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Dinson Colliery commences coke production

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DINSON Colliery Company has started heating up its furnace in preparation for the start of metallurgical coke production next month at the US$30 million plant.

A subsidiary of Chinese-owned steelmaker, Tsingshan Holding Group, Dinson Colliery Company is one of the nine new coal mines and coking plants that were visited by President Mnangagwa in July last year and is set to become the largest and most advanced coke oven in Zimbabwe.

The country expects to be a net exporter of power by 2023 through contribution of coal mining, coke production and energy generation capital projects mainly situated in Hwange, Matabeleland North.

Construction of plants at Dinson Colliery Company is in two phases and about US$30 million has been invested in the first phase with the same amount set aside for Phase Two.

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

A visit by a news crew to the plant located on the foot of a nearby plateau between Dinde and Lukosi about 20km outside Hwange town on Friday, showed that significant progress had been made as workmen were making final touches on the plant.

Besides its core coke making business, Dinson Colliery has added a spectacular sight as its modern administration buildings and plant suddenly crop up from within huts to welcome travellers into Hwange.

In an interview, the company’s administration manager, Mr Steven Xing, said the first phase will see 200 000 tonnes of coke being produced per year, with production sent to double after completion of the second phase next year.

“Our plant started July 2019 and we are almost done as we have already started to hit our furnace. Our plan is that by end of next month we start to produce coke and our capacity will be 200 000 tonnes for phase one,” said Mr Xing.

He said production would rise to 500 000 tonnes per year after completion of Phase Two. The company’s core product is coke while tar and other chemicals will also be produced in due course.

Xing said Dinson Colliery will be getting its supplies locally in Hwange from Zambezi Gas, Hwange Colliery and some Chinese companies. He said part of products will be sold to sister company Afrochine in Selous with some being exported outside the country.

Dinson Colliery employs about 50 Chinese experts and 230 locals in various departments. On Friday the company partnered Green Shango Environment Trust to plant citrus and exotic trees within its premises as part of its corporate social responsibility and commitment to reclaiming land to protect the environment form degradation.

 

Business Weekly

HWANGE Colliery to revive coke oven battery, gas plant

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HWANGE Colliery Company Limited (HCCL) says plans are underway to refurbish and re-commission its defunct coke oven battery and gas plant as part of the company’s turnaround strategy.

The giant colliery hopes to consolidate its recovery mode through production of high value products with coking coal and gas being key for top-end domestic market and exportation to lucrative regional and international clients.

The collapse of Hwange Colliery’s coke battery in recent years had seen several new players invading the field, which means the company will now have to compete for supplies to key markets.

To buttress the rebound mode, which is evidenced by steady improvement in monthly output in 2020, HCCL has invited tenders from interested bidders to undertake the refurbishment of the coke battery and gas plant.

“As part of its turnaround plan, Hwange Colliery Company Limited intends to: 1. refurbish and commission the mothballed coke oven battery and coke oven gas plant and restore the coke oven gas supply pipe to Hwange Power Station, 2. Build a new recovery type coke oven battery on a design, procure, construct and commission basis,” said the firm in a public tender invitation notice.

“Hwange Colliery Company Limited, therefore, invites separate bids from capable bidders in respect of items 1 and 2 above.”

The company has said interested bidders should demonstrate financial and technical capabilities and expertise to provide the required services relating to construction of recovery type of coke oven batteries or similar plant and equipment.

Located in Matabeleland North province, HCCL is a public listed company operating in the business of exploring, mining, processing and marketing of coal, coke and related products.

Due to its strategic importance in the energy and power development sector, the Government rescued the firm from collapse by putting it under temporary administration in 2018. Prior to this, HCCL was in a state of collapse as creditors were swooping on it through a string of litigations. Workers had also gone for several months without pay.

During a visit to the mine by President Mnangagwa last year in July, acting managing director, Dr Charles Zinyemba, paid tribute to the Government for rescuing this company by putting it under administration.

With the interventions being implemented under the guidance of the Government, Dr Zinyemba has said production was expected to rise above 225 000 tonnes per month with plans to ramp it up even further.

HCCL has three mines, one underground mine and two open cast mines. These are underground Three Main Mine and two open cast mines, JKL and Chaba.

The three coal mine reserves are projected to last about 40 years at current mining rate, which could be reduced to 20 years should plans to increase underground mining sections to three succeed.

The coal sector is critical in achieving the US$12 billion mining sector milestone by 2023.

Business Weekly

Man Kills Brother Over 0.02 Grammes Of Gold

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A NYANGA man reportedly assaulted his brother to death over 0.02 grammes of gold which the siblings had panned in neighbouring Mozambique.

Police have confirmed the incident.

Manicaland provincial deputy police spokesperson Inspector Luxson Chananda said last week, Samuel Sokiri (27), Simudzai Sokiri (31), Freddy Mukonowamwere and Alois Nyamatanga were drinking opaque beer at Chimusasa Business Centre.

They later decided to go home and retire for the night.

However, on their way home, the suspect, Samuel Sokiri had a dispute with his brother Simudzai over 0.02 grammes of gold they had panned in Nyamutombwe area, Mozambique.

The two exchanged harsh words over the issue until the argument degenerated into a fist fight.

Mukonowamwere tried to restrain them but failed.

“The suspect started assaulting Simudzai with fists and he fell on the ground and became unconscious,” said Chananda.

Samuel then left the scene together with Mukonowamwere and Nyamatanga leaving the now deceased lying on the ground unconscious and proceeded home.

“The deceased was spotted by Chimusasa Kembo (67) who was coming from Chimusasa Business Centre. The deceased had some head and face injuries,” Chananda added.

Kembo rushed to Samuel’s home and informed him Samuel and his wife that Simudzai was in great pain.

Samuel’s wife Nyarai Nyamuwe rushed home and managed to assist Simudzai to reach his home.

However, Simudzai succumbed to the injuries the following day and Kembo reported the matter at Ruwangwe Police station who attended the scene leading to the arrest of Samuel.

Chananda urged members of the public to seek counselling whenever they found themselves in disputes with other parties.

“People should solve their problems amicably rather than taking law into their own hands,” he said.

NewZimbabwe

Fidelity official gold buying prices Tuesday 27 April 2021

Fidelity Printers and Refiners (FPR) official gold buying prices Tuesday 27 April 2021

SG 90% AND ABOVE $51 027.93/kg
SG ABOVE 85% BUT BELOW 90% $50 172.71/kg
SG ABOVE 80% BUT BELOW 85% $49 032.42/kg
SG ABOVE 75% BUT BELOW 80% $48 462.28/kg
SAMPLE BELOW 10g BUT ABOVE 5g  $49 602.57/kg
FIRE ASSAY CASH $51 313.00/kg

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

Contact FPR

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

Govt must not worship capital at the expense of human rights

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THE public spat between government and villagers in the Dinde area of Hwange over the disputed coal-mining project run by Chinese miners makes sad reading and once again shows ZANU PF’s tendency to ride roughshod over the rights of citizens it purports to safeguard.

The project, run by Chinese firm Beifa Investments (Pvt) Ltd, has been failing to take off the ground since 2019 owing to resistance from villagers who fear the coal-mining venture would eventually displace them from their ancestral land.

But Matabeleland North Provincial Affairs minister Richard Moyo had the guts to tell the jittery villagers that the project would go ahead with or without their consent, saying those who dare resist would face the full wrath of the law. His argument was that the project is of national importance as it seeks to generate employment as well as electricity for the country.

The Zanu PF honcho added that government would not hesitate to deploy armed police to “protect” the investor.  But the question is: if the villagers don’t see value in the project why should government bureaucrats foist it down their throats?

The development comes shortly after attempts by government to evict more than 12 000 families from Chilonga area in  Chiredzi  to make way  for a lucerne farming project run by a private dairy company faced similar resistance.  Even though the villagers have resisted the move, it appears  the second republic is determined to forge ahead with the project as it seemingly respects capital more than citizens’ rights.

While we have no problem with investment coming into the country especially at a time when the country is facing an economic crisis characterised by skyrocketing cost of living, three digit inflation, massive retrenchments and industrial capacity utilisation of less than 50%. However, investments must not come at the expense of the livelihoods of the same communities they are supposed to serve.

The crass and heartless treatment of the villagers  by government when investors move into an area is self-defeating as the very people who are supposed to be the major beneficiaries of the investment end up being the major victims of the same.

Reports of  graves being desecrated in the name of investment as well as attempts to  have investors carry out mining activities in wildlife conservancies smacks of desperation by a cash-strapped regime.

As the Centre for Natural Resources Governance director Farai Maguwu observed: “Not a single community affected by mining is smiling in Zimbabwe, but the rich and powerful are ready even to spill blood to impose organised criminal gangs on communities. Any project or investor that is imposed on a community will not benefit that community. It is organised crime and will benefit criminal networks. Dinde is a replay of Marange (diamond fields).”

 

NewsDay

Mine workers demand US$600 living wage

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THE Zimbabwe Diamond Allied and Minerals Workers Union (ZDAMWU) has demanded wage reviews between US$400 and US$600 for mine workers and expressed concern over the delay by employers to pay salary arrears at a time when second quarter wage negotiations should have been concluded.

ZDAMWU secretary-general Justice Chinhema said the second-quarter wage negotiations were underway at a time when most mines had failed to pay first-quarter salary arrears.

“The reason for this travesty of justice on mine workers is because the first negotiations were concluded late in March when the payroll had already been processed. It is disturbing to note that some mines are already applying for exemptions not to backdate the salaries,” Chinhema said.

He said some mine workers’ unions were also shortchanging the workers in their negotiations on wage increases at the National Employment Council.

“It is a known fact that workers are expecting a second-quarter increase effective on April 1, but hope is fast fading for mine workers, considering that April is coming to an end and there has been no sitting. Chances of workers receiving their back pays are fast fading.

“Our resolution as ZDAMWU is that as long as the mining sector is still paying these slave wages, workers will not rest. As mine worker representatives we are not going to tire in pushing for a living wage in the range of US$400 to US$600.

“In addition, mine workers are also so disappointed by the failure to consider the COVID-19 allowances where the sector was the only industry that remained on the ground and sustained other sectors during the lockdowns,” he said. Chinhema said his union was encouraging workers’ committees to bargain at works council level as waiting for the NEC was not helping.

 

NewsDay

Miners seek gold under the desert sands after Egypt changes rules

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Mining companies awarded blocks in Egypt’s Eastern Desert are set to start exploring for gold under a legislative overhaul that seeks eventually to unlock vast untapped mineral resources.

Despite plentiful reserves and a rich mining history that gave rise to elaborate Pharaonic gold jewellery, Egypt has just one commercial gold mine in operation. Foreign investment in oil and gas has grown, but mining has languished.
Now, the country is banking on high gold prices and amended mining laws that scrap red tape and a profit-sharing rule, unpopular in the industry, to lure interest.

One year after launching its first bid round under the new rules, it has so far clinched five gold exploration contracts in a first bidding round and kept the tendering system rolling as it tries to build momentum.

The government is looking to attract $1 billion in annual investments in mining, a target industry sources say could be within reach.

“Success is ultimately going to be measured by how many mines are going to be discovered and advanced to production,” said Patrick Barnes, Head of Metals & Mining Consulting EMEARC at Wood Mackenzie, which advised Egypt’s government on its mining law reforms.

“Early indicators show us that this bid round was much better than the ones held previously.”

“Healthy mix”

In its initial tender, Egypt in November awarded 82 exploration blocks to what metals analysts say is a healthy mix of 11 companies, ranging from junior explorers to industry giants such as Barrick Gold.

The blocks on offer are in the Arabian-Nubian shield geological formation, which flanks the Red Sea and is believed to be one of the most mineral rich areas in the world.

Egypt’s mining drive is still at an early stage.

UK-based Altus Strategies told Reuters it was looking to build up its technical team and conduct remote sensing and mapping operations on the 1,500 square kilometres of land it has been awarded before starting exploration.

It expects to invest several million dollars in the short term but that could rise above $100-$200 million if a economic discovery is made.

COUNTRY IS BANKING ON HIGH GOLD PRICES AND AMENDED MINING LAWS THAT SCRAP RED TAPE AND A PROFIT-SHARING RULE TO LURE INTEREST

A spokeswoman for Canada-based B2Gold, which also won concessions, said the company was looking forward to starting exploration soon “given the relative under-investment in modern exploration, and therefore untapped potential in the historically prospective Arabian-Nubian Shield”.

Mining firms welcomed the elimination of a requirement to form joint ventures with the Egyptian government, and the capping of state royalties at 20%.

However, the retention of a tendering process for exploration blocks limits the chances of any gold boom, said Sami El Raghy, Chairman of Australia-based Nordana Pty Ltd.

“No other successful mining countries use this process. They all have a clear transparent mining laws stipulating the qualification, obligations and the rights of investors. (They) work on the principle first come, first served,” said El Raghy, who was also a founder of Egypt’s first and only commercial gold mine, Sukari.

The Ministry of Petroleum and Mineral Resources declined to comment.

Gold price

On average, a mining project goes from discovery to production in 10-15 years. While gold prices have eased after reaching a record in 2020, economists expect they will remain high by historical standards over coming years.

“If you get to a point where several discoveries are made, Egypt could be one of the largest gold producers in Africa… It had top-tier potential,” said Steven Poulton, CEO of Altus Strategies.

Environmental campaigners, however, say there is no justification for gold mining. It generates emissions, can add to water-stress and in contrast to copper and battery minerals is not in demand from technologies that can bring about a low carbon economy.

The government has said it is open to other minerals, but gold is the focus for now.

“Gold is absolutely the best thing for them to start with, because there’s a known amount of it,” said Wood Mackenzie’s Barnes.

“Egypt has immense potential for mining copper and gold and other commodities. The biggest concern in the industry is lack of supply for copper, places like Egypt which are considered underexplored and high potential are going to get a lot of attention if they can maintain investment conditions,” he added.

Reuters (By Nadine Awadalla; Editing by Aidan Lewis and Barbara Lewis)

Miners, millers seek tight security

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GOLD miners and millers have pleaded for tight security due to the increased number of robberies in mining areas.

Miners have said they feel unsafe when delivering gold due to the rising numbers of armed robberies, hence they need to be escorted with tight security. Speaking at the Zimbabwe Miners Federation (ZMF) gold millers meeting on Friday in Bulawayo, Mthandazo Women Mine in Gwanda owner Mrs Sithembiso Ndlovu said women in mining felt they were the most targeted group when it came to robberies.

“We are the most targeted group when it comes to robbery, it seems like the thieves have observed how we are operating especially when we go to carbon processors where we exchange our gold for money,” said Mrs Ndlovu.

ZMF co-vice-president Mr Mafura Sithole said engaging the police while transporting gold from one place to the other was the best way to curb cases of robberies in the sector.

“There is a need for police escort when one is transporting gold whether processed or not so as to make sure that one is safe. Also one needs to go to the police station to ask for police escort during and after carbon processing so as to be safe.

“Recently in Kwekwe a miner was robbed of US$45 000 just after finishing carbon processing due to lack of tight security hence I advice you to go to the police and ask for protection so that you are escorted during and after processing the gold,” he said.

Mr Sithole also advised miners and millers to work with ZMF so as to improve the mining industry and contribute to the US$12 billion mining sector by 2030. A miner from Munam Mine in Esigodini, Mr Amen Gumbi also noted that miners were being “harassed” by the Environmental Management Agency (Ema) officials.

“Ema wants foreign currency and most of the time they do not have change, so they must also accept bond notes and swipe like other companies for easy payments,” said Mr Gumbi.

 

The Sunday News

Lithium pilot project 70 percent complete

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AUSTRALIA-LISTED mining concern, Prospect Resources, says construction of the Arcadia lithium pilot plant is now 70 percent complete with the company expecting to start shipping high grade petalite to Europe by end of June.

The mining firm whose Arcadia project is situated a few kilometres East of Harare, produces lithium that goes into both technical (glass and ceramics) and chemical (vehicle and electronic batteries) manufacturing.

In a latest statement, Prospect said it remains on schedule to achieve the first shipment of high purity petalite by end of the second quarter.

“The company is pleased to advise that approximately 70 percent of the EPC (Engineering, Procurement and Construction) scope for its high purity petalite pilot plant is complete.

“The company remains on schedule to achieve the first shipment of high purity petalite by end second quarter of 2021. Importantly, the pilot plant remains on schedule and on budget,” it said.

Recently, Prospect announced that it was developing a smaller commercial scale pilot plant for only one of two locally available lithium varieties as the route is a lower risk pathway to near term production.

On progress regarding the development of the Arcadia pilot plant, the firm’s managing director, Mr Sam Hosack, was quoted as saying:

“The company’s project team have now delivered approximately 70 percent of the works required to commence production at our pilot plant.

“It’s pleasing to report development of the pilot plant remains on time and on budget, with Prospect on target to shipping purity petalite by the end of June 2021.

Lithium mining was designated as an integral part of the Government’s US$12 billion mining industry target by year 2023 and is a strategic subsector expected to earn US$500 million annually.

Prospect has announced that it would be producing petalite, which is technical grade and spodumene, (chemical) grade lithium samples.

The company has decided to focus the pilot plant on producing only technical grade petalite samples using dense media separation (DMS).

The latest alternative is in accordance with Arcadia’s existing feasibility Study flowsheet rather than producing both petalite and spodumene samples using a flotation flow sheet.

The DMS feasibility study flowsheet has proved to have greater technical certainty than the flotation flowsheet.

Prospect has already signed offtake agreements with buyers in Europe and other markets for its lithium output but must submit samples to determine whether its produce meets technical specifications. To qualify petalite with potential customers the company must provide samples of up to 100 tonnes per customer.

It is hoped that the production and export of petalite produced by the pilot plant will test the readiness of the regulatory and fiscal regime (including the Special Economic Zone) that will apply to the commercial operation.

The operation of the pilot plant will allow for the accumulation of knowledge during design, mitigating the scaling issues that peer lithium producers have experienced on account of a too-rapid growth in supply.

 

The Chronicle

Debswana to plow US$6bn on giant underground diamond mine

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Debswana Diamond will spend 65 billion pula (US$6 billion) to build the world’s largest underground diamond mine at Botswana’s Jwaneng, which is already the richest mine by value for the previous stones.

The underground mine will have more than 360 kilometers (224 miles) of tunnel development and will hit full production by 2034, Debswana’s head of transformation and innovation, Thabo Balopi, said at a briefing in the capital, Gaborone, on Friday.

The underground mine will have a capacity of as much as nine million carats per year, extending Jwaneng’s lifespan by 20 years, according to Balopi. 

An early access decline will be in place by 2023, he said.

“We are still doing the studies toward transforming to an underground producer, which is a very different environment, with different capabilities and mindset,” he said.

‘Huge Undertaking’

Going underground will be a “hurdle” for the group, which has operated exclusively as an open-pit miner since its establishment in the 1970s, according to acting managing director Lynette Armstrong.

“It’s a huge undertaking,” she said during the briefing.

The board of Debswana – a 50/50 joint venture between De Beers and Botswana — is yet to make a final decision on how to finance the project, according to head of technical services Len Dimbungu.

The last expansion at Jwaneng had a 24 billion pula budget and transformed the mine into one of the world’s largest open-pit diamond operations.

Diamond mining has traditionally anchored the Southern African nation’s economy, accounting for the bulk of budget revenue and foreign-exchange receipts.

Jwaneng, in operation since 1982, has been expanded several times as its resources declined over the years. 

The mine is critical to De Beers, and produced 7,5 million carats of the group’s 2020 output of 25,1 million carats. Jwaneng produced 3,2 million carats in the first quarter, or 41 percent of De Beers’ total production. – Bloomberg