Mining ZimbabweLatest Mining News, Policy and Industry Updates

THE Zimbabwe Power Company (ZPC) has surpassed its production target for the second quarter by 11,2 percent, generating 2,162 Gigawatts per hour against the targeted 1,944GWh.

In an update for the quarter under review, the power utility indicated that Zimbabwe’s biggest power plant, Kariba Hydro-Electric Station, accounted for 70 percent of electricity generated in the second quarter.

“In the period under review, ZPC sent out 2,162GWh against a target of 1,944GWh thereby surpassing the target for the second quarter by 11,2 percent.

“Kariba Power Station contributed 70 percent of the total energy production in the second quarter. Hwange Power Station contributed 28 percent while the small thermals contributed two percent to the total energy production,” said the power utility.

The 2021 second quarter output was 56,18 percent above that of the same period in 2020. Year to date, ZPC sent out 3,991GWh, thus, surpassing the year to date by 25,22 percent.

“Although the small thermals missed their quarterly target by 34,15 percent, there was a notable improvement in generation at Hwange Power Station during the quarter as units 3 and 6 returned to service from long outages.

“Relief came from Kariba Power Station, which was ramped up to compensate for the low generation at the small thermals hence contributing to the increase in output against the set target,” said ZPC.

It said the US$1,5 billion Hwange Power Station Units 7 and 8 expansion projects closed the quarter at 67,97 percent complete.

The expansion project, which entails the addition of Units 7 and 8 with each unit expected to generate 300MW, was affected by the Interim Payment Certificates (IPC) outstanding payments as well as the Covid-19 pandemic.

“However, notable progress was noted in the period under review despite the challenges being faced.

“The advance payment guarantee and confirmation of full funding was received for the upgrading of Deka. Corporate authorisation to proceed with the project was also granted and the contractor has since started topographical surveys on site,” said ZPC.

“Occupational health and safety are of utmost priority in the workplace and ZPC strives to achieve the set target of zero harm to people, plants and environment.”

In view of this, the company continues to battle with the effects of the Covid-19 pandemic and in a bid to curb the spread of the disease in the workplace, ZPC was providing employees with Personal Protective Equipment as well as regular disinfection of pool vehicles and offices. 

The Chronicle

The Zimbabwe Miners Federation (ZMF) has implored  women with disabilities to fully participate in mainstream mining activities.

ZMF secretary for people with disabilities, Prazini Jakata said  they should take advantage of the new policy.

“No one has been left out. ZMF has made it simple for people with disabilities to be involved in mining. They have put representatives for people with disabilities from provincial to national executives.

“And they have also assisted in the change of their constitution to accommodate people with disabilities,” Jakata said.

He added: “What is only there with young women with disabilities in mining is that they fear to travel a long journey they never travelled. It is just out of what they hear from the corridors of those who have failed to achieve anything.

“Personally I would encourage young women to take up mining because ZMF will always protect them. They will always try to make life easier for them.

“ZMF  is the first organization to recognise disability in its own structures as demonstrated by our inclusion by the constitutional amendment as witnessed at the Zimbabwe International conference centre on March 16,2021.”

He said some provinces under the ZMF  have  syndicates for persons with disabilities.

“When the president launched the National Disability policy on June 9, 2021, ZMF already catered for persons with disabilities.

“As we speak right now I am sure in Masvingo we have 51 syndicates for persons with disabilities. So if young women with disabilities remove that fear from themselves they will find themselves living large because they will be having resources as they extract minerals from the ores,” Jakata said.

He said people normally have negative perceptions when it comes to small-scale mining.

“For some reasons people normally say negative things about mining or what they call kukorokoza. We can make it as people with disabilities. What is needed is the prospector’s license at the first stage. Once you have the license you automatically acquire or peg mining claims anywhere in Zimbabwe,” he said.

Jakata said there were sponsors who were willing to sponsor small-scale miners in the country.

“None will be left out whether it’s women or men. There are a lot of packages that ZMF holds including reduction of membership fees, tagging fees, the CBZ bank has got other partners and a host of other potential sponsors who are willing to assist us to pass through hurdles that we fear. You can get a prospector’s license alone or form a syndicate and a mining claim of two or more people. Anyone who is a citizen of Zimbabwe and is above 18 can get the prospectors’ license,” said.

Business Times

In its inaugural environment, social and governance (ESG) report covering its 2020 operational performance at its Blanket mine, in Zimbabwe, London-listed Caledonia Mining Corporation has highlighted some of its key achievements.

These include that 99 percent of its 1 671 employees and contractors originate from Zimbabwe, the majority of whom live in a dedicated mine village, while 25 percent of suppliers were from Zimbabwe.

The company’s employees own 10 percent of the mine through a trust, which currently receives 20 percent of Blanket’s attributable dividends and is represented on Blanket’s board of directors. The trust has facilitated US$5.1-million in dividends to the community from 2012.

Caledonia’s corporate social responsibility (CSR) programme at Blanket focuses on education, health, agriculture, women and youth empowerment, the environment and charity.

The company’s CSR investments in 2020 totalled $1.7-million, while its taxes and royalties payment to government totalled US$12.5-million.

The Zimbabwean government owns 16 percent of the Blanket mine through its National Indigenisation and Economic Empowerment Fund, which currently receives 20 percent of the mine’s attributable dividends and is represented on the board of directors.

The company paid out US$4.5-million in dividends in 2020, after generating a gross profit of US$46.6-million from the sale of 57 899 oz of gold.

“The long-term success of our business relies on mutually supportive, open and constructive relations with our local communities,” CEO Steve Curtis states in the ESG report.

He comments that Caledonia in 2020 enhanced its focus on ESG with the constitution of a new board-level ESG committee.

In terms of its environmental impact, Caledonia is building a 12 MW solar farm, which is expected to be operational sometime next year and will provide 27 percent of the mine’s daily electricity needs.

The Blanket mine’s power consumption totalled 65.9-million kilowatt-hours in 2020.

Of the mine’s 2.2-million cubic metres of water used in 2020, 23.4 percent of it was pumped from mine workings and the balance was drawn from a nearby dam.

In terms of safety, COO Dana Roets reports that the company’s Nyanzvi initiative, which was launched in 2018, has continued to ensure reduced total accidents by 60 percent from 2017 to 2020.

In 2020, Caledonia only had one positive case of Covid-19 at Blanket, but it has subsequently reported 46 positive cases, with one fatality as a result of the virus. The company in March this year committed to procure vaccines for all Blanket employees and their families.

Caledonia had, as at the end of 2020, 12.5 percent female representation on the Blanket board, 25 percent women in senior management and 2 percent female employees.

Curtis says the company continues in an evolving journey towards a more diverse workforce, and safer and cleaner operations.  –

Mining Weekly

CALEDONIA Mining Corporation Plc, which owns Blanket Mine in Gwanda, has released the inaugural Environmental, Social and Governance (ESG) report for the Gwanda-based gold producer.

The report covers the reporting period January to December 2020. In a statement, Caledonia chief executive officer, Mr Steve Curtis was quoted as saying: “I am pleased to present this inaugural ESG report, which constitutes our first formal communication on Caledonia’s approach to ESG topics.

“In the report we focus on five key pillars, which define our strategy.  We believe this inaugural report is an important step in providing an update on our performance in this vital area of the business and will therefore endeavour to continue to develop our ESG communications.”

The Chronicle

Mineral resources in Zimbabwe are vested in the President. The principal Act is the Mines and Minerals Act (Chapter 21:05). There are other Acts and regulations as reported in my previous articles on mining.

Prospecting

For one to prospect for minerals he or she needs a prospecting licence. The holder of a prospecting licence will have the following prospecting and pegging rights subject to sections 21 and 368:

The right of prospecting and searching for any minerals, mineral oils and natural gas on land open to prospecting, but not the right of removing or disposing of any mineral discovered. Allowed exceptions are for the bona fide purpose of having it assayed or of
determining the nature thereof or with the written permission of the mining commissioner.

The right of pegging of one block of precious metal claims, one block of precious stones claims or one block of base mineral claims.
Section 27(2) prohibits drilling or excavation work at the surface or underground unless done on the strength of exclusive rights.

Land open to prospecting

The following land is open to prospecting:

All State land and Communal land, All private land on which is reserved the right to all minerals or the power to make grants of 
the right to prospect for minerals.

All land held by any person under any enactment or agreement whereby such person is entitled to obtain from the State title thereto on the fulfilment by him of the conditions prescribed by such enactment or agreement.

Duration of prospecting licence

According to section 23 of the Act a prospecting licence shall be valid for two years. However registration of a prospector is valid for 5 years.

Acquisition of prospecting licence

A prospecting licence is acquired in terms of section 20 of the Act. A person over 18 years of age who is a permanent resident of Zimbabwe or any duly appointed agent of such person may take out at the office of any mining commissioner one or more prospecting licence.

The applicant has to pay the prescribed fee.

On making application for a prospecting licence the applicant shall furnish to the mining commissioner the following:

Applicant’s full name
Permanent postal address

Such information as the mining commissioner may require.

The mining commissioner may issue or refuse to issue the prospecting licence. Where the mining commissioner refuses to issue the licence he or she should forthwith report the refusal to the Secretary (in the Ministry).
The Secretary shall refer the report to the Minister. If so instructed by the Minister the Secretary will direct the mining commissioner to issue the prospecting licence.

In terms of section 21 an approved prospector may be appointed as a representative of a prospecting licence holder. Such a representative shall act under the prospecting licence to which his appointment relates solely for the benefit of the licence holder.

Sale is prohibited
The sale of a prospecting licence is prohibited by section 25.

Ground not open to prospecting

Section 31 of the Act applies. There is ground on which a holder of a prospecting licence or any special grant is not allowed to carry out prospecting operations. Various scenarios are covered such as:
Private land
Any mining location other than one in respect of which he or she may have acquired the exclusive right of prospecting under such licence or special grant or exclusive prospecting order.
Within surveyed limits of any city, town, township or village, Certain land outside surveyed limits of any city, town, township or village.
Upon any Communal land occupied as a village without the written consent of the rural district council established for the area.

Notice of intention to prospect
In terms of section 38, every person, before exercising rights associated with the prospecting licence or special grant to carry out prospecting operations shall give notice of hisor her intention to do so.

Such notice shall be valid for 120 days. A notice given by a holder of an exclusive prospecting order or a special grant to carry out prospecting operations shall be valid for the period of that order or special grant.

Prospecting notices

According to section 41 any holder of a prospecting licence who wishes to drill or excavate, whether at the surface or underground, shall post a notice to be called “prospecting notice” on the ground open to prospecting.

Discovery of minerals or precious stones
Section 42 applies. If a holder of a prospecting licence discovers within the area covered by his prospecting notice, any ore or deposit of precious metals or precious stones, he or she shall mark the point of such discovery.

Pegging of precious metal, precious stones or base mineral blocks is done in terms of section 43.

Registration

Mining sites are registered in terms of section 48 and blocks in terms of section 45.

Disclaimer
This simplified article is for general information purposes only and does not constitute the writer’s professional advice.

Godknows Hofisi, LLB(UNISA), B.Acc(UZ), CA(Z), MBA(EBS,UK) is a legal practitioner / conveyancer with a local law firm, chartered accountant, insolvency practitioner, registered tax accountant, consultant in deal structuring, business management and tax

Controversial Israeli businessman, Luka Ignatius Fabris, is setting up a multi-million-dollar mineral processing plant at Tafuna Hills in Shamva district, Mashonaland Central.

Fabris confirmed the development saying he was undertaking the project with some partners.

“This is a processing plant for various minerals including gold and as you are aware this project has different partners. We are still in the initial stages of the project. The project is at Tafuna Hills in Mashonaland Central. I cannot divulge the size of the investment at the moment,” Fabris said.

Fabris has been subject to controversy.

In 2018, the Reserve Bank of Zimbabwe (RBZ) froze a US$1m deposit held by a local bank amid suspicions it could be proceeds from an illegal gold deal involving 27 kilogrammes of bullion exported by a company listed in President Emmerson Mnangagwa’s externalisation list released that same year.

The gold was allegedly exported from Zimbabwe by Fabris, a director of Fabris Construction and Spartan Security (Pvt) Ltd and delivered to African Gold Refinery — which focuses on gold processing and trading — in Uganda.

The construction of a processing plant by Fabris comes at a time when the RBZ has moved in to plug gold leakages by introducing a cocktail of incentives.

Recently, the RBZ introduced a 5% incentive for those who deliver above 20kg a month.

In addition, the RBZ cut royalties and the cost of importing cash on small scale miners to improve gold production in the country amid revelations the economy was losing over 2.5 tonnes per month to smuggling.

The central bank also allowed small scale miners to sell gold at the prevailing international gold price.

This increased investor appetite for establishing state-of-the-art processing facilities.

Gold deliveries to the country’s sole buyer and marketer of the yellow metal more than doubled to 2.92 tonnes in June from 1.409 tonnes during the same period last year on incentives as experts say the upward trajectory would be maintained throughout the year.

In a bid to boost production, gold miners also want financial support through gold loans to boost production of the yellow metal as the government targets an output of 100 tonnes by 2023.

Government has set an ambitious gold production target of 100 tonnes by 2023. Gold is expected to contribute at least US$4bn annually towards achieving the mining sector’s target of S$12bn industry by 2023.

Government is also working with various investors to capacitate small to medium scale gold miners.

Gold production declined over the past two years but miners have remained optimistic of the country’s potential to achieve its target of producing 100 tonnes annually.

Gold production had dropped from 35 tonnes in 2018 to around 20 tonnes last year due to an unfavourable pricing regime that has fuelled smuggling of the yellow metal.

A number of mining and fiscal measures have since been adopted by the government to provide a window of opportunity to revive production and grow the sector.

These included the review of the foreign currency retention ratio in a bid to boost production.

Business Times

THE ongoing asset forensic audit at the defunct steel giant, Ziscosteel, is nearing completion with most of the assets having been accounted for, the company’s public relations manager, Ms Patricia Muzenda, has said.

The Government embarked on a forensic audit at the defunct steel company to ascertain the losses at the amid reports of looting of assets by a well-orchestrated group comprising of former employees and security guards.

“Most assets have been identified through an asset audit that was recently carried out and the assets register is being updated accordingly,” said Ms Muzenda in a statement.

“The issue of security at the plant has been addressed through the number of security personnel and providing them with proper uniforms and equipment such as motorcycles for patrolling around premises and firearms. 

“As a result of cases and theft and vandalism of equipment have significantly reduced over the last six months.”

The Chronicle