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Blanket mulls US$36m investment

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Blanket mulls US$36m investment

GWANDA-BASED gold miner, Blanket says it is planning to invest US$35,8 million in plant maintenance and the implementation of its new underground operation called Central Shaft.

The massive capital outlay will also be deployed towards setting up the firm’s solar power plant, which is key to ameliorating hurdles caused by erratic electricity supplies.

Blanket Mine is controlled by the New York Stock Exchange-listed Caledonia Mining Corporation, which has announced plans to expand its footprint in Zimbabwe.

In its latest management discussion and analysis report, Caledonia said the capital expenditure commitments related primarily to materials and equipment had been ordered by the company and would be sold to Blanket.

“In addition to the committed purchase obligations set out above, Blanket currently intends to invest a further US$35,8 million in 2021 which is also uncommitted and includes US$12,4 million on the solar project and US$1,8 million on the optioned exploration properties,” said the report.

“Other than the proposed investment on the solar project and at the exploration properties, the committed and uncommitted investment will be used to maintain Blanket’s existing operations and implement the Central Shaft,” it said.

The company said committed and uncommitted purchase obligations were expected to be met from cash generated from Blanket’s existing operations and its existing borrowing facilities.

In respect of the cost of the proposed solar project, proceeds of a share offer will be used.

The company also revealed that it has leased properties for its administrative offices in Jersey, Harare and Johannesburg.

As of December 31, 2020, Caledonia had potential liabilities for rehabilitation work on Blanket — if the mine is permanently closed — at an estimated discounted cost of US$3,6 million.

Caledonia revealed that production in the year 2020 was 57 899 ounces, which was at the top end of the guidance range and was a new record for annual production.

It said the strong performance, despite the impediments arising from the COVID-19 pandemic, reflected the measures taken in previous quarters to improve tonnes mined and increase metallurgical recoveries. The company said the robust operating performance was supported by a rising gold price.

Profit for the year to December 2020 was US$46,6 million — almost 50% higher than that generated during the same period in 2019.

Caledonia said two weeks ago that it had received a major boost after being admitted to the MVIS Global Junior Gold Miners (GDXJ) Index for the first time.

The admission followed the GDXJ Index’s first quarter 2021 review.

The GDXJ Index forms the basis of various passive gold sector investment funds in the North American market, the most significant being the US$5,2 billion Van Eck Vectors Junior Gold Miners ETF, Caledonia said.

Caledonia chief executive officer Steve Curtis said the listing of the company’s shares on the NYSE American had increased the miner’s liquidity significantly and its inclusion on the index should “further raise its profile among retail and institutional investors”.

“The listing of our shares on the NYSE American has increased our liquidity significantly and our inclusion on the Index should further raise our profile among retail and institutional investors,” he said.

NYSE American, formerly known as the American Stock Exchange and more recently as NYSE MKT, is an American stock exchange situated in New York City.

It was previously a mutual organisation that was owned by members. Until 1953, it was known as the New York Curb Exchange.

“The addition of Caledonia to the Index will be an important milestone for our business and will come at an exciting time for the company with the commissioning of Central Shaft due to be completed in the first quarter of this year,” Curtis added.

 

 

NewsDay

Petra Diamonds delays release of probe into human rights

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Petra Diamonds delays release of probe into human rights

Petra Diamonds (LON: PDL) has delayed the publication of an internal probe into alleged human rights abuses at its Williamson mine in Tanzania after obtaining fresh information related to the case.

The company had originally committed to provide feedback on an investigation being carried out by an external adviser, in conjunction with its legal advisers, by the end of March.
Petra now expects to release the results of the inquiry and the company’s reaction to them by the end of April.

“The company has recently obtained further additional information relating to the allegations, which will help with the preparation of its report, and this information is currently being processed by the external adviser,” Petra said in a media statement.

The announcement comes only days after UK-based corporate watchdog RAID revealed it had further evidence of alleged abuses at the diamond mine.

The non-profit organization published a new report on March 25 that included dozens of eyewitness accounts on how security guards employed at Williamson allegedly abused their power.

THE ANNOUNCEMENT COMES ONLY DAYS AFTER UK-BASED RAID REVEALED WILLIAMSON MINE SECURITY GUARDS HAD INTENTIONALLY SWAPPED RUBBER PROJECTILES WITH METAL BULLETS IN THEIR WEAPONS

Among the testimonies, a former guard said rubber projectiles were intentionally swapped with metal bullets in their weapons, causing “serious harm” to local residents shot on Petras concession.

While rubber bullets can cause serious injury, even kill, they are not supposed to penetrate, whereas “the gun pellets can enter someone’s body and stay there,” the guard told RAID. “Someone would need an operation to remove them, and if they are close to the gun, they can definitely cause death.”

Petra reacted to the report by saying it had taken a number of actions to address the situation at the mine, including the replacement of the third-party security contractor Zenith.

The diamond miner, which also has three operations in South Africa, formed in February an internal committee to oversee the ongoing investigation. The move came after UK-based law firm Leigh Day filed a lawsuit against the company in the High Court of England on behalf of 32 anonymous individuals.

The Williamson mine, active since 1940, is in Shinyanga, one of Tanzania’s poorest regions. It produced a 54.5-carat pink diamond presented to Queen Elizabeth for her wedding in 1947.

Illegal miners incursions

The Africa-focused diamond producer has said the mine had been the target of illegal artisanal miners “for some time” due to challenges in securing the large perimeter of the license area.

“This illegal mining activity is managed by the mine operator Williamson Diamond Limited (WDL) and the local government authorities on an ongoing basis,” it said at the time.

Petra has dealt with the incursion of illegal miners at its operations before. Last year, it opened up some of its Koffiefontein mine’s tailings in South Africa to small scale miners. The move aimed at tackling illegal activities and solved some issues caused by artisanal miners at the asset.

It previously carried out a similar exercise at Kimberley, in Northern Cape, where small scale miners operated “the floors” of the property — an area previously worked by Kimberley’s founding miners.

The project, kicked off in 2017, was not a success. Its then joint venture partner, Ekapa Mining, reported a year later it was still spending R3 million (about $180,000) a month in security. Petra sold its stake in the Ekapa partnership in 2018.

Mining.com

S.A investor backs local interest in gold M&As

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S.A investor backs local interest in gold M&As

Africa’s biggest fund manager and a key investor in South African gold companies said any consolidation in the sector must benefit the country as well as shareholders.

The Public Investment Corp., which manages 1.91 trillion rand ($128 billion) of mainly South African government worker pensions, has a broader mandate than purely shareholder returns, said Mdu Bhulose, portfolio manager for mining and resources at the money manager. It also considers potential job losses, the welfare of communities in which mining companies operate as well as the interests of the broader South African economy, he said. That will affect the way it assesses, proposals, he said.
Bhulose’s comments come amid speculation that Johannesburg-based Anglogold Ashanti Ltd. and Gold Fields Ltd., could be takeover targets for foreign buyers because of their relatively low valuations. Neal Froneman, the chief executive officer of South African gold and platinum miner Sibanye Stillwater Ltd., has said the three companies should combine to avoid being bought by companies based elsewhere.

“Is this going to be a value destructive deal for the country?,” Bhulose said of the PIC’s approach to potential takeovers in an interview last week. “We look at returns, but also what impact it will have for all other stakeholders.”

The PIC is the biggest shareholder in AngloGold, holding 11.9%, and the second-largest in Gold Fields with 9.6%. In Sibanye, its 15.9% holding is the biggest of any investor.

Newmont Corp., the world’s biggest gold miner by market value, has a price-to-earnings ratio that’s more than double both AngloGold and Gold Fields, highlighting the discount at which the South African producers trade.

While AngloGold and Gold Fields have shifted their focus to more profitable operations elsewhere in Africa, Australia and the Americas, they retain their primary listings on Johannesburg’s stock exchange.

“If you trade at a discount, somebody that trades at a premium is going to buy you,” Froneman said in an interview earlier this month. “AngloGold, Gold Fields and even us, we are targets for North American producers.”

Gold Fields, founded by Cecil Rhodes in 1897, runs South Deep mine, its sole remaining asset in South Africa. AngloGold, which emerged from a mining empire created by Ernest Oppenheimer a century ago, sold its last mine in South Africa last year and has been mulling moving its primary listing elsewhere.

The combination of the three companies envisaged by the Sibanye CEO could save about $160 million in corporate costs and create synergies between Gold Fields and AngloGold’s Ghanaian operations, according to analysts at RMB Morgan Stanley. The deal could be compelling to investors if Sibanye offers a premium to acquire the companies, the analysts said.

“If the answer is that you will get more from the assets when you put them together than if they are apart, certainly there is merit to that transaction,” Bhulose said. “We need to evaluate what management teams can prove on paper in terms of creating value, and how they can manage these businesses to deliver more value.”

Bloomberg News (By Felix Njini and Loni Prinsloo)

Police Acts Tough On Illegal Miners

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Police Acts Tough On Illegal Miners

The Zimbabwe Republic Police says a cumulative 27 220 people have been arrested in connection with illegal mining activities across the country since Operation Chikorokoza Ngachipere was launched two years ago.

ZRP launched the operation to end unregulated mining activities towards the end of 2019 after some machete-wielding gangs sprouted in various mining communities terrorizing innocent villagers.

Over the weekend, 136 suspects were arrested countrywide with the police urging the public to adhere to mining laws.

“Police confirms that on 27/03/21, 136 people were arrested on Operation “Chikorokoza Ngachipere/Isitsheketsha Kasiphele and No to Machete Gangs”. Since the onset of the operation, a cumulative 27 220 people have been arrested,” wrote ZRP on its Twitter account.

“The ZRP encourages members of the public to adhere to all mining laws to promote safety and security in mining areas,” it added.
Illegal mining activities have been on a rapid increase across the country due to high unemployment rate prevailing in the economy.
Sadly, most of their operations disregard the country’s mining laws and environmental management practices.

In some mining areas, rival illegal miners’ groups have clashed, leading to high rates of brutal murders.

Investigations by the ZRP show that some errant members of the force are at the forefront of these illegal mining activities in some areas.

“We have had arrests in Jumbo, Mazowe, and Shamva of illegal artisanal miners. I admit we have arrested (police) officers at Jumbo. The law will take its course,” police spokesperson, Assistant Commissioner Paul Nyathi told journalists at a media training last year.

The government through the Reserve Bank of Zimbabwe have been encouraging illegal miners to formalize their operations and deliver their produce to the Bank’s gold buying unit, Fidelity Printers and Refiners.

However, a combination of mistrust of government and unfavorable export surrender requirements have deterred illegal miners from formalizing operations leading to the country losing a substantial amount of money to black market sales.

263Chat

International Company Wins Contract To Upgrade Feruka-Harare Oil Pipeline

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International Company Wins Contract To Upgrade Feruka-Harare Oil Pipeline

AN INTERNATIONAL engineering and management services provider, Penspen, has been awarded a contract by Zimbabwe’s National Oil and Infrastructure Company (NOIC) to upgrade the Feruka-Harare pipeline.

Under the ten-month contract, Penspen will support NOIC’s efforts to enhance its operational efficiency of the pipeline to meet increasing petroleum products demand.

The 208km-long Feruka-Harare pipeline network, which was originally designed by Penspen, is planned to undergo operational modifications to help meet the increasing demand of petroleum products such as diesel and gasoline.

Feruka is in Mutare and the oil pipeline ends in Msasa, Harare.

Penspen will be responsible for delivering detailed engineering and procurement support services for the pipeline project, as well as establishing a ‘series pumping’ operation at different sites across the region.

However, the cost of the project could not be verified.

Penspen Middle East, Africa and Asia Pacific Regions executive vice-president Neale Carter said: “This contract award is a testament to Penspen’s strong reputation and experience in Africa and we look forward to working with Petrozim on this exciting project.

“Penspen’s scope of work included in the project award demonstrates our range of capabilities in the region and beyond, as a leading provider of engineering services to the energy industry.”

The scope of the contract includes two new mainline pump-sets, piping modifications for the connection of new mainline pump-sets and two new power transformers to supply the new mainline pump-sets.

As part of the project, Penspen will also manage piping, instrumentation and metering skid modifications.

Additionally, the company will deliver electrical switchgear, transformers, switchboard, distribution board and a stand-by diesel generator with weatherproof enclosure and diesel.

Data shows Zimbabwe uses about 4 million litres of diesel and 3 million litres of petrol from an average of 1.5 million litres per day. At least 90% of the fuel consumed is transported by the Feruka oil pipeline while the remaining 10% is transported by road using tankers.

NewZimbabwe

B2Gold denied exploration permit renewal in Mali

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B2Gold denied exploration permit renewal in Mali

Canada’s B2Gold (TSX: BTO) said the Mali government had not renewed the Menankoto exploration permit, which formed a part of the Anaconda area and is located 20 kms north of its flagship Fekola mine license area.

The Vancouver-based company said that its Malian subsidiary, Menankoto SARL, had applied for a one-year renewal of the permit in early February.
“The company strongly believes that Menankoto is entitled to a renewal of the permit under applicable law and is engaged in ongoing discussions with the Malian government to clarify the situation,” B2Gold said.

The miner noted that since beginning its activities in Mali it has had a “positive and mutually beneficial relationship” with the country’s government.

Even after last year’s military coup in the West African nation, the company decided to boost output at its Fekola mine and examine other opportunities both in the country and across the region.

SINCE BEGINNING ITS ACTIVITIES IN MALI, B2GOLD HAS HAD A “POSITIVE AND MUTUALLY BENEFICIAL RELATIONSHIP” WITH THE COUNTRY’S GOVERNMENT

West Africa, one of the last frontiers for gold-mining investors, is likely to remain in the spotlight as the industry consolidates, chief executive Clive Johnson told MINING[dot]COM in September during a mining symposium.

The executive noted at the time that while B2Gold planned to examine deals, it would not “overpay” for assets as strong gold prices push up valuations.

He also emphasized the importance of gold mining to Mali, which accounts for 10% of the nation’s GDP and 25% of the government’s revenue that comes through taxes and other streams.

B2Gold, which expanded the mill at Fekola last year, noted the mine is projected to produce 530,000 to 560,000 ounces of gold in 2021. The figure does not include the Anaconda area, it said.

Mining.com

Miners quake over spike in robbery cases

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Miners quake over spike in robbery cases

A GOLD DEALER in Gwanda on Monday allegedly lost US$12 000 to armed robbers in the mining town.

The attack came at a time when miners in the gold-rich province have been raising concern over the recent spike in gold-related heists.

National police spokesperson Assistant Commissioner Paul Nyathi yesterday confirmed the robbery.

“We are also appealing to anyone with information that might lead to the arrests. At the same time, miners should be cautious in their operations,” he said.

Nyathi said police were looking for a five-member gang suspected to have robbed the miner.

However, some miners suspect that unscrupulous police officers might be behind the robberies, considering the precision and timing.

According to information shared on the miners’ WhatsApp groups, attacks on miners are now widespread.

“These groups seem to be many because yesterday in the afternoon and at Gwanda light industrial site, they robbed a gold dealer at gunpoint and went away with US$12 000,” one miner said.

Three other miners were reportedly attacked around the West Nicholson area, where at least seven suspects were arrested.

In another incident at Fools Investment Mine, robbers reportedly disarmed a guard of his .303 rifle.

Yesterday, the miners accepted an invitation for a meeting with the Criminal Investigations Department for Minerals, Flora and Fauna Unit to discuss the developments.

“It is believed the armed robbers are working with some of us in the community. We hope and wish as miners we can help come up with solutions to this ongoing problem,” a miner, Philemon Mokuele, said in a notice to colleagues.

 

NewsDay

Australia boosts iron ore exports as trade shrugs off China bans

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Australia boosts iron ore exports as trade shrugs off China bans

Australia expects to log record revenue from iron ore exports this financial year, as global steel-making recovers and the country bounces back from punishing trade sanctions on other exports applied by a hostile China.

A government report showed on Monday that proceeds from iron ore exports should total A$136 billion ($104 billion), making it the country’s most valuable economic export.

The mineral is expected to earn more than A$100 billion per year for the next half decade. Iron ore shipments are expected to rise from 900 million tonnes in 2020–21 to 1.1 billion tonnes by 2025–26.

China remains heavily dependent on Australian iron ore.

The report, by the Department of Industry, indicated gains from the export of copper, lithium and nickel – much prized by tech firms – are expected to offset lower contributions from coal.

Australia has managed to find new markets for its metallurgical coal following China’s crackdown on Australian imports, and which is expected to slice export values to A$23 billion from A$35 billion last year.

‘HEFTY’ SURPLUS

The report forecast LNG export values falling to A$33 billion for the year ending June 30 from A$48 billion last financial year and thermal coal exports worth A$15 billion from A$21 billion.

Gold exports are expected to rise to $A29 billion this year from A$25 billion, and copper exports to rise to A$12 billion from A$10 billion.

“Australia’s trade surplus is likely to remain hefty as goods exports increase in line with increasing imports,” said Rahul Bajoria, economist at Barclays.

China – upset by Australia’s accusations that Beijing attempts to influence domestic politics and at Canberra’s calls for a probe into the origins of Covid-19 – has reduced imports of Australian products from wine, lobsters and barley to coal and copper ore.

Not all Australia’s industries are upbeat about future prospects. Treasury Wine Estates, one of the world’s biggest wine companies, said ‍on Monday it would face an anti-dumping and countervailing duty rate of 175.6% for its Australian country-of-origin wine in China, after an investigation by that country’s Ministry of Commerce.

SUBSIDY ENDS

The Australian economy will also have to do without a pandemic wage subsidy scheme from this week, despite official warnings that up to 150,000 people could lose their jobs as a result.

The JobKeeper scheme, which initially saw A$1,500 a fortnight paid to staff via their employers, was announced last March after Australia imposed a nationwide shutdown that left thousands queuing outside unemployment offices.

Treasurer Josh Frydenberg said the programme had been an “economic lifeline” that has achieved the aim “of saving lives and saving livelihoods” over the past year.

He told reporters in Melbourne there was “no doubt that there will be some businesses that will continue to do it tough” but the subsidies were always designed to be “temporary”.

Australia’s unemployment rate fell to 5.8% in February – down from 7.5% in July 2020 – but the Treasury estimates between 100,000 and 150,000 jobs could be lost as a result of the change.

 

AsianTimesFinancial

Fidelity official gold buying prices Tuesday 30 March 2021

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Fidelity official gold buying prices Tuesday 30 March 2021

Fidelity Printers and Refiners (FPR) official gold buying prices Tuesday 30 March 2021

  • SG 90% AND ABOVE $49.08g
  • SG ABOVE 85% BUT BELOW 90% $48.26/g
  • SG ABOVE 80% BUT BELOW 85% $47.16/g
  • SG ABOVE 75% BUT BELOW 80% $46.62/g
  • SAMPLE BELOW 10g BUT ABOVE 5g $47.71/g
  • FIRE ASSAY CASH $49.36/g

 

Cash available. Fidelity Printers and Refiners prices will be changing daily in relation to world market prices.

Contact FPR

No. 1 George Drive, Msasa, Harare, Email: [email protected], Telephone: +263 242-486670, +263 242-486694, +263 242-487131, +263 242-447810-5

Chinese miner in fresh labour storm

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Chinese miner in fresh labour storm

Chinese-owned Fools Investment Mine in Hope Fountain near Bulawayo has reportedly dismissed all its underground workers without notice, prompting the trade union which represents workers to threaten to take legal action against the company.

The mine was recently summoned to the National Employment Council (NEC) for the mining industry to answer to charges of underpaying employees and failing to provide protective clothing.

The mine was also caught in the eye of a storm after one of its directors assaulted two employees over outstanding salaries.

The National Union of Mines Quarrying, Iron and Steel Workers of Zimbabwe (NUMQISWZ) regional officer Abraham Kavalanjila confirmed the dismissal of more than 30 employees.

“Fools Mine unfairly dismissed all underground workers and we have since written to them.

“The verbal response from management was that they maintain their stance. Very soon we will be taking them to court on unfair labour practices by the employer,” Kavalanjila said. “The union will not sit and watch employers breaking the law despite being advised on several times. If the Chinese are failing to run the mine, we call upon the government to put the company under judicial management. We believe the mine has potential if managed well.”

He said the mine was also failing to pay workers on time.

“On personal protective equipment (PPEs) yes, they have started issuing its workers. All those dismissed were not paid their salaries,” he said.

Kavalanjila said the outstanding salaries for the fired workers could be around US$300 000.

On March 25, NUMQISWZ wrote to the mine, demanding reinstatement of employees without loss of pay and benefits.

“We are made to understand that you unfairly instructed (name supplied) not to come to work with immediate effect without any reason. You are hereby instructed to reinstate the said employee without loss of pay and benefits.

“Also we demand the return with immediate effect to the work of all underground employees whom you also instructed them not to come to work. The duty of the employer is to provide a job to his/her employees.

“Following our last meeting, we advised the employer to rectify that, but to our surprise you are continuing with your wrong actions. We don’t believe in taking each other to the courts of law, but in this regard you are forcing the trade union to take that action or direction. All in all, we hereby demand the return of all underground employees…..with immediate effect, failure to do so we will be left with no option but legal actions against you,”” the letter read.

Mine manager Thabani Masuku said work in the mine was temporarily suspended for maintenance work. The mine last month was slapped with a $40 000 fine for allowing a foreigner, Zhang Zhongyi, to work as a metallurgist at the mine without a valid permit.

Zhongyi’s illegal stay in the country was exposed after he assaulted two workers who confronted mine management demanding payment of their outstanding salaries.

NewsDay

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