THE Zimbabwe Energy Regulatory Authority (Zera) has increased the price of both diesel and petrol by between two and four percent in both local and foreign currency.
The review, which is effective from yesterday, follows adjustments made in June when Zera cited a general rise in fuel prices on the international market early this year.
According to a statement from the regulatory body, the new prices of diesel are now $114,29 per litre or US1,33 while petrol is now pegged at $117,07 per litre or US$1,37 per litre.
In June, the pump price of diesel was pegged at $110,54 per litre or US$1,30 while petrol was pegged at $112,55 per litre or US$1,33.
“Fuel operators may, however, sell at prices below the cap depending on their trading advantages.
“Stakeholders are advised that the petroleum price releases by Zera can be verified on the official Zera website, Facebook or Twitter handle,” it said.
Since January this year, there have been increases in the Free on Board (FOB) prices for petrol and diesel and this has a knock-on effect on the pump price of fuel.
AUSTRALIA-LISTED mining concern, Prospect Resources, says it has identified significantsized rare earth elements (REE) anomalies at its Chishanya Carbonatite project in Buhera District, Manicaland.
REE refers to a group of 17 chemically similar elements, including the 15 elements in the Lanthanide series, and also scandium and yttrium because of their similar properties.
These do not occur naturally as metallic elements but occur in a wide range of minerals, including halides, carbonates, oxides, phosphates and silicates, experts say.
In 2018, the mining group announced that it was preparing to commence exploration at its Carbonatite project with a focus on determining REE potential of the site.
In an update this week, mining Prospect announced that it has identified the REE at Chishanya.
“Prospect Resources has identified two significant sized REE anomalies at its Chishanya Carbonatite project in south-eastern Zimbabwe.
“The deposit was a known source of apatite hosted phosphate but was previously untested for REE; two distinct total rare earth (TREE) anomalies (TREO) have been identified at Chishanya Hill and Baradanga ridge, covering 0,2 and 0,1 square kilometres respectively,” said the company.
Last month, Prospect, which owns the Arcadia Lithium operation in Goromonzi, Mashonaland East province, commenced production under a pilot plant project.
Prospect managing director Mr Sam Hosack was quoted saying: “We are excited by the soil sampling results as an initial indication of Chishanya’s potential to be a REE project.
“Based on these results, we have exercised the option on the adjoining ground to bulk up the project with a view to undertake further exploration and evaluation.”
He said while their core focus was on the development of the Arcadia Lithium project flagship, Chishanya offers a niche opportunity to evaluate the REE potential of the ground and to also assess other targets in the region that have never been explored for REE on such
basis before.
Prospect said results of moderate tenor from two well defined anomalies, in an area of limited surface outcrop, likely indicate the presence of sub-surface mineralisation and significant extra potential at depth.
It said Chishanya exhibits no signs of supergene concentration within a laterite that is often caused by tropical weathering.
“The considerable lithological variation seen at Chishanya is typical of carbonatites, and this leaves considerable scope for concentration of REEs at differing levels within the project.
“In short there is considerable potential for concentration on various REE combinations, which have no current surface expression,” it said.
The project, though undoubtedly primarily prospective for REE, also still has phosphate potential, said Prospect.
“Despite the metallurgical test work by African Consolidated Resources (now named Vast Resources plc) indicating the difficulty in extracting the phosphate economically, this test work was limited in scope and the grades do compare favourably with the Dorowa mine, located 100 kilometres to the north,” it said.
BUBI Milling Centre (Private) Limited plans to construct a Carbon-In-Pulp plant in Matabeleland North under a Build-Operate-Transfer arrangement.
The milling centre is one of the numerous gold service centres earmarked for capacitating artisanal and small-scale miners to realise optimum returns from their ore.
Bubi Milling Centre, a joint venture between Bubi Small-Scale Miners’ Association and the Zimbabwe Mining Development Corporation (ZMDC) was commissioned by Vice President Dr Constantino Chiwenga in July 2018.
According to a joint request of expression of interest, the Zimbabwe Development Agency (Zida) and the Bubi Milling Centre have invited proposals from reputable and established companies to supply, install, construct and commission a CIP plant at the gold service Centre.
A CIP plant is an extraction technique for recovery of gold, which has been liberated into a cyanide solution as part of the gold cyanidation process.
“Proposals are invited from reputable, reliable, established companies for the construction of a CIP gold processing plant under a Build-Operate-Transfer (BOT) arrangement with Bubi Milling Centre,” reads the notice.
“Interested bidders are required to obtain detailed expression of interest documents from the Bubi Milling Centre offices (44km along Bulawayo-Nkayi Road).”
In a post-Cabinet media briefing this Tuesday, Information, Publicity and Broadcasting Services Minister Monica Mutsvangwa said establishing more gold centres was being targeted as a strategy towards achievement of a US$12 billion mining industry by 2023.
In this context, she said, Cabinet has approved proposals for the establishment of over 20 gold centres across the country by mid next year.
“Gold centres are expected to provide basic equipment such as compressors and jack hammers as well as working capital to facilitate optimal production by small-scale miners who supply gold ore,” she said.
“The Reserve Bank of Zimbabwe shall maintain presence, directly or through approved buying agencies, at all gold centres so as to buy all the gold produced. The gold centres will also provide technical services to miners who supply the ore.
“Cabinet approved proposals for the establishment of over 20 gold centres by mid-2022.
“Accordingly, memoranda of understanding will be signed with four investors who have been identified for the purpose of setting up the gold centres.
“The investors will own 100 percent equity in the centres, while those who operate joint ventures with the Ministry of Mines and Mining Development will fully fund the operations of the centres in return for a 90 percent equity stake.”
Minister Mutsvangwa said Cabinet, therefore, approved that the Ministry of Mines and Mining Development signs memoranda of understanding with investors intending to locate, establish, fund and run gold centres already provided for in the Mines and Minerals Act.
“Some of the gold centres are expected to be established in Makaha, Odzi, Mount Darwin, Shamva, Mazowe and Silobela,” she said.
Midlands Mines Cadastre Officer Pikirai Macheza in his quest of trying to create an accurate and verified database has come under fire from Prospectors and small-scale miners who are accusing him of trying to arm-twist prospectors, threatening not to accept their work, which is against the provisions of the Mines and Minerals Act.
Anerudo Mapuranga
Macheza is being accused of undermining peggers through his claims that peggers are not qualified to carry out the verification process, therefore, should exercise their work with the blessings of a surveyor.
Macheza is alleged to be a land surveyor by profession and he is accused of trying to create opportunities for people in his profession.
Peggers groups were on fire with members rebuking Macheza.
One said, “This is ridiculous for sure. It’s going to make us busybodies for nothing. Gweru must adopt what is happening in other provinces without trying to be too flamboyant. All those who pegged in the Gweru mining district with the help of the association must fight this modus operandi tooth and nail.”
Another said, “Anenge ave neimwe mines and minerals act yake yekumba kwake.” (he seems to have his own personal mines and minerals act).
While another castigated the move saying,”The Ministry has gone to the dogs. Isu during our time we used to have MC’s conference every year that’s why u(you) used to c (see) kuti zvaiitwa kuKadoma was the same nezvaiitwa kuByo we had standard operating procedures”
Macheza in a widely shared audio said peggers although written to, to carry out the exercise there were not qualified.
“The point is peggers are not qualified to do the written exercise although we wrote to them that they carry out the process, they are not qualified.”
“We don’t want to create disputes,” he said.
According to Hyde Chatyoka, the Minister of Mines and Mining Development Hon Winston Chitando is supposed to look into the matters raised by Macheza and correct them because the Midlands cadastre officer was misapplying the law.
“This idea of inviting miners and their peggers will create more needless disputes which will spill into the courts and the courts will re-affirm and force the Act to be applied. Your office, Honourable Minister, must seek legal advice in trying to apply the Act and issue instructions to miners in accordance with the Act and not in accordance with their titles no matter the excitement of office and honour of office.
“I repeat, the only constant office and host sanctioned by the Act is that of a miner whose mine title is current. All other officials are the miner’s guests for a certain term and once that term is over, the miner will cease to host whichever official and welcome the new official. So as far as is practically possible, our guests must not seek to scuttle the order by conflicting with the Act. We, therefore, pray for our guests to behave and act mannerly as guests and never imitate to be hosts. Our hope is to host many subsequent guests and we wish we will not be forced to pray for the abolition of any office.
“The Act is very clear and has been supported and buttressed by court judgements for over sixty years. It says in a mining rights dispute, the rights are given to the prior miner. In this case, the correct procedure to follow which cannot be overturned in court on transferring mine titles from monologue to digital is to follow the ‘Mines Register’ in office and confirm, transfer and convert mine titles in accordance with the dictates of the register. The only diversion which is legally acceptable in this exercise is to skip forfeited mines,” he said.
In his effort to create a cadastre system that is accurate, verified and dispute free, Macheza proposed the following instrument to prospectors in the Province.
Methodology in the implementation of claims beacon coordinates collection program.
Surveyors & peggers
Aim for the exercise
To accurately collect coordinate data for database creation from all ground verified registered claims.
It is very possible that due to human error some mine locations might be based on uncaptured coordinates, pointing that, documented coordinates in the office of ministry (MMMD) are supposed to be compared to what is on the ground before we adopt such beacon coordinates into the Cadastre Database.
There is quite a number of disputes and for all the districts of Midlands Province that need to be settled by resolving the boundary issue. This exercise will give an opportunity to neighbouring personnel to witness each other’s beacons location thereby resolving disputes.
Clients may deliberately choose to shift beacons to undocumented positions hence this exercise would bring an added advantage of checking beacons like what the Mines and Minerals Act demands that beacons are supposed to be inspected regularly by MMMD officials.
Method.
A team to approach a miner for this exercise should be comprising a surveyor and pegger. The team members should share the duties and do due diligence if contracted to bring the coordinates to ministry offices. It is the responsibility of a surveyor to guide the execution of the methodology applied.
The team should ask for verified coordinates from a miner.
The team should then check the coordinates of existing beacons.
If there are no beacons the team liaise with the miner to reintroduce the beacons.
Then the team is supposed to write at most a two-page report with the structure to be given. The report should articulate the state of beacons such that the mining claim can be visited by Mine Survey officers to verify the reconstruction of the beacon.
The report has to be signed by the client, surveyor and pegger.
The report should be printed in 2 hard copies where one copy is given to the miner/client. The second copy is supposed to go for filing by the surveying team (pegger & surveyor) in their own office. The cadastre office would therefore receive the scanned report together, with an excel coordinates list via an email.
The excel list should only capture ground verified coordinates (the ones in the official docket of the mine). The report captures the observed coordinates of beacons on the ground.
When a miner is coming to the office for inspection, we shall then compare his/her report with the one in our email then we ascertain that the exercise was surely done.
If the area is heavily congested with mine claims, if possible, always call the neighbours to witness the exercise, this will ensure that every potential dispute is ironed out or is given a chance to surface then resolved through such a report (because Mine Survey Section take from there).
Expected results of the exercise
Creation of an accurate and verified database.
Dispute free database and digital master block plan can be accurately plotted.
Then master block plan would be then plotted on a national standard approved topographical map
The issuance of services in digital format can be easily adopted
All the behaviour of deliberately shifting the beacons can be resolved
The state enforcement on disputes would be easily managed hence more revenue
When contacted for comment Macheza said he isn’t allowed to speak to the Media. Mines Ministry officials were not available for comment at the time of publishing.
Zimbabwe has banned the export of raw chrome ore and concentrates to push for local refining. It’s not the first time, and the question is whether this old play will bring new results.
Chrome producers are banned immediately from exporting raw chrome, while producers of chrome concentrates have a year to set up local refinery capacity, Information Minister Monica Mutsvangwa said after Tuesday’s Cabinet meeting.
“Unless chrome mining capacity is expanded, the smelting operations could soon face the challenge of insufficient feedstock in the form of chrome ore. In light of the need to safeguard the needs of the ferrochrome industry, Cabinet approved a total ban on exports of raw chrome ore with immediate effect. The ban will capacitate current smelters and maximise the value chain to be realised from the country’s abundant resources,” Mutsvangwa said.
“Cabinet approved the total ban on chrome concentrates with effect from July 2022. This gives producers of chrome concentrates a year within which to make a suitable arrangement for the value addition of the concentrates, and the investment of which is low-capital costs and relatively easy.”
Exports of raw chrome would only be allowed when all the smelters are not able to take up the consignment, said Mutsvangwa.
Zimbabwe’s chrome production (Data: Treasury)
Chrome ban: A new, old plan
There have been similar bans in the past.
In 2007, chrome exports were banned in an effort to push for beneficiation. It didn’t work, as Government lifted the ban and levied a 20% Export Tax in 2009.
Another ban was announced in 2011. Again, in 2015, government reversed its move. The Ministry of Mines admitted that the ban had not, as planned, resulted in increased local processing. Instead, it had hit small chrome miners, who found themselves with stocks of chrome ore that they could not sell.
The ban also contributed to a sharp dip in foreign currency inflows.
The ban’s failure to boost local refining was, the Ministry of Mines said in 2015, because of a lack of efficient and modern technology for processing chrome. Power tariffs, a major cost for processors, were too high. Government then ordered power utility ZESA to sell electricity to the industry at lower tariffs.
It appears government now believes there has been enough processing investment to warrant yet another try.
But the true test of this strategy will be seen in whether local smelters will be able to absorb the chrome ore being mined around the country, and to process it efficiently.
At the time of the last ban, in 2015, chrome ore production was 1.5 million tonnes per year. This was at par with output projections for this year. Zimbabwe produced 1.2 million tonnes of chrome last year. Production was 300 926 in the first quarter of this year, down from 311 495 tonnes over the same period this year.
That drop, according to the Ministry of Finance, was because there was low intake of raw chrome by local processors. It was also due to low demand for high carbon ferrochrome from China, the world’s biggest buyer.
“In response, most local smelters closed operations but took advantage of this period to refurbish and modernise their furnaces in anticipation of the resumption of trade,” the Ministry says in its latest mid-term budget statement.
In 2015, government lifted the ban because world ferrochrome prices had collapsed. Last year, prices fell to below those 2015 levels, hit by COVID-19. This forced many local smelters to go into care-and-maintenance. Prices have since recovered in 2021, although uncertainty remains over demand.
Zimbabwe’s top chrome processors in 2020 (RBZ)
The country now has 22 smelters, but smelting capacity across much of the industry remains limited.
Before the 2015 ban, Zimasco, part of China’s Sinosteel, produced 70% of Zimbabwe’s ferrochrome. Afrochine, a unit of the world’s biggest stainless steel company Tshingshan, is now the largest producer, putting out 100 000 tonnes of ferrochrome from its Selous plant each year.
ZimAlloys, which has just emerged from judicial management and is reinvesting in its smelters in Gweru, is also a potentially key producer.
China imported 141,184 tonnes of chrome ore from Zimbabwe between January and March, roughly half the country’s production during that period and up by 36.4% from last year. Alloy shipments rose by 9.6% to 27,632 tonnes.
Chrome investment
The latest ban will be a knock on some new chrome investors.
Tharisa, the JSE-listed platinum and chrome producer, earlier this year acquired Salene Chrome Zimbabwe for US$3 million. Tharisa’s plan was to send chrome concentrates produced by Salene to Arxo Resources, Tharisa’s chrome arm in South Africa.
POWER utility Zesa Holdings has warned its customers across the country to brace for possible power cuts after the Hwange Power Station developed a technical fault on Tuesday.
The fault has resulted in the loss of 368 megawatts (MW).
In a statement, Zesa urged people to use power sparingly in light of the reduced supply caused by the Hwange fault.
“Zesa Holdings would like to advise its valued customers countrywide that there is limited power supply on the national grid due to a technical fault at Hwange Power Station,” the statement read in part.
“The technical fault will result in load curtailment of about 368MW today (yesterday) and customers will be updated as the situation improves.”
Zesa said restoration of normal service was underway, adding that “customers are advised to use the available power sparingly”.
Zimbabwe’s gold exports hit a record high of US$184.2m in July, mirroring the favourable Reserve Bank of Zimbabwe (RBZ)’s policies and improved commodity prices on the international markets.
The export receipts reflected a 132% increase from US$79.3m reported in the same month in 2020.
The central bank recently introduced favourable policies that include a 5% incentive, scrapped taxes for small scale miners and is now timeously paying miners for gold deliveries in line with the international gold prices.
Before the July haul, June had the highest export receipts after Zimbabwe reported US$141.5m.
“Our July gold export receipts increased 132% courtesy of the new policies which saw miners clocking 500 kilogrammes weekly,” RBZ governor John Mangudya told Business Times.
Overall, Mangudya said gold export receipts rose 42% to US$648.4m for the seven months to July from US$457.2m.
Smugglers were believed to be taking about 2.5 tonnes to alternative markets every month.
But, with new policies in place, the majority of them are now delivering to Fidelity Printers and Refiners (FPR), the country’s sole buyer and marketer of gold.
An industry official, who preferred anonymity, toldBusiness Times that some gold buyers visited Treasury offices and RBZ, seeking the loosening of gold policies.
“Recently a group of buyers visited the RBZ building asking for a more level playing field in the gold sector but we knew that these were smugglers who were capitalising on high royalties and the cost of importing cash…” said the official.
“We just told them that we will look into the matter as to how best we can address the issue but in actual fact we know that we have done well to plug holes.”
Small scale miners also confirmed selling their gold to FPR with the Zimbabwe Miners Federation chief executive Wellington Takavarasha saying: “This time FPR is the best place to be as it is paying timeously and at the prevailing international gold market rate with some incentives for those who deliver 20kg and above. Small scale miners are delivering above 300 kg weekly and more is expected.”
As a result, the June 2021 gold deliveries clocked 2.92 tonnes against 1.4 tonnes same period last year due to a reviewed Fidelity’s buying price of gold for the artisanal and small scale miners.
Small scale miners delivered around 1.7 tonnes against large scale miners’ 1.1 tonnes.
The government has moved to provide equipment in gold centres to move towards helping the attainment of US$4bn gold export revenue.
In her post-Cabinet briefing this week, Information, Publicity and Broadcasting Services minister Monica Mutsvangwa said the government was targeting to establish gold centres across the country, a move which will help the country achieve a US$12bn mining industry by 2023.
“Gold centres are expected to provide basic equipment such as compressors and jackhammers as well as working capital to facilitate optimal production by small-scale miners who supply gold ore. The RBZ shall maintain presence, directly or through approved buying agencies, at all gold centres so as to buy all the gold produced,” she said.
Mutsvangwa said the gold centres will also provide technical services to miners who supply the ore.
“Cabinet approved proposals for the establishment of over20 Gold Centres by mid-2022. Accordingly, memoranda of understanding will be signed with four investors who have been identified for the purpose of setting up the Gold Centres.
The investors will own 100% equity in the centres, while those who operate joint ventures with the Ministry of Mines and Mining Development will fully fund the operations of the centres in return for a 90% equity stake,” Mutsvangwa said.
Zimbabwe’s biggest platinum miner, Zimplats, spent more than US$1.3m in exploration projects in the quarter to June this year as it seeks to increase output, the company has said.
“A total of US$1.3m was spent on exploration projects, with a further US$0.1m committed as at June 30, 2021.
“Exploration activities included mineral resource evaluation work, comprising approximately 10 171 metres of surface diamond drilling over existing projects on the two mining leases.
“The exploration activities improved geological and geotechnical confidence in scheduled production,” Zimplats said in a statement.
The company said total operating cash costs during the period increased 5% from the previous quarter due to higher volume of ore mined and milled.
In addition, costs were negatively impacted by additional Covid-19-related expenditure.
A total of US$1m during the quarter under review was transferred from opening stocks to operating costs during the quarter, as concentrate stocks were reduced in the period.
The increase in production volumes resulted in an 8% quarter-on-quarter decrease in operating cash costs per 6E ounce to US$655.
Unit costs in the quarter under review benefitted from the volume gains realised from the treatment of furnace reverts.
Ore mined increased 2% from the prior quarter due to the increase in operating days and improved productivity from the teams redeployed to other mines following the precautionary closure of Ngwarati Mine after the high-wall collapse incident on February 14, 2021.
While the productivity of the redeployed teams improved on the previous quarter, it remained lower than their capacity at Ngwarati Mine resulting in production being 2% lower than the fourth quarter last year.
Ngwarati Mine reopened for production on July 1, 2021. 6E head grade of 3.4 grammes per tonne and 6E recovery of 77.9% improved from the prior quarter as the ore mix stabilised.
However, milling of lower-grade development ore from Mupani Mine after the precautionary closure of Ngwarati Mine resulted in a 3% decline from that processed in the prior comparable quarter in 2020.
As a result of the lower mill grade, 6E recovery was marginally lower year-on-year due to the decrease in head grade.
Production of 6E (platinum, palladium, rhodium, ruthenium, iridium and gold) was 12% higher than the prior quarter.
6E metal production in final product declined by 5% from the prior June quarter when volumes benefitted from both the treatment of furnace reverts stockpiled during the furnace rebuild and higher 6E head grade and recoveries.
The seizure of a Mashonaland East-based gold mine has exposed a well-knit corruption syndicate involving high ranking officials in the Ministry of Mines and Mining Development and part of the investigators from the Zimbabwe Anti-Corruption Commision (ZACC).
In 2007, Trymore Chipepwe, Michel Chipepwe and Tongai Gata discovered a gold mine claim and in the same year Trymore invited Norman Karimazondo to come and join Jeke Mining Syndicate as a member. Norman then asked his brother Paul Karimazondo, who is the MP for Pfungwe, to be the mine sponsor.
The mining dispute began when Norman started calling for a change in shareholding eventually leading to Trymore being removed from the syndicate using Section 61(3) of the Mines and Minerals Act Chapter 21:05.
But according to court documents, Norman contravened this section of the Mines Act and the case was ruled by the High Court in favour of Trymore Chipepwe who was supposed to be reinstated in the syndicate.
However, the ministry’s top officials including Mines Permanent Secretary Onismo Moyo and Head of Legal Jacquiline Munyonga are accused of allegedly frustrating the implementation of two High Court judgements that ruled in favour of Chipepwe. The High Court judgements directed the ministry to reinstate Chipepwe on two occasions but all the judgements were allegedly either ignored or frustrated.
The alleged corruption case was reported to ZACC leading to the arrest of former Mashonaland East Provincial Mining Director Grace Chacha while some top officials in the ministry including Moyo were summoned by the anti-graft body.
The continued frustration of the court processes as well as reluctance to implement court judgments has fuelled allegations that there could be a well-knit team of the ministry’s top brass that has been allegedly working with the existing syndicate members to keep Trymore out of operations.
There has been increased interest around the gold mine which has potential to produce close to 8kg of gold per week making it one of the most lucrative small scale gold mines in the province.
Efforts to get a comment from Moyo, Mines Permanent Secretary, were fruitless as his mobile phone went unanswered.
A letter by current Mashonaland East provincial mining director Tendai Kashiri in 2018 advising the Permanent Secretary of the matter noted that the removal of Trymore was illegal and recommended reinstatement of the original mining licence which has his name.
“In a letter at our disposal written by the Ministry’s Legal Advisor Munyonga dated September 13, 2018 which we hereby attach the opinion of the legal advisor was as quoted. It is clear that the minutes which are alleged to have been used to convince the then PMD to reissue another certificate excluding Trymore Chipepwe from the syndicate is not a resolution of all syndicate members. Legally the minutes do not constitute a resolution of members of a partnership,” Kashiri wrote.
Kashiri further recommended the cancellation of the new certificate (ME82).
A well-placed source close to developments told Business Times that there has been a plot by ZACC investigators to frustrate the case despite an instruction by some Commissioners for the matter to be investigated.
There has been little movement on the matter, despite ZACC’s legal department recommending arrests, insiders have said.
Listed cement producer, Lafarge Zimbabwe, has reported a strong business performance in the first five months of the year across all segments owing to growing market demand.
Lafarge company secretary, Faithful Sithole, said in line with the 2021 Strategic Agenda the business achieved volume growth leveraging on the growing market demand in the individual home builder segment as well as government’s ongoing infrastructure development projects.
She said cement, dry mortar products, Binastore retail franchise volumes went up significantly during the January to May period.
“Cement volumes for the period increased by 23.7% compared to prior year in spite of the Covid-19 national lockdown instituted in the first quarter,” Sithole said.
“In the same period Dry Mortar products volumes grew by 105% compared to the same period last year. The Binastore retail franchise recorded a remarkable 555% growth in volumes compared to the same period in prior year.”
The growth in the retail franchise business was further strengthened by the growth in purchases made on the Binastore e-commerce site facilitating business continuity during lockdown periods.
This resulted in strategic changes in product portfolio mix the average selling price was favourable against budget.
“This, coupled with the significant growth in volumes, secured the company a 346% increase in revenue compared to the same period in prior year on the back of effective cost reduction initiatives implemented in 2021,” Sithole said.
The company’s EBITDA margins strengthened by 2% compared to the same period in 2020.
She said focus remains fixed on ensuring profitability and the cost optimisation drive remained integral given the unstable operating environment.
Lafarge commissioned a new US$2.2m automated Dry Mortars plant in the period under review.
This resulted in the Dry Mortars production capacity increasing to 100,000t per annum from 7000 tonnes.
The company is also expecting to commission a new Vertical Cement Mill in March next year.
This project is the last of the three recapitalisation projects lined up in the business expansion plan announced in 2019.
Sithole said the company continues to innovate in products and services with an objective to offer continuous improvement in convenience and customer satisfaction through a rich product mix.
During the period under review, the company also launched the country’s first waterproof cement under the label WaterShield as part of its progressive product innovation and expansion objective.
This product, made with hydro-defence technology, is manufactured from the new dry mortars plant line and is the first of a series of new products set to be delivered from the added capacity in the DMO business.
Beyond the period under review, the company has since launched yet another innovative offering; a high end dry mortars range of products under the name Tector which consists of plastering mortar (TectorPlast) and Tile Adhesives (TectorCeram) designed to give superior finish to construction works.
Sithole said innovation remains a key focus, leveraging on the increased manufacturing capacity recently installed in the Dry Mortars business.
The company continues to build its resilience with a focus on upholding employee and stakeholder health while ensuring business continuity beyond the pandemic, she said.
Sithole said the business remains focused on expenditure discipline across the board with a key focus on production, distribution and contracted labour costs.
The cost optimisation culture continues to be leveraged in the organisation as a key driver for growth into the future, she said.
Lafarge has maintained momentum on the digitisation of customer services and continues to invest in improving the capabilities of the various platforms for added convenience and efficiency.
This has led to the achievement of 98% adoption of the Lead Retail customer service application by customers bringing convenience and ease of transaction processing to our customers.
The rising momentum in the use of online transaction sites continues to secure revenue for the business in restricted operating environment and the company remains optimistic for stability in commodity prices as well as exchange rates, Sithole said.
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