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Zim approves energy park that will fetch over US$13 billion annually

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Zim approves energy park that will fetch over US$13 billion annually
The government of Zimbabwe has approved the country’s first value addition and beneficiation park which on completion fetches an annual revenue of over US$13 billion for the country.
Rudairo Mapuranga
The proposed energy park by a group of Chinese investors, Eagle Canyon International Group Holding Limited and Pacific Goal Investment will process metals including graphite, nickel, chrome, lithium and platinum was given a go-ahead by the Minister of Mines and Mining Development Hon Winston Chitando at a ceremony held at State House which was overseen by the President Mnangagwa on Friday.
According to Eagle Canyon Director Lionel Mhlanga, the multi-billion dollar project will be a world-class project by 2025 and it will fetch the country over US$13 billion annually on completion.
“The park will be Zimbabwe’s centre of value addition and beneficiation of minerals. This multi-billion dollar project on completion will have an annual turnover exceeding over US$13 billion. Phase one of this project will see the construction of two, 300MW thermal power stations together with a nickel sulphate refinery, graphite refinery and a nickel-chrome alloy refinery plant, these plants are expected to be fully operationally by the year 2025,” Mhlanga said.
Mhlanga said, as the world is looking forward to a green future through the creation of clean energy, the Energy Park will help the country benefit from the green energy revolution.
“The World Bank has forecast a 500 per cent increase in demand for minerals and metals needed to deploy wind, solar or geothermal power by the year 2050,” said Mr Mhlanga.
Speaking at the event President Mnangagwa said he was delighted to facilitate and promote the establishment of the first Mines to Energy Park in Mapinga, Mashonaland West Province. He said the country was eager to implement clean energy projects.
“This agreement attests to my Government’s commitment to implement clean energy projects as critical enablers to leapfrog the modernisation and industrialization of Zimbabwe,” he said.
He said the Mines to Energy Park will augment the government’s vision to see the mining sector becoming a US$12 billion industry by 2023.
“The Park will augment my government’s thrust on value addition and beneficiation of minerals as well as bolster the crucial role that mineral value chains play in the national industrialisation agenda. The proposed Mines to Energy Park will mark the inception of the lithium-ion battery value chain in Zimbabwe. It is set to place Zimbabwe amongst the world producers of lithium-ion batteries while contributing to the growth of a resilient clean global energy economy.
The Minister of Mines Hon Winston Chitando said the Mines to Energy Park will be constructed immediately with Engineers already on the ground to kick start the implementation of the project.
“Construction is going to start immediately. Already, the investor has put some engineers which are ready to go on-site and make sure that the project is a reality.
“But more importantly, is the fact that economic development in any country does not happen by chance or by accident, there had to be a vision,” Chitando said.
Speaking to Mining Zimbabwe at the event, Zimbabwe Miners Federation (ZMF) President Ms Henrietta Rushwaya said the project is a game changer for the mining sector in general and the country at large as it will come with many positives for the growth and development of the economy.
“It is regarded as one of the biggest game gamers in Zimbabwe since the formation of the second Republic. Eagle Canyon has come up with a setup which will among other things process graphite, chromium and process various other minerals. The beneficiation of such minerals will go a long way in ensuring that our country gets benefits from the real value of minerals. Eagle Canyon will also generate a lot of electricity. It creates a lot of employment, the creation of employment by the company is indeed welcome by the Zimbabwean mining sector,” Rushwaya said.

Fidelity Gold Refinery gold buying prices 16 September 2022

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Fidelity Gold Refinery gold buying prices 16 September 2022

Fidelity Gold Refinery (FGR) official gold buying prices Friday 16 September 2022.

SG 90% AND ABOVE US$51.59/g
SG ABOVE 85% BUT BELOW 90% US$50.77/g
SG ABOVE 80% BUT BELOW 85% US$50.23/g
SG ABOVE 75% BUT BELOW 80% US$49.68/g
SAMPLE BELOW 10g BUT ABOVE 5g US$48.87/g
FIRE ASSAY CASH US$51.59/g

NB: Fire Assay cash price is for gold above 100gs and no sample is deducted.
For FireAssay Transfer price, a sample of not more than 10g is deducted
2% royalty is charged on all deposits (Small-scale Miners)
5% royalty is charged on Primary Producers

Cash available. Fidelity Gold Refinery prices will be changing daily in relation to world market prices.

Gazette chrome prices, establish chrome hubs, MMCZ told

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Gazette chrome prices, establish chrome hubs, MMCZ told

As the government is working on supporting the domestic ferrochrome industry, there is a need to gazette a pricing structure and establish chrome hubs with weighbridge and equipment, popular miner Sophia Takuva said at this year’s Zimbabwe Alternative Mining Indaba (ZAMI).

Rudairo Mapuranga

According to Takuva, it was of importance for the government through the Minerals Marketing Corporation of Zimbabwe (MMCZ) to support primary producers of chrome ore as this will help in the achievement of the Ministry of Mines and Mining Development’s vision to see mining realize an annual revenue of US$12 billion by the end of 2023.

“As the government is working on supporting the domestic ferrochrome industry, there is also a need to support the primary producers of chrome ore to benefit from their resources. There is a need to gazette a pricing structure and establish chrome hubs with weighbridges and extraction machinery like excavators. This will increase the production of chrome and make a success of vision 2023 of a US$12 billion mining industry.

“The chrome miners plea to the MMCZ to gazette the pricing structure that guides the chrome buyers. Most buyers are Chinese companies, they work with agents that negotiate prices for the companies and it’s very difficult to negotiate a fair price that can also benefit the miner. There is also a challenge in scaling on the weighbridge, these companies temper with the weigh ridge when miners bring the chrome they always weigh less than the actual weight so instead of being paid 100 tonnes, a miner ends up being paid 80 tonnes,” Takuva said.

It should however be noted that MMCZ has started gazetting a chrome pricing structure thanks to the call by miners, however, the structures are not yet popular as buyers are still buying predatorily from small-scale producers.

According to Takuva, chrome mining has the potential to make a meaningful contribution to the growth of the economy through revenue generation and employment creation.

“In the rural mining communities, small-scale mining has brought development and in Mapanzure and Neta areas, chrome mining is changing the lives of many. Artisanal and small-scale chrome miners use their income to build their homes, drill boreholes that benefit the community, build shops at business centres, and also contribute to building schools and clinics in their areas,” she said.

She said, Chrome mining is capital intensive and it needs expensive machinery to produce, ASM chrome miners depend on Chinese investors for machinery and a market for their chrome.

“Chinese investors partner with small-scale chrome producers in the Mapanzure and Neta areas of Zvishavane. Most of the rich claims are deep and they need excavators to extract the chrome and the deeper the excavation, the higher the cost for the miner miners, usually do not own their mining machinery, they depend on the Chinese for equipment. In exchange, the miners must sell ore back to their Chinese partners or risk losing the relationship.  claim owner who has access to the ore, who must renew his title to the mine annually and pay several taxes and fees – takes 15% to 25%, and the rest goes to Chinese partners at artificially low prices. The Chinese partners who own equipment, end up with all the chrome and get profit,” Takuva added.

“There are several women and youth chrome miners who are working in tributes, they face challenges of lack of equipment and when they get the equipment and extract the chrome, they are forced to sell at the very low prices of $25 per tonne because they produce fewer tonnes that is only suitable for local buyers that smelt in the Mapanzure area. Bigger Chinese smelting companies like Afrochine sometimes offer better prices but they need more tonnes of at least 500tonnes per month buying from $60 per tonne.”

The Chinese companies that are buying raw chrome said that they are buying at lower prices because they are also selling ferrochrome at low prices to local players in steel manufacturing.

“There was a ban on the export of raw chrome since July 2022 in a bid to support the domestic ferrochrome industry, ferrochrome is a key ingredient in the production of steel, and this was a great move to support the country’s steel manufacturing sector, it helps capacitate current smelters and maximize the value chain to be realized from the country’s abundant resources. Also, the value chain cannot be closed in at the foundry alone, it goes far to various suppliers in services, chemical, gas, fuel, power, construction, banking, and the tax house ( Zimra) find opportunities to do business in the foundry and chrome beneficiation sectors,” Sophie concluded.

Gold prices plummet to a 2 year low

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Gold prices plummet to a 2 year low

Gold prices hovered near a two-year low on Friday and were set for a weekly fall as an elevated dollar and prospects of aggressive U.S. rate hikes dented bullion’s appeal.

HIGHLIGHTS

* Spot gold was unchanged at $1,664.48 per ounce, as of 0030 GMT, and was down 3% for the week so far. Prices hit their lowest since April 2020 at $1,659.47 on Thursday.

* U.S. gold futures were down 0.3% at $1,673.10.

* The dollar index was headed for a weekly gain. A stronger greenback makes gold expensive for overseas buyers.

* Gold is considered an inflation hedge but rising interest rates increase the opportunity cost of holding the non-yielding asset.

* U.S. retail sales unexpectedly rebounded in August, but demand is cooling as the Federal Reserve aggressively raises interest rates to fight inflation. Separate data showed U.S. weekly jobless claims fell last week.

* India has slashed the base import prices of gold, palm oil, and crude soya oil, the government said in a statement late on Thursday.

* Meanwhile, holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.15% to 962.01 tonnes on Thursday from 960.56 tonnes on Wednesday.

* Spot silver dipped 0.7% to $19.01 per ounce. Platinum fell 0.5% to $900.36 and palladium was down 0.2% at $2,132.49.

Reuters

Unki takes ZIMRA to court over a $24 million dispute

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Unki takes ZIMRA to court over a $24 million dispute

Unki Platinum mine has taken the Zimbabwe Revenue Authority (ZIMRA) to court over a $24 million royalty dispute, court documents seen by Reuters show.

Unki filed an urgent application at the high court on Sept. 9 to stop ZIMRA from seizing the money from the miner’s bank account, which ZIMRA claims is the value of royalties it is owed by the wholly owned Amplats subsidiary.

In its court application, Unki said it had paid the disputed outstanding royalties in Zimbabwe dollars on July 29, but ZIMRA has insisted the payment should be in foreign currency.

A ZIMRA spokesperson said they were not able to provide an immediate comment.

Zimbabwe currently allows foreign currencies to circulate in the economy alongside the local dollar.

In 2020, the government ordered miners to pay royalties in foreign currency. Although that rule was relaxed in February 2022 to allow mining companies to pay 50% of their royalties in local currency, Unki argues the Zimbabwe dollar should be able to be used to pay all taxes and royalties.

The Anglo American Platinum (Amplats) unit said ZIMRA’s move was “unlawful” and threatened its business as it is unable to trade, pay suppliers and purchase raw materials.

“The consequence is that the applicant has been locked out of its bank accounts with devastating consequences,” Unki said in its application.

Unki and ZIMRA have been embroiled in a dispute over royalties since 2018 when a special mining agreement with the government allowed it to calculate its royalties after deducting expenses.

The two parties have sparred over the calculation of royalties, with ZIMRA insisting that Unki should pay royalties on the gross value of refined minerals. Unki, however, says it only produces concentrates, not refined metals, and sells these to refiners in South Africa.

The $24 million that ZIMRA claims as underpaid royalties by Unki arises from the two parties’ different interpretations of the tax regulations, leading to different calculations.

Mining.com

SA launches a R50 million Jagersfontein relief fund

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SA launches a R50 million Jagersfontein relief fund

The Minerals Council South Africa has launched an internal emergency Jagersfontein Relief Fund for its members to contribute towards urgent humanitarian assistance, the clean-up of the affected area, and to assist with the reconstruction of infrastructure after the collapse of a tailings dam at the Free State town.

Minerals Council President, Nolitha Fakude, CEO, Roger Baxter, and the Council’s senior executives have been in regular engagement with Mineral Resources and Energy Minister Gwede Mantashe, Chief Inspector of Mines, David Msiza, and the Department Director-General, Jacob Mbele, about possible assistance the industry could provide affected communities.

While the owners of the Jagersfontein assets are not Minerals Council members, the Council sent a senior technical team to the site on Monday to assess the damage and establish what the industry could do to assist families and the affected communities.

Council President visited the site with Minister Mantashe to gain first-hand insight into the tragedy and to guide the Minerals Council’s relief efforts. “Based on our assessment of the situation, we believe urgent steps must be implemented to provide emergency assistance, including contributing funds to provide
food aid and shelter, to assist in the clean-up and contribute to some rebuilding for those affected by the disaster,” says Fakude.

The Minerals Council set a target of R50 million for the Jagersfontein Relief Fund and it has requested contributions from its member companies and associations. The funds will be administered by the Minerals Council, which will be accountable to its Board on how they are spent. An additional request was made for Minerals Council members to provide temporary shelters and other forms of assistance, where practically possible.

Mining Review Africa

Fidelity Gold Refinery gold buying prices 15 September 2022

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Fidelity Gold Refinery gold buying prices 15 September 2022

Fidelity Gold Refinery (FGR) official gold buying prices Thursday 15 September 2022.

SG 90% AND ABOVE US$52.04/g
SG ABOVE 85% BUT BELOW 90% US$51.22/g
SG ABOVE 80% BUT BELOW 85% US$50.67/g
SG ABOVE 75% BUT BELOW 80% US$50.12/g
SAMPLE BELOW 10g BUT ABOVE 5g US$49.30/g
FIRE ASSAY CASH US$52.04/g

NB: Fire Assay cash price is for gold above 100gs and no sample is deducted.
For FireAssay Transfer price, a sample of not more than 10g is deducted
2% royalty is charged on all deposits (Small-scale Miners)
5% royalty is charged on Primary Producers

Cash available. Fidelity Gold Refinery prices will be changing daily in relation to world market prices.

4 months later, Mashwest still to issue Blitz certificates

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4 months later, Mashwest still to issue Blitz certificates

In an effort to clear mining title backlogs that were dating back to 2017 the Minister of Mines and Mining Development Hon Winston Chitando deployed teams to affected provinces starting with Midlands and Mashonaland West Provinces.

Rudairo Mapuranga

The blitz teams were deployed to quicken survey inspection and reports so that miners timely receive their certificates to be able to commence regularised mining.

However, investigations done by Mining Zimbabwe seem to conclude that although the Minister had sent teams in Mashonaland West to make sure that the backlog has been cleared even with the province receiving 10 cars for the backlog clearing blitz, little to no certificates have been issued so far prompting fears that the Minister’s efforts for the mining industry to achieve a US$12 billion mining industry by 2023 are not being taken seriously.

According to a quantitative analysis done by this reporter from a sample of 312 people who were supposed to receive certificates under the Blitz program, no one has yet received a mining certificate in Mashonaland West and of the 99 people interviewed by this reporter in Midlands only 25 could not confirm whether they received certificates or not.

According to this sample research, this makes Midlands backlog clearing over 60 per cent while Mashonaland West still stands at zero. The miners from Midlands who spoke to this reporter said they received the certificates two weeks after an inspection was conducted at their claims.

The researcher is perplexed as to whether it was only coincidental that MashWest seems to be on zero per cent or the province’s inaction is potentially sabotaging the vision or it is just inapt to compliment the Minister’s efforts.

However, when Mining Zimbabwe visited Mashonaland West Province, the Provincial Mining Director (PMD) Sibongile Mpindiwa said the certificates were being issued maybe not at the desired rate by miners. She said Mashonaland West Province has been under pressure that’s why it was struggling to deal with backlogs.

She said allegations being made by miners that no single person is yet to get certificates from the Blitz are non-founded. She said her office was strategizing on how to increase the numbers because the province has a backlog that surveyors did through Mines Minister Chitando’s backlog clearing blitz.

It should be noted that Midlands Province reportedly had a backlog above that of Mashonaland West and has been able to cope with the pressure at least for now.

Mashonaland West Province before the backlog clearing Blitz was reported to have around 8000 title backlog with reports indicating that over 65 per cent of the people who are yet to get mining titles are already operating. This, therefore, means that without certificates many people although producing gold and other minerals may not be selling through formal markets leading to leakages, and potentially depriving the country of much-needed foreign currency.

Second batch of gemmology classes training rolled out

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Second batch of gemmology classes training rolled out
The second batch of gemmology and lapidary online classes under the Zimbabwe School Mines is underway. The training is being spearheaded by Eng. Clever Sithole who came up with the initiative upon noticing the skills gap within the Zimbabwe mining industry.
The shortage of gemological and lapidary skills in Zimbabwe has impacted negatively on the crucial interventions required to accurately unlock value from Zimbabwe’s gemstones and diamonds. After successfully launching the Silk Road Heart Gemological and Lapidary Centre in Afghanistan, Eng Sithole decided to collaborate with the Zimbabwe School of Mines so that the country can nurture its talent. The first batch of trainees completed its course in August 2022.
Zimbabwe is one of the biggest rough diamond and coloured stones producers in the World, and we continue to lose a lot of revenue through raw gemstone exports.
As part of the government’s economic blueprint, a Gemological and Lapidary Centre was envisaged to be launched in Mutare but to date, nothing has been done.
Eng Sithole obtained training in gemstones and diamonds in Belgium, Switzerland, Spain, India, South Africa and was also trained by the Gemological Institute of America. He is the first Career gemologist from Africa.
Speaking to Mining Zimbabwe on the line from Ghana where he is based, Eng Sithole said he will come to Zimbabwe and practically conduct complementary training for the benefit of the gemstone producers in Zimbabwe.

BREAKING: Midlands PMD, Tariro Ndlovu exonerated

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BREAKING: Midlands PMD, Tariro Ndlovu exonerated

Midlands Provincial Mining Director (PMD) Tariro Ndlovu who was arrested last week was exonerated by the court on Friday as it found no basis to even proceed with the trial.

Anerudo Mapuranga

The court found that Ndlovu was not the right person to put on trial as he did not preside over the case which he was arrested for. The court concluded that this case was in 2014 and Ndlovu joined the Mines and Mining Development Ministry in 2018, it was impossible for him to preside over a 2014 case.

The Police were reprimanded by the prosecution and told to do a better job before arrests.  The police were told that in the case of Ndlovu they did not follow procedure as they arrested him to investigate which was outside the law, the police should have arrested him after all investigations were exhausted.

The Police were also asked why they are not arresting the Minister of Mines and Mining Development because Ndlovu’s position is the Ministry’s point.

As disputes increase across the country it is essential that the Mines Ministry speeds up the Cadastre system as they claim it is the solution to the eradication of conflicts.

After the news broke of Ndlovu’s arrest Mining Zimbabwe received several calls from shocked Miners hailing from Midlands.

“Gweru Ministry of Mines is a much better place since this guy took over. You know how bad things were before him. We appreciate the fight against corruption but this sounds suspicious, so sad,” a trusted source said.

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