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Supporting ASM enables gvt to capture revenue

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Taking an initiative to support artisanal and small-scale mining’s growth and development will enable the government to capture the revenues and tax from ASM activities renowned miner Sophia Takuva has said.

Anerudo Mapuranga

According to Takuva by the government getting ready to drive the formalization and regularization of the artisanal and small-scale sector will help in the transformation of the mining industry at the same time enabling the government to benefit from revenues and taxes from the sector.

“Curbing violence in the ASM sector will transform ASM into a sustainable livelihood. Supporting ASM to become an engine of enterprise and growth will lead to higher government returns and job creation, also it will enable the government to capture the revenues and tax from ASM activities,” Takuva said.

Norton Miners Association Chairperson Mr. Privelage Moyo added to Takuva’s sentiments saying the government should be geared up to support the activities of small-scale and artisanal miners as this will enable it to create hard-working citizens at the same time creating mineral understanding and knowledge in the citizens.

Moyo said supporting ASM growth and development was important for the future of the country as the resources were guaranteed to be in the hands of citizens in the near future.

“It puts its people to use by creating jobs and making them entrepreneurs and offloads a burden of looking after them giving an example of other countries who pay unemployment salaries.

“The people will be able to understand mineral resources and mine without the involvement of third parties in the near future. The government will be passing general knowledge in Mining.

“The government will be creating what is called hands-on-deck citizens, hardworking men, and women,” Moyo said.

ZMF Elections, vetting and nomination extended to 18 May 2021

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Zimbabwe Miners Federation (ZMF) Chief Executive Officer Mr. Wellington Takavarasha has announced that the deadline for submission of fingerprints for vetting and nomination papers for aspiring candidates for both ZMF provincial council and national executive elections and nomination fees payment has been extended to 18 May 2021.

Anerudo Mapuranga

“Please be advised that the deadline for submission of fingerprints for vetting and nomination papers for aspiring candidates for both ZMF provincial council and national executive elections and nomination fees payment has been extended to Tuesday 18th May 2021 by 1700 hrs,” he said.

Nomination papers and fingerprints for vetting ZMF Provincial Council aspiring candidates) are to be submitted to the ZMF Provincial Electoral Committee on the 18th of May 2021(Venues and time according to province)

ZMF Provincial Council aspiring Candidates are to pay USD 100 to contest.

All candidates for elective office must be confirmed by the Returning Officer that they hold valid ZMF membership and that the association they belong to is a bonafide member of ZMF.

The names of vetted successful aspiring candidates will be published on all ZMF platforms in due course.

The Electoral Roll will be created based on the full list of eligible voters (5 per association), their Identity numbers, and full contact details as provided by their associations.

Only paid-up association members shall be allowed to vote (non-paid-up members shall not utilize facilities offered by the Federation -Article 24.1)

CAMPAIGN MANIFESTO

Each candidate to give a brief campaign manifesto. The deadline for submission is 21 May 2021.

Each person shall cast his/her own vote in person at the polling station of the Province stated above.

Telephones and other electronic devices capable of taking pictures are not allowed at The Polling Station.

After casting his/her ballot, the voter is free to remain within the vicinity of the Polling Station to witness the sorting and counting of votes and announcement of results.

The counting of ballot papers will be done immediately after the last person casts their vote.

Announcement of results will be done immediately after verification of ballot papers and collating of votes.

Bullion rally helps Harmony Gold boost Q3 earnings

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South African miner Harmony Gold on Tuesday reported a jump in third-quarter core profit, boosted by higher output and a strong gold price, positioning the miner to pursue growth.

Firmer bullion prices have helped miners’ profits soar despite the covid-19 pandemic, with the company receiving a 16% higher average gold price during the quarter of $1,708 per ounce.
The Johannesburg-listed miner said it was well positioned for its growth strategy with the higher gold price strengthening its balance sheet and boosting cash with operating free cash flow for the nine months ended March 2021 up 78% to 5.297 billion rand ($377 million).

“The company has a pipeline of cash-enhancing projects which will boost its cash flow margins and sustain its production for many years to come,” Harmony said.

Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortisation) rose 360% to 9.439 billion rand for the quarter.

The gold miner said production increased to 1,124,274 ounces from 990,691 ounces the same period a year earlier. However, all-in sustaining costs rose 16% to $1,416 per ounce driven by higher royalties and covid-19 and safety related costs.

Harmony lowered its annual production guidance to between 1.50 million to 1.55 million ounces from 1.56 to 1.6 million ounces due to major repair work and maintenance at its Hidden Valley operations in Papua New Guinea.

The miner maintained its annual underground grade and overall cost guidance.

($1 = 14.0563 rand)

Reuters

New incentive package to reward Zim companies that grow exports

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Zimbabwean exporters will be rewarded for exporting more, under a raft of new incentives announced by Finance Minister Mthuli Ncube on Monday.

Exporters, including miners, currently keep 60% of their foreign earnings in hard currency, while 40% is sold to central bank at the official exchange rate. Gold miners have said this leaves them without enough to cover their expenses, many of which are in US dollars.

Ncube has turned down their pleas and kept the 60% threshold in place, only announcing “incremental” incentives under which a company that exports above its monthly average can keep 80% of what it earns from that increased portion.

“In order to encourage gold production and deliveries to Fidelity Printers and Refiners (FPR), gold producers who deliver gold quantities above their average monthly deliveries shall be entities to a retention level of 80% on the incremental portion of the gold delivered to FPR,” Ncube said.

Companies that list on the Victoria Falls Stock exchange get to keep 100% of their incremental exports.

Gold producers have previously pushed to be allowed to sell their own gold abroad. In 2019, Canadian company b2Gold abandoned a bid for Shamva mine after failing to get assurances that it could export its own gold.

The new plan does not give in entirely to this demand, but says large scale miners that qualify for the 80% threshold can now directly export the incremental portion of their gold, the earnings from which they can use to secure credit offshore.

Export retention

In January, central bank cut the amount of forex that exporters can earn from 70% to 60%. In response, the Chamber of Mines, in a letter to the Ministry of Finance in February, said miners would have to cut production as the bulk of their expenses were in US dollars.

Said the Chamber: “A snapshot survey and submissions received from mining houses demonstrate that on average 60% of gross export proceeds are now taken by government departments and agencies (RBZ, Taxes, ZESA etc) leaving inadequate forex resource for the mining firms to sustain the operations.”

Treasury’s new incentives are structured differently from previous subsidy programmes blamed for stoking inflation. In January last year, central bank dropped the gold support scheme, under which gold mines were paid 25% of the gold price for each delivery of gold to Fidelity. The incentive was paid out in Zimbabwe dollars at the prevailing official exchange rate.

 

NewZwire

Zimbabwe and Zambia seek to unlock value from mining rights held by PAMDC

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Zimbabwe, Zambia and South Africa have resolved to adopt urgent interventions to fully operationalise the Pan-African Mining Development Corporation (PAMDC) and manage it in the best interest of the three countries.

Through a tripartite arrangement, the governments of South Africa, Zambia and Zimbabwe agreed to form the Pan-African Mining Development Corporation, which was mandated to hold and exploit mineral rights which were bequeathed to Zambia and Zimbabwe by Cecil John Rhodes.

Recent governance challenges due to non-representation of South Africa on the PAMDC board as well as financial constraints as a result of non-contributions have threatened the operations of the entity.

“ERP now appeals to the honourable ministers to engage the counterpart in RSA to seek an immediate engagement that will not only preserve the objectives of PAMDC but also will ensure that all the parties play their part,” said Emerging Railways Properties (ERP) Manager, Logan Nyasulu.

The just-concluded ERP Council of Ministers meeting held in Livingstone, Zambia, saw renewed calls for urgent measures to address the governance issues and adoption of PAMDC turn-around strategy.

“While complexities of unlocking value from the vast mineral resources and interests in PAMDC are apparent, we should not lose sight of the cardinal work ethic which should be invested towards finding a lasting solution to the challenges highlighted here today,” noted Hon. Felix Mhona, Zimbabwe’s Transport and Infrastructural Development Minister.

According to a communique released at the end of the Council of Ministers Meeting, it was resolved that engagements should be made to persuade South Africa to meet its obligations under the tripartite arrangement.

Zimbabwe and Zambia have 66.7% shareholding in PAMDC held through ERP, while South Africa has 33.3% held through African Exploration Mining and Finance Corporation (AEMFC).

 

ZBCnews

Gertler mining deals could cost Congo $1.76bn in royalties

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Congo could lose out on $1.76 billion in potential royalty payments from its copper and cobalt mining deals with Israeli mining magnate Dan Gertler, an anti-corruption group said on Wednesday, calling on the government to open an investigation.

The US Treasury sanctioned Gertler and more than 30 of his businesses in December 2017 and June 2018, accusing him of leveraging his friendship with former Congo President Joseph Kabila to secure lucrative mining deals.

Gertler has denied any wrongdoing.

Using data including recently published contracts on the mining ministry website, the campaign group Congo is Not for Sale (CNPAV) estimated that deals with Gertler for cobalt, copper and oil concessions have already cost the state around $1.95 billion.

A SPOKESMAN FOR GERTLER SAID THAT CNPAV WAS “SIMPLY MAKING UP NUMBERS IN AN EFFORT TO GENERATE THE MEDIA INTEREST”

In a report, CNPAV accused Gertler of acquiring mining and oil licenses at “knockdown prices before selling them on to international partners, or even back to the government, for incredible profits”.

Congo could lose out on an additional $1.76 billion in royalty payments if the contracts are not reviewed, CNPAV said, bringing total losses as high as $3.71 billion.

“The Congolese government cannot ignore the hemorrhage of billions of dollars from its coffers when it desperately needs the funds to rebuild its economy and pull its citizens out of poverty,” said Jean Claude Mputu from CNPAV.

A spokesman for Gertler told Reuters that CNPAV was “simply making up numbers in an effort to generate the media interest on which their funding relies”.

Congo’s government spokesman said he could not immediately respond to the allegations.

Congo produces more than 70% of global cobalt supplies and is Africa’s biggest copper miner, but it remains one of the world’s poorest countries.

Its foreign exchange reserves stood at just $506 million in April, corresponding to two weeks of imports of goods and services, according to central bank data.

Potential further losses could accrue from the state mining company Gecamines’ transfer of the right to collect royalties to companies affiliated with Gertler through a series of complex financial deals, CNPAV said in the report.

The largest chunk is expected to come from Swiss miner Glencore’s KCC and Mutanda Mining concessions, worth around $1.46 billion over the next 19 years, CNPAV said. Glencore declined to comment.

 

 

Reuters

ZCDC calls for the end to child involvement in illegal mining

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Zimbabwe Consolidated Diamond Company (ZCDC) earlier this month in an effort to stop the involvement of juveniles in illegal mining activities at the Chiadzwa diamond fields held an All Stakeholder Community Engagement meeting at Gandauta Secondary School in Chiadzwa to discuss possible ways to eradicate the problem.

Anerudo Mapuranga

Many children allegedly ventured into illegal diamond mining due to the constraints brought by the covid-19 pandemic as schools were closed and many businesses shut leading to hunger and starvation in many homes.

ZCDC has been commended for the initiative to seeks ways to remove juveniles from illegal or artisanal mining activities.

The Director of Centre for Natural Resource Governance Mr Farai Muguwu said artisanal mining is modern-day slavery that needs urgent formalisation and regulation.

According to Maguwu Zimbabwe’s gold and diamond mining industry is characterised by violence, frequent accidents, and corruption.

“Artisanal mining is giving people a livelihood but to a large extent, it is modern-day slavery. There is a big contradiction between what you see in the jewellery shops and the source where these minerals are extracted,” Muguwu said.

ZCDC is also rehabilitating roads in Chiadzwa and Chimanimani as well as community feeder roads which were damaged by heavy rains experienced in the areas during the just-ended rainy season

The company through the Zunde raMambo food security scheme also donated agriculture inputs to the Marange community,  Chief Marange is one of the beneficiaries of agricultural inputs support given to the community by ZCDC.

Caterpillar autonomous mining trucks haul 2 billion tonnes

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Caterpillar has announced that an additional 1 billion tonnes of material has been hauled by autonomous trucks using Cat MineStar Command for hauling, surpassing the 3 billion tonnes milestone. This achievement is joined by an expansion of the types of commodities hauled autonomously across a growing number of Cat mining truck class sizes, as well as other brands of mining equipment.

“Since surpassing the 2 billion tonnes milestone, we’ve equipped more mines with Command trucks and have established the world’s first gold mining application with Command for hauling,” offers Jim Hawkins, director of Cat MineStar Solutions. “Since surpassing 1 billion tonnes, we’ve expanded our Command fleet by nearly 250 percent.”

Caterpillar has Command autonomous haulage system (AHS) fleets operating across three continents – North America, South America and Australia – at 17 mine locations, operated by nine different customers. Commodities mined using the Cat Command include iron ore, oil sands, copper, coal and gold.

Command for hauling trucks now span class sizes from 190 to 360 tonnes (210 to 400 tons). The Cat line of Command models include the Cat 789D, 793D, 793F, 797F and the 297-tonne (327-ton) 794 AC with electric drive. Command retrofit kits are available for Cat mining trucks as well as other brands of trucks and loading equipment. Since the first autonomous Cat trucks were commissioned in 2013, these AHS models have traveled more than 110 million km (68.3 million miles), equivalent to a minimum-distance, straight-line roundtrip journey to Mars, with no lost-time injuries associated with automated truck operation.

Customers using Command for hauling report significant gains in productivity and truck utilization rates with lower costs per tonne.  Customers have seen up to 30 percent higher productivity.

“We continue to decrease the time between our major milestone targets because, from initial contract to full deployment, we constantly improve Command implementation efficiency. Consistent with previous milestone trends, we anticipate crossing the 4 billion tonnes threshold at even a faster pace than achieving 3 billion tonnes,” says Marc Cameron, vice president, Caterpillar Resource Industries. “Looking forward, we are planning the expansion of Command for hauling to include our 140-tonne (150-ton) class Cat 785 mining truck.”

HEG

Fidelity official gold buying prices Wednesday 12 May 2021

Fidelity Printers and Refiners (FPR) official gold buying prices Wednesday 12 May 2021

SG 90% AND ABOVE US$52 632.13/kg
SG ABOVE 85% BUT BELOW 90% US$51 750.02/kg
SG ABOVE 80% BUT BELOW 85% US$50 573.89/kg
SG ABOVE 75% BUT BELOW 80% US$49 985.82/kg
SAMPLE BELOW 10g BUT ABOVE 5g US$51 161.96/kg
FIRE ASSAY CASH US$52 926.16/kg

EXCHANGE RATE 84.614

  • NB*Fire Assay cash price is for gold above 100gs and no sample is deducted.
  • For Fire Assay Transfer price, a sample of not more than 10g is deducted
  • 2% royalty is charged on all deposits (Small-scale Miners)
  • 5% royalty is charged on Primary Producers

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

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

 

Villagers injured in gold rush mayhem

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HORDES of villagers and gold panners were injured when omakorokoza from various parts of the country went on a rampage at a gold mine along the Gwayi River, Nyamandlovu in Matabeleland North Province.

The vicious omakorokoza who are often prepared to kill or maim rivals to scare away competition at mining claims, clashed with villagers from Tsholotsho and Nyamandlovu at Lewisham 2 Mine in Ward 14 in Umguza District.

The area which is just after St James High School has many mining claims but most people are mining unprocedurally.

Gold panners commonly known as omakorokoza are all over the area where they are leaving deep uncovered pits.

The environment is littered with plastic soft drinks and beer empties as well as human waste.

When Chronicle visited the area on Monday afternoon, omakorokoza were digging in search of gold.

A villager Mr. Charles Mudenda, recounted how the omakorokoza went haywire last week, attacking more than 300 people.

Mr Charles Mudenda

He had several long stitches on his head after being attended to at Mpilo Central Hospital in Bulawayo. “They moved from place to place indiscriminately attacking anyone. They were about a group of 20 but I was attacked by four young boys. I was helpless as I could not fight four armed youths who were merciless. They axed me several times on my head and they only left me when my face was covered in blood. I am still experiencing body pains,” he said.

Mr Mudenda said he was attended to at Mpilo Central Hospital after being transferred from Nyamandlovu District hospital. He said he reported the matter at Nyamandlovu Police Station but villagers feel some police officers could have been bribed to turn a blind eye.

Mr Mudenda said the hospital did not do an X-ray to ascertain the degree of his head injuries and he was living in fear as he is still bed ridden.

“This is not the first time this is happening. Every time when we are lucky to get some gold, news spreads and the next thing we will be forced out and beaten by miners coming from other places. Soon some people will be killed here ,” he said.

Mr Mudenda said the omakorokoza took all the ore from the people for processing leaving them without anything. He said even those who were down the shafts were ordered out and received their share of thorough beatings.

Mr Charles Mudenda shows the injuries to his head

“I heard that they had three cars which they used to load all our ore and they left. But soon after, an excavator came to mine at the area. So it is difficult to know if they were sent to clear us out so that the big fish could move in,” he said.

Another villager Ms. Sithabile Moyo said her brother, Mr. Mehluli Moyo, was also seriously beaten and is receiving treatment in Bulawayo.

“He told us the men started by attacking the women who sell food to the miners and he did not think that he was a target and did not mind running for cover. When they got to him, they hit him with the back of an axe on the head and kicked him. He came home struggling to walk with his clothes bloodied and we had to use the little money we had so that he goes to Bulawayo for medical attention,” she said.

Ms. Moyo said the men told them they do not want to see anyone at the mine.

She said other villagers across the river in Dlula village under Tsholotsho District suffered the same fate, although she did not know how many were injured.

Mrs. Thethesiwe Moyo (74) said villagers are now living as prisoners in their own area due to the activities of omakorokoza.

She appealed for Government intervention so that communities also benefit from their resources.

“As women, we are afraid to go there because of the constant fights,” she said.

Environmental Management Agency provincial manager, Mrs. Chipo Mpofu Zuze said:

“We conducted an inspection last month in respect to mining activities taking place at Lewisham 2 Mine in Ward 14, Umguza District. This was in response to a complaint received by the Agency that there were illegal mining activities being conducted along a river. There was a gold rush a week ago where about 300 people from within the locality and some from outside the area invaded an old ‘abandoned’ trench.”

Mrs. Mpofu Zuze said they fined the mine owner for mining without an environmental impact assessment certificate. She raised concern over litter such as solid waste from food packaging.

Tsholotsho Rural District Council chairperson councilor Esau Siwela said they have the same problem across the river in Ward 20.

“There are about 12 mines that are operating illegally in our area. They did not seek authority and clearance from us. It is just individuals who are benefitting from this so the chaos is benefitting them. Our communities are crying for help as they are losing out in many ways,” he said.

Cllr Siwela challenged the Ministry of Mines and Mining Development to visit the area and see what is happening on the ground so that they act against people they gave the mining claims.

Matabeleland North Provincial police spokesperson Inspector Glory Bhanda said he was yet to receive a report about the attack.

The Chronicle