Mining ZimbabweLatest Mining News, Policy and Industry Updates

HWANGE Colliery Company Limited (HCCL) is working towards implementing a lasting solution to the Deka River pollution which has haunted it for decades.

The company has been cited as one of the major polluters of Deka River alongside Zimbabwe Power Company (ZPC). The companies are accused of discharging acid mine drainage from old underground mining activities.

Underground mining results in collapse of the overlying rock strata and when mining terminates, the voids in the fractured rock fill with water and decanting occurs from the lowest opening. The water is acidic as a result of its reaction with pyrite in unmined coal and
in the host rocks.

Acid mine drainage is one of the mining’s most serious threats to water. A mine draining acid can devastate rivers, streams, and aquatic life.

Responding to queries on what the company was doing to address the problem during a stakeholders meeting organised by Zanu-PF Hwange District Coordinating Committee last week, HCCL Safety, Health and Environmental Quality manager Mr Butholezwe Dube said the company was working on finding a permanent solution to the Deka pollution.

“Our challenge with coal is acid mine drainage where the No. 1 Old Ground Mine accumulated water over time resulting in some of it escaping through old exploration boreholes. We have among other interventions come up with a wetland system where we grow plants that absorb the chemicals.

We are also using a neutralisation system of adding lime to reduce the acidity of the water. We accept blame in that we are discharging effluent, we are doing our best to treat the water and have managed to plug the old exploration boreholes save for one problematic one near Zinwa which we are working on addressing.

We are currently exploring a technology of converting this water into drinkable, it is doable but expensive. Countries such as South Africa are doing that to manage the issue and this will help bring a permanent solution to the constant pollution,” said Mr Dube.

He said since their activities had compromised the quality of water for both human and livestock, the coal miner was drilling and rehabilitating boreholes with three having been done in some of the affected areas.

“We have drilled and handed over a borehole while three more will be ready for commissioning before September.”

Environmental Management Agency district environment officer, Mr Nothani Ndlovu said a permanent solution was needed to address the Deka pollution as fining or prosecuting offenders was not enough to deal with the problem.

“The pollution is a concern to us. We have been having that issue over a period of 20 years.

We have direct and indirect sources of effluent but our biggest problem is AMD which are toxic and have a negative impact on the environment. Yes, there have been interventions put in place but there is a major parameter which remains even after treatment such as manganese whose levels are too high downstream. We have issued tickets and orders but we expect them to come up with plan,” he said.

The companies were given up to 14 August to address the raised concerns.

The Sunday News

THE Zimbabwe Miners Federation (ZMF) has called on the Government to set up mobile clinics in mining areas to help vaccinate miners so that they can positively contribute to the country’s target to turn the mining sector into a US$12 billion industry by 2030.

In an interview with Sunday News Business, ZMF national secretary for women affairs Mrs Jescah Mazivazvose said some miners were being ignorant of the Covid-19 and were not adhering to World Health Organisation (WHO) Covid-19 regulations.

“Miners both men and women are ignorant of the Covid-19, they do not adhere to WHO regulations with most of them not even wearing masks. They think that the pandemic only affects those living in urban areas and they are spared.

“They lack the right knowledge and that is why as female miners we are calling upon the Government to visit mining areas and educate people about the Covid-19 pandemic and at the same time bring mobile clinics to vaccinate the miners,” said Mrs Mazivazvose.

She said that a large percentage of miners were not vaccinated due to ignorance and the fact that vaccination points were far and needed to be decentralised.

Mrs Mazivazvose said vaccination of miners will help revive the mining sector that has been severely affected by the pandemic and preserve lives that can immensely contribute towards the Government achieving its goals.

“Getting miners to be vaccinated will ease the way of doing business and preserve lives giving female miners as well a chance to participate and contribute towards the 2023 vision of making the mining sector a US$12 billion industry,” said Mrs Mazivazvose.

She said female miners were of paramount importance in making sure that gold mined was delivered to Fidelity Printers and Refiners.

“As women we have transparency and integrity. We do not use the illegal markets and we try by all means to deliver our gold through the right channels.”

She said women in the mining sector continue to face a number of challenges.

“Government should consider allocation of claims to women so that we can have our own space to work without disturbances. Working in male-owned claims is very difficult looking at the percentage we get after all the hard work we would have put in,” she said.

Mrs Mazivazvose said as some Exclusive Prospecting Orders (EPOs) have now been reserved for artisanal miners, it was their hope that Government would consider women first so that they could at least have their own claims.

Meanwhile, she commended the Government and ZMF for trying to make the mining sector a bearable place for women in the mining industry.

“I would love to thank our Government for the effort they are putting in the process of helping women in the mining industry. Loans provided by the Government have been helpful to a number of women although we are asking that they ease the terms to accessing
those loans.

“I also want to thank ZMF for doing a good job for miners, women included and president Ms Henrietta Rushwaya for making sure that women in the mining sector are catered for.”

Mrs Mazivazvose said through ZMF, women miners were getting loans coming from different banks, while the Women’s Bank was offering equipment to female miners.

As one of the beneficiaries, she said she was offered a compressor to aid her mining activities.

However, Mrs Mazivazvose said women in the mining sector have continued to face challenges in trying to remain relevant in the male dominated industry.

She said for a long time, most women miners are considered as incapable of doing what men in the industry are doing.

“Women miners have not been spared by the Covid-19 pandemic with most of them failing to remain afloat in business due to challenges brought about by the pandemic and vandalism caused by the machete gangs during the total lockdown period,” she said.

The Sunday News

The country has made significant headway in its quest to grow the mining sector to US$12 billion in the next two years from US$2,7 billion realised in 2017 driven by planned, ongoing and completed projects.

While critics considered the target “ambitious” and “unattainable”, developments in the sector in the past three years have been encouraging.

The Government believes mining, which contributes 12 percent to GDP, is a critical pillar to support economic recovery, create decent jobs and a prosperous society.

Mines and Mining Development Minister Winston Chitando said recently “day-by-day, month-by-month production is increasing”.
In interviews with The Sunday Mail Business last week, experts said a combination of incentives and improved sentiment might help achieve set targets.

“A closer analysis on various mining projects paints a rosier picture,” research analyst Mr Carlos Tadya said.

“We are seeing much activity even in minerals that have not been fully explored before andnthis puts the country on firm ground to achieve the US$12 billion target.”

It is, however, believed Government has to double down on fixing key enablers such as rail and power supply.

“There is huge interest in mining that could be a result of anticipated boom in commodity prices, as well as improved business environment in Zimbabwe (since the New Dispensation took office in 2017),” said economist Mr Joseph Musarwa.

Gold
Notable progress has been made in reviving Eureka Gold Mine, as the processing plant has since been completed.
At its peak, the project is envisaged to produce 1,5 tonnes per annum.

Dellaglio Investment, which owns Eureka, said recently: “We are very proud of what has been delivered and looking forward to ramping up to full production in the coming months.”

The mine was closed more than 20 years ago.

Shamva Gold Mine — owned by Kuvimba Mining House — reopened in December following an investment of over US$8 million to resuscitate the mine and US$1 million for exploration.

It plans to produce 400 kg of gold per annum by 2023.

Over 800 workers who had been laid off have since resumed work, with more expected to be taken on board once the mine completes its expansion.

Kuvimba has also injected US$6 million for the expansion of Kwekwe-based Jena Mine, which will see output rising from 24kg of gold to 83kg.

Overall, the firm, which is owned by Government, intends to raise US$1 billion for variousmining projects in platinum, chrome and nickel.

Another gold producer, Blanket Gold Mine, recently completed its central shaft expansion programme that is already paying dividends.

Last week, it reported that production in the first six months of the year rose by 8 percent to 847,8 kg (29 907 ounces) from 786kg (27 732) in the comparable period a year earlier.

Production in July was 170 kg (5 995 ounces), a further increase in average monthly production and demonstrates that Blanket is on track to achieve its production guidance of 1,7 tonnes to 1,89 tonnes (61 000 – 67 000 ounces) for the current year.

“Over 165 000 tonnes were milled in the quarter, which is a new record for Blanket and reflects the contribution of Central Shaft which is now operational,” said Caledonia chief executive officer Mr Steve Curtis in a market update.

Caledonia is Blanket Mine’s parent company.

Nickel, granite & oil

Similar headway has been made in other sub-sectors.

Trojan Nickel Mine, for example, completed its shaft expansion programme during the first three months of this year.

There has also been significant investment in black granite, with Dingmao Mining Mutoko planning to add five more polishing plants by October 2022 to the existing two.

The increase in their granite polishing capacity would enable the company to polish 100 square metres per day.

Currently, they have granite polishing capacity to polish 25m2 /day.

Further, Yang Sheng is constructing a granite cutting and polishing plant, which has been completed and is expected to be up and running by next month.

But prospects in the oil and gas sector have been most promising because their potential to increase exports and create high-value jobs.

State-of-the art exploration equipment to be used by Australian firm Invictus Energy in a seismic survey to identify the best site for sinking oil and gas wells has since been delivered.

Preliminary investigations for commercially viable reserves of oil and gas in Zimbabwe have been encouraging. Similarly, an expansion project is already underway at RioZim’s Murowa Diamond Mine in Zvishavane.

Once completed it will raise capacity from 190 000 tonnes to 500 000 tonnes.

The current scope of works includes constructing a processing plant with a 500 tonnes perhour capacity.

Commissioning is earmarked for the final quarter of this year.

Coal, Coal & Platinum

Zambezi Gas’s northern coal pit is set to produce 100 000 tonnes per month, while Lokalise is looking to ramp up production from 80 000 tonnes per month to 200 000 by year-end.

Also, Sunrise Chilota is planning to develop an underground mine to produce 15 000 to 20 000 tonnes per month of coking coal by December.

Makomo, the country’s largest coal miner, is working on recapitalisation of plant and machinery.

There are also Chinese investments that will not only produce coal but electricity for the national grid as well.

In addition, firming commodity prices, especially for copper, have raised prospects of renewed investments in the sector.

While oil remains a key energy source, analysts believe the use of copper will play a critical role in replacing internal combustion engine vehicles with electric cars.

In terms of the platinum group metals (PGMs), Unki mine’s debottlenecking project will increase concentrator capacity from 179 000 tonnes per month to 210 000 tonnes per month, while Mimosa is investing in opening a new portal at North Hill to increase life of
mine. Likewise, Zimplats is investing in new mines to replace old ones.

Massive investment

One of the biggest boosts for the mining industry remains preliminary works for a US$1 billion carbon steel plant, including an iron ore mine, by Fortune 500-listed Chinese company Tsingshan Holding Group.

The project is projected to generate US$1,5 billion annually in exports. It will have a multiplier effect on the economy.
Equipped with a 1,5-kilometre-by-600-metre carbon and steel plant, an iron ore mine and a ferrochrome plant, the project will have a capacity of 1,2 million tonnes a year, while between 4 000 and 5 000 people will benefit through employment across value chains.

The Sunday Mail

Hakainde Hichilema has won Zambia’s Presidential elections.

Zambia’s electoral commission said on Monday when releasing the final results from 156 constituencies, barring one.

Hichilema beat the clearly unpopular Edgar Lungu who had resorted to block internet access after sensing defeat only for Zambian courts to issue an order for restoration.

Hichilema secured 2,810,777 votes while Lungu was in second place with 1,814,201 votes, out of 7 million registered voters.

“I therefore declare that the said Hichilema to be president of Zambia,” said Zambia electoral commission chairman, Esau Chulu, to a packed results centre in the capital Lusaka.

This is a developing story

WITH pans and shovels in their hands, children, some not yet 15 years old, wash the muddy contents and look through heaps of soil and sand that has been removed from part of Mutevekwi River in an attempt to extract gold.

They do not have any real equipment or protection.

Submerged knee-deep in the now dirty river, the boys 12, 14 and 15-year-old risk sliding and drowning.

The three pupils (names withdrawn) who learn at Musasa Primary School in the area are part of scores of women gold panners who have invaded this part of the river which is between Ward 18 and 19 in Shurugwi.

The panners are taking advantage of distillation process that is being done by an Indian Mining Company ENR- Zimbabwe.

ENR is one of the three companies that were granted special grants by the Government to do pilot alluvial gold mining for the next six months in the area.

The other two companies are doing the same in Save River that divides Manicaland and Masvingo provinces and Angwa river in Mashonaland West province.

For the past three months the children gold panners, working with their mothers or other female relatives have been taking advantage of ENR-Zimbabwe excavators which remove sand and mud from the river.

The company is carrying out operations legally, but people come to the area to search for gold illegally.

Gold panning is the cheapest method or tool (and oldest method of mining gold) of mining to extract gold from gold placer deposits which occur in river or stream beds.

A 14-year-old boy who is in the company of his aunt said he spends over seven hours a day in the water doing the tiresome process.

“I am a gold panner together with my friends and relatives. We have been doing this for the past three months since this company started scooping sand and mud to the river bed. So, we take advantage of the loose soils and pan using the water from the river,” he said.

He said he wishes he was raising money for fees but alas — the money was going towards food and their general upkeep.

“Mostly aunt buys food with the money. When we sell the gold to the gold buyers, she collects it and does what she wants. I hope she is keeping some for school fees,” he said.

Another boy aged 13 said it’s not an easy job as there is a possibility of slipping and drowning since the water level sometimes rises.

“We have no protective clothing, sometimes we just pee in the river since getting out is time consuming. Panning is tiresome but we are now getting used to the hustle. One works the pan, that is shaking it in a circular manner so that the gold goes to the bottom. The other will be collecting the sand, soil from the heaps of soil on the river bank or some metres away
from the river which have been put there by excavators. So, one cannot work on it alone. We have to be in pairs,” he said.

His aunt identified only as Miriam said they wake up at 4am and using torches for lighting, start panning before ENR employees come to the river.

“We have been playing a cat and mouse game. ENR employees do not want us in the river.

They accuse us of causing siltation. So, we normally wake up very early so that by 8 am when they start work, we would have worked a bit and disappeared,” said Miriam.

So, what changed today because it’s 10 am and they are still panning?

“It’s because we heard there is a meeting and they won’t be concerned about us, so we have to take advantage,” she said.

“For an ounce of gold we are paid US$4 imagine that it has to be shared between two people because we work in pairs. That’s US$2 per person which comes after two to three days. It’s not easy.”

Environmental Management Agency Manager for Midlands Province Mr Benson Bhasera said alluvial gold panning poses as a serious threat to water bodies as it leads to the siltation.

He said there was a lot of siltation in the river because of uncontrolled gold panning.

“What is happening here is distillation of Mutevekwi River by this company following years of siltation. At the same time, we have realised that gold panners have invaded the area taking advantage of heaps of sand and soil that is being removed from the river.

Gold panning is illegal and the use of children in panning is also illegal. This mining company was given a special grant to practice river bed mining and the gold panners must not be allowed to operate as they are the main cause of siltation of the river,” said Mr

He said there is a lot of siltation in the river because of uncontrolled gold panning.

Midlands Provincial Mining Director Engineer Tariro Ndlovu condemned the use of children as gold panners.

He said even the Constitution of the country is against child labour.

Section 19 of the Constitution of Zimbabwe provides that the State must take appropriate legislative and other measures to ensure that children are not required or permitted to perform work or provide services that are inappropriate for the children’s age or place at
risk the children’s wellbeing, education, physical or mental health.

“The company working on that part of the river is doing it legally and it is therefore, illegal that these women and children are practising gold panning. If they are caught, they will be arrested. The Constitution of the country, the labour laws speak against child labour. So, such a practice is criminal. The children should be at home or school,” he said.

In terms of the Children’s Act Chapter 506, no parent or guardian of a child or young person shall permit such a person to engage in child labour.

The Chronicle

Gold producer Caledonia Mining has recorded a revenue of  $US30 million, 31% revenue increase compared to the $US22.9 million recorded prior year, due to the higher production and higher gold price.

Shantell Chisango

Caledonia Chief executive officer (CEO) Steve Curtis stated that the company performed exceptionally well in all its productions which has paved the way for them to achieve the guidance of between 61,000-67,000 ounces of the year.

“This has been a strong Quarter and these results have left us well placed to achieve our guidance of between 61,000-67,000 ounces for the year.”

In addition, the company managed to increase its gross profit for the second quarter by 51% compared to the second quarter of 2020, which the CEO attributed to higher production, lower costs, and higher cold prices.

“Higher production, lower costs and a higher gold price resulted in a significant increase in the underlying profitability of our business with gross profit increasing by 51 per cent compared to the comparable quarter in 2020.”

However, the company was unfortunate to record a negative on the net profit due to the impairment of the Glen Hume project which was turned down by board members because it failed to meet the company’s requirements in terms of grade, size, and grade.

“Net profit was adversely affected by the impairment of the Glen Hume exploration asset following the Board’s decision not to proceed further with this project because the property does not meet Caledonia’s strategic requirements in terms of size, grade and width.”

Moreover, EBITDA, excluding foreign exchange gains and losses, export incentives and asset impairments, increased over 100 per cent from $6.9 million in Q2 2020 to $14.0 million in the Quarter.

Over 165,000 tonnes were milled in the Quarter which is a new record for Blanket and reflects the contribution of Central Shaft which is now operational, said Curtis.

“The increased production meant that cash generated by operations was almost $15.0 million for the Quarter, compared to $2.5 million in the preceding quarter and $5.4 million in the comparable quarter.

The company reported that Covid19 had no negative effects on the production of gold, since the company managed to produce magnificent results by making sure all covid19 restrictions were followed by all stuff.

“Excellent production was achieved without compromising on safety.  During the Quarter Blanket passed the milestone of achieving two million fatality-free shifts.

“Although COVID-19 had no discernible effect on production in the quarter, management has re-introduced strict access controls to the mine and the mine village to limit the rate of transmission of the virus. Blanket is also in the process of vaccinating its workforce and their families.

Furthermore, Caledonia said production in July was slightly less than 6,000 ounces of gold, which demonstrates that Blanket continues to ramp up production towards the target rate of 6,700 ounces per month that is required to achieve the production target of 80,000 ounces per annum from 2022.

Production in July was 5,995 ounces, which is a further increase in average monthly production and demonstrates that Blanket is on track to achieve its production guidance of 61,000 – 67,000 ounces for 2021.

Meanwhile, the solar project, which is expected to provide approximately 27 per cent of Blanket’s average daily electricity usage, is now in the procurement phase and project completion is expected in April 2022.

On-mine cost guidance for 2021 is in the range of $740 to $815 per ounce; guidance for AISC is $985 to $1,080 per ounce.

Caledonia paid a further increased quarterly dividend of 12 cents per share in April this year, and then in July declared a quarterly dividend of 13 cents per share, paid at the end of July. This was the sixth increased quarterly dividend and an 89 per cent increase from 6.875 cents paid in October 2019.

Hwange Colliery Company Ltd, Zimbabwe’s oldest coal miner has extended a tender inviting investors to revive or build a new battery of coke ovens after applicants requested for more information on the scope or work.

Hwange, which is partly owned by the Government floated the tender in April this year inviting bids to either rebuild or to construct a new recovery type coke oven battery, by products plant and gas plant, which includes a coke oven gas supply line to Power Station
and financing of the project.

The company also offered maintenance of the coke oven battery for a period of 12 months.

“The tender has been extended because those who had applied wanted more information,” Hwange managing director Dr Charles Zinyemba said.

Hwange decommissioned its coke oven battery in 2014 after it become too expensive to operate. Prior to that Hwange exported coke to copper smelters in Zambia and the Democratic Republic of Congo. Zimbabwe is witnessing huge investments in the coke sector as investors it seek to take advantage of surging demand in China, the world’s largest consumer of the commodity used for steel production. Last month, Afrochine Dinson launched its coke oven battery with capacity to produce 400 tonnes per day for local and regional markets.

Afrochine started building its plant in 2019 but progress was stalled by the outbreak of Covid-19 until the Government engaged its Chinese counterparts to facilitate the return of experts who had been locked in the Asian country to complete the projects.

Afrochine Dinson has already started the construction of the second phase of its project, as the company seeks to deepen the value addition drive, which feeds into Zimbabwe’s Vision 2030 of an empowered and prosperous upper-middle-income economy.
Several other coke projects are in the pipeline and would help Zimbabwe achieve the US$12 billion mining economy by 2023.

Launched in October 2019, the mining road map, known as the Strategic Road to the Achievement of $12 billion by 2023 aims growth in strategic exports of minerals such as

The policy focuses on value addition, enhanced investment within the sector, increased productivity and employment creation and increased exports and foreign-currency generation.

The Government says value addition and beneficiation of agriculture and mineral commodities would be the most important part of its policy framework next year as the country seeks to grow exports from the secondary sector. Last week, the Government
banned raw chrome exports to encourage building of smelters.

Announcing the latest strategy to boost the mining sector during a post Cabinet media briefing, Information, Publicity and Broadcasting Services Minister, Monica Mutsvangwa, said the moratorium on raw chrome ore exports would promote the local value-addition chain.

Business Weekly

Eureka Gold Mine, located near Guruve, is now operational after decades of inactivity and management expect to ramp-up to full production in the coming months.

The gold mine was forced to shut operations after running into viability problems two decades ago with capital shortages at the centre of the mine’s troubles.

But new owners, Padenga Holdings, through its gold subsidiary, Dallaglio, vowed to bring Eureka back to life and make it “one of the largest and most technologically advanced mines in Zimbabwe”.

To bring the gold mine back to life the Victoria Falls Stock Exchange-listed company invested US million.

The investment has now started bearing fruit with the gold mine resuming production.

In a brief statement on the company’s LinkedIn page, Dallaglio CEO Marc Nicolle announced that the “first gold smelt at Eureka took place as planned in July”.

Nicole described this as a “remarkable achievement for Dallaglio” as Eureka is now the second Zimbabwean mine it has “brought into operation after decades of inactivity”.

The other one is Pickstone Peerless mine which had not been operational for 44 years. “This milestone was achieved by a very focused and dedicated Delta Gold Zimbabwe team who have gone above and beyond in many ways to make Eureka a success, despite the many
challenges faced along the way.

“Congratulations to all of the team that have made this milestone possible,” Nicole said.

“We are very proud of what has been delivered and look forward to the ramp-up to full production in the coming months.”

The subsequent ramp-up to the full processing capacity of 100 000 tonnes per month is targeted by end of December 2021, according to Padenga said of Eureka in its last set of results.

There is good potential to extend the Eureka life of mine by moving to an underground mining method once the open pit has been exhausted. The international spot price is expected to remain elevated in 2021 given the continued uncertainty of the Covid-19 pandemic on the global economy. This investment will continue to yield positive returns for the foreseeable future,’’ the firm said in a statement accompanying its last full-year results.

Business Weekly