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ZMF seeks to solve challenges involved in ASM taxation

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Zimbabwe Miners Federation (ZMF) will on Thursday host a webinar meeting with Zimbabwe Revenue Authority (ZIMRA) officials to look into the challenges faced by the Artisanal and Small-Scale Mining (ASM) sector on taxation, ZMF CEO Wellington Takavarasha has said.

Anerudo Mapuranga

The ASM sector has a myriad of problems characterized by low productivity, under-capitalisation, lack of technical and management skills, lack of transparency in their activities; some of which are unregulated and contribute to environmental degradation. This has made it complex for the taxation of the sector to be clear.

According to Takavarasha, the administration of the current tax regime in the sector has many problems which need to be addressed as a matter of urgency, hence ZMF will host a webinar meeting with ZIMRA officials on Thursday the 9th of September 2021 at 1000 hours to deliberate on these challenges.

“The taxation of the artisanal and small-scale mining sector remains complex. According to Zimra 2011, there are major challenges that are faced during the administration of the current tax regime in the mining sector which include transfer pricing and tax evasion,” Takavarasha said.

“ZMF will host a webinar meeting with ZIMRA officials on Thursday the 9th of September 2021 at 1000 hours to deliberate on the challenges in the taxation of the ASM sector. There will be a plenary session thereafter. Link codes for the meeting will be provided on Wednesday 8 September 2021,” he added.

Zimbabwe has a diverse mineral resource base that has not been significantly explored. The mining sector has emerged to become the key economic sector in the country in terms of contribution to the GDP exports, fiscal revenue FDI and employment.

Zambian president names new mines minister

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Zambia’s President Hakainde Hichilema on Tuesday announced the appointment of lawmaker Paul Chanda Kabuswe as the country’s new minister of mines and minerals.

Kabuswe, member of parliament for Chililabombwe, in Zambia’s northern copperbelt, was expected to be sworn in on Wednesday, the president’s office said in a press statement.
Hichilema also designated Francis Chipimo to act as central bank governor following the resignation of the current governor, Christopher Mvunga, the statement said. Chipimo has been serving as the deputy central bank governor of operations.

Africa’s second-biggest copper producer is in a protracted debt crisis that Hichilema, who won a landslide election victory last month over incumbent Edgar Lungu, has promised to resolve.

Lungu’s mines minister, Richard Musukwa, was also member of parliament for Chililabombwe before Kabuswe took his seat. The copperbelt province as a whole, a perceived Patriotic Front stronghold, delivered a surprise win for Hichilema’s United Party for National Development (UPND).

Reuters

Zimplats declares US$85m FY dividend

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ZIMBABWE’S biggest platinum miner, Zimplats, has declared US$85 million dividend for the financial year ended June 30, 2021.

During the financial year under review, the group realised revenue amounting to US$1,35 billion compared to US$869 million in 2020 for metal sales to Impala, its parent firm.

Sales to Impala are governed by a contract, which stipulates when payments are to be received and the prices to be effected.

“After the reporting date, the board of directors declared a final dividend of US$85 million (equating to 79 US cents per share) to shareholders on record as at 20 August 2021,” said the company.

Revenue from the sale of white matte and concentrate is recognised when the product has been delivered to Impala where it is subjected to further processing in accordance with contractual terms.

“No element of financing is present due to short-term nature of group contracts and credit terms are consistent with market practice,” it said.

Bank borrowings comprised a loan facility for general business purposes from Standard Bank of South Africa Limited.

The loan, which was guaranteed by Impala Platinum Holdings Limited, is a revolving facility of US$85 million and bore interest at three months LIBOR (London Interbank Offered Rate) plus seven percent per annum.

The first capital repayment installment amounting to US$42,5 million was made during the year ended 30 June 2019 and the balance of US$42,5 million was paid in December 2019.

On ore and concentrates haulage, Zimplats said it has a contract for haulage trucks used for the transportation of ore and concentrates between Ngezi and the Selous Metallurgical Complex.

The contract has a period of five years from November 1, 2017 to October 31, 2022.

“As at 30 June 2021, the present value of the lease liability was US$2,7 million (2020: US$4.3 million) at a discount rate of 9,6 percent,” said the platinum miner.

 

 

 

 

 

The Chronicle

Iron ore price rises as China’s imports hit record

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The Iron ore price rebounded on Tuesday from a seven-month low after data showed China’s imports in August picked up for the first time in five months, rising 10.1% over July.

China imported iron ore worth a record $20 billion in August, despite steel production curbs in the world’s largest producer. Total volumes were 97.5 million tonnes.
According to Fastmarkets MB, benchmark 62% Fe fines imported into Northern China were changing hands for $137.97 a tonne, up 4.2% from Monday’s closing.

It was also a record month for the value of China’s overall imports from Australia, with much of that likely coming from shipments of the red metal.

The most-traded iron ore contract for January 2022 delivery on China’s Dalian Commodity Exchange ended daytime trading 1.1% higher at 763 yuan ($118.18) a tonne, recovering from losses that brought it to as low as 718.50 yuan earlier in the session, its weakest since February 4.

China's iron ore import.

Despite China’s steel output controls to curb carbon emissions, Sinosteel Futures analysts said domestic demand for iron ore has not significantly dropped.

“There has been no large-scale production suspension and restriction,” Sinosteel Futures said in a note.

Guinea coup

A military junta seized control in the West African country of Guinea and detained President Alpha Conde, casting uncertainty over key bauxite and iron ore supplies.

Guinea’s 110-kilometer Simandou range hosts one of the largest untapped iron ore deposits in the world, containing more than 8.6 billion tonnes of ore with an average 65% iron content.

Simandou is situated in the remote southeastern interior of the country, a vast distance from the capital Conakry.

“The infrastructure demands of the project are consequently massive in scale, complexity and cost, larger on all measures than the bauxite export industry that has been established in the country in recent years,” said Andrew Gadd, senior steel analyst at CRU Group.

“Geopolitical risk has been one of many hurdles hindering the progress of Simandou up until now and the military coup that is now unfolding in the country marks a significant deterioration in the prospects for successful development of the deposit.”

In January, Israeli diamond and mining tycoon Beny Steinmetz was found guilty of bribing a public official to secure the giant iron-ore mine in Guinea.

He was sentenced to five years, but his lawyers say they will appeal all the way to the Supreme Court.

Mining 

BREAKING: Zim Lockdown restrictions moved to level 2

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President Emmerson Mnangagwa today announced the relaxation of the current COVID-19 Level four lockdown measures to Level Two.

Among other things, Mnangagwa adjusted curfew hours to between 10 PM and 5.30 AM, while businesses are now allowed to operate from 8 AM up to 7 PM.

Restaurants and bars within hotels and lodges have been given the green light to open between 8 AM to 10 PM.

Intercity travel is now permitted and transport operators and members of the public are expected to observe public health measures. However, beer halls, bars and nightclubs remain closed.

These are some of the lockdown changes announced by the President:

  • Curfew from 2200 to 05:30hrs
  • Businesses to operate from 0800 to 1900hrs
  • Restaurants and bars within hotels and lodges to operate between 1000 to 2200hrs
  • Bottle stores to open between 1000 and 1600hrs
  • Beer outlets and nightclubs remain closed.
  • Public gatherings to not exceed 100.
  • Decongestion of offices shall be at 50%
  • Intercity now permitted in strict adherence to COVID-19 health measures
  • Low-risk sports to resume from 0800 to 1600hrs
  • High and medium-risk sporting activities to seek approval.
  • Persons entering the country should present a COVID-19 test valid less than 48 hrs.
  • Lockdown relaxation to be reviewed in 2 weeks.

Covid-19

COVID-19 affects different people in different ways. Most infected people will develop mild to moderate illness and recover without hospitalization.

Most common symptoms:

fever
dry cough
tiredness

Less common symptoms:

aches and pains
sore throat
diarrhoea
conjunctivitis
headache
loss of taste or smell
a rash on skin, or discolouration of fingers or toes

 

Guinea junta plans unity government, reassures mining firms

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A military junta that seized power in Guinea said it plans to establish a unity government pending a transition to civilian rule, urged mining companies to keep operating and reassured them that their existing agreements with the state will be honored.

“A government of national unity will be set up to lead the transition,” coup leader Colonel Mamady Doumbouya said in an address to members of the toppled administration on Monday. “The curfew in mining zones has been lifted to ensure continuity of production, and ports remain open for exports,” he said. Air links have also been restored.

Special forces led by Doumbouya seized power on Sunday after detaining President Alpha Conde, who’d held power since late 2010. The 83-year-old leader has so far resisted pressure to resign, according to two people familiar with the matter who asked not to be identified because they aren’t authorized to speak to the media.

Doumbouya will present himself as the leader of the transition, the people said.

There were no signs of unrest in Conakry overnight in response to the military takeover by the junta.The coup leader has ordered members of a presidential security unit to confine themselves to a barracks outside the capital city of Conakry, and banned former officials from leaving the country. He also instructed the secretaries-general of Guinea’s ministries to take over the role of ministers, and the governors of the regions to be replaced by military commanders.

Guinea is a key global supplier of bauxite, an ore that’s processed into alumina and then aluminum, which is used in cars and cans. The bulk of the West African nation’s bauxite exports are sent to smelters in China, the biggest producer of the metal. Guinea shipped 82.4 million tons of the mineral globally last year, according to government data.

China and Russia on Monday joined the United Nations and the U.S. in condemning the coup.

“China opposes coup attempts to seize power and calls for the immediate release of President Conde,” Chinese Foreign Ministry spokesman Wang Wenbin told reporters in Beijing on Monday. “We hope all parties can be cool headed and exercise restraint, keep in mind the fundamental interests of the nation and people, address the relevant issue through dialog and consultation and safeguard peace and stability in the country.”

Leaders of two African blocs have also pushed for Conde’s release. The Economic Community of West African States threatened sanctions against Guinea, while the African Union called for its Peace and Security Council to meet urgently over the matter.

Financial mismanagement

Conde’s overthrow was necessary to address financial mismanagement and corruption in Guinea, and the deposed leader is safe and has been in contact with his doctors, Doumbouya said on Sunday.

The coup has upended a decade of stability in Guinea, and will be of concern to other African leaders, according to Eric Humphery-Smith, Africa analyst at risk intelligence company Verisk Maplecroft.

“While the feeling among many Guineans is jubilation, make no mistake that this is two steps backwards for both the country’s democracy and economy,” he said in emailed comments. “Recovering what until now was a stable and predictable operating environment is anything but a given.

Bloomberg News

Aluminum price jumps again as Guinea coup adds to supply worries

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Aluminum climbed to the highest in more than a decade after a coup in Guinea fueled concerns over raw material supplies, with futures holding gains even after the head of the junta urged miners to keep operations running.

Metal prices extended gains and producer shares surged — industry leader Aluminum Corp. of China, or Chalco, jumped as much as 10%. Guinea is a major supplier of bauxite, the feedstock needed to make aluminum, and accounts for more than half of the imports by China.

A unit of the military seized power Sunday and suspended the constitution, with head of special forces, Colonel Mamady Doumbouya, urging the army to back him. While the unrest raises the possibility of disruption, so far there’s no sign that shipments or mines have been affected.

Aluminum, which is used in everything from car parts to drinks cans and home appliances, had already climbed about 38% this year in London before the coup, as consumer demand and economic activity rebound. At the same time, smelters in China have struggled to maintain output during a seasonal power crunch and as Beijing seeks to rein in the country’s carbon emissions.

Aluminum held gains Monday even after Doumbouya said that maritime borders remain open to export mining products and a curfew on mining activities has been lifted. The junta is urging mining companies to keep operating, he said in a speech. Earlier, Chalco, which has a bauxite project in Guinea, said all of its operations are normal and it has ample bauxite inventories at its plants in China.

[Click here for interactive aluminum price chart]

While United Co. Rusal founder Oleg Deripaska warned that the market “can be seriously shaken” by the situation, traders were still waiting on Monday for further clues about potential supply cuts.

The bauxite market has been in surplus for years, and any disruption would need to be severe to alter that dynamic, according to Michael Widmer, head of metals research at Bank of America Merrill Lynch.

“I’m bullish aluminum, but for different reasons,” Widmer said by phone from London. “That said, if you do have issues in a country that supplies 20% of bauxite to the global market, then clearly that will be a problem.”Play Video

Prices on the London Metal Exchange rose as much as 2% to $2,782 a ton, the highest since May 2011, before closing at $2,773. In China, futures jumped as much as 3.4% to the highest since 2006, before paring gains. Other industrial metals were mixed on the LME, with copper and zinc up and nickel, lead and tin all down.

“Investors are quite concerned given China buys a big chunk of bauxite from Guinea,” though there haven’t been reports of disruptions yet and the extent of any impact will depend on how the situation evolves, said Xiong Hui, chief aluminum analyst with Beijing Antaike Information Development Co.

Investors are also looking at ongoing production cuts in China’s Guangxi province, which is further tightening the market, Hui said.

The energy-intensive aluminum industry has come under increased scrutiny as part of Beijing’s pollution crackdown. China produces around 60% of the world’s total, with concerns around output prompting some of its largest smelters to pledge to ensure supply, and metal to be released from state reserves to ease tightness. The country has become increasingly reliant on imports, a rare development that’s drained global supplies of the usually abundant metal.

Bloomberg

Matobo miners shortchange council

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THE Matobo Rural District Council has bemoaned low revenue inflows amid concerns that mining companies operating in the district were not paying enough levies.

Council chief executive officer Elvis Sibanda said mines hardly paid levies to the local authority.

“We have a very serious problem with the mining companies in the district. The mines hardly pay their levies to council. They are quick to pay to the central government but not to us,” Sibanda said.

Sibanda said the other problem in the district was the issue of mine owners changing very often.

“You discover that there are some miners in the districts and they are not registered and that alone becomes a challenge. The other issue is that someone owns a mine and the next day that same mine has been taken over by someone else,” Sibanda said.

“In terms of development, we are still having a challenge with mines.”

Sibanda also complained over the issue of land degradation by illegal miners.

“On the ground it is visible there is no reclamation of the ground. Most of these miners are illegal miners and we all know how they attend to the environment,” he said.

Sibanda could not be drawn into revealing the total revenue debt owed by the mining sector to the council.

Recently, villagers in Matobo district blocked a mining company, Mazinahue Syndicate, from mining in the area, fearing that they would be evicted from their ancestral lands.

Most communities located near mines have been crying foul of not benefiting from the mining activities in their communities.

 

 

 

NewsDay

Ngozi Mine smoke chokes Byo suburb

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THICK plumes of smoke billowing from a sprawling Bulawayo City Council (BCC) landfill site popularly known as Ngozi Mine in Richmond suburb are a daily sight.

The hazardous smoke is now encroaching the nearby Cowdray suburb resulting in the choking smoke wafting into the houses thereby putting the lives of residents in danger.

The residents have since petitioned BCC to address the landfill air pollution which they say is affecting them.

Recent studies have found that air pollution is linked to childhood cancers and cognitive impairment in both children and adults.

According to the World Health Organisation (WHO), up to 14 percent of all children aged five to 18 have asthma and every year, more than 500 000 children younger than five years die from respiratory diseases linked to air pollution.

It may also affect foetal brain growth and prolonged exposure to air pollution can also lead to heart and lung-related illnesses.

Richmond suburb landfill site popularly known as Ngozi Mine emits smoke that is affecting Cowdray Park suburb residents in Bulawayo.

The Cowdray Park residents said due to the smoke from the landfill, they are developing respiratory problems.

This comes as the Meteorological Service Department also warned that air pollution is on the increase during this time of the year and could affect members of the public with asthma, hay fever among other respiratory conditions.

A Chronicle news crew visited the suburb and residents appealed to council to urgently address the problem.

The news crew also observed the thick smoke from the landfill that the residents are complaining about.

Ms Eliza Ndlovu said she often experiences challenges in breathing as a result of the air pollution.

“We are now forced to go to bed wearing masks to prevent inhaling the polluted air. When they start burning you feel like you are being suffocated by the smoke. I will be continuously coughing and this triggers asthma attacks. I’m not the only one complaining about this problem,” said Ms Ndlovu.

She said residents do not even know what is being burnt at the landfill and they suspect that even dangerous chemicals are being dumped there.

Another resident, Mr Simbarashe Nyoni said he has lived in Cowdray Park for about 20 years and the pollution is worsening by each passing year.

He said when the scavengers start burning waste at the landfill it does not only affect their breathing but their eyes become itchy as well.

“The stuff is burnt almost every day. Some days are better but when its serious you will definitely feel like you are choking. We don’t know what needs to be done but something has to be done as soon as possible. This will have a long-term impact on our lives,” he said.

The Chronicle news crew also visited the landfill and could not stay even for five minutes on site due to the choking smoke emanating from the dumpsite.

Cde Kidwell Mujuru
The news crew however, observed that there were some scavengers at the site. They said they pick up plastics to sell to recycling companies and the smoke was also affecting them.
The crew also observed that there were a lot of children of school going age who were also scavenging for waste, some of them barefooted.

Cowdray Park Councillor Cde Kidwell Mujuru said the air pollution issue has seen residents petitioning council to address the problem.

“Residents in my ward are really concerned about the air pollution that is coming from Ngozi Mine landfill. For the past three months, the pollution has worsened. There are some scavengers who burn waste in search of scrap metal.

Some residents have been rushed to hospital after asthmatic attacks triggered by the smoke,” said Cde Mujuru. He said he has reported this to council which at times send workers to put out the fires.

Chronicle is in possession of the petition that residents submitted.

“We the residents of Cowdray Park in general and particularly the residents of DRC Section B are deeply concerned about Ngozi Mine looming health disaster caused by continuous and unwarranted burning at the dump site. We have observed for a long time, clouds of
chemically polluted smoke rising from the dumpsite polluting the air that we breathe as residents of Cowdray Park, particularly Section B because of our proximity,” read part of the petition.

“Some of the smoke filters into our houses and chokes us during our sleep at night. This is very unhealthy to us adults, children and the environment. This has immediate and longterm effects on our health.”

The residents demanded that council should come up with a clear road map and provide them with feedback on how it is going to address the challenge.

The country’s environmental watchdog has also raised a red flag over the air pollution at
Richmond Landfill site.

Environmental Management Authority (Ema) Bulawayo provincial manager Mrs Sithembisiwe Ndlovu said the authority engaged council to address the problem.

“We are dealing with the landfill issue. We know there is air pollution that is happening there. We have engaged the council to come up with lasting solution to the problem. But in terms of health impact, I will leave that to health experts,” said Mrs Ndlovu.

BCC admitted that it was having challenges addressing the air pollution at the landfill and has employed a multi-stakeholder approach in a bid to address growing environmental problem BCC corporate communications manager Mrs Nesisa Mpofu said council is trying
to cover up the fire using gravel and also engage informal waste pickers as they are the ones who cause the fires.

“Council has engaged its regulatory partners such as Ema and the Zimbabwe Republic Police on the best way to prevent such fires,” said Mrs Mpofu. –

 

 

The Chronicle

2 die, one injured in Insiza mineshaft collapse

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TWO people died and another one was critically injured after a mineshaft collapsed at Stembok Mine in Insiza in Matabeleland South province last Wednesday.

Acting provincial police spokesperson Sergeant Stanford Mguni confirmed the incident.

“The accident occurred at 7pm at the Stembok Mine in Insiza block Filabusi. It is a registered mine. A team of six mine workers were on duty and three of them remained above the ground while three went underground in a 12-metre deep shaft,” Mguni said.

Mguni said while the workmates were trying to rescue the one who was half buried, the mine shaft collapsed again burying the two miners and they could not be retrieved.

“They went to report to the police who came and assisted to retrieve their bodies,” he said.

Mguni urged miners to practise safe mining methods to avoid accidents.

“Through campaigns, we have been calling on miners to practise safe mining methods to avoid such fatalities. Miners should also often assess their shafts to make sure that they are safe to work on,” he said.

“They can even hire safety experts from the Mines ministry to help them assess and they should also buy safety wear when getting underground.”

Cases of artisanal miners dying in mineshafts have been increasing with rescue teams usually failing to retrieve trapped bodies.

Newsday