Mining ZimbabweLatest Mining News, Policy and Industry Updates

ZIMBABWE’S largest platinum miner, Zimplats, has committed an additional US$1,5 million on exploration activities meant to unlock more value for the business.

The exploration exercise covers mineral resource evaluation comprising an estimated 13 464 metres of surface diamond drilling.

“A total of US$1,3 million was spent on exploration projects, with a further US$1,5 million committed as at 31 December 2021,” said the company in a latest update.

“Exploration activities included mineral resource evaluation, comprising approximately 13 464 metres of surface diamond drilling over existing projects on the two mining leases.”

During the quarter to December 31, 2021, it said exploration activities increased geological and geotechnical confidence in production schedules.

The platinum giant also posted 1 682 tonnes of ore, which was seven percent below the prior quarter ended September 30, 2021.

“Mined tonnage decreased seven percent both quarter-on-quarter and year-on-year. This was mainly due to production disruptions at Mupfuti Mine during a change-over of trackless mining equipment service provider,” it said.

“The process has since been completed. 6E head grade decreased two percent to 3,39 grammes per tonne from the prior quarter, largely due to the impact of ore mix as increased volumes of lower grade ore were milled from the Mupani Mine development stockpile,” said Zimplats.

Milled tonnes, however, increased by three percent quarter-on-quarter and year-on-year due to higher running time at the concentrator plants.

“The previous quarter’s milled volumes were affected by the planned concentrator mill reline shutdown at the Selous Metallurgical Complex.

“6E metal in final product decreased by two percent to 140 768 ounces from the prior quarter, impacted by the lower head grade notwithstanding the higher tonnes milled,” said the company.

On a year-on-year basis, metal in final product decreased by four percent driven by lower head grade and a decrease in concentrator recoveries. Recoveries were adversely affected by the two percent decrease in head grade.

A total of US$0,6 million was transferred from operating costs to closing stocks during the quarter largely due to concentrate stockpiled during the routine furnace taphole inspection shutdown.

A combination of lower production volumes and higher operating costs resulted in an eight percent quarter-on-quarter and a 13 percent year-on-year increase in operating cash costs to US$735 per 6E ounce.

In November 2021, Zimplats’ board approved a US$521 million capital expenditure project to construct a new 38MW furnace and establish an acid plant for the abatement of sulphur dioxide generated by the smelter operations.

The Chronicle

FOUR miners have been arrested for allegedly stealing a pistol with six rounds as well as 161 grammes of gold from a gold buyer at a mine in Shurugwi.

Siblings, Dereck (27) and Prosper Mudzengi (19), Wellington Ncube (26) and Malvin Simo Simwandala (27) allegedly robbed Mr Tichaona Darangwa before reporting him to the police for allegedly trespassing into their mine.

This was heard by Gweru provincial magistrate Mr Tendai Mabwe during the appearance of the accused persons facing a count each of robbery.

The quartet was not asked to plead and was remanded out of custody on free bail to today.

Mr Darangwa, the court heard, is a popular gold buyer from Gweru and a director of Umcima 70 Gold mine in Shurugwi.

Dereck, Prosper, Ncube and Simwandala are all employed at Arish Red Gold mine in Shurugwi.

It is the State case that on April 30 last year in the morning, Mr Darangwa went to Arish Red Gold mine to allegedly meet his business partner Mr Anderson Muchinje.

Whilst at the mine, the court heard that the accused persons allegedly approached him armed with stones and an altercation arose.

The court heard that acting in common purpose, the four accused persons allegedly attacked the complainant with stones and he fell down. Dereck allegedly forcibly took Mr Darangwa’s pistol with six rounds from the waist of his trousers.

The court heard that the accused persons allegedly searched Mr Darangwa and took 161grams of gold.

Dereck, Prosper, Ncube and Simwandala allegedly took the complainant to a police station in Shurugwi accusing him of trespassing on their mine On the same date and in the afternoon, the court heard that the police recovered Mr Darangwa’s pistol loaded with six rounds from Lesley Maringe.

Maringe the court heard indicated that he got the firearm from Dereck.

Mr Darangwa was referred to Shurugwi District Hospital for medical attention after sustaining severe injuries from the attack.

The Chronicle

The small-scale and artisanal mining (ASM) sector has continued to dominate in the country’s economic revival by contributing over 77 percent of total gold deliveries to Fidelity Gold Refinery (FGR) in January 2022.

Rudairo Mapuranga

Speaking at the ZMF Induction and Stakeholders Consultative Workshop on Wednesday, Zimbabwe Miners Federation (ZMF) President Ms. Henrietta Rushwaya said the ASM sector delivered a total of 1.4 tonnes of gold in January 2022.

The ASM sector in January of the previous years has been delivering an average of 400 kgs making this year’s contribution increase to about 350 percent. Total deliveries to Fidelity in January by both small and large producers was 1.8 tonnes.

“There are now more than 1.5 million artisanal and small scale miners in Zimbabwe but despite the international up and downs over the past two years due to the covid-19 pandemic with its uncertainties, the ASM remains a vibrant sector averaging 60 percent gold deliveries as recorded by FGR.

“Of note is the marked improvement of gold deliveries for the first month of 2022 where the ASM delivered 2.4 tonnes and over the years the ASM would only deliver 400 kgs for the first month. Credit also goes to the government for realizing the full potential and the significance of the ASM sector by incentivising our operations. We are a sector that compliments government effort,” Rushwaya said.

Rushwaya emphasized the need for miners to prioritize sustainable mining for the growth of the small-scale and artisanal miners in Zimbabwe.

“As a mother body for ASM we attach great importance to corporate governance and we believe that for organisations to be successful, competitive, and sustainable in the long term a high standard of governance is indispensable,” Rushwaya said.

Speaking at the same event Zimbabwe’s Ambassador at Large, Ambassador Eurbert Angel said there was a need to support the ASM sector in Zimbabwe through sustainable and smart mining.

“In Zimbabwe, we have witnessed a great positive contribution to our economy by artisanal miners, the bigger part of gold deliveries is now coming from the ASM sector. To increase productivity in this sector there is a need to support artisanal miners through sustainable smart mining,” Angel said.

The value of gold receipts  jumped 180% to US$167.5m in January  this year  from US$59.9m reported in the same period last year on the back of increased output and firming prices.

Gold deliveries to the country’s sole buyer and marketer of the yellow metal Fidelity Printers and Refiners (FPR) also jumped 188% to 2.87 tonnes last month from 0.99 tonnes achieved in January last year.

This was attributed to improved mining policies.

“The total gold delivered to FPR in January 2022 stood at 2.867 tonnes  at an average price of US$58 410 per kilogramme,” FPR acting general manager Peter Magaramombe said.

The small scale miners delivered 2.05 tonnes in January this year compared to 0.355 tonnes  delivered during the same period last year.

The large mining houses delivered 0.814 tonnes  compared to 0.642 tonnes.

The Chamber of Mines of Zimbabwe  CEO Isaac Kwesu  said there  was, however, need for  miners to improve production to capitalise on the current strong mineral prices.

“The firm commodity prices continue to be good for miners but there is a need to ramp up production to ensure that we have capitalised on that positive aspect,” Kwesu said.

Last year, the gold export receipts rose 42% to US$1.7bn compared to US$1.2bn earned in 2020.

This was after gold deliveries to FPR soared 55% to 29.6 tonnes. The previous year, deliveries stood at 19.05.

This was, however, less than the 33.4 tonnes of gold delivered in 2018 .

Government introduced various initiatives, which appear to  be paying dividends.

Gold is the third largest foreign currency earner after platinum and diaspora remittances.

However, the government has been battling smuggling of the yellow metal in the past few years owing to payment delays by FPR and low prices compared to those obtained on the international market.

Government has, however, rectified the problem. It’s now paying timeously and the prices are now at par with those on the international markets.

In addition, the central bank has also scrapped taxes on small scale miners to encourage deliveries through formal channels.

Experts say there is a need to review retention levels for the large scale miners and capacitation of small scale miners to ramp up production.

On Monday, international gold prices stood at US $59 660 per kilogramme and Fidelity was paying above US$58 870 per kg to those who delivered over 20kg.

The government has also moved to provide equipment in gold centres to move towards helping the attainment of US$4bn gold export revenue.

Business Times