr Timothy Chizuzu said a lot should be done in ensuring that ESG principles are well kept by miners.

He said the country was lagging on ESG principles especially when it comes to Artisanal and Small Scale Mining (ASM) because the country was not doing enough to educate the miners.

“Little is done to educate miners on best environment plans and rehabilitation of the environment. The Act should be clear on what the miner should do,” Chizuzu said.

Women vital in spearheading responsible sourcing

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Women vital in spearheading responsible sourcing

As the world is moving rapidly to consider responsible sourcing as it seeks transparency and accountability in the extraction industry, it is more meaningful when women are involved as they have for generations been left at the margins of decision-making and development, Chairperson for the Parliamentary Portfolio Committee on Mines and Mining Development Hon Edmond Mkaratigwa said.

Rudairo Mapuranga

Speaking at the Workshop on Assessing the Environment Social and Governance (ESG) in the mining sector in Zimbabwe hosted by the Zimbabwe Association of Women in Mining Associations (ZAWIMA) held at Monomotapa Hotel in Harare today, Hon Mkaratigwa said as gender vulnerability is rising, challenges for women are also increasing, therefore, it was of importance to include women in responsible sourcing guidelines and participation.

“Responsible sourcing is becoming a big issue for consideration in modern-day business. The world is becoming more responsible, transparent and accountable. It is even more meaningful when women are involved as they have traditionally been left at the margins of decision-making and development. The reason responsible sourcing is vital and particularly taking cognisant of the Environment, Social and Governance, this has also been a source of grievance in many developing countries. Such grievances cause natural resource conflicts, arouse latent tribal hatred, and cause the formation of terrorist groups.

“Advocacy that is going on globally is that sustainable development should be achieved. Gender vulnerabilities are rising instead of declining and energy poverty is a challenge impacting women and the girl child largely. Africa is further endowed with resources being required globally, but it has remained poor. Natural resource governance, therefore, remains fundamental as that is the main determinant of whether communities will benefit from resources extracted and sold globally. Diversification reduces the risk associated with most staples since there will be a fallback for nations. Those are some of the key issues that make your project more relevant in the country and the continent,” Hon Mkaratigwa said.

Speaking at the same event, Association of Women in Mining in Africa (AWIMA) Technical Lead Monica Gichuhi said women should take lead in making sure that regulations for ESG are speeded to allow responsible sourcing.

“Regulations to protect African minerals should be done now to protect communities,” she said.

ZAWIMA Chairperson Ms Kundai Chikonzo said women in mining in Zimbabwe were going to work flat out to ensure minerals in Zimbabwe are clean to be consumed by any market.

“We created ZAWIMA to ensure that women in mining in Zimbabwe are well represented and that responsible sourcing can be achieved through women’s participation,” she said.

Kundai Chikonzo elected ZAWIMA’s first chairperson

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Kundai Chikonzo elected ZAWIMA’s first chairperson

Matebeleland South miner Ms Kundai Chikonzo has been elected the first chairperson of the Zimbabwe Association of Women in Mining Associations (ZAWIMA) at the launch of the organization yesterday in Harare.

Anerudo Mapuranga

The launch of the Zimbabwe chapter of Women in Mining Associations also saw Gertrude Chimanikire from Mashonaland East being elected vice chairperson with Midlands-based vibrant miner Sophia Takuva elected as the Secretary of the Association. The purse of the Association will be under the leadership of Pamela Mutembwe from Mashonaland Central who was elected as the treasurer.

Three miners were elected committee members these are, Chiedza Chipangura from Mashonaland West, Melody Juma from Masvingo and Chipo Mazula from Mashonaland Central.

The launch of the Association was graced by many in the mining industry including the Zimbabwe Miners Federation (ZMF) represented by its CEO Mr. Wellington Takavarasha, Zimbabwe Environmental Law Association (ZELA) represented by Lynn Nyereyemhuka, the Ministry of Women Affairs, the Ministry of Mines and Mining Development, Fidelity Gold Refinery (FGR), Minerals Marketing Corporation of Zimbabwe (MMCZ) among other organizations.

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