Mining ZimbabweLatest Mining News, Policy and Industry Updates

WILDLIFE conservationists have called on communities to ensure win-win situations for humans and nature in order to reduce human-wildlife conflicts.

This was said on Monday by African Wildlife Foundation (AWF) country director Olivia Mufute in Harare during a wildlife and environment training workshop attended by journalists from Zimbabwe, Botswana, Mozambique and Zambia.

Mufute said as the race to extract Africa’s natural resources heated up, there should be a win-win situation for humans and nature.

Africa is home to a broad variety and abundance of the world’s biological and natural resources and the world’s biodiversity hotspots.

However, the over-exploitation and destruction of natural resources, including wildlife, is said to paint a grim picture of lack of efficient conservation methods.

“Africa’s natural world is declining at an unprecedented rate in millions of years. The way we produce and consume food, and the choice of energy, and the blatant disregard for the environment entrenched in our current economic models is pushing us to the limits of the continent,” Mufute said.

“Despite the importance of biodiversity to our livelihoods and wellbeing, our quest for socio-economic development has caused tremendous loss of biodiversity. The rapid economic and human population growth has come at a very high ecological cost.

“While efforts are being made to attract huge investments and financial capital, the same care is often not being taken to preserve our natural capital.”

Mufute added: “Agricultural expansion, new settlements, infrastructural development, and resources extraction are driving the degradation of forests, rivers, and grasslands. The resulting habitat loss and fragmentation threatens ecosystem goods and services upon which both people and wildlife depend,” she said.

The World Economic Forum estimates that human activities have caused loss of approximately 83% of all wild mammals and half of all plants.

Since the 19th century, there have been concerted efforts towards the conservation of Africa’s natural resources.

Newsday

Zimbabwe is bullish on reaching over 28 tonnes of the gold output this year following a good run averaging three tonnes per month since June.

In June 2021, the half-year gold output was 9.948 tonnes. Output has surged to over 12 tonnes within four months to 22.024 tonnes due to a 5% incentive on deliveries and timeous payments.

Fidelity Printers and Refiners acting general manager Peter Magaramombe told Business Times that the incentive has led to an increase in deliveries.

“As of October 31 2021 gold output surged 37% to 22.024 tonnes from 16.018 tonnes during the same period last year due to friendly policies put in place by the Reserve Bank of Zimbabwe. With an average rate of three tonnes of gold per month, we are expecting to breach 28 tonnes by the end of December,” Magaramombe said.

From the 22.024 tonnes delivered to FPR, small scale miners accounted for 12.95 tonnes against the 9.07 tonnes by primary producers.

According to the official statistics obtained from the Reserve Bank of Zimbabwe, the 28 tonne output will be the third-best output in the history of Zimbabwe.

To date, the 35 tonnes achieved in 2018 is the highest output followed by 29.4 tonnes in 2019.

Experts say Zimbabwe’s output would have surpassed 36 tonnes, had the mining policies been relaxed earlier.

Gold deliveries went up 123% to 3.051 tonnes  in October 2021 against 1.36 tonnes recorded during the same period last year.

The October output will be the third time Zimbabwe has surpassed the three tonne mark.

Experts said the country will surpass last year’s gold export receipts due to an increase in gold deliveries and firming international gold prices.

In June this year, RBZ scrapped taxes on small scale miners, began timeous payments and paid the prevailing international gold prices.

Those who deliver over 20 kilogrammes per month are given an extra 5% incentive and this has pushed volumes.

Though gold smugglers are still there, their role has been greatly reduced.

Smugglers were believed to be swooshing close to 2.5 tonnes every month but with new policies in place, the majority of them are moving out of the country in search of greener pastures.

Small scale miners said FPR is now the buyer of choice who offers the best prices in the world.

Zimbabwe Miners Federation chief executive Wellington Takavarasha said now that FPR is better than all buyers, members are delivering their yellow metal formally.

“As small scale miners we are averaging 500kg per week which gives us two tonnes per month due to new incentives and spot payments by the RBZ,” Takavarasha said.

On Tuesday international gold prices stood at US $58 660 per kilogramme and Fidelity was paying above US$60 000 per kg to woo miners to deliver to FPR.

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

The government wants to establish new gold centres following a sudden increase in output.

The gold centres are expected to provide basic equipment such as compressors and jackhammers as well as working capital to facilitate optimal production by small-scale miners who supply gold ore.

RBZ shall maintain presence, directly or through approved buying agencies at all gold centres so as to buy all the gold produced.

The gold centres will also provide technical services to miners who supply the ore.

In August, the Cabinet approved proposals for the establishment of over 20 gold centres by mid-2022.

Accordingly, memoranda of understanding will be signed with four investors who have been identified for the purpose of setting up the gold centres.

The investors will own 100 % equity in the centres, while those who operate joint ventures with the ministry of Mines and Mining Development will fully fund the operations of the centres in return for a 90% equity stake.

Some of the gold centres are expected to be established in Makaha, Odzi, Mount Darwin, Shamva, Mazowe and Silobela.

Business Times

Eskom boss Andre de Ruyter said yesterday that the power utility was like an old car that needs to be replaced, not fixed.

De Ruyter was updating the nation on the continuous load-shedding plaguing the country.

“How much is required to fix Eskom? On an annual basis generation requires R10bn to R12bn to spend on maintenance. Our generation feed is on average 41 years old and we now need to introduce additional capacity to make provision for the plants that are reaching end of life.

“The question is not how much it will cost to fix Eskom. We need to buy a new car; it just costs too much to fix the old car. This is exactly the opportunity we have with the money made available by COP26. We can access international funding to a lower-carbon economy,” he said.

On the R131bn deal announced at COP26, he said at this stage SA was not a signatory to a commitment by 30 countries to stop pursuing new coal projects.

He also explained that a “blackout” was when an entire electricity system was unable to maintain its frequency, and “leads to the total loss of electricity transmission and distribution capacity”. This could last for “a number of days and, in some instances, even weeks”.

“So that is the catastrophic outcome we are trying to avoid by managing the demand through load-shedding,” he said. – TimesLIVE

CALEDONIA Mining Corporation, the parent company for Blanket Mine, will debut trading on the Victoria Falls Stock Exchange (VFEX) on December 1, 2021, becoming the third listing on the USD-denominated bourse.

The VFEX is a subsidiary of the Zimbabwe Stock Exchange (ZSE), launched late last year as part of efforts to attract global capital, while also helping restore foreign investor confidence in Zimbabwe’s capital markets.

Caledonia will be the third listing on the VFEX, joining SeedCo International and Padenga Holdings.

According to a pre-listing statement, the secondary listing of Caledonia will be by way of introduction of Depository Receipts as Caledonia’s shares cannot be directly traded in Zimbabwe, due to some limitations on the New York Stock Exchange where they are also listed.

“Given that shares cannot be directly traded in Zimbabwe as there are no Securities Exchange Commission of Zimbabwe (SECZim) registered transfer agents with a presence there, Caledonia will therefore issue a number of shares to the Depositary Agent, being Corpserve Nominees (Pvt) Ltd, a SECZ regulated Zimbabwe entity, to hold on the Share Register.

“The Depositary Agent will then issue an equivalent number of ZDRs against shares worth up to US$5 million at a price per ZDR of not less than USD12,50, with the final price and, therefore, number of ZDRs to be issued to be decided and apply to list those ZDRs on VFEX by way of introduction, pursuant to an established structure,” reads part of the statement.

The company noted that further shares could be issued to the Depositary Agent in the future against which further equivalent ZDRs would then be issued.

“There is expected to be a minimum number of ZDRs that must continue to be listed on VFEX but, subject to that and any other conditions imposed by the Reserve Bank of Zimbabwe (RBZ) pursuant to Exchange Control Regulations and otherwise, ZDRs should be redeemable and capable of being converted into shares to be held on the Share Register and tradeable on NYSE or converted to depositary interests admitted to trading on AIM.”

According to the statement, the proposed listing is expected to enable the Group to benefit from incentives announced by the Minister of Finance and Economic Development on 10 May 2021, with it being understood that, with a VFEX listing of ZDRs, members within the Group should be entitled to 100 percent US$ retention of revenue earned on incremental exports.

Caledonia said it will also be able to access investors in Zimbabwe, hence creating local shareholder spread and liquidity. This would allow Caledonia to hold capital raised through the VFEX in approved local or offshore accounts with an internationally recognised banking institution.

“Capital raised would assist the company in funding future expansions, such as financing Caledonia’s proposed purchase of the Maligreen Project claims, situated in Gweru, Zimbabwe,” the company said.

According to Caledonia, the ZDR Offer opens Wednesday, November 10, 2021 and the ZDR Offer closes Wednesday, November 24, 2021 while the proposed listing will occur Wednesday, December 1, 2021.

Caledonia said following the commissioning of the Central shaft at Blanket Mine, production is expected to increase from approximately 58 000 ounces in 2020 to the targeted rate of approximately 80 000 ounces per annum from 2022 onwards.

Work is due to begin on Botswana’s second privately-owned coal mine in the first quarter of next year, the CEO of Maatla Resources has said, despite calls to abandon coal.

At the COP26 climate conference in Glasgow, the southern African country signed up to a global commitment to reduce the use of heavily-polluting coal, but opted out of a pledge to stop issuing new licences to mine the fossil fuel.

Botswana is edging ahead with developing its coal resources, which are estimated at 200 billion tonnes, as it looks to wean its economy off a dependence on diamonds.

Maatla was awarded a licence in February and had hoped to start building the 1.2 million tonnes per annum mine this year, but was stalled by the COVID-19 pandemic and regulatory delays.

Now, Maatla is looking to proceed after a funding deal with Frankfurt-listed HMS Bergbau, which in a US$45 million debt and equity deal concluded in April took a 51 percent stake in it.

“The target is to reach financial close by February next year and then immediately start building the mine. First production is expected within 12 to 15 months,” Maatla CEO Jacques Badenhorst said in an interview. – Reuters

A 16-year-old boy from Bulawayo died last week after a gold mine shaft collapsed while he was inside with two other men in Hope Fountain.

According to police, the teenager from Village 16 Ntobi Rest-Bubi was employed at the mine in Hope Fountain.

Bulawayo police provincial spokesperson, Inspector Abednico Ncube, said they were investigating a case of sudden death which occurred at a mine in Hope Fountain, Bulawayo on November 3.

“The deceased is a male juvenile aged 16 years of village 16 Ntobi Rest-Bubi and was employed at a mine in Hope Fountain. The now deceased was accompanied by his workmates to work. The three entered into a mine shaft leaving no one outside,” said Inspector Ncube.

He said while inside the shaft, they heard sounds of something coming down the shaft.

“The other two ran and hid on one side of the shaft while the now deceased ran to the opposite side. When the noise had subsided, they went to check where the now deceased was and found him lying down bleeding from the head after being hit by a stone. They went out of the mine shaft and advised the informant about the incident,” said

He said the juvenile was taken out of the mine shaft breathing, but unable to speak.

“He was rushed to United Bulawayo Hospital for treatment where he was pronounced dead on arrival. The informant made police report and police attended the scene and investigations are in progress,” he said.

Inspector Ncube urged members of the public to practice safety at their workplaces.

The Chronicle

A Manicaland-based environmental watchdog, Green Governance Zimbabwe Trust (GGZT) has called on mining companies to seek social licenses to foster inclusion and participation of local communities.

The call comes after Headmen Chiadzwa and 27 villagers were recently arrested for protesting against the Chinese-owned diamond mining company, Anjin Investments’ bid to initiate a ritual ceremony without their knowledge.

A social license is an ongoing approval and acceptance of a mine by its employees, community stakeholders, and the general public.

Social licenses are centred on the idea that institutions need regulatory permission. There is also increasing pressure for ‘social permission’ to conduct their business operations.

In a press statement, GGZT bemoaned the arrests of the Chiadzwa villagers, saying it was unfair as the residents were protesting against the violation of cultural rights, defilement of workers’ rights, and legacy debt.

“We are alarmed, like all forward-thinking organisations lobbying for natural resource governance to drive sustainable development, to learn of the arrest of Headman Robert Chiadzwa and 27 others on 2 November 2021,” reads part of the statement.

“As they were making a follow-up, exercising their constitutionally guaranteed rights to seek redress, the company turned on the villagers. Such spurious charges not only expose Anjin for negotiating with the community in bad faith, reeks of state-sanctioned impunity (political protection) always claimed by foreign investors.”

The environmental watchdog expressed deep concern over the failure of formal diamond mining to contribute to the national Treasury when communities were facing developmental challenges.

The GGZT said traditional leaders must not be incarcerated for representing their communities in seeking economic justice from foreign investors.

“Civil society organisations have extensively called for a legal instrument that promotes responsible investments, provides benefit-sharing, formalise artisanal mining and a framework for devolved mining governance.

“We, therefore, call for transformative conflict resolution, fully cognisant of the need to maintain public order in compliance with criminal law dictates, as a sustainable solution to repair the fractious relations between mining investments and the community.”

The rights group is rallying in solidarity with Chiadzwa villagers for challenging business operations, which violate human rights, social and cultural values, and environmental laws.

NewZimbabwe