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Caledonia files technical report on the 940,000 oz Maligreen project

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Further to the announcement of Caledonia Mining Corporation Plc on 23 September 2021 concerning the Maligreen project, the Company announces that it has today filed on SEDAR a NI 43-101 technical report on Maligreen

As a reminder, Maligreen is a property situated in the Gweru mining district in the Zimbabwe Midlands and contains, as stated in the report, a NI 43-101 compliant inferred mineral resource of approximately 940,000 oz of gold. Caledonia is expecting to finalise the process of transferring the claims from the seller shortly, at which point the agreed consideration of US$4m will become payable.

Market Screener

 

Monitor mine Peggers’ fees – ASM

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Artisanal and Small-scale Miners (ASM) in Mashonaland Central are pleading with the Ministry of Mines and Mining Development (MMMD) to regulate and monitor mine Peggers’ (prospectors) fees.

Vongai Mbara

Speaking at a workshop in Mukaradzi, miners raised concerns about the high and unstable prices being charged by peggers, saying it was one of the leading causes of corruption in the industry.

“We are pleading with you, the Ministry. Is there anything that you can do to regulate these peggers because they are stealing from us? It would be better if there was a fixed price for pegging to avoid confusion and daylight robberies.

“The current system whereby you have to negotiate for a fee with the pegger is creating corruption. Imagine if I negotiate for US$500 and someone offers to give the pegger US$2000 for the same area. Obviously, the pegger will go for the latter and it will eventually lead to double pegging,” said one of the miners at the workshop.

Miners at the meeting gave a nod to the idea, saying those who were financially privileged overwrote them by offering to pay peggers four times more than they could afford.

The workshop was organized by the Zimbabwe Miners Federation (ZMF) Mashonaland Central province in conjunction with the Ministry of Mines and Mining Development (MMMD) to raise safety awareness as well as improve livelihood of miners in the province.

MMMD representative, Mr Muzanenhamo who was in attendance said it was beyond the Ministry to regulate peggers because they are independent agents.

“The reason why the Ministry is not regulating peggers is that they are independent agents who are trained by the Ministry. It’s like when you go to get your VID driver’s licence. They can only train you to drive but cannot detect how much you can charge your passengers after you get your licence. However we are going to take the issue to the relevant authorities and see if something can be done,” Muzanenhamo said.

ZMF Mash Central Secretary for youth, Nyaradzai Diana Kanyemba encouraged the miners to vet the peggers first before paying them.

“There are a lot of fraudsters pretending to be peggers and that’s why issues of double pegging are increasing. I advise miners to do proper checks before paying. A pegger should have a licence from the ministry. It is your right as a miner to ask for that first-hand to avoid complications in the future,” Kanyemba said.

Teenager (16) dies in mine shaft collapse

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A 16-year-old boy from Bulawayo died last week after a gold mine shaft collapsed while he was inside with two other men in Hope Fountain.

According to police, the teenager from Village 16 Ntobi Rest-Bubi was employed at the mine in Hope Fountain.

Bulawayo police provincial spokesperson, Inspector Abednico Ncube, said they were investigating a case of sudden death which occurred at a mine in Hope Fountain, Bulawayo on November 3.

“The deceased is a male juvenile aged 16 years of village 16 Ntobi Rest-Bubi and was employed at a mine in Hope Fountain. The now deceased was accompanied by his workmates to work. The three entered into a mine shaft leaving no one outside,” said Inspector Ncube.

He said while inside the shaft, they heard sounds of something coming down the shaft.

“The other two ran and hid on one side of the shaft while the now deceased ran to the opposite side. When the noise had subsided, they went to check where the now deceased was and found him lying down bleeding from the head after being hit by a stone. They went out of the mine shaft and advised the informant about the incident,” said

He said the juvenile was taken out of the mine shaft breathing, but unable to speak.

“He was rushed to United Bulawayo Hospital for treatment where he was pronounced dead on arrival. The informant made police report and police attended the scene and investigations are in progress,” he said.

Inspector Ncube urged members of the public to practice safety at their workplaces.

 

The Chronicle

Mining Companies Must Seek ‘Social Licences’: Rights Group

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A Manicaland-based environmental watchdog, Green Governance Zimbabwe Trust (GGZT) has called on mining companies to seek social licenses to foster inclusion and participation of local communities.

The call comes after Headmen Chiadzwa and 27 villagers were recently arrested for protesting against the Chinese-owned diamond mining company, Anjin Investments’ bid to initiate a ritual ceremony without their knowledge.

The villagers were later dragged to court where they were ordered to pay $3 000 each as bail.

A social license is an ongoing approval and acceptance of a mine by its employees, community stakeholders, and the general public.

Social licenses are centred on the idea that institutions need regulatory permission. There is also increasing pressure for ‘social permission’ to conduct their business operations.

In a press statement, GGZT bemoaned the arrests of the Chiadzwa villagers, saying it was unfair as the residents were protesting against the violation of cultural rights, defilement of workers’ rights, and legacy debt.

“We are alarmed, like all forward-thinking organisations lobbying for natural resource governance to drive sustainable development, to learn of the arrest of Headman Robert Chiadzwa and 27 others on 2 November 2021,” reads part of the statement.

“As they were making a follow-up, exercising their constitutionally guaranteed rights to seek redress, the company turned on the villagers. Such spurious charges not only expose Anjin for negotiating with the community in bad faith, reeks of state-sanctioned impunity (political protection) always claimed by foreign investors.”

The environmental watchdog expressed deep concern over the failure of formal diamond mining to contribute to the national Treasury when communities were facing developmental challenges.

The GGZT said traditional leaders must not be incarcerated for representing their communities in seeking economic justice from foreign investors.

“Civil society organisations have extensively called for a legal instrument that promotes responsible investments, provides benefit-sharing, formalise artisanal mining and a framework for devolved mining governance.

“We, therefore, call for transformative conflict resolution, fully cognisant of the need to maintain public order in compliance with criminal law dictates, as a sustainable solution to repair the fractious relations between mining investments and the community.”

The rights group is rallying in solidarity with Chiadzwa villagers for challenging business operations, which violate human rights, social and cultural values, and environmental laws.

NewZimbabwe

‘Artisanal miners fuel HIV spread in Mat South’

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ARTISANAL miners have been blamed for causing the spread of HIV and tuberculosis in Matabeleland South province.

Matabeleland South TB/HIV officer Norbert Singine told Southern Eye that the province has huge mineral deposits, resulting in the influx of artisanal miners who engage in reckless sexual behaviour, causing the spread of HIV in the province.

“They are possible causes of high HIV infection in Matabeleland South. It is mostly spread by artisanal miners because they are mobile and engage in reckless sexual activities wherever they will be,” Singine said.

He said the high HIV rate was also a result of the province’s proximity to the border between Zimbabwe, Botswana and South Africa, leading to high transmission of the diseases.

“Our province is a gateway to South Africa and Botswana and this means the population in transit engages in sexual activities with our communities along the border,” he said. “These busy borders, especially Beitbridge and Plumtree, have truck drivers who sometimes do rest at the two borders and during this time, they do engage in sexual activities.”

Singine also said the influx of mopane worms harvesters added to the spread of HIV.

“People who harvest mopane worms camp in the forest. This means people are away from their families and might engage in sexual activities,” he said.

Singine said people also camped at illegal crossing points selling food to people illegally crossing into the neighbouring countries.

He said newly-identified HIV positive cases as from January to September 2021 stood at 4 535 while from September 2021 and to date, 458 cases were recorded.

According to the National Aids Council, Matabeleland South province tops the list of areas hard hit by HIV and Aids.

Ministry of Mines issues notice to cancel claims

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Mines and Mining Development Ministry (MMMD) has given the notice to cancel Chinese mining company Heijin’s certificates of registration by December 6 this year, following an uproar by villagers who are set to be displaced by its mining activities.

Heijin’s claims that face cancellation by the Mines ministry include the Kaseke claim, registered under ME1256BM and Chibvi 2, registered under ME1253BM.

The mine is extracting granite from Kaseke and Nenzou villages in Uzumba constituency.

In September, a high-powered delegation that included Cabinet ministers and Zanu PF leaders in the province descended on Uzumba on a fact-finding mission after villagers, led by Chief Nyajina, had openly resisted the invasion of their land by the Chinese.

In a letter seen by a local publication dated November 6, Mashonaland East provincial mining director Tendai Kashiri said his office visited Kaseke and Chibvi 2 blocks on September 9 and realised that the land pegged by Heijin was actually not open to prospecting and pegging.

“Following complaints made to this office by the Kaseke community, Chief Nyajina and councillor Marowa regarding registration of two blocks of base mineral claims at Kaseke (ME1256BM) and Chibvi 2 (ME1253BM) in Uzumba, this office visited the blocks to assess the facts on the ground on September 9,” Kashiri said in the letter.

“The assessment found out that the two blocks of claims were registered encompassing people’s homesteads and fields in Uzumba without the consent of the occupiers of the portions of land. The registration of the two blocks was, therefore, done on land not open to prospecting and pegging, violating section 31(1)(g)(ii) of Mines and Minerals Act (Chapter 21:5).”

The letter, which was copied to Mines minister Winston Chitando, ministry secretary Onesimo Moyo and chief director technical services Charles Simbarashe Tahwa, gave Heijin the leeway to appeal against the proposed cancellation of its certificates of registration.

“In view of the above, notice is, hereby, given of intention to cancel the certificate of registration for Kaseke ME1256BM and Chibvi 2 ME1253BM in terms of section 50(1) of the Mines and Minerals Act (Chapter 21:05),”the letter read.

“The proposed date of cancellation of the certificate of registration for the two blocks is December 6. You may, at any time before December 6, appeal in writing to the (Mines) minister against cancellation. By copy of notice, you are, hereby, advised that any mining and allied operations on these two blocks are suspended with immediate effect.”

Around 89 villagers in Kaseke could be displaced, while 300 graves are set to be desecrated if Heijin is allowed to begin its mining operations on the 300-hectare land pegged without the consent of villagers.

Some families in neighbouring villages such as Mukonzi, Mangani, Machanzi, Gotora, Muzembe and Chimina are also likely to be affected.

Among Heijin’s directors is alleged land baron, Emmanuel Ndemera.

Newsday

Rains could trigger mining accidents – Labour official

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Zimbabwe Diamond and Allied Mineral Workers Union secretary-general Justice Chinhema has warned that there is a high likelihood of mining accidents this rainy season due to the poor state of shafts in many mines dotted around the country. 

Vongai Mbara 

Chinhema has urged mine owners to invest more in safety rather than profits. 

“We are expecting the responsible stakeholders to ensure that the sector is in a position to deal with mining accidents during the rainy season.” 

Miners are being encouraged to ensure they practice safe mining and adhere to the relevant mining Laws and Regulations. 

Previous rainy seasons have seen the country witnessing a series of fatal accidents that have occurred mainly at gold mines around the country. 

In September 2020, five artisanal miners were trapped underground when a shaft collapsed at Task Gold Mine in Chegutu, Mashonaland West Province. 

One body of the five miners was only retrieved, 51 days after the tragedy.  On November 10, 2021, six illegal miners, including four from one family, were trapped underground when a mine collapsed in Matshetshe, Esigodini, Matabeleland South Province. 

Chamber of Mines challenges workers’ wages review demand

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The Chamber of Mines (CoMZ) and Associated Mine Workers Union of Zimbabwe (AMWUZ) have filed a challenge against some mine workers and the Zimbabwe Diamond and Allied Mineral Workers Union (ZDAMWU)’s application for review of wages.

Vongai Mbara

Recently, ZDAMWU and mine workers filed a court application challenging the Chamber of Mines (CoMZ) and AMWUZ’s proposal that their wages be increased by only 24% with effect from July 1, 2021, saying it was too insignificant.

They cited the National Employment Council for Mining Industry, AMWUZ, and CoMZ as respondents.

According to papers filed last week, CoMZ chief executive officer Isaac Kwesu said the collective bargaining process that ushered in the new wage increase was not reviewable.

“A decision which is capable of being reviewed by this court must be that of a judicial, quasi-judicial or administrative nature. In the present matter, the applicants are seeking the review of the collective bargaining process between the 2nd and 3rd respondents (NEC and AMWUZ). This is not a judicial, quasi-judicial, or administrative decision or process and as a result, the application is improperly before this court,” Kwesu submitted.

Kwesu said if the court was to do so, it should first make a finding that the collective bargaining process was unlawful or invalid premised on any ground for review that the applicants have relied on.

He said the applicants should not have sought such relief.

“Accordingly, the application ought to be dismissed with costs on this ground,” Kwesu submitted.

AMWUZ secretary-general Gideon Chirwa supported the CoMZ submission and hoped for the dismissal of the application.

NEC announced the increment through a circular to mines dated September 28. 2021.

The increase in salaries saw mineworkers earning new gross salaries of between $30 500 and $70 740.

Following the announcement, Allen Shoko, Philip Nyajeka, Gracious Sibanda, Mako Butau, and ZDAMWU filed an application for review of the salary increase at the Labour Court.

The workers noted that the collective bargaining agreement of September 28, 2021, was irrational in that the mining industry had agreed in general that the wage negotiation should be quarterly, yet the statutes stated otherwise.

Anglo can uplift livelihoods of many thousands

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Diversified mining company Anglo American can uplift the livelihoods of many thousands of people living around its communities in South Africa and support many jobs through its sustainability projects, attendees of Anglo’s second 2021 sustainability update were told.

The London- and Johannesburg-listed company outlined how it is moving away from isolated one-off community-related sustainability projects towards much larger longer-term interventions that support broader economic diversification in the regions where it operates.

“Governments obviously do development planning but we think we can bring something with a business approach to complement and to build on that,” Anglo head of responsible business partnerships Jon Samuel said during the sustainability update covered by Mining Weekly.

The sustainability approach involves deep engagement with stakeholders to understand their aspirations, which the company backs up with regional data analysis.

Climate, soils, infrastructure, skills, tourism and environmental resources are included in the many factors taken into account to build an holistic grasp of regions.

“From that, we can identify the untapped opportunities such as the tourism resources that are not being exploited, and whether there’s a mining value chain that’s not developed as much as it could be, given the demand that exists for the region and further afield,” Samuel explained.

Once the untapped potential is identified, partnerships are built and projects taken forward under a multi-stakeholder governance framework.

“We think it’s really important that we, as Anglo American, aren’t seen as driving all of this,” he said.

Buy-in from many stakeholders is sought, including government, commercial enterprises, other mining companies and non-governmental organisations (NGOs).

“Then this is all underpinned by a project management cycle,” Samuel outlined.

Principles are applied that support big, long-term, scalable interventions – to allow for more rigorous planning and improvement evaluation, and to attract the best partners.

Partnerships are seen as essential to bring expertise, credibility and new funding pools to support the interventions being promoted.

Anglo itself invariably tries to introduce a productivity lens to, for example, support the efficiencies of small businesses being supported or improving the quality of education and health care through allowing existing public service providers to be more effective and efficient.

“We always try to pull the levers that we have within the company and the biggest of those is our supply chain and our procurement, which is roughly about $11.5-billion a year, which is typically about 100 times our social investment budget.

“But we also look at things like the skills within the business and we’ve been rolling out a group-wide skills-based employee volunteering programme to tap into some of that expertise,” said Samuel.

BACKYARD AGRICULTURAL OPPORTUNITIES

Agriculture as just one example of how community development can work out. What has been identified in many host regions is that more valuable crops can be grown than existing crops.

However, higher-value crops invariably need in-region processing, which requires the correct volume and quality of feedstock and which isolated action generally cannot achieve.

“If we work with partners, we think we can bridge that gap and bring in the offtake partners to do the processing and then find a route to overseas markets,” Samuel said.

Good news is that this is under way in South Africa, involving the use of either Anglo’s land or that of commercial farmers.

Anglo will put in the correct infrastructure to support high-value agriculture and will draw on mine infrastructure for water, power and logistics.

“Around that, we’ll allow other participants to use that infrastructure as well,” said Samuel. Such participants might be other commercial farmers or other smallholder farmers.

“It can even be people growing small amounts of crops in their backyards. Some of the things we’re looking at can be literally grown in oil drums.

“By doing this, we believe that we can get better value for our land from the landholders, so there’s a commercial win for us potentially, but also there are lots of jobs we can support and we can uplift the livelihoods of many thousands of people around our communities in South Africa,” said Samuel.

ZIMBABWE, BRAZIL, CHILE AND PERU

In South America, Anglo has been working with Inter-American Development Bank and TechnoServe, a specialist NGO, on business solutions to poverty in Brazil, Chile and Peru. (See attached slide.)

The Beyond Extraction programme has created close to 5 500 jobs and met the programme targets, with businesses participating benefiting from an almost one-third increase in turnover.

A newer three-year programme in Zimbabwe called Takura is focussed on horticulture and poultry value chains. Working with TechnoServe, Anglo is planning to support about 600 farmers to generate nearly 2 000 jobs. The second year of the programme is slightly ahead of track despite COVID-19 and is already exporting fresh produce to the UK and the Netherlands. It does not rely on local economies and it brings in much-needed foreign income.

Zesa Threatens To Cut Off Mining Firms Over US$37m Debt

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ZESA Holdings has threatened to switch off mining houses over a US$37 million legacy debt, which it blames for crippling the power utility’s operational efficiency. 

Vongai Mbara  

Speaking during the recent launch of the 2021 Mining Industry Report by the Chamber of Mines of Zimbabwe (CoMZ) in Harare, Zimbabwe Electricity Transmission and Distribution Company (ZETDC) acting managing director Engineer Howard Choga said the owing companies are going to be switched off. 

“Currently, mining sector companies owe the power utility a total US$37 million and $400 billion in local currency. 

“The money owed is in operating payment plans, that’s how we have arrived at the balance. Those not paid up will be switched off.” 

He said ZETDC’s collection rate ranged from 106 percent to 110 percent, adding that Zimbabwe Electricity Supplier Authority, (ZESA) was grateful for the support it was receiving from international institutions. 

Eng Choga highlighted that the retention threshold set by the Reserve Bank of Zimbabwe (RBZ) was a limiting factor also curtailing mining houses from settling the outstanding debt. 

“The 60 percent foreign currency being received by companies is not enough to enable settling of the electricity bills in foreign currency. 

Therefore, there is a need to increase the thresholds going forward,” he said. 

The mining sector has been recognised as one of the major economic mainstays to anchor the economy for Zimbabwe to attain an upper middle-income economy by 2030. 

The sector is buoyed by rich minerals such as gold, platinum, diamond, iron and steel, chrome, coal and lithium among others. 

In the 2021 Mining Industry Report, CoMZ indicated that the foreign exchange framework remains sub-optimal on the back of a reduction in forex retention levels as well as the disqualification of mining houses from participating in the auction market. 

The Chamber of Mines also pointed out that the above situation was compounded by the loss of value on the surrendered portion of export proceeds and mining delays in payment for mineral deliveries. 

“Almost all respondents indicated that the foreign exchange retention at 60 percent were inadequate to meet their operational requirements. 

“They highlighted that the retention was under pressure from requirements to pay royalties, electricity bills, taxes and some statutory obligations in foreign currency as well as the widespread preference of US dollars by suppliers,” it said. 

“Some respondents indicated that their bids on the auction market to cover their foreign currency shortfalls were being rejected on the basis that they are not net exporters” 

The CoMZ said its membership expects the mining representative body to engage authorities to improve the forex situation within the sector. 

Players in the mining industry also look forward to the Government allowing them to pay for royalties, electricity bills, taxes and other statutory obligations in local currency. 

“Almost all respondents indicated that the value of the surrender portion that is liquidated into local currency at the official auction-rate has been significantly eroded on the back of the parallel market rate, which is used for pricing goods and services by local suppliers,” said CoMZ.