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Illegal miners invade a Mberengwa school

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Illegal miners invade a Mberengwa school

Illegal miners have invaded Vanguard Primary School in Mberengwa District where they are digging pits in search of gold, putting the classroom blocks at risk of collapsing.  

Vongai Mbara 

The miners reportedly discovered a gold belt near the school and are now advancing very close to classroom blocks, causing alarm in the community. 

Education ministry spokesperson Taungana Ndoro said he has not yet received any report about the issue, adding that they will probe the issue.  

According to the locals, they have taken the issue to the local traditional leaders and the police, but no action has been taken yet. 

The community is worried that the miners are causing land degradation in their environment, polluting the air and will possibly destroy their classroom blocks.

In addition, they say the blasting and mining activities within the school’s vicinity are making a lot of noise, making it difficult for learners to fully concentrate in class.   

Mberengwa Miners Association chairperson Anderson Tsikira condemned the illegal miners’ behaviour saying they were not part of his association.  

“These people are not registered under us and they do not subscribe to our code of conduct. If they were part of us, they were not going to behave this way.   

“We are pro-development and we do not condone any behaviour that seeks to destroy public institutions or any infrastructure that benefits the community. We will investigate more into this and establish who the culprits are,” he said.

Huge boost for Arcadia lithium

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Huge boost for Arcadia lithium

Australian Stock Exchange-listed mining and exploration junior Prospect Resources has received firm commitments for A$18 million in new equity proceeds via an institutional placement of 45 million new ordinary shares, funds raised from the Placement are to be principally used for advancing the development of the Arcadia Lithium Project in Goromonzi.

Rudairo  Mapuranga

According to Prospect Resources Managing Director Sam Hosack said the company was happy with the support it received. Hosack said that funds raised from the Placement are to be principally used for, Advancing development of the Arcadia Lithium Project (Arcadia or the Project) through Front End Engineering and Design (FEED), to undertake early works and secure long lead items; Advancing the current strategic partnership process; Undertaking further regional exploration and development activities; and General working capital purposes.

The Arcadia Lithium Project is projected by the Minister of Mines and Mining Development Hon Winston Chitando to be one of the biggest US$0.5 Billion lithium annual revenue generators by 2023.

Hosack said that the Placement was strongly supported by new Australian and international institutional investors and the Company’s largest shareholder Eagle Eye Asset Holdings Pty Ltd.

“We are very pleased with the strong support received for the placement as we look to accelerate the Arcadia Project. We thank our existing shareholders for their ongoing support and welcome a number of new, high-quality institutional investors to our register. We believe the size and depth of the interest received for this raising is a robust endorsement of Prospect’s management team and development strategy for the Arcadia Project.”

“We are working hard to complete the Direct Optimised Feasibility Study on the Arcadia Project during the current quarter. As previously flagged, the direct development route to 2.4 Mtpa throughput is the key focus of Prospect and the counterparties engaged in our current strategic partnership process.”

“This Placement provides us the flexibility to progress the project, select the best possible partner while also allowing us to pursue growth opportunities for REE and lithium resources, particularly if we were able to secure additional feedstock for Arcadia’s future,” Hosack said.

Zimplats in US$1.8 billion projects

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Zimplats in US$1.8 billion projects

Zimbabwe’s biggest platinum group of metals producers, Zimplats has invested US$1.8 billion in growth projects a development that will aid in the resuscitation of the country’s economy.

Anerudo Mapuranga

According to Zimplats Chief Executive Officer Mr Alex Mhembere, the company has invested US$386.2m towards Mupani Mine re-development and US$82m on Bimha mine upgrade. The mines are expected to replace for depleting Rukodzi, Ngwarati and Mupfuti mines. The Australian Stock Exchange-listed miner also invested US9m in Hartley mine development.

He said that the company invested US$133m on a third concentrator plant with the capacity to create 100 direct permanent jobs at the same time increasing its ore milling capacity from 6.7 Mtpa to 7.52Mtpa.

PGM base metal refinery (BMR) plant cost the miner US$200m. The base metal refinery has the capacity for local PGM base metal refining and has the capability to create 100 direct jobs and at least 1000 in-direct jobs.

The expanded smelter will cost a total of US$280m with smelting capacity increased from 132-kilo tonnes to 380 kilotonnes of smelted concentrates, Capacity to smelt own-sources and local third parties, Employment creation of 40 permanent jobs, saving on transportation of bulk concentrates across the border, and avails the opportunity for new mines to reduce capital requirements.

Zimplats according to Mhembere will invest US$200m in the Sulphuric acid plant that the company intends to install will produce 100-kilo tonnes per annum. The sulphuric acid will be used in the manufacturing of fertilizers in the country thereby reducing acid imports.

The mining sector plays a pivotal role in the country’s economic development, contributing more than 60 per cent of exports revenue, employing over 45 000 formal employees and attracting significant foreign direct inflows into the country.

Zimplats has been supportive of the government’s vision to see the economy achieving an upper-middle-income status by 2030 and the mining industry becoming a US$12 Billion industry by 2023. Platinum is targeted to contribute US$3 Billion in annual revenue by 2023.

Zimplats has reached a milestone towards sustainable development of the platinum sector by increasing melting capacity from 132-kilo tonnes to 380-kilotonnes of smelted concentrates with the capacity to smelt own-sources and local third parties.

Mhembere said the company will also build a 110 MWAC Solar power plant for US$201m with sufficient capacity to satisfy the needs of the company, including related mining and mineral beneficiation facilities.

The company will also invest US$20m to build houses for its workers.

Mining companies should take a leaf from Zimplats -Mnangagwa

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Mining companies should take a leaf from Zimplats -Mnangagwa

The President of Zimbabwe Dr Emmerson Dambudzo Mnangagwa has encouraged mining companies to follow in the footsteps of the country’s largest platinum producer, Zimbabwe Platinum Mines (Zimplats) for the mining sector to achieve a US$12 Billion achieve revenue by 2023.

Rudairo Mapuranga

Speaking at the Signing Ceremony of The Memorandum of Agreement between the Government of Zimbabwe and Zimplats at the State House today, the President said the Platinum mining giant undoubtedly has the largest operations in Zimbabwe and it is leading by example in their desire to expand their operations.

His Excellency said that Zimplats’ desire to expand its operations is a clear sign that investors have confidence in how the current government is operating to create a safe environment for business.

“It is exciting to note that a number of developments are happening within the platinum mining sector, pointing towards growth in line with Government’s vision. The growth is mainly anchored on exploration, opening up of new mines as well as expansion of existing projects.

“The coming in of the new projects as well as the expansion of existing ones is a testimony of confidence that investors are showing towards the Second Republic. My Government will always strive to ensure there is an enabling environment that supports business growth and security of tenure. We invite all our investors to come to Zimbabwe and do business with us for mutual benefits,” Mnangagwa said.

Zimplats intends to expand its existing operations through various projects with a total investment of US$1.4 Billion. These projects include new mine development, additional concentrator, Platinum Group Metals (PGMs) smelter expansion, PGM Base Metal Refinery (BMR) plant, sulphuric acid plant as well as the 110 MW Solar power plant.

The expansion project will generate employment to more than 2000 employees and the net benefit of the government will be estimated at just over US$1 billion over a five-year period.

The Sulphuric acid plant that the company intends to install will produce 100 kilotonnes per annum. The sulphuric acid will be used in the manufacturing of fertilizers in the country thereby reducing acid imports.

The President also praised Zimplats for the desire to improve and establish value addition and beneficiation plant supporting the government’s vision for the country to become an upper-middle-income economy by 2030 in line with the National Development Strategy-1 (NDS-1) which aims to improve local beneficiation levels in the mining sector to ensure the country benefit meaningfully from its natural resources.

“I am glad, therefore that Zimplats in one of its projects intends to construct a Base Metal Refinery (BMR). This is another giant step forward in local mineral beneficiation and value addition, as we move towards full beneficiation of platinum in the country,” the President said.

Zimplats also intends to develop a 110 MW solar power plant, with sufficient capacity to satisfy the needs of the company, including related mining and mineral beneficiation facilities.

The President implored the government and the private sector to continue working together to ensure the development of the country towards the achievement of Vision 2030.

Miners demand an upward review of forex retention to 80%

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Miners demand an upward review of forex retention to 80%

Large scale mining companies have said that foreign exchange retentions at 60% are inadequate to meet their operational requirements with the value of surrender potion that is liquidated into local currency at the official rate being ordered by the parallel market rate being charged by most suppliers. 

Vongai Mbara 

This was raised at the 2021 state of the mining sector report by the Chamber of Mines Zimbabwe. In the report, miners said they are losing 20% gross export proceeds due to exchange rate disparities. 

“We have been asking for the increase of the foreign currency retention levels to above 60% and decrease of the forex surrender requirement but to date, nothing has been done. What we are now asking is for the RBZ to allow us to pay electricity, levies, taxes and royalties with the liquidated portion at a prevailing official market rate.” 

Miners highlighted that the 60% retained catered for royalties, electricity bills, taxes and some statutory obligations in forex as well as the widespread preference for US$ by suppliers. 

This comes at a time where miners are struggling to access foreign currency from the forex auction system with their bids rejected on the basis that they are net exporters. 

“Most respondents are expecting the Chamber to engage authorities to improve the forex situation. Respondents are also looking forward to the government allowing them to pay for royalty, electricity, taxes and other statutory obligations indicating the value of the surrender portion that is liquidated into local currency,” reads part of the report. 

According to the report, the miners indicated that the value of the surrender portion that is liquidated into local currency at the official auction-rate has been significantly eroded on the back of the parallel market which is used for pricing goods and services by local suppliers. 

“To restore the value of the surrendered portion, respondents are looking forward to authorities to allow mining companies to pay taxes, royalty, electricity and other statutory obligations in local currency and pricing of taxes, fees and charges at the obtaining auction market rates,” the report said. 

The miners said authorities should ensure that the auction market is driven by forces of demand and supply to dictate the exchange rate. 

The miners are expecting the foreign exchange framework to remain suboptimal citing the reduction in foreign currency retention levels, the disqualification of mining companies from participating in the auction market, loss of value on the surrendered portion of export proceeds and delays in payments for mineral deliveries as undermining the foreign exchange situation for the mining industry. 

They said Rural District Councils (RDCs) charges are high, unaffordable and vary with the district and some councils were invoicing miners in foreign currency. 

In the outlook, mining executives are looking forward to the government intervention in unifying the charges for RDCs and expect the charges to be paid in local currency. 

According to the report, mining executives said the Environmental Impact Assessment fee at 1.2% of project cost with a cap of US$2m is prohibitive for new projects and discourages investment into the mining sector. 

In 2022, almost all respondents expect the government to reduce the fee in line with best practices. 

Miners’ engagements with the monetary authorities on the matter are ongoing but the Chamber said the RBZ governor John Mangudya still sticks with his Monetary Policy Statement stance. 

Last year, the Reserve Bank of Zimbabwe reviewed the forex retention to 70% from 55% as part of efforts to increase production. 

In the report, the miners indicated that the foreign exchange retention at 60% was inadequate to meet their operational requirements. 

However, the need to fund the forex auction system has pushed the monetary authorities to increase the export surrender requirement to 40% from 30% and the move has left miners short of requirements. 

RBZ said it would maintain and sustain the auction system through the 40% export surrender requirement, 20% domestic foreign exchange sales surrender requirement and 15% foreign exchange contribution from the fiscus. 

RBZ said maintaining the exchange auction system remains paramount in anchoring inflation and maintaining price and financial system stability. 

The apex bank said it will continue refining the foreign exchange auction system taking into account fundamentals as well as closely monitoring the utilisation of funds. 

The RBZ’s bid to stabilise the auction system has negatively affected the mining sector as the capital for production will be used to sustain the market. 

Zimbabwe is in a serious fix over how best the authorities can deal with forex backlog, stabilise the exchange rate and address the forex challenges. 

Miners said these are the issues that they have been grappling with over the last decade. 

However, the RBZ said some issues will be addressed in due course to improve production levels. 

The central bank expects mining export receipts to go up 20% to US$4.4bn from US$3.65bn due to firming international prices and improved mining policies. 

CoMZ State of the Mining Industry Report Overview

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CoMZ State of the Mining Industry Report Overview

The Chamber of Mines yesterday released the State of the Mining Industry Report, Prospects for 2022 which shows increased confidence in the sector’s outlook by mining executives. 

The report, which comes out annually, gives an insight into the challenges and prospects for the capital-intensive mining sector – the largest generator of foreign currency for the economy. 

According to the report, notable among the positive sentiments include optimism about commodity price outlook, improvement in capacity utilisation and anticipated mineral output growth. 

On the negative side, mining executives expect the investment environment to be depressed, characterised by high costs of capital. 

The executives anticipate foreign currency constraints and infrastructure deficits to persist in 2022. 

They expect the fiscal framework to remain sub-optimal.  This, the executives said, will undermine viability prospects. 

The issues include high royalty beneficiation taxes, higher environmental management levies, misaligned Rural District Council charges. 

Respondents in the PGMs and lithium sectors bemoaned the current beneficiation framework indicating that most potential investors view it as undermining projects net present value and resultantly some investors have rejected potentially viable projects, the report said. 

“The PGMs producers indicated that they are currently engaging the government for an optimal PGMs beneficiation framework. Among the key recommendations cited by platinum producers are removal of beneficiation taxes and the introduction of beneficiation incentives to accelerate capital spending on beneficiation in the sector,” the report said. 

It said respondents in the lithium sector raised concerns on beneficiation tax on petalite which they reported that they would have fully beneficiated and will be awaiting conversion into final products. 

Lithium producers are looking forward to the removal of the tax on the fully beneficiated petalite. 

Diamond producers said the royalty for diamonds at 10% is still one of the highest in the world and is “undermining the viability of diamond producers”. The executives in the sub-sector expect the government to review the royalty in line with best practices. 

That the sector is a key player in the economy cannot be understated and the ball is in the court of fiscal authorities to nurture the mining sector which is the goose that lays the golden eggs. 

Mining is one of the key sectors of the economy and its contribution to GDP has been on the increase, reaching 11.8% last year from 6.5% in 2016. The sector is projected to contribute 11.3% to GDP this year. 

The sector’s contribution to export receipts is projected at 77% this year from 64% in 2016. The sector surrenders 40% of its export receipts which is used to fund the foreign currency auction system. 

Despite the sector’s contribution to the economy, it seems to be getting the short end of the stick from fiscal and monetary authorities. 

The government, however, sees the sector hitting US$12bn by 2023 on the back of increased exploration, enhanced investment, capacity building, increased productivity and value addition, among others. 

The sector is projected to hit US$4.4bn this year. Critics say the US$12bn target will become a pipedream if Zimbabwe does not address housekeeping issues such as fine-tuning the fiscal regime. 

Mining giant spends US$239million on local equipment suppliers

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Mining giant spends US$239million on local equipment suppliers

Zimbabwe’s most preformation and largest platinum producer, Zimplats Holding Limited spent 56% of equipment supply and consumables on local suppliers as part of its responsibility to empower local communities, the group owners Impala Platinum Holdings Limited (Implats) said.

Anerudo Mapuranga

According to Implats, the company prioritises constructive and beneficial relationships as well as sustainable socio-economic development in mine-host communities.

Implats said Zimplats spent US$239 with Zimbabwe local suppliers while South African companies spent over R4.4 billion.

“In South Africa, the Group spent R126 million on community development initiatives, a further R212 million on the Group’s industry-leading housing development and R719 million on skills development. R3.5 billion was spent with local-tiered suppliers with >25% black ownership and US$239 million (or 56% of discretionary spend) was spent with local suppliers in Zimbabwe. In Canada, supplies to the value of C$39 million were procured from Indigenous communities in the areas of the mine’s operations.” Implats said.

During the financial year ended June 30, 2021, Zimplats spent US$159.1 million on capital projects including stay-in-business, replacement and expansion projects compared to US$104 spent in the previous year.

Revenue for Zimplats increased 56% to US$1.4bn in the period under the review, largely due to the increase in the prevailing average metal prices during the year.

Despite the 2% decline in volumes sold, the cost of sales increased by 14% to US$546.7m primarily due to an increase in revenue indexed expenses resulting from the higher revenue achieved in the year.

Operating cash cost per 6E ounce increased by 8% to US$661 per ounce from US$613 per ounce in 2020.

The gross profit margin increased to 60% from 45% in 2020 primarily due to higher metal prices while income tax expense increased to US$237.4m on higher profitability.

As a result, profit after tax stood at US$563.1m while net cash generated from operating activities increased to US$453.1m.

Zimplats appoints its first female mine captain

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Zimplats appoints its first female mine captain

Zimbabwe’ largest Platinum producer Zimplats recently appointed a 30-year-old female mining engineer Tsitsi Dhambuza as its mine captain demonstrating that it is committed to diversity and inclusion.

Rudairo Mapuranga

Dhambuza said she was honoured to have been awarded the post and it shows that Zimplats recognizes qualifications, attitude and capability regardless of gender.

“Zimplats is committed to diversity and inclusion. Zimplats recently appointed its first female mine captain, Tsitsi Dhambuza, a 30-year-old mining engineer,” the miner said in a statement.

Commenting on the appointment Tsitsi said: “I am immensely proud and honoured to be the first female mine captain at Zimplats, as it shows the Company recognises the right qualifications, attitude and capabilities, regardless of gender,” Implats said.

The Zimbabwe mining sector did not have many women engineers before 2015. Tsitsi is one of the few female mining engineers that were from the post-2015 era and probably the first at Zimplats to attain such a role considering the background. It is applaudable that she has been given the role, it is a milestone to those who advocate for gender equity and empowering of women. Post-2015 era, at least more than five female mining engineers are graduating from the local institutions, and the country now has more than one institution offering Mining Engineering as a degree program.

Zimplats in reduction of food waste

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Zimplats in reduction of food waste

Australian Stock Exchange-listed platinum mining company, Zimplats has proven that it is committed to environmental conservation and the reduction of food waste.

Anerudo Mapuranga

According to the miner’s parent company, Impala Platinum BV (Implats) Zimplats has had a 50 per cent reduction in food waste through vermiculture and vermicomposting resulting in the reduction in pollution.

“Zimplats has embarked on vermiculture and vermicomposting waste management initiative, which has led to a 50 per cent reduction in food waste sent to the landfill, which in turn will result in an extension of the operating life landfill facility, as well as a reduction in pollution. The sustainable waste management initiative aims to reduce food waste and other bridgeable wastes that are normally disposed of through landfilling while creating valuable by-products,” the company said.

Globally, the rapid urbanization, industrialization, technological advancement, and population increase has led to worrisome challenges associated with increasing solid waste production, and management of such huge amounts of wastes is increasingly burdensome. Over one billion tonnes of solid wastes are generated annually and are ending up unscientifically in the environment, producing social, economic, and environmental costs. Proper management of this enormous amount of waste is a big challenge for humankind.

Researchers across the world are searching for new, innovative, and eco-friendly technologies for waste management. Biological methods are more suitable for waste treatment, as they recycle the various constituents of waste into valuable end products and can be cost-effective. Vermicomposting is one such effective biological method for waste management in which microbes assist earthworms in waste degradation.

Vermicomposting is a bio-oxidative natural decomposition process that occurs under mesophilic conditions further aided by the biochemical action of microorganisms. Various categories of wastes are vermicomposted using different earthworm species. The mutual action of worms and microbes convert waste into fine, homogenized, odour-free, nutrient-rich, and humus-rich manure that is called vermicompost.

Earthworms fragment the waste substrate in their intestine and improve their physicochemical characteristics by enhancing organic matter decomposition. Microorganisms present in the guts of earthworms help in the biochemical degradation of the waste. Vermicompost is an efficient growth promoter for plants, as it contains plant-available nutrients, a rich microbial population, humic substances, growth hormones, and enzymes.

A number of studies on the use of vermicompost as an organic fertilizer have proved that it improves crop growth and yield. Furthermore, vermicomposting also helps achieve a circular bio-economy by converting waste into useful products that are necessary for the overall sustainable development of a country.

Mimosa donates PPE to frontline workers in Zvishavane

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Mimosa donates PPE to frontline workers in Zvishavane

Platinum group metals (PGM) producer, Mimosa Mining Company has assisted frontline workers who have been impacted by the Covid-19 pandemic in Zvishavane and Mberengwa districts.

Rudairo Mapuranga

According to Mimosa’ parent company Implats, the company donated food hampers and Personal Protective Equipment to health practitioners in the districts in an effort to mitigate the effects of the Covid-19 pandemic.

“Our Mimosa operation has recently taken steps to mitigate the effects of Covid-19 on frontline staff, through donating food hampers and PPE to nurses, doctors and other health practitioners in Zvishavane and Mberengwa districts of Zimbabwe,” Implats said.

Also recently, Implats owned platinum miner, Zimplats partnered with the Mhondoro Ngezi Rural District Council (MNRDC) to construct a COVID-19 isolation centre, with Zimplats donating the furniture and equipment valued at US$43 000.

Since the beginning of the COVID-19 pandemic, Zimplats has demonstrated its core values of respect, care and delivery by donating ventilators, oxygen concentrators, oxygen tanks, disinfectants, sanitisers and knapsack sprayers and surgical masks to 8 hospitals as part of efforts to empower medical institutions.

The platinum mining giants have been instrumental in the fight against Covid-19 in Zimbabwe to help President HE Emmerson Mnangagwa for the country to achieve herd immunity by year-end.

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