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Fidelity official gold buying prices Tuesday 20 April 2021

Fidelity Printers and Refiners (FPR) official gold buying prices Tuesday 20 April 2021

SG 90% AND ABOVE $51.06/g
SG ABOVE 85% BUT BELOW 90% $50.20/g
SG ABOVE 80% BUT BELOW 85% $49.06/g
SG ABOVE 75% BUT BELOW 80% $48.49/g
SAMPLE BELOW 10g BUT ABOVE 5g $49.63/g
FIRE ASSAY CASH $51.34/g

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

Windfall for ex-Wenela workers

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MINE workers who were exposed to harmful substances and ended up contracting Silicosis or Tuberculosis at South African gold mines are set to receive compensation ranging from R10 000 to R500 000.

This development comes after the High Court in Johannesburg approved the settlement in the Silicosis and Tuberculosis class action reached on 26 July 2019 and came into effect on 10 December 2019 after all conditions had been fulfilled.

Dependants of mineworkers who have since passed away, a wife, children or life partner, will receive the payments.

In a statement yesterday, the Tshiamo Trust which was established to carry out the terms of the settlement said all eligible miners should come forward with their details.

Eligible claimants who were gold mineworkers between March 12, 1965 and December 10, 2019 will be compensated.

“The Tshiamiso Trust has been established to carry out the terms of the settlement and to pay monetary compensation to eligible claimants. An eligible claimant will be entitled to receive a once-off payment of between R10 000 and R250 000, depending on the nature and seriousness of the disease and harm suffered by such claimant,” read the statement.

“In some severe cases, an eligible claimant may be able to receive a larger amount of up to R500 000.”

An eligible claimant according to Tshimiso Trust is a person who is a member of companies who meets the requirements of the trust to receive monetary compensation.

“All class members can and are invited to submit a claim to the Tshiamiso Trust for monetary compensation, except for class members who opted out of the settlement. Details of how to submit a claim are provided on the trust’s website.

The full terms of the Settlement Agreement as well as the Court’s decision approving the Settlement Agreement is available on the same website,” read the same statement.

It said the eligible are persons who undertook work that exposed them to silica dust and contracted Silicosis or Tuberculosis.

“Dependants for example the wife, child or life partner of such a gold mine worker who passed away may also apply for compensation.

Claimants who live in South Africa can call the Trust’s toll-free call centre number to make an appointment at their closest lodgement office in South Africa. Those who live outside of South Africa can call the Trust’s call back number to make an appointment at a lodgement office in their country,” it said.

The Chronicle

Blanket gold production slows in Q1

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Resources group Caledonia Mining Corporation Plc says first quarter gold production at its local unit  Blanket Gold Mine came in slightly lower than same period last year due to flooding.

The quarter under review is generally synonymous with rains which result in lower production due to flooding.

During the first quarter to March 31, 2021, Blanket Mine produced 13 197 ounces of gold and management remains upbeat of meeting its production guidance of between 61 000 — 67 000 ounces for the full year.

“Production in the first quarter of 2021 was slightly below our target and below the comparable quarter in 2020 albeit at a level which allows us to maintain our 2021 production guidance of 61 000 to 67 000 ounces for the full year.

“Gold production has often been lower in the first quarter of each year and increases in the following quarters. The rainy season this year saw unprecedented rainfall causing flooding at the mine and resulted in several lost shifts during the period.

“These temporary issues have now been rectified and with the central shaft now operational, we remain on track to hit our 80 000 ounces target in 2022,” said Caledonia chief executive officer Steve Curtis.

Earlier this month, the mining firm announced the central shaft at the Gwanda-based Blanket Mine operational.

The central shaft has been a culmination of a six-year project costing about US$67 million funded through internal cashflow initiatives.

For the 2020 financial year, the Blanket Gold Mine produced 57 899 ounces, a new record for annual production.

New law would allow Uganda to take stakes in private mining

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Uganda’s cabinet has approved a draft mining law that would allow the government to own shares in private mining operations and impose steep penalties for violations in the sector, including prison terms of up to seven years.

The draft law mirrors others in the region, including in Tanzania, where authorities have sought to extract more value from natural resource wealth they see as having unfairly benefited international mining firms at the expense of locals.

The bill will be presented to parliament for debate and eventual passage into law, Sarah Opendi, junior energy and minerals minister said on Wednesday in a statement.

EARNINGS FROM GOLD EXPORTS JUMPED TO $1.8 BILLION LAST YEAR, FROM $1.2 BILLION IN THE PREVIOUS YEAR

She did not give a timeframe, but now cabinet approval has been given, the law could be sent to parliament as early as next week.

When enacted, it will replace a law that has been in place since 2003.

It will provide for “state equity participation in large, medium and small scale mining up to a maximum of 15%,” Opendi said in the statement.

Penalties set out in the draft law include fines of 1 billion shillings ($278,164.12) and custodial sentences of up to seven years for those found guilty of illegal mining and other violations.

Investors would be required to enter production sharing agreements (PSAs) with the government. Previously, companies could apply and be granted mining licences on their own, Opendi said.

President Yoweri Museveni’s government has been seeking investment in the sector to increase exploitation of resources, such as copper, iron ore, gold, cobalt and phosphates.

Earnings from gold exports jumped to $1.8 billion last year, from $1.2 billion in the previous year.

($1 = 3,595.0000 Ugandan shillings)

 

Reuters (By Elias Biryabarema; Editing by Duncan Miriri and Babrara Lewis)

Iron ore price hits 10-year high on rising steel demand

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Iron ore prices continued to climb on Friday despite concerns over environmental restrictions in China.

Tangshan, China’s top steelmaking city, said last month it will punish firms that either have not taken the steps spelled out under its emergency anti-pollution plan or have illegally discharged pollutants, following weeks of heavy smog in northern China.

According to Fastmarkets MB, Benchmark 62% Fe fines imported into Northern China (CFR Qingdao) were changing hands for $178.43 a tonne on Friday – the highest level since 2011.

GOLDMAN SACHS SEE PRICES FALLING BACK TO $110 A TONNE BY THE FOURTH QUARTER

The high-grade Brazilian index (65% Fe fines) also advanced to a record high of $211.10 a tonne.

“Steel margins in China are very attractive at the moment, so even with the restrictions in Tangshan, other producers have every incentive to try to increase operating rates,” ING head of commodities strategy Warren Patterson told the Financial Review.

“Stronger margins, along with more focus on reducing emissions, has also proved supportive for higher-grade iron ore demand. This is reflected in the quality premium, which has widened recently,” Patterson said.

“Despite talk of nationwide inspections, we believe other regions will ramp up, particularly given the spike in steel margins,” JPMorgan analyst Lyndon Fagan said.

According to IndexBox, global steel consumption is forecast to increase in 2021 by 4.1% year-on-year.

Prices have also been fueled by falling supplies from major miners.

Goldman Sachs expects the market to enter a surplus in the second half of the year on higher Brazilian exports, bank analysts wrote in a note, adding they see prices falling back to $110 a tonne by the fourth quarter and below $100 in 2022.

Mining.com

‘We are building a world-class industry’ Mines Minister

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WINSTON Chitando (WC), the Mines and Mining Development minister is at the vortex of a massive push to transform Zimbabwe’s mining industry. The strategy is to make sure the industry takes its rightful position as one of the major drivers of Zimbabwe’s economy. Since taking over the hot seat in 2018, the former Mimosa Mining Company executive chairman has had to make a few hard decisions including revamping the country’s mining laws and unveiling a strategy that will see Zimbabwe generating US$12 billion from its resources annually by 2023. The industry generates about US$2 billion currently. While doubts about his ambitious targets still linger on, the minister this week took time to share the progress that his reform agenda has so far achieved with our Business Reporter, Freeman Makopa (FM). Here is how their discussion turned out. Below are excerpts of the interview:

FM: Talk about amendments to the Mines and Minerals Act has been going on for some time. How far have you gone?

WC: There are a couple of issues in terms of the update and the first one is the amendment of the Mines and Minerals Act. The amendments are quite advanced and the draft amendments are now going through the executive process for further review. We expect that in the next couple of weeks, we should be ready to move to the next step on the Bill. The ministry, working with Attorney-General’s office has now finalised the proposed amendments which are now going through due process. We will give an update as and when we will move on to the next step.

FM: Will this be the final thing on your agenda?

 WC: In terms of the legislative agenda there are two other Bills which are due for review. These are the Gold Trade Act and the Precious Stones Act. The strategy has been that we finalise amendments to the Mines and Minerals Act first then move on to do the God Trade Act and the Precious Stones Act because the Mines and Minerals Act is really the cornerstone of the mining industry. So we want to finalise that first and the other Acts, whilst they are independent, they largely fit in the Mines and Minerals Act.

FM Take us through the benefits the Mines and Minerals Act

 WC:  The major benefits of the revised Mines and Minerals Act among other benefits is that it now has principles of administrative justice which are being aligned to the new Constitution.

It defines for the first time small-scale miners. So by being able to define small-scale miners, it enables the government to be in a position to come up with policy interventions which are geared towards small-scale miners. At the moment, in terms of the law, all miners are classified as the same. It also strengthens the ‘Use it or Lose it’ principle.

There are a number of clauses which are in there. If you recall around November last year the government came up with a principle which was termed ‘Orderly Mining’, whereby the government wants to see mining grow in a responsible manner in line with the laws of the country. So you will find that renewal of mining claims will not be automatic. It won’t be just paying; it will be a question of checking that you are compliant with the law.

FM:  The coal mining sector has been affected by many challenges. Please take us through what is happening

WC:  Zimbabwe has recorded over 25 billion tonnes of coal reserves. Coal export is an area we want to participate in.

FM Is the system of registering mines now watertight?

WC: I am pleased to say the hardware for the implementation of the Mining Cadastre System will be on sight in the next few weeks. We believe that by, latest, end of June the hardware will be on site and the implementation of the Cadastre system will start immediately, essentially by data capture, which will take place throughout the provinces and we are targeting that we have that system operational as soon as possible. I am pleased to say computerisation of the mining system is now around the corner.

 FM: What has been taking place around the Extractive Industry Transparency Initiative?

WC: Government is seized with the matter and we have the inter-ministerial committee on Mines and Finance who are looking at it, to look at the compliance of the EITI and when the time is ripe an update will be given accordingly.

On mineral leakages it is work in progress. It is an inter-ministerial intervention which includes other government departments which are seized with the matter. I think as it becomes necessary we can comment accordingly.

 

 

 

Dinde man arrested for inciting locals to resist Chinese coal exploration

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Never Tshuma from Katambe Village in Dinde has been arrested on the allegations of inciting villagers to resist the exploration of coal by Chinese company Beifer Investments, Center for Natural Resources Governance (CNRG) has said.

Tshuma is currently detained at Hwange police station.

Beifer Investments has the support of the state to operate on that site, whereas the locals feel offended by such action hence them besieging the site where Beifer is set to operate on.

“About 60 Dinde villagers have besieged the site where Beifer Investments has pitched a tent to start exploration,” mentioned CNRG Zim.

According to CNRG founding Director Farai Maguwu, the Chinese are not only are harassing locals by exploring where locals are located, but they are destroying gravesites in Dinde.

“The Chinese have started drilling at Dinde, very close to the community graveside. Why desecrate the final resting place of our dearly departed ones, all in search of ill-gotten wealth. This criminality must stop,” said Maguwu.

Prospect Resources receives funds to contribute towards the Arcadia Lithium project

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Prospect Resources has received subscriptions for approximately $41.9 million new ordinary shares at $0.155 per share to raise $6.5 million before costs (placement), to support the progress of the Arcadia Lithium project.

By Shantel Chisango

Prospect Managing Director, Sam Hosack expressed his joy with the support the company received from their largest shareholder, and he stated that the funds will be put towards the finishing of the Arcadia Lithium project.

“We are pleased to have received such strong support from our largest shareholder and also welcome a number of new domestic and international institutional investors onto the Prospect register. The funds raised will be used to complete the highly accretive acquisition of a further 17% interest in the Arcadia Lithium Project, as well as advance the development funding process following the Optimised Feasibility Study and pilot plant operation.”

He further added that there is a greater need to develop high-quality lithium projects considering that there is a critical shortage of lithium-ion battery materials.

“The need for further, high-quality lithium projects to be developed in the face of a looming critical shortage in lithium-ion battery materials is becoming increasingly evident to industry and investment markets.”

Sam Hosack further stated that Arcadia has greater chances of becoming the only deposit that operates in the lowest quartile via production of both low iron spodumene concentrate for the lithium-ion battery market.

“Arcadia is in the unique position of being the only lithium deposit that is expected to operate in the lowest cost quartile via production of both low iron spodumene concentrate for the lithium-ion battery market and high purity petalite lithium concentrate for the glass and ceramics markets,” said Hosack.

Prospect states that it recognizes the rapid transition toward global adoption of electric vehicles represents a clear opportunity to advance the availability of high-quality battery-grade lithium sources and to accelerate the Arcadia Lithium Project through to development.

The funds received are to be used towards the acquisition of Farvic’s 17% interest in the Arcadia Lithium Project, increasing Prospect’s total project interest to 87%.

They shall also contribute towards the progression of the project development funding process, including discussions with several potential strategic counterparties operating at various levels within the lithium-ion battery value chain; and general working capital to negotiate the best possible terms for the progression of the Arcadia project for the benefit of shareholders.

The Placement enables Prospect to complete the Farvic transaction, assess pilot plant results with customers, and provide potential financiers and partners with adequate time to fully assess the Optimised Feasibility Study results.

KAZSHAM mine underpaying workers

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Controversy linked Norton Mine, KAZSHAM is reportedly underpaying its workers with the lowest-paid getting RTGS equivalent to US$50 (RTGS5000) falling short of National Employment Council (NEC) minimum wage of RTGS$22 000.

Rudairo Mapuranga

The mineworkers who spoke to Mining Zimbabwe also complained that despite the company underpaying them, it also delays in payment going for three months without any remuneration.

“They want us to be here for over 8 hours a day working flat out but when it comes to payment, they avoid us or even harass us for asking for payment,” one of the workers said.

When approached by Mining Zimbabwe for a comment, one of the Managing Directors of the mine Tanaka Shamu son to one of the directors of the mine William Shamu said he was not aware that his company was underpaying workers.

Tanaka Shamu also said that he was not aware that his workers have not been paid their salaries for three months.

When asked by Mining Zimbabwe on who to direct inquiries to since he seemed not to have answers, Tanaka maintained he was the best person to talk to.

Recently mine workers under Zimbabwe Diamond and Allied Minerals Workers Union (ZDAMWU) rejected a 22 percent wage hike awarded to them by employers arguing this was a pittance considering the country’s poverty datum line now averaging $40 000.

According to ZDAMWU General Secretary Justice Chinhema, the 22,2 percent translating to RTGS$22 000 minimum wage agreed by the NEC was nothing short of an insult to the suffering mine workers and needed to be reviewed to at least RTGS 40 000.

KAZSHAM was temporarily shut down by authorities in February this year after allegations of human rights abuse at the mine and lack of basic requirements like toilets. The mine has since resumed operations but is yet to build a single toilet for the artisanal miners who number up to 200. There were allegations that over 99 percent of them are working without PPE.

 

Gold deliveries increase 54% in March

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Gold deliveries to the country’s sole gold buyer and exporter Fidelity Printers and Refiners have risen by 54.57 percent in March to 1.8 tonnes compared to 1.117 tonnes delivered in February.

Rudairo Mapuranga

Deliveries during the first quarter of 2021 ended 31 March, however, declined by 30.448 percent to 3.98 tonnes from the 5.72 tonnes achieved in the same period last year.

Gold deliveries to Fidelity in January and February have been extremely low prompting experts to forecast that gold deliveries are going to reach the all-time low in 2021 since 2016.

The rapid decline in deliveries has been blamed on excessive rains the country received this year which made many small-scale miners down tools due to rising water tables resulting in high production costs.

Zimbabwe earns much of its foreign currency from mining, with gold being one of the major contributors.

However, the sector is facing a myriad of challenges including delays in payment for deliveries, power cuts, and smuggling of the mineral to countries such as South Africa and the United Arab Emirates.

Authorities estimate that between 30 and 35 tonnes of the yellow precious metal is being smuggled annually the reason why gold buyers affiliated to Fidelity and mobilized to buy gold from all the artisanal miners in the country to deliver to the sole gold buyer and exporter.

Through the Zimbabwe Gold Buyers Association which was formed last month to curb smuggling and encourage gold deliveries, deliveries are expected to up by 60 percent by June. The association is led by popular gold buyer Pedzisai “Scott” Sakupwanya who delivered 980 kgs in two months.

The Government has of late been engaging mining firms with a view to forge a common understanding and ensure the sector makes optimal contributions to medium-term national economic growth prospects.

In this context, the Government and mining houses have engaged on issues to do with value addition, beneficiation, formalisation of informal gold mining, long-term capitalisation of mines as well maintaining the viability of gold mining.