Mining ZimbabweLatest Mining News, Policy and Industry Updates

Gold deliveries to Fidelity Printers and Refiners  (FPR) surged 45% to 25.36 tonnes in the 11 months  to November 30 2021 from 17.44 tonnes delivered in the prior comparative period due to improved mining conditions and incentives.

The current gold output of above 25 tonnes is the third highest national production level with a month to go, amid indications the annual output will surpass 28 tonnes.

In June, Zimbabwe’s total yellow metal output stood at 9.948 tonnes. In the past five months, gold producers delivered 15.41 tonnes due to the 5% incentives given to those who deliver above 20 kilogrammes monthly.

FPR gold operations head, Mehluleli Dube,  told Business Times that more incentives are coming to  ramp up production.

“As at November 30 2021, 25.36 tonnes were delivered to FPR against 17.44 tonnes delivered during the same period last year. This was due to timeous payments, incentives and payment at the international gold prices rate,’ Dube said.

“November 2021 gold output rose 127% to 3.33 tonnes from 1.47 tonnes recorded during the same period last year.”

The November production is the highest monthly output  this year ahead of September with a haul of 3.17 tonnes.

From the cumulative deliveries, small scale miners delivered 15.21 tonnes with primary producers accounting for 10.14 tonnes.

Experts say output will rise to 36 tonnes with relaxed mining policies.

But policy inconsistency has dealt the country’s output a heavy blow as authorities take long to implement favourable mining policies.

On June 17 this year, RBZ scrapped taxes on small scale miners, began timeous payments and paid the prevailing international gold prices.

This reduced the impact of gold smugglers who were taking advantage of an unfavourable payment regime with estimates showing that smugglers were salting away about 3 tonnes annually.

Despite posting impressive numbers this year, Zimbabwe is still at the quarter of achieving the 100 tonnes target by 2023.

Experts say there is a need to review retention for the large scale miners and capacitation of small scale miners to ramp up production.

“The large scale miners fire assay price is 98.75% of the London Bullion Market Association ruling price payable within a week in the model 60% Nostro – 40% ZWL RTGS and is subject to a 5% royalty deduction. And with these hindrances, some large entities under-declare gold as they get way lesser than they are supposed to get,” a miner who preferred anonymity said.

“Some small scale miners are reluctant to sell to Fidelity Gold Refinery (FGR) because they know that Zimbabwe Revenue Authority  (Zimra)will access their information from FGR, they then prefer selling to parallel market where the tax collector  does not have access to their records.”

Added the miner: “The authorities should not chase after taxes as they should evaluate the cost of losing billions of US$ against limited amounts from taxes.”

FPR acting general manager Peter Magaramombe said there are plans to increase presence by establishing more gold buying centres in all active regions.

“We are facilitating a loan facility to capacitate existing and new gold mining ventures so as to increase production. We will also retain the favourable currently obtaining incentive regime and lobby for policies that promote investments into the gold mining sector,” Magaramombe said.

On Tuesday international gold prices stood at US $57 495 per kilogramme and Fidelity was paying above US$57 500 per kg to woo miners to deliver to FPR.

The government has moved to provide equipment in gold centres to move towards helping the attainment of US$4bn gold export revenue.

The government wants to establish new gold centres following a sudden increase in output.

Business Times

The country’s biggest platinum producer, Zimplats, has set aside a US$100m war chest towards refurbishing the mothballed Base Metal Refinery (BMR) at the Selous Metallurgical Complex as it seeks to further beneficiate converter matte.

Tinashe Makichi

This is part of the platinum miner’s overall capital investment strategy which has a budget of US$1.8bn to be implemented over a 10-year period beginning in 2021 which was recently approved by the Zimplats board. Of the funding, US$1.2bn has already been approved for implementation.

Zimplats owns a base metal refinery that separates minerals like nickel, chrome and copper from platinum metal groups, but says outdated technology makes it too expensive to run.

To date the white metal producer has completed a feasibility study for the modification and refurbishment of BMR.

Initially it was estimated that setting up a platinum refinery will require a whopping US$3bn.

“Zimplats will refurbish the mothballed base metal refinery, to further beneficiate converter matte (US$100m). Zimplats is pleased to announce that the board of directors has approved an overall capital investment strategy with a budget of US$1.8bn to be implemented over a 10-year period beginning in 2021, with US$1.2bn already approved for implementation,” the company said on Monday.

The projects under the US$1.8bn strategy include maintaining current production levels through mine replacements and upgrades (US$516m).

The expanding production levels through growth projects, include the development of a new mine and increased processing capacity, which will boost nameplate capacity to 8.8m tonnes per annum from 6.7m tonnes and in-country processing capacity to 380 000 tonnes of concentrate per year.

The establishment of an abatement facility will help to mitigate sulphuric dioxide emissions emanating from the current and expanded smelting capacity (US$969m), the company said.

The platinum miner is also looking at investing US$201m in an 185MW solar plant to augment power supplies and enhance ESG performance metrics to maintain Zimplats licence to operate.

“These projects are expected to be funded by internally generated resources. The ASX announcement was approved and authorised for release by the board of directors of Zimplats Holdings Limited,” Zimplats said.

The white metal producer said it will continue to scout expansion options including development of new production facilities as the platinum giant looks at extending its tentacles in platinum production.

The company is bullish on the outlook buoyed by strong metal prices and increasing production levels arising from unconstrained ramp-up of Mupani Mine and the Phase 3A expansion – third concentrator project currently under implementation.

The platinum producer is 87% owned by Impala Platinum Holdings Limited while the remaining 13% is owned by independent shareholders.

The mining company has been instrumental in the development of the country’s platinum value chain.

The group during the past year surpassed the US$1bn revenue mark for the first time in its 20-year history.

Business Times

London Stock Exchange-listed Contango Holdings has started developing markets for its semi-soft coking coal being mined by its Zimbabwean mining unit due to a huge demand by users in the Southern Africa region.

Tinashe Makichi

Contango has a 70% interest in the Lubu Coal Project based in Matebeleland North in Zimbabwe with the remaining 30% held by local partners.

Under this initiative, the group may develop a relatively material operation without recourse to full-scale mining given that the terms of the Special Grant area does not stipulate a maximum threshold of production under the trial mining licence and bulk licence.

“The board has focussed on developing markets for its semi soft coking coal and 28MJ/kg CV coal which is known to be in demand by industrial users in the Southern Africa region.

“The group may develop a relatively material operation without recourse to full-scale mining given that the terms of the Special Grant area does not stipulate a maximum threshold of production under the trial mining licence and bulk licence,” Contango Holdings chief executive Roy Pitchford (pictured) said.

The coal seams within Block B2 are from surface down to a maximum depth of 47m, ensuring operating costs are kept at very attractive levels.

Contango is initially focused on the production of coking coal, with sales expected to local and international consumers.

Pitchford noted that a key development during the period was the advancement of long-term off-take discussions for coking coal produced at Lubu with a Zimbabwean subsidiary of a major Chinese industrial company and one of the world’s largest stainless-steel producers.

He said the potential offtake partner has a sizable footprint in Zimbabwe, with plans to construct a US$1bn carbon steel plant in the country and is currently in the process of constructing several coke batteries in the Hwange region of Zimbabwe.

The Contango team undertook a productive site visit in the second half of 2021 with senior members from the major Chinese industrial company in attendance.

Since the site visit discussions have continued to make good progress, Pitchford said.

Contango is now looking to optimise the development of Lubu with a fully integrated operation enabling the manufacture of coke However, following further positive results from studies during the second half of 2021.

Pitchford said Contango will focus on extracting bulk samples of the high value coking and metallurgical coals found in the 1A Lower and MSU seams.

Although close to surface, this will be treated as an underground operation, like those previously mined around Hwange Colliery, enabling the group to focus specifically on the high value product of particular interest to the major Chinese industrial company for its newly built coke batteries and for the expected Contango-owned coke battery.

He said company is fully funded to bring Lubu into production at the end of the first quarter of 2022 following a capital raise.

Business Times

B2Gold Corporation, the Canadian company that owns mines in Africa and the Philippines, is interested in acquiring gold assets in Zimbabwe.

The mid-tier gold producer, which has mines in Mali, Namibia and the Philippines, has held talks with the government and other officials Zimbabwe “to see if they are ready for us to come in,” said Clive Johnson, chief executive officer of the Vancouver-based company.

“There is really a strong case and we are making that case in Zimbabwe,” Johnson said in an interview. “We are looking at it as intriguing potential with some advanced projects as well as exploration potential.”

B2Gold considered buying Metallon Corporation’s Shamva gold mine two years ago, but wanted authorities to exempt it from a law that forces miners to sell all the metal to a unit of the country’s central bank.

Zimbabwe desperately needs fresh investment in its key mining sector to reboot a struggling economy. Still, forcing gold miners to sell the bulk of their bullion to the central bank unit, Fidelity Printers and Refiners, which then pays them back partly in dollars and partly in local currency, is unnerving to new investors.

Winston Chitando, the mines minister, said that B2Gold has shown interest in investing and is holding talks with privately-owned gold mining companies.

B2Gold would consider buying operating assets in Zimbabwe and also enter into joint ventures and the company could also explore the potential for establishing a milling plant, the CEO said. The miner is also searching for gold in Finland, Uzbekistan and is seeking to build a new mine at the Gramalote project in Colombia with AngloGold Ashanti Ltd.

Zimbabwe’s output of the precious metal, which the nation relies on for most of its foreign-exchange earnings, is forecast to rise 12% to 28 tons this year, Fidelity Printers said. The government has previously projected gold production to increase to 100 tons by 2023.

“It’s an interesting area for us geologically and that’s what we looking for in the world,” said Johnson, who has led the company since it was founded in 2007. “We will probably enter the first part of next year a bit more confident to talk more about what we see there as the potential.”

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Bloomberg

Invictus Energy Limited, the Australian firm that is exploring for oil and gas reserves in Muzarabani district, has started trading on the OTCQB market, as part of efforts to raise funding for the project, the firm said in a statement.

The OTCQB is a mid-tier equity market which lists primarily early-stage and developing companies in the United States (US) and international markets.

The company will trade on the OTCQB market under the ticker IVCTF.

“Invictus Energy Limited is pleased to announce that it has qualified to onboard to the OTCQB market maintained by OTC markets in New York,” the note read in part.

By upgrading to the OTCQB from the pink market, Invictus enabled its current and prospective US investors “improved market visibility, increased trading liquidity and the most up-to-date information otherwise not found on the pink market.”

Last month, the southern Africa-focused oil and gas exploration outfit said its Cabora Bassa 2021 seismic survey campaign in Zimbabwe was progressing well.

The data quality and density being acquired from the survey was excellent and a step change from the previous Mobil survey conducted in 1990, the company said.

“The HSE [health, safety and environment] performance has been exceptional, and the project has now exceeded
87 000 hours without a lost time injury. The seismic data QC [quality control] and processing has commenced and is ongoing,” it said.

Invictus has awarded Polaris Natural Resources Inc, Canada’s largest seismic company to provide acquisition services for its first seismic programme in the Cabora Bassa Basin.

The firm was tasked to conduct, process, and interpret a minimum of 400km of seismic data in order to refine the Mzarabani-1 drilling location and well path and identify additional prospectivity for the upcoming drilling campaign.

The portfolio consists of a highly prospective 250 000 acres within the Cabora Bassa Basin.

The Cabora Bassa Project encompasses the Muzarabani Prospect, which is potentially the largest, undrilled seismically-defined structure onshore Africa.

The prospect is defined by a robust dataset acquired by Mobil in the early 1990s that includes seismic, gravity, aeromagnetic and geochemical data.

The company is advancing the current exploration programme with the acquisition of infill seismic data for the planned first half of 2022 basin opening drilling campaign.

Newsday

SHURUGWI and many other towns across the country are blessed with an outstanding mineral endowment but the impacts of artisanal gold mining on the environment, health and education are as many as the components that incite it.

The artisanal miners have proved to be a social menace in communities around the country, causing environmental degradation as well as engaging in wars over mining claims and gold.

Their socially deviant behaviour stretches beyond the terror of machete wars to the use of money in the continued exploitation of the girlchild with 23 girls at Chironde Secondary School in Ward 19 in Shurugwi having dropped out of school after being impregnated by artisanal miners.

This situation is not peculiar to Chironde Secondary School or Shurugwi district alone but in all communities where artisanal gold mining is taking place.

This publication understands that although various campaigns have been carried out against child sexual abuse, the practice is still rampant and every year many girls are forced to drop 100% Online Masters in Education out of school after falling pregnant.

According to Zimbabwean laws, sexual intercourse with anyone below the age of 16 is a criminal offence, yet the majority of school girls who fell pregnant fall below the age of consent.

Last year, the Government amended the Education Act to allow pregnant girls back in class but reports indicate that a few girls were returning to school, as they have to assume motherly roles.

The Zimbabwe Statistical Agency (Zimstat) confirms that levels of child marriage remain unacceptably high in Zimbabwe.

According to the 2019 Multiple Indicator Cluster Survey (MICs), one in three (32.6 percent) girls were married before the age of 18.

Zimstat data also indicate the rural-urban divide in child marriages where rural girls are twice more likely to be married before the age of 18 than their urban counterparts.
According to World Vision International, under the Improving Gender Attitudes, Transition, and Education Outcomes (IGATE) initiative, the girls’ education is uniquely threatened.

School closures increase vulnerability to child marriage, early pregnancy, and gender-based violence – all of which decrease the likelihood of girls continuing their education.

In Shurugwi district, artisanal miners both young and old make sure that when they hit a “score”, (mining lingo for getting gold) they go back to the townships or business centres such as Chironde where they dangle wads of United States dollars to their peers and obviously the intention will be to lure the school going young girls.

Last week, the Zimbabwe Gender Commission (ZGC) held a district community dialogue outreach programme at Chironde business centre where young girls, women and men all blamed the increase in artisanal gold mining to the surge in teenage pregnancies, early marriages and GBV.

A teenage girl (name withdrawn to protect her) said she didn’t have money to pay her school and examination fees following the death of her parents forcing her to look for an artisanal gold miner to support her.

“From the first term he paid my school fees and then my examination fees and that was after the death of my parents. We were doing good until I fell pregnant in June. All hell broke loose and I had to drop out of Chironde Secondary School. I am not the only one, we are many and we are suffering because of these artisanal gold miners,” she said.

Miss Kudzaishe Watch from the department of Social Welfare in Shurugwi told the meeting that child marriages, teenage pregnancies were rife in the district.
“Child marriages and teenage pregnancies are all rife in this Ward 19 and Gutsaruzhinji village from pupils in Grade 7 to A Level. You find a 10-year-old girl in a relationship with a 17-yearold boy or a 17-year-old girl going out with a 50-year-old guy. Most child marriages are not being reported. Twenty-three girls dropped out of Chironde Secondary School after falling pregnant mostly to artisanal gold miners,” she said.

Chief Nhema said poverty, peer pressure, Covid-19, and artisanal gold mining were all contributing to teenage pregnancies in his area.

“Poverty makes the children enter into relationships with these artisanal gold miners as they look for money for food and other things. For some, its peer pressure. Shurugwi is blessed with an outstanding mineral endowment and there is a surge in artisanal gold miners. Young boys drop out of school to go into gold panning. They come back to the villages dangling United States dollars and the girls because of poverty and peer pressure fall for them and get
pregnant, enter into child marriages and are victims of domestic violence,” he said.

A villager, Mrs Maria Nyoni said there should be an educational policy that will see a smooth transition from pregnancy into motherhood and schooling.

She said without policies, teachers will continue to be hesitant towards teenage pregnancies, viewing it as none of their business but rather the children’s problem.

“There is a need for training of teachers, sensitising them to make changes in their perceptions in view of the current trends and to accept pregnant children wholeheartedly.

There is a need to facilitate their re-entry into school after delivery because right now they are failing to go back to school because no-one from teachers to society accepts them. How can a teacher accept the pregnant pupil when her own family or her own parents have chucked her away?” asked Mrs Nyoni.

ZGC chairperson commissioner Margret Sangarwe said addressing child marriage was central to the work of the commission as it was one of the systemic barriers prejudicial to the achievement of gender equality in the county.

Child marriage she said impedes the full enjoyment of rights, it limits girls from accessing educational and economic opportunities that could lift them and their families out of poverty.

“Further, child marriage exposes the “brides” and their new-born babies to high health and death risks due to physiological immaturity. Over and above these effects, child marriage increases the risk of domestic violence and compromises one’s ability to exercise choice regarding sexual and reproductive health rights,” she said.

Commissioner Sangarwe said the community dialogue was coming at the backdrop of a significant rise in cases of child marriage in Zimbabwe.

“A case in point is the case of Anna Machaya, a 14-year-old girl who died whilst giving birth at an Apostolic shrine in Marange, Manicaland Province. The Anna Machaya case is only a representation of many other cases going unreported,” she said.

“Furthermore, it is worrisome to note that the situation has been further heightened by the Covid-19 pandemic and other humanitarian situations. During the lockdown period we have witnessed cases of child marriage escalating, a lot of young girls fell pregnant and were married off before the age of 18.”

The Ministry of Primary and Secondary Education communication and advocacy director, Mr Taungana Ndoro said the Government amended its Education Act, making it illegal for schools to expel students due to pregnancy.

The Chronicle

Deaths in South Africa mines, which include the world’s deepest gold and platinum operations, rose for a second consecutive year as worker safety deteriorated.

The toll so far in 2021 was 69, up from 48 a year-earlier, the Department of Mineral Resources and Energy said in a statement Monday.

In 2019, 51 people died over the whole year, the lowest number of fatalities on record, before climbing to 60 last year.

Miners are looking to improve safety practices to address the falls of ground and transport-related accidents that were the leading causes of death as the sector, the ministry said in the statement, which was jointly issued with the Minerals Council South Africa.

The industry, which employs more than 450 000 people and accounts for about 8 percent of the economy, has previously seen declining fatalities over several decades.

“This is the second consecutive year of regression in fatalities and the industry’s stakeholders have committed to urgently address the unacceptable situation,” they said.

Sibanye Stillwater Ltd said on Friday that four workers died in two separate incidents at its platinum and gold mines, raising the 2021 death toll at its operations to 18.

Rival miner Impala Platinum Holdings Ltd also reported four fatalities in recent days after two incidents at its mines in Rustenburg.

ZIMBABWE has urged Western Countries to float a lucrative financial rescue package which will serve as a safety net for poor countries expected to stop coal usage.

Signatories to the Cop26 agreement, which Zimbabwe is a part of, have committed to ending all investment in new coal power generation domestically and internationally.

They have also agreed to phase out coal power in the 2030s for major economies, and the 2040s for poorer nations.

Speaking to NewZimbabwe.com on the sidelines of the Skills for Energy in Southern Africa (SESA) networking event organised by the International Labour Organisation (ILO) recently, Labour ministry’s chief director, Clifford Matorera said the developed countries must actively support poor nations.

He said the West should really come up with a package which is not tight bearing in mind that they developed using by-products which came from fossil fuels originating from Hwange like coal.

“They have reached these successful levels which they are at today and African countries are also trying to rise up to that level and they are now saying if you don’t do this then they are sanctions to do with failure to comply with energy production,” Matorera said.

“My argument is that we need a concerted effort from all regional and continental blocs to press the West to come up with a rescue package that can then be used as a rescue package if they want us to stop using coal. We cannot just wake up and say we can’t produce coal because of these developments. Yet the greatest enemies to ozone destruction are the first world countries,” he said.

Also speaking at the occasion, ILO’s Southern Africa, chief technical advisor in the SESA project, Lloyd Ngo said by the close of the project, it is expected that a total of 1617 engineers, technologists and technicians will be trained within the region contributing towards reduction of skills deficit.

“The Capacity of Kafue Gorge Regional Training Centre (KGRTC) will be enhanced to become a sustainable center of excellence in provision of skills training in renewable energy and energy efficiency technologies for the energy sector in the region,” he said.

The US$3,8 million project partnership agreement will be executed over a three- and half-year period and will be implemented by the Kafue Gorge Regional Training Centre (KGRTC).

It is a build up to the just-ended Skills Development for the Renewable Energy Sector (SkiDRES) pilot Project implemented from April 2019 to October 2020, whose objective was to test and prepare for further skills development for the Renewable Energy (RE) and Energy Efficiency (EE) sector.

“The project will be implemented from January 2021 to June 2024. The key implementing partner is Kafue Gorge Regional Training Centre. More details on KGRTC will be presented,” added Ngo.

New Zimbabwe