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Aluminum price jumps again as Guinea coup adds to supply worries

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Aluminum climbed to the highest in more than a decade after a coup in Guinea fueled concerns over raw material supplies, with futures holding gains even after the head of the junta urged miners to keep operations running.

Metal prices extended gains and producer shares surged — industry leader Aluminum Corp. of China, or Chalco, jumped as much as 10%. Guinea is a major supplier of bauxite, the feedstock needed to make aluminum, and accounts for more than half of the imports by China.

A unit of the military seized power Sunday and suspended the constitution, with head of special forces, Colonel Mamady Doumbouya, urging the army to back him. While the unrest raises the possibility of disruption, so far there’s no sign that shipments or mines have been affected.

Aluminum, which is used in everything from car parts to drinks cans and home appliances, had already climbed about 38% this year in London before the coup, as consumer demand and economic activity rebound. At the same time, smelters in China have struggled to maintain output during a seasonal power crunch and as Beijing seeks to rein in the country’s carbon emissions.

Aluminum held gains Monday even after Doumbouya said that maritime borders remain open to export mining products and a curfew on mining activities has been lifted. The junta is urging mining companies to keep operating, he said in a speech. Earlier, Chalco, which has a bauxite project in Guinea, said all of its operations are normal and it has ample bauxite inventories at its plants in China.

[Click here for interactive aluminum price chart]

While United Co. Rusal founder Oleg Deripaska warned that the market “can be seriously shaken” by the situation, traders were still waiting on Monday for further clues about potential supply cuts.

The bauxite market has been in surplus for years, and any disruption would need to be severe to alter that dynamic, according to Michael Widmer, head of metals research at Bank of America Merrill Lynch.

“I’m bullish aluminum, but for different reasons,” Widmer said by phone from London. “That said, if you do have issues in a country that supplies 20% of bauxite to the global market, then clearly that will be a problem.”Play Video

Prices on the London Metal Exchange rose as much as 2% to $2,782 a ton, the highest since May 2011, before closing at $2,773. In China, futures jumped as much as 3.4% to the highest since 2006, before paring gains. Other industrial metals were mixed on the LME, with copper and zinc up and nickel, lead and tin all down.

“Investors are quite concerned given China buys a big chunk of bauxite from Guinea,” though there haven’t been reports of disruptions yet and the extent of any impact will depend on how the situation evolves, said Xiong Hui, chief aluminum analyst with Beijing Antaike Information Development Co.

Investors are also looking at ongoing production cuts in China’s Guangxi province, which is further tightening the market, Hui said.

The energy-intensive aluminum industry has come under increased scrutiny as part of Beijing’s pollution crackdown. China produces around 60% of the world’s total, with concerns around output prompting some of its largest smelters to pledge to ensure supply, and metal to be released from state reserves to ease tightness. The country has become increasingly reliant on imports, a rare development that’s drained global supplies of the usually abundant metal.

Bloomberg

Matobo miners shortchange council

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THE Matobo Rural District Council has bemoaned low revenue inflows amid concerns that mining companies operating in the district were not paying enough levies.

Council chief executive officer Elvis Sibanda said mines hardly paid levies to the local authority.

“We have a very serious problem with the mining companies in the district. The mines hardly pay their levies to council. They are quick to pay to the central government but not to us,” Sibanda said.

Sibanda said the other problem in the district was the issue of mine owners changing very often.

“You discover that there are some miners in the districts and they are not registered and that alone becomes a challenge. The other issue is that someone owns a mine and the next day that same mine has been taken over by someone else,” Sibanda said.

“In terms of development, we are still having a challenge with mines.”

Sibanda also complained over the issue of land degradation by illegal miners.

“On the ground it is visible there is no reclamation of the ground. Most of these miners are illegal miners and we all know how they attend to the environment,” he said.

Sibanda could not be drawn into revealing the total revenue debt owed by the mining sector to the council.

Recently, villagers in Matobo district blocked a mining company, Mazinahue Syndicate, from mining in the area, fearing that they would be evicted from their ancestral lands.

Most communities located near mines have been crying foul of not benefiting from the mining activities in their communities.

 

 

 

NewsDay

Ngozi Mine smoke chokes Byo suburb

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THICK plumes of smoke billowing from a sprawling Bulawayo City Council (BCC) landfill site popularly known as Ngozi Mine in Richmond suburb are a daily sight.

The hazardous smoke is now encroaching the nearby Cowdray suburb resulting in the choking smoke wafting into the houses thereby putting the lives of residents in danger.

The residents have since petitioned BCC to address the landfill air pollution which they say is affecting them.

Recent studies have found that air pollution is linked to childhood cancers and cognitive impairment in both children and adults.

According to the World Health Organisation (WHO), up to 14 percent of all children aged five to 18 have asthma and every year, more than 500 000 children younger than five years die from respiratory diseases linked to air pollution.

It may also affect foetal brain growth and prolonged exposure to air pollution can also lead to heart and lung-related illnesses.

Richmond suburb landfill site popularly known as Ngozi Mine emits smoke that is affecting Cowdray Park suburb residents in Bulawayo.

The Cowdray Park residents said due to the smoke from the landfill, they are developing respiratory problems.

This comes as the Meteorological Service Department also warned that air pollution is on the increase during this time of the year and could affect members of the public with asthma, hay fever among other respiratory conditions.

A Chronicle news crew visited the suburb and residents appealed to council to urgently address the problem.

The news crew also observed the thick smoke from the landfill that the residents are complaining about.

Ms Eliza Ndlovu said she often experiences challenges in breathing as a result of the air pollution.

“We are now forced to go to bed wearing masks to prevent inhaling the polluted air. When they start burning you feel like you are being suffocated by the smoke. I will be continuously coughing and this triggers asthma attacks. I’m not the only one complaining about this problem,” said Ms Ndlovu.

She said residents do not even know what is being burnt at the landfill and they suspect that even dangerous chemicals are being dumped there.

Another resident, Mr Simbarashe Nyoni said he has lived in Cowdray Park for about 20 years and the pollution is worsening by each passing year.

He said when the scavengers start burning waste at the landfill it does not only affect their breathing but their eyes become itchy as well.

“The stuff is burnt almost every day. Some days are better but when its serious you will definitely feel like you are choking. We don’t know what needs to be done but something has to be done as soon as possible. This will have a long-term impact on our lives,” he said.

The Chronicle news crew also visited the landfill and could not stay even for five minutes on site due to the choking smoke emanating from the dumpsite.

Cde Kidwell Mujuru
The news crew however, observed that there were some scavengers at the site. They said they pick up plastics to sell to recycling companies and the smoke was also affecting them.
The crew also observed that there were a lot of children of school going age who were also scavenging for waste, some of them barefooted.

Cowdray Park Councillor Cde Kidwell Mujuru said the air pollution issue has seen residents petitioning council to address the problem.

“Residents in my ward are really concerned about the air pollution that is coming from Ngozi Mine landfill. For the past three months, the pollution has worsened. There are some scavengers who burn waste in search of scrap metal.

Some residents have been rushed to hospital after asthmatic attacks triggered by the smoke,” said Cde Mujuru. He said he has reported this to council which at times send workers to put out the fires.

Chronicle is in possession of the petition that residents submitted.

“We the residents of Cowdray Park in general and particularly the residents of DRC Section B are deeply concerned about Ngozi Mine looming health disaster caused by continuous and unwarranted burning at the dump site. We have observed for a long time, clouds of
chemically polluted smoke rising from the dumpsite polluting the air that we breathe as residents of Cowdray Park, particularly Section B because of our proximity,” read part of the petition.

“Some of the smoke filters into our houses and chokes us during our sleep at night. This is very unhealthy to us adults, children and the environment. This has immediate and longterm effects on our health.”

The residents demanded that council should come up with a clear road map and provide them with feedback on how it is going to address the challenge.

The country’s environmental watchdog has also raised a red flag over the air pollution at
Richmond Landfill site.

Environmental Management Authority (Ema) Bulawayo provincial manager Mrs Sithembisiwe Ndlovu said the authority engaged council to address the problem.

“We are dealing with the landfill issue. We know there is air pollution that is happening there. We have engaged the council to come up with lasting solution to the problem. But in terms of health impact, I will leave that to health experts,” said Mrs Ndlovu.

BCC admitted that it was having challenges addressing the air pollution at the landfill and has employed a multi-stakeholder approach in a bid to address growing environmental problem BCC corporate communications manager Mrs Nesisa Mpofu said council is trying
to cover up the fire using gravel and also engage informal waste pickers as they are the ones who cause the fires.

“Council has engaged its regulatory partners such as Ema and the Zimbabwe Republic Police on the best way to prevent such fires,” said Mrs Mpofu. –

 

 

The Chronicle

2 die, one injured in Insiza mineshaft collapse

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TWO people died and another one was critically injured after a mineshaft collapsed at Stembok Mine in Insiza in Matabeleland South province last Wednesday.

Acting provincial police spokesperson Sergeant Stanford Mguni confirmed the incident.

“The accident occurred at 7pm at the Stembok Mine in Insiza block Filabusi. It is a registered mine. A team of six mine workers were on duty and three of them remained above the ground while three went underground in a 12-metre deep shaft,” Mguni said.

Mguni said while the workmates were trying to rescue the one who was half buried, the mine shaft collapsed again burying the two miners and they could not be retrieved.

“They went to report to the police who came and assisted to retrieve their bodies,” he said.

Mguni urged miners to practise safe mining methods to avoid accidents.

“Through campaigns, we have been calling on miners to practise safe mining methods to avoid such fatalities. Miners should also often assess their shafts to make sure that they are safe to work on,” he said.

“They can even hire safety experts from the Mines ministry to help them assess and they should also buy safety wear when getting underground.”

Cases of artisanal miners dying in mineshafts have been increasing with rescue teams usually failing to retrieve trapped bodies.

Newsday

Junior Gold miners interested in Caledonia’s shares

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Caledonia Mining Corporation has announced that it has recently become aware that VanEck Vectors Junior Gold Miners ETF has interests in 3.90% of its shares. 

VanEck Vectors Junior Gold Miners ETF announced on its website that it holds an interest in a total of 473,246 Caledonia shares which equates to 3.90% of the issued share capital of Caledonia. 

This deems VanEck as a significant shareholder of Caledonia Mining Corporation (as defined by the AIM Rules for Companies).  

 Currently, Caledonia has consulted VanEck pertaining to the announcement and will provide further information if need be. 

Caledonia is a constituent of the MVIS Global Junior Gold Miners Index (GDXJ Index) which forms the basis of various passive gold sector investment funds in the North American market, the most significant being the VanEck Vectors Junior Gold Miners ETF. 

VanEck Vectors Gold Miners ETF is an exchange-traded fund that gives investors exposure to gold mining companies. 
 

The fund was established in May 2006 and trades on the NYSE Arca exchange. It is composed of 53 companies with $15.1 billion in total assets as of April 22, 2021. 

Adding insult to injury, govt increases fuel levy

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Zimbabwe’s government has increased the strategic reserve levy by as much as 323%, a move which will push the country’s fuel price, already the highest in the region, higher.

notice by Finance and Economic Development Minister Mthuli Ncube, issued on 3 September 2021, shows that the strategic reserve levy, which is charged on all fuel imports, is now US$0,127 for a litre of diesel and US$0.087 per litre of petrol. Previously, the strategic reserve levy for both diesel and petrol was US$0,03 per litre.

Through the same notice, the government also announced the reduction of the NOCZIM debt redemption levy to zero, from US$0,057 per litre of fuel, but this is scant consolation for Zimbabwean motorists who will continue to pay way more than their regional counterparts at the pump.

The levy changes amount to a net increase of US$0,03 and US$0,04 per litre of petrol and diesel, respectively.

Before the changes, Zimbabweans were being charged as much as US$0,49 in various fuel taxes and levies. In other words, government taxes and levies account for nearly 40% of the fuel price.

Zimbabwe’s regional peers such as Mozambique, Zambia and Botswana pay between US$0,81 and US$1 for a litre of fuel.

Apart from further worsening Zimbabwe’s weak regional competitiveness, the levy increase will fuel bubbling inflationary pressures. Month-on-month inflation quickened from 2,56% in July to 4,18% in August, as the government revised its year-end annual inflation rate target from below 10% to as high as 35%.

 

 

 

NewZwire

Mines troop to VFEX

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GOVERNMENT says several mining firms have indicated plans to list on Zimbabwe’s year-old bourse, the Victoria Falls Stock Exchange (VFEX).

VFEX, which exclusively trades in foreign currency, has largely disappointed, having secured only two listings since its inception.

These are Seed Co International, which listed last year, and crocodiles producer, Padenga Holdings, which joined a few months ago.

“For more than a decade now businesses have not been able to raise capital,” the Finance minister said.

“They find it futile to raise capital in local currency. VFEX addresses that aspect. We want a platform where the private sector can attract hard currency. We are going to see that in the coming years. VFEX is targeting the exporting companies but largely the mining sector. One of the mining companies have registered and we are expecting more mining companies to list soon. It is yet another innovation that is meant to support the process for financial access and we are deepening it to give it more options to foreign investors and companies. We are also looking at the diaspora where we are engaging them to be able to participate,” Ncube added.

The Treasury boss could not disclose which firm was planning to list soon, but the New York Stock Exchange-listed Caledonia Mining Corporation, which operates Gwanda-based Blanket Mine has indicated that it could head to Victoria Falls, while Invictus Energy, which is exploring for gas in Muzarabani, has also said it may consider a VFEX listing.

“We want to list a US dollar bond on VFEX soon but we cannot give you the exact date yet as the advisors are still fine-tuning. I can’t also share the amount for now. We want to make sure that we develop a yield curve not just for domestic debt but also foreign debt on VFEX. We are really working hard on this,” he said.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NewsDay

Mine workers push for 270% salary hike

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THE Zimbabwe Diamonds and Allied Workers Union of Zimbabwe (ZDAMWU) is pushing for a 270% salary increase that would see the least paid worker pocketing at least $65 000 per month.

They are currently earning $24 000.

In a statement, ZDAMWU secretary-general Justice Chinhema accused the Chamber of Mines frustrating employees.

“The amount $24 500 of the least paid employee in the mining industry is not only enough, but also now an insult considering that the food basket is now pegged at $45 000 and this only benefits workers in towns.”

He added: “As far as we are concerned in the mining districts, the food basket is around$ 65 000 or US$600. The mine workers salaries and wages have remained stagnant despite the inflationary environment. This is also notwithstanding the fact that the mining sector is a vital cog of our economy. As mine workers, we are demanding a minimum of at least US$500 and a COVID-19 allowance of US$100 to make it US$600 paid 100% in United States Dollars.”

Chinhema said the workers were getting “impatient” and also frustrated by the Chamber of Mines, which has failed to heed their calls.

“Mine industry workers might resort to go slow as a sign of their frustration caused by the employer for failing to adjust salaries in line with the traditional practice of quarterly wage negotiations. The works council bargaining is also being affected, without the National Employment Council gazetting minimum wage based on bargaining. At the moment, works council are used by the employers to push their nefarious agendas,” he said.

“Currently mine workers are failing to bring issues of salaries and wages on the table as employers argue that they are waiting for NEC’s outcome. The obtaining situation in the mines is not healthy, the situation has reached a boiling point. Mineworkers have been pushed to the limits and are currently suggesting to down tools or go on a go-slow as a way of pushing NEC or individual mines to increase salaries in line with the current economic situation.

“As a union, we are giving NEC up to next week to come up with something within the range of the above stated, or we will be mobilising for a go-slow across the industry or a full job action in terms of the Labour Act.”

Chinhema also claimed that some mines had not paid back pay for increases in the first and second quarter.

Chamber of Mines chief executive Isaac Kwesu said he could not comment as he was out of office.

“Please refer to National Employment Council and AMWUZ [Associated Mine Workers Union of Zimbabwe] for comment. They can better give you the latest position regarding the wage negotiations as well as most key issues raised on them. I am currently out of office,” he said.

 

 

 

 

 

NewsDay

Namibia top court hands Deep-South small win in battle for copper project

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Canada’s Deep-South Resources (TSX-V: DSM) has scored a small but key win in its battle to renew the company’s prospecting licence for the Haib copper project in Namibia, as the country’s High Court has ruled no permits over the same area can be granted for now.

The Vancouver-based miner took the country’s Ministry of Mines and Energy to court in July after it refused to renew the company’s permit.  The company initially believed the denial was a misunderstanding but was then told it was due to its “inability” to advance to prefeasibility and complete the proposed drilling program as planned.

Deep-South maintains it has clearly demonstrated meeting all the criteria to justify a renewal. It insists the ministry was kept well-informed and had not objected to a proposed change to an upgraded preliminary economic assessment and a full feasibility study, which was already started.

The High Court’s ruling affects Orange River Exploration and Mining, which had applied for an exclusive prospecting licence covering the Haib copper deposit in November 2020.

The case will return to court on September 16, when the judge is expected to define the next steps in reviewing the non-renewal decision by minister Tom Alweendo.

Layoffs

Deep-South Resources stopped all work on-site in June and is now in the process of laying off workers.

The company had acquired the remainder of the project in 2017 from Teck Resources, which is one of its major shareholders.

The updated PEA in December had put Haib’s after-tax NPV at $957 million and IRR at 29.7% using a $3 per pound copper price, envisaging a 24-year mine producing 35,332 tonnes per annum of copper cathodes and 51,080tpa copper sulphate.

Deep-South is also investigating its international legal options and said it will disclose its strategy in due course

Mining

Congo says 12 dead, 4,400 sick following Angola mine tailings leak

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The Democratic Republic of Congo will seek compensation from the owners of an Angolan diamond mine after a tailings dam leak polluted drinking water, causing 12 deaths and making thousands of people ill, the country’s environment minister said on Thursday.

The late-July leak from Angola’s biggest diamond mine turned a tributary of the Congo River red following a rupture in a spillway for the mine’s tailings dam, which stores mining industry waste meant to stay undisturbed.
Researchers at Kinshasha University last month pointed to “huge pollution” that affected some 2 million people, killed fish and caused diarrhoea among river communities.

Congo, which shares a 1,600-mile (2,575 km) long border with Angola, will seek compensation in line with the “polluter pays” principle, where those who produce pollution should bear the cost of mitigating it, Eve Bazaiba told a media conference after visiting the country’s southern Kasai province.

Bazaiba said she could not yet say how much in damages the country could seek. She said 4,400 people had fallen ill.

The leak and deaths represent the latest in a string of tailings disasters for the global mining industry that investors, executives and environmentalists have tried to curtail with safety and inspection standards introduced last year.The mine’s operator, Sociedade Mineira de Catoca, did not immediately respond to a request for comment on the damages claim and deaths listed by the minister.

Not all companies – including Catoca – have publicly committed to the standards, which are non-binding, further fuelling questions about how the standards can cause industry-wide change if not all mines and mining companies adhere.

Catoca, a joint venture between Angolan state diamond company Endiama and Russia’s Alrosa, said in a press release last month that tailings leaked into the Lova River, a tributary of the Tshikapa River, which eventually feeds into the Congo River, in late July.

Satellite images reviewed by Reuters show the Tshikapa turned red on July 25.

Catoca said it immediately sought to repair the leak, built two dykes to filter sediment out of the water and by Aug. 9 the breach was sealed.

Alrosa, which holds a 41% stake in Catoca, did not disclose the incident and told Reuters it was not its responsibility to do so as it does not control the mine site.

Endiama, which also holds 41% of the company, also said it was Catoca’s responsibility to make the incident public. In answers to Reuters’ questions, Endiama said it was made aware of the leak on July 30, three days after Catoca said it was seen.

Catoca said it donated food baskets to riverine communities to mitigate the impact of the pollution. Endiama said other measures were being worked on, without providing details.

The International Council on Mining and Metals (ICMM), the global mining industry trade group, which worked to draw up standards on tailings dams, said it had offered support to Alrosa – which is not an ICMM member – after the leak.

Adam Matthews, chief responsible investment officer for the Church of England Pensions Board, which was also instrumental in drawing up the safety norms, said the leak was a reminder that tailings management requires continued attention from industry, governments and investors.

He said investors and the United Nations are developing an Independent International Institute which would implement the standard and verify companies’ compliance with it.

Reuters