Mining ZimbabweLatest Mining News, Policy and Industry Updates

ZIMBABWE’S platinum output increased by 2% to 121 000 ounces (oz) in the first quarter of this year compared to the same period last year, the World Platinum Investment Council (WPIC) has said.

Last year in the first quarter, output stood at 118 000oz.

Total output for 2022 is seen at 465 000oz, down 4% compared to what was achieved last year.

The southern African country holds the world’s third largest proven platinum reserves after South Africa and Russia.

Output from Zimbabwe has an impact on global output and pricing trends.

The modest increase in platinum output comes at a time the government has scrapped the 5% levy on raw platinum exports that was introduced back in 2020.

The tax was meant to encourage the various mining companies in the platinum sector to invest in domestic value addition services in Zimbabwe.

Zimplats, Unki and Mimosa ship out semi-processed matte for final refining in South Africa.

The lifting of the levy, which comes in the wake of other measures by the treasury allowing miners to pay royalties and a portion of their electricity bills in local currency, is expected to aid the challenges platinum group metal miners have been facing.

In its first quarter report, WPIC said Russia’s invasion of Ukraine at the end of February sent shockwaves through the markets.

The report said global refined platinum production in the period under review declined 13% year-on-year to 1 279 000oz, primarily on lower output from South Africa.

South African production fell 16% to 167 000oz year-on-year during the review period.  Among factors behind the decline in South Africa, maintenance schedules constrained processing availability in the quarter under review as Impala Platinum (Implats) , one of the biggest producers, undertook a programme to rebuild its number three furnace.

“Operations faced headwinds during the first quarter of 2022 as Covid-19 and geopolitical events stressed supply chains, impacting equipment deliveries and disrupting mine output. Safety-related stoppages also continued to weigh on output. Production at Mogalakwena, Anglo American Platinum’s flagship mine (in South Africa), was curtailed by heavy rainfall in the period,” the report said.

Russian output declined 11% year-on-year.

The report said other regions remained largely flat year-on-year.

Total demand in the first quarter declined 26% year-on-year to 1 528 000oz. Key contributors to this performance were exchange stock outflows. Industrial demand was lower, said the report. Low demand was also the result of jewellery demand, which heavily depends on China, but was affected by Covid-19 restrictions.

“In 2022, we expect that the wider markets’ volatility that we have seen over the last two years will persist, in part due to the uncertainties of the conflict in Ukraine,” WPIC said.

It said there had been a sharp escalation in supply disruptions, leading to further inflationary pressures and tightening of monetary policy across a number of key economies.

“The International Monetary Fund downgraded its forecast for global economic growth for the year to 3,6%. Even so, we still forecast a modest growth in platinum demand of 2% year-on-year, although this reflects markedly different trends in a number of key segments. Among these, most importantly, we forecast automotive demand to increase by 16%, on expectations of a recovery in production and higher vehicle loadings,” it said.

On the supply side, mine supply is forecast to decline by 5%, mainly due to lower output from South Africa. Secondary supply will be constrained by reduced scrappage rates and lower jewellery sales.

This will result in a market surplus of 627 000oz, down notably on 2021,” it said.

“We have significantly revised our 2022 forecast downwards, primarily due to expectations of much lower output from South Africa. Three major producers, Amplats, Implats and Northam have lowered their guidance. Although subject to individual operational constraints, common headwinds of increased safety incidents and resultant production stoppages, community unrest and supply chain procurement challenges were cited.”

Overall, platinum mine supply is forecast to decline 7% year-on-year to 5 872 000oz due to the depletion of Anglo American Platinum semi-finished inventory that boosted refined volumes in 2021, while planned smelter maintenance in South African and Russia reduces processing availability.

South Africa will account for the bulk of the fall, with a forecast decline of 9% to 4 258 000oz. Output from North America is expected to grow 22% as Vale’s Sudbury production normalises following the strike in 2021.

However, regional labour shortages continue to impact operations and present a downside risk, the council said.

Platinum is one of Zimbabwe’s biggest foreign currency earners, with South African mining companies such as Impala Platinum and Anglo-American Platinum owning the biggest platinum group metals mines in the country.

According to the government’s vision of attaining a US$12 billion mining economy by next year, platinum is expected to contribute US$3 billion per year.

The Independent

CHINESE conglomerate Huayou Cobalt this week downplayed multiple legal actions over Arcadia Lithium Mine in Zimbabwe, as it disclosed it was pressing ahead to deploy US$300 million for developing an ultra-modern operation that will ship out its first resource early 2023.

In March, Fredrick Mubaira, a Zimbabwean small-scale gold miner, filed lawsuits to reclaim mineral fields that he purported had been “illegally” taken over by Prospect Lithium Zimbabwe (PLZ) during a scramble to secure the resource from 2018.

PLZ’s Arcadia Mine was taken over by Huayou in a US$422 million deal in December last year.

Deputy general manager, Trevor Barnard told businessdigest that as Zimbabwean courts prepared to hear Mubaira’s case, the giant was moving to leverage on its massive balance sheet to tap the capital it requires to execute the Arcadia assignment.

Huayou presides over US$20 billion market capitalisation at Shanghai Stock Exchange, where it trades its stock.

Barnard said regulatory approvals, including exchange control authority, had been secured since Huayou shelled the war chest to takeover 87% stock in Arcadia last month.

Huayou contractors are laying the groundwork for a lithium processing plant, as executives engage authorities to construct a feeder road linking highways for shipping lithium to China.

The US$300 million injection will take the total spend to about US$722 million in a destination that has been battered by capital flight.

Subsequent to the settlement, Huayou dispatched a 14 member team led by general manager, Haijun Zhu to take charge of the asset, the firm said Monday, noting that it was “super excited”.

Barnard said while the legal actions were still sub judice, he was confident that Huayou had not crossed paths with Zimbabwe’s legal system.

“At the moment that case is with the High Court of Zimbabwe, so it is actually sub judice, I cannot divulge details,” said Barnard, speaking exclusively to businessdigest during a tour of Arcadia Mine.

“But I can assure you that we have treated everybody fairly and we have treated everybody on exactly the same basis wherever we have acquired claims and we have done everything according to the legal processes of Zimbabwe. We are incredibly confident that whatever is being alleged about us is not true,” he said.

“We intend to develop the project rapidly over the next year and invest US$300 million to develop the mine and construct a processing plant with a capacity to treat around 4,5 million tonnes of ore and produce 400 000 tonnes of lithium  concentrate per annum,” Huayou said in a paper released to reporters.

Mubaira’s court applications filed in Harare and submitted to defendants in Zimbabwe, China and Australia, came as Zimbabweans began to be concerned that foreign investors were parcelling out Zimbabwean resources and earning fortunes at the expense of locals.

He claimed that PLZ handed over the asset to Huayou before concluding crucial negotiations that were taking place with him over the land.

As PLZ moved to lay out foundations for exploiting the resource in 2018, its representative in Zimbabwe, McCloud Nyasowa talked Mubaira into abandoning gold mining on the claims, the court papers alleged.

The agreement ended with Nyasowa paying a US$5 000 deposit to Mubaira, after persuading him to move out.

PLZ was desperate to avoid controversy at the time, as it was scouting for investors, the court papers claimed, noting that the parties later agreed on a US$55 000 settlement, which would see Mubaira transferring his land to PLZ.

PLZ also undertook to buy a house and a car for Mubaira, while paying school fees for his children, the papers added.

The deal also involved PLZ allocating shares to Mubaira, the court papers claimed.

However, the parties agreed that Mubaira would be bought out once an investor was secured.

But at some point, disagreements emerged, which lawyers now say were motivated by the desire to take advantage of Mubaira’s financial situation and exploit him.

“Using a combination of economic duress, undue influence, cajoling and force, Mr Nyasowa drew up an agreement purporting that the purchase price was US$5 000 and that it had been paid,” Mubaira’s legal representatives, Mandizha & Company, said in letters sent to PLZ’s lawyers.

To A2

“He refused to give the client a copy assuring him that he would get one once all directors had signed. Using fraud, misrepresentation and the same tactics…all of which are reminiscent of the infamous Rudd Concession of 1888, Mr Nyasowa directed our client to lie on the transfer forms that the purchase price was US$5 000,” the papers said.

PLZ later paid Mubaira US$8 415, instead of the agreed US$55 000, court documents showed.

However, Mubaira is said to have stormed PLZ offices, after which an executive directed staff to “treat him to tea and biscuits” while a fresh “Rudd Concession” was being drafted, the lawyers said.

After getting winds that Huayou was coming into the picture, Mubaira confronted PLZ again, but he was “dismissed off hand with the retort that PLZ’s lawyers would deal with whatever claim” he would bring up.

In their letter to the Chinese firm, Mubaira’s lawyers warned that Huayou’s interests would be at stake unless the deadlock over settlement was addressed.

“Our client is the legal owner of a mining block situated on his farm, Lowfield in Arcturus,” Mubaira’s legal counsel wrote in a letter sent to Huayou dated March 23, 2022.

“Our client contends he was defrauded of his aforesaid legal interest by PLZ. Our client became aware of the contract you entered into, and are in the process of consummating with PLZ. His contention is that to the extent that the subject matter for which you contracted with PLZ contains his mining interests, you were unknowingly and fraudulently dragged into a fraud. In our law, and we believe certainly in your own jurisdiction too, fraudulent contracts cannot birth legal and commercially enforceable contracts.

“Our professional and courteous attempts to seek dialogue with your local partners have been rebuffed. It seems to us that your local partners consider our client’s claim to be baseless. In fact, they are on record accusing him of being a fraudster and extortionist. The practice in Zimbabwe is that before litigation, a claimant should give his adversary an opportunity to reply. While we are ready to file a claim against you and your local partners, it is only fair that we draw your attention to facts that our client believes were deliberately withheld from you.

“We are obviously aware of what effect such bob disclosure/s have on your own contract with PLZ. Our client’s brief to us is for us to recover his mining interest from whoever is laying claim to it, which bracket we believe you belong…the courtesy extended to you herein is not a sign of weakness on our client’s part,” Mubaira’s lawyers wrote to Huayou.

“Sometime in July or August 2018, geologists from PLZ sought and obtained permission to prospect on our client’s farm (Lowfield), for lithium,” Mandizha & Company wrote in another letter to PLZ lawyers, Manokore Attorneys.

“Our client is the registered owner of a gold mining block on the said farm.”

The Huayou /PLZ transaction was subject to a series of regulatory approvals in Zimbabwe and China.

Zimbabwe has benefitted from big Chinese investments in the past two decades, which have kept the southern African country running during a tough time when foreign direct investment plummeted in the aftermath of hard-hitting Western sanctions on the southern African country.

The massive push by Chinese investors into Zimbabwe’s multibillion dollar lithium mines has raised fresh fears of plunder with a leading resource campaigner pushing for stronger Parliamentary oversight.

The Independent 

Lithium technology companies are jostling for a foot in the door of the rapidly accelerating North American integrated battery metals supply chain, whether becoming a battery precursor material manufacturer or a potentially disruptive lithium direct extraction tech provider.

Vancouver-based Nano One Materials Corp (TSX: NANO; US-OTC: NNOMF) on May 25 announced the acquisition of lithium iron phosphate (LFP) cathode material maker Johnson Matthey Battery Materials Canada for $10.25 million.

The acquisition includes the team, facilities, equipment, land and other assets, with the team together contributing more than 360 years of scale-up and commercial production know-how.

Notably, the facility includes a 2,400 tonne per year LFP plant in Candiac, Quebec.

The company stresses the plant occupies one-tenth of the 400,000 sq.ft. property, leaving ample room for expansion.

“The rapidly expanding need for responsibly produced cathode materials in North America presents an opportunity for Nano One to deploy its technology and become a leader,” said Nano One CEO Dan Blondal.

He described the initiative as a “critical link in the mines-to-mobility initiative.”

The acquisition is fully funded and is on a cash-free, debt-free basis, subject to certain working capital adjustments. The transaction is expected to complete by 2022, subject to JMBM Canada fulfilling contractual commitments and certain other customary closing conditions.

Johnson Matthey acquired the Candiac facility in 2015, which has been in operation since 2012. It supplies cathode material to the lithium-ion battery sector for automotive and non-automotive applications for a select group of customers.

The company expects its strategic location in Quebec to provide it with the benefit of access to a North American ecosystem, which will serve the broader global community with cost-effective, resilient, and environmentally sustainable cathode materials.

At $2.31, Nano One’s TSX-quoted equity gained 42.2% in early trading on May 25, giving it a market capitalization of more than $200 million. However, over the 12-month frame, the stock is still down 47%.

Direct extraction technology

Meanwhile, physical chemist Jack Lifton, the man credited for coining the term ‘technology metals’ back in 2007, tells The Northern Miner he is excited about a direct lithium extraction technology a company he is involved with, One World Lithium (US-OTC: OWRDF; CSE: OWLI), has recently licenced from the US Department of Energy.

The scientist views the newly licensed technology as vertically integrating the production of battery-grade lithium carbonate directly from brines in a single reactor. The problem is the patents issued to the DoE are still so fresh, and with the licencing deal just executed, One World is looking for an in-field brine source to test out its kit.

“As a mining company, we remain focused on prospective properties of merit that may contain recoverable lithium at a commercial scale, from a wide range of concentrations,” said Lifton in an interview.

“We can vertically integrate such a deposit into the company to include the highest value-added form of that commodity by focusing on an advanced direct lithium extraction process for the extraction and separation of lithium from natural brines, directly generating lithium carbonate,” he said.

“In summary, we will focus on developing properties as assets that fuel our ability to offer low-cost lithium separation and direct production of battery-grade lithium carbonate.”

The extraction method uses unique carbon dioxide injection mixing techniques to precipitate lithium carbonate from brines quantitatively. This process requires no solvent, electrodes, membranes, or sorbents. It only uses carbon dioxide from industrial waste, exhaust gas streams, or even ambient air.

It significantly reduces capital and operation costs, process time, energy requirements, and, paradoxically, overall carbon dioxide emissions.

According to Lifton, the process is fully deployable and operational at the brine source, eliminating the need to evaporate the brines and/or transportation of brine concentrates to a chemical processing facility to form and purify lithium carbonate. Deployment of this technology will reduce dependence on foreign lithium sources.

However, it joins a widening circle of lithium tech-focused companies hoping to commercialize their particular brand of direct extraction technology. The proof, however, lies in whether any of these companies can move beyond successfully demonstrating bench-scale testing in the laboratory to demonstrating the economical value of the new technology in an in-field application.

At 3c per share, One World’s equity is down about 71% over the past 12 months, giving it a market capitalization of $5.4 million.

Source: NorthenMiner

The protection of workers remains a priority for mining companies as zero harm policies continue to gain traction.

Rudairo Mapuranga

The mining industry in Zimbabwe has taken necessary measures to see through the achievement of the zero-harm mantra.

The country’s body, representing Large scale producers, the Chamber of Mines works with Government, labour and Small-Scale Miner organisations to ensure that mining operations cause no harm or injury to those working in mines. This is done by encouraging mines to develop and implement safety, occupational health and environmental systems at their operations.

In this regard, the Chamber of Mines of Zimbabwe works with the Ministry of Mines and Mining Development’s Mining Engineering Department which is responsible for the safety and health inspectorate function. It works with the National Social Security Authority (NSSA) which is the lead agency for occupational health and safety in the country. In addition, it works with the Environmental Management Agency (EMA), the national authority on environmental management.

According to the Chamber of Mines CEO Mr Isaac Kwesu, the chamber established a standing committee of Safety, Health and Environment (SHE), whose mandate is to make recommendations to the Executive Committee on SHE issues in the mining industry.

He said through the SHE committee, that the mining sector has seen the number of deaths decreasing significantly.

“Safety, health and environment are key aspects that we must consider when undertaking mining activities and the chamber of mines subscribe to zero harm and have structures in place to ensure that there is zero harm in the mining industry. Through our SHE committee structures of the industry, we have also seen the number of calamities or casualties in mining coming down significantly. Some large mining houses have been recording zero deaths and it is common that if other mining operations learn how others are doing it through existing structures of the mining industry, we can achieve these zero harms,” Kwesu said.

For example, Bulawayo Mining Company owned gold producer, How Mine, has employed strategies to improve the safety and health of its workers which has seen it achieving a reduction in injuries from 299 to 12 per year. The company has made great strides in ensuring a safe working environment as a result of an integrated systems approach which has seen them using three different systems some of which were borrowed from the chamber of mines, SHE committee.

Victoria Falls Stock Exchange-listed nickel producer Bindura Nickel Corporation (BNC) has not recorded fatalities at its Trojan Nickel Mine since 2015 an indication that the chamber of Mines SHE committee has been of significance to the reduction of calamities in the mining industry. The company recorded BNC 2.6 million fatality-free shifts last year with Caledonia’s Blanket mine also reaching over 2.6 million fatality-free shifts last year.

The Deputy Minister of Mines and Mining Development Dr Polite Kambamura said the government was working with the mining players to ensure that there was zero harm. He said the Ministry of Mines has been conducting safety awareness campaigns to promote the achievement of zero harm.

“We encourage miners to adhere to set safety standards by safety awareness campaigns being done by the ministry,” Kambamura said.

The Parliamentary Portfolio Committee on Mines and Mining Development Chairperson Hon Edmond Mkaratigwa said the parliament was doing all it can to ensure that the safety of workers has been achieved.

“Parliament’s position as the representative of the masses in Zimbabwe stands with what protects life as the most sacred aspect and then the body as the first capital of all sources of livelihood for all workers and their families.

“Parliament has therefore voiced against these mining accidents and all unsafe practices at the workplace and surrounding environment. We have raised concerns and when these are being addressed, we are happy and will support if there is any other need for us to unlock when any resisted difficulty but necessary options are to be taken towards achieving that target.

“I also hasten to say, we should deal with safety and zero harm but where zero harm has failed, we should still fail safely and be able to rescue and recover. This is our position that mitigation is fine, prevention is fine and response, rescue and recovery are equally fine. I commend the initiative and we support that,” Hon Mkaratigwa said.

Duration Gold’s Vubachikwe mine has appointed Mr None Kananji as its Mine Manager to steer its development and sustainability agenda.

Prince Sunduzani

The company said it appointed Mr Kananji for his honesty and technical competency, which it said were key in meeting the company’s goal.

“As you are aware, Vubachikwe Mine continues to undergo a thorough business and operational review as part of the Vubachikwe Going Forward Programme”. In the short term we will make Vuba a sustainable and profitable mine for the benefit of all stakeholders,” said the director Allan Dolan.

Before his elevation, Mr Kananji was the company’s Underground manager and acting mine manager.

Duration Gold

Duration Gold Limited offers gold exploration and production services. The company owns 5 core assets with historic production of 4.6 million oz. It also sells gold at international spot prices. The company was founded in 2006 and is based in Bulawayo, Zimbabwe. Duration Gold Limited operates as a subsidiary of Clarity Enterprises Limited.

One of its flagship gold mines is Vubachikwe, which is one of Zimbabwe’s oldest gold mines.

EXALO #202, the oil and gas drilling rig that is on its way to kick off crucial test well drilling at Invictus Energy’s Muzarabani oilfields, has been stuck in Tanzania due to delays in releasing requisite papers.

The driller, which is operated by Romania-headquartered Exalo Drilling SA, recently clinched the deal but was said to be undertaking a similar project in Tanzania.

Exalo was expected to make the journey from Tanzania to Zimbabwe this month, arriving in time to execute the assignment from July 1, according previous statements by Invictus.

In an interview, Paul Chimbodza, whose firm, Geo Associates is a shareholder in the project, confirmed the delay, but said several parts of the plant had already arrived in Zimbabwe.

“There have been delays in Tanzania, they are working on the paperwork but several parts of the equipment have already started arriving,” Chimbodza said.

On Monday, the firm said it was on course to kick start the Mukuyu-1 oil and gas drilling, after raising US$8,5 million to fund project.

The funds were raised through a private placement.

“Under the placement, Invictus will issue 60 026,165 new fully paid ordinary shares at an issue price of $0,20 per new share, which represents a 27,3% discount to the company’s share price on May 18, 2022, the last trading date before the placement, and a 9,5% discount to the five-day volume weighted average price prior to that date,” Invictus said.

Invictus Energy, the Australian resources junior miner is hoping to strike a game-changing gas or oil find at the Muzarabani-based Cabora Bassa oilfields.

Results of the drilling assignment will also have a huge bearing on the economically troubled Zimbabwe’s future.

In a statement about three months ago, Invictus reiterated its confidence that there were high chances that massive fortunes were lying under the earth’s crust at the heart of swathes of boundless forests in Zimbabwe’s Zambezi Valley region.

The drilling represents an important phase in Invictus’ southern African ambition, one which has taken seven years of exploration and fund raising to undertake.

Invictus said a binding drilling rig contract with Exalo has been inked.

“Invictus is pleased to confirm it has executed a binding drilling rig contract with Exalo Drilling SA to drill the Muzarabani-1 exploration well and an option for an additional exploration well for the basin opening drilling campaign, scheduled to commence in June 2022,” the company said in a shareholder update.

It has been a long journey for Invictus, which came to the Zimbabwean scene in 2015, when talk of oil or gas reserves in Zimbabwe resurfaced.

Mobil, the global oil giant, had explored, and abandoned the Zambezi Valley in the 1990s, but after collecting vital data, now worth about US$3 million, which attracted Scott Macmillan, the Invictus chief executive officer, to try his luck.

Macmillan is a Mobil veteran.

The firm has finalised processing the Cabora Bassa 2D Seismic Survey, with data interpretation underway at the time the statement was issued.

But early signals have revealed “multiple trapping geometries and a target rich hydrocarbon environment”.

Invictus has identified several potential well locations for the Muzarabani-1 well and “is maturing additional prospects identified from the CB21 survey for a second well to be drilled in the upcoming campaign”.

“The maiden drilling programme to test the world-class Muzarabani prospect is coming together very well, having secured Exalo’s #202 rig, global well services provider Baker Hughes and long lead items,” Macmillan said then.

Newsday