Mining ZimbabweLatest Mining News, Policy and Industry Updates

The country’s largest body representing the artisanal and small-scale mining (ASM) sector Zimbabwe Miners Federation (ZMF) has invited mining stakeholders from the country and abroad to exhibit in the specialized small to medium-scale mining Exhibition Hall at this year’s Mining, Engineering and Transport expo (MineEntra) to be held in Bulawayo.

Rudairo Mapuranga

According to ZMF CEO Mr Wellington Takavarasha, the Federation is offering this unique opportunity with packages that cater to businesses intending to make a breakthrough into the small to medium mining sector.

“With major decision-makers from the public and private sectors attending the event from Zimbabwe and surrounding countries, you are guaranteed to reach a wide range of targeted audience from the mining sector.’

“The Zimbabwe Miners Federation (ZMF) will, from this year be hosting small to medium scale miners exhibitors in Hall no 5 at ZITF. We are therefore cordially inviting you to attend, exhibit and participate in Hall 5 under the ZMF Flagship.

“This hall will afford you and your organisation a rare but significant opportunity to interact with serious players and stakeholders within the mining industry. We have also created private meeting rooms and conferences which will be held concurrently with the exhibition. This will result in a hive of activity for the small-medium scale miners, service providers and government arms attending.

“We are offering an early-bird 10% discount for bookings and payments made before the 10th of July 2022

“In addition, an exhibitor will get FIRST annual subscription membership to the Zimbabwe Miners Federation which includes positioning and mentioning on the ZMF website and access to the small to the ZMF Miners database and preferential consideration to all ZMF events, nationally.

 “Plus, the exhibitor will get the opportunity to be ONE of only 10 stakeholders invited to participate in the Zimbabwe Miners Federation Equipment Outreach Show that will take place over the course of the next 3 months.

“ZMF will be touring the 8 mining provinces of Zimbabwe and offering a variety of packages to the small to medium scale miners comprising of start-up to semi-advanced mining equipment to be distributed on lease hire purchase scheme.

“It is ZMF’s premium conference and exhibition that will assemble key representatives from the local and regional mining industry along with regional business leaders to network and delve into strategic conversations.

“ It will provide the largest of its kind opportunity for participants to identify and capitalize on huge business opportunities available in Zimbabwe’s rich mining sector.

“Featuring a massive exhibition space and continent-oriented conference, this event will position itself as Zimbabwe’s flagship mining business and informative event by hosting 3 days of critical deliberations, latest product demonstrations, critical knowledge sharing, quality business meetings with influential mining and related Ministries and industry bigwigs.

“Over 3 000 miners drawn from across all the 8 Mining Provinces of Zimbabwe will attend this event and this will enable exhibitors to position themselves within the context of the mining market against the backdrop of the event.

“ This event provides an opportunity for exhibitors to collect invaluable market data and contacts to better position their brands and acquire feedback from the industry elite.

The Reserve Bank of Zimbabwe (RBZ) on today announced the introduction of gold coins into the market as a store of value.

In a statement following a meeting of the bank’s Monetary Policy Committee (MPC) on June 24, RBZ governor John Mangudya also announced some measures meant to curb inflation.

“The MPC resolved to introduce gold coins into the market as an instrument that will enable investors to store value. The gold coins will be minted by Fidelity Gold Refineries (Private) Limited and will be sold to the public through normal banking channels,” Mangudya said.

He said that the MPC had expressed great concern over the recent rise in inflation, which increased to 30.7 percent on a month-on-month basis for June 2022, thereby increasing the year-on-year inflation for June to 191.6 percent.

“The committee noted that the increase in inflation was undermining consumer demand and confidence and that, if not controlled, it would reverse the significant economic gains achieved over the past two years,” he said.

In that regard, the MPC resolved to put in place measures to align the interest rates with the inflation developments and enhance the circulation of foreign exchange, on top of the introduction of gold coins.

Interest rates and statutory reserves for financial institutions were reviewed with effect from July 1, with the MPC increasing the bank policy rate from 80 percent to 200 percent per annum.

It also increased the Medium Term Accommodation interest rate from 50 percent to 100 percent, while the minimum deposit rate was increased for Zimbabwean dollar savings from 12.5 percent to 40 percent per annum.

The minimum rate for Zimbabwean dollar time deposits was also increased from 25 percent to 80 percent per annum.

The MPC, however, maintained the Statutory Reserve Requirements at the current levels of 10 percent for demand and call deposits and 2.5 percent for savings and time deposits.

“In order to enhance the circulation of foreign currency in the economy, as well as to support the willing-buyer willing-seller foreign exchange market, the MPC resolved to maintain the current export retention thresholds across the various sectors of the economy and that 25 percent of the unutilized export receipts shall be liquidated at the willing-buyer willing-seller exchange rate after 120 days from the date of receipt of the export proceeds,” Mangudya added.

The MPC had also noted the widespread use of forwarding pricing in foreign exchange by some economic agents and had therefore resolved that mechanisms to formalize forward pricing arrangements should be created.

This would be done through the development of a market for forwarding exchange rates, he said.

Copper prices have dropped to their lowest point since March 2021, while iron ore also faltered to a six-month low. But why?

Copper

Three-month copper slumped to $US8725.50 ($12,656) per tonne on the London Metal Exchange on Wednesday on fears of a global economic slowdown and continued COVID-induced uncertainty in China.

Standard Chartered said copper prices were linked to several ever-changing variables.

“Base metals remain pressured by a challenging demand outlook related to China’s COVID-19 lockdowns and to monetary policy tightening raising recession fears over the trade-off between inflation and growth,” the financial services company wrote in a note.

“We expect the base metals complex to continue to take its cues from macro developments, US dollar moves, external market moves and risk appetite trends.”

China’s strict zero-COVID policy has seen the country bound to regular lockdowns, hampering its economy and manufacturing sector in the process. Often perceived as China’s Achilles heel, Wood Mackenzie is projecting the country can only produce 16 per cent of the copper needed for it to reach carbon neutrality by 2060.

But if the factories aren’t open due to a lockdown, demand drops and the price flops with it.

Iron ore

According to Mysteel, the price for 62 per cent Australian iron ore fines dropped $US6.75 per dry metric tonne (dmt) on day to $US109.35 ($158.6)/dmt on Wednesday – its lowest point since December 2021.

Commonwealth Bank of Australia analyst Vivek Dhar told Reuters this price slump was directly linked to the situation in China.

“Markets are particularly worried that demand growth expectations linked to China’s pledge to boost infrastructure investment may not materialise, especially with China’s zero-COVID policy still in play,” he said.

China has also increased its run-of-mine iron ore output of late, with Mysteel suggesting it grew 14 per cent on month in May to reach 97.8 million tonnes. This followed a decline in April.

China has been eager to boost its domestic iron ore output and reduce its reliance on external sources. The Financial Times has reported the country is also moving to establish its own centralised iron ore buyer, which it hopes can secure lower prices through larger bulk purchases.

At the end of the day, there’s a key contributor to copper and iron ore’s pitfalls – and that’s China.

Source: Australian resources and investment

The first female mine manager at Australia’s largest producing gold mine – Newcrest Mining’s Cadia Valley Operations – has been named the ‘Exceptional Woman in NSW Mining for 2022’.

Health, Safety and Environment Manager at Cadia Valley, Lyndsay Potts, was announced the winner at the NSW Minerals Council’s Women in Mining Awards ceremony in Sydney.

The event was attended by more than 250 people including representatives from the mining industry, the community and many MPs from the Government and Opposition, including the NSW Minister for Women Bronnie Taylor, NSW Deputy Premier Paul Toole, Shadow Minister for Women Jodie Harrison and Shadow Minister for Natural Resources Tania Mihailuk.

Potts has forged an untrodden path in the resources sector, taking up postings and leadership positions where there had been no female predecessor.

Her leadership brought significant health and safety improvements and saw Cadia East achieve a record 221 days without any recordable injuries.

Potts has juggled an impressive career while raising three young children and has used her leadership role at Cadia to strongly advocate for women in mining, including in her role as Cadia’s inclusion leader.

“These awards are a fantastic way of highlighting the efforts and achievements of women in mining. These incredible role models show young women and girls that there is so much potential for them in this industry,” Taylor said.

“We need more women to aspire to leadership positions in the NSW mining industry, now more than ever as we rebuild our economy following the COVID-19 pandemic.”

Other winners included Hetherington’s Tamara Woods who was named ‘NSW Exceptional Young Woman in Mining’ at the Awards ceremony.

Woods has become a highly sought-after senior adviser in developing community consultation strategies for clients, assisting in navigating and enhancing negotiations between all interested parties for important mining and exploration projects.

Emily Jaques from Newcrest Mining’s Cadia Valley Operations received the ‘Technological Innovation Award’ for developing the world’s first application of Hydrofloat technology for the recovery of sulphides.

Michelle Wetherell from CMOC-Northparkes Mines was awarded the ‘Gender Diversity Champion Award’ for her work in overseeing the introduction of the company’s parental leave program which resulted in a 100 per cent return to work rate. She has championed more flexible work-life-balance for all employees, including overseeing the first job-share arrangement in an operational role.

The ‘Outstanding Trade, Operator or Technician Award’ was presented to Casey Martin from Alkane Resources–Tomingley Gold Operations, a pioneer for women seeking to forge a career in mining.

In her previous role at the CSA mine in Cobar, Casey was the first woman on-site to gain a blasting explosives user licence.

In 2021, she joined Tomingley Gold Operations as an underground bogger operator, again breaking new ground as the first woman underground at the operation.

The winners in the five award categories will be entered into the Women in Resources National Awards.

Two top police officers have been implicated in a US$500 000 gold ore loot at a mine in Chiweshe, Mashonaland Central province.

These allegations are contained in a letter of complaint dated June 22 addressed to Police Commissioner-General Godfrey Matanga and copied to the Zimbabwe Anti-Corruption Commission and the Judicial Service Commission.

In the letter, the complainant Lawrence Shereni through Takaindisa Law Chambers alleged that Chief Superintendent Enock Masimba and Superintendent Ophius Gadzikwa were illegally removing gold ore from Rossa 10 Mine in contravention of a court order barring operations at the site.

“The High Court under case No 3366/22 ordered all mining operations to be stopped at the estate … until an executor to the estate has been appointed,” the lawyers wrote.

“It is an order of the High Court that whatever is to happen at the deceased’s estate i.e. Rosa 10 Mine should be in consultation with our client Lawrence Shereni, who is also a child and a beneficiary to the estate Rosa 10 Mine.”

It is alleged that the senior police officers were conniving with one of the beneficiaries of the estate, Yolanda Mututuma, to loot gold contrary to the order of the High Court.

“We are, however, surprised that senior officers of the law failed to interpret simple court orders and went on to promote criminal activities at Rosa 10 Mine. The same officers, despite being in possession of High Court orders, have even barred our client from coming to the mine despite High Court orders which sanction him to be present and to be consulted in all mining activities occurring at Rosa 10 Mine,” they wrote.

“We wish to state that there is no doubt that your officers are engaging in corrupt practices as these tactics were meant to ensure that they loot the gold ore in cahoots with one
Mututuma.”

The lawyers said Gadzikwa and Masimba once threatened Shereni against opening a police report on the looting of the gold ore at the mine.

“Gadzikwa is deeply involved to the extent that he even directed the officer in charge at Chombira Police Station, one Muringai, not to get involved in any issues to do with Rosa 10 Mine … so that Superintendent Gadzikwa could further his criminal activities at Rosa 10 Mine with his accomplices in the looting of tonnes of gold ore without a gold ore removal permit,” the lawyers added.

Source: Newsday

Sperrgebiet Diamond Mining (SDM) this week announced its majority equity investment by Global Emerging Markets Group (GEM), the miner said.

The mining company highlighted this among other investments adding that the resources division of the GEM Group holds mining and energy assets in Zimbabwe.

“The vision is to expand its footprint in these two sectors in southern Africa and the larger continent in the longer term. Their current African investments include a majority shareholding in RioZim which is one of the biggest gold producers in Zimbabwe,” the miner said in a statement on Monday.

SDM reported that additional capital investment has been solicited by the shareholders, culminating in a share sale transaction between the Namibian shareholders being the founders, Lewcor Holdings and its minority partners, David Sheehama, MSF Commercials, and the GEM Group.

“The equity transaction was well received by the government of Namibia and received approval from the Namibian Competition Commission and the Minister of Mines and Energy. The deal was finalised on May 20, 2022, with GEM group subsidiary obtaining 78% of the shareholding and Namibian shareholders retaining 22% inclusive of an Employees Trust of 2%.”

GEM Group’s current African investments include a majority shareholding in RioZim which is one of the biggest gold producers in Zimbabwe, the miner said.

“RZM Murowa which is one of the world’s leading diamond producers is an affiliate of RioZim. The company also owns a base metal refinery and an energy business unit focused on generating green energy and minimising the carbon footprint of its mining operations,” the miner said, adding that the group wishes to expand this portion of its business with its newly acquired mining asset in Namibia.”

SDM is a Namibian company that owns a combination of four onshore and offshore diamond mining licences in the restricted diamond areas around Lüderitz. Its mainland-based operation is located at Elizabeth Bay 40 km south of Lüderitz.

SDM acquired the mining asset from Namdeb Diamond Corporation in October 2020 and invested in the project through an environmental clean-up campaign and the care and maintenance of the existing main processing plant to recommission it.

“In Q4 2022, the company is gearing up to start-up operations at the historic production levels under Namdeb. The immediate next aim is to double production by mid-2023 by implementing an infield pre-treatment facility as the second phase. The company is amidst an aggressive recruitment drive, aiming to employ up to 180 people by the end of 2022, with a further increase during phase two,” the miner said.

Source: Economist