Mining ZimbabweLatest Mining News, Policy and Industry Updates

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

ARTISANAL miners have been blamed for causing the spread of HIV and tuberculosis in Matabeleland South province.

Matabeleland South TB/HIV officer Norbert Singine told Southern Eye that the province has huge mineral deposits, resulting in the influx of artisanal miners who engage in reckless sexual behaviour, causing the spread of HIV in the province.

“They are possible causes of high HIV infection in Matabeleland South. It is mostly spread by artisanal miners because they are mobile and engage in reckless sexual activities wherever they will be,” Singine said.

He said the high HIV rate was also a result of the province’s proximity to the border between Zimbabwe, Botswana and South Africa, leading to high transmission of the diseases.

“Our province is a gateway to South Africa and Botswana and this means the population in transit engages in sexual activities with our communities along the border,” he said. “These busy borders, especially Beitbridge and Plumtree, have truck drivers who sometimes do rest at the two borders and during this time, they do engage in sexual activities.”

Singine also said the influx of mopane worms harvesters added to the spread of HIV.

“People who harvest mopane worms camp in the forest. This means people are away from their families and might engage in sexual activities,” he said.

Singine said people also camped at illegal crossing points selling food to people illegally crossing into the neighbouring countries.

He said newly-identified HIV positive cases as from January to September 2021 stood at 4 535 while from September 2021 and to date, 458 cases were recorded.

According to the National Aids Council, Matabeleland South province tops the list of areas hard hit by HIV and Aids.