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Matutu, Bredenkamp clash over special grant

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AN investment vehicle fronted by former Zanu PF youth leader Lewis Matutu is locked in a turf war with Gavin Bredenkamp after it was allocated a 450 hectares mining grant on the latter’s Thetford Estate farm in Mazowe, the Zimbabwe Independent can reveal.

Gavin, is the son of the late John Bredenkamp, who was one of Zimbabwe’s top businessmen with interests spanning mining, agriculture and arms.

Documents gleaned by the publication this week show that Matutu was granted mining rights at the heart of Bredenkamp’s 1 500ha Thetford Estate in Mazowe in February 2020 through an investment vehicle called Nyamatsanga Mining.

Bredenkamp was allocated the expansive farm in 2020, at a time the government was downsizing farms.

This has subsequently triggered a fierce dispute between the parties, with Bredenkamp fighting to boot out Matutu.

With the special grant set to expire next year, Matutu’s outfit has desperately sought to exploit the lucrative claims.

But Bredenkamp has resisted Matutu’s moves, insisting that he has rights over the land.

Although mining takes precedence over farming under Zimbabwe’s current legislation, Bredenkamp is armed with protection under the heritage sites as his farm falls within The Upper Mazowe Heritage site and is home to some rare ancient rock art. The farm is also an animal sanctuary and private game reserve with protected species such as the rhino.

However, sources close to the land wrangle say Bredenkamp, could have corrupted or intimidated authorities because of the proximity of his family to the corridors of power.

But Bredenkamp, through his legal counsel, Titan Law, insists he is on the right side of the law, should the matter spill into the courts.

The farm in dispute was gazetted for redistribution under the land reform programme in 2000, but the Bredenkamps remain unaffected.

Bredenkamp applied for an offer letter over the farm, which was granted on December 30, 2020, about eight months after issuance of the special grant to Nyamatsanga Mining.

Sources close to the squabble say the warring parties have been trying to resolve their differences through dialogue.

Efforts to get a comment from Mines and Mining Development minister Winston Chitando were fruitless at the time of going to print. Agriculture minister Anxious Masuka refused to comment on the matter referring questions to his permanent secretary John Basera.

“These are operational (and) not policy issues, so talk to Basera,” Masuka said on Wednesday.

Basera could not be reached for comment.

Bredenkamp’s lawyers confirmed an offer letter was issued for Thetford Estate.

“There is no special grant issued for the immovable property known as Thetford Estate. If there was ever a special grant issued for Thetford Estate or any portion of Thetford Estate, that special grant cannot, in our view, have been procedurally issued having due regard to the relevant provisions of the Mines and Minerals Act, as well as general government policy in relation to the issuance of special grants in areas subject to wildlife and other conservation initiatives. Thetford is essentially a private wildlife game reserve and has been, for many years,” Titan Law said.

“Additionally, Thetford is a historic site conservancy and resource for tourism as it falls under the Upper Mazowe National Monument as it contains some of the pristine rock art within the national monument. This rock art has survived between 7 000 and 13 000 years.

“We can state with absolute certainty that our client did not corrupt any land officials in respect of the allocation of the offer letter to him (and) our client has not denied any person with bona fide mineral rights, lawfully and procedurally issued, to lawfully and procedurally execute the same in accordance with the laws of Zimbabwe.

“Our client has simply asked those persons claiming to exercise those rights to show that the Mines and Minerals Act, as well as the Environmental Management Act, have been strictly complied with before any such consent is granted to enter upon Thetford Estate. This has been made clear in writing,” the lawyers said.

Bredenkamp said Thetford is a vibrant and productive agricultural and wildlife conservation enterprise that cannot be unlawfully disturbed by persons.

Nyamatsanya’s lawyer Vengai Madzima said Matutu had a special grant.

“They (Bredenkamp’s camp) should comply with the law and allow my clients access to their special grant and then query, you don’t take the law into your own hands,” Madzima said in a telephone interview.

“They can just query whatever they feel is wrong with the relevant authorities.”

 

Amplats explores PGM technology to simplify hydrogen storage and use in EV

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Anglo American Platinum is partnering with Umicore to research and develop a ground-breaking technology that has the potential to transform the way hydrogen can be stored and used to power fuel cell electric vehicles (FCEVs).

Such technology would help avoid the need for extensive new hydrogen infrastructure and refuelling networks which currently represents one of the main barriers for more widespread adoption of hydrogen in clean, electric transport.

The joint research and development programme aims to take the process through which hydrogen is chemically bonded to a liquid (known as a liquid organic hydrogen carrier or LOHC) a step further, targeting new PGMs-based catalyst technologies that can be installed directly in FCEVs and other forms of transport.

Using a LOHC allows for hydrogen to be handled and transported in a similar way to oil or gasoline, using conventional liquid transport networks such as tankers and pipelines rather than meeting the more complex requirements of compressed gas. This avoids the need for new and dedicated hydrogen infrastructure, thereby accelerating the adoption of hydrogen as a clean fuel for transport and other applications. With the additional new technology that Anglo American Platinum and Umicore are exploring, the unloading of hydrogen from the LOHC – called the dehydrogenation step – would take place directly in the vehicle at lower temperatures and pressures, providing a simpler and cheaper alternative to onboard storage of compressed hydrogen.

Benny Oeyen, Anglo American’s Executive Head of PGMs Market Development, said: “LOHC technology provides an attractive pathway to emission-free and cost-effective hydrogen-fuelled transport. Anglo American believes that the particular catalytic properties of PGMs can further enhance the process by streamlining the logistics, and offer a far simpler experience for consumers – combined with a similarly quick refuelling time and range as conventional petrol or diesel vehicles – while also reducing costs across the entire value chain.”

Lothar Mussmann, Umicore’s Senior Vice President New Business Incubation, said: “Umicore is a leading supplier of catalysts for Proton Exchange Membrane fuel cell electric vehicles. Allowing the use of hydrogen loaded LOHC to fuel mobile applications by advanced LOHC dehydrogenation catalyst technology will help to overcome existing challenges of hydrogen infrastructure and logistics and thereby foster the wider introduction of fuel cell electric vehicles.”

Natascha Viljoen, CEO of Anglo American Platinum, commented: “Anglo American Platinum was an early supporter of the global potential for a hydrogen economy, recognising its role in enabling the shift to greener energy and cleaner transport. With our platinum group metals playing a critical catalytic role in many technologies related to green hydrogen production and hydrogen fuelled transportation, we are investing in those technologies that support a long-term investment environment for hydrogen to deliver its potential.”

Umicore will conduct the research with support from Anglo American’s PGMs Market Development team and in cooperation with Prof. Peter Wasserscheid at the University of Erlangen, co-founder of Hydrogenious LOHC Technologies. Hydrogenious is a leader in the LOHC industry and a portfolio company of AP Ventures, an independent venture-capital fund founded by Anglo American and focused on the development of hydrogen production, storage, transportation and other applications.

Anglo American’s PGMs Market Development team works to develop and encourage new end-user applications for PGMs. These include cleaner and sustainable energy solutions; fuel cells to power electric vehicles; the production and transport of green hydrogen; technology for the absorption of ethylene to extend the shelf life of food and minimise food waste; and the development of anti-cancer therapies.

Presidential Amnesty released ex-con kills miner

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An ex-convicted machete gang member recently released under a presidential amnesty aimed at easing congestion to reduce the threat of COVID-19 in the country’s overcrowded jails is alleged to have killed a miner in Norton.

Anerudo Mapuranga

According to Norton Miners Chairperson Mr Privelage Moyo, the deceased Mr Wonder Sithole was attacked by a machete-wielding criminal named Muhwa who was recently released from prison through the Presidential Amnesty program.

Muhwa according to Moyo is nursing his wounds at Norton Hospital.

“Wonder passed away after being attacked by machete gangs in Norton at Samoyo mining area. Information has it that the attacker, Muhwa, was attacked by a mob and he is in hospital at Norton together with the deceased. A police report was filed,” said Moyo.

Last year the Police managed to stop the activities of gangs armed with machetes and knobkerries countrywide, targeting mines and individuals keeping large amounts of cash, through the successful launch of “Operation Chikorokoza Ngachipere” and “No to Machete-Wielding Gangs”.

Criminal activities by the marauding gangs of machete attackers have seen reports of murder, rape, assault, housebreaking and stock theft rising in 2020. Police statistics show that in the mineral-rich Midlands Province reported criminal cases rose 33 per cent in the first nine months of 2019 because of the influx of machete attackers.

Recently British Ambassador to Zimbabwe, Ms Melanie Robinson has commended the government for successfully taming machete-wielding gangs that had wreaked havoc in the country, especially in mining areas.

Mining communities around Zimbabwe were under siege from the marauding gangs that operated mainly in gold-rich districts unleashing violence on a scale never seen before.

From Mazowe in Mashonaland Central right through the Great Dyke in Midlands Province into Matabeleland South, gangs of men armed with machetes, axes, guns, and other deadly weapons had been on a warpath, committing heinous crimes such as armed robbery and murder.

High yielding small-scale gold mines, gold buyers, and stamp mills were their prime targets.

Premier receives shareholder letter from Circum Minerals

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Premier African Minerals Limited (“Premier” or the “Company”), is pleased to report that it has received a shareholder letter (“Shareholder Letter”) from the board of Circum Minerals Limited (“Circum”), in respect of which Premier holds 5,010,333 shares, providing an update in Circum’s current activities.

The full text of the Shareholder Letter to Circum shareholders is available from Premier’s website:

https://www.premierafricanminerals.com/projects/investments/circum-minerals

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of the European Union (Withdrawal) Act 2018.

The person who arranged the release of this announcement on behalf of the Company was George Roach.

Premier African Minerals Limited (AIM: PREM) is a multi-commodity mining and natural resource development company focused on Southern Africa with its RHA Tungsten and Zulu Lithium projects in Zimbabwe.

The Company has a diverse portfolio of projects, which include tungsten, rare earth elements, lithium and tantalum in Zimbabwe and lithium and gold in Mozambique, encompassing brownfield projects with near-term production potential to grass-roots exploration. The Company holds 5,010,333 shares in Circum Minerals Limited, the owners of the Danakil Potash Project in Ethiopia, which has the potential to be a world class asset.

In addition, the Company holds a 19% interest in MN Holdings Limited, the operator of the Otjozondu Manganese Mining Project in Namibia.

Fidelity branches run out of cash

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Gold miners have reported that Fidelity Printers and Refiners (FPR)’s Mutare, Kadoma and Mutare branches have run out of cash.

Mining Zimbabwe reached out to Fidelity Printers General Manager Mr Fradreck Kunaka who said cash has been dispatched to the various branches across the country.

“We have dispatched cash to various branches across the country. Let me get back to you with feedback,” Kunaka said.

Fidelity Printers and Refiners is the country’s sole buyer and exporter of gold in Zimbabwe. The entity has 11 branches across the country.

More to follow…

Gold smuggling: Root causes that urgently need addressing

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Gold smuggling is currently the topical issue in Zimbabwe after the arrest of a local man who was caught with R11 million at OR Tambo airport. According to Home Affairs Minister Kazembe Kazembe, Zimbabwe is losing $100 million worth of gold every month through international smuggling rings.

Whilst smuggling is cancer that needs to be uprooted gold mining in Zimbabwe has myriad challenges that need to be dealt with to minimise or stop gold smuggling.

The Fidelity monopoly hurting the industry

Zimbabwe has one sole gold buyer of gold, Fidelity Printers and Refiners (FPR). Fidelity as it is popularly known in the mining circles at times fails to timely pay gold miners. As early as last year one of the country’s biggest miners RioZim stopped production due to delays in payments for deliveries to Fidelity, which left the company unable to meet its operational expenditures. RioZim in June 2020 said it was owed US$2.46 million and 65.48 million Zimbabwe dollars (US$2.6 million) by Fidelity for gold deliveries. RioZim also temporarily halted production and sued Fidelity and the central bank for $92 million over late payments in 2018. Metallon in 2019 was forced to put its mines on care and maintenance because of the unsustainable costs of running them without proper compensation for its proceeds from the government of Zimbabwe. Where payments were received the company claimed, they would only amount to a third of the total owed. Between 2016 and 2019, Metallon lost US$82m and Metallon
claimed for US$132m for the lack of profit and procurement, including interest.

The sole buyer is also known for going for days to weeks without paying small-scale miners who are heavily reliant on the payments. As I write this, Mutare and Bulawayo miners have reported the entity has no cash to pay for submissions. This leads to ASM shunning the country’s buyer leading them only submitting a small portion of their bullion to Fidelity. The rest of the gold is channelled to alternative markets creating a fertile market for illegal buyers who in turn smuggle the metal out of the country.

Formalisation, formalisation and formalisation

For one to be recognised as a legal miner they have to be issued with a mining title from the Ministry of Mines and Mining Development (MMMD). Usually, when one applies for a mining title they are ready to start mining. In gold-rich areas like Mashonalandwest, Midlands, Mashonaland Central getting a mining title is currently taking between 4 – 6 years with some having to re-apply after paperwork goes missing. This leaves many miners with no alternative but to mine illegally whilst awaiting a visit from the MMMD inspectors.

Mining illegally makes it difficult for one to transport their gold to the country’s sole gold buyer as miners fear arrests from the Minerals Flora and Fauna Unit (MFFU), a section within the Zimbabwe Republic Police that is mandated to monitoring and curbing illegal activities particularly that involves precious resources such as minerals.

These types of illegal miners will sell to unregistered buyers who frequent the mines. What is most concerning about such practice is that majority of ASG miners in Zimbabwe mine illegally therefore it is a possibility that the bulk of the gold produced is likely not getting into government vaults depriving the country of much-needed revenue.

The MMMD must process applications to a month tops. It is totally baffling that the country is losing over US$100million monthly yet the Mines Ministry continues to be underfunded and resulting in a snail pace to formalise miners. Excuses from MMMD of an influx of mining title applications without urgently addressing the matter continuously leads to chaos in the gold mining industry.

Capacitate Mines Ministry and increase branches

We were shocked when we visited the Chinhoyi Ministry of Mines office by the state of geological maps of the province. Some staffers at the Ministry use personal laptops as the ministry lacks the necessary equipment. In a province with an area of 57,441 km² and over 4000 applications the office only had two vehicles. Yes, Just two vehicles! If inspectors have to visit a claim at Chilimba over 6hours away it means in two days only that place can be served whilst more and more applications keep on pilling.

Mining has drastically increased across the country and there are no signs of slowing down. Government has to increase branches to improve efficiency in service delivery.

Gold trade Act and what’s on the ground – disastrous

The gold trade act (Chapter 21:03) regulates the trade and dealings in gold. It generally prohibits the possession of gold by unauthorized persons. This is disastrous as it is estimated that there are between 500,000 and 1,5 million artisanal and small scale miners operating in zimbabwe and of these only 16% are registered according to the mines and minerals regulation act Chapter 21;05. whilst 84% remain unregistered according to Zimbabwe Economic Policy Analysis and Research Unit (ZEPARU). It simply means the precious mineral is mainly in the hands of the unregistered.

Even local alternative buyers pay better

Some buyers are known to be buying at a price higher than Fidelity and pay cash on the spot. This drives miners (legal and illegal) to these buyers. Sometime this year a Bindura buyer (whom we shall refer to as Josh) recently was reported to be buying at US$60/g whilst Fidelity was buying at US$49/g equating to more than US$11 000 more per kg! This means miners (legal and illegal), licenced and unlicensed buyers who buy gold from miners will naturally flock to Josh and guys like him for higher returns. Logically there is no way Josh and buyers like him will sell at a loss to Fidelity. One can automatically assume buyers like Josh are the major proponents of smuggling the metal out of the country.

Not all areas have registered buyers

In an interview with Mining Zimbabwe Mines and Mining Development Dep Minister Hon Polite Kambamura said in Makaha, the area has small scale mining activity taking place but there is no Fidelity Agent near the area or nearby Mutoko centre. The miners are therefore expected to board a bus to Marondera the capital of Mashonaland East province 148km away. Surely can we expect a miner to go that far to sell only a gram of gold?

Gold smuggling an African problem

Billions of dollars worth of gold are being smuggled out of Africa every year through the United Arab Emirates in the Middle East – a gateway to markets in Europe, the United States and beyond – a Reuters analysis has found.

Customs data shows that the UAE imported $15.1 billion worth of gold from Africa in 2016, more than any other country and up from $1.3 billion in 2006. The total weight was 446 tonnes, in varying degrees of purity – up from 67 tonnes in 2006.

Much of the gold was not recorded in the exports of African states. Five trade economists interviewed by Reuters said this indicates large amounts of gold are leaving Africa with no taxes being paid to the states that produce them.

In a nutshell, gold smuggling is a problem that is prevalent and the common factor in gold-producing African countries are restrictive policies on gold trade.

Conclusion

Although citizens should be concerned about the increasing rate of gold smuggling, they should also scrutinize the reasons leading to the practice becoming prevalent. Like the late legendary Music Icon, Dr Oliver Mtukudzi said “Wongorora Chikonzero chaita musoro uteme”, a lot needs to be done to curb smuggling.

Fidelity official gold buying prices Tuesday 11 May 2021

Fidelity Printers and Refiners (FPR) official gold buying prices Tuesday 11 May 2021

SG 90% AND ABOVE US52 958.72/kg
SG ABOVE 85% BUT BELOW 90% US52 071.15/kg
SG ABOVE 80% BUT BELOW 85% US50 887.71/kg
SG ABOVE 75% BUT BELOW 80% US50 295.99/kg
SAMPLE BELOW 10g BUT ABOVE 5g US51 479.43/kg
FIRE ASSAY CASH US53 254.58kg

EXCHANGE RATE 84.5282

  • 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

 

Rushwaya distances herself, ZMF from arrested smuggler

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Zimbabwe Miners Federation (ZMF) President Ms Henrietta Rushwaya has distanced herself and the ZMF from  Tashinga Nyasha Masinire who has made headlines after being arrested for possession of smuggled gold worth R11 million (equivalent to US$782 636.85) at OR Tambo Airport in South Africa.

Social Media and online news outlets were awash with articles stating Masinire is Zimbabwe Miners Federation President Henrietta Rushwaya’s aide and driver.

Mining Zimbabwe reached out to Rushwaya who said Masinire ceased to be in the employ of ZMF after tendering in his resignation on the 28th of August 2020.

“For the record Tashinga Masinire stopped working for the ZMF as a driver in August in 2020 and for people to be seen now wanting to associate him with Zimbabwe Miners Federation or myself, in particular, is a bit unfortunate”.

“He tendered in his resignation and it will be folly for people to want to attach him to this organisation or to my persona as the President of the Zimbabwe Miners Federation”.

“As the Zimbabwe Miners Federation President I clearly and categorically state that Tashinga Masinire was no longer an employee or ZMF neither was he still my driver and any action taken against him should not be in any way associated with us,” Rushwaya concluded.

Masinire was arrested on Saturday for smuggling gold valued at R11 million (equivalent to US$782 636.85) at OR Tambo airport in South Africa. He was granted R100,000 bail early today by a Kempton Park Regional Court in that country.

He is facing charges of contravening the South African Customs Act 91 of 1964 and Precious Metals Act 37 of 2005.

Zimbabwean gold smuggler granted bail in South Africa

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A man arrested on Saturday for smuggling gold valued at R11 million at OR Tambo airport has been granted bail by a Kempton park court in South Africa.

The alleged gold smuggler named in court as Tashinga Nyasha Masinire was granted R100,000 bail with stringent conditions.

Masinire conditions prohibit him from departing South Africa and he has to report at the nearest police station three times weekly.

He was remanded to July 1, 2021.

 

 

Chinese accused of illegal rare earth mining in northern Myanmar

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Environmental groups in the north of Myanmar say a surge of illegal mining for rare earths has occurred in Kachin State close to the Chinese border since the coup on February 1.

Activists have complained about a rapid influx of Chinese workers since the country’s political turmoil erupted and that many trucks are lugging fertilizer bags loaded with minerals from illegal mines in Pangwa and Chipwi townships across the border.

China gets significant imports of medium and heavy rare-earth minerals from Myanmar. Irrawaddy, a news website run by long-time Burmese exiles in Thailand, said the Global Times quoted Chinese customs data showing that imports of rare earths rose by 23% in 2020 to around 35,500 tons.

Irrawaddy quoted an activist saying the number of trucks carrying rare earths had risen from one to two a day to 10 to 15 and the material was crossing the border “easily” despite the Covid-19 alert.

A spokeswoman for TANK, the Transparency and Accountability Network Kachin, said there had been an influx of Chinese miners and trucks carrying the rare earth material were leaving “day and night”.

The group says there are around 10 rare earth mines near Zam Nau, an area controlled by the New Democratic Army Kachin, a local militia aligned the the Myanmar military, which has deterred state mining officials from intervening.

More than 20 villages have reportedly suffered polluted water and soil because of illegal digging. Environmental groups say the Chipwe River turned red on two occasions due to mining waste.

Given that the Kachin Independence Army is currently fighting government forces (and has been since the ceasefire was broken in 2014), this controversial exploitation of local resources – which includes vast amounts of jade and timber as well – appears likely to continue.

On Monday May 3, the KIA appeared to have a small victory, when its troops shot down a military helicopter while conducting strikes in Momauk, where there has been fighting for several weeks. The Myanmar army is seeking to recapture Alaw Bum base on a hill on the Chinese border. It is is strategically important for areas between Bhamo and Myitkyina.

Battle for Kachin States’ resources, notably jade

Many analysts say this fighting is a battle for control of resources – but more likely jade than rare earths. The size of the jade industry dwarfs almost any other in Myanmar, except perhaps the drug trade from the Golden Triangle, which UNODC says could top US$40 billion a year.

An investigation by the London-based anti-corruption NGO Global Witness – Jade: Myanmar’s “Big State Secret” – estimated the the jade industry was worth up to $31 billion in 2014 alone – equivalent to nearly half of the entire country’s GDP.

Yet the proceeds were secretly controlled by notorious military figures and drug lords, it said, while local people got little benefit. This is widely known.

There has been speculation that Aung San Suu Kyi wanted to reform the jade sector, which has also been plagued with rampant drug use and regular tragedies, generally caused by landslides at mining sites, which have claimed hundreds of lives.

Groups in Kachin State had been calling for the NLD government to freeze licences and take control of the sector to end the huge social and environmental costs.

The struggle over jade is perhaps the major driver of armed conflict between the Myanmar army and the Kachin Independence Organisation and its military wing the KIA. They want the state’s jade riches shared and managed so they can have a lasting peace.

Cost of the coup

Meanwhile, the cost of the February 1 coup for ordinary citizens and companies that invested in Myanmar continues to soar.

Up to 25 million people – half the country – could drop into poverty by the end of the year because of the impact of the Covid pandemic and the political crisis, the UN Development Programme warned on Friday.

A study at the end of last year, showed that 83% of households reported that their incomes had been cut almost in half due to the pandemic.

The number of people living below the poverty line is estimated to have increased by 11 percentage points due to socio-economic effects of the pandemic. And the deteriorating rights and security situation since the coup is expected to drive the poverty rate up by a further 12 percentage points this year.

Foreign investors have been hammered as well.

On Tuesday May 4, Norway’s telecom giant Telenor said it had written off the value of its Myanmar operation in light of the country’s deteriorating security and human rights situation. “We have fully impaired Telenor Myanmar with an amount of 6.5 billion Norwegian krona ($783 million),” the company said.

Asian Times Financial With reporting by Reuters