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ZCDC achieves herd immunity against Covid-19

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ZCDC achieves herd immunity against Covid-19

The country’s biggest diamond producer, the Zimbabwe Consolidation of Diamond Companies (ZCDC) vaccination program has been impressive with the company announcing that 99 per cent of its employees have received the first dose of the Covid-19 vaccine with 97 per cent receiving the second jab.

Rudairo Mapuranga

The country last month said its vaccination program has been successful and the milestone has been celebrated in ZCDC.

“ZCDC has achieved its herd immunity against Covid-19 with 99% of employees having received their first dose of the Covid-19 vaccine and 97% having completed the second dose,” the company said.

The President of Zimbabwe H.E Emmerson Dambudzo Mnangagwa has been encouraging the nation to remain vigilant amid the COVID-19 pandemic, he has always said that his government will continue to provide COVID-19 vaccine doses for free until the nation attains herd immunity of 10 million of It’s approximately 14 million people.

The country plans to purchase 1.5 million vaccines monthly from this month up until herd immunity is achieved.

As the country moves forward in its aim of achieving herd immunity, one million people have so far received their first dose of the Covid-19 jab.

Zimbabwe has received rave reviews for its Covid-19 response and special praise from the World Health Organisation (WHO) for the way it has confronted the global pandemic.

The country has so far recorded over 80 000 Covid-19 infections and over 2 400 deaths which has prompted the government to embark on a massive Covid-19 vaccination drive that has now spread to various health centres in all districts.

The country has approved the U.S. Johnson and Johnson Covid-19 vaccine for emergency use. It is the first vaccine produced by a Western country to be licensed in Zimbabwe with vaccines from China, India and Russia already approved.

Well done ZCDC.

Small scale gold producers outshine primary producers

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Small scale gold producers outshine primary producers

Small scale and artisanal miners continue to outshine large scale producers in gold deliveries to the country’s sole gold buyer and exporter, Fidelity Printers, and Refiners (FPR) contributing over 52% of the total deliveries during the first seven months of 2021.

Anerudo Mapuranga

According to the 2021 MID-TERM MONETARY POLICY STATEMENT released recently by the Reserve Bank of Zimbabwe (RBZ) Governor Dr. John Panonetsa Mangudya, “Small scale gold producers contributed 52.8% of the total gold deliveries to FPR during the first seven months of 2021 which compares favourably with the 55.8% delivered for the same period in 2020.”

The micro miners have delivered over 6 tonnes (6,854.69 kgs) during the first seven months of 2021 compared to (6,708.22 kg) delivered during the same period last year while large scale miners produced 6,094.59 kg this year compared to 5,309.63 kg last year.

Total gold deliveries during the first seven months of 2021 was at 12,779.29 kg compared to 12,017.85 kg delivered last year.

Gold exports in 2021 are forecasted to be higher than in 2020 on account of the recently introduced 2.5 – 5 per cent gold delivery incentive and the COVID 19 induced restriction that could have curtailed gold leakages through smuggling.

There was a remarkable surge in gold deliveries to Fidelity Printers and Refiners (FPR) in the months of June and July 2021.

In June 2021 gold deliveries to FPR were 2 924.3 kg compared to 1 409.6 kg delivered in June 2020.

 Similarly, gold deliveries for July 2021 stood at 2 824.6 kg compared to July 2020 deliveries of 1 406.4 kg.

Caledonia ups revenue by 31%

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Caledonia ups revenue by 31%

Gold producer Caledonia Mining has recorded a revenue of  $US30 million, 31% revenue increase compared to the $US22.9 million recorded prior year, due to the higher production and higher gold price.

Shantell Chisango

Caledonia Chief executive officer (CEO) Steve Curtis stated that the company performed exceptionally well in all its productions which has paved the way for them to achieve the guidance of between 61,000-67,000 ounces of the year.

“This has been a strong Quarter and these results have left us well placed to achieve our guidance of between 61,000-67,000 ounces for the year.”

In addition, the company managed to increase its gross profit for the second quarter by 51% compared to the second quarter of 2020, which the CEO attributed to higher production, lower costs, and higher cold prices.

“Higher production, lower costs and a higher gold price resulted in a significant increase in the underlying profitability of our business with gross profit increasing by 51 per cent compared to the comparable quarter in 2020.”

However, the company was unfortunate to record a negative on the net profit due to the impairment of the Glen Hume project which was turned down by board members because it failed to meet the company’s requirements in terms of grade, size, and grade.

“Net profit was adversely affected by the impairment of the Glen Hume exploration asset following the Board’s decision not to proceed further with this project because the property does not meet Caledonia’s strategic requirements in terms of size, grade and width.”

Moreover, EBITDA, excluding foreign exchange gains and losses, export incentives and asset impairments, increased over 100 per cent from $6.9 million in Q2 2020 to $14.0 million in the Quarter.

Over 165,000 tonnes were milled in the Quarter which is a new record for Blanket and reflects the contribution of Central Shaft which is now operational, said Curtis.

“The increased production meant that cash generated by operations was almost $15.0 million for the Quarter, compared to $2.5 million in the preceding quarter and $5.4 million in the comparable quarter.

The company reported that Covid19 had no negative effects on the production of gold, since the company managed to produce magnificent results by making sure all covid19 restrictions were followed by all stuff.

“Excellent production was achieved without compromising on safety.  During the Quarter Blanket passed the milestone of achieving two million fatality-free shifts.

“Although COVID-19 had no discernible effect on production in the quarter, management has re-introduced strict access controls to the mine and the mine village to limit the rate of transmission of the virus. Blanket is also in the process of vaccinating its workforce and their families.

Furthermore, Caledonia said production in July was slightly less than 6,000 ounces of gold, which demonstrates that Blanket continues to ramp up production towards the target rate of 6,700 ounces per month that is required to achieve the production target of 80,000 ounces per annum from 2022.

Production in July was 5,995 ounces, which is a further increase in average monthly production and demonstrates that Blanket is on track to achieve its production guidance of 61,000 – 67,000 ounces for 2021.

Meanwhile, the solar project, which is expected to provide approximately 27 per cent of Blanket’s average daily electricity usage, is now in the procurement phase and project completion is expected in April 2022.

On-mine cost guidance for 2021 is in the range of $740 to $815 per ounce; guidance for AISC is $985 to $1,080 per ounce.

Caledonia paid a further increased quarterly dividend of 12 cents per share in April this year, and then in July declared a quarterly dividend of 13 cents per share, paid at the end of July. This was the sixth increased quarterly dividend and an 89 per cent increase from 6.875 cents paid in October 2019.

Hwange Colliery relaxes tender provisions

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Hwange Colliery relaxes tender provisions

Hwange Colliery Company Ltd, Zimbabwe’s oldest coal miner has extended a tender inviting investors to revive or build a new battery of coke ovens after applicants requested for more information on the scope or work.

Hwange, which is partly owned by the Government floated the tender in April this year inviting bids to either rebuild or to construct a new recovery type coke oven battery, by products plant and gas plant, which includes a coke oven gas supply line to Power Station
and financing of the project.

The company also offered maintenance of the coke oven battery for a period of 12 months.

“The tender has been extended because those who had applied wanted more information,” Hwange managing director Dr Charles Zinyemba said.

Hwange decommissioned its coke oven battery in 2014 after it become too expensive to operate. Prior to that Hwange exported coke to copper smelters in Zambia and the Democratic Republic of Congo. Zimbabwe is witnessing huge investments in the coke sector as investors it seek to take advantage of surging demand in China, the world’s largest consumer of the commodity used for steel production. Last month, Afrochine Dinson launched its coke oven battery with capacity to produce 400 tonnes per day for local and regional markets.

Afrochine started building its plant in 2019 but progress was stalled by the outbreak of Covid-19 until the Government engaged its Chinese counterparts to facilitate the return of experts who had been locked in the Asian country to complete the projects.

Afrochine Dinson has already started the construction of the second phase of its project, as the company seeks to deepen the value addition drive, which feeds into Zimbabwe’s Vision 2030 of an empowered and prosperous upper-middle-income economy.
Several other coke projects are in the pipeline and would help Zimbabwe achieve the US$12 billion mining economy by 2023.

Launched in October 2019, the mining road map, known as the Strategic Road to the Achievement of $12 billion by 2023 aims growth in strategic exports of minerals such as

The policy focuses on value addition, enhanced investment within the sector, increased productivity and employment creation and increased exports and foreign-currency generation.

The Government says value addition and beneficiation of agriculture and mineral commodities would be the most important part of its policy framework next year as the country seeks to grow exports from the secondary sector. Last week, the Government
banned raw chrome exports to encourage building of smelters.

Announcing the latest strategy to boost the mining sector during a post Cabinet media briefing, Information, Publicity and Broadcasting Services Minister, Monica Mutsvangwa, said the moratorium on raw chrome ore exports would promote the local value-addition chain.

 

 

 

 

 

 

 

 

 

 

 

Business Weekly

Eureka in first gold smelt

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Eureka in first gold smelt

Eureka Gold Mine, located near Guruve, is now operational after decades of inactivity and management expect to ramp-up to full production in the coming months.

The gold mine was forced to shut operations after running into viability problems two decades ago with capital shortages at the centre of the mine’s troubles.

But new owners, Padenga Holdings, through its gold subsidiary, Dallaglio, vowed to bring Eureka back to life and make it “one of the largest and most technologically advanced mines in Zimbabwe”.

To bring the gold mine back to life the Victoria Falls Stock Exchange-listed company invested US million.

The investment has now started bearing fruit with the gold mine resuming production.

In a brief statement on the company’s LinkedIn page, Dallaglio CEO Marc Nicolle announced that the “first gold smelt at Eureka took place as planned in July”.

Nicole described this as a “remarkable achievement for Dallaglio” as Eureka is now the second Zimbabwean mine it has “brought into operation after decades of inactivity”.

The other one is Pickstone Peerless mine which had not been operational for 44 years. “This milestone was achieved by a very focused and dedicated Delta Gold Zimbabwe team who have gone above and beyond in many ways to make Eureka a success, despite the many
challenges faced along the way.

“Congratulations to all of the team that have made this milestone possible,” Nicole said.

“We are very proud of what has been delivered and look forward to the ramp-up to full production in the coming months.”

The subsequent ramp-up to the full processing capacity of 100 000 tonnes per month is targeted by end of December 2021, according to Padenga said of Eureka in its last set of results.

There is good potential to extend the Eureka life of mine by moving to an underground mining method once the open pit has been exhausted. The international spot price is expected to remain elevated in 2021 given the continued uncertainty of the Covid-19 pandemic on the global economy. This investment will continue to yield positive returns for the foreseeable future,’’ the firm said in a statement accompanying its last full-year results.

Business Weekly

Coal still a lifeline for SA as transition begins

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Coal still a lifeline for SA as transition begins

While the global focus on environmental, social and governance (ESG) issues looks to phase out coal as an energy resource, the prospects for South African coal production remain strong for coming decades.

Following the 3rd Coal Industry Day, held online in July, SRK Consulting principal coal geologist Lesley Jeffrey said coal remains a key contributor to the country’s economy – both in terms of energy production and mineral export revenues. Coal was only recently overtaken by platinum group metals as the country’s leading commodity by sales, but it remains the most significant component of the country’s mining in terms of value added – accounting for 25%.

“Strong international coal prices of around $130 per tonne have raised the attractiveness of exports, with most of South Africa’s export coal going to Pakistan,” said Jeffrey. “China is also opening up opportunities for imports from SA following its trade wrangling with Australia, previously an important coal source for them.”

Although there has been less coal demand from India due to a surge in local production there, South African coal still remains better suited to India’s production of sponge iron, she noted. This suggests that the recent dip in exports to that country may only be temporary; the added advantage is that this market takes relatively low-grade product from South Africa. Coal Industry Day presenter Xavier Prévost confirmed that coal remained the largest single source of power generation globally. Prévost also said the coal sector expected a strong recovery in 2021 – a reminder of coal’s central role in fuelling some of the world’s largest economies.

Jeffrey highlighted that coal-fired power stations are still being built on a large scale in developing regions like south-east Asia – as this provides an affordable route to powering broader economic development. While South Africa has mined out much of its traditional export quality coal, there remained a long horizon of demand abroad for our lower grade coal.

“Unreliable rail services to the Richards Bay Coal Terminal continue to constrain SA’s coal exports, and this has been exacerbated by a recent hacking event and the spate of looting in parts of the country,” she said. The export market was vital to sustain, she emphasised, as it created the economic balance that keeps coal producers profitable while they continue to supply Eskom at low margins. Without the higher-value exports, local electricity prices would likely have to rise even faster to meet the full cost of mining.

Looking further ahead, there was a level of consensus among Coal Industry Day speakers that South Africa could still expect another 20 to 30 years of reliance on coal.

“Between now and 2050, we have few options apart from coal for most of our energy generation,” she said. “Of course, there will have to be a change toward less carbon-intensive energy sources – and it is constructive that work has been initiated on charting a just transition towards renewables.”

The coal industry’s employment of about 90,000 workers– nearly a fifth of mining’s head-count – means that as many as half a million people are directly reliant on coal mining. These are among those who will be affected as the country moves toward a lower-carbon future, said Jeffrey. Eskom has recently completed comprehensive social impact studies for its Komati, Hendrina, Grootvlei and Camden power stations to assess the local impact of closure. Closing these plants could have devastating effects on direct and indirect employment in these areas.

“While power stations like Komati are relatively small, it is a good place to start,” she said. “It is vitally important that practical ways are found to transition away from coal while not leaving communities stranded.”

The challenge, she pointed out, was that the pace of South Africa’s transition was going to be slower than the climate change deadlines being pursued by developed countries. It was to be expected that developing countries will be looking for more time to make the necessary changes in line with global commitments.

 

Words: 655

About Lesley Jeffrey

Lesley has over 35 years’ experience in coal geology. She specialises in all aspects of geology related to coal; this ranges from exploration and greenfield studies to the initiation of mining and has been involved in the design, implementation and management of coal exploration programmes, the geological assessment of coal deposits, computer modelling of tabular ore bodies, particularly coal, coal quality assessments and coal resource/reserve estimation. Lesley has carried out coal feasibility and due diligence studies and compiled Competent Person Reports; she has undertaken coal model and resource estimation audits, as well as geological assessments. She is a registered professional natural scientist with SACNASP and recognised as a Competent Person (coal). She is a Fellow of the GSSA and served on the editing committee for the second edition of SANS10320, the South African guide to the systematic evaluation of coal exploration results, coal resources and coal reserves.

 

 

About SRK

SRK is an independent, global network of over 45 consulting practices on six continents. Its experienced engineers and scientists work with clients in multi-disciplinary teams to deliver integrated, sustainable technical solutions across a range of sectors – mining, water, environment, infrastructure and energy. For more information, visit www.srk.co.za

 

Blanket mine shelves Glen Hume plan

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Blanket mine shelves Glen Hume plan

Blanket Mine’s parent company, Caledonia Mining Corporation Plc, has shelved its GlenHume property project due to “disappointing exploration results.”

On December 11 and 17, 2020, Caledonia announced it had acquired an option over the Glen
Hume property and Connemara North respectively.

While exploration at Connemara North will continue, the mining concern will no longer continue with Glen Hume as it does not meet the company’s strategic requirements in terms of size, grade and width, but will consider further investment opportunities in Zimbabwe.

Caledonia chief executive officer Steve Curtis said this had a knock on effect on the company’s net profit.

“Net profit was adversely affected by the impairment of the Glen Hume exploration asset following the board’s decision not to proceed further with this project because the property does not meet Caledonia’s strategic requirements in terms of size, grade and width,” he said commenting on performance for the second quarter to June 30, 3021.

During the quarter gross revenues rose 31 percent to US$30 million from US$22.9 million achieved in the second quarter of 2020. Gross profit was US$13,9 million, a 51 per cent increase on the $9,2 million in Q2 2020. Earnings before interest, tax, depreciation and amortisation (EBITDA) — excluding asset impairments, net foreign exchange gains and losses and export incentives — doubled to US$14,0 million. On-mine cost of $715 per ounce was achieved from US$811 per ounce in the prior year comparable quarter. According to the group, all-in sustaining cost (“AISC”)1 excluding export incentives of US$933 per ounce was recorded, a decline from the US$1,075 per ounce achieved in the comparable period.

Adjusted earnings per share (EPS) came in at US62,6 cents from US36,8 cents. Net cash from operating activities surged 216 percent to US$12,7 million while net cash and cash equivalents rose 43 percent to US$16,7 million.

In terms of production, 16,710 ounces of gold was produced in the quarter, which was 24 per cent higher than the 13,499 ounces produced in the same period in 2020 and a new production record for a second quarter.

For the six months to June 30, 2021, Blanket Mine produced 29,907 ounces which was 8 percent higher than the 27,732 ounces produced in the first half of 2020.

Over 165,000 tonnes of ore were mined and milled in the quarter, which is a new production record for any quarter and reflects the contribution of the Central Shaft, which was commissioned at the end of March 2021 and the build-up towards the target of 80,000
ounces per annum from 2022 onwards.

In July, production was 5,995 ounces, which is a further increase in average monthly production and demonstrates that Blanket is on-track to achieve its production guidance of 61,000 — 67,000 ounces for 2021.

“This has been a strong Quarter and these results have left us well placed to achieve our guidance of between 61,000 — 67,000 ounces for the year.

‘‘Our immediate strategic focus continues to be to increase production to 80,000 ounces in 2022, while undertaking further exploration and development with the objective of extending the life of mine beyond 2034 thereby safeguarding and enhancing Blanket’s longterm future. Caledonia will also evaluate further investment opportunities in Zimbabwe and elsewhere.

“Excellent production was achieved without compromising on safety. During the quarter Blanket passed the milestone of achieving two million fatality-free shifts,” said Curtis.

Meanwhile, its solar project, which is expected to provide approximately 27 per cent of Blanket’s average daily electricity usage is now in the procurement phase and project completion is expected in April 2022.

 

 

Business Weekly

Zim to audit US$1.3bln oil pipeline’s viability

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Zim to audit US$1.3bln oil pipeline’s viability

Zimbabwe will conduct a full feasibility study first before executing a US$1.3 billion second oil pipeline partnership project with United Kingdom firm, Coven Energy Limited, linking Mozambique’s Beira Port and Harare, according to a senior Government official.
Secretary for Energy and Power Development Dr Gloria Magombo, said in an interview on Thursday that following the agreement with Coven, a full study would be conducted to determine viability of a plan to make Zimbabwe a regional fuel hub.

However, this comes at a time the world was moving to phase out fossil fuel powered automobiles in favour of EVs, with other vehicles manufacturing giants and governments already having set deadlines as early as 2025 to phase out production of combustion engines.

But, given that in the first of H1 2021, a total of 55 oil and gas discoveries were made globally with conventional oil and gas resources dominating the discoveries landscape, and there is probably huge scope for Zimbabwe to venture into such a massive project.

Among regions, South America and Asia were the top regions globally, each with 10 oil and gas discoveries in H1 2021. Among countries, Norway led globally in terms of count of discoveries in H1 2021 with nine according to statics.

As such, Dr Magombo said Zimbabwe already had adequate capacity for domestic fuel supply, and so the second pipeline linking Beira Port and Harare was targeted at regional markets in the north and some parts in the south.

The full bankable feasibility study, Dr Magombo said, would look at number of areas, including future demand for fuel and developments in technology, more specifically expected impact of a global transition to electric vehicles.

Earlier on Wednesday, Informational, Publicity and Broadcasting Services Minister Monica Mutsvangwa, told a post-Cabinet briefing that the State-owned National Oil Company of Zimbabwe had partnered the UK private firm, Coven, for the oil pipeline project.

Mutsvangwa also stressed the project would make Zimbabwe a regional hub for refined petroleum supplies to landlocked SADC countries, while Dr Magombo indicated that northern parts of South Africa would also be in focus.

“The project will result in the National Oil Company of Zimbabwe (Pvt) Limited and Coven Energy entering a 50-50 public private partnership,” she said, adding the project will create new jobs, reduce traffic congestion and generate forex for Zimbabwe.

On its website Coven Energy defines itself as a company that comprises a group of experienced engineers who focus on creative solutions for oil and gas infrastructure projects.

The company says it has previously undertaken projects in South Africa, various parts of West Africa, Indonesia, Abu Dhabi, Kuwait, Saud Arabia, Mexico and Italy among others.

Mutsvangwa said the oil pipeline from the Mozambican port city to the capital Harare will be built over four years, at an estimated cost of US$1.3 billion. The partnership will be for a period of 30 years.

Many industry observers believe the world may have already passed the tipping point where sales of electric vehicles (EVs) could very rapidly overwhelm petrol and diesel cars.

Jaguar plans to sell only electric cars from 2025, Volvo from 2030 and last week the British sports car company Lotus said it would follow suit, selling only electric models from 2028.

General Motors says it will make only electric vehicles by 2035, Ford says all vehicles sold in Europe will be electric by 2030 and VW says 70 percent of its sales will be electric by 2030.

More chilling is the fact that many governments around the world are setting targets to ban the sale of petrol and diesel vehicles in order to give even more impetus to the process of transitioning to EVs.

Dr Magombo said “there will be a full feasibility, which will look at the market, especially the regional market, because at national level we have adequate capacity”.

 

 

 

 

 

Business Weekly

Reconsider the blanket ban on riverbed mining: Mkaratigwa

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Reconsider the blanket ban on riverbed mining: Mkaratigwa

Mines Parliamentary Portfolio Committee Chairman Honourable Edmond Mkaratigwa has recommended for the government to conduct a pilot study instead of a blanket ban on riverbed mining.

By Shantell T Chisango

A pilot study can be defined as a ‘small study to test research protocols, data collection instruments, sample recruitment strategies, and other research techniques in preparation for a larger study, whereas a blanket ban refers to a ban that applies to or affects all or the majority of a given class of people or things.

“Riverbed mining has been banned in Zimbabwe, but we recommend that the government conduct a pilot study instead of a blanket ban,” said Mkaratigwa.

Honourable Mkaratigwa went on to say that tension has been rising between the government and miners regarding the issue of riverbed mining.

“There is a tug of war between miners and the government and to find common ground.”

“Currently, there has been a report on riverbed mining in Mutevekwi River located just outside the mining town along Shurugwi-Zvishavane highway”.

A while ago Environmental Management Agency (EMA)  issued the Musasa mining syndicate in Shurugwi with a seven-day ultimatum to rehabilitate the environment after the company started operating without the mandatory environmental impact assessment certificate.

The Honourable member of Parliament stated that the existence of miners who still practise riverbed mining can stand as a way in helping the government when framing the policy towards the issue.

“As it is happening in those rivers, it should scientifically help the government decision making process for policy framing.”

In addition, the Director of the Centre for Natural Resource Governance (CNRG) Farai Maguwu has condemned miners who practise riverbed mining in the name of desiltation.

Desilting is the removal of fine silt and sediment that has collected in a river in order to restore its natural capacity, without widening or deepening the river, however, indiscriminate desilting can cause adverse impacts on a river’s ecology and flow.

“This is not desiltation, it’s MINING!,” Maguwu said these words making reference to the pictures of the Mutevekwi River that has been adversely affected by riverbed mining.

Adding on, Mkaratigwa said he is, expecting the contextualised results feedback which has to help chart the Zimbabwean course so riverbed mining may be stopped once and for all.

Worker dies at High Standard Mine

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Worker dies at High Standard Mine

The Zimbabwe Republic Police (ZRP) has confirmed an accident that occurred at High Standard Mine in Gwanda where a worker slipped from a pulley and fell into a shaft and later died.

Anerudo Mapuranga

The Police through their Official Twitter handle said the victim sustained serious head injuries and was carried to Gwanda Provincial Hospital he succumbed.

“Police in Gwanda recorded a mine accident which occurred at High Standard Mine, Gwanda. A mine worker slipped from a pulley and fell into a shaft.

“The victim sustained serious head injuries and was ferried to Gwanda Provincial Hospital where he later died.  Investigations are underway,” the Police said.

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