Mining ZimbabweLatest Mining News, Policy and Industry Updates

Zimbabwe-focused gold producer, Caledonia Mining Corporation has reached record production of 16 710 ounces at its Blanket mine in Gwanda spiking confidence that indeed the gold sector has what it takes in the achievement of the US$12 Billion mining roadmap.

Rudairo Mapuranga

The 16 710 ounces produced during the quarter ended June 30 2021 represents an increase of about 23.8 percent on the 13 499 ounces produced in the corresponding quarter of 2020.

The company announced that gold produced for the first half of 2021 was 29,907 ounces, approximately 7.8 percent above the 27,732 ounces produced in the first half of 2020.

Caledonia earlier this month said it maintains its 2021 full-year production guidance of 61,000 to 67,000 ounces and remains on track to hit the target of 80,000 ounces from 2022.

During the quarter the company announced the operation of its central shaft at its linchpin Blanket Gold Mine, the group has poured US$67 million using internal cashflow initiatives into Blanket Mine’s five-year central shaft sinking project.

Commenting on the announcement, Caledonia Mining Chief Executive Officer Mr. Steve Curtis said the company remains committed to achieving its goals towards making Blanket mine a world-class mine.

“Having got off to a slow start to the year, for production to be 7.8% above the first half of 2020 and 23% ahead of the corresponding quarter is an outstanding achievement and leaves us well placed to meet our full-year guidance.

“During the quarter we also announced that Central Shaft was operational; this has been a huge feat by the team. We are currently working hard to achieve the expansion and we remain on track to hit our 80,000-ounce target in 2022.” Curtis said.

Caledonia Mining is one of the mining companies expected to contribute significantly to the President’s vision 2030 with the economy achieving an upper-middle-income earner simultaneously leading mining to become a US$12 Billion industry by 2023.

Gold is expected to rake in US$4 billion a year, platinum US$3 billion, diamonds US$1 billion, while chrome, iron, steel, and coal will contribute US$1 billion. Lithium is expected to contribute US$500 million while other minerals will contribute US$1,5 billion.

CHANCES of finding three trapped gold miners alive are now very slim, more than a week since a tunnel they were working in collapsed in Shurugwi.

The three have been trapped underground since last Sunday.

The Shurugwi District Civil Protection Unit on Friday stopped the search for the panners due to unstable ground.

Chief engineer in the Ministry of Mines and Mining Development Engineer Michael Munodawafa said they had regrouped to work on new strategies of working through the unstable ground.

“The rescue operation had been going on from Sunday to Friday before they reached an unstable ground level. It became dangerous for the rescue team to continue digging. So they are now attempting other ways or channels of reaching them,” he said.

Eng Munodawafa said chances of finding the trio alive were now very slim.

He said the three entered the mine while their four colleagues remained outside.

“At around 4am there was a huge sound as the ground collapsed. Entrance into the tunnel was closed and there hasn’t been any form of communication with the three since Sunday. The other four then looked for assistance,” said Eng Munodawafa.

He said from January to date, 22 illegal miners have lost their lives when shafts and tunnels caved in countrywide.

The Chronicle

The Zimbabwe Mining Development Corporation (ZMDC) is planning to reduce its shareholding in mining assets across the country as part of a privatisation drive.

ZMDC operates Sabi Gold Mine in Zvishavane, Jena Gold Mine in Silobela, and Elvington Gold Mine in Chegutu, Mhangura Copper Mine, Alaska, Sandawana and Kamativi. It has a stake in Great Dyke Investments.

It also has significant interest in graphite mining and other minerals.

However, most of the mines have remained idle for years.

Recently, ZMDC roped in Chandiwana at Sabi Mine and Kuvimba Mining House in some of its other mines.

“With partnerships there is much more gain. This is the strategy we are taking on all our subsidiaries. In a nutshell, the stake turns to gain more in the sense that an asset is being sweated with increased production,” ZMDC general manager, Blessed Chitambira, told Business Times.

The government has been aggressively pushing for partial privatisation of ZMDC’s mining assets as it seeks to improve the state mining arm’s operational efficiencies.

ZMDC was established in 1982 to create a vibrant and versatile mining powerhouse necessary to transform Zimbabwe’s mineral wealth to world-class standards.

However, ZMDC has been struggling to the extent that there has been uncertainty on its ability to continue as a going concern.

Analysts said real investment remains key to sweat value on ZMDC’s mining assets.

They said partnerships were key as ZMDC has for years struggled to fund operations of its units.

ZMDC has also been struggling to attract suitors because its struggling mining assets had remained unattractive and most under-mined yet with the capacity to drive the country’s economic growth.

Zimbabwe has been losing billions of dollars in potential revenue due to the past non-functionality of the mines which are mostly owned by ZMDC.

It is estimated that ZMDC has the capacity to contribute 50% of Zimbabwe’s gross domestic product.

Business Times

Gold miner Shamva Mine is targeting to produce 3 500 kilogrammes (kg) annually once fully developed.

Currently, Shamva Gold Mine, which was officially re-opened last year by President Emmerson Mnangagwa, is producing about 65kg a month, which translates to about 780kg a year.

Shamva is a subsidiary of Kuvimba Mining House which last year injected fresh capital into the business, after Metallon Corporation, who previously owned it, suspended operations owing to mounting debts.

Kuvimba said Shamva Mine has the potential to be one of the leading gold producers in Zimbabwe.

“The most exciting prospect lies within Shamva Gold Mine. A detailed exploration programme to delineate the resource at Shamva was concluded.

“The plan is to exploit this resource via a mega open pit mine with pre-feasibility study which was conducted indicating a viable large scale long life line.

“Once fully developed, Shamva Gold Mine has the potential to become the largest gold mine in Zimbabwe by output and will target an annual production of 3 500kg of gold per annum,” Kuvimba said.

Government controls about 65% shareholding in Kuvimba while local and international investors hold the remainder.

The government shareholding has been structured in a way that benefits special interest groups identified by the government.

These include the Sovereign Wealth Fund of Zimbabwe, a statutory fund which is now being fully implemented for the future benefit of the Zimbabwean citizenry and the pensioners.

The Insurance and Pensions Commission holds a 5% stake in Kuvimba.

The Deposit Protection Corporations also holds 5% shareholding in Kuvimba while about 7% shares are held by the Public Service Pension Management Fund.

The National Venture Funds holds 7.5% shareholding in the company.

The balance is held by private sector investors including management.

Mines and Mining Development Minister, Winston Chitando (pictured) said Shamva Gold Mine is expected to be one of the main drivers in Zimbabwe’s goal to achieve
a US$12bn mining economy by the year 2023.

With the opening of a new mine in the first quarter of 2023, Shamva is expected to contribute 5% of the US$12bn mining industry vision as the government is banking on mining and agriculture as providing impetus to stimulate economic resuscitation.

Business Times

Zimbabwe’s governing party, Zanu PF, wants mining companies to be levied 5 percent of their revenues to fund development of communities where they conduct their business, a senior official has revealed.

“As a party, this is what we want to see in our policy,” Zanu PF secretary for economic empowerment, Dr Mike Bimha told Business Weekly newsletter in a telephone interview this week.

“As the ruling party we give direction (policy formulation), but as it is now, we cannot compel anyone to comply since it is still a party policy.”

The party recently launched the new indigenisation and empowerment policy-2020-2030, which seeks mining companies, excluding artisanal miners, not participating in community share ownership schemes to establish corporate responsibility programmes.

About two thirds of the funds will go towards community development programmes in the district where the company is operating while the remainder will be equally shared among other districts in the same province, Dr Bimha said.

Levying companies for the purposes of development is in line with the Government’s devolution agenda.

Devolution refers to the cascading of powers and responsibilities to lower levels of governance by the central Government and in Zimbabwe a key feature of this is the creation of provincial councils that will become the authority in the running of affairs in the country’s regions.

Section 301 of the Constitution provides for Intergovernmental Fiscal Transfers from central to provincial and local tiers of Government to support devolution.

It is anchored on the overriding objective of promoting sustainable, representative, accountable and inclusive governance. It recognises the right of communities to manage their economic affairs and further their own development as well as encouraging the equitable sharing of local and national resources.

The model of devolution will facilitate investment in various districts at growth points.

Implementation of devolution emphasise regional economic development. This, therefore, entails the development and tracking economic activities at district and provincial levels; hence the need for developing and monitoring of Gross Domestic Product (GDP) statistics at district and provincial levels. Provinces will be required to co-ordinate and monitor the development of such statistics in the respective jurisdictions with technical assistance of the relevant Government agencies.

The national GDP will be disaggregated to the provincial level for competitiveness purpose.

The provincial management of the economy entails working closely with the private sector to capture data and understanding their requirements.

President Mnangagwa’s administration discarded the previous indigenisation policy, which forced foreign-owned businesses to cede 51 percent shareholding to black indigenous people, arguing it was scaring investors.

Business Weekly