Mining ZimbabweLatest Mining News, Policy and Industry Updates

Officials from the Rwanda Energy Group (REG) will today tour Zimbabwe’s largest coal-fired plant, Hwange Power Station, multiple sources have said.

As was first reported by Business Times last week, the REG officials arrived in Harare on Sunday.

Well-placed government and ZESA Group sources told Business Times that the REG officials held meetings with ZESA Group where they exchanged notes on the electricity supply situation in Zimbabwe and Rwanda. Some parallel committees also met in areas of cooperation.

Business Times can report that the REG officials also paid a courtesy call on Energy and Power Development minister, Zhemu Soda.

They also met the City of Harare’s Public Lighting department. They also toured ZENT transformer manufacturing plant.

Yesterday, the REG and ZESA Group officials visited Masvingo where they toured a net metering factory and Tokwe substation. They then left for Victoria Falls the same day.

And today, they will tour Hwange Power Station, well-placed sources said.

All efforts to get an official comment from ZESA Holdings were futile.

The REG officials’ visit to Zimbabwe comes after ZESA and REG signed a Memorandum of Understanding (MoU) last year in Kigali, Rwanda, on the cooperation between the two companies.

The MoU runs for five years, with the possibility of being renewed.

The MoU was signed between ZESA executive chairman, Gata and REG chief executive officer, Ron Weiss. Zimbabwe’s Ambassador to Rwanda, Charity Manyeruke, witnessed the signing ceremony.

The agreement provides the framework   of cooperation and aims at laying the foundation for the establishment of a business understanding which may lead to signing of the energy infrastructure implementation partnerships agreements between the two parties.

The MoU covers areas including energy generation, transmission, reduction of energy losses, and capacity building of personnel.

Each part will benefit from each other’s experience in the implementation of energy projects.

Business Times

A 33-YEAR-OLD miner from Bulawayo allegedly stole 1 500 kg of gold ore from his employer.

Nkosilathi Ngoma of Village A Hope Fountain, employed by Carry Mine Company, allegedly used a donkey-drawn scotch cart to transport the gold ore to Funglum Mine milling site.

The offence came to light when Mr David Ndlovu (58), a security guard at the mine, received a tip-off indicating that Ngoma had stolen gold ore.

Mr Ndlovu and two colleagues, Mgcini Ndlovu and Kith Ncube, rushed to Funglum Mine before Ngoma arrived and lay an ambush.

The security guard caught up with Ngoma as he arrived at the milling site.

Mr Ndlovu asked the accused person where he got the gold ore and he failed to answer leading to his arrest.

The security guard positively identified the gold ore.

Ngoma pleaded guilty yesterday to one count of theft when he appeared before Bulawayo magistrate Ms Rachel Mukanga.

However, he said he only took half a tonne of gold ore not 1,5 tonnes.

Ms Mukanga said the court will not accept an incomplete plea and she remanded him in custody to May 11.

The prosecutor, Ms Ashley Dube said on April 24 at unknown time at Carry Mine, the complainant received information from Bhekimpilo Moyo indicating that the accused person had stolen gold ore at the mine shaft and was ferrying it to Funglum Mine in a scotch cart.

“The complainant teamed up with two other colleagues, trapped and caught the accused person before he offloaded the ore at the milling site,” said Ms Dube.

The gold ore stolen weighs 1,5 tonnes and all was recovered. The value will be ascertained by an assayer and will be produced in court as exhibit.

The Chronicle

ZIMBABWE’S mining industry says chrome sector growth continues to be undermined by poor prices offered by buyers.

Ferrochrome exports form a significant part of minerals that Zimbabwe trades on the international markets every year.

Although the country is targeting to transform its mining industry to a US$12 billion sector by 2023, the sector currently generates about US$2 billion per annum, with chrome exports contributing US$15 million.

Other key minerals produced in Zimbabwe include gold, platinum and diamonds.

Zimbabwe Miners Federation spokesperson Dosman Mangisi on Monday said chrome ore under-pricing and international trade disruptions triggered by COVID-19 had become the biggest threat to miners.

“The current state of chrome is a bit down due to a number of issues, mainly pricing and COVID-19,” Mangisi said.

“The sector is losing potential revenue due to a lot of agents on the ground and under-pricing. Prices offered by the Chinese (who have emerged as the biggest market in the past decade) are very low. Chrome miners are suffering, particularly small-scale miners,” Mangisi added.

“I cannot say we have a ready market. The current buyers are failing to absorb what is on offer. The prices are trending at US$60 and US$80 per tonne depending on the grades,” he said.

This is far below the prevailing prices on the international markets.

In 2015, government reversed a ban on chrome ore exports that had been introduced in 2011 in an effort to force miners to value-add the mineral before shipping it out.

Zimbabwe has the world’s second-largest high-grade chromium ore deposits of approximately 10 billion tonnes, around 12% of global reserves, according to the Mines and Mining Development ministry.

These reserves are only second to South Africa.

But the chrome-rich nation produced just 866 000 tonnes of chrome ore in 2019, accounting for only 2,5% of global output, according to the International Chromium Development Association.

NewsDay

Approximately 70 percent of the engineering procurement and construction (EPC) scope for the Arcadia lithium project pilot plant has been completed, developer Prospect Resources has revealed.

The smaller, commercial scale plant represents a shorter and low risk pathway to near term production of lithium from the Arcadia while demonstrating capacity to investors.

Prospect has already signed offtake agreements with some buyers, including one of the world’s largest suppliers of specialty minerals Sibelco, for its petalite product.

Successful completion of the pilot plant will allow the company to start fulfilling global orders. All of the firm’s production for the first seven years is covered by offtake orders.

Initially, Prospect said it would build a larger pilot plant for both petalite (technical) and spodumene (chemical) lithium, but will now build a technical grade lithium plant first.

Petalite, as a proportion of the Arcadia mineral endowment is significant and increasing its recovery and global sales is an important strategic objective as the project progresses.

Arcadia, 38 kilometres east of the Capital Harare is set to become Zimbabwe’s largest and second active lithium mine, with capacity to produce both technical and chemical grade products.

Lithium is an integral element of the Government’s plans to grow mining to a US$12 billion industry by 2023 with lithium expected to contribute at least half a billion dollars by that time.

Mining is the main anchor of Zimbabwe’s foreign currency generation capacity, accounting for circa 60 percent (75 percent in 2020) of total annual foreign currency inflows.

The Australia Stock Exchange (ASX) listed company said its flagship project remained on schedule to achieve the first shipment of high purity petalite by the end of the second quarter of 2021.

Planned progress in design, procurement and construction of the Pilot Plant includes the 100 percent flowsheet and detailed engineering design, which have since been completed.

Also 100 percent of the procurement completed for (Dense Media Separation (DMS) unit and crushing modules delivered) while 90 percent of non-process infrastructure completed.

Earlier, Prospect said the DMS flow sheet for the pilot plant had been proved to offer greater technical certainty than the flotation flowsheet, which entails spodumene production.

The company said in a statement that modular equipment pre-assembly is 75 percent done, 25 percent of factory acceptance tests have been done for DMS while crushing modules and set up of power supply systems is 75 percent complete.

Additionally, Prospect said 75 percent of mining contractor mobilisation had been achieved while 50 percent earthworks and civils completed at the project site east of Harare.

Further, key upcoming milestones include making site power operational, mining blast and mining contractor mobilisation, crushing circuit and DMS module commissioning;

The company said it was also looking at commencement of production and transportation to port logistical arrangements and attaining the first shipment of high purity petalite products.

Prospect managing director Sam Hosack said they were pleased that the development of the lithium pilot plant remained on time and on budget, with the company also on course to ship high purity petalite by the end of June this year.

“The pilot plan forms a critical part of our project development and market integration strategies and we look forward to providing key customers with high-value petalite product to complete their qualification requirements.

“Prospect is generating spodumene samples via an experienced third party laboratory, as downstream lithium chemical customers only require 2kg spodumene samples to qualify,” he said.

Arcadia represents a globally significant hard rock lithium resource and is being rapidly developed by Prospect’s team, focusing on near term production of high purity petalite and spodumene concentrates.

The Arcadia mine is one of the most advanced lithium projects globally, with a Definitive Feasibility Study, offtake partners secured and a clear pathway to production.

Business Weekly