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Zim stands to benefit from copper deposits

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Zim stands to benefit from copper deposits

Zimbabwe has a chance to benefit from its huge copper deposits as the popularity of clean energy future continues to rise with Electric Vehicles (EVs) considered the future in the transport sector.

Rudairo Mapuranga

According to James Hyerczyk a mineral commodity expert in the United States, despite strong demand, copper supply is significantly lagging. And it’s only going to get worse with analysts forecasting copper demand potentially rising 350 per cent by 2050.

According to the Chamber of Mines Zimbabwe Chief Executive Officer Mr Isaac Kwesu, the country is currently generating nearly US$100 million from copper with some junior mining firms investing in copper exploration. He said that the country has the potential to benefit from copper price turnover and can become one of the major copper producers in Africa.

“We are equally blessed with copper endowments and currently we have a significant amount of copper coming out as a byproduct of PGMs. They have a significant amount, almost US$50 million and can reach up to US$100 million value of copper. We also have copper projects in areas surrounding Mhangura which were sub-economic during the low-price era with the high upturn, some of these projects are more certain that they will become viable. There is some exploration we understand is currently taking place implying that we will also be a major copper producer in the near future,“ Kwesu said.

The transfer to electric vehicles will not be possible without tons of new sources of copper because large amounts of copper are needed to build just one EV. In one conventional gas-powered car, 18 to 49 pounds of copper are needed to build one car, depending on engine size. However, in just one EV, a whopping 183 pounds of copper is needed to build one electric engine! That’s 4 to 10 times MORE copper.

With the soaring demand for EVs rising in the next decade, copper demand is also expected to explode. EVs are expected to increase 14X by 2030 from the 1.8 million EVs on the road in 2010 to over 25 million EVs by 2030. That’s over 23 million new EVs in operation this means if Zimbabwe takes the chance to mine copper it will benefit significantly from these developments.

Unlike lithium, which focuses mainly on clean batteries, copper’s importance to the green revolution goes way beyond building EV engines. In fact, copper plays an integral part in protecting the Electric Grid to Secure the Nation as copper is needed in virtually all stages of electric infrastructure – generation, transportation, distribution, and consumption.

ZMF encourages legal operations as ZRP nets more illegal miners

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ZMF encourages legal operations as ZRP nets more illegal miners

The Zimbabwe Miners Federation (ZMF) has called on miners to formalize their operations by adhering to the dictates of the law to avoid a situation where work is constantly being disrupted by law enforcement agents.

Rudairo Mapuranga

According to ZMF President Ms Henrietta Rushwaya, the Federation has a zero-tolerance mantra of no to illegal mining.  She said that the organisation’s offices are open for everyone to come and get investment advice.

“As small-scale miners, we are saying it is a crime to mine illegally in the country. And we are saying zero tolerance to illegal mining. We should be seen as being associated with constructive and proper mining, constructive in the sense that our mining should be guided by principles as stated in the mines and minerals act.  People are actually advised and allowed to come to our ZMF offices to find out how best they can be linked with proper mining houses and how best they get tributes from other registered miners,” Rushwaya said.

Since January this year, the Zimbabwe Republic Police (ZRP) under the operation “No To Machete Gangs” aimed at restoring sanity in the ASM, the Police arrested close to 3000 people. Illegal Miners are mostly a target of criminals usually referred to as machete gangs who have been causing havoc in the ASM sector.

According to Police spokesperson Asst-Comm Paul Nyathi, the operation is ongoing and those that resist risk being arrested and face deterrent sentences as the police are in constant contact with the judiciary.

Machete-wielding criminals are notorious for pouncing on small-scale and artisanal miners stealing their gold or gold ore and smuggling processed gold to neighbouring countries like South Africa and Botswana through the country’s porous borders.

The police restored order in mining areas after taking the machete gangs head-on, arresting large numbers of people and thwarting a wave of violence that threatened to disturb gold mining and consequently deliveries to Fidelity Gold Refinery (FGR).

Most of those arrested were fined since there was no evidence they had committed other criminal offences.

Those on the wanted list were sent to court for prosecution, facing various offences.

With the unemployment rate soaring and successive droughts immensely affecting subsistence farming in rural Zimbabwe, young people are resorting to a more lucrative alternative, artisanal and small-scale mining (ASM).

Zimbabwe is said to have over 4,000 gold deposits, and the Parliament of Zimbabwe estimates that some 500,000 small-scale miners in the country support up to three million dependents.

BREAKING: Mines Bill nearly ready

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BREAKING: Mines Bill nearly ready

Edmond Mkaratigwa led Portfolio Committee on Mines and Mining Development might after a series of failures from previous Committees be the one to succeed in the implementation of the Mines and Minerals Amendment Bill.

Rudairo Mapuranga

Recently Mines and Mining Development Minister Hon Winston Chitando said that the work of drafting the Mines and Minerals Amendment Bill is now with the Attorney General’s Office, which is expected to conclude its work by month-end, bringing a possibility of the bill being tabled before Senate by the end of next month.

“The Mines and Minerals Amendment Bill is with the AG’s Office and we definitely expect that end of June, it would be done and then it will go to Cabinet,” Minister Chitando said.

The Bill was returned without approval by President Mnangagwa in 2018 after stakeholders expressed their concerns about the basic thrust of legal changes, and the consensus was that it needed to be redrafted to reflect the far more open and investor-friendly environment of the Second Republic.

The re-drafting of the bill did not prove to be heading in the right direction up until 2020 when Hon Mkaratigwa took over the chairmanship of the Mines and Mining Development Parliamentary Portfolio Committee.

According to Mkaratigwa, the Portfolio Committee took different initiatives to make sure that the bill is inclusive to avoid a situation where stakeholders’ concerns would not be taken into the drafting of the bill.

“From day one we sought to actually accelerate the drafting of the Mines and Minerals Amendment Bill, but bearing in mind of course that the stage that we were at, is what we refer to as the prebill stage. At that stage formally there is nothing that is expected from the parliament. The parliament process will kick in from the day that the Minister tables the bill in Parliament and according to the constitution we are then supposed to conduct public hearings thereafter as a Portfolio Committee. We are supposed to deliberate on public views and come up with our recommendations that the Minister will then have to factor in.

“In line with that, we had oral evidence sessions in Parliament whereby we called the Ministry and the institutions under the purview of the ministry and other stakeholders to try and understand where they were with the bill. This is at which stage, we realized that nothing was moving. We then decided to go the paradigmatic route by way of workshops which incorporated various stakeholders including the Ministry and that allowed a process that will actually make us relevant and not Altovise with the law in terms of following resolutions that will come out of a workshop that would cause us as a Portfolio Committee to get involved in the grafting of the bill.

“To that end as a Committee, we constituted a committee that was headed by Hon Davison Svuure to actually work closely with the grafting team from the Ministry of Mines as well as the Deputy Attorney General’s Office. At some stage, it became apparent that we needed to take these officers out of their busy office schedules in Harare and we booked them in a hotel outside Harare. We managed to achieve this complement of friends of the committee like ZELA who managed to meet some of the financial costs involved.

“This actually enabled the completion of the grafting and thereafter it began the prerogative of the Deputy Attorney General’s office to start decoding and crafting the graft bill into legal language so to speak. This process has taken a long time and we have been following up in between. We had other workshops just to buttress the same resolutions and come up with new resolutions because most of the resolutions were time-based and we realized in some instances that the time-lapse actually led to expiration and the effectiveness of the resolutions. And I must say that where we are today the bill stands complete and the Deputy Attorney General’s office has actually reverted back to the Ministry of Mines to say now they can maybe finalize attendance to the bill and be able to take it before the Cabinet Committee on legislation which they had done before but they were issues raised by the Cabinet Committee and which led to referring back the bill the Ministry,” Mkaratigwa said.

When President Mnangagwa referred back to the bill, the Chamber of Mines and other parties were reportedly unhappy with some sections of the Bill, including the definition of strategic minerals, which was thought to be “too broad” that it covered nearly all minerals.

There were concerns too, over provisions that seek to transfer administrative aspects of the pegging of claims from the principal Act to subsidiary legislation. Many stakeholders want the 1961 Mines and Minerals Act to be amended, arguing that it was no longer in sync with what is obtaining in the country today.

The 61-year-old law criminalises possession of gold, therefore making the work of small-scale miners illegal. Now, the Bill seeks to formalise the work of artisanal and small-scale gold miners, who have become critical in terms of gold mining and deliveries to Fidelity Printers and Refiners. Other progressive provisions in the Bill cover the protection of the environment, sustainable development and the establishment of the Safety, Health and Rehabilitation Fund.

Conglomerate admits to paying US$28 million in bribes

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Conglomerate admits to paying US$28 million in bribes

A British subsidiary of Glencore (LON: GLEN) formally pleaded guilty on Tuesday to the seven charges of bribery brought against the mining and commodities trader by the UK Serious Fraud Office (SFO), which relate to the firm’s oil operations in Africa.

Glencore Energy confessed to paying $28 million in bribes to secure preferential access to oil, including increased cargoes, valuable grades of oil and preferable dates of delivery in Cameroon, Equatorial Guinea, Ivory Coast, Nigeria and South Sudan.

The company, which also admitted to generating illicit profits between 2011 and 2016, will be sentenced on November 2 and 3, the SFO said.

The successful prosecution is the SFO’s third corporate conviction under the 2010 Bribery Act and makes Glencore the first company to admit to paying off an institution or person under those rules.

The anti-corruption office is still mulling prosecutions against individuals as it, so far, has not targeted any people at the company, triggering criticism.

Glencore has been the subject of multiple investigations in the UK, the United States and Brazil over the past four years for alleged money laundering and corruption.

The company announced in February it had set aside $1.5 billion to cover the costs of settlements it hoped to reach this year.

The Swiss firm in May tackled international bribery charges in the US, pleading guilty to violating the Foreign Corrupt Practices Act. Glencore agreed to pay $1.1 billion to resolve the case spanning seven countries. It also accepted separate fines for manipulating oil prices at US shipping ports.

It further agreed to pay more than $39.5 million under a resolution signed with the Brazilian Federal Prosecutor’s Office (MPF) in connection with its bribery investigation.

Glencore, which is also subject to investigations from Swiss and Dutch authorities, has said the timing of those probes remains uncertain but would expect any possible resolution to avoid duplicate penalties for the same conduct.

Implats expects limited impact from Rustenburg strike

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Implats expects limited impact from Rustenburg strike

A strike by contract workers at ZIMPLATS’ parent company, Impala Platinum’s Rustenburg operations in South Africa involved less than 8% of the mine’s workforce and was limited to two of its nine shafts, the company said on Monday.

The National Union of Metalworkers of South Africa (NUMSA) said its members working for three contracting companies engaged by Impala at Rustenburg had begun an indefinite strike on Monday over low pay.

“These contractors are exploiting workers by paying them a fraction of what their permanent colleagues earn for doing exactly the same job. These contract companies grossly exploit workers and Impala Platinum has shamefully washed its hands of the situation,” NUMSA said in a statement.

The three mining contractors were not immediately available to comment.

Impala spokesperson Johan Theron said the strike’s impact was limited because NUMSA has only 3,000 members out of the mine’s 45,000-strong workforce.

“It will only impact production at two of our small, high-cost, end-of-life shafts where the contractors do the mining,” Theron said.

The Rustenburg mine accounted for nearly half of Impala’s output of 2.93 million ounces of platinum group metals in its 2021 financial year.

Impala’s Johannesburg-listed shares were down a little more than 3% at 0926 GMT.

Mining.com

Is the 40 tonnes gold delivery achievable?

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Is the 40 tonnes gold delivery achievable?

The country’s sole gold buyer and exporter Fidelity Gold Refinery (FGR) is targeting to buy 40 tonnes of gold this year, with experts optimistic that if the current incentives and timeous payments for gold deliveries are maintained a possibility to surpass the target remains in eyesight.

Rudairo Mapuranga

As the government is targeting to have a mining industry worth US$12bn by 2023 improved gold deliveries to FGR become significant. The Minister of Mines and Mining Development Hon Winston Chitando is confident that the target of 40 tonnes is achievable.

Minister Chitando said the government was optimistic gold output will reach 60 tonnes in 2022 and exceed 100 tonnes in 2023 following the mobilisation programme. The gold mobilisation programme, which seeks to enforce compliance by gold miners and buyers, increases accountability by stakeholders with the main goal of boosting gold deposits to FGR has fingerprints of the government all over in the achievement of the gold target.

“We are coming from a situation where we have a 2030 vision of Zimbabwe being a middle-income economy. We have at the same time the mining industry targeting to achieve US$12 billion and we are definite that we will achieve it by the end of next year. Specifically, today we are talking about gold and specifically gold mobilization.

“Taking a step back, last year we did well, 32 tonnes was good but it does not represent the full potential which the industry can deliver. This year as the Ministry responsible for Mines we are targeting gold deliveries of up to 60 tonnes,” Chitando said.

According to Chamber of Mines CEO Mr Isaac Kwesu, the target by FGR to mop gold of about 40 tonnes can be achieved due to the growing number of projects currently being developed. Kwesu also said that the government through the Ministry of Mines’ quest to mobilise gold and encourage miners to comply with the dictates of the law could also play a part in increasing deliveries.

“With the efforts to mobilise what is produced to be marketed through formal markets I think the target will be exceeded. There are a lot of projects underway, new projects as well as existing mines trying to increase capacity utilization. All this signals an increase in output for gold, so we are very optimistic,” Kwesu said.

Why are deliveries and production declining from the 2018 period?

In 2018, fidelity received a record 33.3 tonnes of gold deliveries with the United States Geological Survey reporting that a total of 35.1 tonnes was produced in the country the same year.

Experts have pointed to the rise in gold production from the period 2009-18 to currency stability coupled with 100 per cent forex retention which gave the miner increasing confidence to invest in the gold sector with a decline from 2018 attributed to policy inconsistency as well as poor foreign currency retention and rising inflation of the local currency.

Although gold is Zimbabwe’s top export, exports of yellow metal fell from US$1.64 billion in 2019 to US$981 million in 2020. The RBZ attributed the overall poor gold production in 2020 to COVID-19 lockdowns, suspected smuggling, fuel shortages, and antiquated technology.

Gold production and deliveries decline has been necessitated by the fact that Fidelity pays less than buyers in neighbouring South Africa and sometimes pays late. The partial payment in US dollar denominations and partially in Zimbabwe dollars determined by the official exchange rate is a catalyst to poor production and suspected smuggling.

The 60/40 forex retention is designed to save the central bank foreign exchange, something it has been perennially short of. But in the open market, the Zimbabwe dollar is worth less than half of its official value, causing huge losses to the miner.

The discrepancy means Fidelity pays substantially less for gold than international buyers, who tend to pay all in US dollars. The black market, where sellers can get straight US dollar payments immediately, therefore becomes an attractive option.

Before May 2020, large-scale miners were receiving 55 per cent of their payments in US dollars, which later increased to 70 per cent while small-scale miners were receiving 70 per cent later increased to 100 per cent spot but largely below international price. For large-scale producers, foreign currency is now back to 60 per cent in US dollars. The Chamber of Mines of Zimbabwe (COMZ), which is made up of mining companies and other industry bodies, has decried delays in payments from Fidelity saying they have been eroding producers’ profits.

According to Blanket Mine General Manager Mr Caxton Mangezi during Mines and Mining Development Parliamentary Portfolio Committee visit to the mine in November, the current foreign currency retention threshold for large-scale gold miners which is standing at 60 per cent is not sustainable for the growth and development of the mining sector and might lead miners to a possible shutdown of operations.

He said operational costs in local currency are increasing due to high inflation on the parallel market and the failure of the central bank to provide all suppliers with the required foreign currency at the auction rate. Mangezi said the retention was a form of the tax itself which makes it difficult for operations as costs are always rising due to inflation.

“One of the challenges that we are facing as a mine has to do with the 60/40 per cent gold retention. You could find that some miners could operate viably on a 60:40 basis but some of us could need 100 per cent forex retention due to the extent of our requirements. What we hope the Government will notice is that we comply with tax payments and as such once we also retain 100 per cent forex, that means we are also able to pay all our taxes in foreign currency,” he said at the time.

Steps by Fidelity to increase production and deliveries

Fidelity announced in mid-2021 that it will combat these underlying issues by allowing large-scale gold mining companies to export a portion of their bullion directly. It expects this measure to increase production by allowing companies to secure funding in the form of gold loans. The gold buying and exporting company hopes that direct payments will help prevent the illegal export of gold, estimated at US$1.2 billion per year by small-scale miners who extract most of the country’s gold.

According to FGR Acting General Manager Peter Magaramombe achieving the 100 tonnes of gold production and the delivery target was possible but all stakeholders in the gold industry were supposed to work together to ensure that gold production increases at the same time deliveries to Fidelity increase.

He said that plans were in place for Fidelity to increase its presence in all active regions (more gold buying centres).

Magaramombe said FGR is in the process of finalising the mechanism that will result in purchasing 5 grams and below from the artisanal and small-scale miners as a measure to mop all the gold mined by the ASM which sometimes ends up in the hands of smugglers.

The upward price review (100% USD cash to small-scale miners) and reduction of royalty to 1 per cent for small-scale miners and artisanal miners have played a major role in boosting gold deliveries from the two groups.

FGR, according to Magaramombe, has already identified areas where gold buying centres will be established in the coming year to enhance accessibility and convenience to artisanal and small-scale mining groups.

Conclusion

There is a need by the government through the Ministry of Finance and Economic development to see through the plights of gold producers as this might derail or upset the achievement of the 40 tonnes gold target.

The formal market must be competitive for the government to achieve the targets projected.

Chamber of Mines CEO said that if the official markets continue to be disadvantageous to the miner there is a possibility of the miners downing tools or selling to informal markets.

“Voluntary compliance is an issue of market forces that ensures that miners are paid timeously at a fair price. And naturally, you have no incentive to participate in illegal markets when the formal market is competitive.

“Remember, we account for gold deliveries through Fidelity but some of the output that is being produced is not being delivered to fidelity. So if all output found its way to the formal market that would be a quick win,” Kwesu said.

Former Kuvimba CEO, David Brown dies

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Former Kuvimba CEO, David Brown dies

David Brown, a former Kuvimba Mining House CEO, current chairman of Northam Platinum and former Impala Platinum CEO, died of a heart attack this past Sunday. He was 59.

Brown was additionally the chairman of Northam Platinum and lead unbiased director of Vodacom Group in South Africa.

“I am shocked and saddened at the sudden passing of David, a stalwart of the Southern African mining industry. He was not only Chairman of Northam’s board but a friend and colleague. He worked at board level in the sector for more than 23 years. My fellow board members and executive team join me in extending our sincerest sympathy to his family and loved ones, friends and colleagues. David instinctively knew that people are at the centre of all things mining.  He will be sorely missed,” Paul Dunne, CEO, Northam, said.

“It’s with disappointment that Vodacom advises shareholders of the premature passing of David Brown,” the telecommunications firm stated in an announcement on Monday.

Brown died from a coronary heart assault, stated three individuals acquainted with the state of affairs, asking to not be identified.

His death comes as Northam Platinum is locked in a battle with rival Impala Platinum to take over Royal Bafokeng Platinum.

The mining veteran served as Chief finance officer and later CEO at Impala from 1999 to 2012, overseeing property in each South Africa and Zimbabwe. He has additionally led MC Mining, a coal producer.

He resigned as CEO at Kuvimba Mining however stayed on as a director at its Bindura Nickel Corp.

“It has always been my intention to transition from executive roles to non-executive roles. When I joined it was always understood that this was the process I wanted to follow,” Brown said at the time.

Brown also told a South African mining publication that Zimbabwe held great potential, but it had been frustrating as “people were not listening when they should”.

Khumo Shuenyane will take over the function of lead director at Vodacom, the corporate stated.

Zim satellite launch, an exploration learning curve

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Zim satellite launch, an exploration learning curve

Zimbabwe is set to launch its first satellite into orbit next month in a major milestone expected to enhance mineral exploration as the nation hopes that the mining industry has a major responsibility in economic revival.

Rudairo Mapuranga

Through the National Development Strategy_1 (NDS-1) the mining sector is expected to become a US$12 billion annual earner by 2023 from annual revenue of less than US$3 billion in 2017. This, therefore, makes mineral exploration of greater importance in the establishment of world-class mines.

According to the chairperson of the Parliamentary Portfolio Committee on Mines and Mining Development Hon Edmond Mkaratigwa, the launching of Zimbabwe’s first satellite will come as a learning curve for the government to invest in modern exploration technologies.

“I am aware that the satellite launch is due as part of the government’s development strategy. I am further aware of its capabilities, which is part of the reasons for the decision to have it launched and incorporated into the national development strategy. That is part of the key government deliverables and enablers and we anticipate that we will make maximum use of the technologies. Exploration requires the right technologies and as we are just launching our first, it’s also a learning curve and we should remain realistic so as to continue improving ourselves and our growth,” Mkaratigwa said.

The launching of the country’s first satellite into orbit is also expected to enhance monitoring of environmental hazards and droughts, mapping human settlements and disease outbreaks, among many other capabilities.

Additionally, these developments are part of the country’s plan to catch up with other nations and become an upper-middle-class economy by 2030. Moreso, President Mnangagwa pledged more support to the newly commissioned agency to see the growth of a technology innovation environment that supports the development and use of new technologies.

“Congratulations and well done for this first national space project which lays the foundation for space and scientific programmes. This is indeed a major step in enhancing the deployment of earth observation technologies in supporting the National Development Strategy,” Mnangagwa, said at the launch of the Zimbabwe Science Park and commissioning of the Zimbabwe National Geospatial and Space Agency (ZNGSA) on 13th September in 2021.

Omnia declares R1.4bn dividend, runs a loss in Zim

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Omnia declares R1.4bn dividend, runs a loss in Zim

JSE-listed chemicals manufacturing group Omnia Holdings experienced favourable market conditions in the agriculture and mining sectors in the financial year ended March 31, including high commodity prices, which helped boost its operating profit by 123% year-on-year to R1.7-billion.

The board declared a total shareholder distribution of R1.4-billion, comprising an ordinary dividend of 275c apiece and a special dividend of 525c apiece.

The company says its latest results reflect an exceptional operating performance, which was enhanced by diligent strategic execution.

“Our renewed and integrated operating model, manufacturing excellence and optimised supply chain enabled increased agility and responsiveness to achieve increased sales volumes, while disciplined cost and working capital management further supported cash generation and enhanced profitability in a challenging macroeconomic environment,” notes CEO Seelan Gobalsamy.

Earnings before interest, taxes, depreciation and amortisation from continuing operations and excluding Zimbabwe increased by 57% year-on-year to R2.5-billion.

Headline earnings a share came to 672c, which was an 86% increase compared with the prior financial year ended March 31, 2021.

The group explains that hyperinflation remains an issue in Zimbabwe, with seasonal fluctuations in inventory, creditors and debtors impacting the monetary gain on hyperinflation. A net impact of hyperinflation on foreign exchange losses of R41-million was recognised in the financial year.

The company’s operations in Zimbabwe experienced an operating loss of R129 million in the year under review, compared with a profit of R364 million reported in the prior fiscal year.

In the year under review, Omnia divested from Umongo Petroleum for a cash consideration of R1 billion, which, together with improved operating cash generation across the group, resulted in a cash position of R2.4-billion at the end of the period.

However, strong cash generation was slightly offset by net working capital from continuing operations, which increased by 18% to R3.3-billion in the reporting year.

The company continues to manage its working capital cycle and introducing supply chain finance.

From a growth perspective, CFO Stephan Serfontein tells a South African publication Engineering News & Mining Weekly that Omnia is focused on trialling new biological and organic products for registration in South Africa and globally, as well as developing AgTech innovations and alternative low carbon dioxide emulsion technology. He mentions that the company is growing its agricultural biological products footprint in Europe, Asia and Australia.

On the mining side, Omnia remains focused on growing in the Asian Pacific, North American and African markets, particularly in Indonesia and Canada.

The company’s 5 MW solar farm, which is being constructed at a plant in Sasolburg, is due for completion towards the end of June.

This while Omnia’s civil construction for a reverse osmosis plant has started and will be commissioned by the end of June.

OPERATIONS

Omnia’s Agriculture segment delivered a 44% increase in net revenue from continuing operations, excluding Zimbabwe, to R11.2-billion, and more than doubled its operating profit to R1.2-billion.

The company explains that favourable planting conditions and higher average agriculture commodity prices led to increased sales volumes, while optimised procurement and production efficiencies supported the robust performance.

Omnia adds that logistics remain a challenge globally owing to reduced availability of shipping capacity.

Demand for biostimulants in Australia was stable and customer demand was met despite logistics constraints. Sales into new territories in Brazil boosted revenues and margin growth from that region, while the Southern African Community Development (SADC) region benefitted from a focused market approach and a broader offering.

Distribution and administration costs, as well as a fixed price contract in Zambia, did, however, place pressure on margins in the international agriculture business.

Looking ahead, customers are expected to adopt a cautious approach to early purchasing commitments for the coming season, which, together with higher commodity prices, may require increased stock levels.

Omnia explains that these demand dynamics will be carefully monitored and production plans will be appropriately aligned to respond to changing customer needs.

Consolidation and growth initiatives that have gained momentum will be prioritised across the SADC region.

Demand for biological products and technology solutions has been stimulated by technological advancements and adoption in the agriculture sector.

Omnia is looking to capitalise on these developments and remains focused on expanding its global biostimulant footprint through new distribution channels and strategic international partnerships.

The group’s investments in increasing humates production capacity will service this demand.

Meanwhile, the mining segment delivered a 29% increase in net revenue to R6.7-billion, supported by an increase in sales volumes in South Africa and the rest of Africa and a higher ammonia price environment.

A renewed focus on operating efficiencies drove an operating profit increase of 79% year-on-year to R514-million.

Mining in South Africa, in particular, delivered a robust performance, despite a highly competitive environment and lower mining production owing to inclement weather for most of the second half of the year.

Operational efficiencies, market expansion in the surface and underground segments and gains from large customer contracts underpinned the solid performance.

Mining production in Indonesia and the SADC was also disrupted by inclement weather.

Notwithstanding the volatile macro-environment, compounded by the impact of the Russia/Ukraine conflict and global supply chain challenges, the international division ensured that security of supply was maintained.

Further, Omnia notes that the majority of a large customer contract was retained in Zambia which contributed to the increase in volumes while sustainable localised business partnership models were implemented in the rest of the SADC and a three-year contract extension was secured with the division’s largest customer in West Africa.

In Canada, trials of technology and explosives systems in the underground market were successfully run and the transitioning for a major surface contract was starting to begin operations in the new financial year.

Protea Mining Chemicals’ strong performance was supported by robust growth in the battery metals and platinum group metal markets, which reinforced demand for its specialised metallurgical chemicals and services.

Increased sales of high-performance products and solutions in export markets, demonstrated sound supply chain management and security of supply for customers.

“The mining segment remains agile and well-positioned to continue overcoming challenges to deliver its diverse and reliable product and service offering to its customers.

“Current higher metal commodity prices bode well for mining production, globally, while some countries in SADC have seen a revitalisation of their mining activities resulting in strong demand,” the company states.

Further, net revenue from continuing operations in the Chemicals segment increased by 2% year-on-year to R3 billion and operating profit from continuing operations increased by 41% to R142 million.

Notwithstanding Covid-19-related supply chain challenges, shortages in chemicals in the second half and higher energy costs, Protea Chemicals delivered a resilient performance.

Omnia’s repositioning of the Chemicals segment in the first half of the year to focus on key strategic sectors and customer service, saw the business deliver a substantially improved performance. This was underpinned by the strength of Protea Chemicals’ supply chain capabilities, distribution footprint and ongoing transition to speciality chemicals and associated services.

Certain sectors within the business segment were affected more than others by Covid-19. The company explains that demand was maintained in the Hygiene and Health Care, Food and Pharma, and the Building and Construction sectors, while the profitability of the Agri Science business improved owing to robust demand.

The Life Science sector increased volume in the Food and Beverage subsector and a strong performance was delivered by the Watercare Solutions sector owing to increased demand for coagulants on the back of the heavy rains across South Africa.

Omnia says higher margins were supported by an improved speciality-functional chemical product mix and disciplined cost containment, which improved operational efficiencies.

After its restructure and repositioning, Protea Chemicals is now focused on speciality chemical products and solutions to deliver value for its customers across key sectors, which combined with a reliable and cost-effective supply chain, is anticipated to unlock growth.

The development of green, environment-friendly and alternative chemistries and technologies across key sectors is gaining momentum, while collaboration with partners in the hydrogen fuel cell market in the region is ongoing.

The company concludes that it will continue taking advantage of value-accretive growth opportunities, navigating headwinds and honouring commitments to stakeholders.

CHAIRPERSON INCOMING

Omnia has appointed Tina Eboka as chairperson-designate, who will succeed Ralph Havensteineffectively on September 21.

Havenstein will be retiring after serving for three years as chairperson of the group.

Eboka has served as an independent non-executive director of Omnia for more than six years. Her experience extends across both the private and public sectors, having served in various executive and non-executive roles in many industries.

 

Mnangagwa urges Bikita Minerals to Prioritise ESG, Value addition

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Mnangagwa urges Bikita Minerals to Prioritise ESG, Value addition

As Bikita Minerals eyes becoming a global kingpin in the production of Lithium spodumene, President Emmerson Mnangagwa beseeched the company to prioritize value addition, beneficiation and investing in Environment, Social and Governance (ESG) for the country to benefit significantly from the lithium at the mine.

Rudairo Mapuranga

China’s Sinomine Resource Group, the owners of Bikita Minerals who early this year acquired the project, will invest US$200 million to build a plant and expand its existing mining operations as they seek to play a significant role in the achievement of the US$0.5 billion lithium industry by 2023.

Speaking at the groundbreaking Ceremony of Bikita Minerals Spodumene project last Friday, the President hinted that the company has the potential to emerge as a key player in the rise and popularity of the battery manufacturing industry. However, he also expressed concern that the company should not benefit alone from global achievement but the community in which it is located should also benefit.

He said that his government has implored the company, to prioritize the Bikita community as it mines in its environment and urged the company to take its workers and environment with great care.

“We have told them that under the second Republic we would want to see that lithium is essential to the growth and development of Zimbabwe’s economy. They told us that after two years the company will be generating US$500 million annually. We will come back here after two years to see what they could have done for the people.

“Companies are challenged to listen to their host communities and address their concerns. Communities must equally appreciate that investors are indispensable partners to the realisation of sustainable development and a higher quality of life for all.

“Mining companies must be good corporate responsible citizens, with Corporate Social, Environmental Social, and Governance aspects being critical components of their entities. Tangible socio-economic advantages and benefits should accrue to societies in which they operate. In undertaking their ventures, companies are challenged to listen to their host communities and address their concerns. Communities must on the other hand, equally appreciate that investors are indispensable partners in the realisation of sustainable development and a higher quality of life,

“For greater harmony and unity of purpose, mechanisms should be developed to improve transparency and accountability so that aspects of the project are understood, while grievances are heard and addressed. “The safety and treatment of employees is also a key component. Mining companies must strive to be model employers by treating and remunerating their workers appropriately,” Mnangagwa said.

In line with the Government’s minerals beneficiation thrust under which the Second Republic has given companies a minimum of two years to add value to minerals to ensure that Zimbabwe exports processed products and earns more from its rich mineral resources. President Mnangagwa said after making profits, mining companies should implement corporate social responsibility programmes toward creating a lasting legacy in their host communities.

“It is most fortunate that Zimbabwe boasts one of the world’s largest hard rock lithium deposits. As such our country is well-positioned to become a centre for research, development, exploitation and manufacturing of green energy and lithium-based solutions in Africa,

“The Bikita Minerals’ Spodumene Project is timely as spodumene is the main lithium-bearing mineral currently being explored and processed around the globe, due to its high lithium content and extensive occurrence

“It is my expectation that the development of the lithium mining sector in Zimbabwe will lead to the growth of value chain linkages in the manufacturing industry.

“I exhort mining companies across the country, including Sinomine Resource Group, to create synergies with the innovation hubs and industrial parks at our institutions of higher learning,” President Mnangagwa said.

According to Mnangagwa Bikita Minerals presents far-reaching possibilities as lithium and its compounds have several industrial applications that include use in the manufacture of heat-resistant glass and ceramics, lithium grease lubricants, flux additives for iron, steel and aluminium production, air treatment, as well as lithium batteries, among others.

“I, therefore, urge players in the lithium mining sub-sector to strategically position their business models informed by the fact that lithium demand will continue rising, particularly premised on the growing demand for electric vehicles. To date, this surge in demand has resulted in lithium prices skyrocketing over the past year thereby offering scope for increased investment in the sector,”

“It is my expectation that the development of the lithium mining sector in Zimbabwe will lead to the growth of value chain linkages in the manufacturing industry. This should translate into expanded local production of renewable energy technologies, ceramics, glass, lubricants and polymers, among other products. The investment by Sinomine Resource Group should, thus, not only end in the production of spodumene but should graduate to the production of battery-grade lithium and ultimately lithium-ion battery manufacturing entities,” Mnangagwa concluded.

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