Mining ZimbabweLatest Mining News, Policy and Industry Updates

Hwange residents and safari operators have come out guns blazing accusing Afrochine of double standards after the Chinese company began exploring the Deka Safari area while still conducting its Environmental Impact Assessment (EIA).

According to sources privy to the development, the company has reportedly commenced operations riding on an expired EIA which had been used when they were granted a concession in the Hwange National Park.

The government subsequently reversed the decision following pressure from residents, safari operators, environment activists and conservationists.

“The company has since begun exploration of coal in the Deka Safari area with major equipment having moved on site. The company is riding on the EIA which they did at the time they got to the previous concession which of course expired and meant that the company was supposed to conduct a new one targeting the latest place as the impacts may differ from area to area. Afrochine did not do that but instead went on to conduct exploration and the same time doing an EIA. I would say they are probably in a hurry to start mining given that they recently fired up their coking plant in Lukosi which in turn is supposed to feed the smelters in Selous,” said the source.

Greater Whange Residents Trust coordinator, Fidelis Chima said they were shocked to learn that the company was already on the ground conducting exploration works.

“Greater Whange Residents Trust is surprised that Afrochine has started exploration work before the EIA process has been completed. They sent questionnaires for the mining project and before being issued with the EIA certificate they are already on the site,” said Chima.

Association for Tourism Hwange (ATH) Chairperson, Elisabeth Pasalk said any mining activities would disturb the ecosystem.

“We do hereby object to the establishment of any form of mining activities within the proposed area or in any area close to, within the buffer zone of or connected to Zimbabwe National Parks and safari areas. The area proposed represents crucial wildlife habitat. Mining activities within the area will disturb and displace wildlife, modify animal behaviour and pose a threat to the Zimbabwean citizens living in Hwange town and in the communal lands nearby since the wildlife in the area will have no choice but to escape to new spaces.”

“Mining activities generate vibrational energy that propagates many kilometres along the surface while also penetrating at depths of several kilometres. If you think of the surface of the earth as a trampoline, high-energy ripples are propagating outward from the source along the surface. The vibrations caused by drilling and the noise generated by trucks, provoke the elephants and other wildlife in the area to fear danger and escape to areas where will come into contact with humans and cause the loss of life,” she said.

In a letter of objection seen by CITE to SustiGlobal Consulting and copied President Mnangagwa and Mines minister, Winstone Chitando, Pasalk who operates a safari queried why the government was insisting on coal extraction when the district was one of the best solar radiation zones with the potential to be harnessed into clean energy.

“The over utilization of fossil fuels also contributes to global warming. There is no need to mine coal when there are cleaner renewable sources of energy. Zimbabwe should lead renewable energy projects, which would put us in good stead in terms of reputation as a destination that cares about conservation of the environment, as opposed to relying on open cast coal mining.

“The Hwange/Victoria Falls area is classed as one of the world’s best solar irradiation areas in the world with potential for harnessing solar power in an innovative, environmentally conscious manner. Why then is the government of Zimbabwe continuing to engage in coal mining activities? From a business and economic perspective, the issuance of Special Grant No.8477 indicates a blatant disregard of the investment that safari operators and activity providers have made in the region and tells us that our efforts are in vain and that the livelihoods of those whose careers rely on tourism are of no significance.”

It is understood that on Monday officials from the President’s Office and Cabinet (OPC), Zimparks, government departments and security sector visited concessions given to Afrochine and Zimbabwe Zhongxin Coking Company (ZZCC) to ascertain the obtaining situation.

Meanwhile, residents have petitioned Afrochine consultant, SustiGlobal Consultancy seeking to stop it from conducting mining activities in the area.

Efforts to get a comment from the chief managing consultant, Oliver Mutasa were futile as he was unreachable.

Source: Centre for Innovation and Technology

ZIMBABWE’S biggest car battery maker, Chloride Zimbabwe, says plans to draft lithium battery production technology into its operations have kicked off to prepare the firm for a future without petroleum-powered cars.

General manager Kudzai Pasipanodya told businessdigest this week that for now, Chloride, a unit of the Zimbabwe Stock Exchange-listed ART Corporation, was planning for the long-term when lithium-battery-powered electric vehicles (EVs) swamp the domestic market.

There has been a huge global push to eliminate air-polluting, fossil-fuel-powered motor vehicles, the biggest consumers of Chroride’s batteries.

Pasipanodya spoke as traditional car battery makers continued to be confronted by market changes demanding strategic planning.

To underline the gravity of challenges that confront traditional car battery producers, lithium battery car maker Northvolt last week raised US$2,75 billion in fresh equity to expand a factory under construction in Sweden to match surging  demand  for EVs.

“Work on exploring how best we can migrate to lithium technology has started,” Pasipanodya said, speaking exclusively to businessdigest. “This is a long-term project which we think by the time there is general use of the electric vehicles in our market, it would be economical to produce the lithium battery locally.

“We will start by assembling the battery before going into full-time manufacturing. We do not have the capacity as of now, but certainly we are watching market developments whilst looking at what is required to cease the opportunity when it becomes economical to produce locally.

Analysts have cautioned African producers of lithium, including Zimbabwe, not to wait until EVs increase their presence and then make moves to shift their product lines.

There were already indications that EVs would make inroads into the domestic markets earlier than expected after Agilitee Africa, a South African EVs maker, acquired 90% shareholding in a Zimbabwean dealership in May.

The deal is set to create about 700 jobs when a plant is established in Harare.

But should it enter the lithium market in future, Chloride would leverage on its strategic positioning close to some of Africa’s most promising lithium mines including Prospect Resources’ Arcadia near Harare.

The Australia Stock Exchange-listed miner said last week its pilot plant was over 90% complete, as work on kick starting production at Arcadia progressed.

London-headquartered Premium has also been developing a lithium operation near Bulawayo, while significant finds have been made on dump sites at the mothballed Kamativi Tin Mine near Hwange.

The state-run Zimbabwe Mining Development Corporation has indicated that it would scout for partners to develop the asset.

Meanwhile, Pasipanodya said Chloride would be ramping up production at its operation to 600 000 units per annum, from the current 450 000.

“Annual production stands at 450 000 units and we are already upgrading the plant to produce 600 000 units annually. Since we embarked on improving production capacity, the market has responded well. The market share has grown from 55% 10 years ago to the current 80%,” he said.

“We export 40% of our production capacity into regional markets, that is Zambia, Malawi and Mozambique to be more specific. The Exide brand is already dominant in the Zambian and Malawian markets and we are currently developing the Mozambican market. Emphasis has been on manufacturing a quality product that competes with any global brand. We have invested in communicating the benefits of using our product to the market.

“Chloride Zimbabwe introduced solar batteries in 2014 and the product has been doing well in the targeted market segment. However, there is a market segment which prefers Gel batteries. During the first month of lockdown, we lost 90% of local sales volume, but we recovered after we were declared an essential service. The sales volume recovered to around 80 % of normal sales.”

Zimbabwe Independent 

WORKERS at Golden Valley Mine in Kadoma Wednesday staged a protest accusing its management of deploying security to use “discriminatory” full body scan on junior workers as they fear it will cause health challenges.

The Australian-owned mine is involved in gold mining.

He added workers were forced this week forced to protest as the mine’s management was unwilling to remove the machine, installed to stop gold leakages from employees working underground.

“It’s true, the workers protested against the discriminatory use of a full body scan on lower-level employees at Golden Valley Mine. This protest could have been avoided if relevant stakeholders had paid attention to our concerns’ raised months ago,” said Chinhema.

“As ZDAMWU, we asked the Zimbabwe Radiation Authority on the safety of the machines, and we did not get a satisfactory answer. We wrote to the government’s chief engineer about the issue last March, but we have not received any response. We went to ZELA (Zimbabwe Environmental Legal Association), and again, there was no response.”

The trade unionist added; “We wrote to NSSA (National Social Security Authority), and there was no response. Workers have been left with no choice but to protest.

“This, then means, the management knew the scanning machine will harm people above all what’s surprising is the scanner will only be used on low grade workers while management is exempted.

“This is discrimination. We cannot say only low-grade workers are thieves. It is an insult when the actual thieves are those who are in managerial positions. We say our safety is out right! We can’t risk our lives at all.”

Last March, (ZDAMWU) wrote a letter to the government’s mining chief engineer arguing the scanning machine would cause health challenges to the workers as this had not been proved otherwise.

“Reports from our members are that the authorities installed a full body scan machine for workers in grade 1-10 when entering and leaving the underground shaft,” Chinhema wrote then to government’s mining chief engineer.

“We are worried that safety concerns have not been fully addressed and if not attended to it can degenerate into serious industrial disharmony. We believe the management has not fully explained to the satisfaction of workers the health implications associated with the use of such machine.

“Through instructions from our members, we are engaging you as a responsible authority in terms of mining (Mining and Safety Regulations) Statutory Instrument 109 of 1990 for a full technical report that will clear all the fears workers, and others have.

“In order to avoid any problems, we suggest you instruct the mine to delay the use of the full body scan machine until all fears are cleared.”

The authority has also not responded.

Meanwhile, NewZimbabwe.com tried to seek comment from Golden Valley Mine through its Human Resources Manager Charles Msimanga, who declined to comment.

THE Environmental Management Agency (EMA) has issued 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.

EMA Midlands provincial spokesperson Oswald Ndlovu said the mine was carrying out illegal alluvial gold mining near Mutevekwi River located just outside the mining town.

“The miner was issued with a level 14 ticket and ordered to rehabilitate the area within seven days,” Ndlovu said yesterday.

“As EMA, we will be monitoring the situation to ensure compliance with the environmental protection order.”

Over the years, both illegal and legal mining activities along Mutevekwi River have resulted in the blocking of the river with farmers downstream failing to draw water for irrigation purposes.

Mining activities in the mining town have also left severe environmental degradation with chemicals used by miners such as mercury and cyanide polluting water bodies.

Some villagers have been complaining of losing their domestic animals to poisonous substances.

Farmer-miner conflicts have also been on the increase in Shurugwi with stakeholders calling for laws that harmonise the two sectors.

NewsDay

FIVE years ago, Mr Douglas Msipa, the son of the late national hero, Dr Cephas Msipa abandoned artisanal mining/ukukorokoza for farming.

The decision baffled many people who believed there was more money in artisanal mining.

Furthermore, his choice of specialisation, garlic, appeared to be a poor move as many believed the market was limited.

Mr Msipa had a torrid time explaining the unpredictable nature of ukukorokoza versus the more stable and relatively stress-free life of a farmer.

Finally he decided to act and show his critics what he meant.

Mr Msipa now employs 50 people and is one of the renowned garlic farmers in the Midlands Province making more than US$5 000 per month from local sales.

Mr Msipa said he is planning to increase land to be put under garlic and other associated crops.

“I have 20 permanent employees and 30 casuals. I specialise in labour intensive crops. At the planting stage, we need almost 100 employees every day. Five years ago, I started garlic farming and stopped Chikorokoza,” he said.

Mr Msipa said garlic has up to a year of shelf life.

“We get regular monthly income of around US$5 000 from local sales,” he said.

Mr Msipa encouraged local farmers to grow garlic, ginger and turmeric saying they are good cash crops.

Minister of State in the Office of the President and Cabinet in charge of Monitoring the Implementation of Special Agricultural and related programmes, Davis Marapira tours Mr Douglas Msipa’s Cheshire Farm in Gweru recently

“Instead of buying chemical dip, garlic can keep ticks away from all your animals eliminating tick-borne diseases,” he said.

This season, Mr Msipa has garlic on 10ha and is expecting 70 tonnes.

He said he started growing ginger and turmeric last year adding that plans are under way to put value addition infrastructure at the farm.

Mr Msipa said he was producing for both local and export markets thereby saving the country the much needed foreign currency which was spent on importing garlic, ginger and turmeric.

“My advice to farmers is to start small on the high-value crops which can be grown anywhere in Zimbabwe,” he said.

Mr Msipa, who is a beneficiary of the successful land reform programme, hosted the Minister of State in the Office of the President and Cabinet in charge of Monitoring the Implementation of Special Agricultural and related programmes, Davis Marapira at his Cheshire Farm along Matobo Road in Gweru recently.

Minister Marapira urged land reform beneficiaries to fully utilise their land to assist the country to bring in the much needed foreign currency.

He said increased productivity on farms would help the country to get foreign currency and create employment.

The minister toured the 10ha of garlic field, one-hectare ginger, half ha of turmeric field under irrigation from Which Mr Msipa expects to harvest 70 tonnes garlic, 20 tonnes ginger and five tonnes turmeric.

Minister Marapira commended Mr Msipa for the massive irrigation project and encouraged other farmers to emulate him.

“Production at farms helps generate foreign currency and create employment,” said Minister Marapira

He urged farmers to venture into growing cash crops such as garlic, ginger and turmeric.

“Value addition is important because farmers realise more from their produce while also creating employment,” said Minister Marapira.

The Chronicle

More than 3 500 jobs have been created since the establishment of Kuvimba Mining House last year.

The Government has a controlling stake in the mining company, which has assets in many parts of the country.

Local contractors are benefiting through opportunities created by increased activity.

Kuvimba has three operating gold mines — Freda Rebecca, Shamva and Jena Gold Mine.

It has a stake in Bindura Nickel Corporation (BNC), the Darwendale Platinum Project (Great Dyke Investments) and Zim Alloys Limited.

Speaking after Freda Rebecca broke a 20-year production record by producing 300kg of gold in May, Kuvimba Mining House chief operating officer Mr Cobus Bronn said within a space of a year the mining giant had managed to employ 3 518 workers.

BNC now has 1125 workers, followed by Shamva Gold Mine with 890, while Freda Rebecca and Jena Mine have 800 and 703 employees, respectively, all of which were taken on board in the past year.

Overall, it plans to employ 20 000 in the short to medium term.

“The number of employees is expected to significantly increase as more mines are brought to operations soon,” said Mr Bronn.

“Kuvimba Mining House’s vision is to create sustainable growth for Zimbabweans through safe and responsible mining.

“This vision is achieved by instilling the following core values, namely integrity, being a good corporate citizen, accountability and fostering good team work.”

The resuscitation of mines, he added, had brought life in Bindura, Shamva and Silobela.

“The social and economic impact that the companies have in the respective areas where they are located cannot be overstated,” he said.

“Kuvimba has an approved plan to roll out an extensive exploration programme to explore the non-operating gold assets in order to determine the viability of recommissioning them.

“This is expected to be rolled out in the second half of 2021. Collectively, these non-operating mines, which have been neglected for a while, have the potential to produce in the excess of 1 200kg of gold per year and employ more thousands of people.”

At BNC, Kuvimba has finished the shaft deepening process, which allows the firm to extend mine life by seven years, while Zim Alloys is now out of judicial management.

All Zim Alloys creditors have been paid and production is expected to start before September this year.

The Government holds 65 percent in Kuvimba, while local and international investors hold the remainder.

This week, the company is expected to declare a dividend after posting impressive results in the last financial year.

Kuvimba’s shareholding has been structured in a way that benefits about five special interest groups identified by the Government, and these include the youths, women and war veterans, depositors and pensioners who suffered losses during the currency reforms of 2019.

The Sunday Mail

ZESA Holdings said the power cuts being experienced in the country are due to a technical fault at Hwange Thermal Power Station.

Zimbabwe’s power supply has vastly improved, but most parts of the country have experienced prolonged outages in the past few days.

In a statement on Friday, ZESA Holdings said efforts to restore normal power supplies were underway.

“ZESA holdings would like to advise its valued customers countrywide that there is limited power supply in the national electricity grid due to a technical fault in the transmission system, leading to generation incapacitation at Hwange Power station.

“Restoration of service to optimum levels is currently underway and customers are advised to use the available power sparingly, especially during the morning peak periods of 0500 hours to 1000 hours and evening periods of 1700 hours to 2100 hours.

“Customers will be updated as the situation improves.”

Contacted to give further explanation, ZESA spokesperson Ms Prisca Utete could not shed more light.

“I am not in a position to comment on that issue because my office does not allow me to do telephone interviews,” she said.

The Sunday Mail

The global shift to clean energy is going to drive an unprecedented boom for critical minerals, according to the International Energy Agency (IEA), raising questions of supply and the overall environmental cost

(AF) Until the mid-2010s, the energy sector represented a small part of total demand for most minerals, the IEA noted in a new report. However, as energy transitions gather pace, clean energy technologies are becoming the fastest-growing segment of demand. The rise of low-carbon power generation to meet climate goals would mean a tripling of mineral demand from this sector by 2040.

“The shift to a clean energy system is set to drive a huge increase in the requirements for these minerals, meaning that the energy sector is emerging as a major force in mineral markets,” the agency said in the report, “The Role of Critical Minerals in Clean Energy Transitions”.

In a scenario that meets the Paris Agreement goals, clean energy technologies’ share of total demand rises significantly over the next two decades to more than 40% for copper and rare earth elements, 60- 70% for nickel and cobalt, and almost 90% for lithium.

Electric vehicles (EVs) and battery storage have already displaced consumer electronics to become the largest consumer of lithium and are set to take over from stainless steel as the largest end user of nickel by 2040.

In climate-driven scenarios, mineral demand for use in EVs and battery storage is a major force, growing at least 30 times to 2040. Lithium sees the fastest growth, with demand growing by over 40 times in the SDS by 2040, followed by graphite, cobalt and nickel (around 20-25 times).

The expansion of electricity networks means that copper demand for power lines more than doubles over the same period.

SIX KEY TAKEAWAYS

The IEA report makes six major recommendations:

• Ensure adequate investment in diversified sources
• Promote technology innovation at all points along the value chain
• Scale up recycling; Policies can play a pivotal role in preparing
• Enhance supply chain resilience and market transparency
• Mainstream higher environmental, social and governance
• Strengthen international collaboration between producers

The prospect of a rapid increase in demand for critical minerals – well above anything seen previously in most cases – raises huge questions about the availability and reliability of supply. In the past, strains on the supply-demand balance for different minerals have prompted additional investment and measures to moderate or substitute demand.

But these responses have come with time lags and have been accompanied by considerable price volatility. Similar episodes in the future could delay clean energy transitions and push up their cost. Given the urgency of reducing emissions, this is a possibility that the world can ill afford.

In addition, concerns about price volatility and security of supply do not disappear in an electrified, renewables-rich energy system, the agency said.

“Today’s international energy security mechanisms are designed to provide insurance against the risks of disruptions or price spikes in supplies of hydrocarbons, particularly oil.”

PACE OF TRANSITION

The IEA estimates that  the goals of the Paris Agreement (climate stabilisation at “well below 2°C global temperature rise”, as in the IEA Sustainable Development Scenario [SDS]) would mean a quadrupling of mineral requirements for clean energy technologies by 2040.

“An even faster transition, to hit net-zero globally by 2050, would require six times more mineral inputs in 2040 than today,” the IEA says.

While hydropower, biomass and nuclear make only minor contributions given their comparatively low mineral requirements, wind and solar require lots of inputs given their infrastructure-heavy design.  The rapid growth of hydrogen as an energy carrier underpins major growth in demand for nickel and zirconium for electrolysers, and for platinum-group metals for fuel cells.

Future technologies remain unknown. Cobalt demand could be anything from 6 to 30 times higher than today’s levels depending on assumptions about the evolution of battery chemistry and climate policies. Likewise rare earth elements may see three to seven times higher demand in 2040 than today.

The prospect of mineral-driven energy transformation has already excited investors. Australian minerals explorers have raised the most cash in nearly a decade as investors rush into gold as well as lithium and copper explorers expected to boom in the global energy transition.

ENTHUSIASTIC INVESTORS

A recent report by BDO, the accounting and consulting group, showed that Australian-listed explorers raised A$2.37 billion ($1.81 billion) in the March 2021 quarter, the most since 2013, and almost double the figure in March 2020.

“There’s no doubt about where the money’s going and why it’s going there,” Sherif Andrawes, BDO’s head of global natural resources, says, noting that the flood of funding towards battery minerals and clean energy companies is in line with growing environment social and governance (ESG) initiatives, including rising EV adoption and lower carbon emission targets.

Among companies that raised more than $10 million over the quarter were 10 gold companies, nine lithium companies, four uranium companies, four rare earth metals companies and four graphite companies. The remaining companies covered 14 different sectors, most notably copper-gold, copper and oil and gas, BDO said.

Fossil fuel companies have been forced to join the transition, with the IEA expecting them to increase climate-friendly investments to at least 4% of their capital spending in 2021, up from just 1% last year. The figure underscores both the rapid pace that investment is tilting toward low-carbon sources as well as the scale of the challenge.

The IEA said earlier this year that the world needs to stop development of new oil and gas fields as well as coal mines to limit global temperature increases.

ONE SIDE OF THE COIN

“Much greater resources have to be mobilised and directed to clean energy technologies to put the world on track to reach net-zero emissions by 2050,” said Fatih Birol, IEA’s executive director. “The rebound in energy investment is a welcome sign, and I’m encouraged to see more of it flowing toward renewables.”

Some critics say the IEA’s goals are laudable but that new investment is not the complete answer.

“Generating clean energy is only one side of the coin, we must also reduce the energy we waste and use what we produce more efficiently,” Jonathan Maxwell, CEO of Sustainable Development Capital, a private equity group, says. “After all, the cleanest energy is always the energy we don’t use.”

In addition, many minerals operations carry a high environmental cost. “Production and processing of mineral resources gives rise to a variety of environmental and social issues that, if poorly managed, can harm local communities and disrupt supply,” the IEA notes.

Consumers and investors are increasingly calling for companies to source minerals that are sustainably and responsibly produced.

“Without broad and sustained efforts to improve environmental and social performance, it may be challenging for consumers to exclude minerals produced with poor standards as higher-performing supply chains may not be sufficient to meet demand,” the report says.

CLIMATE RISKS

Mining assets are exposed to growing climate risks, the IEA acknowledges.

More than 50% of today’s lithium and copper production is concentrated in areas with high water stress levels, while several major production regions such as Australia, China, and Africa are also subject to extreme heat or flooding, which pose greater challenges in ensuring reliable and sustainable supplies.

Higher prices as a result of tight supply could have a major impact on the level of grid investment, the IEA says. “Our analysis of the near-term outlook for supply presents a mixed picture.”

Some minerals such as mined lithium and cobalt are expected to be in surplus in the near term, while lithium chemical products, battery-grade nickel and key rare earth elements such as neodymium and dysprosium might face tight supply in the years ahead.

“However, today’s supply and investment plans are geared to a world of more gradual, insufficient action on climate change,” the IEA says. “They are not ready to support accelerated energy transitions.”

Asian Financials 

Despite a sage in Covid-19 cases across the globe and the shutdown in major production centres, rough diamonds demand is continuing to grow, signalling a solid recovery for the industry a gemstones, diamonds and mineral trading company has said.

Anerudo Mapuranga

According to Naurish Diamonds and Gold, a company with more than 30 years of experience in gemstones, Diamonds and mineral trading the continual growth and demand of rough diamonds show that the best time to invest in the diamond sector is now.

“This seems like the best time to invest in diamonds.” the company said through its Twitter handle.

According to President Emmerson Dambudzo Mnangagwa’s vision for the mining industry to become a US$12 Billion sector by 2023, diamonds are expected to fetch US$1 Billion annually by 2023.

However, the country has only three operating diamond mining firms struggling to reach half a billion in revenue. One of the diamond operating mines Murowa diamonds reportedly running out of diamonds and depleting high-grade gems.

World largest diamond producer, Russia’s Alrosa is still carrying out exploration to find out the viability and richness of the diamond resource in the country.

The country should serious consider investing in the diamond industry if the US$12 billion mark is to be achieved by 2023.

The rewards of successful exploration and development can be large if a mineral deposit is discovered, evaluated, and developed into a mine. For a mining company, successful exploration and development lead to increased profits. this means the country needs to consider investing in exploration through issuing more EPOs if the country is to achieve the projected US$12 Billion mining sector and the US$1 Billion for diamonds.