The CNRG last week conducted the Kamandama commemoration in honour of the widows who lost their spouses during the disaster.
According to CNRG Executive Director Mr Farai Maguwu, the widows are living in misery therefore the Hwange Colliery Company should make sure that the living conditions of the women who lost their spouses through the disaster is looked into.
“The widows are living in misery. We call on Hwange Colliery Company to build decent houses for these widows. Their living conditions is an indictment of both Hwange Colliery Company Limited and the GoZ. How we treat widows and orphans speaks volumes about the state of our conscience,” Maguwu said.
During the commemorations, the widows who lost their husbands in the Kamandama disaster could not hide their emotions saying that the incident is always fresh to them.
In the history of mining in Zimbabwe, the Kamandama disaster remains the deadliest. On June 6, 1972, four hundred and twenty-seven mine workers perished at the then Wankie Colliery’s Number 2 shaft when a string of underground gas explosions ripped through the mine.
The accident was so bad that most miners’ bodies were not retrieved and the shaft sealed off.
Miners drawn from South Africa, Angola, Zambia, Malawi and Costa Rica, among other countries, also died in the disaster.
In an effort to promote safety and health in the artisanal and small-scale mining (ASM) sector, the Zimbabwe School of Mines in conjunction with the Zimbabwe Environmental Law Association (ZELA)yesterday trained 36 ASM technical response teams from Bubi, Gwanda Zvishavane and Shurugwi to promote the effective and safe use of first aid.
Rudairo Mapuranga
The School of Mines and ZELA also took the opportunity to expand training of the teams on miner rescue practices and technologies so as to reduce mine accidents in the ASM sector.
“ZELA, School of Mines and partners are encouraging Artisanal and Small-Scale Miners to adopt best practices in their operations.
“In our endeavour to promote the effective and safe use of first aid and miner rescue practices and technologies in the ASM in Zimbabwe we are training 36 ASM technical response teams from Bubi, Gwanda Zvishavane and Shurugwi,” ZELA said.
Earlier this year, the Minister of Mines and Mining Development Hon Winston Chitando warned small-scale and artisanal miners who are not working in compliance with the dictates of the laws of Zimbabwe that they risk losing mining certificates.
Minister Chitando said the government will not renew licences for non-compliant miners who are not adhering to sustainable mining practices, marketing laws, tax regimes and labour laws.
The Minister said that the government will deal with issues of environmental degradation happening in mining communities by making sure that before the commencement of any extraction of resources miners should have an Environmental Impact Assessment (EIA) certificate.
He said that the government was not going to renew any mining certificates for miners with no EIA certificates. He also ensured the ASM sector that a special EIA certificate specifically for them has been designed.
“I’m sure we are all aware that once you get your mining certificate or concession, it is not yet the approval to commence mining. One has to submit the sight of works plan to the Ministry, one has to get an EIA certificate and there is an abridged version of the EIA certificate specifically for the ASM sector. Every miner must comply with responsible mining laws. The level of environmental degradation taking place in some areas is simply unacceptable. We will as the government before the renewal of any mining concession ensure that environmental laws are adhered to,” Chitando said.
SG 90% AND ABOVE US$55.23/g
SG ABOVE 85% BUT BELOW 90% US$54.36/g
SG ABOVE 80% BUT BELOW 85% US$53.78/g
SG ABOVE 75% BUT BELOW 80% US$53.19/g
SAMPLE BELOW 10g BUT ABOVE 5g US$52.32/g
FIRE ASSAY CASH US$55.23/g
Exchange rate TBA
NB: Fire Assay cash price is for gold above 100gs and no sample is deducted.
For the Fire Assay 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 to Primary Producers
Cash available. Fidelity Gold Refiners’ prices will be changing daily in relation to world market prices.
On track to achieving its annual production gold-focused miner, Caledonia Mining Corporation (NYSE AMERICAN: CMCL; AIM: CMCL; VFEX: CMCL) is pleased to announce that the Board of Directors has declared a quarterly dividend of 14 United States cents (US$0.14) on each of the Company’s shares.
Rudairo Mapuranga
The company which is targeting annual production of 73,000 to 80,000 ounces of gold in 2022 at its Blanket Mine in Gwanda is strategizing on becoming a multi-asset gold producer. The company continues to evaluate investment opportunities in Zimbabwe and elsewhere.
“Gold production so far this year has been strong, and we are on track to hit the top end of our guidance range of 73,000 to 80,000 ounces.
“Although the dividend continues to be a central part of our strategy, I am very excited with the opportunity that we have to evolve our business in Zimbabwe and de-risk it from being a single asset producer.
“I look forward to updating the market of our progress in due course,” the company Chief Executive Officer Mr Mark Learmonth said.
On January 3, 2020, it was announced that Caledonia would be increasing the quarterly dividend by approximately 9% to 7.5 US cents per share, commencing with the dividend to be paid at the end of January 2020. On June 29, 2020, it was announced that Caledonia would be increasing the quarterly dividend by approximately 13% to 8.5 US cents per share, commencing with the dividend to be paid at the end of July 2020, and on October 1, 2020, a further increase was announced to 10 US cents per share (an 18% increase). In 2021 increased dividends were announced in every quarter: January, April, July and October. The October dividend was increased 8% to US$0.14 cents a share, a 104% increase from the dividend announced in October 2019.
In January 2022, the Company announced a further dividend of US$0.14 cents a share. With Central Shaft now complete, the Company strategy is predominately de-risking the business from being a single asset producer.
The Caledonia board will continue to review dividends which will depend on the performance of the company and its capital investment requirements.
The visit saw Mine Managers touring the underground mine sharing technical information and taking notes on how the recently awarded “most improved gold mine” conducted its business. After an underground tour, I had a sit down with the man running the show Engineer Elton Gwatidzo. It was easy to see why he was voted President of the AMMZ as the man knew his business. Here is how the interview went.
KS Tell us a bit about yourself.
EG Elton Gwatidzo is a Mining Engineer who studied at the UZ. He has worked for BIMCO at ZISCO, PanAff-Ayrshire Mine and is the current How Mine’s Mine Manager. He is married with 3 boys. He is a holder of various mining and management qualifications.
KS How old is Elton Gwatidzo?
EG Elton is 41 years old.
KS What made you choose Mining as a profession?
EG My father is Ex-Wenera so I had an interest in mining from a very young age.
KS What’s your typical working day like?
EG Early morning daily reports, meetings, news press catch-up and various KPIs tracking.
KS You are running one of the oldest mines in the country, tell us about the history of How Mine?
EG Pegged in 1941 by J. Howe (hence How Mine). The mine Started with open pits and stamp mills for processing. It changed various ownership hands including 1971 when Lohnro took over then Metallon took over in 2002 until today.
KS How many metres below ground level is your deepest shaft and how do you get air circulation down there?
EG The deepest shaft is currently at 33L, 1200m and still sinking further down. Ventilation is supplied through the North shaft and Main Shaft which are intake while exhausting using districts in the old workings. A negative pressure system is employed.
Elton Gwatidzo with AMMZ members underground at Bulawayo Mining Company’s How Mine.
KS We have seen the new (Level) you are currently working on (opening). Tell us about it.
EG The new mining level being opened is 32L. Shaft sinking is progressing to 36L so as to establish a loading level at 35L which will enable access to ore from 32L. Each mining back is 76m ie from 30L to 32L.
KS Seeing there is lots of Mining in Southern Africa are there any plans for the AMMZ to work with SADC Mine Managers for example and conduct technical visits for information sharing?
EG Post Covid-19, that should be the plan.
KS You have a strong Mining background and as a person who grew up in Mining, is there anything you are doing to help Artisanal and Small-scale Miners around you to conduct proper mining?
EG How Mine has trained Women-In-Mining to obtain Blasting Licenses and basic mining training
KS What policy improvements would you like to see?
EG The main issue is policy inconsistency
KS To ensure the sustainability of the mine, what exploration and capital development projects are you running?
EG The mine is undertaking an aggressive exploration plan for both surface and underground resources at a cost of $8.2m. The mine is also expanding operations at a cost of $3m and deepening the 16N7 shaft to extend life at a cost of $3.6m.
KS In the last five years to current, do you have any upgrades or increases in your mineral reserves?
EG Last five years of exploration have only been to maintain the known resources.
KS What is your production target this year and what measures are in place to achieve these targets?
EG The mine is planning to produce 30koz of gold and over $5.7m was spent in 2021 to ensure sustained production in terms of capital expenditure.
How Mineworkers housing
KS We have seen a mini-town suburb at How Mine, currently how many workers reside in the workers’ residential area?
EG Currently 1016 workers reside at the mine
KS Zimbabwe set a 12-billion-dollar mining economy by 2023! Is this achievable?
EG Very possible although the timing is taking a toll. Covid-19 and International instabilities are always affecting the plans.
KS Congratulations on winning the most improved gold producer of the year. What did you do right to achieve improved production?
EG Investing in the business. Investing in new and modern equipment, underground exploration, and underground development. The results were mostly a function of the shaft deepening project commissioned in 2020 at a cost of $5.3m.
KS What challenges would you say you are facing as Zimbabwean miners?
EG Access to capital, quality of supplies and fair value of revenue.
KS Any words to those who are interested in venturing into Mining in Zimbabwe?
EG Zimbabwe is still highly untapped. The vast mineral abundance is still being accessed in shallow operations. There is still huge potential We have witnessed new ventures in Coal, Lithium, Gold, Diamond, Iron Ore and Platinum. More are still opening.
KS Besides Mines and Mining, what’s Elton into?
EG Elton is into Golf, farming and some family ventures.
The global energy crisis has driven demand for Australian resources to all-time highs, with the country’s resource exports expected to hit a record of more than $400 billion, according to reports.
The ongoing Russia–Ukraine war and the resultant sanctions on Russia have led to global shortages in coal and natural gas, which has in turn seen commodity prices spike.
Australia’s record resource export earnings have come as countries look to non-Russian sources of fuel, a situation Federal Resources Minister Madeleine King said highlighted Australia as a “stable and reliable” global supplier.
“Australia’s resources and energy sector continues to underpin Australia’s economy and to support international energy security during the global turbulence caused largely by Russia’s invasion of Ukraine,” she said.
Trade figures from the Federal Government to be released on Monday, July 4 are expected to show a jump from $320 billion in export earnings in the 2020–21 financial year to $405 billion this year – a 26 per cent year-on-year increase.
Earnings from coal and liquefied natural gas have both more than doubled in the past 12 months. It is expected the trade figures will show that exports of thermal coal have jumped from $16 billion to $39 billion year on year as a result of historically high prices, while metallurgical coal has risen from $23 billion to $60 billion over the same period.
Iron ore remains Australia’s most valuable export, with the new trade figures estimating its export earnings reached $133 billion for the year. However, King said those earnings were expected to decline as mines in Brazil lift production volumes and global demand slows.
“The value of iron ore exports is expected to moderate further in 2023–24, as prices ease toward their historical average below US$100 a tonne,” she said.
The new trade figures come after the European Union (EU) last week said it was veering away from its reliance on Russia for raw critical minerals, instead of looking to Australia to become its next supplier.
Electric vehicle battery material lithium should not be classified as a hazardous substance by the European Union because the scientific evidence on which the proposal is based is weak, seven industry groups said.
Lithium was added to the EU’s list of critical raw materials in 2020 because it is important for electric vehicles which are key to meeting targets for cutting carbon emissions.
The proposal by the European Chemicals Agency (ECHA), which cited studies based on lithium-containing medicines used over the long term as a treatment for mood disorders, wants to classify lithium salts as dangerous for human health.
“The analysis finds only a “quite weak association” between lithium exposure and developmental effects, said Violaine Verougstraete, chemicals management director at Eurometaux, which represents the metal industry.
“For fertility, the opinion is based on selected studies with serious limitations, contradicted by more robust guideline studies which showed no effect of lithium exposure.”
EU member states are currently giving their views on the proposal to a committee which meets on July 5-6 to discuss chemicals including lithium that have been recommended for classification as dangerous.
A final decision is expected at the end of 2022 or the beginning of 2023.
Classifying lithium as dangerous would have a major impact on Europe’s energy transition goals, the industry groups including Eurometaux and Recharge, the European industry association for rechargeable lithium batteries, said in a letter to the EU.
“Europe is at a critical period in its energy transition, needing to stimulate new investment into a full electric vehicle battery value chain,” the groups said.
“Europe is playing catch-up with China, which is already over a decade ahead, now controlling most global processing for lithium and other battery metals … Europe has a narrowing window of opportunity to attract the investments needed, and lithium is a central material to our success.”
Classifying lithium as hazardous will hamper investment in European refining and recycling capacity and give an advantage to companies in the electric vehicle battery supply chain outside the European Union, the letter said.
The proposal doesn’t ban lithium imports, but if legislated it will add to costs for processing companies from more stringent rules controlling processing, packaging and storage.
RBZ has released the details of the Mosi-Oa-Tunya Gold Coin.
Said RBZ:
Pursuant to the resolution of the Monetary Policy Committee of 24 June 2022 to introduce gold coins into the market as a store of value, the Reserve Bank of Zimbabwe (“the Bank”) wishes to advise the public of the salient features and characteristics of the gold coin.
The gold coin shall be called the Mosi-Oa-Tunya Gold Coinwith the following characteristics:
(i) Weight – one troy ounce.
(ii) Purity – 22 carats.
(iii) Identification – Each coin will have a serial number.
(iv) Ownership – Upon purchase, the buyer shall take physical possession of the coin and be issued with a Bearer Ownership Certificate. The buyer or holder of the coin may opt to place it in the custody of bankers of own choice in which case a safe custody certificate/receipt will also be issued.
(v) Liquidity and Tradability – The coin will have liquid asset status, that is, it will be capable of being easily converted to cash, and will be tradable locally and internationally. The coin may also be used for transactional purposes.
(vi) Prescribed Asset Status – The coin will have prescribed asset status and institutional investors can use it to meet regulatory requirements for prescribed asset investments.
(vii) Collateral – The coin can be used as security for loans and credit facilities.
(viii) Buy Back Arrangement – At the instance of the holder, the Bank will buy back the coin. The gold coins will be available for sale to the public from 25 July 2022 in both local currency (ZW$) and United States Dollars (US$) (and other foreign currencies) at a price based on the prevailing international price of gold and the cost of production. The coins will be sold through the Bank and its subsidiaries, Fidelity Gold Refinery (Private) Limited and Aurex (Private) Limited, local banks and selected international banking partners. Entities selling the coins shall be required to apply Know Your Customer (KYC) principles.
Victoria Falls Stock Exchange-listed gold-focused miner, Caledonia Mining Corporation has announced that its Solar plant at its Blanket Mine in Gwanda will be operational in August as the company pushes to shield its operations from the erratic electric supply the country is facing.
Rudairo Mapuranga
According to the company, Blanket Mine’s 12 MW solar project is expected to be operational by August.
“12 MW solar project is in the final stages of construction, should be operational in August. The Company has commenced the evaluation of a further phase solar project to provide Blanket’s peak demand during daylight hours,” the company said.
According to Caledonia outgoing Chief Executive Officer Steve Curtis, the project is expected to provide approximately 27 per cent of Blanket mine’s average daily electrical demand and reduce Blanket’s dependence on the grid and diesel power.
“To improve energy-supply security and minimise the effect of our operation on the natural environment, Caledonia is constructing a 12 MWac solar plant at Blanket. This project is expected to provide approximately 27% of Blanket’s average daily electrical demand, and reduce Blanket’s dependence on-grid and diesel power,” Curtis said.
Last year through its Chief Financial Officer Mr John Mark Learmonth Caledonia said electricity problems are a major operating difficulty in Zimbabwe.
The mining firm which has been performing significantly at its Blanket mine in Gwanda has had stronger cash flow and is hopeful that it will play a leading role in the achievement of the projected annual gold production target by 2023 in which the yellow metal is expected to rake in US$4 Billion annually by the year 2023.
However, according to the company, a combination of power outages becomes a challenge towards the achievements of the target as operational costs increase.
“The only significant operating difficulty in Zimbabwe remains electricity and it’s a combination of power outages, if not just straightforward shutdowns, we are just asked to reduce our power consumption in which case then we have to use the standby diesel generator,” Learmonth said.
The Company’s diesel consumption increased by 41 per cent in the year due to the generator running time increasing as a result of a deterioration in the grid supply.
Recognising the economic, environmental, and logistical challenges of running large-scale diesel generators for extended periods, Caledonia is constructing a 12 MWac solar plant.
Caledonia has contracted with Voltalia, an international renewables specialist, to construct a 12 MWac solar plant which will exclusively supply Blanket. At a construction cost of approximately $12 million, with an additional $2 million for expenses which include designs, tender process, obtaining licenses, site clearance, etc. The plant is expected to provide all of Blanket’s minimum electricity demand during daylight hours and approximately 27% of Blanket’s total electricity requirement during an average 24-hour period. Blanket will continue to rely on the grid and generators to provide additional power during daylight hours and at night.
Battery power is currently too expensive to justify its use to augment the solar plant, but the Company will continue to monitor this situation as battery technology develops. The Company will also evaluate a further phase for the solar project to provide Blanket’s peak demand during daylight hours, but this will require an agreement between the Company and the Zimbabwe authorities regarding the treatment of power that will be generated by a second phase that is surplus to Blanket’s requirements.
London Stock Exchange-listed mining and exploration junior, Premier African Minerals, has started on a high note on its Corporate Social Responsibility (CSR) initiative by investing in sports development at Pioneer Primary School in Insiza District, Matabeleland South.
Rudairo Mapuranga
Premier has expressed that it prioritizes issues of Environment, Social and Governance (ESG), as it values the community and environment in which it is extracting and exploring for minerals resources.
According to the company, it has already started clearing sporting grounds at Pioneer Primary School which is near its projected high-value spodumene project, Zulu lithium and Tantalum project.
“Social Responsibility is cardinal for any mining and exploration company. The Zulu Lithium and Tantalum project is starting to clear the sports grounds at Pioneer Primary School which is situated close to Zulu,” the company said.
Recently, President Mnangagwa called on the mining industry to prioritize ESG issues for communities to fully benefit from the minerals extracted in their areas.
The call comes after various communities have raised a red flag and demanded change on matters of sustainable mining.
The President said that many miners were not prioritizing mine rehabilitation which has become a cancer with him witnessing many uncovered pits around the country.
Communities are no longer ignorant on matters of sustainability and are demanding change while at the same time investors and financial institutions seek to put the onus back on businesses to make them more inclusive, socially responsible, and sustainable. Compliance, therefore, emerges as the critical factor to drive change and the call to action lies with governments to enforce regulations and benchmarks.
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