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Gvt to introduce a Command Agriculture like principle to mining

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Gvt to introduce a Command Agriculture like principle to mining

The government has pledged to come up with a mining support programme for the artisanal small-scale mining sector which will operate more or less on the principle of Command Agriculture.

By Shantel T Chisango

Speaking at a Zimbabwe Miners Federation (ZMF) meeting held Thursday at Rainbow Towers, Mines and Mining Development Minister Honorable Winston Chitando said that the government has resolved to create a support program for miners similar to Command Agriculture.

“Cabinet agreed to come up with a mining support program for artisanal and small-scale mining which will operate more or less on the principle of the Command Agriculture,” said Chitando.

He further assured miners that support was imminent since the matter was discussed at a cabinet meeting held two weeks ago.

“That was agreed and announced at a cabinet meeting two weeks ago. There will be support to the artisanal and small-scale mining sector,” he added.

He further mentioned that the government is not excluding the disabled from the mining supporting program but has rather created a desk that will meet their needs.

“There are a number of issues related to people with disabilities and we created a special desk and that desk will also cover the women and the youth’s interests.”

During the meeting, Chitando applauded ZMF for being a line of communication regarding what will be transpiring in the small-scale sector, since it represents small-scale mining.

Chitando said that the government engages with ZMF and the Chamber of Mines when in need of speculating issues happening in the small-scale mining sector, and he thanked the two organizations for making the government’s work easier.

“When we have an assessment of what is happening in the sector, we engage these two organisations and it is important that members channel their views to these two organisations. It makes sit easier for us as the ministry. Just imagine if we were to engage the 45 000 miners on an individual basis,” he said.

Chitando lastly alluded to the role being played by the small-scale sector and its importance in the achievement of the 12 billion dollar goal.

Prospect Resources fundraises for Arcadia lithium

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Prospect Resources fundraises for Arcadia lithium

Prospect Resources — developer of the Arcadia lithium project near Harare — has begun discussions with financiers to unlock funding for the staged development of a petalite pilot plant needed to achieve near-term production, the mining junior said last week.

The company is in discussions with financiers, strategic corporate and institutional funders.

Talks to consider developing a joint venture with a large corporate investor are presently in the early stages, while discussions with potential offtake partners in relation to its spodumene (chemical grade lithium) profile and staged development plan are underway.

In its half-year financials for the period ended December 31, 2020, Prospect said it had completed a strategic view which recommended construction of a smaller, commercial-scale petalite pilot plant at the Arcadia Lithium Mine.

At Arcadia, Prospect has huge deposits of both technical grade (petalite) and chemical grade (spodumene) lithium, but wants to rapidly progress the former through a low risk, low cost and high return near-term production under a staged development plan.

Lithium is envisaged to contribute to the Government’s plan to grow the mining sector to US$12 billion by 2023.

Already, mining is Zimbabwe’s largest foreign-currency earner, contributing over 75 percent of total export earnings last year.

Studies have shown that Prospect can have easy access the market, achieve higher technical certainty, reduce risk and cut capital outlay and operating costs than using the revised production process to near-term production.

“It was assessed that the potential increase in “petalite lithium” recovery (through floatation process alternative) was insufficient justification to compensate for the higher technology risk for start-up operations,” Prospect said.

In line with the revised phased development model, the junior lithium miner said it had agreed to appoint an independent, lithium-focussed engineering firm to undertake the revised feasibility study.

This will entail front-end engineering and design to increase technical certainty and reduce execution risk in providing greatest accuracy in equipment selection, sizing and project economics.

“This development strategy allows risk to be managed progressively, reduce upfront capital, supports reduced execution period and will be undertaken with the objective to achieve nameplate capacity of 2,4 million tonnes per annum (Mtpa) outlined in the feasibility study,” Prospect added.

The company notes that while staged development was the focus, Prospect had the ability to go straight to the nameplate potential of 2,4Mtpa, while internal assessment of 0,6Mtpa and 1,2Mtpa showed the project can deliver good economics.

The project has pre-tax net present value of US$710 million (after 10 percent discount), pre-tax internal rate of return of 71 percent and 15,5 years life of mine.

The Sunday Mail

Fidelity official gold buying prices Friday 19 March 2021

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Fidelity official gold buying prices Friday 19 March 2021

Fidelity Printers and Refiners (FPR) official gold buying prices Friday 19 March 2021

  • SG 90% AND ABOVE 49 662.56/kg
  • SG ABOVE 85% BUT BELOW 90% $48 830.23/kg
  • SG ABOVE 80% BUT BELOW 85% $47 720.45/kg
  • SG ABOVE 75% BUT BELOW 80% $47 165.56/kg
  • SAMPLE BELOW 10g BUT ABOVE 5g $48 275.34/kg
  • FIRE ASSAY CASH $49 940.00/kg

 

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

Gemology Centre, transparency necessary in rebuilding Gemstone sector

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Gemology Centre, transparency necessary in rebuilding Gemstone sector

Zimbabwe needs to improve its regulations on gemstone mining and trading at the same time creating a Gemology Centre which will be responsible for certifying and pricing Gemstones in order to increase our exports of the stones back to yesteryear’s heights, legendary Gemstone miner Mr. Jean Rheiner has said.

Rudairo Dickson Mapuranga

A Gemology Centre is an office that supports the efforts of small-scale miners and traders and allows the Government to capture the true value of its gemstones based on international guidelines.

The country has since lost its place as one of the largest suppliers of the world’s aquamarine and topaz among other stones’ spot due to unclear and straining regulations taking an exporter over 2 weeks to process papers yet taking less than 4 hours in other countries in the region.

In Zimbabwe, an exporter will pass through more than 10 offices and waits for 2 weeks or more for a permit yet it is attainable in a single day in other countries.

Rheiner said it was important for the country to rebuild its gemstone sector back to yesterday’s heights as this will help the country in achieving President Emmerson Dambudzo Mnangagwa’s vision for the mining sector becoming an upper-middle-income earner by 2023.

He said it was of great importance for the government to facilitate the growth of the sector through opening schools that teach and encourage citizens to impress their gemstone wealth and safeguard it from smugglers.

“When I came in the 1980s, Zimbabwe was very big on aquamarine and topaz production. How can we rebuild that today?  It has to be redone but in redoing it has to be facilitated of course.  In Madagascar, there are schools which teach them how to do it.” Rheiner said.

Rheiner lamented the failure by the Minerals Marketing Corporation of Zimbabwe (MMCZ) to have a simple process for gemstone exporters. The process takes more time than in other countries leading to exporters getting frustrated thereby choosing other destinations.

According to Rheiner, for the growth and development of the gemstone mining and exporting sector, a Gemology Centre was of uttermost importance. The Gemology centre will function better separated from MMCZ but supported by the government.

“We need to have a gemological Centre in Zimbabwe. The centre needs to be supported by the government away from MMCZ as in Afghanistan which is being led by Zimbabwean Gemologist Clever Sithole. “he said.

According to one of Zimbabwe’s finest young Gemologist Mr Maison Phiri, a gemology centre was the way to go in supporting and establishing the gemstone sector. However, trade policies and mining laws are to be favourable for the gem industry.

Phiri said the focus for the country should be building such an initiative in order to become a regional centre for gemstone trading.

“I cannot say detached or not detached from MMCZ, however, it is true that a Gemology Centre is the way to go. But that is not just the issue. It starts with the change of gemstone mining and trade policies. We need to stand up to the table and compete with Zambia, Mozambique and South Africa policies in terms of market attractiveness. Next, we need to identify what this Gemstone Centre shall be capable of doing. If it is done well, it can actually become a regional Centre. Because this Gemology Centre as I envision it is absent in the whole of SADC.” Maison said.

According to Phiri, the export procedure needs to be shortened and cheapened in relation to other minerals simply because the supply is the artisanal miner who sometimes produces 2 cups of gemstones and maybe a value of US$100 but still has a market. Most of these miners do not have tenure and need an incentive to achieve sustainable mining. On the side of buyers, the export procedure is long and buyers would rather buy gemstones in Zambia than in Zimbabwe because of this. We need to reduce the persecution of gemstone dealers by relaxing some of our regulations he concluded.

This article first appeared in the March 2021 issue of Mining Zimbabwe Magazine

Chitando hails ZMF transformation

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Chitando hails ZMF transformation

Mines and Mining Development Minister Hon Winston Chitando has hailed the ZMF for taking a more formalised business approach.

Speaking at the Zimbabwe Miners Federation (ZMF) Stakeholders meeting held in Harare the Minister said commendably that the Federation was taking professional business direction.

The Minister said he recalls the Federation, as recent as two years back, had no operating offices making it difficult for the biggest mining body in the country to be taken seriously.

“The ZMF has drastically improved and I am impressed with the business approach the Federation is taking. Not to offend anyone but it was difficult to take them seriously because as recently as two years ago the organization didn’t have any operating offices. We did not know where to find them,” said Chitando.

Chitando said as important players in the mining sector it is imperative that the ZMF matches mining organisations like the Chamber of Mines’ way of doing business as the two organisations are crucial players in achieving a 12 billion mining industry by 2023.

“We do have two representatives of players in the mining sector, the Chamber of Mines and Zimbabwe Miners Federation (ZMF). The Chamber of Mines representing largely the medium to large scale mines and the ZMF representing the small scale and artisanal miners. ZMF and the Chamber of Mines are very important in the achievement of the 12 billion dollar goal. What is important, and what makes me feel very happy is that the ZMF formed a strategic line of interest that has been formalised is being capacitated to represent the interests of its membership,” Chitando said.

ZMF is on a concerted effort to improve its way of doing business. It recently amended key reforms to its constitution, partnered with over 25 mining equipment and services providers, launched a website and is currently pushing for timely issuance of Mining titles in a quest to have a more formalised ASM industry to support President Mnangagwa’s 23 billion mining industry by 2023 vision.

Its President Ms. Henrietta Rushwaya on Tuesday donated compressors to various women associations emphasizing that the main hurdle in the Artisanal Small-scale Mining (ASM) sector is the lack of mechanization. The compressors were donated to associations which include Mberengwa Miners Trust, Guinea Fowl Mines Trust, Great Zimbabwe Miners Trust among others.

 

 

ZMF lauches website

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ZMF lauches website

The Zimbabwe Miners Federation (ZMF) on Wednesday launched its website www.zimminersfed.org in an endeavour to keep miners and investors informed on the organizations’ business.

According to the developers who made a presentation at an event held at Rainbow Towers on Wednesday 17 March 2021 the website is responsive, automatically responds to the user’s preferences and can be accessed on many devices with an internet connection.

“The Zimbabwe Miners Federation (ZMF) is a responsive website that easily responds to the user’s behaviour and environment based on screen size, platform and device orientation. As a user switches from their desktop, laptop to iPad, or mobile phone the website automatically switches to accommodate for resolution, image size and scripting abilities. The website can be accessed globally on most devices,” the developer said.

The website outlines the duties of the ZMF, its Vision, Mission, Aims and Objectives. The website also has a live chat option to enable miners to communicate easily with Federation officials from anywhere on the globe as long as there is an internet connection. The website also has a news section to keep visitors abreast with development within the Artisanal Small-scale Mining sector.

Speaking at the Zimbabwe Miners Federation (ZMF) Stakeholders meeting held in Harare recently Mines and Mining Development Minister Hon Winston Chitando said commendably that the Federation was taking admirable professional business direction.

“The ZMF has drastically improved and I am impressed with the business approach the Federation is taking. Not to offend anyone but it was difficult to take them seriously because as recently as two years ago the organization didn’t have any operating offices. We did not know where to find them,” said Chitando.

Chitando said as important players in the mining sector it is imperative that the ZMF matches mining organisations such as the Chamber of Mines’ way of doing business as the two organisations are crucial players in achieving a 12 billion mining industry by 2023.

About Zimbabwe Miners Federation (ZMF)

The Zimbabwe Miners Federation (ZMF) is a government initiative to effect sustainable growth and meaningful transformation of the artisanal and small-scale mining industry. It is Zimbabwe’s largest mining body with over 1.5 million members, who contribute an annual average of 60% of the total gold deliveries to Fidelity Printers and Refiners (FPR) the country’s sole gold buyer.

 

 

Mining accidents claim 84 lives in Midlands

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Mining accidents claim 84 lives in Midlands

Eighty-four people died in 2020 due to mining accidents in the Midlands province alone amid calls for improved workplace safety.

Between January and February this year, eight people have already lost their lives to mining-related accidents.

Most accidents take place in uninspected and unsafe mines where artisanal miners work without supervision as they search for gold.

The Minister of State for Midlands Provincial Affairs and Devolution, Larry Mavima, revealed this during a recent Zanu-PF Provincial Coordinating Committee (PCC) meeting at the Winnery Convention Centre in Gweru on Saturday.

“Last year, the province lost 84 lives through mining-related accidents,” he said.

“Similarly, in the month of February as a province, we experienced another four mining-related deaths bringing the total number of mining-related deaths to eight this year only.”

Minister Mavima said the fatal mining accidents were common in uninspected and unsafe mines. Artisanal miners are popular for operating in disused mines, some of which would have been abandoned many years back.

“Given the foregoing, we are working with the Ministry of Mines and Mining Development to improve general safety in the mining industry and closing down all mines that are not inspected and are unsafe,” said the minister.

Zimbabwe Miners Federation (ZMF) spokesperson, Mr Dosman Mangisi, concurred with the minister saying unmonitored mining activities were the root cause of the accidents. Artisanal gold mining activities have been on the increase across the Province.

“The major causes of these accidents are unsupervised mining operations, lack of people who can lead and monitor operations, especially on areas of drilling and blasting. That is where we see a number of accidents taking place,” said Mr Mangisi.

Discipline, consistency and alignment in the Mining Sector

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Discipline, consistency and alignment in the Mining Sector

Mining is the linchpin of the Zimbabwean economy. It is positioned there through the National Vision 2030. Discipline, consistency and alignment are critical as we are poising ourselves for growth as a country.

Edmond Mkaratigwa

One area that Zimbabwe needs to continue tackling and mastering is the discipline in policy consistency and in maintaining scaled-up energy for legal, policy and practice alignment to the national vision.

The main glue to the achievement of those aspects is the availability of a definable national ideology. Critically a definable national ideology cannot be overemphasized as it casts the line to be towed, of-course within the confines of national statutes, conditions and feasibilities. The world is a hotchpotch of ideas (both new and old) and countries are not spared from the confusion associated with the different perspectives, their attractiveness mainly due to availability of funding and acceptability into the “league of smarter nations”, yet the country must choose that which works most for itself before such adaptations, and for its political, economic, social, technological and environmental sustainability and posterity agendas. This article in that line of thinking raises debate on why national legal and policy frameworks are sometimes inconsistent, lacking timely alignment particularly with a special focus on specific mining areas and, lacking the discipline to keep the policies and practices legally and administratively stable. Focus is given to riverbed mining as an example.

In Zimbabwe, riverbed mining was recently banned by the government. Riverbed mining spans from alluvial and eluvial, to diluvial mining. Riverbed mining has existed in the country for many years and flip floppingly, it has been legalized, illegalized and both legalized and illegalized. The current scenario is the latter.

Existing legal and policy positions allow riverbed mining only in Save and Angwa Rivers. Without adequate data to substantiate the claim by environmentalists that only Save and Angwa Rivers are mature enough to sustain riverbed mining, the main idea is whether the country should accept every new idea that comes without giving adequate thought to the broader national impact of the move to national sustainability. Another view is whether the oscillations backwards and forwards will not continue into the near future, creating a negative atmosphere of inconsistency, indiscipline and endless legal and policy recalibrations.

Indeed, riverbed mining has got many merits and demerits to environmentalists and other livelihoods sustainability options but the argument superior to those two is whether those considerations will significantly feed into the national vision 2030. Zimbabwe has boasted of gold deposits and sometimes these deposits are in our rivers which will finally deposit the minerals into the oceans. Current gold production levels have been going down, partly due to increased restricted mining areas. Particularly, responsible mining is critical to balance between mineral production, mitigation of adverse impact on the environment and how the mining operations can help towards achieving the national vision 2030.

What is even more important is the national strategy and methodology adopted towards the vision. Definitely in that regard, in the short to medium terms, the country needs money to transform and position itself on the best pedestal for growth through industrialization which all needs funding. The country has opened itself for business investment from about and far and has to also lead in its quest to achieve its vision by adequate facilitation that requires measured and well-thought-out strategies, cooperation and unity of purpose.

Whereas riverbed mining is becoming more preferable by many local and foreign investors due to the simplicity of alluvial over reef mining methods involved, it is important to strengthen monitoring of operations while avoiding moving forwards and backwards without adequate justification. The main motivations are two-fold. Firstly, the gold that is yielded, and secondly, the de-siltation that occurs leaving the river able to hold huge volumes of water for livestock, human use and agricultural activities all along the stretch of the river. The river’s ecosystem will once again grow back. Currently, large swathes of rivers are dry during the dry season and hence being unable to sustain the communities that live along the river or the associatory ecosystem. Once desilted, the river will be able to store accessible water.  Green-belts will possibly be created, from which serious agricultural activities can be done.

River sand mining is a big issue in many countries including India and sand abstraction is now believed to be at a faster scale when compared to the natural development process of sand particles in the rivers. Given the continued high demand for sand in the construction industry, a framework has to be developed for sustainable abstraction than to simply ban sand abstraction completely, especially in a developing country. The same applies to the Zimbabwean context with regards to the many forms of mining. The country needs to be led by its ideology and vision, and all influences that come along should not detract the country from its main objectives. The existence of advocacy is critical in all societies and these advocates should also understand and support the national thrust and help craft frameworks that can be implemented in phases, and incorporating the advocates’ ideas which are normally international, without fully throwing off the gauntlet.

In ending, advocates who normally overly get to be dogmatic about ideas may not be as constructive, in the current Zimbabwe that requires more of a middle-of-the-road approach to its development. Investors in their various classes are coming-up in different forms and with different areas of interest, but certain areas like riverbed mining can be made acceptable with particular conditions for example where small-scale miners are concerned. The fact that Angwa and Save Rivers have been left for riverbed mining is also a good case study for the broader riverbed mining sustainability in the country and that should not just be a matter of stopping its existence. It only confuses when this kind of mining is again opened within a short space of time from the last ban as that reflects poor discipline, consistency and alignment of the national policy and legal frameworks to the national vision and ideology.

On the other hand, Angwa and Save rivers are not as prolific when it comes to riverbed gold mining.  The mining sector to a larger extent demands high capital investment and may involve long-term investment planning hence the need to ensure the maintenance of policy, legislative and administrative discipline, consistency and alignment in our unwavering move towards attracting national investment and achievement of vision 2030. Lack of discipline, consistency and alignment which are keys to national development, can keep the country engulfed in corruption, over-bureaucratization that breeds corruption, as well as subsequent nepotistic over meritocratic tendencies. Nepotistic approaches can lead to targeted flexing of particular policies and laws; a practice that the government has moved away from and strongly condemns.

[Edmond Mkaratigwa (Ph.D. Candidate of Energy Innovation and Sustainability; holder of an MBA in Energy and Sustainability and Chairperson of the Parliamentary Portfolio Committee on Mines and Mining Development. The article is personal and independent from positions associated with the author)].

Chimona invests US$500 000 in Bubi

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Chimona invests US$500 000 in Bubi

MIDLANDS-based, Chimona Mining Company, has spread its wings to Bubi District in Matabeleland North where it has acquired new gold mining rights and will be setting up a processing centre under a US$500 000 investment.

The venture is expected to create more job opportunities and promote formalisation of artisanal mining activities in Bubi, which is one of the gold-rich districts in the country.

Speaking during a recent familiarisation tour of the new mine in the Inyathi area, Matabeleland North proportional representation legislator, Honourable Elizabeth Masuku, called on mining communities to play their role in economic transformation.

She said Chimona was an established indigenous gold and quarry mining firm and that the gold resource in the Bubi community presents a huge opportunity for locals to participate in building the economy towards an upper-middle-income status by 2030.  

Hon Masuku said Ward 12 communities, where the mine is being situated, should join hands with mining investors in their areas so as to derive maximum benefits such as employment and other downstream enterprise developments.

“It’s my greatest pleasure to grace this familiarisation meeting with Chimona Mining Company, which I am proud of because it is our own Zimbabwean mining company,” she said.

“It’s clear that the company is championing Vision 2030, which was unveiled by our President of the Republic of Zimbabwe, His Excellency Honourable Emmerson Mnangagwa. I foresee huge economic activity around Inyathi.

“There is a need to set up horticulture gardens here as workers around this place will need vegetables and many agro-foods, retailing, and many other economic activities.

“As the company grows, let’s also grow economically. I am well informed that the mining company has pledged to assist women and youths in mining groups around the district with mining equipment. Let’s embrace that and grow ourselves.”

The managing director of Chimona Mining Company, Mr Marufu Sithole, explained the company’s mission and strategic objectives, which he said were anchored on inclusive development. He said while his company began in the Midlands province, they were delighted to spread wings to Matabeleland.

“We are here as Chimona Mining Company to unveil ourselves to you the community around here. We have acquired mining rights and we are a company that believes in Zimbabwe’s economic agendas,” he said.

“We mine in communities and we seek to also empower the very same communities. We will employ the local people, assist syndicates and small-scale miners that may need assistance. We drive to help the mining sector meet its US$12 billion target by 2023 and also to raise impetus towards Vision 2030.

“We want to drive this target and vision through mining communities. We want to see life through mining. I urge you all to brace up for this.”

Mr Sithole is the first vice president of the Zimbabwe Miners Federation, an umbrella body for all small-scale miners in the country. 

The mining sector is one of the key pillars of Zimbabwe’s economy and is expected to realise up to US$12 billion milestone earnings by 2023. 

A number of mining investment projects are at different stages of implementation covering a diversity of key mineral exploits, which should feed into the US$12 billion milestone.

The event was attended by Lupane East legislator, Bongani Dube, who is a member of the Parliamentary Portfolio Committee of Mines and Energy, ZMF officials and community leaders.

Caledonia Mining over the moon about debut GDXJ Index inclusion

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Caledonia Mining over the moon about debut GDXJ Index inclusion

Caledonia Mining Chief Executive Officer (CEO) Steve Curtis has expressed his joy on the company’s inclusion on the Global Junior Gold Miners Index (GDXJ) for the first time following the GDXJ Index’s first quarter 2021 review.

By Shantel Chisango 

Mr. Curtis said the inclusion of the company in the GDXJ Index is a huge step in raising the company’s profile among investors.

“I am delighted with our imminent inclusion in the GDXJ Index. The listing of our shares on the New York Stock Exchange (NYSE) American has increased our liquidity significantly and our inclusion on the Index should further raise our profile among retail and institutional investors.”

He further added that the addition of the company to the Index has come at an excellent time especially with the commissioning of the Central Shaft to be completed in the first quarter of this year.

“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.”
The GDXJ Index forms the basis of various passive gold sector investment funds in the North American market, the most significant being the $5.2 billion VanEck Vectors Junior Gold Miners ETF.
The addition of Caledonia to the Index will occur on Friday, March 19, 2021.

The VanEck Vectors Gold Miners (GDX) exchange-traded fund (ETF) is the most liquid vehicle for investors and traders to gain exposure to gold mining companies. The ETF was established in 2006 by VanEck in the midst of gold’s bull market as securities were created to satiate the appetite of precious metals investors.

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