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Caledonia develops new mine underneath its Gwanda mine

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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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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

Chinese miner pegs whole village in Uzumba

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VILLAGERS in Uzumba, Mashonaland East province, are up in arms against a Chinese company, Heijin Mining, whose black granite mining claim covers the entire village.

This was revealed in a letter addressed to Mashonaland East provincial mining commissioner dated September 3, in which Lovemore Kaseke, through the Zimbabwe Lawyers for Human Rights (ZLHR) is demanding copies of the environmental impact assessment (EIA) certificate and the miner’s prospecting licence.

The letter was copied to the Environmental Management Agency (EMA).

“Our clients are residents of Kaseke village in Uzumba together with his clan, the Kaseke clan. Our client advises that Heijin Mining Company purports to be a holder of mining blocks in Kaseke village and officials from the said mining company and from the ministry have proceeded to peg the whole of our client’s village without consulting our clients,” the letter read.

“Our clients advise that the pegs cover their homesteads, grazing areas and cultivating fields. To that end, we kindly request any prospecting licence that was granted to Heijin Mining Company,” the letter further read.

The invasion of Kaseke village has irked traditional leaders, among them Chief Nyajina, who is encouraging his subjects to resist the takeover of the land.

“In the event that a prospecting licence was granted to Heijin Mining Company, it is our considered view that the pegging of Kaseke village is unlawful in terms of Section 31(1) of the Mines and Minerals Act, a holder of a prospecting licence shall not exercise any of the rights conferred in the licence on communal land without the consent of the occupier. The pegging of Kaseke village without the consultation of occupiers is, therefore, unlawful.”

“Further in terms of section 31(1) of the Mines and Minerals Act, no holder of a prospecting licence can proceed to peg communal land occupied as a village without the written consent of the rural district council of the area concerned,” the letter added.

 

 

NewsDay

Murray & Roberts nears deal to help develop Zimbabwe’s biggest platinum mine

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JSE-listed multinational construction company Murray & Roberts (M&R) is adding Zimbabwe’s new Darwendale platinum mine among R84 billion worth of contracts that it hopes to wrap up this year.

The mine, run by Great Dyke Investments (GDI), is projected to be the country’s biggest platinum operation.

Of the R84 billion current tenders, Zimbabwe is among R30 billion of contracts where M&R is the chosen contractor, CEO Henry Laas says.

“But the important thing is that of that R84 billion, R30 billion has been negotiated on a sole source basis, which means we are not competing with other competitors on that R30 billion of work. There are three projects in that space. One is a project in Zimbabwe and two projects in Australia which collectively make up the R30 billion on a sole source basis. So there we are the preferred bidder,” Laas said last week.

“We’ve worked with the client to a point that they’re ready to proceed with the project. And all three projects are subject to final investment decisions and we can’t time that exactly, but we are confident that some of them will find their way into the order book if not by December certainly very early in the second half of the current financial year.”

M&R could not give further details, as the transaction is not yet finalised. Group media and investment executive Ed Jardim told newZWire: “As we are still working on the commercials of the undisclosed project, I cannot confirm and details around the project/s.”

However, GDI does list M&R unit Murray & Roberts Cementation (SA) among a range of key contractors and suppliers on the development of the mine. Murray & Roberts Cementation is one of the mining industry’s largest contractors in shaft sinking, engineering and mine design.

Other international contractors include contractor Fata EPC of Italy, the largest underground mining contractor within the South Africa region, DRA, which did the bankable feasibility study for the project, geology consultants MSA Group (SA), engineering company TOMS (Russia), metallurgists Metallicon (SA) and roller mill maker Loesche (Germany).

In September last year, GDI cleared a significant hurdle when the African Export-Import Bank completed a due diligence study, allowing it to proceed with a US$500 million syndicated funding program. By then, US$100 million had been spent on preliminary works. However, funding has been delayed by the impact of COVID-19 on the capital markets.

The Darwendale project, located 65 km from Harare, has a capacity of 181,3 million tons of ore and enough PGM resources to support a total mine life for more than 20 years. When complete, it is expected to produce 860,000 ounces of platinum group metals and gold a year, making it the country’s biggest mining operation.

GDI is 50% owned by Russia’s Vi Holding and Zimbabwean investors Landela Mining and Fossil. _NewZwire

Muzarabani toasts to oil, gas

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IN 1989, American oil and gas company Mobil Corp asked for permission from Government to explore and drill natural gas and oil in Muzarabani, Mashonaland Central.

The company was convinced that the area was endowed with vast oil reserves that could be exploited commercially.
After intensive exploration work, Mobil did not find the black gold.

In 1993, it folded its US$15 million, three-year search for oil and gas after coming to the conclusion that the risks were too high to justify additional investment.

However, nearly 30 years later, another oil and gas exploration company stands on the brink of drilling its first test well around the very same area.

Australia Stock Exchange-listed Invictus Energy will this month begin drilling their first test well.

Last month, an armada of vehicles transporting state-of-the-art seismic survey equipment to be used to identify the best site for sinking exploration wells landed in the country.

The equipment is currently enroute to the site and the Muzarabani community is elated.

Chief Hwata (Olasis Tanyanyiwa Musemwa), under whose jurisdiction exploration work is taking place, said the massive project promises to transform his community.

“I know what a community can achieve with a project of such a magnitude,” he told The Sunday Mail last week.
“I was young when Mobil Corp did their exploration work.

“Five of my family members were employed on-site and in an instant, our lives changed for the better.”

He said the community is already beginning to feel the impact of Invictus’ work.

“Already, a lot has been done in the past 12 months and we expect major development here.

“The company has already promised us 162 boreholes in Muzarabani District before work commences.”

Muzarabani is a semi-arid district that receives low annual rainfall of between 450mm to 650 mm and often experiences seasonal droughts and severe intra-season dry spells.

“As community leaders, we have also presented our suggestions of infrastructural development that we would want in the area such as schools and clinics, especially for the vulnerable.

“Currently, there are 82 locals that are employed; we expect another 160 to be employed once the consignment of seismic survey machinery arrives this week (last week) and another batch to be employed when full operations begin.

“And already cash has started to circulate in the area.

“This alone is testament of bigger things to come.”

Natural gas and oil exploration in the area dates back to 1979 when the Rhodesian government initiated a search for petroleum deposits that drew blanks.

Mobil Corp latched on years later but the exercise also came to naught.

Today, Invictus says seismic study data gathered so far is promising. Seismic study refers to the process of using high-tech equipment to “listen” to underground vibrations in order to determine the existence of hydrocarbons.

Using modern sophisticated data processing techniques, Invictus reprocessed the data gathered by Mobil.

They, in turn, found strong evidence suggesting the underlying geographical structures may host domes and traps that could contain oil and gas.

Muzarabani locals remain obstinately rustic and conservative; they adhere to a strict cultural practice code.

Chief Hwata reckons the acknowledgment of the community’s cultural practices by Invictus may be one of the reasons why the project has been a success so far.

“I believe a lot of procedures were done right this time around,” he added.

“We also have a Government which was willing to follow the whole process through.

“A number of traditional ceremonies were done before exploration was done around the area in a show of respect to our culture.”

A network of rivers originating from the Mavhuradonha mountains in the south snake through Muzarabani before channelling into the Zambezi River and later into the Cahora Bassa Dam in Mozambique.

The river networks make Muzarabani a flood-prone area.

Underdevelopment has blighted the district for years.

Now, locals feel that the winds of change may finally be blowing across the area.

They, however, remain cautious.

Stanely Mudziviri, the local headman, implored Government to ensure there was development in the area.

“This is a very noble and good initiative which is set to eradicate poverty in the area,” he said.

“We would like to see an increase in secondary schools; at the moment, the nearest secondary school is 18 km away, which is very worrisome.

“There is a need for construction of dams in this area so that we can start irrigation.

“We hope that Government plays a monitoring role to ensure there is development.”

Government, he added, should guard against looting of the resources as happened in the Marange diamond fields in Manicaland.

“We heard Marange was endowed with diamonds but in terms of development, there is nothing much to talk about.

“It was only after Government intervened that some infrastructural developments started taking place there.”

In Muzarabani, however, hope continues to spring eternal.

Already roads linking Muzarambani villages to Mbire and Kanyemba have been graded.

Construction of accommodation facilities for workers has begun.

Small irrigation schemes have also been set up.

Local villagers are determined to complement the development brought about by prospects of abundant oil and gas deposits.

They reckon the sleepy town of Muzarabani will soon be a hive of activity.

After an arduous journey spanning 30 years in search of the precious black gold, they are confident of better days ahead.

 

 

 

The Sunday Mail

New investments boost platinum output

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Local platinum production continues to rise on the back of sustained investments in capacity by producers over the years.

The country’s major producers — Zimplats, Unki and Mimosa — are expanding operations, while the new project, Great Dyke Investments, has opened two box cuts at its site in Darwendale.

It is expected to be operational by 2023.

Bravura, which has operations near Zimplats, has completed drilling and will open its first box cut before year-end.

According to the World Platinum Investment Council (WPIC), platinum production in Zimbabwe rose 12 percent to 243 000 ounces in the first half of 2021 from 218 000 ounces in the comparative period.

“Zimbabwean production increased by 17 percent year-on-year as a backlog of matte from the Unki smelter was processed through the Anglo Converter Plant (ACP) and refined,” the WPIC said in its quarterly report.

The country is envisioning a US$12 billion mining industry by 2023.

PGMs (platinum group metals) are projected to contribute US$3 billion as production is anticipated to jump from about 979 000 ounces in 2018 to about 2,5 billion ounces annually in 2023.

Gold and diamonds will contribute US$4 billion and US$1 billion, respectively, while chrome, iron ore and carbon steel will contribute US$$1 billion.

Coal and hydrocarbons are also forecast to contribute US$1 billion.

Lithium will generate US$500 000, while other minerals will weigh in with US$1,5 billion. Zimplats, the largest platinum producer in the country, has lined up capital projects valued at over US$570 million.

According to Mines and Mining Development Minister Winston Chitando, the investments dovetail with the country’s quest to grow the sector and contribute to a prosperous society in the next nine years.

Australian Stock Exchange-listed Zimplats spent about US$160 million on capital projects in the half-year period ending June 30, 2021, which represents a significant increase from US$104,2 million a year earlier.

Unki Mines recently indicated it had invested US$48 million towards increasing its concentrator capacity, which is expected to boost output by 30 percent.

The group’s general manager, Mr Walter Nemasasi, said the new concentrator is set for commissioning sometime this year.

The new plant will be a second major value addition and beneficiation project by the mine after the commissioning of a US$60 million smelting plant by President Mnangagwa in 2019.

In 2019, Mimosa Mining Company invested in a new processing plant worth US$10 million that was expected to shore up processing capacity and production.

According to the WPIC, Zimbabwe’s second-quarter output was 17 percent higher when compared to the second quarter of 2020.

In terms of quarterly global production report, the WPIC noted that global mine supply jumped 65 percent year-on-year to 1 557 koz (thousand ounces), the highest quarter for two years, as the major producer, South Africa, recovered from the extreme disruption of second quarter 2020, supporting refined output with a drawdown of semi-finished inventory.

South African output increased 124 percent year-on-year due to a return to full operations at the Anglo American Platinum Converter Plant (ACP) following the shutdown in the second quarter of 2020.

Global refined supply is expected to rebound to near 2019 levels in 2021, rising by 21 percent to 6 047 koz on the back of the South African recovery following the extreme disruptions of 2020.

South Africa is anticipated to add 1 103 koz year-on-years, a 33 percent increase to 4 402 koz.

According to WPIC, South Africa’s output continues to exceed earlier production guidance, with the ACP operating ahead of expectations and the largely successful navigation of Covid-19 pandemic challenges.

North American volumes are forecast to grow by 8 percent as a project in Montana rampsup.

“Zimbabwe is expected to add 17 koz, up 4 percent, as the backlog of semi-finished inventory is refined in South Africa.”

In 2020, platinum production in Zimbabwe surged by 5 percent to 476 000 ounces from 455 000 ounces in 2019, becoming the only country to register growth among other top producing nations despite the adverse effects of the coronavirus pandemic.

 

 

 

 

 

 

The Sunday Mail

Hwange women yearn for mine job opportunities

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MS Pauline Banda, a young woman in her early thirties sits attentively at a roadside vegetable market in Lwendulu, a high-density suburb in the colliery town of Hwange.

She sits under the scorching sun watchful of any suspicious movement by her fellow vendors — a potential signal of the presence of police officers. The roadside markets are unregulated. After two years in the trade and numerous arrests by the Hwange Colliery and
Zimbabwe Republic Police, Ms Banda is contemplating on migration in search of better opportunities.

“After finishing my A-level I went for a certificate in Hotel Catering and Food Technology.

But, since then, I have never been employed despite several attempts in different mining companies. I now want to go to Victoria Falls, maybe I will get a job,” said Ms Banda.

Hwange is dominated by coal mining companies. Mining companies’ world over provide job opportunities to both the educated and uneducated members of the community. But young women in Hwange are struggling to penetrate the industry. Zimbabwe Diamond and Allied Minerals Workers Union (ZDAMWU) Secretary General Mr Justice Chinhema notes that the mining sector is male-dominated.

“We feel there is a need to break this barrier. It is worse in Hwange; you hardly see female workers engaged. Most of the few women in jobs are employed as guards, janitors or general hands. These days there is no work that women cannot take. Gender equality has to be applied and every person, if qualified for a job, should be given an opportunity.

As ZDAMWU we have created a Woman, Youth and Gender department to promote gender equality, equity and empowerment of women and young workers in the mining industry. It is also pushing for the ratification of the International Labour Organisation (ILO) convention 190 which deals with sexual harassment,” said Mr Chinhema.

The eighth Zimbabwe Vulnerability Assessment Committee (ZimVAC) 2020 – Urban Livelihoods Assessment notes that urban areas provide several socio-economic opportunities for many people but are also becoming increasingly precarious places to live in, especially for low-income residents. The Covid-19 pandemic and its debilitating impacts on livelihoods has exacerbated the situation by eroding community coping capacities.

ZDAMWU says another repelling factor for young women in local mines is fear of sexual harassment.

“We have been receiving complaints of sexual harassment perpetrated against female workers. And by creating the department of Gender, we have created a platform for all women working in the mining sector to report those abuses. In Hwange district only one
percent of the employed workers are women and the abuse is so rampant,” said Mr Chinhema.

Greater Whange Residents Association Chairperson Mr Fidelis Chima acknowledges that Hwange has job opportunities considering the number of coal mining companies that are mushrooming in Hwange.

“If these companies are to pay reasonable salaries and improve working conditions, our young women will get opportunities,” noted Mr Chima. — The Citizen Bulletin

‘It’s wrong for Chinese miner to evict villagers’

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THE Zimbabwe Lawyers for Human Rights (ZLHR) has described the planned eviction of Kaseke villagers in Uzumba, Mashonaland East province, by a Chinese mining company as illegal.

Heijin Mining Company is pushing to evict hundreds of Kaseke villagers from their ancestral land, after it was allegedly given a special mining grant to extract black granite on land covering 300 hectares by the government.

ZLHR lawyer Tinashe Chinopfukutwa, on behalf of the villagers, wrote to Mashonaland East provincial mining commissioner and to the Environmental Management Agency (EMA) demanding clarification on the existence of a prospecting licence authorising the miner to conduct mining activities in the area.

“To that end, we kindly request if any prospecting licence was granted to Heijin Mining Company and if so, we kindly request for a copy thereof,” Chinopfukutwa said in the letter.

“In the event that a prospecting licence was granted to Heijin Mining Company, it is our considered view that the pegging of Kaseke village is unlawful for the following reasons. In terms of section 31 (1) of the Mines and Minerals Act, a holder of a prospecting licence shall not exercise any of the rights conferred in terms of the prospecting licence on communal land without the consent of the occupier.

“The pegging of Kaseke village without the consultation and consent of the occupiers is therefore unlawful. Further, in terms of section 31(1)(h) of the Mines and Minerals Act, no holder of a prospecting licence can proceed to peg communal land occupied as a village  without the written consent of the rural district council of the area concerned.”

The lawyer also claimed that the company could not conduct mineral prospecting or peg the village before approval by EMA.

Since the beginning of this year, hundreds of villagers in different parts of the country have been evicted, while others are yet to be displaced, to pave way for Chinese mining projects.

 

 

NewsDay

Formalisation to enable taxation of small-scale miners

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THERE is a need to urgently formalize the artisanal and small-scale mining (ASM) sector to create an environment that allows for the taxation of its players as well as facilitating their benefits from coordinated Government programmes.

This came under the spotlight during a Zimbabwe Miners Federation (ZMF) organised webinar for stakeholders, which was held under the topic: “Challenges involved in taxation of the ASM sector”.

The participants highlighted the importance of formalisation of the sector, which they said should play a key role to national economic development.

An estimated 40 000 ASM miners are believed to be formalised whilst about 1,5 million are said to be operating ‘illegally’ in Zimbabwe.

This is despite the fact that the small-scale mining sector is responsible of about 60 percent of gold deliveries to Fidelity Printers, contributing significantly to the country’s Gross Domestic Product.

Mining expert and University of Zimbabwe lecturer, Mr Motive Mungoni, said formalization of the ASM was beneficial to both the Government and the miners.

“Formalisation would not only improve the conditions of the sector on which millions of Africans have come to increasingly rely upon on their livelihoods but would also provide a platform for host governments to collect tax and other revenue, which the state is currently missing out on,” he said.

“An effective system of ASM taxation would be an appealing solution for both operators and the Government.

“Operators tend to mine informally because of the cost and bureaucracy involved but many would surely legalise as well as pay tax, if it meant gaining access to the wealth of the state and support schemes.”

The 2016 World Bank Doing Business Report observed that it takes 242 hours per year and 51 payments to comply with Zimbabwe’s tax laws and obligations and this resulted in high levels of noncompliance due to errors of omission and commission. The Government is reviewing these issues under its comprehensive ease of doing business drive.

“Facilitating the legalisation of the sector through the empowerment of its participants will require long term commitments from donors and policymakers to map its organisational structure, engage with its key operators and devise comprehensive policies, which
accurately reflect the realities on the ground,” said Mr Mungoni.

Mr Mukasiri Sibanda of Stop the Bleeding Campaign, however, said ASM miners were already paying taxes through purchase of fuel and other mining equipment.

“There are a lot of consultative taxes that the artisanal miners are already encountering. For example, most miners are off the grid and rely on fuel for their operations of which fuel is one of the heavily taxed commodities in Zimbabwe. They should be acknowledged for that,” he said.

“Let’s look at ways of motivating the miners to play developmental roles like assisting in construction of infrastructure like clinics, roads and schools within their communities.”

Mr Sibanda urged the Government to create a conducive environment for the miners by providing equipment. Parliamentary Portfolio Committee on Mines and Mining Development chairperson, Edmond Mukaratigwa, said:

“We are pushing hard that the ASM sector be formalised, be given means of production and that they are recognised”.

Informality makes it hard if not impossible to trace ASM’s funds as well as bringing them to benefit from Government schemes as most banks demand collateral, he said.

The legislator hoped the Mines and Minerals Amendment Bill would tackle these issues, including facilitating comprehensive exploration and equipping miners before extraction.

Zimbabwe Revenue Authority (Zimra) revenue manager, Mrs Valentine Murumbi, said formalisation was a must.

“The small-scale miners and the small-scale businesses form the back-borne of the economy contributing over 50 percent national forex in the past decade,” she said.

“Business in the SMEs, therefore, needs to be formalised.

 

 

 

 

The Chronicle

ZESA announces tough 12-hour load shedding

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Zimbabwe’s power utility has announced a drastic loadshedding schedule, due to breakdowns and refurbishments at its two main power plants.

Dam wall rehabilitation at Kariba will lead to 12-hour power generation cuts, at a time breakdowns at Hwange had already sharply cut output, the Zimbabwe Electricity Transmission and Distribution Company (ZETDC) said in a load-shedding schedule this weekend.

“The Zimbabwe Electricity Transmission and Distribution Company is experiencing a power shortfall due to generation constraints at Hwange Power Station, limited imports and a programme of dam wall rehabilitation at Kariba, which requires that two generators be taken out daily for 12 hours. The planned outage of the two units then restricts Kariba power station output during these hours,” ZETDC says.

“The power shortfall is being managed through load shedding in order to balance the power supply available and the connected load.”

Priority would go to major hospitals, water and sewer installations, national security establishments, oxygen producing plants and wheat farmers.

Current rehabilitation of the Kariba dam wall and plunge pool has affected power supply

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This is the worst power crisis Zimbabwe has faced since 2019, when outages lasted up to 18 hours at a time, hurting the economy. That crisis was due mostly to Hwange breakdowns and two successive droughts that caused Kariba to cut hydropower generation by up to 70%.

Zimbabwe in 2019 agreed a power import deal with Eskom, but the terms are that the South African utility can only send electricity to Zimbabwe if there’s no shortage at home.

Lack of power investment

Zimbabwe’s lack of investment in power supply has left it vulnerable to damaging power cuts.

The Hwange thermal power plant is currently made up of six units which were commissioned in phases between 1983 and 1987, with capacity to generate 920MW (four units of 120MW each and two units generating 220MW each).

Mainly due to ageing equipment, the Hwange plant has not fired from all its installed plants for a while. Currently, only four units are in service, and when they do work, they generate less than a quarter of capacity.

On Sunday morning, Hwange was putting out just 343MW and Kariba 809MW, according to data from the Zimbabwe Power Company. Total output was 1196MW, which is less than peak demand of 1400MW.

To fix this diminishing capacity due to frequent breakdowns of its antiquated plants, the government is adding two new units, 7 and 8, at a cost of US$1,1 billion.

In terms of the schedule, the first of the two units had been expected to be commissioned in 2021, adding 300MW to the grid. The second unit is expected to add another 300MW to national supplies by January 2022.

However, the Zimbabwe Power Company says COVID-19 and payment delays have pushed the project off schedule.

In Kariba, an upgrade added 300MW to the 750MW hydro-electrical plant in 2018. But work by the Zambezi River Authority to repair the dam wall and the plunge pool has meant long shutdowns of generators.

The latest power crisis will dim Zimbabwe’s economic recovery prospects. Business groups, such as the CZI and the Chamber of Mines, had pinned hopes of 2021 recovery partly on the improved power generation that had been seen since 2020. Government had forecast the electricity sector to grow by 14% this year

Newzwire