THE Hwange Thermal Power Station expansion programme closed the first quarter at 62,54 percent against a planned progress of 85,9 percent as the project was affected by interim payment certificates and the Covid-19 pandemic.
The US$1,5 billion expansion programme entails the addition of Units 7 and 8 with each unit expected to generate 300MW.
In an update on the first-quarter performance, the Zimbabwe Power Company (ZPC) said the period under review was a challenging one as generation at Hwange, which is the country’s largest thermal power station, was depressed.
“Taking a closer look at the projects being undertaken by Zimbabwe Power Company, Hwange 7 and 8 Power Station Expansion Project, which is expected to add 600MW to the national grid, registered progress of 58,29 percent at the beginning of the quarter and closed at 62,54 percent against a planned progress of 85,9 percent.
“The project was affected by Interim Payment Certificate (IPC) outstanding payments as well as effects of Covid-19. Significant milestones in the quarter included arrival and hoisting of Unit 7 and 8 generator transformers, tower erection as well as steam turbine installation,” it said.
During the period under review, ZPC produced 745,70 Gigawatt hours against a target of 1813,02GWh, representing a negative variance of 3,71 percent.
The output was, however, 34,92 percent above the output for the same period in 2020.
A MINER from Gwanda is on the run after he pushed his workmate down a 15-metre-deep shaft and set him on fire during a dispute over an undisclosed matter.
Matabeleland South acting provincial police spokesperson, Assistant Inspector Thabani Mkhwananzi confirmed the incident which occurred at Joy 4 Mine in Vhovha area on Saturday at around 7PM. He said the suspect, only identified as Mjoza, pushed Moffat Madera (22) down the shaft, threw a pile of clothes inside and threw in a burning log.
Asst Insp Mkhwananzi said a post-mortem report was yet to confirm whether the now deceased had died because of the fall or burns.
“I can confirm that we recorded a murder case which occurred at Joy 4 Mine in Vhovha area.
“Workmates who were seated by a fire fled from the scene as the two fought. Another mine worker who was working in another shaft heard noises and when he rushed to inquire everyone was gone and Madera was in the shaft which was now filled with smoke,” he said.
Asst Insp Mkhwananzi said the matter was reported to the police who attended the scene and Madera’s body was retrieved from the shaft.
He said Madera sustained serious burns.
Asst Insp Mkhwananzi said investigations were underway and appealed to members of the public with information on the identity and whereabouts of Mjoza to contact the police.
“As police we continue to urge people to desist from engaging in violence when facing disputes. People should find amicable ways to solve their disputes. We are concerned with violence which is occurring especially in mining areas as it appears to be on the rise and we as police will descend heavily on these perpetrators.
“Mine owners are also urged to maintain registers of their workers and to take down necessary particulars of their employees. In this case the suspect was employed at a mine but his name isn’t known. An identity of a person is crucial when they are on the run,” he said.
Last year Tesla surprised the electric car industry when it said its entry-level Model 3s made in Shanghai will be equipped with lithium iron phosphate (LFP) batteries.
LFP batteries are significantly cheaper and simpler to manufacture compared to NCA (nickel-cobalt-aluminum) and NCM (nickel-cobalt-manganese) cathode chemistries, but fare badly in terms of energy density – and therefore range, still motorists’ no 1 reason for not going electric.
Barely eight months after the cobalt and nickel-free version of the Model 3 first went on sale, it cornered 7.2% of the global market for full electric vehicles. It also constitutes 45.7% of total sales of Tesla’s most popular model in terms of battery capacity, according to data from Adamas Intelligence, which tracks demand for EV batteries by chemistry, cell supplier and capacity in over 100 countries.
VOLKSWAGEN HAS COMMITTED TO LFP FOR ITS LOWER END, HIGH VOLUME CARS AS PART OF ITS $29 BILLION PUSH INTO THE MARKET
Worldwide in the first quarter of this year, LFP-equipped cars like the Model 3, BYD Han and Hongguang Mini made up 15.7% of the overall market for battery-electric passenger cars – up from near zero in the first three months of 2020.
While in absolute terms nickel and cobalt deployment is rising rapidly as EV sales more than double year-on-year, on a sales-weighted basis the impact of LFP is startling.
The average nickel use per vehicle tumbled by 17.3% from Q1 2020 to Q1 2021, while per vehicle cobalt deployment is down 21.5%. For manganese, the equivalent number was 15.1%.
The decline in lithium is a function of a greater proportion of smaller vehicles being sold but a shift from nickel-rich chemistries would have an impact on the lithium market – increasing demand for carbonate relative to hydroxide.
In China, where LFP uptake over NCM and NCA was also boosted by new regulations concerning battery fires, the sales-weighted average nickel, cobalt and manganese deployment per vehicle was down 42.3%, 45.3% and 38.3% respectively.
European invasion
That compares to Europe, where the average use of these metals has declined only by around 2% year on year, almost entirely due to the scarcity of LFP-powered cars in showrooms on the continent.
That may well change quickly too with Volkswagen, the most ambitious of the traditional carmakers to pursue EVs, committing to LFP for its lower end, high volume cars as part of its $29 billion push into the market.
The LFP Model 3 is only available in China, with small quantities exported to Europe, but Tesla appears to be doubling down on the technology after reports, as yet unconfirmed, that the California company is adding a second LFP battery supplier to its Shanghai factory and the Model Y to its LFP line-up.
Alla Kolesnikova, Head of Data and Analytics at Adamas, expects in the near term to see more made-in-China Model 3s with LFP cells entering Europe and key right-hand-drive markets globally, including the UK, Ireland, Australia and New Zealand:
“Apart from Tesla, there are a few other Chinese brand vehicles hitting foreign markets with LFP cells, including several passenger and light commercial EV models made by Maxus, JAC, BYD and Seres.
“Some key Tesla rivals in China, including Xpeng and Nio, are expanding their lineups to include model versions powered by LFP cells, which could follow Tesla’s lead into Europe by as early as this year.”
Over the next ten years, the outlook for the lithium sector is “as bright as ever” amid fast production and demand growth, a new report from Fitch Solutions and Country Risk shows.
The global acceleration towards decarbonisation, the electrification of vehicles, and energy storage continues. It provides a backdrop for fast-paced change in a market traditionally dominated by only a handful of participants and opening up many new production opportunities elsewhere in the world.
However, the constant technological advancements on both the supply and demand sides pose risks to the market outlook. Fitch cautions that since lithium is now considered a ‘strategic mineral’, it will likely lead to rising government intervention in its production and sourcing.
“THE LITHIUM SUPPLY LANDSCAPE WILL EVOLVE QUICKLY AND DRAMATICALLY OVER THE NEXT FEW YEARS”
Fitch
The lithium supply landscape will, therefore, evolve quickly and dramatically over the next few years.
Fitch forecasts global lithium production will more than triple from 442,000 tonnes of lithium carbonate-equivalent (LCE) in 2020 to 1.5 million tonnes of LCE by 2030.
Well-established producing countries will record further growth, while several new lithium-producing markets will emerge in the next ten years. Production growth is expected to accelerate in Australia, which Fitch forecasts will remain the largest lithium-producing country through 2030, given an expected trebling of output over the 2020 to 2030 period.
Production in Chile and China will also more than double, while Brazil output is expected to grow five-fold. Argentina output will double over this timeframe.
The impending boom in energy storage, of which rechargeable batteries are the dominant aspect driven by the electric vehicle (EV) revolution, will be the growth engine behind the lithium upstream sector, Fitch says.
First price forecast
Fitch has, for the first time, also launched lithium carbonate and hydroxide price forecasts. It expects a sharp acceleration in demand for lithium-ion batteries will outpace supply growth, keeping prices elevated.
Fitch forecasts Chinese lithium carbonate 99.5% prices to average $13,450 per tonne this year and at $15,025 per tonne in 2022, and Chinese lithium hydroxide monohydrate 56.5% prices to average $11,950 per tonne in 2021 and $14,300 per tonne in 2022.
Risks to the price outlook include a faster-than anticipated adoption of EVs (upside risk to prices), a faster-than-anticipated advancement of new lithium extraction technologies (downside risk), and a faster-than-anticipated advancement of battery-recycling technology (downside risk).
Fitch forecasts EV sales to drive lithium consumption growth by as much as seven times over 2020 through 2030, while yearly EV sales will grow from 3.1 million to 21.2 million units.
Fitch forecasts the EV sector will account for about 80% of total lithium demand by 2030, compared with between 40% and 45% currently.
China is expected to remain the largest battery manufacturer by a wide margin, for the time being, accounting for about 80% of installed manufacturing capacity as of 2020. However, other existing manufacturers including Japan, South Korea, the US and Hungary will most likely record a rise in battery manufacturing, Fitch says.
Relatively new entrants, including Germany, Poland, Sweden, France, the UK, Thailand and Indonesia, will also establish themselves as increasingly essential manufacturers.
Green premium
The rapid rise of a green premium for lithium amid heightened demand for more environment-friendly resources from downstream players is another critical price trend Fitch is monitoring. Another of the analyst’s recent reports considered how lithium extraction techniques are increasingly under ESG scrutiny.
Currently, only hard rock and conventional brine resources from salars are used to produce lithium at a commercial scale; Fitch estimates about 65% of global output comes from hard-rock lithium mines such as those in Australia, while 35% come from brines in Latin America and China.
A SLEW OF NEW MARKET ENTRANTS ARE WORKING ON NEW EXTRACTION TECHNIQUES WHICH COULD UPEND PRIMARY SUPPLIES OF LITHIUM.
However, a slew of new market entrants are working on new extraction techniques such as geothermal brines and sedimentary (clay) deposits, which could upend primary supplies of lithium.
As the development of these new extraction techniques progresses, the industry structure, the shape of the cost curves, and the environmental, social and governance (ESG) considerations will continue to evolve. Providers of more environmentally friendly lithium with lower water usage and carbon emissions will most likely be rewarded.
Rising demand for the most sustainable lithium, coupled with tight supply, means that over-the-counter transactions, offtake agreements and long-term strategic supply partnerships are here to stay in the coming years.
Technological advancements, meanwhile, are at different stages of development, which Fitch flags could cause supply to rise faster than expected.
These developments will keep the lithium market opaque to some extent, according to Fitch, and lithium will remain more of a speciality chemical market, characterised by clients requiring specific and often differentiated products and less of a bulk commodity market.
The upcoming development of lithium recycling could also ease some of the lithium supply issues in the longer term.
Further, Fitch notes that the lithium content of the promising next generation of batteries is even higher than the batteries that will be dominating over 2021 to 2025.
Mineral output is projected to rebound in the second half of this year after production fell across the sector in the first quarter compared to the same period the prior year
Mining is Zimbabwe’s single largest foreign currency earner, accounting for over 70 percent of export receipts. Major exports include gold, platinum, chrome, and diamond.
The government says is working on growing mining from a US$3,5 billion industry to a US$12 billion sector by 2023 with gold, platinum, chrome, diamond, and lithium among the major contributors.
The targeted growth is part of the architecture forming the basis for Government’s Vision 2030 by which the southern Africa country should have attained upper middle-income status.
CoMZ president Elizabeth Nerwande told a media briefing on Friday that 2020 was very challenging due to the Covid-19; but applauded the Government for allowing mining firms to operate; as an essential service sector.
She was speaking ahead of the CoMZ annual general meeting (AGM) slated for Victoria Falls next week. President Mnangagwa will be the guest of honour at the yearly mining Indaba, which is scheduled to run from 3-5 June, 2021.
“In the first quarter, we saw a dip in production. This year’s theme is…“Navigating…The times and The Need to Build Resilience,” she said. Declines were recorded across key minerals including gold, nickel, and chrome.
Similarly, CoMZ chief executive Isaac Kwesu said 2020 was a very difficult period as was the first quarter of this year. He said mines were not spared the challenges of Covid-19.
Capital constraints are still an issue…Last year it was constrained by Covid-19. Operating costs remain high. The first quarter was generally bleak, as most minerals; gold, nickel, and chrome declined,” Kwesu.
He said the sector would “see a rebound in the second quarter. We continue to work closely with the Government so that we achieve our targets. Most key minerals recorded output declines in the first quarter of 2021″.
Challenges besetting the sector include the coronavirus, which prompted national lockdowns across the globe and disrupted global supply chains, the shortage of forex, high costs, and capital constraints.
“Despite the subdued first-quarter performance, we are anticipating the mining sector to rebound in the second half and attain annual targets,” Kwesu told journalists.
Zimbabwe’s mining industry growth plan entails increasing individual mineral output, among the over 40 mineral occurrences, including but not limited to gold, platinum chrome, nickel, coal, lithium, steel, and asbestos production.
A Chinese national in possession of 21 grams of gold was arrested at the Robert Mugabe International airport on the 26th of May 2021 as he was exiting Zimbabwe on his way to Mali.
Court heard that Jianming checked into the airport on his way to Mali on the 26th of May 2021. He went through all the necessary protocols and his passport was even stamped out at the exit desk.
When he arrived at the last check point his luggage was scanned and one button weighing 21,21grams and gold amalgam weighing 3,41g were detected.
Jianming was asked to provide proof that he was authorised to be in possession of the precious metal and he failed to.
The state pushed for a mandatory jail term and argued that it was becoming problematic and the country was being deprived of much-needed revenue.
His defence attorney, Muchadehama, argued that there are special circumstances that do not warrant the imposition of a mandatory jail term. The lawyer said Jianming did not know it was an offence for one to be in possession of gold in Zimbabwe as it is not a crime in China. Jianming claimed he was given the two pieces as a gift by a friend and he has had them in his wallet since November 2019.
Muchadehama said another mitigating factor was his client did not try to hide the pieces as he was going through the airport to which the state argued that Jianming had total disregard of the law as he had knowledge of the stones but didn’t bother to verify if there are precious or not.
Jianming was also in violation of immigration laws and was also fined for overstaying in the country.
Oil and gas giant Total will be rebranded as TotalEnergies as it shifts some of its focus towards renewable energy sources.
Shareholders voted overwhelmingly in favour of the move and approved the firm’s environmental goals. “We want to become a sort of green energy major,” said chief executive Patrick Pouyanné.
Big energy firms are coming under increasing pressure to adjust to a lower-carbon world.
Last week, a small hedge fund investor succeeded in ousting two board members at Exxon in the US, in a bid to alter the firm’s direction on climate change.
And a court in the Netherlands ordered Royal Dutch Shell to cut its emissions more quickly than the Anglo-Dutch oil firm had planned.
Total, the world’s fourth-largest privately-owned oil and gas producer, is aiming to reach carbon neutrality by 2050, in part by investing in more solar and wind power projects. While several small investors opposed the company’s plans at the annual general meeting, arguing they did not go far enough, the resolution was passed with more than 90 percent of the vote. European energy firms have moved more quickly than their US counterparts to begin the transition away from fossil fuels, said Mike Coffin, senior analyst in oil and gas at financial think tank Carbon Tracker. — BBC
A worker at a mine in Colleen Bawn has been arrested after he stabbed his employer to death with a kitchen knife for firing his two workmates.
Matabeleland South acting provincial police spokesperson Assistant Inspector Thabani Mkhwananzi confirmed the incident which occurred at Heathfield Mine in Colleen Bawn on Tuesday at around 9pm. He said the now deceased Nelson Ngwenya (55) dismissed two workers for allegedly stealing explosives and Nqobile Moyo (20) later teamed up with them and confronted their employer over the matter.
“I can confirm that we recorded a murder case which occurred at Heathfield Mine in Colleen Bawn. The now deceased who owned the mine, Nelson Ngwenya fired his two workers, Moses Banda (23) and Cuthbert Tshuma (24) for stealing explosives.
“On the same day at around 9pm, Ngwenya was seated with some of his workers at the mine when Moyo arrived with his two workmates that had been fired and confronted Ngwenya over the matter,” he said.
Asst Insp Mkhwananzi said Moyo went towards a shed which was close to where they were standing and picked up a kitchen knife. He said Moyo stabbed Ngwenya in the chest and his workmates restrained him. Asst Insp Mkhwananzi said Ngwenya died on the spot and his body was taken to the Gwanda Provincial Hospital mortuary. He said Moyo was arrested while Tshuma and Banda fled from the scene and were still at large. Asst Insp Mkhwananzi urged members of the public to desist from resorting to violence when faced with disputes.
“We would also like to appeal to members of the public with information on the whereabouts of Tshuma and Banda to contact any nearest police station,” he said.
Timothy Chizuzu has won the Zimbabwe Miners Federation (ZMF) Mashonaland West chairmanship election in a contest he thumped Dr Chiedza Chipangura 29 – 4 votes.
Chizuzu won the election in a vote held at the Odyssey in Kadoma this morning. In his acceptance speech, Chizuzu stated that the province will now focus on building a stronger and more efficient mining community.
Below is Timothy Chizuzu’s full acceptance speech:-
“It is indeed an honour to accept this post that the gracious constituency of Mashonaland West has accorded me. Ndinotenda nemoyo wese. Like I previously stated musha uno ndewedu and it is up to us to build a strong and lasting economy through hard work, sacrifice and diligence. I want to share my thoughts with you on my grand vision and mission to move Mashonaland West artisanal and small-scale mining towards formalization and regularization of the mining sector in order to help in the attainment of the US$12 BILLION roadmap.
My plan is to build a stronger ASM in Mashonaland West through a stronger work plan, safe ASM, and environment-friendly mining with stronger production output. It is our duty to help the government to achieve the 2030 vision where the economy is expected to become an upper-middle-income earner. This way we become part of the value chain. I liken our plans to that of the reconstruction of Mashonaland West to that of Germany after the World war. It took a lot of selflessness and dedication to rebuilding the economy. The Germans worked together with one goal, not minding that there were sacrifices to be made. They realized that for them to live well, they had to become consistent and enduring in building a legacy that would in turn build a first world country.
I wish to recognize all the community-based structures, the youth leaders, the disabled and our female mining community who have a particular role to play in this journey. These people have become the key role players in the mining sector and need to be engaged with, and offered support. Other structures of government, such as local municipalities, will also be interfaced as key stakeholders. All community-based structures would be consulted on community investment programmes. This way everyone is duly informed of all process and there is maximum transparency in all we do.
We have the challenge of building a stronger and more efficient mining community. Strengthening the processes that will increase our output is not an option but an obligation. It is therefore urgent that as a constituency we show the ability to respond to any major challenges, and that this office is brought closer to the people, connecting its decisions directly to its beneficiaries, the citizens of Zimbabwe. As I stated in this election process, therefore, each and every one of my actions will bear in mind the fact that the main recipients of our commitments and decisions are our people. We are working for them.
My priority is to build a more productive, stronger and diverse ASM in Mashwest through all stakeholders’ empowerment, mechanization, training and advocating for the ease of doing business. My plan is to help in the regularization of the informal ASM with a modernized bias towards assisting miners to graduate from subsistence to sustainable business through ensuring a legal regime that gives ASM rights in equal distribution of our resources, duration of rights and security of tenure. It is my vision to revolutionize the ASM in Mashwest through providing accessible institutional, technical and financial support. I will be pushing for exploration on all ASM rights in Mashonaland West for us to be able to qualify and quantify our mineral wealth. The best of Mashonaland West ASM revolution is here. Thank you so much for your trust and faith in me. Let’s get to work and make this province the envy of all.
Ladies and gentlemen, let’s get it done! The time has come to set the right course for our country – while we still can! Once again, I am deeply grateful to the constituency for this appointment. Before the people, I pledge to work for the common good and for the principles and pillars of our nation. I pledge to abide by the code of ethics with absolute responsibility and to strictly follow the precepts of the Mining community’s rules of procedure.
Mokoele has been pivotal and vocal when it comes to small scale mining growth and development.
He has been encouraging small scale miners to grow from small scale mining to medium scale and has been leading by example at his mine by creating both vertical and inclined shafts at his mine with steel and concrete headgears. The headgear supports wheel mechanisms for suspending winding cables that transport workers and ore up and down deep level shafts.
Mokoele also called for the government to educate miners on issues of Exclusive Prospecting Orders (EPOs) and has also called on the Ministry of Mines to include small scale miners in terms of budget allocation to help speed the growth and development of small-scale mining to medium scale.
He has well known for encouraging small scale miners to improve from artisanal operations to imitating large scale mines like Blanket Mine in Gwanda. He has also spearheaded the rescue of tens of miners trapped underground after shaft collapses in his province.
Meanwhile, Jane Lusinga was elected Matebeleland North committee Chairperson.
Zimbabwe Miners Federation (ZMF) provincial elections continue tomorrow in Midlands (Barta shoe club) and Masvingo (Roger Howman hall).
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