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Gertler mining deals could cost Congo $1.76bn in royalties

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Congo could lose out on $1.76 billion in potential royalty payments from its copper and cobalt mining deals with Israeli mining magnate Dan Gertler, an anti-corruption group said on Wednesday, calling on the government to open an investigation.

The US Treasury sanctioned Gertler and more than 30 of his businesses in December 2017 and June 2018, accusing him of leveraging his friendship with former Congo President Joseph Kabila to secure lucrative mining deals.

Gertler has denied any wrongdoing.

Using data including recently published contracts on the mining ministry website, the campaign group Congo is Not for Sale (CNPAV) estimated that deals with Gertler for cobalt, copper and oil concessions have already cost the state around $1.95 billion.

A SPOKESMAN FOR GERTLER SAID THAT CNPAV WAS “SIMPLY MAKING UP NUMBERS IN AN EFFORT TO GENERATE THE MEDIA INTEREST”

In a report, CNPAV accused Gertler of acquiring mining and oil licenses at “knockdown prices before selling them on to international partners, or even back to the government, for incredible profits”.

Congo could lose out on an additional $1.76 billion in royalty payments if the contracts are not reviewed, CNPAV said, bringing total losses as high as $3.71 billion.

“The Congolese government cannot ignore the hemorrhage of billions of dollars from its coffers when it desperately needs the funds to rebuild its economy and pull its citizens out of poverty,” said Jean Claude Mputu from CNPAV.

A spokesman for Gertler told Reuters that CNPAV was “simply making up numbers in an effort to generate the media interest on which their funding relies”.

Congo’s government spokesman said he could not immediately respond to the allegations.

Congo produces more than 70% of global cobalt supplies and is Africa’s biggest copper miner, but it remains one of the world’s poorest countries.

Its foreign exchange reserves stood at just $506 million in April, corresponding to two weeks of imports of goods and services, according to central bank data.

Potential further losses could accrue from the state mining company Gecamines’ transfer of the right to collect royalties to companies affiliated with Gertler through a series of complex financial deals, CNPAV said in the report.

The largest chunk is expected to come from Swiss miner Glencore’s KCC and Mutanda Mining concessions, worth around $1.46 billion over the next 19 years, CNPAV said. Glencore declined to comment.

 

 

Reuters

ZCDC calls for the end to child involvement in illegal mining

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Zimbabwe Consolidated Diamond Company (ZCDC) earlier this month in an effort to stop the involvement of juveniles in illegal mining activities at the Chiadzwa diamond fields held an All Stakeholder Community Engagement meeting at Gandauta Secondary School in Chiadzwa to discuss possible ways to eradicate the problem.

Anerudo Mapuranga

Many children allegedly ventured into illegal diamond mining due to the constraints brought by the covid-19 pandemic as schools were closed and many businesses shut leading to hunger and starvation in many homes.

ZCDC has been commended for the initiative to seeks ways to remove juveniles from illegal or artisanal mining activities.

The Director of Centre for Natural Resource Governance Mr Farai Muguwu said artisanal mining is modern-day slavery that needs urgent formalisation and regulation.

According to Maguwu Zimbabwe’s gold and diamond mining industry is characterised by violence, frequent accidents, and corruption.

“Artisanal mining is giving people a livelihood but to a large extent, it is modern-day slavery. There is a big contradiction between what you see in the jewellery shops and the source where these minerals are extracted,” Muguwu said.

ZCDC is also rehabilitating roads in Chiadzwa and Chimanimani as well as community feeder roads which were damaged by heavy rains experienced in the areas during the just-ended rainy season

The company through the Zunde raMambo food security scheme also donated agriculture inputs to the Marange community,  Chief Marange is one of the beneficiaries of agricultural inputs support given to the community by ZCDC.

Caterpillar autonomous mining trucks haul 2 billion tonnes

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Caterpillar has announced that an additional 1 billion tonnes of material has been hauled by autonomous trucks using Cat MineStar Command for hauling, surpassing the 3 billion tonnes milestone. This achievement is joined by an expansion of the types of commodities hauled autonomously across a growing number of Cat mining truck class sizes, as well as other brands of mining equipment.

“Since surpassing the 2 billion tonnes milestone, we’ve equipped more mines with Command trucks and have established the world’s first gold mining application with Command for hauling,” offers Jim Hawkins, director of Cat MineStar Solutions. “Since surpassing 1 billion tonnes, we’ve expanded our Command fleet by nearly 250 percent.”

Caterpillar has Command autonomous haulage system (AHS) fleets operating across three continents – North America, South America and Australia – at 17 mine locations, operated by nine different customers. Commodities mined using the Cat Command include iron ore, oil sands, copper, coal and gold.

Command for hauling trucks now span class sizes from 190 to 360 tonnes (210 to 400 tons). The Cat line of Command models include the Cat 789D, 793D, 793F, 797F and the 297-tonne (327-ton) 794 AC with electric drive. Command retrofit kits are available for Cat mining trucks as well as other brands of trucks and loading equipment. Since the first autonomous Cat trucks were commissioned in 2013, these AHS models have traveled more than 110 million km (68.3 million miles), equivalent to a minimum-distance, straight-line roundtrip journey to Mars, with no lost-time injuries associated with automated truck operation.

Customers using Command for hauling report significant gains in productivity and truck utilization rates with lower costs per tonne.  Customers have seen up to 30 percent higher productivity.

“We continue to decrease the time between our major milestone targets because, from initial contract to full deployment, we constantly improve Command implementation efficiency. Consistent with previous milestone trends, we anticipate crossing the 4 billion tonnes threshold at even a faster pace than achieving 3 billion tonnes,” says Marc Cameron, vice president, Caterpillar Resource Industries. “Looking forward, we are planning the expansion of Command for hauling to include our 140-tonne (150-ton) class Cat 785 mining truck.”

HEG

Fidelity official gold buying prices Wednesday 12 May 2021

Fidelity Printers and Refiners (FPR) official gold buying prices Wednesday 12 May 2021

SG 90% AND ABOVE US$52 632.13/kg
SG ABOVE 85% BUT BELOW 90% US$51 750.02/kg
SG ABOVE 80% BUT BELOW 85% US$50 573.89/kg
SG ABOVE 75% BUT BELOW 80% US$49 985.82/kg
SAMPLE BELOW 10g BUT ABOVE 5g US$51 161.96/kg
FIRE ASSAY CASH US$52 926.16/kg

EXCHANGE RATE 84.614

  • NB*Fire Assay cash price is for gold above 100gs and no sample is deducted.
  • For Fire Assay Transfer price, a sample of not more than 10g is deducted
  • 2% royalty is charged on all deposits (Small-scale Miners)
  • 5% royalty is charged on Primary Producers

Cash available. Fidelity Printers and Refiners prices will be changing daily in relation to world market prices.

Visit us: at No. 1 George Drive, Msasa, Harare, Email: [email protected], Telephone: +263 242-486670, +263 242-486694, +263 242-487131, +263 242-447810-5

 

Villagers injured in gold rush mayhem

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HORDES of villagers and gold panners were injured when omakorokoza from various parts of the country went on a rampage at a gold mine along the Gwayi River, Nyamandlovu in Matabeleland North Province.

The vicious omakorokoza who are often prepared to kill or maim rivals to scare away competition at mining claims, clashed with villagers from Tsholotsho and Nyamandlovu at Lewisham 2 Mine in Ward 14 in Umguza District.

The area which is just after St James High School has many mining claims but most people are mining unprocedurally.

Gold panners commonly known as omakorokoza are all over the area where they are leaving deep uncovered pits.

The environment is littered with plastic soft drinks and beer empties as well as human waste.

When Chronicle visited the area on Monday afternoon, omakorokoza were digging in search of gold.

A villager Mr. Charles Mudenda, recounted how the omakorokoza went haywire last week, attacking more than 300 people.

Mr Charles Mudenda

He had several long stitches on his head after being attended to at Mpilo Central Hospital in Bulawayo. “They moved from place to place indiscriminately attacking anyone. They were about a group of 20 but I was attacked by four young boys. I was helpless as I could not fight four armed youths who were merciless. They axed me several times on my head and they only left me when my face was covered in blood. I am still experiencing body pains,” he said.

Mr Mudenda said he was attended to at Mpilo Central Hospital after being transferred from Nyamandlovu District hospital. He said he reported the matter at Nyamandlovu Police Station but villagers feel some police officers could have been bribed to turn a blind eye.

Mr Mudenda said the hospital did not do an X-ray to ascertain the degree of his head injuries and he was living in fear as he is still bed ridden.

“This is not the first time this is happening. Every time when we are lucky to get some gold, news spreads and the next thing we will be forced out and beaten by miners coming from other places. Soon some people will be killed here ,” he said.

Mr Mudenda said the omakorokoza took all the ore from the people for processing leaving them without anything. He said even those who were down the shafts were ordered out and received their share of thorough beatings.

Mr Charles Mudenda shows the injuries to his head

“I heard that they had three cars which they used to load all our ore and they left. But soon after, an excavator came to mine at the area. So it is difficult to know if they were sent to clear us out so that the big fish could move in,” he said.

Another villager Ms. Sithabile Moyo said her brother, Mr. Mehluli Moyo, was also seriously beaten and is receiving treatment in Bulawayo.

“He told us the men started by attacking the women who sell food to the miners and he did not think that he was a target and did not mind running for cover. When they got to him, they hit him with the back of an axe on the head and kicked him. He came home struggling to walk with his clothes bloodied and we had to use the little money we had so that he goes to Bulawayo for medical attention,” she said.

Ms. Moyo said the men told them they do not want to see anyone at the mine.

She said other villagers across the river in Dlula village under Tsholotsho District suffered the same fate, although she did not know how many were injured.

Mrs. Thethesiwe Moyo (74) said villagers are now living as prisoners in their own area due to the activities of omakorokoza.

She appealed for Government intervention so that communities also benefit from their resources.

“As women, we are afraid to go there because of the constant fights,” she said.

Environmental Management Agency provincial manager, Mrs. Chipo Mpofu Zuze said:

“We conducted an inspection last month in respect to mining activities taking place at Lewisham 2 Mine in Ward 14, Umguza District. This was in response to a complaint received by the Agency that there were illegal mining activities being conducted along a river. There was a gold rush a week ago where about 300 people from within the locality and some from outside the area invaded an old ‘abandoned’ trench.”

Mrs. Mpofu Zuze said they fined the mine owner for mining without an environmental impact assessment certificate. She raised concern over litter such as solid waste from food packaging.

Tsholotsho Rural District Council chairperson councilor Esau Siwela said they have the same problem across the river in Ward 20.

“There are about 12 mines that are operating illegally in our area. They did not seek authority and clearance from us. It is just individuals who are benefitting from this so the chaos is benefitting them. Our communities are crying for help as they are losing out in many ways,” he said.

Cllr Siwela challenged the Ministry of Mines and Mining Development to visit the area and see what is happening on the ground so that they act against people they gave the mining claims.

Matabeleland North Provincial police spokesperson Inspector Glory Bhanda said he was yet to receive a report about the attack.

The Chronicle

Matutu, Bredenkamp clash over special grant

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AN investment vehicle fronted by former Zanu PF youth leader Lewis Matutu is locked in a turf war with Gavin Bredenkamp after it was allocated a 450 hectares mining grant on the latter’s Thetford Estate farm in Mazowe, the Zimbabwe Independent can reveal.

Gavin, is the son of the late John Bredenkamp, who was one of Zimbabwe’s top businessmen with interests spanning mining, agriculture and arms.

Documents gleaned by the publication this week show that Matutu was granted mining rights at the heart of Bredenkamp’s 1 500ha Thetford Estate in Mazowe in February 2020 through an investment vehicle called Nyamatsanga Mining.

Bredenkamp was allocated the expansive farm in 2020, at a time the government was downsizing farms.

This has subsequently triggered a fierce dispute between the parties, with Bredenkamp fighting to boot out Matutu.

With the special grant set to expire next year, Matutu’s outfit has desperately sought to exploit the lucrative claims.

But Bredenkamp has resisted Matutu’s moves, insisting that he has rights over the land.

Although mining takes precedence over farming under Zimbabwe’s current legislation, Bredenkamp is armed with protection under the heritage sites as his farm falls within The Upper Mazowe Heritage site and is home to some rare ancient rock art. The farm is also an animal sanctuary and private game reserve with protected species such as the rhino.

However, sources close to the land wrangle say Bredenkamp, could have corrupted or intimidated authorities because of the proximity of his family to the corridors of power.

But Bredenkamp, through his legal counsel, Titan Law, insists he is on the right side of the law, should the matter spill into the courts.

The farm in dispute was gazetted for redistribution under the land reform programme in 2000, but the Bredenkamps remain unaffected.

Bredenkamp applied for an offer letter over the farm, which was granted on December 30, 2020, about eight months after issuance of the special grant to Nyamatsanga Mining.

Sources close to the squabble say the warring parties have been trying to resolve their differences through dialogue.

Efforts to get a comment from Mines and Mining Development minister Winston Chitando were fruitless at the time of going to print. Agriculture minister Anxious Masuka refused to comment on the matter referring questions to his permanent secretary John Basera.

“These are operational (and) not policy issues, so talk to Basera,” Masuka said on Wednesday.

Basera could not be reached for comment.

Bredenkamp’s lawyers confirmed an offer letter was issued for Thetford Estate.

“There is no special grant issued for the immovable property known as Thetford Estate. If there was ever a special grant issued for Thetford Estate or any portion of Thetford Estate, that special grant cannot, in our view, have been procedurally issued having due regard to the relevant provisions of the Mines and Minerals Act, as well as general government policy in relation to the issuance of special grants in areas subject to wildlife and other conservation initiatives. Thetford is essentially a private wildlife game reserve and has been, for many years,” Titan Law said.

“Additionally, Thetford is a historic site conservancy and resource for tourism as it falls under the Upper Mazowe National Monument as it contains some of the pristine rock art within the national monument. This rock art has survived between 7 000 and 13 000 years.

“We can state with absolute certainty that our client did not corrupt any land officials in respect of the allocation of the offer letter to him (and) our client has not denied any person with bona fide mineral rights, lawfully and procedurally issued, to lawfully and procedurally execute the same in accordance with the laws of Zimbabwe.

“Our client has simply asked those persons claiming to exercise those rights to show that the Mines and Minerals Act, as well as the Environmental Management Act, have been strictly complied with before any such consent is granted to enter upon Thetford Estate. This has been made clear in writing,” the lawyers said.

Bredenkamp said Thetford is a vibrant and productive agricultural and wildlife conservation enterprise that cannot be unlawfully disturbed by persons.

Nyamatsanya’s lawyer Vengai Madzima said Matutu had a special grant.

“They (Bredenkamp’s camp) should comply with the law and allow my clients access to their special grant and then query, you don’t take the law into your own hands,” Madzima said in a telephone interview.

“They can just query whatever they feel is wrong with the relevant authorities.”

 

Amplats explores PGM technology to simplify hydrogen storage and use in EV

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Anglo American Platinum is partnering with Umicore to research and develop a ground-breaking technology that has the potential to transform the way hydrogen can be stored and used to power fuel cell electric vehicles (FCEVs).

Such technology would help avoid the need for extensive new hydrogen infrastructure and refuelling networks which currently represents one of the main barriers for more widespread adoption of hydrogen in clean, electric transport.

The joint research and development programme aims to take the process through which hydrogen is chemically bonded to a liquid (known as a liquid organic hydrogen carrier or LOHC) a step further, targeting new PGMs-based catalyst technologies that can be installed directly in FCEVs and other forms of transport.

Using a LOHC allows for hydrogen to be handled and transported in a similar way to oil or gasoline, using conventional liquid transport networks such as tankers and pipelines rather than meeting the more complex requirements of compressed gas. This avoids the need for new and dedicated hydrogen infrastructure, thereby accelerating the adoption of hydrogen as a clean fuel for transport and other applications. With the additional new technology that Anglo American Platinum and Umicore are exploring, the unloading of hydrogen from the LOHC – called the dehydrogenation step – would take place directly in the vehicle at lower temperatures and pressures, providing a simpler and cheaper alternative to onboard storage of compressed hydrogen.

Benny Oeyen, Anglo American’s Executive Head of PGMs Market Development, said: “LOHC technology provides an attractive pathway to emission-free and cost-effective hydrogen-fuelled transport. Anglo American believes that the particular catalytic properties of PGMs can further enhance the process by streamlining the logistics, and offer a far simpler experience for consumers – combined with a similarly quick refuelling time and range as conventional petrol or diesel vehicles – while also reducing costs across the entire value chain.”

Lothar Mussmann, Umicore’s Senior Vice President New Business Incubation, said: “Umicore is a leading supplier of catalysts for Proton Exchange Membrane fuel cell electric vehicles. Allowing the use of hydrogen loaded LOHC to fuel mobile applications by advanced LOHC dehydrogenation catalyst technology will help to overcome existing challenges of hydrogen infrastructure and logistics and thereby foster the wider introduction of fuel cell electric vehicles.”

Natascha Viljoen, CEO of Anglo American Platinum, commented: “Anglo American Platinum was an early supporter of the global potential for a hydrogen economy, recognising its role in enabling the shift to greener energy and cleaner transport. With our platinum group metals playing a critical catalytic role in many technologies related to green hydrogen production and hydrogen fuelled transportation, we are investing in those technologies that support a long-term investment environment for hydrogen to deliver its potential.”

Umicore will conduct the research with support from Anglo American’s PGMs Market Development team and in cooperation with Prof. Peter Wasserscheid at the University of Erlangen, co-founder of Hydrogenious LOHC Technologies. Hydrogenious is a leader in the LOHC industry and a portfolio company of AP Ventures, an independent venture-capital fund founded by Anglo American and focused on the development of hydrogen production, storage, transportation and other applications.

Anglo American’s PGMs Market Development team works to develop and encourage new end-user applications for PGMs. These include cleaner and sustainable energy solutions; fuel cells to power electric vehicles; the production and transport of green hydrogen; technology for the absorption of ethylene to extend the shelf life of food and minimise food waste; and the development of anti-cancer therapies.

Presidential Amnesty released ex-con kills miner

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An ex-convicted machete gang member recently released under a presidential amnesty aimed at easing congestion to reduce the threat of COVID-19 in the country’s overcrowded jails is alleged to have killed a miner in Norton.

Anerudo Mapuranga

According to Norton Miners Chairperson Mr Privelage Moyo, the deceased Mr Wonder Sithole was attacked by a machete-wielding criminal named Muhwa who was recently released from prison through the Presidential Amnesty program.

Muhwa according to Moyo is nursing his wounds at Norton Hospital.

“Wonder passed away after being attacked by machete gangs in Norton at Samoyo mining area. Information has it that the attacker, Muhwa, was attacked by a mob and he is in hospital at Norton together with the deceased. A police report was filed,” said Moyo.

Last year the Police managed to stop the activities of gangs armed with machetes and knobkerries countrywide, targeting mines and individuals keeping large amounts of cash, through the successful launch of “Operation Chikorokoza Ngachipere” and “No to Machete-Wielding Gangs”.

Criminal activities by the marauding gangs of machete attackers have seen reports of murder, rape, assault, housebreaking and stock theft rising in 2020. Police statistics show that in the mineral-rich Midlands Province reported criminal cases rose 33 per cent in the first nine months of 2019 because of the influx of machete attackers.

Recently British Ambassador to Zimbabwe, Ms Melanie Robinson has commended the government for successfully taming machete-wielding gangs that had wreaked havoc in the country, especially in mining areas.

Mining communities around Zimbabwe were under siege from the marauding gangs that operated mainly in gold-rich districts unleashing violence on a scale never seen before.

From Mazowe in Mashonaland Central right through the Great Dyke in Midlands Province into Matabeleland South, gangs of men armed with machetes, axes, guns, and other deadly weapons had been on a warpath, committing heinous crimes such as armed robbery and murder.

High yielding small-scale gold mines, gold buyers, and stamp mills were their prime targets.

Premier receives shareholder letter from Circum Minerals

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Premier African Minerals Limited (“Premier” or the “Company”), is pleased to report that it has received a shareholder letter (“Shareholder Letter”) from the board of Circum Minerals Limited (“Circum”), in respect of which Premier holds 5,010,333 shares, providing an update in Circum’s current activities.

The full text of the Shareholder Letter to Circum shareholders is available from Premier’s website:

https://www.premierafricanminerals.com/projects/investments/circum-minerals

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018.

The person who arranged the release of this announcement on behalf of the Company was George Roach.

Premier African Minerals Limited (AIM: PREM) is a multi-commodity mining and natural resource development company focused on Southern Africa with its RHA Tungsten and Zulu Lithium projects in Zimbabwe.

The Company has a diverse portfolio of projects, which include tungsten, rare earth elements, lithium and tantalum in Zimbabwe and lithium and gold in Mozambique, encompassing brownfield projects with near-term production potential to grass-roots exploration. The Company holds 5,010,333 shares in Circum Minerals Limited, the owners of the Danakil Potash Project in Ethiopia, which has the potential to be a world class asset.

In addition, the Company holds a 19% interest in MN Holdings Limited, the operator of the Otjozondu Manganese Mining Project in Namibia.

Fidelity branches run out of cash

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Gold miners have reported that Fidelity Printers and Refiners (FPR)’s Mutare, Kadoma and Mutare branches have run out of cash.

Mining Zimbabwe reached out to Fidelity Printers General Manager Mr Fradreck Kunaka who said cash has been dispatched to the various branches across the country.

“We have dispatched cash to various branches across the country. Let me get back to you with feedback,” Kunaka said.

Fidelity Printers and Refiners is the country’s sole buyer and exporter of gold in Zimbabwe. The entity has 11 branches across the country.

More to follow…