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I am still in charge – Kunaka

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Fidelity Printers and Refiners (FPR) general manager, Fradreck Kunaka, says he is still in charge at the country’s sole buyer, refiner, and exporter of gold until the board “completes the process of the proposed unbundling of the company”.

Last month, the executive told Business Times he was leaving the company at the end of his contract saying “my curtain at Fidelity is coming down at the end of the month (March) after a good relationship with the company”.

Kunaka said the proposed unbundling of FPR, which is a unit of the Reserve Bank of Zimbabwe, was one of the reasons he was leaving the company.

He was, however, singing a different tune last week.

“Developments at Fidelity will be communicated through the board at [the] appropriate time but as it stands, I’m still at the helm of the organisation,” Kunaka told Business Times.

Efforts to get a comment from the FPR Board or Reserve Bank of Zimbabwe were fruitless at the time of going to print.

Well-placed sources at FPR said the delayed processes of unbundling of the company into two units-gold refining and printing and minting- gave Kunaka a new lease of life.

Under the planned unbundling of FPR, The RBZ will wholly own the printing and minting business but will retain 40% shareholding in the refining entity.

A 50% stake in the refining entity will be offered to the large-scale gold producers, while 3% and 7% will be offered to the major FPR gold buying agents and the small-scale producers through their representative bodies, respectively.

Well-placed sources at the central bank said the RBZ and Fidelity were consulting potential shareholders on Kunaka’s successor.

Kunaka has been at FPR for 20 years, six of which as general manager.

There was serious pressure, however, from other quarters for him to step aside following the decision by the government to unbundle FPR.

Some of the new shareholders were said to be wanting to bring in a new boss who they think can further their agenda.

The central bank is planning to partially liberalise the sector which has seen Fidelity being the country’s only buyer, refiner and exporter of gold for more than 40 years.

The monopoly, however, has been criticised by some who were seeking to invest in Zimbabwe’s gold sector.

RBZ is expecting that the gold producers’ compliance levels in the trading of gold will significantly increase due to the fact that gold dealers will be part of the decision-making process in gold trading.

The privatisation of FPR comes after lobbying from some players in the mining business.

However, Kunaka believes partial privatisation of Fidelity would not yield much results as there will be one entity with various players instead of various companies competing to buy gold.

FPR has been failing to pay miners for their gold delivered, resulting in them smuggling the yellow metal to alternative markets.

Zimbabwe has also been losing at least US$100m worth of gold every month due to smuggling, according to Home Affairs Minister, Kazembe Kazembe.

There have also been unfriendly policies, which have resulted in unsatisfactory deliveries to FPR.

Last year, about 19.1 tonnes of gold was delivered to FPR from a target of 28 tonnes due to smuggling.

Zimbabwe could have missed out on gains it could have harvested from record high gold prices of over US$63,000 per kilogramme for the bigger part of 2020.

As a result, some potential shareholders believe that Kunaka would not fit into new shareholders’ plans as some companies suffered during his stint at the helm of Fidelity Printers & Refiners.

 

 

Business Times

MPDM praises Rushwaya for mining equipment donations

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Zimbabwe Miners Federation (ZMF) President yesterday donated a compressor to the Manicaland People with Disability in Mining (MPDM) Association at a handover ceremony held in Harare.

Rudairo Mapuranga

The MPDM Association praised Rushwaya for the donation and thanked her for considering their impact on the growth and development of the mining sector.

The Association received a compressor and accessories from the ZMF President as she moves towards considering special interest groups in mining like women, war veterans and the disabled.

Speaking at the handover ceremony held in Harare on Wednesday Ms. Rushwaya said the MPDM benefited from equipment donations in an effort to see small-scale miners taking the centre stage in achieving President Emmerson Mnangagwa’s vision to see the mining sector fetching US$12 billion annually by 2023.

“As we had promised we give you this compressor as a gift to recognise your role in the attainment of the President’s vision for the mining industry to achieve US$12 Billion by 2023. We thank you for coming and receiving this “gift” Rushwaya said.

Rushwaya has been on a national tour and has so far donated compressors and accessories to various mining trusts in an effort to capacitate the small-scale and artisanal miners.

She has been on a massive drive to formalise and regularise the small-scale and artisanal mining sector so that the country’s President’s vision is achieved in part through the participation of ASM.

The government is on record saying the ASM sector is a critical player in the country’s economic development as some mineral deposits are more viable for mining to small-scale mining operations. The small-scale mining sector at the moment is the country’s largest contributor to the country’s gold deliveries to the country’s sole gold buyer and exporter Fidelity Printers and Refiners.

MPDM praises Rushwaya for mining equipment donationsSpeaking at the same event MPDM chairperson and founder Mr. James Mtisi praised Rushwaya and the ZMF CEO Mr. Wellington Takavarasha for considering their input in achieving President Emmerson Dambudzo Mnangagwa’s vision for the mining sector to achieve a revenue of US$12 Billion annually by 2023.

“We thank the ZMF President Madam Henrietta Rushwaya and the CEO for this kind gesture. With the equipment, we are going to offer more to the economy. We would want to employ many people at the same time assisting our fellow disabled.”

“Our wish has to make an impact in the economy so that we won’t be dependent on anyone. We want to help in achieving the US$12 billion roadmap,” Mtisi said.

Due to the demands and dangers of working underground, or in areas where water can pose a threat, compressed air has been an invaluable source of both energy and safety equipment for the hard-to-reach places where minerals and fossil fuels reside. Donations of compressed air systems by Rushwaya and her team will provide value to miners as they will now use more efficient methods for resource extraction.

Common Mining Applications for Compressed Air (Compressors)

Mining applications where compressed air is especially useful include:

Pneumatic Tools – Compressed air is an excellent source of energy for power tools such as drills, wrenches, hack saws and other vital mining equipment that needs to be used in the deep underground stretches of the mines.

Blasting – Compressed air systems offer safer mediums for use in blasting operations. High velocity compressed air streams can be vital in some mining situations.

Material handling – Materials like coal dust can be better handled when compressed air is mixed, allowing for fluidization. In addition, compressed air can be used in conveying material in mining as well.

Cleaning – Compressed air can also be used for purging unwanted particles from filters and other spaces amid the dirt and dust of the mining operation. It is a clean source of air and can be used effectively without the need for additional cleaning materials. This can help extend the longevity of critical mining equipment and reduce any downtime needed for maintenance.

Ventilation Systems – Compressed air has a long history of providing ventilation to increasingly deep mine tunnels. It is a safe and breathable source of air that can be used in hazardous mining environments. In addition, displacement blowers can also utilize compressed air systems for ventilation. In coal mining for example, displacement blowers are used to provide the needed air ventilation to mining sites.

Methane Gas Extraction – Methane gas buildup in a mine can be lethal. The risk for a static electric spark igniting methane as well as actually breathing the gas are both dangers for miners. Compressed air systems properly fitted and designed for use in dangerous environments can help extract the gas through the use of blowers and vacuum pumps for coal mining operations.

 

Cautious Optimism Over Muzarabani Oil And Gas

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Green Governance Zimbabwe Trust (GGZT) says oil and gas prospects in Muzarabani, despite offering unique investment opportunities, should be viewed with cautious optimism, as mineral wealth seldom translates to development.

This follows the recent signing of a petroleum exploration development and production agreement (PEDPA) between the Government of Zimbabwe (GoZ) and two Australian arms Geo-Associates and Invictus.
Geo-Associates owns the controlling stake in Invictus Energy, the Australia Stock Exchange-listed company which made significant progress in exploring oil and gas in Muzarabani.

 

In a press statement, GGZT said it has been closely monitoring development in Muzarabani where reprocessed data gathered, Mobil in the1990s shows evidence of the potential existence of oil and gas.

“GGZT views this new territory of untapped oil and gas deposits with cautious optimism despite unique and competitive investment opportunities, given that the industry has various potential downstream linkages.

“Previous experience of mining revenue- even in many resource-rich African countries, shows natural resource wealth does not always translate into sustainable economic development and improvement of human livelihoods.

“Broadly, GGZT urges government to adhere to principles of good governance, embrace Free Prior and Informed Consent (FPIC), community beneficiation, environmental degradation, and tax compliance to avoid conflict issues like the Mozambican case.

“As envisioned by GoZ is targeting energy self-sufficiency yet this cannot be a goal in itself if it does not stimulate a green industrial revolution which to sustainably implement poverty alleviation as a key priority given our low socio-economic status.

Apart from the potential for energy self-sufficiency, electricity generation, production of liquid petroleum, liqueed petroleum gas (LPG), fertilizer production and petrochemicals, opportunities which must be leveraged,” read part of the statement.

Mines and Mining Development Minister, Winston Chitando recently signed on behalf of government with the international rms involved in hydrocarbons prospecting to start a development programme for the asset.

On its part government has been touting the oil and gas prospects as a game changers, with Chitando claiming that successful exploration could see the country producing oil by next year.

Chitando said the signing of the PEDPA-which provides the framework for rapid progression of the Muzarabani oil and gas project offers value chain benefits, new investments and technologies accruing from exploration.

However, without open contracting, a globally accepted norm which boost transparency and accountability, anticipated investments of between US$15 million and US$30 million to drill two oil and gas test wells in Muzarabani by October 2021 could be without tangible benefits.

GGZT admits that general development of oil and gas can unlock foreign revenues, create jobs and boost economic growth, but urges government, based on previous experiences, to promote responsible investment.

Delays in the finalization of amendments to the Mines and Mineral Bill was also pointed as a structural barrier to successful exploitation of vast mineral wealth, with recommendations for the enactment of a Petroleum Law.

“It is without doubt that successful exploration of Zimbabwe’s oil and gas industry represents a huge,
unique and competitive investment opportunities given the signicant potential for value chain
linkages.
“GoZ must demonstrate commitment to improve the regulatory environment of the mining sector first, consult widely on the exploration of hydrocarbons, including gas with a view of setting a comprehensive Petroleum Law.

“These announcements have given rise to much excitement for ‘ordinary’ Zimbabweans hoping for improvements in their living conditions, it seems government is looking forward to billions of dollars in export revenues and foreign direct investment (FDI).

“As there has been hardly any progress in amending the Mines and Minerals Bill a key legislation, the new oil and gas subsector presents another huge opportunity for government to chart a new path of promoting good governance,” said GGZT.

 

263Chat

Ban on use of mercury: Artisanal miners oblivious of new law, others remain defiant

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A DOZEN men brave the scorching heat from a hot summer afternoon as they carry sacks of ore on their backs from a disused mine in Esigodini to an open area where a heap of bags is fast piling up.

The men — artisanal miners — are moving the ore from a mine shaft they say is between 100 to 120 metres deep, to an open field from where it will be transported to a stamp mill.

The disused mine belonged to a German mining firm that stopped operations years ago after it became unsustainable as a result of high operational costs but the mine still has gold deposits hence the artisanal miners are working there.

More than 40 omakorokoza (artisanal miners) work long hours, day and night at the disused mine searching for the precious yellow metal.

It’s a laborious job that pays handsomely for the lucky ones who strike gold but the search for the precious mineral comes with health complications for artisanal miners.

The continuous pounding of the stamp mill as it crushes the ore to separate the gold, feels the air as each group of artisanal miners readies to get to the final stages of the long process of gold extraction.

One artisanal miner Sibusiso Mlambo shows the Chronicle news crew the damage to his hands caused by handling mercury in the final stage of refining the gold.

His fingertips on both hands have retained a yellowish colour that almost obscures his fingerprints and Mlambo says this was brought about when he started handling mercury to purify gold.

In artisanal mining, mercury is mixed with gold-containing materials, forming a mercury-gold mixture, which is then heated to obtain the gold. As the mercury-gold mixture is heated, the air fills with fumes as the liquid metal evaporates — leaving behind a lump of gold.

It’s a dangerous process which can lead to significant mercury exposure and health risks.

Mlambo knows the risks of handling mercury but says he has no choice.

“We all know the risks of using mercury but it’s the only chemical readily available to us to purify our gold. We are just a group of miners who come together in the disused mine to earn a living and we can’t afford these new methods of purifying gold without using mercury,” said Mlambo.

Asked if he is aware that the use of mercury has been banned in the country as of December 2020, Mlambo shakes his head and shrugs.

“I don’t read newspapers or listen to the radio. Where will I get the time to do that? I’m always in the shafts or at the stamp mill working,” he said.

His colleague Absolom Nleya chips in.

“The Government or whoever banned the use of mercury must give us alternatives to use to purify our gold and it must be cheap and readily available otherwise we will continue using mercury as long as we can buy it here in Esigodini.

“It’s only those big companies or established miners who can afford to use cyanide to extract gold, we don’t have the money or the capacity to do that so using mercury is the quickest way to get our gold,” said Nleya.

A teaspoon of mercury costs R150 in Esigodini and the artisanal miners need about four teaspoons to purify gold from a truckload of ore.

However, the two artisanal miners are not completely oblivious of the health risks associated with mercury as they described health problems such as weight loss, body weakness and trembling hands, which they say they started experiencing after exposure to mercury over the last five years.

Mercury has been used to extract gold for centuries. It is inexpensive and simple — often allowing miners to produce gold in a single day.

Developed nations have adopted cleaner, safer alternatives for extracting gold and enforced strict rules on mercury use.

In 2016 IPEN, a Stockholm-based network of charities focusing on health and environment, collected hair samples from over a thousand artisanal miners from 25 countries including Kenya, Myanmar and Indonesia, that were tested for mercury.

IPEN found that more than 40 percent of those tested had mercury levels greater than 1 part per million — exceeding the United States Environmental Protection Agency’s safe exposure level.

High mercury levels can damage the nervous, digestive and immune systems and poison the lungs, kidneys, skin and eyes, according to the World Health Organization (WHO). Pregnant women also risk giving birth to babies with congenital diseases.

Back in Zimbabwe the ban on the use of mercury presents artisanal miners with a challenge to find other means of purifying gold but the thousands of those miners scattered across the country are either unaware of the risks of using mercury or just don’t care.

What are the alternatives?

Although many miners use mercury in artisanal and small-scale gold mining, it is possible to safely and economically recover gold without it, says Tawanda Musekiwa, an environmental expert formerly employed by the Environmental Management Agency (Ema):

“There are a number of mercury-free techniques that are safer for miners, their families and local communities and the environment, which if used properly can also help miners market their gold at higher prices.

“And using these various mercury-free techniques artisanal and small-scale miners can achieve high rates of gold recovery while also protecting themselves. They vary from panning, sluicing, use of spiral concentrators, vortex concentrators to chemical leaching,” said Musekiwa.

The most common alternative to using mercury is a process known as chemical leaching, which makes use of the chemical properties of gold to leach it from crushed ore.

“This process is mostly used in large-scale mining operations but has been increasingly adopted in small-scale mining because of its high gold recovery rate.

“The best practices for chemical leaching are a combination of pre-concentration and mill leaching as they lead to the least amount of waste, a short processing time for miners and high gold recoveries,” said Musekiwa.

He however, warned that when chemical leaching is employed, it is important for miners to handle the chemicals properly and ensure that they are properly used and stored to avoid health and environmental concerns.

“Cyanide is often the preferred chemical used in leaching. Cyanide is highly toxic and great care must be taken when using it. However, in contrast to mercury, cyanide does not persist in the environment,” he said.

In December last year, Zimbabwe ratified the Minamata Convention banning the use of mercury in mining and regulatory measures for its release from industrial equipment like boilers, incinerators and power stations among others.

The convention was ratified following a motion moved by Environment, Climate Change, Tourism and Hospitality Industry Mangaliso Ndlovu in the National Assembly before its adjournment for 2020.

The Minamata Convention on mercury was adopted at the Fifth Session of the Inter-Governmental Committee in Geneva, Switzerland on 19 January, 2013 and is a global treaty whose objective is to protect human health and environment from the adverse effects of mercury.
Zimbabwe becomes the 116th country to ratify the Treaty and the 51st in Africa.

In resolving to make the bold decision to ban the use of mercury in Zimbabwe, Minister Ndlovu stated the following reasons:

“Mercury is a toxic pollutant that can circulate globally through the oceans and the atmosphere for years or even decades, and can cause significant harm to human health and the environment, sometimes very far from its point of origin. Acute or chronic exposure can be fatal; the World Health Organisation lists it as one of the top ten chemicals of major public health concern,” he said.
Zimbabwe’s most significant mercury sources are from artisanal or small-scale gold mining production, dental amalgam and waste water treatment. The country’s mercury use is already strictly controlled under a number of legislations.

Small-scale miner, Nqobani Siziba, who runs a mining operation in the Inyathi area, in Bubi District that employs an average of 30 workers reckons that it will be a hard to convince artisanal miners to completely stop using mercury.

“Each mining operation is unique and presents its own set of challenges. Artisanal miners have relied on mercury for years despite its dangers to their health and the environment.

“They go into the shafts, say for three days, get their ore crushed at a stamp mill on the fourth day and use mercury to extract the gold, sell it and share the proceeds, all in under five days. So, asking these guys to find alternative ways of extracting gold from crushed ore without using mercury is going to be very difficult,” he said.

Siziba has built concrete tanks at his mine that he uses to extract gold using the process of chemical leaching.

“Chemical leaching requires the availability of water and electricity and is preferred by established miners who are not looking at quick-fix solutions to extract gold but I must say it’s an expensive process that requires long hours of manpower on a daily basis,” he said.

According to the Reserve Bank of Zimbabwe’s gold buying arm, Fidelity Printers, small scale gold miners contribute about 60 percent of the gold produced in the country annually.

Zimbabwe Mining Federation (ZMF) chief executive officer Wellington Takavarasha implored miners to adhere to the new regulations on the use of mercury.

“It’s important for miners to note that the ban on the use of mercury is a crucial move and long-awaited effort to reduce its exposure to miners and communities after so many years of rampant use and disposal into the environment. There are other alternatives that miners can use to extract gold without the use of mercury,” said Takavarasha.

Observers however, say Zimbabwe is not ready to implement the ban on mercury use because the small-scale mining sector is not yet formalised and structured for proper regulation and control.

The Minamata Convention seeks to attain effective and sustainable ways of eliminating the use of mercury by 2022.

The economy of Zimbabwe is being sustained by gold mining with artisanal and small-scale miners contributing more than the large-scale miners.

Banning mercury use without an adequate action plan will therefore have a significant effect on the economy.

What is needed is to come up with action plans that are consistent with the Minamata Convention and then train as well as provide financial assistance to the miners during the transition to mercury-free gold mining.

 

The Chronicle

Caledonia commissions US$67m Blanket mine shaft

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Caledonia Mining Corp. has started operations at its US$67 million Central Shaft at Blanket Mine, the company announced on Tuesday.

The shaft, which has taken six years to complete, was wholly funded through internally generated cash and will see Blanket mine’s output rising to between 61,000 ounces and 67,000 ounces this year, from last year’s record production of 57,899 ounces.

The mine expects to reach 80,000 ounces production in 2022.

“I am delighted to announce that our new Central Shaft, which is the deepest shaft of any gold mine in Zimbabwe, is fully operational,” Caledonia Mining Corp. CEO Steve Curtis said in a statement on Tuesday.

“We can now start to hoist rock, men and material on a daily basis, which will solve our hoisting constraints and facilitate the planned expansion in mine capacity targeting 80,000 ounces of gold production per year.”

Caledonia Mining Corp. also announced an increased US$0.12 quarterly dividend on Tuesday, the fifth such since October 2019. The company believes the planned increase in production, firm bullion price and cost containment will help it sustain the higher level of dividend payments.

The company’s revenues hit US$100 million in the 2020 financial year, while gross profit was US$47 million.

 

NewZwire

Zim among top global oil, gas prospects

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Zimbabwe’s Muzarabani oil and gas exploration project has made it to the list of this year’s Top Five oil and gas Wildcat drilling compiled by leading global energy price, research and analysis site — OilPrice.com.

This comes after developer, Australia Stock Exchange (ASX) listed Invictus Energy, signed a petroleum exploration development and production agreement (PEDPA) with the Government of Zimbabwe.

The PEDPA marked a major milestone in the quest to explore for commercially exploitable hydrocarbons in Zimbabwe and provides the basis for accelerated progression of the Muzarabani oil and gas initiative.

Discovery of oil/gas means huge benefits for Zimbabwe’s stuttering economy, including energy self-reliance, production of petro-chemicals, Liquified Natural Gas (LNG), fertliser, increased exports and fiscal revenue among others.

Invictus has successfully raised circa US$10.4 million (A$8m), through a share placement, to fund a 2D seismic campaign, procurement of long lead drilling equipment, basin design and working capital, ahead of exploration drilling this year.

The Cabora Bassa Basin project, encompassing the Muzarabani Prospect, has entailed reprocessing and reinterpretation of a US$30 million highly promising data set gathered by Mobil in the early 1990s.

Wildcat drilling, is a form of high-risk exploratory drilling, which entails drilling for oil or gas in unproven or fully exploited areas with no concrete historic production records or has been completely exhausted as a site for oil and gas output.

“We have analysed the hottest gas prospects of 2021 and present you the Top 5, fully cognisant of the fact that in depressed times the highest impact wells might come from high-risk wildcats,” Oilprice.com said in a recent article.

The site said Zimbabwe represented arguably the most disputable project in its Top Five ranking, given it has no known hydrocarbon reserves and has routinely relied on other neighbouring countries to cater for its energy needs.

“This year, however, might alter that picture completely as appraisal activity heats up in the African nation’s Rufunsa Basin,” Oilprice.com wrote.

This comes as Invictus Energy, operator of SG 4571, has had traversing over the prospective area for site acquisition and plans seismic surveying programmes in 2021 in preparation to drill the Mzarabani-1 oil/gas test well, a 4-way dip closure spread across over 200 square kilometres.

The Muzarabani wildcat will be drilled around October-November 2021 to a total depth deeper than 4000 metres and will aim to confirm the prospect’s prospective resources of 4.5 Trillion Cubic feet.

“According to the operator (Invictus Energy), the total assessed reserves of the SG 4571 stand at 9.25TCf and 294 MMbbls,” Oilprice.com said.

Other wildcat projects include Russia’s Skuratovskaya, Cyprus’ Cronos, Indonesia’s Rencong and Lebanon’s Block 09.

Invictus Energy will invest between US$15 million and US$30 million towards drilling at least one oil and gas exploration well, before end of this year, chairman Joe Mutizwa said.

Mtizwa said the ASX listed company was highly confident about the prospects for potential discovery of commercial quantities of oil and gas in Muzarabani.

Speaking during the PEDPA signing ceremony at State House last Friday, President Mnangagwa said Zimbabwe’s oil and gas sector represented huge, unique and competitive investment opportunities given the significant potential for value chain linkages.

 

Business Weekly

Mining group initiates feasibility study for Mat South project

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DIVERSIFIED and Zimbabwe-focused mining group, Premier African Minerals has initiated a definitive feasibility study (DFS) and a funding strategy to be applied in future development of its Zulu lithium and tantalum project in Matabeleland South.

The Zulu deposits, which are owned by Premier, are among the 25 projects that were recently granted Exclusive Prospecting Orders by Government for the next three years to March 2024.

Premier said the Zulu deposits were contained within an Exclusive Prospecting Rights area greater than 200 square kilometres with major potential lithium, cesium, tantalum pegmatite prospects.

The company said the existing resource estimate was already defined and described in the announcement made on 18 March 2021.

“On 20 November 2017, we announced the results of Zulu scoping study that showed that there is an opportunity to develop a robust, low capital cost lithium mine with low operating costs,” Premier African Minerals chief executive officer, Mr George Roach said in a recent public update.

“This, combined with strong prices for spodumene concentrates and sustained demand for high-grade petalite, support our confidence that the next step for Zulu is the completion of a DFS.

“The projected timeline to complete the DFS at Zulu has been ratified by Bara Consulting and their appointment is immediate.”
Bara Consulting is a United Kingdom-headquartered independent engineering consultancy focused on serving the global mining industry.

It undertakes studies ranging from conceptual to full definitive feasibility studies.

Mr Roach said the projected timeline to complete the DFS at Zulu has been ratified by Bara and their appointment was immediate.

He said completion in this timeline would be subject to certain laboratories to be appointed to complete additional test work and assays within the allotted time frames.

Premier has also appointed a drilling company, Geodrill, as the main drillers at Zulu and are familiar with the region and the location. It is hoped that mobilisation is expected to be less time-consuming and more effective.

Geodrill will also provide certain utilities to the exploration camp and these will include solar power and groundwater resources as well as scalable workshop and basic housing.

“The appointment of Geodrill is effective immediately and mobilisation is commencing. Premier has sufficient funds to pay the mobilisation charges from existing resources and the full drilling camp is now expected to be completed and operational by the end of April 2021,” said Mr Roach.

He said a geological mineral processing engineering firm, Hainstech, has completed a site visit to Zulu and reported on the deposit and its potential as announced on 1 August 2017.

“Hainstech will provide guidance in regard to both the resource development and the proposed flow sheet to follow from expanded test work to be conducted during the completion of the DFS.

Premier is yet to conclude final financing details but expects to update shareholders at its next annual general meeting, which is expected to be announced in the coming weeks, said Mr Roach.

Govt hikes fuel prices

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Fuel prices went up with effect from Monday this week in line with the weakening exchange rate and rising world oil prices.

Motorists will now have to part with US$1,34 for a litre of petrol, up from US$1,30 since March 5, 2021. Diesel remains unchanged at US$1,32.

In Zimbabwe dollar terms, petrol will retail at $112,96 from $109,17 while the pump price for diesel moved up slightly to $111,77 from $110,41.

Even though brent crude oil price at US$64 a barrel has fallen below recent peak of US$69,95 per barrel, the price is still above beginning of the year of approximately US$52.

Analysts say while the government and the central bank were using a monetary targeting framework to keep the exchange rate and prices in check, the country could still suffer from cost push inflation including imported inflation from fuel.

There is continued pressure on the cost of doing business and this has seen prices of basic commodities going up in the last couple of weeks.

Confederation of Zimbabwe Retailers president Denford Mutashu, told a local radio station on Sunday that prices of basic commodities have significantly increased in the past few days.

He said suppliers and manufacturers indicated the continued pressure on the general cost of doing business in the economy owing to increases in fuel.

“Tollgates have also gone up, and the general cost of procurement of raw materials that has continued to push prices to the north.

“Statutory increases, as well as local licences such as shop licenses that have shot up dramatically, have also contributed,” Mutashu said.

Some analysts have, however, called on Government to reduce the cost of fuel taxes to cushion the consumer and business from inflationary pressures caused by fuel price increases.

Taxes and levies on fuel constitute almost US50 cents of the total fuel prices, resulting in fuel becoming more in Zimbabwe compared to the region.

Cutting fuel prices could thus be a smart stimulus package given adverse economic impacts of Covid-19 to both businesses and the consumer.

 

Business Weekly

Henrietta Rushwaya gets vaccinated against Covid-19

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  • Rushwaya becomes the first high-ranking mining Industry official to publicly participate and encourage participation in the vaccination program.
  • She encourages Artisanal and Small-scale Miners to vaccinate against the novel coronavirus.

Zimbabwe Miners Federation (ZMF) President Ms. Henrietta Rushwaya received her first jab of Sinopharm’s Covid-19 vaccination early today at Borrowdale clinic and has encouraged Artisanal and Small-scale Miners to bulletproof against the novel coronavirus.

Rudairo Mapuranga

The ZMF President 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 becomes the first high-ranking mining Industry official to publicly participate and encourage participation in the vaccination program. She joins other high-ranking officials who include President Emmerson Mnangagwa, Vice President and Health Minister Dr. Constantino Chiwenga. Chiwenga was the first person to receive the jab in Zimbabwe setting the ball rolling for the government’s plan to vaccinate approximately 60 percent of the population.

The Chinese manufactured vaccine Sinopharm was issued with a Good Manufacturing Practice (GMP) certificate by Hungarian authorities, making it the first Chinese manufactured vaccine to receive such a certificate from an EU country.

The Covid-19 pandemic vaccine is also the first Chinese manufactured vaccine authorised for emergency use by the EU.

According to the International Society for Pharmaceutical Engineering, GMP is a system for ensuring that products are consistently produced and controlled according to quality standards. It is designed to minimize the risks involved in any pharmaceutical production that cannot be eliminated through testing the final product.

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

In Zimbabwe, from 3 January 2020 to 4:34 pm CEST, 4 April 2021, there have been 36,911 confirmed cases of COVID-19 with 1,524 deaths, reported to WHO. As of 25 March 2021, a total of 44,135 vaccine doses have been administered.

South Africa union seeks 15% wage hike from gold miners and Eskom

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South Africa’s National Union of Mineworkers (NUM) said on Wednesday it planned to seek a hike of at least 15% in a three-year wage deal at upcoming negotiations with gold miners and state utility Eskom.

NUM said it would consolidate the wage demands from all sectors it operates in, and would seek increases of between 15% to 20%, or 15,000 rand ($1,016) minimum, alongside other demands including medical aid contributions and covid-19 health and safety leave.

Higher gold prices, which reached a record in August last year, boosted 2020 earnings and offered mining companies a lifeline following production disruptions because of the covid-19 pandemic.

“Given the good dividend performances by mining companies NUM enters this season of negotiations in high spirit for a good settlement,” NUM said.

Gold producers have in the past argued that above-inflation wage hikes cannot be sustained unless prices also rise.

They say higher wages could also add to already high costs in an industry the has the world’s deepest mines.

Unions argue wages remain too low, a legacy of the apartheid era when the Black mining labour force was ruthlessly exploited.

The demands far exceed the current inflation rate of 2.9%, raising the prospect of tough negotiations with companies, including Sibanye Stillwater, Harmony Gold, and smaller producer Village Main Reef.

A double-digit wage increase is likely to pile further pressure on Eskom, which is choking under a mountain of debt, and regularly implements scheduled power cuts because of repeated faults at its ailing coal-fired power station fleet.

Eskom’s spokesman declined to comment on the demands.

Sibanye Stillwater’s spokesman said they would address demands during the wage talks.

Harmony Gold and Village Main Reef could not immediately be reached for comment.

Negotiations with Eskom are expected to begin on April 20, while an exact date has not yet been set for the start of talks with gold miners.

($1 = 14.7700 rand)