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Strides made towards achieving US$12 billion mining industry by 2023

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Strides made towards achieving US$12 billion mining industry by 2023

IN his 2021 mid-term budget and economic review, Finance minister Mthuli Ncube revealed that the mining sector has made huge strides towards achieving the US$12 billion mining industry by 2023, with a number of projects having been implemented.

BY DUMISANI NYONI

IN his 2021 mid-term budget and economic review, Finance minister Mthuli Ncube revealed that the mining sector has made huge strides towards achieving the US$12 billion mining industry by 2023, with a number of projects having been implemented.

These include the reopening of closed mines, expansion of existing mines, opening of new mines, and establishment of several processing facilities among others.

We present below a few selected milestones that have been achieved so far.

Mining Cadastre Information Management System

Ncube said outstanding payment for the purchase of hardware for the operationalisation of the automated Mining Cadastre Information Management System was made to the contractor in the first quarter of this year. He said a user verification exercise was conducted in the Mutare pilot office the Ministry of Mines and Mining Development is set to meet with the contractor to share and iron out observations made.

The system is supposed to unlock value, avoid double allocation of title and enhance the security of tenure. It will also eliminate the chaotic allocation of mining claims and mineral leakages that continue to bleed the country of billions of dollars in potential revenue.

Establishment of Gemology Centre

Ncube said the country’s Gemology Centre was 5% complete. So far, ZW$41 million funding has been released for project implementation to the Zimbabwe School of Mines. The implementation of the first phase of infrastructural development is now under consideration, he said.

A Gemology Centre is an office that supports the efforts of small-scale miners and traders and allows the government to capture the true value of its gemstones based on international guidelines.

Mutare City Council in March 2020 released title deeds for the 80-hectares of land in Fernhill to the Zimbabwe School of Mines to make it easier for the centre to attract foreign direct investment and achieve set targets.

The centre is expected to feed into the diamond cutting and polishing value chain and will be subdivided into four sections—the school of gemology, which will offer training courses across the value chain; the diamond manufacturing and lapidary, which will house cutting and polishing companies; the jewellery blacksmith and manufacturing for blacksmiths and manufacturers; as well as ancillary services that will house all supporting businesses.

Exploration

The Treasury boss said a total of 28 Exclusive Prospecting Orders (EPOs) were issued from January to June 2021 this year, covering 1 506 073 hectares, adding to the already existing nine EPOs (255 530 hectares). The total area now under exploration from the 37 EPOs is 1 761 603 hectares, he said.

Mining Industry Loan Fund (MILF)

Ncube said the government availed ZW$7,5 million MILF for operations to support small scale miners. In addition, he said the Artisanal and Small Scale Miners Strategy is being developed. The development and implementation of a national mercury management program for ASM is ongoing.

Opening of new mines

GDI Platinum Mine is doing mine development; Sese Diamond Mine is currently doing diamond exploration, Sunrise Chilota, Yang Sheng, Mutoko Resources, Bravura Gold and Platinum Exploration projects.

Expansion of existing mines

On the expansion of existing mines, Ncube said the shaft expansion program at Trojan Nickel Mine was completed in the first quarter of 2021 while the concentrator expansion program is currently underway.

The Zimbabwe Zhong Xing Electrical Energy (ZZEE)’s construction of a 50 MW Thermal Power Station was also completed in the first quarter of this year.

Ncube said Dingmao Mining Mutoko, currently having two granite polishing plants, was planning to erect five more granite polishing plants by October 2022. The increase in their granite polishing capacity would enable them to polish 100m2 per day of polished products. Currently, they have granite polishing capacity to polish 25m2 per day.

Construction of a granite cutting and polishing facility by Yang Sheng is currently underway with the plant completion expected to be 1 September 2021. Ncube said Murowa, which is expanding its plant from 190 000 to 500 000 tons, is migrating from open-pit mining to underground mining. Current work on the expansion project involves the construction of the processing plant with a 500 tons per hour capacity and commissioning is expected to be done in the fourth quarter of this year.

Zambezi Gas seeks to produce 100 000tons per month while Lokalize, whose current coal production is 80 000tons per month, plans to ramp up production to 200 000tons per month by the fourth quarter of 2021.

Sunrise Chilota, on the other hand, plans for an underground mine to produce 15 000 to 20 000tons per month of coking coal by the fourth quarter of this year. Makomo is working on the recapitalization of machinery.

Blanket Mine completed a Central Shaft Expansion program which will result in an increase in capacity from 55 000oz to 80 000oz of gold output.

Unki Mine is involved in the debottlenecking project to increase concentrator capacity from 179 000 tonnes per month to 210 000 tonnes per month of Platinum Group of Metals.

The 87.5MW smelter was set up with planned upgrades of up to 12.5MW by 2023. The mine is involved in an expansion project to produce between 310 000 and 360 000tons of ore per month.

Mimosa is investing in opening a new portal at North Hill to increase the life of mine while Zimplats is investing in new mines to replace old ones.

Resuscitation of closed mines

Ncube revealed that the processing plant at Eureka Gold Mine was now 98% complete and the mine was set to resume operations by the end of last month. At its peak, Eureka Gold Mine will produce 1.5 tonnes of gold per annum.

He said Shamva Gold Mine reopened in December 2020 after closure in January 2019. So far, the gold mining company has invested over US$8 million for resuscitation of the mine and US$1 million for exploration. The mine is targeting to produce 400 kg of gold per annum by 2023.

“The resuscitation of Shamva Gold Mine has seen over 800 workers who had been laid off resume work at the mine, with more expected to be hired once the mine completes its expansion process,” he said.

On Bindura Nickel Corporation (BNC), Ncube said the concentrator refurbishment is in the final stages of its resuscitation and the project is expected to be completed by end of this year. The company has also completed its underground main shaft re-deepening project.

Todal Platinum mine is currently undertaking mine development, he said.

Chrome to ferrochrome processing facilities

The Ministry of Mines and Mining Development has availed land prioritising companies intending to establish integrated chrome mining and ferrochrome smelters.

These companies included Amazon (Pvt) Ltd which was granted 21 chrome claims (1 545ha); Best Trade (Pvt) Ltd with 13 claims; and Afrochine (Pvt) Ltd (38 claims).

Monachrome was granted 1000ha for chrome mining for ferrochrome production while Tsing Shang was allocated iron ore claims for setting up a carbon steel manufacturing plant.

Jin An (Pvt) Ltd’s 3 831ha of applications for chrome claims are still being processed.

Ncube said Zimalloys A3 furnace is 70% complete.

An Inter-Ministerial Task Team, Chaired by the Ministry of Mines and Mining Development was set to coordinate the implementation of the project, he said.

Coal to coke processing plants

Ncube said Dinson Colliery recovery type coke oven battery recovering by-products (coal and methane gas) was established in Hwange and is ready for commissioning. He said phase 1 has 35 ovens–300 000 tons per annum, phase 2 has 300 000tons per annum while phase 3 has 1 000 000 tons per annum of coke.

South Mining has finished exploration on their Mutagech Special Grant. Currently, the company has plant A which is a non-recovery type coke oven with 120 000tons per annum production capacity.

Plant B has a recovery type coke oven with 140 000tons per annum production. Phase 2 of South Mining plans is the construction of a recovery type coke battery of 140 000tons per year and the construction of a gas pipeline to the Zimbabwe Power Company.

The Ministry of Mines is issuing the company with a mining title to start mining.

Jin An, which was issued a Special Grant (SG) for mining, is also constructing a coke battery to process semi-coke. The company also holds an exploration SG on Beifa. It is also constructing tutu coke batteries with one battery at 80% and the other at 20% completion.

Ncube said the Zimbabwe ZhongXin Coking Company (ZZCC)/ Zimbabwe ZhongXin Electrical Energy (ZZEE) have coking batteries that produce approximately 120 000 tonnes of coke per annum. The company is also completing a power plant and the first phase which will be producing 50 MW due for commissioning.

Lokalize (Western Areas) was issued with a mining SG for coal. The company also holds an IPP licence for a thermal power plant to produce 600MW.

Zambezi Gas is expanding its operations and has opened a second pit with a capacity of 100 000 tonnes of coal.

Gold Service Centres Establishment                 

The Ministry of Mines and Mining Development last year revealed plans to establish gold centres across the country to curb illegal leakages of bullion and promote the official sale to the state buyer Fidelity Printers and Refinery.

But presenting his mid-term budget, Ncube said so far only five sites for service centres have been established.

The Zimbabwe Miners Federation has been calling on the government to expedite the setting up of gold service centres across the country to boost the production of the yellow metal.

A gold service centre is an establishment where all the functions related to gold mining from extracting to processing and sales are coordinated from.

The government had targeted to establish 15 additional gold service centres countywide before the end of 2020.

Beneficiation and Value Addition Strategy

The Treasury boss revealed that the beneficiation and value addition strategy is being developed and still going through internal consultations.

Amendment of Mines and Minerals Act (MMA), Gold Trade Act (GTA) and Precious Stones Trade Act (PSTA)

He said the MMA Amendment Bill awaits tabling before the Cabinet Committee on legislation.

“Principles on the amendment of the Gold Trade Act are now in place and have been submitted for examination to the Legal Drafting Department of the Attorney General waiting for submission to Cabinet. Principles on the amendment of the Precious Stones Trade Act are being developed,” he said.

Policies and Strategies

Minerals Development Policy and Artisanal Small Scale Gold Mining (ASGM) Strategy are being developed.

Retreatment of the Roasting Plant Dump

Ncube said the building of the roasting plant dump processing plant is currently underway, expected to be completed by the second quarter of this year.

How much has been disbursed so far

The 2021 National Budget allocated ZW$1.4 billion towards the operations of the Ministry of Mines and Mining Development. So far, a total of ZW$561 million (40%) has been disbursed, according to Ncube.

This article first appeared in the Mining Zimbabwe August 2021 Magazine

Artisanal and Small-scale Mining (ASM) Formalisation Benefits

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Artisanal and Small-scale Mining (ASM) Formalisation Benefits

The majority of artisanal and small-scale mining activities operate informally, which means they take place illegally without the required licences and permits. Despite the existence of legal frameworks for ASM in many countries around the world, the majority of operations remain unregulated and untaxed.

Often, informal activities will have a ‘social licence to operate’. This may come from the local community, other local actors, or miners owning the surface rights or the land above ground. This is despite the state being the sole owner of sub-surface mineral rights and the only actor able to award concessions and official mining licences.

The process of formalisation therefore not only concerns the development and existence of legal, regulatory and policy frameworks for ASM, but also the extent to which these are successfully activated, implemented, and enforced, and whether they are appropriate and sufficiently in tune with local contexts and communities.

Formalisation offers advantages not only to artisanal and small-scale miners but also to governments, large-scale mining companies, and rural communities. Formalisation:

  • Helps promote better working practices and conditions.
  • Reduces negative environmental impacts of activities.
  • Prevents and helps to better manage conflict associated with encroachment of miners and operations onto large-scale mining concessions.
  • Supports ASM to become an engine of enterprise and growth leading to higher government returns and job creation and stability.
  • Enables government to capture the revenues and tax from ASM activities.
  • Is an essential first step to transforming ASM into a sustainable livelihood activity.
  • Reduces criminality and criminal elements associated with some ASM activities.

Formalisation, however, is not an easy task and there is no single policy response or solution. There needs to be a concerted, collaborative effort as well as the will to formalise from all stakeholders involved. This includes international development agencies, governments, NGOs, academic experts, the private sector, local ASM communities, and crucially, miners themselves.

A number of issues and improvements are often cited as key parts of the ASM formalisation process:

  1. Streamlined licensing

Despite many countries now having legal frameworks for ASM that allow for the purchase of a licence, the majority of mining operations and miners work informally and illegally without a licence and/or any additional required permits.

In some cases, obtaining a licence can be a long and bureaucratic process that may also be open to corruption and bribery. These issues may either entirely prevent and/or discourage people engaged in ASM from purchasing a licence. Streamlining the licensing process by making it easier to complete, reducing the time, fees and costs associated with obtaining one, decentralising the process, developing easily accessible online platforms, and ensuring regulations and categories are in line with local contexts can help significantly with formalisation.

  1. Access to land and geological prospecting

A commonly cited issue is either the lack of access to or availability of land that is also of significant ore grades to make the mineral deposit viable for ASM.

Conducting geological prospecting and identifying and demarcating land and zones specifically for ASM activities would help address this issue.

Encouraging large-scale mining companies and concessionaires to shed off areas of land that are either not being mined or are deemed uneconomical to mine on a large scale would also help free up areas for ASM activities.

  1. Technical and vocational education and training

Developing accessible technical and vocational education and training (TVET) courses and materials for miners that include information on safe working practices and more efficient and effective mining techniques in order to reduce the negative social and environmental impacts of operations and improve working conditions, efficiency, yields and incomes.

  1. Support and equipment leasing facilities, and processing centres for ASM

Develop support facilities for miners to attend in order to receive information, lease or purchase good quality equipment, and process ores. It is important that the needs of miners and the community are properly assessed first to ensure support facilities meet their requirements and local contexts.

  1. Improve the capacity, strength, and collaboration of institutions and government

Strengthening government departments and institutions, and encouraging collaboration of different ministries and departments at both the national and local level in order to develop more effective, joined-up approaches and remove overlapping functions.

  1. Better monitoring, enforcement, and education on laws and regulations

Increase capacity of government agencies to better monitor ASM activities and more effectively and consistently enforce fines and penalties where applicable.

Better educate miners on the laws and regulations that exist and build good working relationships between enforcement agencies, miners, and ASM communities.

  1. Formulating policies, regulations, and laws specifically for the ASM sector

Ensuring that existing laws and regulations are appropriate and sufficiently in tune with ASM activities and local contexts.

When no or few regulations exist, or ASM is covered under regulations and laws designed for large-scale mining activities, there is a need to develop new laws, policies, and regulations solely for ASM.

  1. Improve the coordination and involvement of ASM associations and cooperatives

Improving the development, coordination, and strength of ASM associations and increasing their involvement in decision making is key to ensuring the development of effective policy and programmes.

Having legitimate and well-organised national and international level ASM associations is beneficial to miners as well as policymakers and government. Associations provide a single entity with which to engage and consult on matters, a forum for the exchange of knowledge and ideas, and a grievance and dialogue mechanism for all sides.

Cooperatives also offer these benefits as well as enabling miners to pool their resources. In some countries being a member of a cooperative is a legal requirement to purchase an ASM licence.

This article first appeared in the July 2021 issue of Mining Zimbabwe Magazine

The potential of the Semi-precious stone industry in Zimbabwe

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The potential of the Semi-precious stone industry in Zimbabwe

By Lyman Mlambo, Chairman of the Institute of Mining Research

What are Semi-Precious stones?

To understand semi-precious stones, we need to view them within the context of two closely related terms, precious stones and gemstones. Precious stones are generally understood to be beautiful, translucent, rare and hard crystalline minerals. Only four stones are classified as precious stones and these include diamonds, emeralds, rubies and sapphires. Semi-precious stones are all the other beautiful or quality stones other than these four. However, precious stones are not necessarily more valuable or beautiful than semi-precious stones, and today, are not necessarily rarer.

The distinction between the two classes was conceived in the mid-1800s by the ancient Greeks, with the main distinguishing feature being rarity. Precious stones were rare while semi-precious stones were relatively abundant. Semi-precious stones are also termed coloured stones even though precious stones are also valued for, apart from their translucency, the richness of their colour, except for diamonds that gain more value with greater colourlessness. Generally, the ancient classification (lists of precious stones as distinguished from semi-precious stones) is still being used. The term gemstones includes both precious and semi-precious stones. All gemstones are crystalline.

Resource, Diversity, Occurrences and the Mining of Semi-Precious Stones in Zimbabwe

The resources of semi-precious stones in Zimbabwe are estimated to be vast. Their total value is estimated at US$20 billion. The country hosts about 33 different types of semi-precious minerals. The minerals are under-explored (more so than other minerals), so the estimated number of types and value could be way below the actual. These minerals are easily found and mined and are sometimes just collected or picked in the field.

The mining of semi-precious stones in Zimbabwe is dominated by artisanal miners who sell informally to foreign dealers (mainly Zambians, Congolese, Mozambiquans, Pakistanis, Indians and Chinese). The miners do not appreciate the value of these minerals (they think they are essentially value-less) and hence they sell them cheaply to foreign dealers who come to their mining sites, some of whom are members of international cartels. Zambia has a more developed semi-precious stone industry, with a mining company there establishing a massive (precious stone) ruby processing plant in Mozambique. Low quantities of semi-precious stones are coming to the Minerals Marketing Corporation of Zimbabwe (MMCZ), hence the Corporation has not been serious about their marketing, as it is not viable to organize small consignments. MMCZ has no significant database of buyers of semi-precious stones as it does for other minerals.

It is not a straightforward issue identifying semi-precious stones using the naked eye because of the wide range of colours the same semi-precious stone may have. Also, some semi-precious stones are also industrial minerals, so that they are recognized as semi-precious when they are gem-quality rather than industrial quality; examples include feldspar, gypsum, talc, and quartz.

 

MineralSample PicturesKnown Occurrences
AgateNyamandhlovu, Chikomba, Lupane

 

 

AmazoniteNyamandhlovu, Rushinga

 

 

 

AmethystHurungwe, Nyamandhlovu, Hwange, Makonde, Lupane

 

 

AntimonyKwekwe, Bubi, Mberengwa, Kadoma, Shurugwi

 

 

AquamarineKaroi; Mt Darwin; Mutoko. Mainly small stones available, though bigger ones are also available in small quantities
AventurineMasvingo, Beitbridge

 

 

BerylHurungwe, Kariba, Goromonzi, Harare, Mudzi, Rushinga, Mutoko, Bindura, Marondera, Gutu, Buhera, Bikita, Chegutu, Hwange, Mberengwa, Gweru
BismuthGwanda, Insiza, Goromonzi, Hwange

 

 

CalciteHwange, Bindura, Chiredzi, Mwenezi

 

 

ChrysoberylKaroi-Hurungwe. A related stone, alexandrite, is found in Masvingo.

 

 

CitrineMarondera, Harare, Goromonzi

 

 

Cordierite (a clear variety of this stone is termed iolite)Makuti, Hurungwe, Rushinga, Chimanimani, Beitbridge

 

 

CorundumBeitbridge, Chiredzi, Shurugwi, Marondera, Mberengwa, Mazowe, Rushinga, Insiza, Gromonzi, Wedza

 

 

DolomiteMutare, Beitbridge, Makonde, Mudzi, Masvingo, Rushinga

 

 

FeldsparHarare, Bikita, Umzingwane, Goromonzi

 

 

GarnetBeitbridge, Hurungwe, Mudzi, Guruve, Rushinga, Marondera

 

 

GosheniteKaroi; Mt Darwin; Mutoko. Mainly small stones available, though bigger ones are also available in small quantities

 

GypsumBeitbridge

 

 

HeliodorKaroi; Mt Darwin; Mutoko. Mainly small stones available, though bigger ones are also available in small quantities
Jade Masvingo

 

 

MagnetiteGwanda, Nyanga, Kadoma, Mwenezi, Insiza, Buhera, Mberengwa, Beitbridge, Gweru

 

 

QuartzGweru, Kwekwe, Makonde, Chegutu, Gokwe, Harare, Gromonzi

 

 

TalcBubi, Guruve, Insiza, Nyanga, Mutare, Mt Darwin, Mberengwa, Goromonzi, Mutoko, Wedza, Makoni

 

 

TopazHurungwe, Gweru, Mutare

 

 

TourmalineKaroi-Hurungwe. Readily available, in particular the green and black varieties.

 

 

All pictures are obtained from simple Google Search done on each stone using the search terms ‘mineral name (gem) stone natural picture’ on 24 and 26 June 2021. The author does not have copyrights over them, and they are used for illustration purposes only.

 

Leading World Producers of Semi-Precious Stones

Zimbabwe is not recognized as a producer of semi-precious stones. The countries or areas noted in this section are not only rich in the indicated stones but are also leading producers. Africa is known for the production of ‘tanzanite’ emerald, alexandrite, aquamarine, rhodolite and ‘tsavorite’ garnet and tourmaline. Among some of the producing countries in the African continent are Zambia, Zaire (DRC), South Africa, Sierra Leone, Namibia, Angola, Tanzania, Central African Republic, Kenya, Mozambique and Madagascar. Semi-precious stones produced in Madagascar include aquamarine, tourmaline, demantoid, spessartite, tsavorite, morganite and colour-change garnet.

Sri Lanka (in South Asia) produces a variety of semi-precious stones including the finest chrysoberyl (cat’s eye and alexandrite), moonstone, garnet, topaz, tourmaline, quartz, zircon, peridot, and spinel.  Myanmar (also known as Burma, in South East Asia) supplies spinel and imperial jade mainly to Asian countries including Malaysia, Thailand and Singapore.  Australia is the biggest producer of opal accounting for close to 90% of the planet’s supply. It has a wide range of opals of various colours.

The market for Semi-Precious Stones

Just like the demand for gold in its use in the manufacture of jewellery, the main sources of demand for semi-precious stones include India, the USA, China, Middle East (including Dubai), Saudi Arabia, Gulf States, Egypt, Turkey, Italy, Japan, North America and Germany. India, USA and China top the list reflecting the importance of semi-precious stone jewellery in culture and special occasions including Christmas, birthdays, weddings, anniversaries, Valentine’s Day, as well as religious festivals.

Semi-precious stones are polished, cut and treated into personal ornamentation items (that is, jewellery) such as necklaces, rings, bracelets and brooches; ornamental appendages to various items such as wristwatches, clothing and other wears, domestic items such as lounge suites, tables, chairs; for general decoration of places such as bedrooms, dining rooms and bars; and for creation of luxury art such as hardstone carvings and collection of antiquities. The cutting, polishing and further treatments enhance the clarity and colour of the stones, their beauty and hence their value. The natural samples shown in the table above, once worked on, would look tremendously more splendid. The market is aware of the existence of imitation or synthetic products which look like the original stones but do not possess the chemical and physical properties of the stones.

Dynamics noticeable in the global jewellery market and hence semi-precious stones are the increased advertisements through various platforms such as television and the internet, the increased incomes of dealers due to growth in the demand from Asian economies for use as ornaments in their ceremonies, and the drift away from the unorganized product markets (which have been the conventional market) to more organized branded product markets. The last dynamic, evident in emerging economies such as in Asia Pacific, is a reaction by consumers to safeguard themselves from the many counterfeit products flooding the market. Increased spending by the current individual consumers, expected changes in lifestyles by others towards greater ostentation and expanded use in decoration purposes (as the world economy expands), would be the main factors behind a growing demand for semi-precious stones in the near future. Greater market opportunities exist in Latin America, the greater Asia Pacific and Africa, which need to be activated.

Just Gemstone (n.d.) (a) website lists the following as the ten most expensive gemstones (with the list including any qualifying precious stones for comparison) in the world in decreasing order: Jadeite (most expensive at USD3million/carat), red diamonds (USD2-2.5 million/carat), serendibite (USD1.8-2 million/carat), blue garnet (USD1.5 million/carat), grandidierite (USD100,000/carat), painite (USD50,000-60,000/carat), musgravite (USD35,000/carat), bixbite or red beryl emerald (USD10,000/carat), emerald (USD8,000/carat), and black opal (USD2,400/carat). It is interesting to note that two of the four precious stones (ruby and sapphire) do not make it to the top ten, and emerald is second last, demonstrating that the literal designation of gemstones by ‘precious’ and ‘semi-precious’ is in practice, at least getting obsolete.

 

Way Forward on the Semi-Precious Stones Industry in Zimbabwe

Legislative Framework and Developments

Realizing the potential semi-precious stones have in contributing to the development of the mining industry and the national economy at large, MMCZ submitted a draft Statutory Instrument (SI) to the Ministry of Mines and Mining Development and the Reserve Bank of Zimbabwe, to formalize the process regarding the extraction and use of semi-precious stones across the whole value chain. This is a stand-alone piece of legislation from the Precious Stones Trade Act (Chapter21:06), with the latter applying only to diamonds, emeralds, ruby and sapphire. The Ministry reviewed the draft SI and recommended some changes, which changes the MMCZ is working on.  It is hoped that the SI would be finalized soon, probably by the end of 2021.

What happens in the meantime if a miner wants to extract and sell the semi-precious stones? The Mines and Minerals Act does not specifically address semi-precious stones. Any prospective miner of semi-precious stones has to apply for a prospecting license, peg and register the claims as base metals. In the case of a farmer making a find of semi-precious stones in his/her farm, currently, the Mines and Minerals Act does not provide for the farmer’s right to first refusal – the Act applies as it is. Such new provisions could be in changes that might come into effect after the signing of the Mines and Minerals Amendment (MMA) Bill into law. The formal selling aspect is currently done through MMCZ processes, though the state entity at the moment has a small database of buyers of the semi-precious stones, and has not done many sales due to the current largely informal nature of the current operations and transactions.  Whatever transactions have gone through MMCZ have relied heavily on the miners’ own knowledge and connections with the global market players.

Opportunities for Development of the Sub-Sector

The diversity and richness of the country in semi-precious stones needs to be verified through reconnaissance exploration as well as detailed follow-up exploration. It is quite possible that the country could have more than the known 33 plus semi-precious stones alluded to above and that the occurrences (geographical) and the quantity of resources could be more expansive than is currently estimated. The fact that neighbouring countries in Africa are noted producers of gemstones points to the potential existence of high geological prospectivity in Zimbabwe. Perhaps, the greatest opportunity that faces the sub-sector in the country is the existence of a big global market which is very lucrative if one looks at some of the prices quoted earlier. With the sub-sector in its nascency in Zimbabwe, there are likely to be opportunities for big finds and lower costs of production as the near-surface semi-precious stones do not require large complicated machinery to mine.

To spur this industry forward MMCZ could do the following:

  • create a market (to market the minerals), in order to stimulate demand – this requires a simple market study and advertising through physical engagement and various electronic platforms, including social media;
  • (ii) formalize the sector through finalization of the SI that creates a framework for the whole value chain of the semi-precious stones in the country; and
  • (iii) directly participate in its own right in the whole value chain of this sector (mining, beneficiation and manufacturing of jewellery, ornamental appendages, decorative products and luxury art products) as part of its statutory mandate provided for by the MMCZ Act.

The government in general needs to promote investment in semi-precious stones by creating a conducive investment environment.  Geological prospectivity is the first and necessary condition for attracting investment to the country. However, the second and sufficient condition is the policy environment which should be complete (in terms of the governing instruments), competitive (in terms of the fiscal regime and the ease of doing business) and stable so that long-term large investments in exploration, mine development, production and beneficiation can be attracted. Government, for example, needs to complete the National Minerals Development Policy, the Mines and Minerals Amendment Bill, and in conjunction with MMCZ, the SI.

There is a need to enhance the country’s spatial infrastructure (road, railway and air transport) and make utilities (power, communication and water) accessible and affordable. There is also a need to directly promote wider investment (local private and foreign direct investment) in the mining, beneficiation (cutting and polishing) and the local manufacturing industry utilizing semi-precious stones. This can be done through targeted fiscal incentives, higher foreign exchange retention levels, and the granting of economic zone status. The world’s largest ethically sourced gemstone producing company, Gemfields plc, has some major interests in Zambia and Mozambique, Zimbabwe’s close neighbours. Demonstration of the resources the country has and provision of a competitive investment environment can easily woo such a giant to extend its interests to Zimbabwe.

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  15. Mapuranga, R. & Moyo, P.C. (2021). How Financial Institutions Can Support the Gemstone Industry. Mining Zimbabwe Magazine, Issue 06 (June 2021), pp. 29-30. Timelison Media. Harare.
  16. org
  17. Mining Zimbabwe (2021, June 25). MMCZ Marketing Weak – Miners, Mining Professionals. Retrieved from miningzimbabwe.com, on 26/06/2021
  18. Mlambo, L. & Kwesu, I. (2020). Economic Impact of Mining through Linkages: A Case Study of 1980 and 2014 Production Linkages in Zimbabwe. The International Journal of Business and Management (IJBM), Volume 8, Issue 8, pp.44-61.
  19. Mlambo, L. (2018). Extractives and Sustainable Development II: Minerals, Oil and Gas Sectors in Zimbabwe. Friedrich-Ebert-Stiftung. Harare. ISBN: 978-1-77906-376-2
  20. Mlambo, L. (2018b). Overview of the Mining Industry in Zimbabwe. Second keynote paper presented on 22 May 2018 at the Faircity Quartermain Hotel, Sandton, Johannesburg during the Zimbabwe Mining & Taxation Law Conference Organized by African Influence Exchange.
  21. Mlambo, L. (2019). Achieving the 50-ton Platinum Target by 2030: Challenges and Growth Imperatives. Mining Zimbabwe Magazine, Issue 12 (December 2019), pp. 14-16. Timelison Media. Harare.
  22. Mlambo, L. (2021). Industrial Minerals and their Potential Contribution to the Resuscitation of the Zimbabwean Economy. Mining Zimbabwe Magazine, Issue May 2021, pp. 22-24. Timelison Media. Harare.
  23. co.zw
  24. Nyoni, Mthandazo (2019). MMCZ seeks to curb illegal trade in semi-precious gemstones. The Standard of March 24. Retrieved from thestandard.co.zw, on 08/11/2019
  25. Persistence Market Research, n.d. Gemstones Market. Retrieved from https://www.persistencemarketresearch.com/market-research/gemstones-market.asp, on 24/06/2021
  26. Somer Taylor, updated April 24, 2017, retrieved from https://sciencing.com/identify-semiprecious-stones-5022611.html, on 24/06/2021.
  27. Various sites accessed through google search

Mines and Minerals Bill affected by Covid, Parly eyes alternatives

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Mines and Minerals Bill affected by Covid, Parly eyes alternatives

The slow pace at which the mines and minerals bill is moving has been instigated by the Covid-19 pandemic as the government delay stakeholder’s consultation due to fear of fashioning a pandemic super spreader, Parliament has hinted.

Anerudo Mapuranga

Speaking to Mining Zimbabwe Parliamentary Portfolio Committee on Mines and Mining Development Chairperson Hon Edmond Mkaratigwa said the mines and minerals bill has taken too long mostly due to the Covid-19 pandemic forcing parliament to consider a new way of doing business to speed up the bill.

“The Mines and Minerals Bill has taken very long mostly due to COVID-19 now that has further impacted normal operations of both the Executive and Parliament.

“Some processes require the involvement of the public and if the Bill is sent to Parliament then the processes fail to take place at stipulated times, it may have ramifications on its passage in terms of Parliament sessions and rules of the House so there is need for a balance. Covid-19 may have to force us to revisit the way we do business maybe,” Mkaratigwa said.

The Parliamentary Portfolio Committee on Mines and Mining Development Chairperson said parliament was eager to see the bill passing very soon to address the problems in the mining sector caused by the lack of a clear policy.

Hon Mkaratigwa also said that his committee was pleased that the formalisation of small scale and artisanal mining was taking shape addressing the famous smuggling problems.

“It’s now not an easy answer given the current uncertainty as a result of the pandemic but we want the Bill ready earliest. As you can see, however, we are happy that formalization is gathering momentum and if the strategy equitably balances the public and private sector interests, we will be good to go.” Mkaratigwa said.

The Reserve Bank of Zimbabwe Governor said all artisanal miners will soon be required to be registered as part of efforts by the Government to formalise their operations, curb illegal gold dealing and protect the environment, a statutory instrument on the requirements for registration was being crafted and would be gazetted soon.

It is estimated that there are between 500 000 and 1,5 million artisanal and small-scale miners, including farmers who do a little gold panning in the offseason, and only 16 per cent are registered.

“We want to register for the sake of traceability and knowing who you are and where you are from,” the central bank governor said.

Under the envisaged registration system, the miners’ biometric details would be captured and the miner would be issued with a registration number.

Registered miners would also undergo training on environmentally friendly mining methods and land reclamation.

This article first appeared in the Mining Zimbabwe August 2021 Magazine

Investors clash over Ran Mines ownership

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Investors clash over Ran Mines ownership

RIVAL investors are planning to approach authorities to block the return of Bindura-based Ran Mines over ownership dispute. 

Vongai Mbara 

The investors who met over the weekend said a consortium led by mining executive Jack Murehwa could not operate the gold asset before government addressed the long-drawn ownership dispute. 

Murehwa’s investment vehicles, G&P Industries and Ran Mines Private Limited, announced at the weekend that extensive groundwork had been covered and Ran Mines would return to production next month, 22 years after operations grounded to a halt. 

Ran Mines drifted into the limelight in November last year after 30 artisanal miners were trapped in flooded shafts, exerting pressure on the 122-year-old operation’s aged underground support systems. 

Decomposed bodies of miners shocked the nation as they emerged out from the shaft days later, with others making it alive. 

Murehwa’s consortium is planning to sink US$6,5 million to bring the project back to life. 

Speaking in an interview with NewsDay Business yesterday, Angeline Munyeza, the director of Blackgate Investments Private Limited, said extraction of gold at the operation would be illegal as government was yet to make a determination on the ownership wrangle that erupted in 2009. 

“We heard that they are opening, but any extraction of gold there will be illegal because Blackgate is the lawful owner of that mine,” Munyeza said, noting that the consortium was lining up meetings with authorities to find out if the Mines and Mining Development ministry had allowed the mine to restart. 

“We confidently believe that this cancer of corruption we are alleging is at an advanced stage within the Mines and Mining Development ministry and if its source is not guillotined, it will substantially debilitate the endeavour of Zimbabwe having a US$12 billion mining industry by 2023, which the government is pursuing,” Munyeza said. 

A mining commissioner had recommended the cancellation of claims held by G&P Industries and Ran Mines in 2009, according to documents. 

NewsDay Business understands that the shock collapse rattled Ran Mines hours after the Mines ministry led rival investors to the mine as part of efforts to find a solution. 

Documents lodged by Blackgate with the Mines ministry indicated that it identified the mine, which had been abandoned for a decade, before approaching authorities seeking permits to kick off operations. 

“The abandoned claims were then legally and procedurally awarded to Blackgate,” Munyeza, in a letter addressed to the ministry, said. 

“Pursuant to the registration of the claims in its name, Blackgate, with its partners, commenced the processes towards starting operations on the mine. Once it dawned on G&P Industries and Ran Mines that there were formal processes and set-ups at the site, they reported to the mining commissioner that Blackgate had overpegged their claims in November 2009. 

“A dispute then arose which was referred to the mining commissioner who conducted an investigation. The final recommendations of the mining commissioner were that Blackgate be allowed to continue with its planned operations on Ran Mine,” Munyeza said, noting that this became the beginning of a protracted ownership wrangle that has continued until today. 

Yesterday, Murehwa said his team was confident that it was doing the right thing. 

“At the end of this month we are getting into production. I am happy to discuss the progress that we have made, not destraction. 

“There is no mine in Zimbabwe which has no dispute. We are confident that we are on the right track,” he said 

The mine has capacity to employ 250 workers. 

Attempted murder at a gold rush in Bulawayo

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Attempted murder at a gold rush in Bulawayo

Zimbabwe Republic Of Zimbabwe (ZRP) has reported an attempted murder case at a gold-rush which occurred at Mangwabi Mine in Bulawayo.

Shantel Chisango

Accoding to the police, Mphoengs rival groups clashed over the gold-rush leading to the attempted murder.

Allegedly, a group called Abomaripper is suspected to have been involved in the violence that took place at the Mine.

ZRP has condemned the use of violence especially at gold-rushes, and promised that the law will take its course to deal with law breakers.

Of late, the ZRP arrested three individuals in Kadoma after machete gangs clashed following a gold rush in Eiffel Flats last week, which left several illegal gold miners severely injured.

The incident occurred at Plot 5, Lornecorp Farm, Gweshe area.

Police urges the public not to practise violence in any matter and has warned that breaking the law will bring punishment upon individuals.

BREAKING: Unki chairman James Maphosa dies

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BREAKING: Unki chairman James Maphosa dies

Anglo American country Chairman and former Chamber of Mines President Mr James Maphosa has died. Maphosa passed away yesterday.

Walter Nemasasi the General manager at AngloAmerican Platinum confirmed the sad development. Anglo owns Unki mine.

Meanwhile, condolence messages have started pouring in with The Association of Mine Managers Zimbabwe conveying its heartfelt condolences to his family.

“Mr Maphosa was a notable figure in the Zimbabwe Mining Industry with over 30years of meaningful contribution,” reads part of the message.

“He consulted for Anglo American Corporation since 2006, looking after Anglo’s interests in Zimbabwe with particular focus on the development of Unki. He served on the Chamber of Mines for over 23 years rising to become the President of the Chamber and was elected as an honorary life member of the Chamber,” AMMZ said.

More to follow…

 

 

 

ASM to contribute US$4 billion to targeted mining economy by 2023

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ASM to contribute US$4 billion to targeted mining economy by 2023

Small-scale miners are targeting to contribute US$4 billion to the targeted US$12 billion mining economy by 2023.

Vongai Mbara

Zimbabwe Miners Federation (ZMF) chief executive officer (CEO) Wellington Takavarasha said artisanal and small-scale miners (ASM) have an important role to play towards the realization of the US$12 billion mining economy.

 

“Statistics of production indicate that that the US$12 billion mining economy is being achieved in various mining sectors. US$4 billion has to come from the ASM. Fidelity Printers receipts of small-scale miners indicate that the sector is producing 60 percent of total gold output. The role of ASM is very important. Currently 70% of the minerals being mined is gold while 30% constitutes other minerals,” said Takavarasha during an interview.

 

Takavarasha pointed out that formalisation of the ASM sector is overdue.

 

“As long as government is benefiting from the artisanal and small-scale mining sector operations, there is definitely need to formalize. There have been some engagements at Mines and Finance Ministries and they are going to meet and come up with a Statutory Instrument that legalizes and policies that have a framework for the ASM sector. This has been on the cards,” he said.

 

Meanwhile, Takavarasha said the Covid-19 pandemic has adversely affected the ASM sector.

 

“Covid-19 has greatly impacted on the ASM sector. We have had challenges such as cash shortages. Cash shortages are emanating from the fact that commercial flights that have been coming into the country and the international flights were being restricted. Therefore, this impacted on Fidelity Printers having cash. There were acute shortages at Fidelity Printers and Refineries because of the pandemic,” he said.

 

Consequently, the situation led to a significant drop in production.

 

 

“Production during Covid-19 dropped drastically. Statistics indicate that we went from 22 tons to 9,8 tons,” said Takavarasha

Caledonia develops new mine underneath its Gwanda mine

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Caledonia develops new mine underneath its Gwanda mine

New York Exchange-listed gold mining company, Caledonia Mining Corporation plc is developing a new mine underneath its Gwanda based Blanket Mine as it seeks to produce over 2 tonnes of gold annually.

Rudairo Mapuranga

The government through the Minister of Mines and Mining Development Hon Winston Chitando is on record optimistic that Blanket Gold Mine is vital towards the achievement of the US$12 billion mining industry where gold is expected to produce an annual revenue of US$4 billion.

According to Caledonia Chief Executive Officer Mr. Steve Curtis, after the development of a central shaft which was commissioned this year, the company is developing a three-level new mine underneath the existing mine in an effort to reach its 2022 target of producing 2.28 tonnes annually.

“We have solely ramped up production from about 20 000 ounces a year to our target of next year’s 80 000 and over the last five years we have done a five-year expansion project sinking a new shaft down to 1200 metres and we are developing effectively a 3-level new mine underneath the existing mine. The mine is over 110 years old and it’s produced over a million ounces of gold and as we stand here today it has got a life of mine up until 2034.” Curtis said.

Caledonia increased its gross revenue by 31 percent year-on-year to $30-million for the second quarter of the year 2021.

During the quarter the company produced 24 percent more gold year-on-year, at 16 710 ounces setting a new second-quarter production record.

Over 165 000 t of ore were mined and milled in the second quarter, which is a new production record for any quarter and reflects the contribution of Caledonia’s Central shaft, which was commissioned at the end of March and the build-up towards the target of 80 000 ounces per year from 2022 onwards.

In terms of production in the first half of the year, Caledonia produced 8 percent more gold in comparison to the first half of 2020.

Going forward, the miner states that production in July was 5 995 ounces, thereby showing a steady increase in average monthly production and demonstrating that the Blanket mine is on track to achieve its production guidance of between 61 000 ounces and 67 000 ounces for the full year.

The mine’s cost guidance for this year is in the range of $740 per ounce to $815 per ounce, with guidance for AISC being between $985 per ounce and $1 080 per ounce.

Meanwhile, the company has decided not to proceed with the acquisition of the Glen Hume property in the Northern part of Gweru owing to disappointing exploration results.

Curtis notes that the company’s 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.

Nonetheless, Caledonia reports that it will conduct exploration at Connemara North, the other optioned property in Zimbabwe, and will also consider further investment opportunities in Zimbabwe and elsewhere.

As for the solar photovoltaic project being undertaken by Caledonia at the Blanket mine, the company reports that this is now in the procurement phase, with project completion expected in April 2022.

This project is expected to provide about 27 percent of Blanket’s average daily electricity use.

 

 

 

 

Ran Gold Mines return under threat

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Ran Gold Mines return under threat

RIVAL investors were at the weekend planning to approach authorities to block the return of Bindura-based Ran Mines, saying a consortium led by mining executive Jack Murehwa, that is championing the project, could not operate the gold asset before government addressed a long-drawn ownership dispute.

Murehwa’s investment vehicles, G&P Industries and Ran Mines Private Limited, announced at the weekend that extensive groundwork had been covered and Ran Mines would return to production next month, 22 years after operations grounded to a halt.

Ran Mines drifted into the limelight in November last year after 30 artisanal miners were trapped in flooded shafts, exerting pressure on the 122-year-old operation’s aged underground support systems.

Murehwa’s consortium is planning to sink US$6,5 million to bring the project back to life.

But in an interview with NewsDay Business yesterday, Angeline Munyeza, the director of Blackgate Investments Private Limited, said extraction of gold at the operation would be illegal as government was yet to make a determination on the ownership wrangle that erupted in 2009.

“We heard that they are opening, but any extraction of gold there will be illegal because Blackgate is the lawful owner of that mine,” Munyeza said, noting that the consortium was lining up meetings with authorities to find out if the Mines and Mining Development ministry had allowed the mine to restart.

“We confidently believe that this cancer of corruption we are alleging is at an advanced stage within the Mines and Mining Development ministry and if its source is not guillotined it will substantially debilitate the endeavour of Zimbabwe having a US$12 billion mining industry by 2023, which the government is pursuing,” Munyeza said.

A mining commissioner had recommended the cancellation of claims held by G&P Industries and Ran Mines in 2009, according to documents.

NewsDay Business understands that the shock collapse rattled Ran Mines hours after the Mines ministry led rival investors to the mine as part of efforts to find a solution.

Documents lodged by Blackgate with the Mines ministry indicated that it identified the mine, which had been abandoned for a decade, before approaching authorities seeking permits to kick off operations.

“The abandoned claims were then legally and procedurally awarded to Blackgate,” Munyeza, in a letter addressed to the ministry, said.

“Pursuant to the registration of the claims in its name, Blackgate, with its partners, commenced the processes towards starting operations on the mine. Once it dawned on G&P Industries and Ran Mines that there were formal processes and set-ups at the site, they reported to the mining commissioner that Blackgate had overpegged their claims in November 2009.

“A dispute then arose which was referred to the mining commissioner who conducted an investigation. The final recommendations of the mining commissioner were that Blackgate be allowed to continue with its planned operations on Ran Mine,” Munyeza said, noting that this became the beginning of a protracted ownership wrangle that has continued until today.

Yesterday, Murehwa said his team was confident that it was doing the right thing.

“At the end of this month we are getting into production I am happy to discuss the progress that we have made, not destraction.

“There is no mine in Zimbabwe which has no dispute. We are confident that we are on the right track,” he said.

The has capacity to employ 250 workers.

 

 

NewsDay

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