Mining ZimbabweLatest Mining News, Policy and Industry Updates

INVICTUS Energy, the Australian firm that is exploring for oil and gas in north-eastern Zimbabwe, says it has made significant headway in the data processing phase of the project.

The firm said it was expecting final data next month from Canadian firm, Earth Signal Processing (ESP), whose results would be crucial in determining the next phase of development following several years of extensive groundwork.

Invictus is expecting to drill the first of its two test wells later this year, which will be crucial in determining the quality and quantity of oil or gas found in the area.

“Concurrent processing of both vintages of data will result in a contractor-consistent and process-consistent data set. This will ensure there are minimal irregularities between the data sets and provide a comprehensive and confident basis for seismic interpretation,” the statement said.

“The quality control of the post-stack migration data has been completed and is already showing significant improvements in the overall seismic data quality. The CB21 survey data has provided evidence of multiple trap geometry configurations which provides a target rich hydrocarbon environment for the upcoming drilling campaign. As well as improved structural clarity of faults, there are multiple anomalies of interest that have been observed across the Muzurabani rospect.”

NewsDay

Alex Mhembere has been at the helm of the Zimplats team as chief executive officer (CEO), since October 2007.

Zimplats is in the business of producing platinum group and associated metals and is a subsidiary of one of the world’s leading producers of platinum group metals (‘PGMs’), the South African-based Impala Platinum Holdings Limited (Implats).

PGMs are precious metals, which frequently occur together in nature as constituents of various ores and minerals and they include platinum, palladium, rhodium, iridium, and ruthenium. These metals are also known as “green metals”.

Platinum and palladium are vital components in autocatalytic converters which play a significant role in controlling air pollution by reducing emissions in both gasoline and diesel engines.

PGMs are recyclable, ensuring not only a reduction in waste but also sustainability of supply. Their excellent resistance to corrosion and high melting points make them ideal metals for a variety of industrial uses.

They are used in the development of fuel cells which reduce air pollution considerably, while curtailing demand for fossil fuels.

Zimplats operates five underground mines in Mhondoro-Ngezi, which supply ore to three concentrator modules (two at Ngezi and the third one at Selous). Production from the mining operations is processed by the three concentrators and then further refined at the Selous Metallurgical Complex (‘SMC’) in Selous where the smelter is located.

Ore production in the year ended June 2021 was 7,2 million tonnes. Zimplats’ purpose

Zimplats’ purpose is to create a better future through the way it does business, the metals it produces and superior economic performance, to improve the lives of future generations.

Its vision is to be the most valued and responsible metals producer, creating a better future for its stakeholders, while its values are respect, care, deliver.

Team Zimplats

Zimplats has a workforce of 6 692 comprising 3 549 own employees, and a further 3 143 contractors.

The company strives to create a strong employee value proposition (EVP) which aims to address compensation and benefits, career, work environment and culture issues. These factors are core to creating an enjoyable and caring workplace with a sound wellness programme, that includes mental health, and an environment, which also offers real growth opportunities to the team.

Safety critical to Zimplats’ work culture

The promotion of a safe and secure working environment for all workers is central to the way in which Zimplats does business.

The company strives to create a healthy and safe work environment for its employees, contractors, host communities and other stakeholders.

To this end, the company has implemented and maintained international standards and is certified to ISO14001:2015 (Environmental Management System), ISO9001:2015 (Quality Management System) and ISO45001:2018 (Occupational Health and Safety Management System). These standards provide a framework for sound occupational health and safety and environmental management.

Commitment to creating shared value for all our stakeholders

Zimplats’ commitment is to create long term shared value for all its stakeholders in a systematic manner. The company accepts the importance of sustainable development and embraces the sustainable development goals in a bid to conduct its business as a responsible citizen.

Its strategy on social performance aligns with its purpose of creating a better future for its stakeholders through the way it does business and the positive contribution it makes to society.

Zimplats focuses its investment in social development initiatives on education and skills development and on local enterprise, socio-economic and infrastructure development.

Community development initiatives are carried out within the context of the overall Zimplats business strategy which emphasises the importance of engagement, its values of care and respect, and in managing stakeholder expectations, with emphasis on those areas that affect the social licence to operate.

Zimplats and the Sustainable Development Goals

The United Nations Sustainable Development Goals (UN SDGs) provide guidance on how business can contribute effectively to sustainable development. The challenges highlighted by the UN SDGs led to an agreement on a common approach to addressing economic, social, and environmental concerns. Zimplats utilises the SDGs to establish an effective framework to promote sustainable development.

As a mining company, Zimplats is driven to create value in a manner which ensures that communities are in a better position than they were historically. Alignment to the UN SDGs assists in prioritising those goals and targets that the company believe are most important to its business and which create value for its stakeholders.

Local supplier development

Zimplats continues to establish and review its value chain system to create value for stakeholders whilst also positively impacting the community and the environment through various capacity development programmes. The company, since 2013, has implemented a structured Local Enterprise Development (LED) programme to capacitate and grow local small and medium enterprises (SME’s) through inclusive procurement practices.

The programme currently has 22 LEDs who positively impact communities through job creation, skills development, investment in local infrastructure, and the overall establishment of thriving and healthy mine communities. The aim is to bring efficiencies associated with proximity for services, especially labour and other locally available  materials such as river sand and quarry stones for construction purposes thus reducing costs and delivery times. Services offered to LEDs by Zimplats to enhance their performance include training, capacity development, engagement, commercial and technical.

Underpinning Zimplats’ approach to local enterprises development are four fundamental principles:

. Sustainability: Going beyond compliance to support the development of thriving local communities, enabling their businesses to grow and develop markets beyond Zimplats.

. Economic enablement: Zimplats is committed to creating shared and sustainable value in local communities thereby promoting economic growth, employment creation, poverty eradication and improvement of quality of life.
iii. Sound governance: Sound business principles and good governance underlined all transactions.

Key is development of capacity to attain quality, delivery, service, business management systems and other technical requirements.

. Partnerships: Zimplats works in collaboration with major suppliers and original equipment manufacturers (OEMs), government, communities, and development institutions to create an enabling environment for local enterprises development. The objective is raising the standards of business processes within the LEDs to align with the Zimplats’ way of doing business and core values of care, respect and deliver.

Communities and social development initiatives

Zimplats is committed to effective social development. The company’s vision in this regard is to contribute towards the creation of sustainable livelihoods through self-sustaining and inclusive host communities by 2030.

The creation of shared value for all its stakeholders is a guiding principle for how Zimplats does business. The company’s success is intrinsically linked to the extent to which it creates value for its stakeholders, upholding the values of respect, care and deliver. Equally driven by these values Zimplats is committed to proactive engagement of all its stakeholders to  unlock value creating relationships.

Protecting the environment

Zimplats recognises and acknowledges that mining and processing operations have a potential to adversely impact the immediate and indeed the global environment in which we operate. It takes a risk-based management approach that actively seeks to avoid, minimise, and mitigate negative environmental impacts throughout its operations and in all its processes. Zimplats subscribes to the principle of sustainable development which states that any development must meet the needs of the present generation without compromising the ability of future generations to meet their own needs.

The company has an environmental management system (EMS) built on the ISO 14001:2015 framework.

The framework is designed to facilitate the attainment of the following objectives:

Ensuring compliance with environmental legislation and other non-statutory requirements

Promoting responsible water stewardship by minimising water use and water pollution

Responding to climate change risks and opportunities and promoting responsible energy management

Minimising negative impacts on air quality

Managing and minimising waste streams

Promoting responsible land management and bio-diversity practices Zimplats strives to integrate environmental management into all aspects of the business with the aim of achieving sustainable world class environmental performance.

The Sunday Mail

Zimbabwe is forecast to have raked in US$6 billion in mineral exports last year, which is a significant milestone in current plans to grow the sector’s contribution to the economy to US$12 billion by 2023, the Government has said.

The sector accounts for more than 60 percent in foreign currency receipts annually and 13 percent of Gross Domestic Product (GDP).

Mines and Mining Development Minister Winston Chitando said investments by mining companies in recent years had boosted output and placed the country firmly on course to meet the envisaged target.

Growing investments are mainly attributed to deliberate policies meant to smoothen the operating environment.

In a presentation at the Rodgers Alfred Nikita Mangena Barracks (formerly Zimbabwe National Defence University (ZNDU) last week, Minister Chitando said mining had grown from US$2,7 billion in 2017 to US$5,73 billion in 2021.

“The final figures will be announced, but we will have about US$5 billion generated by the mining sector in 2021. US$12 billion was structured in a way that looks at some of the lowhanging fruits, which had potential to give immediate returns, then some projects which would take medium term to implement,” he said.

“ . . . The fact of the matter is every day we are moving towards the attainment of US$12 billion by 2023. It will be achieved and it is being achieved every day.”

Over the years, lack of capital has been a major constraint in developing mining projects, but the situation has since improved owing to targeted policies by the Second Republic.

“What we have been lacking as a country is capital. We have the minerals; we have human capital. I have said it on many forums that there is no country in this world that has better human capital in mining than Zimbabwe.

“We do have the human capacity, something which has been demonstrated over years, but we lack focus on economic development, which enables capital to flow in.”

Sustained economic development, Minister Chitando added, was not an event, but a process that required serious planning and action.

“If there is a mine that requires five years to build, even if you are in a rush, you cannot do it in six months.

“So economic development is a process, not an event.

“The most important thing is to identify the process and start walking in the process,” he said.

A number of new projects are at various stages of implementation.

In terms of the US$12 billion target, US$4 billion is expected from gold, US$3 billion from platinum, US$1 billion from coal, US$1 billion from diamonds, US$1 billion from chrome, ferrochrome and carbon steel, US$500 million from lithium and the balance from other minerals.

The country has inherent potential in the sector since it has over 60 mineral occurrences.

For instance, it is home to the world’s second largest deposits of platinum group metals and is believed to have potential to supply a quarter of the total value of diamonds traded globally.

Recent official data shows that nickel mattes earned Zimbabwe US$1,14 billion, nickel ores and concentrates US$956 million, while semi-manufactured gold exports raked in US$1,36 billion in the eleven months to November 2021.

Unwrought platinum earned US$186 million.

The Sunday Mail

Gold producer RioZim could join the Victoria Falls Stock Exchange (VFEX), where miners are attracted by tax breaks offered for listing on the USD-denominated market.

A VFEX listing could ease part of RioZim’s problems, but not all of them.

RioZim is “seriously considering all options available to it under the legal framework of the country and will move in consonance with such opportunities,” Bloomberg quoted spokesman Wilson Gwatiringa as saying on Thursday. But, he added: “Any decision to list on the bourse would require shareholder approval, which has “neither been proposed or voted upon.”

VFEX Chief Executive Officer Justin Bgoni said the bourse expects more companies “especially in the mining sector,” to list.

If RioZim does go to VFEX, it would join Bindura Nickel, Padenga and Caledonia, the other miners that have listed there.

Among other tax incentives, companies that list on VFEX get to keep 100% of what they earn from any gold they sell above their average monthly output. The more gold they produce, the more they can earn from their exports.

The question will be whether RioZim can put itself into position to take advantage of the incentives.

A combination of ageing mines and a hostile foreign currency regime have hit the company’s gold output. RioZim temporarily shut down its mines in 2018 and 2019, protesting unremitted gold earnings and forex laws that compel miners to sell a portion of their sales to central bank in local currency.

RioZim vs Caledonia

The listing may ease a part of RioZim’s forex headache, but a bigger worry for the company is the state of its mines and the depleted resources they are sitting on.

RioZim was among Zimbabwe’s biggest gold producers just a few years ago. But its mines are old and break down often, while the quality of its ore is among the poorest of major players in the industry. This means RioZim may struggle to grow its output without additional capital investment and finding new resources.

A comparison with RioZim’s peer Caledonia shows what RioZim also needs; new capital from shareholders.

In 2020, RioZim’s three gold mines produced 1.2 tonnes, down 27% from 2019. In 2018, RioZim produced 1.79 tonnes.

Caledonia, meanwhile, now produces 1.9 tonnes from just its one mine, Blanket, up from 1.6 tonnes in 2020 and 1.5 tonnes in 2018. The mine produced a record amount of gold last year. Production guidance at Blanket for this year is roughly 2 tonnes.

Caledonia’s growth is due to investment in the new central shaft. It took Caledonia six years to deepen the Blanket shaft, using internally generated cash. From producing 54,512 ounces in 2018, Blanket is projected to hit as much as 80,000 ounces this year.

New resource

Through the quarter to the month of November, RioZim’s Cam & Motor mine processed low-grade ores. This saw production falling 31% from the same quarter in 2020. Renco Mine in Masvingo, which has suffered from low-grade ore for years, managed just 1% production growth in the quarter.

To fix its processing problems, RioZim has been looking to invest in a BIOX plant at Cam & Motor. This is a special plant which would allow the mine to treat refractory ore. This type of ore needs special bacteria to extract the gold from sulphides. The company had planned to complete the plant in 2021, but faced delays over cargo movements and forex.

However, beyond this, RioZim has not announced any plans to look for new ground to replace its tired resource. RioZim’s Dalny Mine showed the potential of adding more ground, when its quarterly gold output rose 31%, partly after it opened new open pit mining areas.

Meanwhile, Caledonia, fresh from completing the shaft deepening, is looking for new mines to open.

In September, Caledonia announced it was buying Pan African Mining’s Maligreen gold claims near Gweru. Maligreen is estimated to host an inferred mineral resource of approximately 940,000 ounces of gold. As a plus for Caledonia’s preference for low-cost mining, 76% of the inferred mineral resource there – or about 712,000 ounces – is shallower than 220 metres. This means that there is potential for an open pit mining operation.

Newzwire

THE Zimbabwe Miners Federation (ZMF) has engaged the Zimbabwe Energy and Regulatory Authority over increased power cuts which are affecting their operations.

ZMF chief executive officer Wellington Takavarasha told NewsDay Weekender that the power cuts lasting several hours were affecting their day-to-day operations.

“The power cuts, blackouts and load-shedding have greatly impacted negatively in terms of mining operations,” he said.

“You know electricity is used for the mining operations and also for health and safety issues in the mines. We use electricity for extractive equipment and also for processing equipment and when there is massive cuts it means there is reduced production.”

Power utility Zesa Holdings attributed the outages to ongoing maintenance works at major plants.

Recently, Zesa warned of more power cuts to allow the resumption of maintenance work at Kariba Dam.

Zesa this week said it requires at least US$17 million a month to import electricity to bridge the supply gap.

Former Wenela workers have continued to engage South Africa over terminal benefits and called for a memorandum of understanding between the South African government and Zimbabwe.

The former Wenela workers were exposed to harmful substances, which resulted in some of them contracting silicosis of their liver or tuberculosis during the time they worked at South African gold mines.

Ex-Wenela Miners Association of Zimbabwe president Lungelwe Mkhwananzi yesterday told NewsDay that they would be meeting South African authorities over their unclaimed
benefits.

“The meeting to claim these benefits was scheduled for December last year, but there were problems at the border due to COVID-19 protocols. It seems this meeting will continue to be postponed. This meeting was supposed to unlock money owed to the ex-miners.”

He said ex-workers from Botswana, Mozambique and Namibia among other countries sent their representatives to South Africa to claim their benefits.

Recently, the Ex-Wenela workers hailed the government exercise undertaken to determine the degree of injuries they sustained while working at South African mines, pending compensation.

The first phase of the exercise was carried out by the National Social Security Authority and covered three provinces, Bulawayo, Harare and Masvingo.

RioZim is weighing a listing on Zimbabwe’s Victoria Falls Stock Exchange, where trading is denominated in foreign currency, according to people familiar with the matter.

The nickel, gold and diamonds producer is “seriously considering all options available to it under the legal framework of the country and will move in consonance with such opportunities,” Wilson Gwatiringa, a company spokesman said Thursday via text message. Any decision to list on the bourse would require shareholder approval, which has “neither been proposed or voted upon,” he said.

RioZim would be among a growing number of mining companies such as Bindura Nickel Corp. and Caledonia Mining Corp. to list or plan to, attracted by the exchange’s tax exemptions on capital gains and the ability to repatriate funds from a country where foreign exchange is in short supply.

VFEX Chief Executive Officer Justin Bgoni said the bourse expects more companies “especially in the mining sector,” to list.

RioZim, which started as a small nickel and copper producer in the southern African nation in 1956, is currently listed on the Harare-based Zimbabwe Stock Exchange and plans to invest $450-million to expand its flagship Murowa diamond mine.

Mining weekly

CHINA’S usually quiet multinationals, controlling substantial interests in Zimbabwe’s economy, threw away courtesy and diplomacy on Sunday, standing up to rebuff “deplorable and groundless accusations” made by the civil society.

Twenty-seven Zimbabwean civic society organisations courted the Chinese firms’ ire after piling a raft of accusations, such as fuelling extensive economic inequalities in the southern African country, where the Chinese claimed they have lifted 100 000 people from unemployment after pumping billions of United States dollars to prop up Harare’s under fire economy.

The rift, a culmination of resentment that has been building up since confrontation erupted last year, marked the first bold move by NGOs to fight on behalf of Zimbabweans.

It follows communities’ red flag over muscle flexing by a string of Chinese miners accused of displacing villagers living close to lucrative chrome, gold and coal claims, the latest of which is the Dinde community in Binga.

But in a rare response to the widening criticism, the Chamber of Chinese Enterprises in Zimbabwe (CCEZ) blew back.

In its emotional response, the CCEZ, which represents some of the world’s biggest corporations, came close to admitting serious transgressions by its members, but quickly reminded the NGOs that “it is not within our space to correct perceived legal gaps or inadequacies in laws’ in the country.

“We strongly deplore and oppose groundless accusations that are malicious and driven by falsehoods,” the CCEZ hit back. Our member companies employ more than 100 000 local people throughout different sectors, worth billions in US dollars of investment.

“We have done this heeding the clarion call that, ‘Zimbabwe in Open for Business’ and in line with Zimbabwe’s aspirational targets such as achieving a US$12 billion mining economy by 2023 and Vision 2030 of achieving and upper middle-income economy by 2030.

“Instead of engaging in microphone diplomacy and manipulation of public opinion, anyone or any civil society can resort to legal means if any of our member companies does anything illegal.

“People, who engage in microphone diplomacy, always have their clandestine political agendas,” said the CCEZ.

It said it stood by President Xi Xinping’s undertaking to work with Zimbabwe.

Allegations against Chinese investors are varied.

Apart from alleged human rights violations, anger has mounted over what unions claim are unfair labour practices and environmental degradation.

Chinese firms have denied wrong doing.

On Sunday, they dared their adversaries to initiate “inspections by any relevant government departments”, instead of orchestrating “malicious accusations and negative publicity with xenophobic undertones that are being systemically thrown at us”.

It is not only in Zimbabwe that the Chinese have thrown away soft diplomacy.

As accusations mounted across advanced economies that negligence by China had sparked the explosion and spread of the COVID–19 pandemic, Beijing’s diplomats replaced courtesy with intimidation.

Now increasingly called “Wolf Diplomats” in some countries, Beijing’s emissaries have mutated into combative defenders against accusation over the pandemic, as they explain and defend the Asian economic giant’s foreign policy.

On Sunday, the CCEZ said in spite of the massive opposition  in Zimbabwe, it’s members — controlling “billions” in investments, were still determined to help Zimbabwe ride of its myriad crises.

“Though we are deeply concerned about the proliferation of malicious accusations…, CCEZ remains resolute in our resolve to foster good co-operation between the two beautiful countries of China and Zimbabwe and our people,” the chamber said.

NewsDay