Mining ZimbabweLatest Mining News, Policy and Industry Updates

RE: GEMSTONES/SEMI- PRECIOUS STONE MINERS/STONE ART/ TRADERS/JEWELLERS DATA BASE.

Reference to the above as well as our previous notice of 28/01/22, May all those who are in the gemstones and semi-precious stones sector provide the following details for data capture as soon as possible, closing date is 06/05/22 at 17: 00 hrs.

1. Full names

2. Mineral mined

3. Business (e.g. trader/jeweler/miner/stone art etc.)

4. Mine registration status (e.g. certificate no./application pending /covered by EPO/reservation

5. Contact details

6. Any requirement/support (e.g. finance $$$/equipment details/ markets/etc.

7. Area or province

Kindly forward the information to the undersigned through WhatsApp or via email below.

The information is to enable an efficient service to your specific businesses as well as for programs to be rolled out soon.

May you kindly share this with those not accessible on whats-app

Yours faithfully
MR PRIVELAGE C. MOYO
Secretary for semi-precious and gemstones
WhatsApp +263 772 936 110
Email: [email protected]

MINES and Mining Development Minister, Winston Chitando, is set to officially commission a Tailings Storage Facility (TSF) project at Vumbachikwe Mine in Gwanda, Matabeleland South Province tomorrow.

The US$2,5 million initiative is expected to ensure sustainable mining operations for the next two decades, management said.

Already Vumbachikwe Mine has poured in significant investment towards the project, which will see the company taking the lead in environmentally friendly mining practices at a time when many companies the world over are being taken to task for environmental pollution in an increasingly climate conscious world.

“As a major player in our endeavour to put all hands on deck and create a US$12 billion gold mining industry for Zimbabwe by the year 2023 as espoused by President Emmerson Mnangagwa in the national vision, we ought to also keep an eye on our carbon footprint because we have to bequeath not only a wealthy nation but an environmentally safe nation for future generations,” said Vumbachikwe acting mine manager, Mr None Kananji.

“As a result, our stakeholders invested in this project to ensure that as we heed Government’s call for collective patriotic pursuit of a middle-income nation by the year 2030, we also don’t lose sight of the need to ensure the land from which we benefit is preserved.”

TSFs are one or more dams, which ensure that effluent from mining and extraction processes, which may contain slime and chemicals with potential to contaminate underground water and the environment, are stored safely.

In recent times, the Environmental Management Agency (EMA) has been scaling up efforts to make mining companies comply with waste management regulations.

The minister’s imminent visit is, therefore, seen as an endorsement of the proactive move by Vumbachikwe as well as encouragement to similar operations to emulate the step taken by the mine, which is currently implementing a raft of measures to restructure and boost production by plugging production leaks and supporting national vision.

The Chronicle

LAWYERS representing scores of workers and their families who were recently evicted from Bindura-based Ran Mine were last week making frantic efforts to secure their return.

Ran Mine Private Limited, a gold asset that has been at the centre of a protracted dispute between Zimbabwean investors, lurched into fresh controversy after evicting the former workers saying they were retrenched and paid their packages about 20 years ago.

Lawyers estimated that 500 people were affected by the eviction.

Last month, new investors for the operation secured a High Court order to evict the workers.

In an interview with NewsDay Business, the workers’ lawyer Obey Shava of the Zimbabwe Lawyers for Human Rights said there was an appeal that was pending at the High Court before authorities moved in to execute the order.

“Before the granting of eviction order by the High Court, we made an appeal to the High Court and is still pending,” Shava said.

“We are still pursuing it, which is the status of the matter.  At the moment we are clueless if I am to tell the truth,” he said.

“We are trying to appeal to organisations and the public who can possibly assist but we haven’t found any relief so far since the eviction process took place,” he added.

There has been a wrangle over asset ownership since Blackgate Investments, led by businesswoman Angeline Munyeza, also claimed ownership of the rich goldfield.

Fighting over the asset reached  tipping point late last year when G&P Industries said it was pressing ahead to extract its first bullion at the mine in 22 years.

Blackgate warned that sinking shafts at the operation was illegal until government made a determination over ownership of the mine, which hit headlines in 2020, when 30 artisanal miners perished in flooded shafts.

Court documents indicate that on March 31, Munyeza escalated her battle to Chief Justice Luke Malaba, seeking his urgent intervention.

She has previously written to President Emmerson Mnangagwa, the Zimbabwe Anti-Corruption Commission and the Ministry of Mines and Mining Development seeking resolution of the dispute.

The businesswoman has produced evidence that she also holds titles to the mine.

But around the time she approached the Chief Justice, her rivals were moving to evict former workers out of the mine compound.

Rights groups and the ruling Zanu PF party estimates show that up to 500 families have been affected by the evictions, although the court case lists 18 representatives of the former workers.

“Despite demand, it is alleged the 18 defendants refused to vacate the mine houses”, High Court papers said.

“The defendants (former workers) failed to discharge the onus upon them to show an entitlement to continue holding on to the houses”, the court papers added.

“The defendants and all persons claiming occupation through them and all other persons in use, possession and control of any part of the Ran Mine compound without the consent of Ran Mine shall forthwith vacate the compound,” the High Court ruled.

“Failing vacation, the Sheriff, with the assistance of the Zimbabwe Republic Police, if necessary, is authorised to eject the defendants and all persons claiming occupation through them and all other persons in use, possession and control of any part of the Ran Mine compound without consent of the plaintiff” the ruling said.

Newsday

A GROUP of people, who recently invaded Dandee 5 mine in Kezi, Matabeleland South, are reportedly threatening Kezi prosecutor Mufaro Ndirayire, who is handling the case.

The invaders, believed to be from Harare, overran the mine last month and the mine owner Ndodana Moyo has alleged that the invaders were being backed by a senior government official, whom he did not name.

Moyo told NewsDay that the invaders were threatening the prosecutor who is dealing with the case.

“On April 27, we were supposed to attend a court case in Kezi. On our arrival the prosecutor said she was being called by a certain individual who is threatening her, demanding that she must drop the case or get fired by her superiors. The invaders are also creating stories trying to get us arrested,” he claimed.

He also alleged that the invaders were heavily armed.

“We did not do anything or engage in any violence. They are the ones who were armed with machetes and axes.”

Ndirayire declined to comment on the matter saying she was not allowed to talk to the Press.

“You can check with my superiors, I am not allowed to talk to the Press,” she said.

The gang, armed with machetes, chased away Moyo’s mine workers when it invaded the mine.

THE Zimbabwe School of Mines (ZSM) is expected to play a leading role in the beneficiation and value addition of minerals as the country drives towards achieving a US$12 billion mining industry milestone by 2023, Mines and Mining Development Deputy Minister, Polite Kambamura, has said.

The Second Republic is pushing for value addition of the country’s natural resources including precious minerals for the country to benefit more from its resources.

As a mining training centre, Deputy Minister Kambamura, said ZSM should be well equipped to unlock more opportunities in the sector.

Speaking during handover of critical equipment in the Metallurgical Assaying Laboratory by Mimosa Mining Company last Thursday, Deputy Minister Kambamura said Vision 2030 demands that ZSM responds by providing skills, particularly in the emerging minerals being mined in Zimbabwe.

“Therefore, a fully equipped laboratory plays a critical role in training of human capital.

Furthermore, on servicing the industry the laboratory has also been very useful to the mining and related industries, providing services that include water analysis for EMA regulations compliance, gold, silver and base metals analysis, coal analysis and metallurgical tests works,” he said.

Zimbabwe School of Mines

Mimosa donated a range of equipment for the geological department that includes four geological microscopes equipment with a camera and digital connectivity to enable online sharing of thin section images by lecturers and students.

The metallurgy department was equipped with a single pot ring mill and machinery for sample analysis.

With the current expansion in the mining industry, Deputy Minister Kambamura said ZSM is expected to conduct test work in the new mining processing methods on emerging mineral such as base metals.

“We expect ZMS to match international standards by being assessed and successfully accredited by the Southern Africa Development Community Acceptation Services (SADCAS) on an ISO/EC17025:2005, which will demonstrate that it is technically competent and able to produce precise and accurate tests and analyses of minerals,” he said.

“Accreditation of this Metallurgical Laboratory requires this equipment in line with industry standardisation needs.”

However, ZSM cannot achieve its responsibilities alone as its needs partners with other players in the industry, said the Deputy Minister.

“The Government of Zimbabwe pleads with the mining industry sector to partner with technical institution of this nature in retooling laboratories,” he added.

“In line with the 2021-2025 Strategic Plan the Metallurgical Assay Laboratory has been infused as a strategic Business Development Unit, therefore donations of the equipment is perfectly suited in the grand strategy.”

The mining industry is a key pillar of Zimbabwe’s economy as it generates much of the needed foreign currency.

ZSM principal, Mr Edwin Gwaze, said since their laboratory was fully equipped, the training centre is now able to operate at a commercial level where both solid and liquid samples are processed.

He said the donation confirms Mimosa’s commitment to ensure that ZSM provides unrelenting quality services to the mining industry.

Over the years, Mimosa has made several donations, which include a 29-seater bus, assisted in training assets for the library and boulder for the mining museum.

Mimosa head of engineering, Mr Admire Makuvaro, said their support is intended to capacitate ZSM to continue producing quality graduates.

“As Mimosa we have responded to the needs of the Zimbabwe School of Mines through various developmental partnerships over the years and we remain committed to working with the institution as it develops and continue to improve its service to the mining industry,” he said.

“We urge the Zimbabwe School of Mines to make use of the equipment in line with the Governments vision for the institution to become a hub for experimentation and research in mining.”

The Chronicle

Trafigura Group and Zimbabwe’s government have discussed a deal that would give the commodities trader control over output from some of the nation’s biggest mines as repayment for debts.

Under the agreement, Trafigura will be paid US$225.6 million by nickel- and gold-mining subsidiaries of state-run Kuvimba Mining House for fuel bills Zimbabwe owes Trafigura on contracts dating back to 2016, documents show. Zimbabwe’s government was represented by the Finance Ministry in the agreement.

Trafigura is one of the world’s biggest oil and metals traders, with a history of deals in Africa that have drawn scrutiny from authorities, including in South Sudan and South Africa. Zimbabwe, which has racked up more than US$10 billion in external debt that it’s struggling to service, has been heavily dependent on Trafigura for fuel supplies.

Reports have linked Kuvimba to Kudakwashe Tagwirei, a Zimbabwean tycoon who’s been sanctioned by the US and UK over corruption allegations, and who was part-owner of many of the mining assets that are now part of Kuvimba. Zimbabwe hasn’t explained how it obtained the assets, and says that Tagwirei has no role in Kuvimba. Tagwirei is also an adviser to Zimbabwe President Emmerson Mnangagwa.

The Singapore-based trading house confirmed a deal in which it will be repaid by Zimbabwe for credit it extended for imports of fuel products. It said it ended a previous fuel-trading business relationship it had with Tagwirei in 2019, before he was sanctioned.

“Trafigura Zimbabwe has provided credit on petroleum product deliveries into Zimbabwe and is scheduled to receive payments,” the company said. “Trafigura operates a robust compliance program, aligned with international standards. In accordance with this program, Kuvimba has undergone and satisfied our strict KYC requirements,” it said, referring to so-called “know your customer” policies meant to prevent engagement with people involved in money laundering or other financial crimes.

Unpaid bills, incurred by the Reserve Bank of Zimbabwe, would be transferred to the Finance Ministry, which has control over Kuvimba.

The agreement was drawn up by the London branch of law firm Reed Smith LLP and gives Trafigura exclusive access to a large portion of two of Zimbabwe’s biggest exports.

According to the deal, Kuvimba would pay Trafigura US$6 million a month and retain 40% of payments to the Freda Rebecca and Shamva gold mines, as well as the nickel mines owned by Bindura Nickel Corporation, in collection accounts. Freda Rebecca, Shamva and Bindura Nickel are subsidiaries of Kuvimba.

Trafigura would also have the right to approve buyers of the metal selected by Bindura and would have right of first refusal on the metal, the documents show. It would also have the right to buy the gold produced by Freda Rebecca and Shamva. Trafigura didn’t respond to queries about those arrangements.

The payments won’t be subject to tax and the transaction documents won’t need to be lodged with any authority in Zimbabwe, the agreement says. Reed Smith didn’t respond to requests for comment.

Private shareholders

Kuvimba’s assets were previously listed as being owned by Sotic International, in which Tagwirei had a stake. Tagwirei didn’t respond to text messages and emails and didn’t answer his mobile phone when contacted by Bloomberg.

The government hasn’t disclosed how it came to own 65% of Kuvimba or who holds the 35% private stake. Trafigura didn’t answer a question on whether the private shareholders had assented to the agreement.

The agreement includes clauses prohibiting any of the parties involved in the agreement from entering into “any transactions with any person which is a sanctioned person.” Trafigura said such language was “common and prudent business practice” in commercial arrangements. The Kuvimba subsidiaries involved in the deal are also not allowed to change their shareholding.

Bloomberg

• Invictus Energy Limited (ASX:IVZ) unveiled its financial and operational performance report for the quarter ended 31 March 2022.
• The Company is opening one of the last untested large frontier rift basins in onshore Africa, the Cabora Bassa Basin.
• Mukuyu Prospect drilling is anticipated to commence in July 2022.

Shares of Invictus Energy Limited (ASX:IVZ) traded up by a whopping 21%, mid-day last Friday.

IVZ quoted A$0.23, with a trading volume of over 4 million shares and a market capitalisation of A$126.76 million. The significant uptick in share price seemed to have been propelled by the independent upstream oil and gas company’s financial and operational performance report for the quarter ended 31 March 2022.

Its principal asset, Special Grant 4571 (SG 4571), contains the world class Mukuyu prospect which is the largest un-drilled prospect onshore Africa – independently estimated to contain 8.2 Tcf and 247 million barrels of conventional gas condensate (gross mean unrisked basis). Mukuyu Prospect drilling is anticipated to commence in July 2022.

Agreements & contracts

In the March 2022 quarter, the Company’s 80% owned subsidiary Geo Associates executed a Heads of Agreement with the Sovereign Wealth Fund of Zimbabwe to increase the SG 4571 licence area from 100,000 hectares to 709,300 hectares. Currently, customary government gazettal is awaited.

There were other deals made towards the Cabora Bassa Project development-

• To drill the Mukuyu-1 exploration well, Invictus executed a binding drilling rig contract with Exalo Drilling SA. There is also an option for an additional exploration well. The Exalo #202 rig might mobilise from Tanzania to the Project in May. Notably, casing, wellheads, and ancillary long lead items for the two-well drilling campaign have already been secured.
• The Company awarded Baker Hughes the integrated well services contract following completion of a competitive tender and evaluation process.
• ERC Equipoise Pte Ltd was appointed to conduct an independent prospective resource update for the Project.
• Cluff Energy Africa’s (CEA) request to extend its farm-in option expiry was granted- from 31 March to 30 April 2022. Recently, Invictus received three farm-in offers for the Project including an updated bid from CEA. Additional parties are conducting ongoing due diligence and internal approvals, which may result in further bids being received.

Cabora Bassa Project progress

Under the Heads of Agreement with Geo Associates, Invictus has agreed to increase the minimum work program obligation for the current second exploration period to drill two exploration wells, including the Mukuyu-1 prospect and one exploration well in the expanded area.

Besides, Invictus largely completed its interpretation of the newly acquired seismic data of the 2021 Cabora Bassa 2D Seismic Survey (CB21 survey), as well the concurrently reprocessed data of the 1990 legacy Mobil dataset. Notably, Mukuyu Prospect has now been clearly delineated as a large, robust, 4-way dip anticline, with the seismic data confirming prospectivity, including extensive seismic anomalies identified at multiple levels.

Management updates

In the March 2022 quarter, Invictus appointed Barry Meikle as Country Manager. Additionally, the Board travelled to Zimbabwe for a series of on-the-ground engagements in March.

Together with JV partner One-Gas, presentations and meetings were held with the local community leaders and senior government ministers. Tours of Community Social Responsibility projects were implemented in the Muzarabani and Mbire districts.

The highest bid for lithium at an online sale surged by 140% in just six months, an indication the stampede for supplies of the main ingredient used in electric vehicle batteries could get even more intense.

By Sophia Takuva

Pilbara Minerals Ltd.’s auction of spodumene concentrate — a partly-processed form of lithium — attracted a top bid of $5 650/t on Wednesday for a cargo of 5 000 t. That compares with $2 350 at the previous sale in late October on the Australian miner’s Battery Metal Exchange.

The surging prices are unnerving battery makers and EV firms. Tesla Inc. CEO Elon Musk said this month that lithium had gone to “insane levels” and is the “fundamental limiting factor” for EV adoption, adding the car giant might consider mining or refining it directly. Contemporary Amperex Technology, the world’s largest battery maker, said last week it had won exploration rights for a lithium clay deposit in China.

“The pricing received on the BMX sales trading platform is indicative of the critical shortage that exists in respect of lithium raw material supply,” Pilbara Minerals said in a statement. It’s the company’s fourth online spodumene sale.

The jump in the auction bid is roughly in line with the increase in lithium carbonate — a chemical used in battery production — in China. It started rising in the middle of last year as the global recovery from the pandemic coincided with a surge in EV demand.

The rally has lost momentum in recent weeks — prices are currently at 467 500 yuan ($71 182) a ton, according to Asian Metal Inc. — as the worsening virus outbreaks upended supply chains and clouded the consumption outlook. The auction result suggests Chinese lithium compound prices are unlikely to drop below 400 000 yuan a ton, Daiwa Capital Markets’ analysts Dennis Ip and Leo Ho said in a note.

Miners are cranking up production to meet the skyrocketing demand and also enjoying bumper profits. Chinese producer Ganfeng Lithium Co. reported a more than 600% jump in first-quarter net income from a year earlier, while Pilbara’s share price rose as much as 6.5% on Wednesday.

The Perth-based miner said it plans to hold the auctions more frequently as it ramps up production at its Ngungaju mine in Western Australia. However, it also warned that virus-related labor disruptions may result in output being in the lower half of the 340 000 t to 380 000 t guidance for the year through June.

Zimbabwe’s uncompetitive formal market could derail the government’s ambitious  gold mobilisation programme as compliance will be low, the Chamber of Mines of Zimbabwe has said.

This  week the government launched the gold mobilisation programme as part of efforts to encourage local miners  to comply voluntarily.

But, the Chamber of Mines of Zimbabwe CEO, Isaac Kwesu, said  the formal market must be competitive.

“Voluntary compliance is an issue of market forces that ensures that miners are paid timeously at a fair price. And naturally you have no incentive to participate in illegal markets when the formal market is competitive,” Kwesu said.

He said output will be increased by mobilising gold that is already being produced but not sold through formal markets.

“Remember, we account for gold deliveries through Fidelity but some of the output that are being produced is not being delivered to fidelity. So if all output found its way to the formal market that would be a quick win,” Kwesu said.

The development comes at a time miners are selling their gold in the lucrative black market, where payments are done timeously.

Recently, Mines and Mining Development minister, Winston Chitando, said the government was optimistic gold output will exceed 100 tonnes  in 2023 following the mobilisation programme.

Fidelity Printers and Refineries’ acting general manager Peter Magaramombe was also confident that the numbers can be achieved.

“We are going to make sure that we are giving the right price to miners. As you can see right now in terms of our prices of the small-scale miners we are paying some very good prices.

“Secondly, we are making sure that we have got cash readily available. If you don’t have cash, the miners will go to the next person which is black market.

So, basically, those are two main key issues that we need to deal with,” Magaramombe said.

The gold mobilisation programme, which began  on Monday this week, seeks to enforce compliance by gold dealers, increase accountability by stakeholders with the main goal of boosting gold deposits to Fidelity, the country’s sole gold buyer and marketer of gold.

Government is targeting to have a mining industry worth US$12bn by 2023.

Chitando said there is potential to far exceed the target.

Business Times