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Fradreck Kunaka leaving Fidelity

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Fradreck Kunaka leaving Fidelity

Fidelity Printers and Refiners (FPR) general manager, Fradreck Kunaka, is leaving Zimbabwe’s sole buyer, refiner, and exporter of gold, at the end of this month after six years at the helm, a local publication revealed.

Well-placed sources at FPR, a subsidiary of the Reserve Bank of Zimbabwe (RBZ), this week said his departure after 20 years of service, six of which as general manager of FPR, was part of an internal overhaul at the soon to be restructured company to create two units—gold refining and printing and minting.

The central bank will wholly own the printing and minting business and retain 40% shareholding in the refining entity.

Using a three-year average delivery of gold to Fidelity Printers, the central bank will offer 50% shareholding in FPR to the large-scale gold producers, 3% to major FPR gold buying agents and the balance of 7% to the small-scale producers through their representative bodies.

Kunaka’s replacement was, however, not immediately clear by the time of going to print.

Contacted for comment by Business Times, Kunaka confirmed that he will be leaving his position at the end of this month.

His departure followed a steady build-up of mounting pressure for him to step aside following the government’s decision to unbundle FPR.

“There’s always time for everything in life. My curtain at Fidelity is coming down at the end of the month [March] after a good long relationship with the company,” Kunaka said.

He added: “The unbundling issue at Fidelity is one of the major reasons for me leaving the company as new shareholders come in with their new employees who they think can further their agenda.

“This came at an opportune moment as my tenure as the general manager was coming to an end and I saw it wise to leave the company.

“I did all I could to serve the gold buying company [FPR] but everything has to end like now. We never know, the new management may take the company to even greater heights than we did. We leave them to their business and will be helping from the sidelines and whenever necessary.”

The RBZ is planning to end the gold monopoly by FPR, which has seen it 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.

Given the developments, well-placed sources told Business Times that Kunaka was expected to leave his position as it had become untenable.

Other sources told this publication that the tide finally turned following FPR’s failure to pay miners, resulting in them smuggling the yellow metal to alternative markets.

Zimbabwe has 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.

Zimbabwe could have missed out on gains it could have harvested from record-high gold prices of US$2, 070 in November 2020.

Government investigating unfair chrome claim allocations

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Government investigating unfair chrome claim allocations

The government is investigating unfair chrome claim allocations, Mines and Mining Development Minister Winston Chitando has said.

Chitando was responding to questions from miners at a Zimbabwe Miners Federation (ZMF) event held on Wednesday at Rainbow Towers in Harare. The Minister revealed that an inter-ministerial committee was formed to investigate the unfair allocation of claims ceded to the government.

“Zim Alloys, ZIMASCO had claims ceded to the government. On these claims, they were tributary miners working and producing chrome for over 15 years. When these were ceded, the miners were given the notice to vacate after other miners rushed to peg the same claims. We have created an inter Ministerial committee to investigate this unfair allocation of chrome claims. The investigations will be on a case by case basis and I’m confident we can conclude this by year-end,” Chitando said.

Chitando yesterday addressed miners at the ZMF Stakeholders Special meeting and hailed the organisation for taking a more formalised approach to doing business.

He touched on pressing issues in the mining industry including Mining title allocation, the 23 Billion dollar Industry, the gemstone sector, the cadastre system, disputes and many more.

The Minister received a standing ovation after the address and it was quite evident he had hit the right notes.

 

Government moves to speed up mining title allocation

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Government moves to speed up mining title allocation

The government through the Mines and Mining Development Ministry (MMMD) is moving to speed up mining title allocations a cabinet Minister has said.

This was revealed by Minister of Mines and Mining Development of the Republic of Zimbabwe Honourable Winston Chitando at a Zimbabwe Miners Federation (ZMF) function held in Harare yesterday.

Chitando admitted that the Ministry was overwhelmed by ballooning mining title applications which traditionally numbered 2000 – 3000 per year to which it now ranges to around 14 000 applications.

“Mining Title applications were traditionally around 2000 per year but now the number has drastically increased,” said the Minister.

Chitando also said the Ministry was allocated new vehicles to complement efforts to speed up Mining title allocation.

Answering the question on mining disputes, the minister pointed out that the country will be soon introducing a cadastre system which is a solution to the problem of land disputes in the mining sector.

“The cadastre system which is now being worked on will take care of most of the disputes so that there is no double allocation of claims,” said Chitando.

The Minister said the Cadastre equipment will be in the country by June of this year.

Mining Title issuance has been a hot issue in the Zimbabwe mining industry with some miners claiming to have applied for titles as far back as 2012 but nothing has materialised even after reapplying.

Cadastre system equipment to be in the country by June, Chitando

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Cadastre system equipment to be in the country by June, Chitando

Mines and Mining Development Minister, Honorable Winston Chitando has said that the equipment for the implementation of the cadastre system will be in the country by June 2021.

Speaking at a Zimbabwe Miners Federation( ZMF) event at Rainbow Towers, Chitando said regardless of the mishap that transpired last year when the cadastre was to be released, there is currently a transparent commitment towards the release of the cadastre system.

“There was a delay but the most important thing is there is a very clear path going into donating towards the cadastre system,” the minister said.

Answering the question on mining disputes, the minister pointed out that the cadastre system will be a solution to the problem of land disputes in the mining sector.

“The cadastre system which is now being worked on will take care of most of the disputes so that there is no double allocation of claims.” Said Chitando.

Moreso, Chitando mentioned that economic transformation in the country will not happen overnight, rather it is a process that needs commitment.

“Economic transformation is a journey, a process, but the most important thing is to follow the process. Once started, once followed, we will definitely go there.”

During the meeting, Chitando mentioned that ZMF and the Chamber of Mines are crucial in making the 12 billion mining industry achievable by the year 2023.

A Cadastre is normally a parcel-based, and up-to-date land information system containing a record of interests in land (e.g. rights, restrictions, and responsibilities).

Peter Dale and John McLaughlin (2000) say that in most countries, legal systems have developed around the original administrative systems and use the cadastre to define the dimensions and location of land parcels described in legal documentation.

The cadastre is a fundamental source of data in disputes and lawsuits between landowners. Land registration and cadastre are both types of land recording and complement each other. (Jo Henssen, Basic Principles of the Main Cadastral Systems in the World).

Notorious Chinese man Zhu cheating locals out of gemstones

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Notorious Chinese man Zhu cheating locals out of gemstones

A Chinese man known as Mr. Zhu is allegedly reported to be cruelly cheating locals out of gemstones and hurriedly pegging claims where the locals would have been working on.

A Mr. Mberikwazvo approached Mining Zimbabwe after reading a story we published yesterday of a man who got two loaves and Super as a token of appreciation and confirmed he knew Honamombe and he himself was a victim of Zhu’s shenanigans.

Mberikwazvo alleged that Zhu is a gemstone buyer who is usually approached by local gemstone miners and dealers. Mberikwazvo said to ensure he tricks the seller he buys a small quantity at a ridiculous amount and rejects the rest of the stones. He then tells the seller to show him the location of the stones so that he can show the seller the correct stones he prefers.

“I went to Zhou’s home at Philadelphia flats in Borrowdale with clear and specimen quartz gemstones. He then purchased a kg at $3 which was only a disguise to make me think he was a genuinely interested dealer. Zhou then said we should go to the mine location at Tsanzaguru in Rusape after expressing interest in buying more. He bought me sadza, chicken and a beverage then we went to the mine site”.

When we got to the mine site he rejected all stones saying NO GUDHA (no good), RUBBISH,” said the Mberikwazvo.

Mberikwazvo then left the mine in the company of Zhou late and his driver known as Tino the same afternoon only to hear that Zhu was seen at the very mine at 6 am the following morning.

Zhu struck once again buying a truck full of the quartz from the people at the mine excluding Mberikwazvo at a paltry US$20.

Zhu suspected to be an ex-Army officer evidenced by the uniform he wears is reported to use the same modus operandi on seemingly uninformed locals.

Zhu reportedly travels around in the company of his driver known as Tino.

Mining Zimbabwe sent Zhu a message for his comment but until the time of publishing, he had not responded.

Rushwaya donates compressors, says mechanisation a major huddle

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Rushwaya donates compressors, says mechanisation a major huddle

Zimbabwe Miners Federation (ZMF) President Ms. Henrietta Rushwaya said the main huddle in the Artisanal Small-scale Mining (ASM) sector is the lack of mechanization and has therefore promised to assist miners without equipment.

By Shantel Chisango

Speaking at a ZMF meeting held on Tuesday at Rainbow Towers, Rushwaya said lack of mechanization remains a huge challenge in the sector.

“Mechanisation remains an issue of huge concern in the small scale industry.” she lamented.

Rushwaya went on to donate compressors to several miners which include Mberengwa Miners Trust, Guinea Fowl Mines Trust, Great Zimbabwe Miners Trust and urged miners to up their game in order to contribute to the 23 Billion Mining Industry by 2023.

She further urged miners who need assistance with equipment to approach the ZMF so that they may be assisted where possible.

However, Rushwaya emphasised the importance of organizing groups in their constituencies which encompass every miner that needs assistance so that it makes work easier for the ZMF.

Furthermore, she stated that Exclusive Prospecting Orders (EPOs) remain a constraint to miners, especially in Matebeleland areas.

She mentioned that most miners in Matebeleland do not have any land to mine because of prohibitive EPOs.

In a move meant to push the ZMF towards a more business approach, yesterday saw the Federation amending part of its constitution in an event attended by General Council and Executive members from across the country.

BREAKING: ZMF amends constitution

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BREAKING: ZMF amends constitution

The Zimbabwe Miners Federation (ZMF) has amended its constitution at a meeting held at Rainbow Towers (formerly Sheraton) attended by General Council and the Executive Members.

Below are some of the resolutions:-

Executive Membership: Tenure has been adjusted from 3 to 5 years concluding with the end of the annual General Council Meeting of The Federation. Upon the expiry of such period, such member shall automatically retire from office and shall be eligible for nomination and re-election as a member of the Executive provided that he retains his qualification.

Vice President: The Federation will now have a single Vice President.

Regional reps: Ammended to eight from the previous seven representatives.

PLWD: Amended to include the Secretary for the Disabled in The National Executive after complaints that the disabled felt segregated.

More to follow…

 

 

 

 

 

ZDAMWU raises concern over casualisation of labour

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ZDAMWU raises concern over casualisation of labour

Zimbabwe Diamond and Allied Minerals Workers Union (ZDAMWU) has engaged with the government over the casualisation of labour in the mining sector stating that most employers are making workers sign consecutive fixed-term contracts on end.

By Shantel Chisango

In a letter addressed to the government, Legal and Grievances Officer Mr. Tsaurai mentioned that casualisation of labour in the mining sector is due to the fact that the National Employment Council ( NEC) has not set limits on a number of fixed-term contracts, therefore employees end up working for several years but being made to sign fixed-term contracts.

Section 12( 3a)  of the Labour Act states that an employee engaged on the basis of a casual contract is deemed to have become an employee on a contract of employment without limit of time on the day that his or her period of engagement with a particular employer exceeds a total of six weeks in any four consecutive months. He added that fixed-term contracts are mostly for temporary work or seasonal work, but the mining sector is these contracts by engaging workers on short term contracts, thereby destroying job security.

Tsauri further said that when they approached NEC last year on 10 December concerning this matter, they were not attended to.

ZDAMWU also urged the government to exercise its power by attending to this matter as soon as possible since NEC has not been helpful due to the fact that its Collective Bargaining Agreement (CBA) is outdated.

NEC  is a statutory body established in terms of Section 57 of the Labour Act [chapter 28:01].  It comprises a registered employers’ organization namely the Federation of Master Printers of Zimbabwe which advances employers’ rights and interests and the Zimbabwe Graphical Workers Union, a registered trade Union that advances the rights and interests of the employees in the Printing, Packaging and Newspaper Industry.

ZDAMWU is an organisation that helps in addressing challenges being faced by retired and current workers in the mining sector in Zimbabwe.

Chinese man gets access to minerals for 2 loaves and “super”

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Chinese man gets access to minerals for 2 loaves and “super”

A Chinese man got access to a chlorite quartz mine and bought a local man, Mr Honamombe two loaves, local opaque beer “Super” as a token of appreciation.

The incident that shook the local community took place in the Nyanga North Ruwange area.

Honamombe and his friends had previously dealt with the Chinese man selling him the healing stone thrice before until the Asian national persuaded Honamombe to show him where he was getting the stone.

Speaking to a source privy to the issue, Honamombe only realised too late after being confronted that he had made a costly mistake.

“We sold Zhou the Chinese man chlorite quartz three times before and were surprised to see him at the chlorite mine location in the company of Honamombe with 2 loaves and Super Chibuku,” said the source.

When confronted on why he had given away a valuable source of wealth for paltry foodstuff when they could have made a fortune from selling the stone only then did Honamombe realise his mistake. Zhou then rushed to peg the area and started moving equipment to the site.

Honamombe an ex-soldier then only recently moved to purchase a prospecting licence but it was too late.

The incident is a typical example of minerals getting taken from locals without getting any meaningful returns. This is mainly because many Zimbabweans do not know the value of minerals surrounding them and nothing much is being done to conscientise local communities of mineral wealth they have in their areas.

Commenting on the development Mines and Mining Development Parliamentary Portfolio Committee Chairman Hon Edmond Mkaratigwa said,
“It looks like an allegory and in fact more of a joke. The root cause of such eventualities includes incapacity less in terms of knowledge but more on unlocking the value of what they have and own as well as the inability to access relevant institutions.
“I have personally come across many and in that case, Women and Land, a local NGO intervened but agreements were already concluded. They can make money by investing in the sector but the main question is how? One of the easiest options is where the government has a full database of such national resources and with existing policy frameworks, if EIAs are duly conducted, such irregularities can be exposed. Community-based natural resources management is also another option but the country can strengthen the option found best.
Asked on what can be done to support Mining as is in Agriculture Mkaratigwa said similar models can be borrowed from Agriculture for the betterment of the mining sector.
“Like agriculture, some of the models can be borrowed. One of such is whereby a communal equipment base is set and miners can borrow for use for a fee, whenever they need the equipment. The other way is locally producing small-scale suited mining equipment which can be cheaper and locally maintained. That cuts the miners’ bills and allows circulation of foreign currency locally with positive effects on gold pricing and gold delivery payment models”.
“The case in point speaks to an aspect of contracts. All mineral resources belong to the state hence there is also a need of course to cascade mining issues to local levels. In this case, I still stand to be guided whether this was a commercial farmer or a communal landholder as both cases must have safeguards regarding uses of land and its transfer to other landholders,” Mkaratigwa concluded.

 

Government grants EPO to Premier African Minerals

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Government grants EPO to Premier African Minerals

Premier African Minerals Ltd, is pleased to announce the formal grant of an Exclusive Prospecting Order No. 1779 (EPO) over an area that encompasses the Zulu Lithium and Tantalum claims (Zulu) in the Fort Rixon district of Zimbabwe for a period of three years with effect from 12 March 2021 to 11 March 2024. Details of the grant of the EPO have contained in the Zimbabwe Government Gazette published last week.

George Roach, Chief Executive of Premier commented: 

“I am deeply appreciative of the Zimbabwe Government for the granting of this substantial EPO and Premier will reciprocate with mobilization for the commencement of the Definitive Feasibility Study (“DFS”) on the Zulu deposit which has an estimated completion time of 14 months. The EPO area is described in more detail below, and it is important that there are further known lithium-bearing pegmatites offering upside to Zulu as well as historic small gold mines, potential molybdenite and many scheelite (a tungsten mineral) occurrences within the area.

Zulu remains a significant deposit. Premier has previously published an in-house maiden Inferred mineral resource estimate prepared in accordance with SAMREC of 20.1 million tonnes grading 1.06% lithium oxide and 51 ppm Ta₂O₅ using a cut-off grade of 0.5% Li₂O. Since the maiden Mineral Resource Estimate, the geological model has been optimised as at least six new zones of lithium mineralisation have been discovered, supporting an exploration target of up to 80 million tonnes. Test work conducted by Anzaplan in Germany on behalf of Premier confirmed that low iron spodumene concentrates of up to 6.5% contained Lithium equivalent was attainable and an independent scoping study prepared by Bara Consulting for Zulu was most encouraging.

The granting of the EPO reaffirms the Zimbabwean Government policy that Zimbabwe is open for business and further supports the Ministry of Mines policy of creating a US$12 billion mining economy by 2023.

Premier expects to provide details in regard to further developments associated with Zulu and full details of the terms and conditions associated with the grant of the EPO in the near future.”

About Zulu EPO

The EPO area is prospective for and has a history of producing other minerals. The opportunities are briefly summarised below and are based on Bulletin 61 published by N.M Harrison of the Rhodesia Geological Survey, titled “The Geology of the Country around Fort Rixon and Shangani” in 1969 and which has not been independently verified by the Company.

LCT Pegmatites

Besides the Zulu Lithium, Caesium and Tantalum (“LCT”) Pegmatite), the EPO area has two other main LCT showings, the Deep Purple pegmatite veins and the Altyr pegmatite veins. Deep Purple is situated some 5km south-east of Zulu, Altyr is situated some 12 km south of Zulu. The first showing is small but according to the Bulletin of the Geological Survey (1969) is said to contain remarkably high lithium, caesium, tantalum, and beryllium grades. Altyr is somewhat larger and contains visibly identifiable amounts of spodumene, petalite and lepidolite, the three main lithium-bearing minerals of economic interest.

Further to these, there are many more small lithium-bearing pegmatites sub-outcropping north, east and south of Zulu. None of these have ever been tested to determine whether they are part of large pegmatite bodies. Particularly the eastern two-thirds of the EPO are mainly flat and covered by a thick layer of soil that makes any visual identification of lithium-bearing pegmatites impossible. Only systematic exploration of the EPO will help to discover more pegmatites of economic potential.

According to the geological interpretation of the EPO, Premier believes based on its own interpretation that LCT pegmatites could occur over a strike length of 24km, i.e., over the whole length of the EPO. Gold

The most western part of the EPO is underlain by a small part of the so-called Fort Rixon gold belt where industrial gold mining took place since the late 19th century. There are more than 100 small to medium-sized gold mines in this belt, none of them have been mined on an industrial scale since the 1960s. However, artisanal gold mining is carried out by the local population at many of these mines.

Besides an unknown number of new sites of artisanal gold mining and according to the Bulletin of the Geological Survey (1969), the EPO is known to host at least 6 old gold mines:

Mine

Tonnage mined (metric tons)

Average grade (g/t)

Acorn

1584

3.92

Cakewalk

2856

5.74

Morsel

7913

5.74

Pioneer

8651

3.65

Sheepskin

356

1.91

Walkover

9940

6.56

Presently, the Pioneer mine seems to be the most active site of artisanal gold mining. It is estimated that more than 200 local gold miners successfully exploit high-grade quartz reefs and veins.

Molybdenum

The mineral molybdenite, the principal molybdenum ore mineral, is known from the Zulu pegmatites in small, non-economic quantities since the 1950s. However, one diamond drill hole (ZDD37) intercepted up to 20m thick epidosites with disseminated molybdenite mineralization. This mineralization is most likely related to metasomatic processes due to the intrusion of the massive granitic pluton situated just north of the Zulu concession.

Careful exploration of the EPO could possibly unveil sites with economic molybdenum mineralization.

Tungsten

Since the 1950s, the Zulu pegmatites are known to carry small uneconomic quantities of scheelite, one of the two principal tungsten ore minerals. According to the Bulletin of the Geological Survey (1969), quite a few of the abandoned gold mines seem to be rich in scheelite, although no grades were given. Exploration of the EPO will demonstrate whether exploitable scheelite occurrences exist.

Other

Process test work by Anzaplan on Zulu pegmatites has shown that they contain large amounts of high-quality quartz and feldspar. Both could become potential by-products of the Zulu mine.  The other pegmatites of the region could also contain beryl, the principal beryllium ore mineral, and coloured gemstones like topaz, tourmaline, and others. Where the pegmatites are closely situated to ultramafic sequences, emerald may occur.

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