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Hwange Colliery profit dips

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Hwange Colliery profit dips

Coal miner, Hwange Colliery Company  Limited (HCCL)’s profit plunged 78% to ZWL$1.5bn in the 12 months to December 31,2020 from ZWL$6.9bn reported in the previous year on reduced gain on net monetary position despite an increase in volumes.

Gain on net monetary position was ZWL$1.89bn in the year from ZWL$10.14bn in 2019.

Volumes for HCCL, which is under administration, increased 13% to ZWL$4.5bn from ZWL$4bn due to a combination of  increase in high value coking coal sales and regular product price adjustments in line with market value.

The company’s administrator, Dale Sibanda said  there were plans to boost coking coal output by year-end.

Acting managing director, Charles Zinyemba said  HCCL was developing a second underground mining section.

“The current underground mining operations are producing an average of 30 000 tonnes per month. Plans are underway to develop a second underground mining section in the medium term, so that coking coal production will double when the new section is fully operational,” Zinyemba said.

“In addition, opencast operations at the JKL pit will continue in order to increase high value coking coal in the product mix. The current JKL operation is producing an average of 50 000 tonnes per month and the target is to increase production to 100 000 tonnes per month by the end of 2021.”

He said HCC aims to grow its market share of coking coal sales in neighbouring countries, as its coking coal and coke meet quality specifications in the ferro-chrome industries and smelters.

“The company will continue in 2021 with the momentum it gathered at the end of 2020 on exports, after it was negatively affected by Covid 19 during the first half of 2020,” Zinyemba said.

HCCL’s coking coal sales increased by 6.5% to 238 112 tonnes in 2020 from 223 662 tonnes in 2019. However, the coking coal sales volumes were however limited by washing capacity constraints as the plant was antiquated and needed retooling. The plant was completed and was commissioned in April 2021.

Total coal mined by opencast operations was 1104 036 tonnes, reflecting a 46% increase in production from the previous year.

Total coal from HCCL’s JKL pit was 353 143 tonnes, a 21% decrease in production from 2019, while at Chaba Mine, the contractor Zhong Jian mined a total of 750,893 tonnes, a 145% increase in production from 2019 done by the previous contractor, Mota Engil. However, heavy rains towards the end of the year flooded the pits and affected production from December into 2021.

A total of 658,031 tonnes of coal was delivered to Hwange Power Station during the course of the year, which was 18% increase from previous year. Main Underground Mine coal production was 49% below the previous year as coal production during the year was 136,137t, against a budget of 360,000t.

This was mainly because the Underground was affected for some months by a major breakdown on the Continuous miner which had to be taken out of the mine for major repairs.  A new sandvik LHD was acquired to complement production.

In metallurgical operations a total of 642 197 tons of raw coal was processed at both Chaba and No 2 plants against a target of 1 410 396 tons which is 46% attainment of the target. In the outlook, HCCL eyes an increase in production and profits.

Zinyemba  said the company will be focused on raising a significant amount of capital so that they can achieve the desired results.

 

Business Times

Bigwigs eye Zanu-PF ex-youth leader mining concession

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Bigwigs eye Zanu-PF ex-youth leader mining concession

Former Zanu-PF youth leader, Lewis Matutu, could lose his mining concession in Mashonaland Central Province, amid revelations that party bigwigs are eyeing the claims.

It is understood that the special mining grant awarded to Matutu’s investment vehicle, Nyamatsanga Mining, to mine at the heart of the late business tycoon John Bredenkamp’s 1 500 hectares Thetford Estate in Mazowe, is set to expire next year.

The special mining grant was awarded last year.

Well-placed sources told Business Times that bigwigs in Zanu-PF and government are angling to take over the mining concession

The bigwigs are said to be capitalising on the fact that Matutu is no longer as powerful as he was when he was the Zanu-PF’s deputy secretary for the youth league.

Tsenengamu, alongside Lewis Matutu and Pupurai Togarepi, were relieved of their duties as leaders of the youth league. Matutu and Tsenengamu were suspended for a year while Togarepi remained as a Central Committee member.

Matutu was last year suspended from holding a party position alongside Godfrey Tsenengamu after the duo held a press conference where they accused some businesspeople of allegedly being part of a cartel that was derailing the economy. The duo was also ordered to attend the Herbert Chitepo School of Ideology. Tsenengamu refused and was expelled from the party. Then youth secretary Pupurai Togarepi lost the politburo post but retained the Central Committee position.

Matutu’s consortium, through its lawyers Vengai Madzima of Madzima, Chidyausiku and Musera Legal practitioners, has since written to the Mine and Mining Development Minister, Winston Chitando expressing its concerns.

“Matutu is no longer as powerful as he used to be politically and there are some political bigwigs who have now expressed serious interest in the concession. Now it is no longer clear as to who is backing those bigwigs,” one source told Business Times.

Matutu could not be reached for comment as his mobile phone number went unanswered.

Thetford farm has in the past year been subject to contestation.

Following the death of Bredenkamp, his son Gavin was allocated the farm. Ever since, there has been a serious fight for control of the concession between Matutu and Gavin.

Recently, Bredenkemp’s widow Jennifer filed an urgent chamber application at the High Court to stop her son Gavin from possessing the family farm.

The case was filed under Case Number HC 132/21. Jennifer and five other applicants are being represented by Atherstone and Cook while Gavin Bredenkamp is represented by Titan Law.

The application is seeking protection of Jennifer and other applicants’ residence and usage of Thetford Farm by interdicting Gavin and the ministry of lands from interfering with that residence usage, rights and freedoms until a final decision relating to the rights of the parties are met by the Court.

 

Business Times

Oil firms in murky deals

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Oil firms in murky deals

At least 40 fuel companies are being probed by the Zimbabwe Anti-Corruption Commission (ZACC) for allegedly circumventing customs regulations by using fake Bills of Entry to smuggle fuel into the country, it has been learnt.

The investigation also involves President Emmerson Mnangagwa’s Special Anti-Corruption Unit.

ZACC chairperson Justice Loice-Matanda Moyo said a probe was underway.

“The investigation is almost complete and we have since started the process of extracting some of the evidence and then arrests will follow,” Justice Matanda-Moyo told Business Times this week.

Multiple sources told Business Times this week that the investigations have unmasked a cartel involving some of the big names in the local fuel industry that have been smuggling the commodity from South Africa using fake bills of entry especially at the Beitbridge Border Post

The cartel also involves officials from the country’s tax collector, the Zimbabwe Revenue Authority (Zimra).

The cartel, sources said, was using Bills of Entry for some goods purported to belong to some of the platinum miners in Zimbabwe. The sources said the cartel, which has Zimra officials, is pretending to be importing mining equipment which is exempted from paying duties at the border, yet it would be fuel which would be smuggled into the country.

Instead of selling the fuel in Zimbabwe, well-placed sources told Business Times that the fuel dealers would export it into the region especially to Zambia and the Democratic Republic of Congo.

“The fuel companies have been using Bills of Entry for things like large mining equipment for some platinum mining companies in the country to clear the importation of their fuel into Zimbabwe. This has been a well-orchestrated scam involving Zimra,” one source told Business Times.

It is also understood that some fuel companies were also abusing their import licences.

They are said to be importing, especially from South Africa, but the commodity does not reach its intended destination.

Instead, the companies end up selling the same fuel in South Africa.

The National Oil Company of Zimbabwe has since instituted investigation into the matter.

Last month, Zimra intercepted three transit fuel trucks in Chirundu for allegedly smuggling fuel into the country under the guise of transporting it to Zambia prejudicing Zimbabwe of potential revenues. Zimra said during the period July 17 to 23, three tankers that had declared fuel at Forbes Border Post en route to Zambia were intercepted at Chirundu One Stop Border Post loaded with water instead of fuel as per the declarations made at Forbes Border Post.

The tankers had declared 44 924 litres of diesel, 39 932 litres of diesel and 45 800 litres of petrol respectively destined for Zambia. After physical inspection, it was discovered that the tankers were transporting water.

Two drivers of the tankers are out on ZWL$30,000 bail following their arrest. The duo will be back in court on August 24.

Transit shipment of fuel occurs when transporters ship fuel from outside Zimbabwe, which passes through the country destined for another country. Since this fuel is not for local consumption, no duty is paid on importation.

The fuel trucks are sealed at the port of entry and the seals are removed at the exit point after the acquittal process.

Sealed fuel trucks that transit through Zimbabwe, are monitored by an Electronic Cargo Tracking System operated by Zimra’s Customs and Excise Division.

The trucks use dedicated routes and any departure from these routes attracts a fine of US$2 000. Removal of seals is a serious offence which also attracts a fine.

 

 

 

 

 

 

 

 

 

 

Business Times

6k diamond carats siphoned to Angola/Hong Kong in one month under illicit trade

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6k diamond carats siphoned to Angola/Hong Kong in one month under illicit trade

AT LEAST 36 000 carats of diamonds are alleged to have been shipped to Angola between 4 April and 16 May in 2013 under illicit dealings.

An internal document from the CIO Director General’s office, “‘Ref/23/13/1432’ dated 23 May 2013, shows that a total of 16 000 carats were shipped out of Zimbabwe to Angola and Hong Kong between 04 April 2013 and 10 May 2013 and a total US$58 million was realized from the illicit sale of the gems,”

“A further 20 000 carats were shipped out of Zimbabwe to Angola between 11 and 16 May 2013 for an undisclosed fee,” revealed a research document published by Centre for Natural Resource Governance (CNRG).

The same internal CIO document clearly states that the money raised was for “Special Interests Projects” (elections) and part of the shipment was taken to “Number 88 Queensway, Hong Kong, “on behalf of the Special Interests Projects” by “Air Vice Marshal H. Muchena” together with “retired Director, Counter Intelligence, Sydney Nyanungo.”

‘According to the JOC internal document referred to earlier, the operation led by Retired Air Marshal Muchena and Retired Director Nyanungo was ‘funded to the tune of US$800 million from Mbada Diamonds and Anjin (Pvt) Ltd’.

A Joint Operation Command (JOC) “Election Brief Meeting” report dated 3 June 2013, reference “JOC/ RG/SS”, reveals that part of the “USD3 billion” budget drawn by Nikuv International Projects to finance the 2013 elections, “US$800 million came from Mbada Diamonds and Anjin (Pvt) Ltd.”

The CNRG research document also reveal that another report from the “CIO Director General’s Office reveals that the “2013 elections were also funded through shady sales of Marange diamonds to mainly ‘Mr Sam Pa’ and ‘China-Sonangol.’ “

A ‘loan’ from a company called Lefever Finance Limited (BVi) which had a joint venture operation with ZMDC called Todal Mining (Pvt) Limited which owned Bokai mine is reported to be part of the funds used to finance the 2013 elections.

Lefever Finance Limited had 60 percent shares in Todal Mining (Pvt) Limited while Zimbabwe Mining Development Corporation (ZMDC) owned the other 40 percent.

Informants’ privy to the deal alleges “the Bokai mine (Todal Mining (Pvt) Limited) deal point out to the fact that, while the mine was ‘sold’ for US$175 million to the Central African Mining and Exploration Company (CAMEC) through an intricate web of shelf companies registered in the British Virgin Islands (BVi), ZMDC benefitted a quick fire of US$100 million from the sale,”

“The same source revealed that Billy Rautenbach, through Meryweather Investments Limited (BVi), got US$75 million from CAMEC in addition to coking coal mining rights in the Hwange Western Areas that he was given by the government of Zimbabwe for arranging the deal.”

 

NEWS (Mining Index)

Stryker arms and ammunition

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Stryker arms and ammunition

Stryker arms and ammunition is Zimbabwe’s premium weapons dealership. Our main focus has always been on import and distribution to sub-dealers in and around Zimbabwe. However, with the surge in violent and armed crime around the country, we have set up different offerings for different industries. As all our products and platforms are industry-specific, we provide tailored solutions specific to each of our client’s needs and requirements. We pride ourselves on offering the highest quality of service to every client and tailored solutions to fit their budget, whilst maintaining the strictest confidentiality and guaranteed client satisfaction in all that we do.

Industries we serve:

  • Security Services
  • Mining Industry
  • Anti-poaching and Conservation
  • VIP protection services
  • Banks & Bureaus
  • Home defence
  • Competition shooting
  • Hunting

Mining Industry

Zimbabwe has some of the greatest mineral deposits in the world. Many mining ventures are often underfunded or poorly managed when it comes to the security procedures of the mine, thus we have found many mines are losing revenue through internal theft as well as external security threats. Often mines are located in remote areas with little or no access to adequate security services or police infrastructure. Mines tend to be prone to unwanted trespassing and often internal security is undertrained and does not have access to adequate resources.

With the surge in organised crime, we have found that security companies and internal security operating within the mining sector are ill-equipped and inadequately trained. The threats we are facing in today society has never been seen before in Zimbabwe at this level of intensity and armed gangs are reportedly at an all-time high. Mining is not a one size fits all solution therefore we tailor security procedures and systems according to clients budgets. We provide all clients with a risk assessment and solutions to allow them to scale up security in stages in line with the growth of the mine.

The operation and security of a mine requires an often ever-evolving approach to maintain standards, adapt to changes, avoid predictability and keep pace with technological advancements. Numerous factors expose a mine to significant risks.

The remoteness of the mine’s location

Limited local infrastructure and geopolitical instability increase the susceptibility to malicious attacks. These risks are magnified by the scale of an operation. Any security breach has the potential to endanger staff, damage the local environment and disrupt production.

While the provision of security involves carefully designed systems, processes and technology. It is primarily about people. An experienced well-trained security team can assist in the maintenance of a safety culture, can reduce shrinkage and expenditure due to theft by ensuring only authorised personnel can enter a site. Any successful security plan for a mining environment must incorporate a comprehensive site-security training program.

A training program must be tailored to the unique and specific threats and vulnerabilities faced by each location. A one-size-fits-all approach (as used by most security companies) may leave certain areas of a site or security system vulnerable to exploitation by staff, armed gangs and syndicates.

Through our broad-based products and service offering, we offer the following solutions to the risks and threats that mines face daily often leaving them vulnerable:

 

  1. SITE INSPECTION (RISK ASSESSMENT REPORT)

The first step is to identify all risk factors of the respective location, to assess potential threats that May impact personnel Security and assets. After assessments are made and a RISK REPORT provided where recommendations are made to the following:

  1. THE SITE
  2. PHYSICAL INSTALLATIONS

iii. OPERATIONAL SECURITY

  1. STAFF
  2. SURROUNDING AREAS

 

  1. TRAINING

 

The effective security of a site requires that security employees receive the required and adequate training to conduct their duties. As the demand for a security employee increases by the inclusion of weapons or transit of valuable goods, the training demand increases. The following are a series of courses to be conducted for security personnel:

  1. RULES AND REGULATIONS
  2. SECURITY PROCEDURES
  3. PATROL TECHNIQUES
  4. TIMINGS AND HANDOVERS
  5. USE OF CANINES
  6. SIGNING IN AND OUT
  7. ACCESS CONTROL
  8. WEAPONS HANDLING
  9. FIRST AID
  10. DETAINING INDIVIDUALS
  11. SEARCHES
  12. SCENE OF CRIME

 

  1. WEAPONS TRAINING

The weapons training courses are tailor-made depending on what weapons platforms we provide the mine. As technology has increased we are at the forefront of providing the most unto date weapons systems for every specific threat or scenario likely to be experienced by a mine or related business. The following subjects (but not limited to) will be conducted on the weapons training course:

  1. WEAPON HANDLING
  2. WEAPON HANDLING TEST
  3. RANGE WORK
  4. CONTACT DRILLS
  5. BREAK CONTACT DRILLS
  6. VEHICLE CONTACT DRILLS
  7. FIRST AID
  8. DRIVING TECHNIQUES
  9. SCENARIO-BASED EXERCISES

  10. INDUSTRY-SPECIFIC PRODUCT SOLUTIONS

The following products are provided and work well within the mining industry to help security personnel thwart any attempt by armed gangs as well as petty criminals:

  1. Scalable Surveillance systems
  2. Anti-cut fencing solutions
  3. Area-specific access control
  4. Panic rooms
  5. Specialised weapon systems
  6. Lethal and non-lethal ammunition
  7. Ballistic security vests
  8. Ballistic vehicle products
  9. Thermal drones with geofencing technology

Weapons options:

  1. Semi automatic rifles

The semi-automatic rifle also known as a modern sporting rifle is often used when engaging in close threats as well as multiple threats. Unlike the traditional bolt action rifle which is predominantly used for hunting, the modern sporting rifle is more accurate than pistols and revolvers. Personnel have the ability to engage multiple threats without having to continuously load the rifle, unlike the bolt action rifle security companies currently use. The ability to change magazines quickly and engage threats at short to medium distances makes this weapon platform one of the most advanced and user-friendly systems on the market perfect for mines, cash in transit and bullion in transit teams because of its compact nature.

  1. Shotguns

We provide various shotgun options for close threats where security personnel may need to engage a threat with non-lethal or lethal ammunition with a distance of up to 22-27m. Whilst shotguns have been the weapon of choice on most mining installations they have limitations with their roles as well as ammunition quality. Most shotguns are limited to 7 rounds with a longer reloading time, exposing personnel to higher risk.

  1. Pistols

We provide an array of pistols to every category of client from micro pistols which takes 6 rounds to full-size pistols which take up to 18 rounds. Depending on the client’s specific needs we can provide a solution that will suit their requirements.

WHERE WE ARE

Stryker arms & ammunition operates out of Harare and our focus is on the discretion and privacy of ourselves and our clients. We work on an appointment basis and do not take any walk-in clients. Should you need any of our above-mentioned services or products, please get in touch with us on: +263 772 406 786

 

Nine investors vie for Zisco revival tender

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Nine investors vie for Zisco revival tender

THE Government is in the process of identifying a successful investor out of a potential of nine to resuscitate the Zimbabwe Iron and Steel Company (Zisco), Industry and Commerce Minister, Dr Sekai Nzenza, has said.

Zisco ceased operations at the height of hyper inflation in 2008, and since then, efforts to revive the company have suffered false starts. Giving a keynote address during the virtual Women’s Business Leadership Roundtable (2021) on Friday, Dr Nzenza said Government was determined to ensure the defunct steel giant was revived this year.

“Government is working tirelessly to revive Ziscosteel and already there are nine potential investors. An adjudication process has commenced and will result in the short-listing of the potential investors.

“The successful candidate will then carry out due diligence on Ziscosteel and its subsidiaries and will lead to the implementation of the project,” she said.

Dr Nzenza said Government was formulating and implementing policies and strategies for industrial and commercial growth, with her Ministry facilitating and promoting the development of sustainable, innovative, inclusive and globally competitive industrial and
commercial enterprises. She urged women in business to be innovative and make use of modern technologies to push forward industrialisation.

“Women in business are urged to be innovative and make use of modern technologies to push forward industrialisation. Technological advancement and innovation are key to improving productivity and competitiveness of locally manufactured products. Government
is keen to deliberate policies to strengthen science, technology transfer and innovation systems through collaboration between Government, development partners, firms, learning and research institutions.”

Dr Nzenza said to ensure that Zimbabwe produces competitive goods and services, Government was offering incentives to stimulate innovation to support promising technological or scientific fields. She said the Government through the Industrial Development Corporation (IDC) of Zimbabwe was making strides in assisting companies
with funding for viable projects.

“Public-private research institutes are not an exception to be receiving support from the Government including the Scientific and Industrial Research Development Centre (SIRDC) to push forward the creation of a strong knowledge base and establish a strong research and innovation network.”

Dr Nzenza said the Government is calling on the women to get into the habit of networking and attending business chambers so as not miss out on trends. She said the virtual conference was very symbolic to some of the key objectives of her Ministry, where they
viewed industry and commerce as an equal playing field, with no gender restrictions and no lesser being in business.

 

The Sunday News

Government reclaims 220 mining claims in Mat South

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Government reclaims 220 mining claims in Mat South

THE Government has forfeited about 220 small-scale mining claims in Matabeleland South Province over non-payment of inspection fees.

In a circular seen by Sunday Business, the Ministry of Mines and Mining Development noted that owners of the claims have up until 25 August to revoke the forfeiture or risk losing their claims. The Ministry recently increased inspection fees which are paid annually from $2 000 to $25 500 for an ordinary block which is about 10 hectares.

“The following mining locations have on the day Wednesday the 4th of August 2021 been forfeited in terms of Section 260 and 271 of the Mines and Minerals Act (Chapter 21:05) and shall subject to the provisions of Section 272 of the said Act be open for relocation on
Thursday the 9th of September 2021 unless revoked on or before Wednesday the 25th of August 2021,” read the circular accompanying the names of the claims that have been forfeited.

In an interview, Ministry of Mines and Mining Development Matabeleland South Provincial mining director Mr Khumbulani Mlangeni said the claim holders had to visit their offices to clear the arrears or make a payment plan within 21 days from the time the forfeiture notice was issued.

He said those who failed will lose their rights to their claims. “We have issued a notice of forfeiture to claim holders that haven’t paid inspection fees.

“We have put up this notice on notice boards according to the set procedure.

“The claim holders have 21 days to revoke this decision by clearing their arrears, making a payment plan or paying what we call a protection fee. Those who fail to do any of the above would have rendered their claims liable for forfeiture. After 35 days from the time of issuing this notice they would have lost their rights to the claims and they will be disposed meaning
they will be allocated to other people,” he said.

According to the Mines and Minerals Act, the Government is empowered to dispose of forfeited claims. Zimbabwe Miners Federation (ZMF) Matabeleland South provincial chairman Mr Philemon Mokuele encouraged claim owners to engage the Ministry of Mines and Mining Development offices in order to resolve the matter.

“The Ministry of Mines has listed mines for forfeiture. If your mine is on this list just visit the offices as soon as possible otherwise you might lose your mine,” he said.

Miners have complained that the inspections fees were beyond their reach which made it difficult for them to clear their arrears.

 

The Sunday News

Miner gets 66 workers vaccinated against Covid-19

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Miner gets 66 workers vaccinated against Covid-19

Small-scale miner and Zimbabwe Miners Federation (ZMF) Matabeleland South Chairperson Philimon Mokuele in an endeavour to fight the Covid-19 pandemic has had workers vaccinated with more preparing to receive the Covid-19 jab.

Anerudo Mapuranga

Leading by example, the Mat South Chairperson said 66 workers have already been vaccinated with 40 ready to receive the jab.

Mokuele also employed a health practitioner to manage World Health Organisation and the Ministry of Health and Child Care Covid-19 guidelines at his mine to reduce the spread of the novel coronavirus.

“I got 40 workers ready for the jab and 66 workers have already been vaccinated.

“As a leader in mat south province I personally to health Inspectors to test all the workers at my mine, fumigated all the offices, workers compound and stopped movement of all workers from the mine for two weeks, employed a nurse on part time basis to do sensitization daily at the mine, already preparing to invite vaccination team at the mine.” he said.

Mokuele was this year listed in our top ten exemplary small-scale miners of 2020.

Mokuele joins Henrietta Rushwaya to become the second high ranking ZMF official to publicly participate and encourage participation in the vaccination program.

Rushwaya earlier this year said it was of importance for miners to embrace the government vaccination program to prevent infections from Covid-19 third wave.

“Please kindly go to your nearest Health Centre and get vaccinated. Covid-19 is real and let us go and get inoculated. As Miners, we need to embrace this free gesture extended to us by our government,” Rushwaya said.

Rushwaya received her first jab of Sinopharm’s Covid-19 vaccination at Borrowdale clinic and has continuously encouraged Artisanal and Small-scale Miners to bulletproof against the novel coronavirus.

About Covid-19

Coronavirus disease (COVID-19) is an infectious disease caused by a newly discovered coronavirus. Most people who fall sick with COVID-19 will experience mild to moderate symptoms and recover without special treatment.

How Covid-19 Spreads

The virus that causes COVID-19 is mainly transmitted through droplets generated when an infected person coughs, sneezes, or exhales. These droplets are too heavy to hang in the air and quickly fall on floors or surfaces.

You can be infected by breathing in the virus if you are within close proximity of someone who has COVID-19, or by touching a contaminated surface and then your eyes, nose or mouth. COVID-19 affects different people in different ways. Most infected people will develop mild to moderate illness and recover without hospitalization.

Most common symptoms:

  • Fever
  • Dry cough
  • Tiredness

Less common symptoms:

  • Aches and pains
  • Sore throat
  • Diarrhoea
  • Conjunctivitis
  • Headache
  • Loss of taste or smell
  • A rash on the skin, or discolouration of fingers or toes

Sibanye-Stillwater to acquire Eramet’s nickel processing facilities in France

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Sibanye-Stillwater to acquire Eramet’s nickel processing facilities in France

Sibanye-Stillwater (JSE: SSW and NYSE: SBSW) announced that it has entered into an exclusive put option agreement with French mining group Eramet SA for the acquisition of 100% of the Sandouville nickel hydrometallurgical processing facility, located in Normandy, France for €65million ($77m) cash.

Mining

The transaction is expected to conclude by year-end, subject to the approval of the South African Reserve Bank and other regulatory approvals, Sibanye said in a news release.

The Sandouville facility is situated in the industrial heart of Europe at Le Havre, France’s second-largest industrial port, with strategic access to infrastructure including shipping, rail and key motorways, supporting any future supply into the European end user markets.

THE SANDOUVILLE FACILITY IS SITUATED IN THE INDUSTRIAL HEART OF EUROPE AT LE HAVRE, FRANCE’S SECOND-LARGEST INDUSTRIAL PORT

The current Sandouville facilities include a hydrometallurgical nickel refinery with a production capacity of 12,000 tonnes per annum of high-purity nickel metal, 4,000 tonnes per annum of high-purity nickel salts and solutions and around 600 tonnes per annum of cobalt chloride.

The transaction is the second step in Sibanye-Stillwater’s battery metals strategy, building on the investment in the Keliber lithium hydroxide project, in partnership with the State of Finland and the Finnish Minerals Group, announced in February 2021.

The Sandouville site is a polyvalent facility which is already zoned for heavy industrial purposes. The site s scaleable for nickel, cobalt and lithium battery-grade products, and will enable Sibanye-Stillwater to further advance its battery metals strategy and recycling activities.

The acquisition is seen as a low-risk entry into the nickel beneficiation business and the initial focus will be on ramping up throughput as per the existing Eramet plans. As part of the due diligence Sibanye-Stillwater has completed a scoping study to in parallel with current production further upgrade the Sandouville facilities to target specific nickel battery metal products.

“We are delighted to progress with this second step in our battery metals strategy, which is an important step in getting further downstream exposure to the battery metals value chain,” Neal Froneman, Sibanye-Stillwater said in the statement.

The Sandouville facility is ideally located close to the European end-user markets and well supported by significant logistical infrastructure, which will allow us to leverage our existing Platinum Group Metals relationships.,” Froneman said.

“We look forward to working with Eramet and the French authorities to build a leading battery metals platform in Europe.”

Diamond sales at Debswana rebound as global market recovers

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Diamond sales at Debswana rebound as global market recovers

De Beers’ Botswana unit saw sales of rough diamonds rebound by 41% in the first half of 2021, driven by the reopening of key markets the United States and China, data from the Bank of Botswana showed on Thursday.

Debswana Diamond Company, a joint venture between the Botswana government and Anglo American’s De Beers, sells 75% of its output to De Beers with the balance taken up by state-owned Okavango Diamond Company.
Debswana’s sales fell by 30% in 2020 as the coronavirus pandemic hit demand while global travel restrictions impacted trading.

In a bid to curb the spread of the virus, Botswana closed its borders for eight months last year, locking out international buyers from centres such as Mumbai, Antwerp and China who traditionally travel to the capital Gaborone 10 times a year to view and buy diamonds from De Beers.

According to data published by the central bank, exports of diamonds from Debswana stood at $1.702 billion in the first half of the year compared to $1.209 billion in the same period last year.

Paul Rowley, De Beers’ executive vice president, diamond trading, told a media briefing last week that the recovery was strong in the first half of 2021 with global consumer demand benefiting from vaccine roll-outs and fiscal stimulus in the United States.

“The long-term outlook for diamond jewellery demand remains positive, while the lack of new diamond projects means supply is likely to be flat or declining for the foreseeable future,” he said at last week’s briefing.

Botswana gets about 30% of its revenues and 70% of its foreign exchange earnings from diamonds and the Southern African country sees its economy growing 8.8% in 2021 after having contracted by 7.9% in 2020.

 

(By Brian Benza; Editing by Susan Fenton)

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