Mining ZimbabweLatest Mining News, Policy and Industry Updates

Diversified company, Padenga Holdings’ pivot to gold will get a boost by its listing on the Victoria Falls Stock Exchange (VFEX) particularly with regards to the higher export retention incentive, analysts say. 

Emerging challenges and weakness in its crocodile skins businesses compelled Padenga to strategically pivot to gold and the move has been showing upside with the gold subsidiary’s contribution to FY2020’s topline becoming increasingly significant.

According to Padenga’s FY2020 results, Dallaglio (the group’s gold subsidiary) accounted for over half of total revenues since its full consolidation into the group just last year. 

Over the year just ended, Dallaglio’s revenue amounted to $40,3 million, constituting 57 percent of total revenue at $71,3 million. 

The expected higher export retention due to its move to the VFEX will further boost revenues, say analysts at IH Securities. 

“Overall revenues for the business are expected to remain on a strong upward trend carried by extension of the gold mining operations as well as higher forex retention once
the migration to the VFEX is complete.

“The proposed transaction to migrate listing to the VFEX is primarily driven by the need to benefit from incentives articulated by the Ministry of Finance (and Economic Development) whereby companies listed on the VFEX will be entitled to higher retention rates of their incremental exports.

“In addition, the listing on the VFEX enables Padenga to raise capital in foreign currency from a deeper investor base to pursue viable acquisitions in related export sectors.” 

Padenga resumed trading on the VFEX on Monday, and as expected, trades have been at premium. 

Although observers highlight the hard currency benefits for local investors, they also point out the limited liquidity, which comes with listing on the new US dollar denominated bourse. 

“The listing will enable shareholders to unlock a ‘real’ US dollar valuation of the business, with capital gains and dividends realisable in hard currency. 

“Downside risk is liquidity on the VFEX itself which may potentially create an initial discount on valuation, we however, believe this will resolve itself in the medium term as other companies list on the VFEX.”

With the group taking advantage of the higher export retention incentive that comes with listing on the Victoria Falls Stock Exchange, analysts at IH have forecast revenue foe FY2021 to come in at US$86,81 million. 

“We project revenue for FY21 to amount to US$86,81 million. EBITDA is anticipated to be US$27,42 million in FY21, while the EBITDA margin is expected to marginally increase to 32 percent.

“Looking at Padenga’s components, comparable peers in the aquaculture industry have an average forward P/E (+1) to FY21 of 14.20x while peers in the gold mining industry have an average forward P/E (+1) 7.30x. The company’s P/E ratio is distorted by the attributable income,” said IH Securities. 

“Comparable peers in the aquaculture industry have an average forward EV/EBITDA (+1) to FY21 of 6.83x, while comparable peers in the gold mining industry have an average EV/EBITDA (+1) to FY21 of 9.77x. To value the business, we used a SOTP valuation approach which placed a TP of US$0,23 on the company.”

Business Weekly

As global copper prices continue firming and demand of the commodity likely to surge on massive capital expenditure on the green projects, Zimbabwe has set sights on resuming copper production by 2023, a Cabinet minister said this week.

While oil remain a key energy sector, analysts believe the use of copper will play a critical role in quest to replace internal combustion engine vehicles with electric cars.

In May this year, Goldman Sachs described copper as “the new oil”, suggesting that the mineral is now strategically most important resource in the commodity mix.

Nick Snowdon of Goldman Sachs Research noted the key areas of the green economy — whether electric vehicles, electric vehicle infrastructure, renewables, wind turbines, solar — the use of copper will be much higher than in the current economies. But he also warned of the supply side “that is completely under prepared.”

Zimbabwe last produced copper at Mhangura around 2000 before the mine was closed due to subdued international prices. 

The depth levels of the mine increased costs of production. Copper is currently trading at US$10 000 per tonne on the London Metal Exchange, the highest in a decade. 

In April last year, it was trading at below US$5 000, the same price it was selling in November 2015 and October 2016.

Goldman Sachs has projected the price would hit about US$15 000 per tonne by 2025.

This week, Zimbabwe’s Cabinet approved the Greater Chinhoyi Copper Development Programme, which aimed at operationalising six copper projects by 2023. 

Additional three new projects will have resource definition being undertaken.  

The Ministry of Mines and Mining Development will be submitting proposals of six projects to be revived including the re-treatment of the Mhangura and Alaska copper dumps while Angwa Mine in Chinhoyi and Shamrock Mine in Hurungwe will be re-opened. 

Proposals on other two unidentified projects will be presented in due course, Information, Publicity and Broadcasting Services Minister Monica Mutsvangwa, told a post Cabinet briefing on Tuesday.

Govine Enterprises will partner the Zimbabwe Mining Development (ZMDC) to reopen Shamrock Mine and is expected to resume operations by end of 2022, employing about 4 500 people and generating as much as US$32 million per annum.

Hongua International has entered into a joint venture with ZMDC to re-open Angwa Mine and the Chidzikwe dump which will be operational by mid-2022, employing an estimated 400 people and generate an estimated US$33 million per annum.

Zimbabwe is targeting to boost mineral exports to US$12 billion by 2023 and currently, gold, platinum, ferrochrome, diamonds and nickel constitute the majority of exports.

Green capex boom

Under the Paris accord, nearly 200 countries pledged to keep warming to below 2 Celsius, and strive for a ceiling of 1,5 Celsius by 2030 through Nationally Determined Goals (NDGs). The NDCs are climate action plans or commitments by signatories to the Paris accord to cut planet-warming emissions over the next decade.

“Well, I think when you look at the Paris Climate goals and, ultimately, the path to net zero emissions, if that’s going to be achieved predominantly via abatement; that is via electrification and renewable energy; then copper is going to be the most critical raw material to achieving that goal because it is the most cost effective conductive metal. It’s used in capturing, storing, transporting electricity,” said Snowdon.

“But I think the other parallel to oil, and certainly oil in the 2000s, relates to the lack of supply side preparation for this demand boom. 

“And I think that’s equally important to why we are talking about copper. Because I think you’ve got this very strong green demand story. 

“But you also have a supply side that’s completely under prepared. There’s no real investment in new mine projects. And so, essentially, the copper market is sleepwalking into, you know, a really sizable supply crunch akin to what we saw in the oil market back in the 2000s,” added Snowdon.

Zimbabwe recently launched a pilot project for lithium, a critical gradient in the production of batteries for electric cars. 

On Wednesday, the European Union proposed to phase out new petrol and diesel cars from 2035 as it looks to switch to zero-emission electric vehicles as part of its commitments to combat global warming.

Business Weekly

For most entrepreneurs and executives in Zimbabwe the moment mining is mentioned they pay close attention. This is because the mining sector presents many opportunities especially as the businesses generate foreign currency. This article looks at factors affecting the viability of mining in Zimbabwe especially the business and financial considerations.

Factors affecting viability

There are common factors that affect most businesses in Zimbabwe but there are some which are specific to mining. In this article focus is on positive cashflows or profitability, which though related are not the same. The factors are listed below.

Affecting revenue

International metal or mineral prices 

Volumes produced or capacity utilisation

Ore grade

Treatment of export proceeds. In the case of gold price paid to local miners.

Applicable exchange rates.

Affecting costs

High input costs

Depths of mines

Ore grade

Mining methods

High interest rates

Fiscal policy (transaction taxes, royalties)

Onsite administration and head office costs

Foreign currency availability to import

Depreciation or amortisation costs

Availability of foreign currency to import.

Capacity and its utilisation

Availability of working capital to fund operations

State of equipment, antiquated or new

Funds to invest in new equipment or expansion projects.

Availability of foreign currency.

The above factors are explained below.

Factors affecting revenue

Revenue, or the top line, is critical to a business and every business should strive to increase it. Factors listed above do affect the performance and viability of the mining sector.

International metal or mineral prices have a significant bearing on the revenue of local mining companies as most minerals from Zimbabwe are exported to foreign markets. Examples include gold, platinum, diamonds, chrome and nickel. 

In fact most minerals but gold are exported through the Minerals Marketing Corporation of Zimbabwe (MMCZ). A slump in the international prices caused by global demand and supply factors do affect revenues. For example gold and nickel have been affected before. 

Volumes of minerals that a mining house produces also affect its revenue. Volumes are affected by many factors such as the quality or grade of ore, capacity utilisation, mining methods, mining technology used and efficiencies of mining processes. 

Large mining houses tend to be better mechanised compared to medium size mines or artisanal mines. Volumes are also affected by power availability hence the need for guaranteed power supplies.

Exchange control policies, which affect treatment of export proceeds or local prices paid to miners, also affect revenue.

The Reserve Bank of Zimbabwe (RBZ) exchange control regulations require that a portion of the export proceeds, currently 40 percent, be liquidated into the local currency at the ruling official exchange rate. 

The balance may be retained by the miner for use, for example to meet costs including imports. For gold miners, bullion is sold to Fidelity Printers and Refiners (FPR). 

The price paid by FPR and the split thereof into foreign currency and local currency has a strong bearing on mining revenue. This is why miners and the Chamber of Mines of Zimbabwe (COMZ) are always advocating favourable exchange control and pricing policies. This also includes fair or realistic exchange rates.

Factors affecting costs

Some mining businesses prefer to classify their costs into C1, C2 and C3. By definition C1 costs are Net Direct Cash Costs incurred at each stage of processing stage from mining through to the delivery of recoverable metal, less revenue from by-products. Such costs include mining costs (materials, labour, power, reagents), processing costs (milling and concentrating), transportation, onsite administration, marketing, etc. 

C2 costs, or production costs, are made up of C1 plus Depreciation, Depletion and Amortisation. C3 costs, or Fully Allocated Costs, are made up of C2 plus indirect costs and interest charges.

High C1 costs will negatively affect a business. This is why a mining business has to pay attention to its mining methods, equipment, human skills, operating procedures, efficiencies, cost effective procurement, cost effective administration and marketing, amongst other issues. 

Low quality ore grade increases the cost of production per unit such as ounce, kg or tonne. Some mines blend low and high grade ore to manage their unit costs.

The depth of mines seriously affect the cost of mining and movement of the ore for processing. Generally the deeper the mine the higher the cost of mining.

Depreciation of plant and machinery and amortisation, though considered sunk and non-monetary costs add to costs and therefore affect profitability. 

Cashflow would have been affected at the time of payment. On the other hand fiscal factors in the form of the 2 percent intermediate money transfer tax (IMTT) on payments and non-deductible royalties, add to the cost of doing mining business.

High interest charges, especially during inflationary times, increase costs and erode liquidity and profitability. Mines should always monitor their finance costs.

Low inflation and stability of the local currency go a long way in bringing about viability. This is why businesses generally including the mining sector continuously and constructively appeal to Government and the RBZ for sustainable economic and monetary policies to assist businesses.

Monitoring profitability margins

In mining it is usually advisable to regularly monitor the M1 Margin (Revenue – C1 costs), M2 Margin (Revenue – C2 Costs) and M3 Margin (Revenue – C3 costs).

Capacity and capacity utilisation

Capacity is increased through expansionary investment. Funding may come from operations, shareholders, long term borrowings, etc. Increased capacity utilisation may be a result of more working capital or high demand for produced minerals.

 Disclaimer

This simplified article is for general information purposes only and does not constitute the writer’s professional advice. 

Godknows Hofisi, LLB(UNISA), B Acc(UZ), CA(Z), MBA(EBS,UK) is a legal practitioner / conveyancer with a local law firm, chartered accountant, insolvency practitioner, registered tax accountant, consultant in deal structuring, business management and tax and is an experienced director including as chairperson. He writes in his personal capacity. He can be contacted on +263 772 246 900 or [email protected].

KUVIMBA Mining House has injected US$6 million for an expansion drive for its Kwekwe-based gold operations at Jena Mine.

On completion the expansion is expected to ramp-up production from monthly 24kg of gold to 83kg – an increase of 330%.

Kuvimba Mining House chief executive David Brown confirmed the development.

“Jena Mine a subsidiary of Kuvimba Mining House has a strategic plan to restructure itself to a mid-tier gold producer through organic growth phases over a two-year period,” he said.

“The organic growth will be achieved through the plant and underground mine expansion optimisation and exploration of the ore body to a depth of 500m.”

“The aim is to ramp up ore production from the current 8 000 tonnes per month to 30 000tonnes per month over the next 24 months. This translates to an increase in gold production from the current 25kg to 83kg per month, which equates to a 330% increase. The crushing, milling and leach plant capacity will simultaneously be upgraded to match the ore production ramp-up schedule,” Brown said.

He said the project started last May, and in June, Jena Mine produced 31kg of gold indicating the positive development the expansion drive is bringing.

Jena Mine has a strong workforce of 703 employees.

The government and various local investment vehicles such as Sovereign Wealth Fund of Zimbabwe, Public Service Pension Management Fund, Deposit Protection Corporation, Insurance and Pensions Commission, Datvest Nominees, and National Venture Capital Company of Zimbabwe own Kuvimba Mining House Group.

NewZimbabwe

Zimbabwe’s gold deliveries more than doubled to 2.92 tonnes in June from 1.409 tonnes during the same period last year on incentives as experts say the upward trajectory would be maintained throughout the year.

Last month, the Reserve Bank of Zimbabwe (RBZ) introduced a 5% incentive for those who deliver above 20kg a month.

In addition, the RBZ cut royalties and the cost of importing cash on small scale miners to improve gold production in the country amid revelations the economy was losing over 2.5 tonnes per month to smuggling.

The central bank also allowed small scale miners to sell gold at the prevailing international gold price.

Fidelity Printers and Refiners  (FPR) acting general manager Peter Magaramombe told Business Times that the June output was bound to exceed two tonnes by a huge margin, given how miners flocked the premises.

“The June 2021 gold deliveries clocked 2.92 tonnes against 1.4 tonnes in the same period last year due to a reviewed buying price of gold for the artisanal miners and small scale miners,” Magaramombe said.

“This has resulted in a positive response that propelled June deliveries to breach the 2 tonnes line for the first time since May 2020.”

Small scale miners delivered around 1.7 tonnes against large scale miners’ 1.1 tonnes.

Overall, gold deliveries for the half year fell 6% to 9.948 tonnes from 10.6 tonnes during the same period in 2020.

In May gold deliveries fell 5% to 1.38 tonnes from 1.46 tonnes recorded during the same period last year with the positive output only recorded in March where deliveries improved 2% to reach 1.80 tonnes from 1.77 tonnes.

However, with the recent surge in production, mining experts are projecting a huge recovery during the second half of the year.

In January 2021, from the output of 0.997 tonnes, primary producers delivered 0.64 tonnes against small scale who delivered 0.355 tonnes, in February 2021, the small scale extracted 0.56 tonnes and primary producers delivered 0.61 tonnes.

Recently, an FPR executive revealed that the country could be losing over 30 tonnes yearly valued at US$1.7bn due to smuggling and unfavourable mining policies.

With all miners paid to date and payment at the prevailing international gold prices, a major surge in deliveries is expected.

Gold experts say the country’s sole gold buyer is guaranteed huge volumes of gold given the current set up.

Gold Miners Association of Zimbabwe chief executive Irvine Chinyenze said leakages are expected to drop due to the new lease of life given by the central bank.

“We expect more gold to be delivered to Fidelity as miners don’t want risk and prefer to use the formal channels. Low prices, taxes and high costs were pushing miners to sell to alternative markets,” Chinyenze said.

The country’s gold output plummeted 31% to 19.052 tonnes in 2020 from 27.66 tonnes recorded in 2019 due to Covid-19 effects, delay in payments and low foreign currency retention levels.

In last year’s mining report, mining experts advised that President Emmerson Mnangagwa’s government should pay gold producers at world prices to woo them into selling the yellow metal through the formal channels.

The report blamed FPR’s flawed centralised gold buying scheme and called for the law to bring complicit powerful politicians to book as they are believed to be sponsors of machete gangs’ violence in the Midlands Province and Mazowe, Mashonaland Central.

The report said the development of the gold sector is crucial if Mnangagwa’s government is to salvage prospects for Zimbabwe’s economic recovery from decades of economic stagnation.

But with all amendments done in June, the country could be heading towards a good direction with experts expecting gold output to near 100 tonnes next year if the current trend continues.

Business Times

THE rate at which gold, the country’s biggest foreign currency earner, is being illegally smuggled out of the country is worrying.

According to official statistics, Zimbabwe is losing at least US$100 million worth of gold every month, which is being smuggled out of the country through the porous borders.

In 2019, the country earned US$946m from gold compared to US$1,3 billion earned in 2018.

Reports of people being arrested or intercepted while trying to smuggle gold out of the country have been on the increase lately.

Recently, a 33-year-old Zimbabwean man was arrested at South Africa’s OR Tambo International Airport allegedly trying to smuggle 23 pieces of gold worth R11 million into the neighbouring country and a Chinese national was also arrested trying to smuggle 7kg of gold out of the country.

The good news however, is that the Government is in the process of putting in place systems to plug the leakages.

Some of the measures that the Government is working on to plug the leakages include installing a sophisticated computerised system at the country’s border posts and airports which will be able to detect illegal activities.

The Treasury also intends to buy 500 police vehicles as part of a raft of measures to help fight crime and improve efficiency in terms of policing and fighting corruption among other illegal activities.

Mines and Mineral Development Deputy Minister, Hon Polite Kambamura said, Government had plans to address the long-standing problem of gold smuggling.

‘‘Government will be setting up an inter-ministerial committee to investigate and come up with concrete measures to plug the smuggling of our minerals,” said Deputy Minister Kambamura.

He said monitoring of ports of entry and exit will be key.

“Chief among the duties of the committee will be coming up with measures of tightening security and monitoring at our ports of entry and exit as these have become so porous,” he said.

Mines and Mining Development Portfolio Committee chairperson, Mr Edmund Mukaratigwa, said the increasing cases of gold smuggling were worrying.

“This is a serious challenge we are facing as a country and we need to find a solution. The people are smuggling the gold because the get more outside the country compared to local prices. It seems the 60-40 percent retention is not good enough,” said Mukaratigwa.

He said the mismatch between parallel market rates and official exchange rates was also fuelling smuggling.

“We have a lot of undeclared gold that we believe is being smuggled out of the country. These reported cases are just a tip of the iceberg so how much are we losing as a country?”

Mr Mukaratigwa, who is also Shurugwi legislator, said there is a need to tighten security and block leakages at the entry and exit points, including embracing technology for surveillance.

“We anticipate new measures, which are both ICT-oriented and adequate training for those manning our border posts,” said Mr Mukaratigwa.

He said there were aerodromes that are in the bushes which could be used for smuggling gold and they need to be monitored using state-of-the-art technology.

“We need to formalise artisanal and small-scale mining by creating mining syndicates which can account for all the gold mined,”said Cde Mukaratigwa.

He said his committee wants to bring together all concerned stakeholders so that they have an input into the proposed systems of curbing leakages.

“We need an integrated system where police work hand in hand with other stakeholders like airport officials, Ministry of Mines and President’s Office,” said Cde Mukaratigwa.

Zimbabwe Miners Federation spokesperson, Mr Dosman Mangisi believes the best way to curb leakages is through mechanisation of small-scale miners.

He said the hammer and chisel way of extracting gold lacked accountability.

“As long as we continue turning a deaf ear to the issue of mechanisation and continue with our hammer and chisel way of mining, which in itself is not sustainable, we will have difficulties to account for the gold produced and any miner can do whatever he wants with it,” he said.

His sentiments come at a time when RBZ Governor, Dr John Mangudya announced that the bank has started an initiative to register all small-scale miners.

Dr Mangudya said all artisanal miners will soon be registered as part of efforts by the Government to formalise their operations, curb illegal gold dealing as well as protect the environment.

The move was hailed by ZMF President Ms Henrieta Rushwaya who said the ZMF embraces the move by the Government as it goes on to decriminalise gold possession.

“We welcome the move by the Government with regards to the registration as it will ensure that we operate within the confines of Zimbabwean laws,” said Ms Rushwaya.

She said decriminalising gold possession will also reduce leakages.

“As ZMF we are saying it is a welcome move and we would also further want to urge the Government to decriminalise gold possession,” said Ms Rushwaya.

The Chronicle

REGIONAL mining group, Premier African Minerals has started drilling at its Zulu Lithium project in Matabeleland South province.

Last month, the multi-commodity mining and natural resource development company, announced a placement of £1 million for the ongoing Definitive Feasibility Study (DFS) at Zulu.

In a statement yesterday, Premier said drilling was underway at Zulu with the second drilling rig expected on site over the weekend.

It said laboratory equipment is expected on site next week.

Premier chief executive officer, Mr George Roach commented: “I am deeply encouraged that despite the Covid-19 related lockdowns and travel restrictions in the Sadc region, we are making progress in the drilling programme that is central to Zulu’s DFS.

“With the essential elements of Geodrill’s camp now established, I look forward to the ongoing expansion of Zulu’s camp as we progress into the various other facets of the DFS study”.

The Zulu lithium mine is one of the 25 projects the Government – through general notice 328 of 2021, has granted Exclusive Prospecting Orders for a period of three years up to 2024.

The Chronicle

Cement maker Lafarge Cement Zimbabwe Limited is forecasting cement production to increase by 100 percent as its US$25 million capital expansion programme bears fruit.

Chairman Kumbirai Katsande indicated the group is now in the final phase of the three pronged investment plan, which is the installation of a vertical cement mill expected to double cement production.

The supply contract was signed in August 2020 and the manufacturing of the plant commenced the following month.

“The third investment project is the installation of the Vertical Cement Mill (VCM), earmarked to double cement milling capacity,” said Katsande in a statement accompanying financials for the year to December 31, 2020.

“Civil works for the VCM have since started and expected completion date for the project is February 2022,” he said.

This follows the successful installation of alternative power infrastructure in 2019 and completion of the automated Dry Mortars Plant in 2021.

Resultantly, production capacity for the Dry Mortars business effectively increased by 1 300 percent to 100 000 tonnes from 7 000 tonnes per annum, making the Lafarge the biggest producer of Dry Mortar products in Zimbabwe.

“Significant volume growth is therefore foreseen in the Dry Mortars business following the plant commissioning in April 2021,” said Katsande.

During the past financial year, the dry mortars business drove earnings performance at a time the Covid-19 induced impacts posed severe challenges for businesses locally and across the globe.

Revenue for the year jumped 68,5 percent to $6,9 billion from $4,1 billion on significant volume growth in the Dry Mortars business and a market shift towards high strength cement which influenced a significant change in the cement product mix.

Despite losing a full month of production and sales in April 2020 due to the Covid-19 induced national lockdown the cement volumes recovered in subsequent months, with particularly strong performance in the third quarter closing at full year cement volume performance at 6 percent below prior year.

According to the group, demand was strong but volume growth was limited by capacity constraints owing to the loss of production during the April 2020 lockdown.

In the Dry Mortars business, volumes rose 115 percent compared to the prior year on the back of the relaunch of the Supagrow and SupaFix range backed by active market sensitisation of the products which has led to wider product adoption.

Gross profit margins grew 12,4 percent to 60,6 percent.

Lafarge reported an operating profit of $1,9 billion from a loss of $2,7 billion on a combination of the revenue growth, reduced costs and reduction in foreign exchange losses.

Net monetary position during the period remained favourable in inflation terms which resulted in an increase in the net monetary gain to $406 million from prior year’s $759 million, culminating in a profit for the year of $3,1 billion from a loss of $3,5 billion.

Basic earnings per share improved to 38 cents from a loss of 44 cents in the prior year. Total assets remained flat at $4 billion.

The impacts of Covid -19 pandemic are likely to remain posing challenges to businesses and impact on performance. But Katsande said the cement maker will continue to adapt its business strategy so as to thrive in the changing environment

Lafarge did not declare a dividend due to the uncertainties that prevail in the economic environment and to preserve working capital.

Business Weekly

CONSTRUCTION of Afrochine Dinson Colliery’s coking coal and coke oven battery projects in Hwange under the first phase is now complete with the US$30 million investment creating 300 jobs.  

In April, the company announced that it had started heating up its furnace in preparation for the start of metallurgical coke production.  The firm, a subsidiary of Chinese-owned steel producer, Tsingshan Holding Group, is one of the nine new coal mines and coking plants President Mnangagwa visited in July last year and is set to become the largest and most advanced coke oven in Zimbabwe. 

Speaking during a post-Cabinet briefing on Tuesday, Information, Publicity and Broadcasting Services Minister Monica Mutsvangwa said Mines and Mining Development Minister Winston Chitando has informed Cabinet that the projects were now complete.  

“Regarding the Construction of the Afrochine Dinson Colliery plant for coking coal production in Hwange, it was reported that the construction of the coking coal oven battery and the coking coal plant were both 100 percent complete.  

“The project has created 300 jobs to date,” she said.  

Afrochine Dinson 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. 

The company which has also announced the intent to build a power station at its plant in November this year plans to produce about 400 tonnes of coke per day in the near future to meet local and regional demand of the product. 

Afrochine Dinson has also started construction for the second phase of their project, as the company seeks to deepen the value addition drive, which feeds into Zimbabwe’s Vision 2030 of an empowered and prosperous upper middle income economy. 

On the Eureka gold mining project in Guruve, Minister Mutsvangwa said Cabinet has been informed that the investment is almost complete.  The project, which is owned by Dallaglio Investments, is one of the mines being resuscitated as the Government targets a US$12 billion mining economy by 2023.  

“The Minister of Mines and Mining Development reported that the refurbishment of the Eureka Gold Mine in Guruve, Mashonaland Central province overall progress is at 94,4 percent,” she said.  

Reconstruction works at the mine were commissioned by the President in 2018 as part of a grand strategy to maximise on Zimbabwe’s economic endowment and driving the economy towards an upper middle income economy by 2030. 

Eureka was forced to shut operations after running into viability problems two decades ago with capital at the centre of the mine’s troubles. 

“At the  Bravura platinum exploration project in Selous, Mashonaland West, procurement of equipment to carry out the drilling programme is now 90 percent complete. Sampling of the economic horizon is now 45 percent complete.  The project has now employed 54 people from the surrounding communities and nearby towns,” said Minister Mutsvangwa, adding that the Unki Debottlenecking project in Shurugwi, Midlands province, was overally at 62 complete.  

The US$12 billion mining strategy was launched by President Mnangagwa in 2019 to increase the sector’s contribution to the economy. The projected increase represents a 344 percent jump from US$2,7 billion achieved in 2017.  By 2030, the Government projects that the mining sector would be contributing an upwards of US$20 billion.