The Zimbabwe government has blacklisted well-known diamond dealer, Jamal Ahmed, from participating in the Minerals Marketing Corporation Of Zimbabwe (MMCZ) diamond auction as authorities sweat to bust a diamond-buying syndicate influencing prices on the auction a local publication has reported.
More to follow…
Zimbabwe is in the process of reforming the Mines and Minerals Act through the Mines and Minerals Amendment Bill.
The current Mines and Minerals Act of 1961 is an outdated legislation with unlimited challenges which have been affecting the ability of the nation to realise maximum mineral resource beneficiation especially for the locals who are operating as artisanal and small-scale miners.
The government has, over time, made various attempts to amend the mining regulatory regime targeting the Mines and Mineral Act but these efforts have not led to a final product being gazetted.
The Mines and Mineral Amendment Bill, according to the Zimbabwe Environmental Law Association (ZELA), seems to have lost its momentum after years of constantly amending and strengthening it to resolve predominant challenges within the mining value chain.
Since 2012 when the Mines and Minerals Act Amendment started, the government has preferred to address some of the highlighted mining challenges using alternative means such as through policies and statutory instruments rather than endorsing the proposed Bill into effect.
Finalisation of the Mines and Mineral Amendment Bill will, among other things, make Hon Edmond Mkaratigwa, the Mines and Mining Development Portfolio Committee chairperson and Hon Winston Chitando, Mines and Mining Development minister, the greatest administrators after 1980.
The finalisation of the Bill has the ultimate answer of eradicating problems in the mining sector.
The 100-tonne gold output underpinned with the US$12 billion target by 2023 can be achieved if these authorities put in place friendly mining policies and bills.
Therefore, these two should push for the finalisation of the new Mines and Minerals Act before their terms of office ends in 2023.
If a new minister or a chairperson is chosen next year, this will, however, destabilise progress made so far.
For Zimbabwe to optimally benefit from the mining sector, it is critical that Parliament (Mkaratigwa at the forefront) crafts a sound legal framework that also addresses the urgent need for geomagnetic exploration of mineral deposits along the Great Dyke.
This will buttress the desire by the government to grow the mining industry from a US$3 billion to a US$12 billion annual gross turnover sector by 2023.
In that context, policymakers also need to insist on ensuring that there is a comprehensive national mining policy that must form the bedrock of the country’s mining laws and attendant regulations.
Hon. Winston Chitando and Edmond Mkaratigwa, the ball is in your court! Make this happen and become champions of progress.
New Mines and Minerals Act should be finalised now!
DOWNLOAD Mines and Minerals Act of Zimbabwe updated to 2021
Acts 38/1961, 24/1962 (s. 2), 18/1963 (s. 24), 19/1963 (s. 12), 7/1964, 22/1964 (s. 54), 10/1966, 9/1967 (s.
17), 30/1968 (s. 38), 17/1969, 61/1969, 80/1971 (s. 33), 39/1973 (s. 52), 46/1973, 15/1975, 22/1976, 41/1976,
42/1976 (s. 10), 48/1976, 7/1978, 8/1978, 41/1978 (s. 12), 15/1979, 32/1979, 37/1979, 29/1981, 20/1982,
26/1987, 8/1988, 9/1990, 14/1991, 3/1992, 22/1992 (s. 9), 10/1993, 10/1994; 9/1997 (s. 10); 12/1997 (s. 15;)
22/2001 (s. 4, 12/2006 (s. 46); 10/2009(ss34-44); R.G.N.s 153/1963, 801/1963, 214/1964, 386/1964, 216/1970, 217/1970, 313/1970, 88/1974, 1135/1975.
ARRANGEMENT OF SECTIONS
PART I
PRELIMINARY Section
PART II
PART III
PART IV
PART V
PART VI
The World Gold Council has released its latest Gold Demand Trends Report revealing that annual demand has recovered many of the covid-induced losses from 2020.
Australia Mining
Demand for gold reached 4021 tonnes for 2021, with the final quarter hitting 1147 tonnes, an increase of almost 50 per cent from 2020 and its highest since mid-2019.
“Gold’s performance this year truly underscored the value of its unique dual nature and the diverse demand drivers,” World Gold Council EMEA senior analyst Louise Street said.
Gold bar and coin demand rose 31 per cent to an eight-year high of 1180 tonnes, as retail investors sought a safe haven against the backdrop of rising inflation and ongoing economic uncertainty caused by the coronavirus pandemic.
“On the investment side, the tug of war between persistent inflation and rising rates created a mixed picture for demand,” Street said.
“Increasing rates fuelled a risk-on appetite among some investors, reflected in ETF (exchange-traded funds) outflows.
“On the other hand, a search for safe-haven assets led to a rise in gold bar and coin purchases, buoyed by central bank buying.”
The World Gold Council data reported outflows of 173 tonnes in 2021 from gold-backed exchange-traded funds while rising interest rates made holding gold more expensive.
Nevertheless, these outflows represent only a fraction of the 2200 tonnes that gold ETFs have accumulated over the preceding five years, demonstrating the continuing importance investors place on including gold in their portfolios.
“Declines in ETFs were offset by demand growth in other sectors. Jewellery reached its highest level in nearly a decade as key markets like China and India regained economic vibrancy,” Street said.
“We expect similar dynamics to influence gold’s performance in 2022 with demand drivers fluctuating according to the relative dominance of key economic variables.”
“How central banks deal with persistent high levels of inflation will be a key factor for institutional and retail demand in 2022.”
The use of gold in the technology sector in 2021, reached a three-year high of 330 tonnes, an increase of 9 per cent.
While technology demand is comparatively smaller than other sectors, its uses are far-reaching and prevalent in a variety of electronics.
The World Gold Council has released its latest Gold Demand Trends Report revealing that annual demand has recovered many of the covid-induced losses from 2020.
Demand for gold reached 4021 tonnes for 2021, with the final quarter hitting 1147 tonnes, an increase of almost 50 per cent from 2020 and its highest since mid-2019.
“Gold’s performance this year truly underscored the value of its unique dual nature and the diverse demand drivers,” World Gold Council EMEA senior analyst Louise Street said.
Gold bar and coin demand rose 31 per cent to an eight-year high of 1180 tonnes, as retail investors sought a safe haven against the backdrop of rising inflation and ongoing economic uncertainty caused by the coronavirus pandemic.
“On the investment side, the tug of war between persistent inflation and rising rates created a mixed picture for demand,” Street said.
“Increasing rates fuelled a risk-on appetite among some investors, reflected in ETF (exchange-traded funds) outflows.
“On the other hand, a search for safe-haven assets led to a rise in gold bar and coin purchases, buoyed by central bank buying.”
The World Gold Council data reported outflows of 173 tonnes in 2021 from gold-backed exchange-traded funds while rising interest rates made holding gold more expensive.
Nevertheless, these outflows represent only a fraction of the 2200 tonnes that gold ETFs have accumulated over the preceding five years, demonstrating the continuing importance investors place on including gold in their portfolios.
“Declines in ETFs were offset by demand growth in other sectors. Jewellery reached its highest level in nearly a decade as key markets like China and India regained economic vibrancy,” Street said.
“We expect similar dynamics to influence gold’s performance in 2022 with demand drivers fluctuating according to the relative dominance of key economic variables.”
“How central banks deal with persistent high levels of inflation will be a key factor for institutional and retail demand in 2022.”
The use of gold in the technology sector in 2021, reached a three-year high of 330 tonnes, an increase of 9 per cent.
While technology demand is comparatively smaller than other sectors, its uses are far-reaching and prevalent in a variety of electronics.
The report can be viewed here.
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In the three hardest-hit countries, tens of thousands of homes were damaged. Some collapsed under the heavy rain, trapping victims in the rubble.
Swollen rivers washed away bridges and submerged fields, drowning livestock and destroying the livelihoods of rural families.
In Madagascar, 130,000 people fled their homes. In the capital, Antananarivo, schools and gyms were turned into emergency shelters.
“We only brought our most important possessions,” Berthine Razafiarisoa, who sheltered in a gym with his family of 10, said.
In northern and central Mozambique, Ana destroyed 10,000 homes and dozens of schools and hospitals, while downing power lines.
Mozambique and international weather services warned that another storm, named Batsirai, has formed over the Indian Ocean and was expected to make landfall over the weekend.
It “might evolve into a severe tropical storm in the next few days”, the United Nations said in a statement.
Up to six tropical cyclones are expected before the rainy season ends in March.
Ferrochrome producer Afrochine Smelting (Pvt) Ltd, has dismissed the Civil Society Statement on Chinese investment as racially motivated while agreeing with the Chinese statement that mocked the government of Zimbabwe for being inept.
Rudairo Mapuranga
The Chinese owned chrome miner said it has been following the country’s laws and is involved in many Corporate Social Responsibility (CSR). However, the miner said it agrees 100 per cent with a statement released by the Chinese Embassy which mocks the government of being incompetent without the help of the Chinese.
“We agree fully with the statement by the Chinese Embassy in Zimbabwe dismissing coordinated, racist attacks on some investors in Zimbabwe. On our part as good corporate citizens, we observe existing laws and regulations and care for our communities and friends.” Afrochine said.
According to the statement released by the Chinese Embassy in Zimbabwe, without Chinese help, Zimbabwe will be without electricity and internet.
“Were it not for China’s funding support and the work of Chinese companies in ICT and power generation, even the statement in question would perhaps have to be scribbled on a piece of paper, in a candle-lit room, and never find its way on a functioning internet,” said Chinese diplomats in a statement.
In their statement, the civil society groups expressed concern over electricity Chinese business operations saying that the Chinese were very dubious in the way they do business in Zimbabwe.
Co-signed!
We agree fully with the statement by the @ChineseZimbabwe dismissing coordinated, racist attacks on some investors in Zimbabwe. On our part as a good corporate citizens, we observe existing laws and regulations and care for our communities and friends. 🇨🇳🇿🇼 https://t.co/srjkbc5fmf— AfrochineZimbabwe (@AfrochineZ) January 24, 2022
“We, the Zimbabwe Civil Society groups, united in our common objective of defending our communities and national heritage against investment projects that disempower and impoverish our people, seek to register our deep concern with the behaviour of Chinese business operations in Zimbabwe. Our joint statement is not meant to defame China or trigger xenophobic resentment towards Chinese nationals in Zimbabwe. On the contrary, we seek fair and mutually beneficial relations between the two countries. We have however noted with deep concern the threats of displacements and mining projects in ecologically sensitive places around the country without any due regard for the concerns of the local people.
“Zimbabwe is a country endowed with vast natural resources in the minerals, flora and fauna categories. These resources have the potential to reduce poverty, improve human security and help achieve President Mnangagwa’s target of an upper-middle-income economy by 2030 if managed properly.
“Sadly, the abundance of natural resources has become the major cause for poverty, inequality, human rights abuses, environmental crimes and transnational organized crime that are prejudicing the country of billions of dollars annually and this has been going on for decades.
“Regarding the growing resentment towards Chinese investments in Zimbabwe, it is important to highlight that for the past 15 or so years, China has been the dominant player in Zimbabwe’s minerals sector, which saw Chinese small scale and large-scale miners getting deep into rural communities to start mining operations.” They said.
The civil society groups also said,” If China respects and loves Africa as it purports, then the primary sign is to place ordinary citizens at the centre of development.”
PARLIAMENTARY Portfolio Committee on Mines and Mining Development chairperson, Mr Edmund Mkaratigwa has said the draft Mines and Minerals Amendment Bill should be tabled in the legislative assembly during the first session of Parliament.
He said the Bill should be among the key priorities during this session of Parliament.
This comes as the sector is currently being governed by the Mines and Minerals Act of 1961, which has been described by stakeholders as archaic.
Since it was crafted over five decades ago, the current Act is reportedly creating a lot of confusion in the mining sector which stakeholders believe will be eradicated if the new bill is passed into law.
“The draft Mines and Minerals Amendment Bill should be among the key priorities in this session of Parliament and in this Government year.
“It has been placed among the key enablers of the 2022 Budget targets and the national vision for the upper middle-income economy,” said Mr Mkaratigwa in an interview yesterday.
He said the draft Bill still has to pass through the “hall of critics before it goes to the hall of fame”.
In that respect, Mr Mkaratigwa said all that is currently in it is not guaranteed to remain as consultations with stakeholders will seal what would be upheld as part of the sectoral legislative framework for our country.
“Naturally, where it included compelling mining companies to make their production and revenues a public record and also to enable both the state and citizens to monitor, curb mineral leakages and illicit financial flows, it aids accountability but the main issue is whether that should be part of the Act or the strategy,” he said.
Mr Mkaratigwa said the current spirit of the draft Bill is to have the best law for Zimbabwe, that strikes a balance and answers key questions by stakeholders.
“His Excellency the President had noted that new issues were introduced not necessarily that he was against it, but that he needed to give it more attention and adequate scrutiny,”
Mr Mkaratigwa said, adding the Executive wants sanity in the mining sector.
“The Executive should be at the forefront in advancing sectoral institutional and practice reforms being reinforced through the bill. Parliament is willing, the broader society is willing, the Executive is willing; and that means, the intention and spirit of the Bill cannot be delayed any further.”
WOMEN mining in Matabeleland South Province want a bigger slice of the cake and are seeking small-scale mining claims in gold rich areas across the province.
Gwanda District sits on the Greenstone gold belt which hosts notable gold producers including Blanket, Vubachikwe, Jersey, Freda and Horn mines.
Women in mining believe mining claims in richer areas will improve the scope of their work, spur their growth and increase their returns in general.
Speaking during an engagement meeting with women in production in Gwanda last week, Mthandazo Women Miners Association chairperson Ms Sithembile Ndlovu said their current claims were not yielding much.
“We want rich claims where we can realise significant gains. We also want our families and the country as a whole to prosper. We recently pegged at areas that were giving us 50g of gold ore or less yet richer areas are available.
We’re failing to get access to rich mining claims and it would seem men are going ahead of us in this regard. We don’t know how the men are doing it but they’re getting the claims,” said Ms Ndlovu.
She said various income streams were funding their operations.
“We’ve been getting loans through the Ministry of Women Affairs (Community, Small and Medium Enterprise Development) to fund our operations. Through the assistance of the ministry, we continue to grow.
Mthandazo is now sustainable as we speak. We have students on attachment coming from universities for procurement at Mthandazo because there’s money from investors that needs to be accounted for. Some of us did not study accounting but through these students who are doing accounting, we’re able to keep our books in order.”
Ms Ndlovu, who is also the Zimbabwe Miners Federation Matabeleland South Chapter Women Affairs Secretary encouraged more women to join the mining industry.
“As it stands, I was the only woman who contested in the ZMF Matabeleland South chapter elections. Women don’t realise the potential they have to contribute towards the prosperity of the country. We also need agents in our districts to help the miners so that they’re not burdened by the work.
Women used to be scared to approach the Ministry of Mines (and Mining Development) but through various engagements, we’re now being assisted.”
Ms Ndlovu bemoaned the violence and gangsterism in some mining areas in the province.
“We’re now scared of being attacked and appeal to the relevant authorities to assist us so that we feel secure. Moving around with as little as 10g of gold ore is now dangerous as it is still worth a lot of money that someone would want to steal from you,” she said.
Illegal gold miners have sprouted all over the province as they seek the precious metal.
Mineral output is a source of foreign currency and mining is a source of employment for many.
However, illegal gold miners have left a trail of destruction in some communities while in other areas, crime rates have risen because of the influx of illegal gold miners.
Holcim could sell its Zimbabwe unit, Lafarge, as part of the world’s largest cement company continuing sell-off of assets globally.
Lafarge Zimbabwe is one of the country’s biggest cement companies, and has been increasing investment to take advantage of rising cement demand. But it could become part of Holcim’s global consolidation strategy.
“We are constantly evaluating possibilities to align our portfolio with this vision to open new growth opportunities for our company,” a Holcim spokesman told Bloomberg. He would not comment on “market rumours” that the Zimbabwe unit may be among the units being sold off.
A likely buyer is Huaxin Cement, one of China’s biggest cement companies. Huaxin bought Lafarge Zambia and Lafarge Cement Malawi late last year. In June, Huaxin bought 75% of Lafarge Zambia for US$150 million and spent US$10 million to buy Pan African Cement from Lafarge Cement Malawi. In 2020, Huaxin bought Tanzania’s Marvini Limestone for US$145 million, its first investment in Africa.
Last year, Holcim sold part of its Ghana business and disposed of its Brazil unit for US$1 billion.
In Zimbabwe, the past year has been one of contrasts for the cement company.
Increased construction inspired the company to lay out a US$25 million expansion plan to meet growing demand for building materials. But the company also faced rising costs, the surprise departure of its CEO and a plant accident that has stopped cement production for a quarter.
In September, CEO Precious Nyika stepped down after the company took a fine of the equivalent of US$1 million for exchange control violations. She had been in the job for just over a year. Geoffrey Ndugwa, who has been with the company since he joined it in 2001, replaced Nyika in December.
Ndugwa’s last job was CEO of Lafarge Malawi, which was sold to Huaxin. He declined to comment on speculation about a sale.
A roof collapse at Lafarge’s Manresa mills has stopped production since October, and the company has issued a warning that sales will be seriously hit.
In April, Lafarge commissioned a new US$2.8m dry mortar plant. The new plant has sharply increased output of dry mortar products – such as adhesives and agricultural lime – from just 7,000 tonnes per year to 100,000 tonnes annually, equal to national demand.
Lafarge also announced plans to use output from the new plant to launch 3D-printed low-cost housing, which would be a first for Zimbabwe.
The company has also started construction of a separate Vertical Cement Mill plant, which will more than double Lafarge’s annual cement milling capacity from the current 450,000 tonnes to one million tonnes. Completion is expected in the first half of the year.
Bloomberg/newZWire
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