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RBZ loses gold forex retention war

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RBZ loses gold forex retention war

The Reserve Bank of Zimbabwe (RBZ) has caved in to demands from small scale gold producers giving them the greenlight to retain 100% of their foreign currency receipts among a raft of measures to plug leakages amid low gold deliveries.

Gold producers have been besieging RBZ so that they are allowed to retain all of their receipts after miners were told to retain 70% of the proceeds from 55%.

Gold is the single largest foreign currency earner. But deliveries dropped by nearly half in July to 1.406 tonnes from 2.776 tonnes extracted during the same period last year. RBZ through its subsidiary Fidelity Printers and Refiners (FPR) reviewed forex retention threshold to 70% from 55% but deliveries continued to fall.

FPR general manager Fradreck Kunaka told Business Times that low gold deliveries to Fidelity prompted them to come up with a raft of measures to encourage deliveries to formal channels and arrest rampant smuggling.

“Small scale miners are receiving 100% US$ cash payment while primary producers are entitled to 70% foreign currency retention and 30% in bank transfer,” Kunaka said.

He said gold prices are now benchmarked against the London Bullion Market Association (LBMA).

“As from July 17, 2020, payment method was reviewed from paying flat amount of US per gram to 100% United States dollar payment benchmarked against the prevailing LBMA price to encourage gold miners to sell using formal channels and shun black market as well as smuggling,” he said.

Last year, FPR initiated investigations on registered gold buying agents amid indications of rampant black market dealings, which could have prejudiced Zimbabwe billions of dollars.

A situation which experts described as illogical since the primary miners will use small scale miners to get 100% forex payment.

As at August 14, 2020 prices averaged above US$53 per gramme, a situation which FPR believes will attract more miners to come through.

From a total of 1.406 tonnes delivered in July, 0.747 tonnes came from small scale miners and primary producers managed to deliver 0.658 tonnes.

Cumulative deliveries to date have gone down 20% to 12.003 tonnes from 15.070 tonnes due to unfavourable mining policies and effects of the coronavirus which thwarted many miners to buy consumables due to lockdowns in other countries. Last year, over 34 tonnes were smuggled to neighbouring countries, according to Finance minister Mthuli Ncube.

In 2019, gold export receipts fell 28% to US$946m from US$1.33bn, leaving the country with limited forex generators as tobacco also fell 7% to US$846.7m from US$907.8m in 2018. With limited credit lines, Zimbabwe is mainly dependant on gold and tobacco for forex.

Given that the first seven months of the year have passed, the authorities are afraid that the 35-tonnes mark will be missed for the second year running. Gold Miners Association of Zimbabwe chief executive Irvine Chinyenze said for the first time the central bank has walked the talk on small scale miners’ forex retention. “That is what we have been yearning for all these years, finally the central bank has delivered. It is always good to be paid at the world market prices,” Chinyenze said.

The government is forecasting a US$12bn mining sector by 2023 and expects gold to take charge with US$4bn export earnings_Business Times

Chinese mine, workers’ wage dispute turns violent

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Chinese mine, workers’ wage dispute turns violent

A Chinese coal mining company with claims in Hwange has come under fire from workers who have accused the firm of exploiting them without pay.

It has emerged about 200 workers employed by Chilota Mine, co-owned by some locals and Chinese, have been at loggerheads with the company over unpaid salaries dating back to few years.

The wage dispute recently spilled into the Labour Court where the firm was ordered to pay up the workers.

However, instead of implementing the court order, the company allegedly did not pay, resulting in some five employees reportedly confronting management over their dues.

Amounts owed to employees could not readily be established.

NewZimbabwe.com has it on good authority that five of the workers were recently fined at Hwange Police Station for unlawful use of a vehicle in violation of the Road Traffic Act.

This was after one of the Chinese managers reported a case of theft of a motor vehicle to police against the five who had driven the company car to file a report against victimisation by some company managers.

An admission of guilt fine ticket for one the workers Thabani Tshuma of Lwendulu village seen by this publication show that he was fined $500 on July 29 for unlawful use of a motor vehicle.

He claimed accomplices were also fined similar amounts.

“The workers once took the company to the Labour Court which ordered that it (company) pays them,” said a company source.

“Five workers recently confronted a Chinese manager and in the process, they drove to the police station in a company vehicle intending to file a report.

“However, when they got there the Chinese had already phoned the police filing a report of theft of his vehicle.

“When the workers got there, they were arrested for unlawful use of a vehicle and each was fined $500.”

The mine is one of the many contracted to mine in Hwange Colliery Company concession.

Local shareholders own about 83 percent of shares in the mine with the remainder owned by Chinese, who were roped in some five years ago when the struggling mine once suspended operations due to viability challenges emanating from subdued production, working capital constraints and contractual disagreements.

The local shareholders hunted for a foreign investor to help the mine venture into underground mining, with production then around 40 000 tonnes per month.

There have been numerous complaints about harassment of workers by Chinese at the Hwange mines with most of the cases not dealt with_NewZimbabwe

Fidelity gold buying prices Wednesday 19 August 2020

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Fidelity gold buying prices Wednesday 19 August 2020

Fidelity Printers and Refiners official gold buying prices Wednesday 19 August 2020.

SG 90% AND ABOVE $57.80/g
SG ABOVE 85% BUT BELOW 90% $56.83/g
SG ABOVE 80% BUT BELOW 85% $55.54/g
SG ABOVE 75% BUT BELOW 80% $54.89/g
SAMPLE BELOW 10g BUT ABOVE 5g $56.18/g
FIRE ASSAY CASH $57.80/g

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

Contact FPR

No. 1 George Drive, Msasa, Harare

Email: [email protected]

Telephone: +263 242-486670, +263 242-486694, +263 242-487131, +263 242-447810-5

Chinese-Zim owned mine under fire over unpaid salaries

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Chinese-Zim owned mine under fire over unpaid salaries

A Hwange based Chinese-Zim co-owned local coal mining company has come under fire from workers who have accused the firm of exploiting them without pay.

It has emerged about 200 workers employed by Chilota Mine, co-owned by some locals and Chinese, have been at loggerheads with the company over unpaid salaries dating back to a few years.

The wage dispute recently spilled into the Labour Court where the firm was ordered to pay up the workers.

However, instead of implementing the court order, the company allegedly did not pay, resulting in some five employees reportedly confronting management over their dues.

Amounts owed to employees could not readily be established.

A local publication has it on good authority that five of the workers were recently fined at Hwange Police Station for unlawful use of a vehicle in violation of the Road Traffic Act.

This was after one of the Chinese managers reported a case of theft of a motor vehicle to police against the five who had driven the company car to file a report against victimisation by some company managers.

An admission of guilt fine ticket for one the workers Thabani Tshuma of Lwendulu village seen by this publication show that he was fined $500 on July 29 for unlawful use of a motor vehicle.

He claimed accomplices were also fined similar amounts.

“The workers once took the company to the Labour Court which ordered that it (company) pays them,” said a company source.

“Five workers recently confronted a Chinese manager and in the process, they drove to the police station in a company vehicle intending to file a report.

“However, when they got there the Chinese had already phoned the police filing a report of the theft of his vehicle.

“When the workers got there, they were arrested for unlawful use of a vehicle and each was fined $500.”

The mine is one of the many contracted to mine in Hwange Colliery Company concession.

Local shareholders own about 83 percent of shares in the mine with the remainder owned by Chinese, who were roped in some five years ago when the struggling mine once suspended operations due to viability challenges emanating from subdued production, working capital constraints and contractual disagreements.

The local shareholders hunted for a foreign investor to help the mining venture into underground mining, with production then around 40 000 tonnes per month.

There have been numerous complaints about harassment of workers by Chinese at the Hwange mines with most of the cases not dealt with. NewZimbabwe

Lockdown slows Blanket Mine Central Shaft project

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Lockdown slows Blanket Mine Central Shaft project

MATABELELAND South-based gold mining company, Blanket Mine, says equipping of its Central Shaft has been slower than anticipated due to the adverse impact of Covid-19.

The development is likely to shroud production guidance for next year and beyond with uncertainity, the company said. Blanket Mine’s production guidance is anticipated at 75 000 ounces (oz) next year before reaching 80 000oz in 2022 and beyond.

Despite the negative impact of Covid-19 on equipping of the Central Shaft at Blanket Mine, the mining entity remains focused on this year’s production guidance of between 53 000oz and 56 000oz.

Last year, Blanket Mine, which is owned by Caledonia Mining Corporation, announced that it had completed a US$44 million Central Shaft sinking programme and was now working on equipping the shaft ahead of commissioning in the third quarter this year.

In a commentary following the publication of Blanket Mine’s production update for the quarter and six months ended June 30, 2020, Caledonia chief executive officer Mr Steve Curtis said while the coronavirus pandemic had no appreciable effect on Blanket’s production in the quarter, its impact will be felt going forward.

“Work on Central Shaft has been slower than planned because several members of the supervisory team returned to South Africa when the lockdown started in late March . . . it is not possible to predict when travel and other restrictions will be lifted so that work can resume on the project as planned and it is likely the timetable for commissioning of the Central Shaft will be extended to an indeterminate extent.

“This may affect the anticipated build-up in production, which is currently expected to be 75 000 ounces of gold in 2021 and 80 000 ounces of gold from 2022 onwards but it is not currently possible to provide revised guidance,” he said.

Mr Curtis said in light of the improved performance and the brighter outlook for 2020 and beyond, Caledonia increased its quarterly dividend from 6,875 cents per share to 7,5 cents per share in January 2020.

At the end of June, in light of Blanket’s strong performance, the higher gold price and the return to normal levels of production including renewed access to supply chains, Caledonia increased its quarterly dividend further to 8,5 cents per share, which means the cumulative increase in the quarterly dividend in 2020 is 23,6 percent.

“The board will review Caledonia’s future dividend distributions as appropriate while considering the balance between delivering returns to shareholders and pursuing the significant growth opportunities within Zimbabwe and in line with a prudent approach to financial management,” he said.

Meanwhile, during the period under review, Caledonia recorded a 12,4 percent increase in gold ouput to 27 732 ounces compared to 24 660oz in the relative period last year_The Chronicle

Charges dropped against top Implats executive over lockdown

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Charges dropped against top Implats executive over lockdown

Criminal charges laid against Impala Platinum’s Rustenburg division for violating Covid-19 lockdown regulations in April have been withdrawn, the company said yesterday.

The charges, that led to the arrest of the chief executive of the firm’s Rustenburg operations, Mark Munroe, resulted from the platinum miner’s decision to recall employees to work in the early stages of the nationwide lockdown after the company applied for permission from the Department of Mineral Resources and Energy to ramp up operations.

As workers attempted to return to work, Munroe was told to present himself at a police station. He was later charged. He appeared in court on April 17 and was granted R60 000 bail.

Implats said on Tuesday in a statement the withdrawn charges “related to alleged contraventions, by its Impala Rustenburg division, of certain regulations of the Disaster Management Act 57 of 2020.”

“All criminal charges in the matter against Impala as represented by Mark Munroe have been withdrawn,” it said.

It added it is continuing to undertake operations in a “legally compliant and responsible way” and has taken several proactive steps to safeguard its business through the challenges and volatility associated with Covid-19, with a focus on saving lives. Munroe was the only top corporate executive to be arrested in connection with the flouting of Covid-19 lockdown regulations.

In April, industries across the country ground to a halt as government implemented strict measures to curb the spread of the virus.

As of yesterday, the virus has resulted in the deaths of 11 982 South Africans.

Under the initial Level 5 hard lockdown regulations, mining companies were directed to put their operations under care and maintenance, with smelters operating at reduced capacity.

The current minimum standards for health and safety in mines were also not in place during that time. In May, Implats announced that temporary shutdown of its Marula mine in Limpopo after a discovery of a “cluster” of infection.

A total of 132 mineworkers have died from the virus of as of 17 August, according to information provided by the Minerals Council. The North West platinum belt has seen the highest number of coronavirus infections and deaths among mineworkers.

According to the Minerals Council, which represents mining companies, there are currently 12 028 active cases of Covid-19 in the sector with 43 327 test conducted.

The sector has maintained that the high number of infections were due to its high testing rate. It says it has seen 11 256 recoveries.

The country yesterday moved to alert level 2 of the lockdown, which saw a further easing of restrictions. – news24.com

RioZim female dump truck driver dies in horrific accident

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RioZim female dump truck driver dies in horrific accident

A Murowa Diamonds female dump truck driver last week died a horrific death after overhead rocks fell and crushed her truck cabin.

Images sent to Mining Zimbabwe show a badly injured lifeless body of Angeline lying on the ground with a ZRP officer taking statements.

Mining Zimbabwe reporters sent several enquiries to the RioZim PR team since Wednesday and to date, the officials have not responded only promising to get back with feedback.

Sources privy to the accident attributed the accident to negligence at the site.

“It is a clear case of negligence. They didn’t assess the road above where she was working from, poor engineering work”.

Meanwhile, the miner is reported to have offered compensation to the family of the deceased.

 

 

 

 

Fidelity gold buying prices Monday 17 August 2020

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Fidelity gold buying prices Monday 17 August 2020

Fidelity Printers and Refiners official gold buying prices Monday 17 August 2020.

SG 90% AND ABOVE $55.95/g
SG ABOVE 85% BUT BELOW 90% $55.02/g
SG ABOVE 80% BUT BELOW 85% $53.77/g
SG ABOVE 75% BUT BELOW 80% $53.14/g
SAMPLE BELOW 10g BUT ABOVE 5g $54.39/g
FIRE ASSAY CASH $56.27/g

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

Contact FPR

No. 1 George Drive, Msasa, Harare

Email: [email protected]

Telephone: +263 242-486670, +263 242-486694, +263 242-487131, +263 242-447810-5

Small-scale miners lead in gold deliveries

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Small-scale miners lead in gold deliveries

ARTISANAL and small-scale gold miners continue to lead in gold production after they delivered 700 kilogrammes of the yellow metal to Fidelity Printers and Refiners (FPR) in July.

The figure was higher than the 650 kilogrammes delivered by large-scale mining entities in July. The high delivery volumes by small-scale miners is attributed to the recent move by FPR to benchmark gold payments on the London Bullion Market (LMBA), which has seen local miners getting paid in United States dollars only.

The LBMA is the world’s authority for precious metals that also sets standards that define how precious metals are refined, as well as traded worldwide. Gold is one of the country’s top foreign currency earners. The yellow metal grossed more than US$1,6 billion in 2018 for the export of 33 tonnes which now stands as the industry’s all-time peak in recent history.

Responding to questions from Sunday Business on Wednesday, FPR general manager Mr Fradreck Kunaka said although the sub-sector’s contribution was high, the whole sectors’ contribution was commendable.

“At Fidelity Printers and Refiners we always aim at offering the miners’ value for their gold. As from the 17th of July, 2020 the payment of gold was reviewed from paying $45 flat fee on fine gold to 100 percent United States dollars payment benchmarked against the prevailing LBMA exchange rate,” said Mr Kunaka.

Mr Kunaka said small scale producers were in the lead in terms of gold delivery statistics, as indicated by data at hand as of last month
“FPR got 1  406  3692 kg in total. Primary producers brought in 658  4123 kg while small-scale producers delivered 747  9569 kg.”

He said FPR’s had the aspiration to encourage artisanal and small-scale miners to remain competitive and discourage them from pursuing the black market.

“Payments in United States dollars that are benchmarked against the prevailing LBMA exchange rate are a move meant to encourage the gold miners to sell using the formal channels and to shun the black market,” said Mr Kunaka.

Earlier in the year, small scale miners expressed discontent with the Reserve Bank of Zimbabwe’s decision to pay gold producers 55 percent of their earnings in United States (US) dollars and 45 percent in local currency. The Central bank had defended the lowered foreign currency holding threshold by saying there was a need to preserve the scarce foreign currency.

Zimbabwe Miners Federation spokesperson Mr. Dosman Mangisi said the move by FPR to accede to the miners request had changed the fortunes of gold miners.

“The livelihood of miners has greatly improved although there are some areas that still need to be resolved. We commend the payment of 100 percent United States dollars,” said Mr. Mangisi.

The Sunday News

Mimosa ramps production capacity

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Mimosa ramps production capacity

ZVISHAVANE-BASED platinum company, Mimosa Mining Company has produced more than 123 000 ounces of platinum in the financial year ended June 2020 and has surpassed its annual production capacity.

The company said it has shrugged off hurdles brought by Covid-19 to meet its target annual production after the Government granted its essential services status during the lockdown period. The company which is one of the largest platinum producers in the country is also targeting producing in almost the same amount of in the coming year to June 2021.

The company indicated that it has also increased its capacity which has been boosted by optimisation of equipment that will see output slightly going up by five percent. Mimosa Mining spokesperson Ms. Elizabeth Nerwande said the company has largely been able to meet its production targets, despite the Covid-19 pandemic.

“Our target production for platinum was 123 000 ounces. The target was achieved for the financial year ended June 2020.
Mimosa has largely been able to meet its production targets, despite the Covid-19 pandemic. This follows granting of essential services status to the mining industry by the Government. This allowed us to continue production while observing protocols to avoid the introduction and spread of Covid-19 in the workforce,” she said.

Ms Nerwande said Mimosa has also optimized the use of its equipment enabling to ramp up production.

“We have not changed our production targets. We will aim to produce at the same level going forward. Mimosa produced 123,000 ounces of platinum in concentrate for the financial year ended June 2020. Mimosa’s current production capacity is 120,000 ounces of platinum in concentrate per annum,” she said.

Ms. Nerwande said the company has also put in place measures to respond to the threats of Covid-19.

“We have not adjusted our production target as a result of the coronavirus pandemic. We are confident that the response measures which we have put in place are adequate to safeguard the health and well-being of our people, thus allowing us to produce to capacity,” she said.

 

The Sunday News

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