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Lockdown: Mining equipment suppliers, service providers part of mining industry

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Industries that are directly linked to the mining sector are part of the mining industry and are exempted from operating during the lockdown, Parliamentary Portfolio Committee on Mines and Mining Development chairperson Hon Edmund Mkaratigwa has said.

Rudairo Mapuranga

The Vice President and Health Minister Rtd Gen Constantino Chiwenga announced that the government has put the country on a tight lockdown once again opening business to only a few industries regarded as essential by the law.

Among the industries exempted from the lockdown is the mining industry which is making strides to become Zimbabwe’s Cash cow.

Confusion has been professed on what really is the mining industry with some suggesting that mining equipment suppliers during the last lockdown period were somehow threatened with arrest by the police for breaking the lockdown.

According to Hon Mkaratigwa, any industry that directly deals with the mining sector when it comes to the extraction of resources can not be shut down because this will be indirectly shutting down the mining sector.

The Chairperson on Mines and Mining Development said the Ministry of Mines will announce how the mining industry is going to be operating.

“It looks presumably clear that the mining industry implies the whole mining chain unless there are some who feed into the sector who don’t qualify to be part of the mining industry. The industry has been exempted and the various sector representatives have to follow-up if need be. As of now, business resumes with regards to the Mines Ministry and if there is a need for any further facilitative arrangements, the Ministry should be able to direct accordingly.” Hon Mkaratigwa said.

Meanwhile Zimbabwe Miners Federation (ZMF) has said it was in the process of putting out exemption letters in order to help miners travel safely during the lockdown.

The police in their statements have said they are going to be very strict on exemption letters for essential service workers who will be travelling. ASM miners are encouraged to get exemption letters from ZMF the largest miners body in the country which is the brainchild of the Ministry of Mines and Mining Development whose birth was marked to represent and contribute to the development and growth of small scale miners.

Chiwenga full statement on new lock-down measures

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• Fellow Zimbabweans we have seen a surge in Covid 19 cases during this festive season with 1,342 Covid 19 cases and 29 deaths being recorded in a week representing the highest number recorded so far. We have seen the number of Covid 19 cases and deaths almost double in 2 months from 8374 on 1 November to 14084 to date. The cumulative number of Covid 19 cases in Zimbabwe as of 1 January 2021 is now 14084 cases and 369 deaths.
• In view of the surge in covid 19 cases the Government has intensified testing and patient care throughout all the provinces.
In light of the recent surge in Covid 19 cases the following stiff lockdown measures are being put in place with immediate effect;
1. Gatherings are reduced to not more than 30 people at all funerals. All other gatherings at weddings, churches, bars, bottle stores, gymnasiums, restaurants etc etc are banned for 30 days.
2. The existing covid 19 preventive health measures will be strictly enforced that is to say correct wearing of face masks, social distancing, hand sanitization and temperature checks will be strictly enforced and offenders will be prosecuted.
3. Only essential services are to remain open such as hospitals, pharmacies and supermarkets, with only essential staff allowed to come to work. These services can only open at 8 am and must close at 3pm and will be subject to a curfew that will start at 6 pm and end at 6 am.
4. Of the other commercial services only Part 4 lockdown order services such as mining, manufacturing and agriculture will operate as before. Other commercial services specified on Part 5 of the lockdown order that is to say all formal businesses and registered informal traders are suspended from Tuesday 5 January 2021 for 30 days.
5. Interprovincial and inter City transport services are restricted only to essential services and Part 4 commercial services.
6. People must stay at home save for buying food and medicines or transporting sick relatives. Other exceptions are as specified in the lockdown order.
7. As for schooling only examination classes are to open now.
8. Cross border traders are stopped forthwith save for commercial and transit cargo related to essential and critical services.
9. Air transportation remains unhindered and will continue as before with arrivals and returning residents being required to present Covid 19 free certificates. As for land access only returning residents and essential service drivers will be admitted subject to the presentation of Covid 19 free certificates. These certificates must have been issued at least 48 hours before departure.
10. Just to be clear, restaurants, bottle stores and bars are closed for 30 days except for bars and restaurants serving hotel residents. Also, tourist facilities and national parks will operate as before subject to the usual health precautions.

BREAKING: Zim imposes new lock-down rules

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Zimbabwe has imposed new lock-down rules following the spike of Covid-19 cases in the country.

Vice President and Minister of Health and Child Care, Constantino Chiwenga in a statement broadcasted live read out the new rules which are meant to curb the spread of the novel virus.

Said Chiwenga, “We have seen the number of covid-19 cases and deaths almost double 2 months from 8274 on one November. The number of covid-19 cases in Zimbabwe in light of the recent search in covid-19 cases the following stiff measures are being put in place with immediate effect”.

These are the added restrictions to the new lock-down rules

  • Gatherings are being reduced to no more than 30 people at funerals.

  • All other gatherings at weddings churches, bars, bottle, stores, restaurants etc are banned for 30 days

  • The curfew will start from 6 pm and end at 6 am

  • People must stay at home save for buying food and medicine or transporting sick relatives

  • As for schooling only examination classes are to open

  • Cross border trading stopped forthwith

  • Only essential services are to remain open such as hospitals, supermarkets and pharmacies and the services can only open at 8am and close at 3pm.

  • All formal business and informal business are suspended from the 5th of February 2021 for 30 days.

  • Interprovincial travel restricted to essential services

  • Restaurants, bottle stores and Bars are banned

The VP reiterated that mining, manufacturing and agriculture are essential services that will run as usual.

Miners in Zimbabwe have faced challenges in the level 2 lock-down facing constant challenges and harassment from Police at roadblocks.

Some small-scale gold miners in Maramba, Mashonaland East were in August 2020 detained for hours by police for travelling at night despite the mining sector being exempted from the national lockdown regulations and the curfew order.

Speaking to Mining Zimbabwe, the small-scale miners who spoke on condition of anonymity said despite carrying exemption letters from their parent ministry, they were detained by the police for travelling at night on mining business.

“We were transporting our mining consumables from Harare to Maramba in Mashonaland East on Sunday, but because our truck developed a mechanical fault while in Harare, we ended up travelling at night.

“While we did not encounter any challenges along the way, trouble started when we got to Mutawatawa Business Centre where we were detained by the police for travelling at night,” said one of the miners.

He said police at Mutawatawa Business Centre detained them from 8 pm to around 2 am. At the time the curfew was from 6 pm to 6 am.

Another small-scale miner who suffered the same fate said chances are high that there are also fellow miners around the country who were facing the same predicament and called on the law enforcement agents to take into consideration that the mining sector falls under the essential service.

“If more investigations could be done, you would find out that there are also fellow miners elsewhere across the country who have faced the same predicament as us. We are, therefore, making a clarion call to the law enforcement agents not to detain us for moving around at night on mining business as long as we carry with us proper documentation,” said the miner.

 

Sheila “Cde Yondo” Mabasa succumbed to COVID-19 – Mliswa

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Firebrand Norton member of Parliament Temba Mliswa passing his condolences on the death of veteran Norton Miner Ms. Sheila “Cde Yondo” Mabasa on his Twitter account said Mabasa died of Covid-19.

The tweet read, “My condolences on the passing away of Cde Sheila “Yondo” Mabasa who succumbed to Covid. Worked with her amicably when I was Chairman of the Province and we also had the same connection of coming from Shurugwi. She was a unique individual. May her soul rest in peace”.

Earlier reports had indicated Mabasa’s last known whereabouts were at Vimbai surgery in Norton.

Mabasa was the co-owner of the successful Moflegosh mine of Norton. Moflegosh mine is a typical example of how mining and agriculture can co-exist successfully and profitably. Instead of wasting away water from mine shafts, the water is used for agricultural produce at the mine.

In the video below the late Sheila Mabasa (Cde Yondo) explains gold and schist extraction from the shafts.

WATCH MABASA HERE

 

 

 

 

BREAKING: Veteran miner Sheila “Cde Yondo” Mabasa passes away

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Veteran Norton miner who was also a ZANU PF central committee member Ms. Sheila Mabasa also known as “Cde Yondo” has died.

Mabasa was a champion for women’s empowerment in the mining industry. She strongly advocated for women to venture into mining and not just rely on men for their upkeep.

Mabasa with her partners spearheaded a very successful Norton mine that employs over 150 people. The mine has an extremely successful agriculture project that is supplying all of Norton with tomatoes, vegetables and much much more. The mine also supplies Norton Police with an uninterrupted water supply.

Her partner, Mr. Fletcher Mbizo confirmed he had received the sad news but could not shed more light.

More to follow…

 

Alternatives to mercury use in small-scale gold mining

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In Zimbabwe elemental mercury is used in artisanal and small-scale gold mining. Mercury is mixed with gold-containing materials, resulting in the formation of the mercury-gold amalgam which is then heated, vaporizing the mercury to obtain the gold.

This process is very dangerous and can lead to significant mercury exposure with serious environmental and health risks. Minamata Convention on Mercury, aims to reduce mercury pollution, particularly from the artisanal and small-scale gold mining sector. The convention calls for parties to reduce, and where feasible eliminate mercury use within the gold mining sector. Traditionally, the use of mercury is one of the most accepted methods of recovering gold. In view of the dangers associated with mercury, there is need to explore alternatives which are safe and economically viable. Mercury-free techniques are safer for miners, their families, local communities and the
nation at large. They may also help miners market their gold at higher prices if they bring the concept of “green gold”. Below are some of the techniques that can be embraced.

Concentration Methods

Concentration methods thrive on increasing the amount of gold in ore or sediment, by selectively removing lighter materials (gangue). If employed effectively, concentration methods can eliminate or greatly reduce the quantity of mercury in gold recovery.

Prior to concentration, ore must be crushed or milled to liberate gold particles from rock and to increase the surface area. Concentration works best when particle size of the milled material or sediment is relatively consistent, so that most particles are of similar size. The use of screens or sieves can be employed to get a consistent particle size. Once the gold-containing material has the appropriate particle size, one (or several) of the methods described below can be employed to concentrate gold bearing material:

Most concentration methods rely on the high density of gold relative to other minerals in ore or alluvium mixture. These are referred to as gravity methods. Magnetic or chemical properties can also be exploited to enhance concentration.

Due to spatial and temporal differences as well as the uniqueness in mining operations concentration methods must be selected carefully. Factors such as the type of ore or sediment, other minerals present, gold particle size, and the availability of water and electricity should be considered when selecting a particular method.

Gravity Concentration Methods

Panning

The panning process uses water to separate heavy gold particles from lighter ones within a medium sized pan. In this process ore thought to contain gold is placed in a wide, curved pan along with water. The miner moves the pan in a series of circular motions designed to remove lighter sediments. The high density of gold allows it to settle on the bottom of the pan as lighter material is removed along with water. The process is repeated for some time until gold is exposed on the bottom of the pan for the miner to recover.

Panning is effective when gold is relatively coarse and well liberated. All factors being constant, panning can produce high grade concentrates or even liberated gold. Then miners can employ gold recovery methods such as direct smelting (described below), although many panning operations lead to directly recoverable gold. Panning is a low cost technology of gravity concentration that requires time and skill to be effective. One of the major drawbacks to panning is that miners must pan small amounts of concentrate. Therefore, panning is often done after other methods of gravity concentration such as sluicing have completed.

Sluicing

Sluices use water to wash ore or alluvium down a series of angled platforms. As water washes sediment down a sluice, gold particles tend to sink and are captured by material covering the bottom of the sluice, often carpets. Sluices are usually inclined at 5 to 15 degree angle. As moving water travels down a sluice, it generates greater force and keeps gold particles from sinking easily. For this reason most gold is captured at the beginning of the sluice. Carpets or other capturing devices on the bottom of sluices can be removed and washed in a bucket to remove the captured gold.

The design of a sluice can lead to higher gold recovery if the force of the water traveling through the sluice is greatly decreased. Also a series of rifles can contribute towards the management of flow to improve gold recovery. The use of a zigzag sluice can also achieve the same by creating a drop between the first and second platform that disrupts the velocity of the water as it moves down the sluice. Another way of improving the zig-zag sluice is to have a
combination of two sluice surfaces. The first is tilted at a steeper angle then the second, decreasing the velocity of the water as it hits the second sluice, increasing gold recovery. Water supply is a prerequisite to have a functioning sluice operation. This can be done with piping, drums, buckets, or natural flowing water bodies. A constant flow will be better than a bucket-driven flow. Sluices are good at concentrating large amounts of ore and sediment in a
relatively short time but often do not yield concentrates with high amounts of gold. The resulting concentrate must usually undergo further methods of concentration, such as panning.

Shaking Tables

Shaking tables are elevated tables tilted to one side with raised ridges running horizontally down their length. Crushed ore or sediment feed and water are released at one end of the table. The water washes the crushed ore down the table. As the material is washed down the table, specialized grooves trap gold and direct it to collection points on the side of the table as lighter minerals are washed away. Concurrently, the table is continually shaken by a motor to agitate the material and aid in the separation of gold.

Shaking tables are effective and can concentrate large amounts of ore at a time, considering high grade concentrates and liberated gold, but they are also relatively expensive and require some experience to operate.

Spiral Concentrators

The term spiral concentrator refers to specialized pans tilted on an angle with spiralled grooves. The spiral grooves in the pan lead toward the centre where a hole is connected to a container to catch material.

The pan is rotted continually using a pan as concentrate is fed onto the pan by an operator. In most designs a pipe extending horizontally across the pan sprays water along the surface of the pan as the concentrator spins. The water washes lighter particles down the spiral concentrator into a bucket while denser particles, including gold, are carried by the spiral grooves toward the hole in the centre of the concentrator. The process is repeated several times until the operator is left with a high grade concentrate, and often liberated gold.

Vortex Concentrators

Vortex concentrators makes use of a rotating flow of water to separate lighter materials from a concentrate and remove them via a raised drain hole. A vortex concentrator is a ‘circular tub’ with water input on the side of the tub and a raised drain in the centre. The said circular tub is filled with water until it reaches the level of the drain hole. The concentrate is then added in a thin layer around the bottom of the bowl. Following this, water is then pumped into the side input, creating a rotating vortex of water that drains in the centre. The created vortex pulls lighter material up from the bottom of the bowl and out through the drain hole. Gold because of its high density remains on the bottom of the tub for collection. The methods requires expertise in that there is need to monitor the amount of water flow going into the tub. If it is too great the velocity of the water will carry gold particles out of bowl and this will lead to losses of gold.

Centrifuges

By definition, a centrifuge is a vessel that rotates about a central point. Its wide application has been related to the separation of materials in a mixture by density. In a bid to apply the principle to gold processing, concentrate is fed into the centrifuge through an inlet pipe at the top of the centrifuge in a slurry of around 60-75% water and 40-35% solids. The fed material collects in a vessel in the centre of the machine where high speed rotation creates a force that moves the material up the sides of the vessel’s walls. As the materials are pushed up the sides of the bowl’s
wall, denser material like gold is caught in ridges while lighter material is ejected from the centrifuge.

Other Concentration Methods
Magnets

The use of magnets can be employed to remove magnetic minerals such as magnetite from the concentrate. Magnets can be used after and/or in conjunction with other methods of concentration. One technique for extracting magnetic minerals is to place handheld magnets on the bottom of a pan containing dried concentrate to separate metallic from non-metallic material. It is critical to take due care to avoid losing gold particles during the separation. The use of a piece of paper so that the minerals attracted to the surface of the paper can be easily
removed.

Flotation

The flotation process is usually used by large scale miners but can also be adopted in small scale operations. The process is best for processing complex ore types, especially ores that are difficult to process using gravity methods. When doing flotation, a mixture of slurry and frothing agents are added into a flotation machine. A tube releases air into the tank of the machine and an agitator creates air bubbles at the bottom of the tank.

Minerals that are hydrophilic, such as gold, attach to the bubbles’ surface and are brought up to the top of the tank. Other minerals fall to the bottom of the tank and are discarded as tailings. Bubbles containing gold and other hydrophilic minerals accumulate at the top of the water level as froth. This froth is then scraped off to create a concentrate of gold and other hydrophilic minerals. Flotation creates high quality concentrates and is good at capturing fine gold.

Gold Recovery
Direct Smelting

The methods briefly explained above can yield a concentrate with a large proportion of gold comparative to other materials. Nevertheless, there is need separate the gold from the other remaining minerals before it can be sold. Methods like direct smelting can then be employed to recover gold. When using direct smelting, the high-grade concentrate is heated until the gold melts. The liquid is then cooled to form solid gold dore, a semi pure gold alloy, that can reach upwards of 95% purity.

Chemical Leaching

Chemical leaching makes use of the chemical properties of gold to leach it from the ore, concentrate, or tailings. Leaching is commonly used in large scale mining operations but has been increasingly adopted in small scale mining because of its high gold recovery rate and low cost. For best results when using chemical leaching there is need to use a combination of preconcentration and mill leaching, as they lead to the least amount of waste, a short processing time for miners, and high gold recoveries. Some of the chemicals used for leaching are toxic e.g. cyanide compounds. When chemical leaching is employed, it is important for miners to handle the chemicals in a sound manner and to ensure that they use appropriate personal protective clothing to avoid health and environmental concerns.

Cyanide is highly toxic and great precautions must be taken when handling it. However, in contrast to mercury, cyanide is does not persist in the environment. Cyanide leaching should not be done on tailings where mercury is present because cyanide will from a soluble mercury cyanide complex, mobilising mercury to great distances.

Banning of mercury use in Zimbabwe

The Minamata Convention on Mercury is an international treaty designed to protect human health and the environment from anthropogenic emissions and releases of mercury and mercury compounds. Zimbabwe on the 29th of December 2020 became the 116th country to ratify the Minamata Treaty and the 51st in Africa.

Commenting on the ban of mercury use Minister Environment, Climate Change, Tourism and Hospitality Industry Mangaliso Ndlovu said “Mercury is a toxic pollutant that can circulate globally through the oceans and the atmosphere for years or even decades, and can cause significant harm to human health and the environment, sometimes very far from its point of origin. Acute or chronic exposure can be fatal; the World Health Organisation lists it as one of the top ten chemicals of major public health concern.”

The use of mercury is rife in the Artisanal Small-scale mining industry in Zimbabwe a trade which is undertaken by almost 500 000 miners.


Written by the EMA Zimbabwe additional editing by Mining Zimbabwe

Zimbabwe bans use of mercury in Mining

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Zimbabwe has banned the use of mercury in mining and placed controls on its release from industrial operations, joining several countries that have phased out the toxic liquid.

The ban will affect hundreds of thousands of small-scale gold miners who use the toxic metal to extract gold. Small-scale miners in ZImbabwe currently produce more than half of the country’s bullion output.

Zimbabwe had ratified the Minamata Convention banning the use of mercury in mining and put in place regulatory measures to stop its release from industrial equipment like boilers, incinerators and power stations.

Mercury, which is easily accessible to miners in Zimbabwe, is highly toxic and poses severe public health risks when it contaminates food and groundwater.

GDI, the upcoming mine of 2020

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Zimbabwe through President Emmerson Dambudzo Mnangagwa’s Open for Business Mantra has significantly attracted new mining projects from PGM, lithium, diamond, oil, and gas to mention a few. Great Dyke Investment’s (GDI) Darwendale platinum project’s performance in 2020 was promising and the miner is projected to record significant growth.

Rudairo Dickson Mapuranga

GDI is expected to become Zimbabwe’s next giant platinum mine and the project has been ahead of the schedule. The mine is expected to increase the country’s exports of Platinum Group of Metals in 2020.

The project has already spent US$100 MILLION to date including exploration costs. Reports have it that a significant amount of investment will now be needed if Great Dyke Investment, owned by Russia’s Vi Holding and Zimbabwean investors is to complete the $2 billion project.

The platinum project is expected to become Zimbabwe’s biggest platinum producer. When complete the project is expected to produce 860,000 ounces of platinum group metals and gold a year.

This means that the project will join South African companies Impala Platinum Holdings Ltd and Anglo-American Platinum Corp in producing the precious metal in the country.

The company is considering providing decent accommodation to police officers in Norton under a programme to construct 1 000 houses for its employees.

This year, the mine handed over blankets, kitchen utensils and various foodstuffs to nine families at Norton Police Station that lost property in a fire.

The project has been hailed by Zimbabweans across the political divide to with Norton Legislature Hon Temba Mliswa welcoming the company’s Corporate Social Responsibility in his constituency.

The project is expected to complete its 2nd box-cut in 2021 as well as to start construction of the concentrator, construction of the Tailings Storage Facility, construction of bulk surface infrastructure that includes power lines, water lines, road networks, and buildings and continuing with declining mining and development in both portals

Great Dyke Investment is expected to become a big player in assisting the mining sector to achieve the President’s vision for the industry achieving a US$12 BILLION earner by 2023 with contributions reaching 270000 of 4E Ounces production.


This article first appeared in the December 2020 issue of Mining Zimbabwe Magazine

Soldiers, Police arrested for robbing miners

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Two soldiers and a husband to a police officer were arrested for extortion and corruption.

Valentine Mutswiti (26), Cuthbert Mutori (22) and Kudakwashe Chivanga (33) were arrested at Spilanzima Shopping Centre in Doughladale, Bulawayo with the fourth accused Nokuthula Sibanda (32) still at large.

It is alleged that last weekend the four accused two dressed in full army uniform each armed with an AK assault rifle and two dressed in Police uniform scaled over Shadreck Mbambo’s dura wall into his yard and forced entry into his house through the main door.

Whilst inside the house they introduced themselves as members of the Security forces on operation code name “No to illegal Mining.” The accused persons then accused the miner of possessing gold and threatened to arrest him. Due to fear, the complainant gave in and gave the accused persons USD100. The accused persons then left the scene driving a Toyota Noah registration number unknown.

It is alleged again that, on the same night the same accused persons approached Sifelani Nyoni a registered miner operating Xmas Mine in Hopefountain area at his house. The accused persons did the same and were given 40USD.

It was discovered that Mutswiti and Mutori are currently stationed at ZRP Tshabalala Bulawayo on Joint Covid-19operations with the Police. Chivanga is a civilian and a husband to the accused Sibanda who is an officer stationed at ZRP Nkulumane, Bulawayo (Victim Friendly Unit).

Sibanda currently on the run.

Zimbabwe Mining in 2020

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The year 2020 was a difficult year for both large producers and small scale miners due to falling commodity prices as well as the impact of the COVID-19 pandemic which ravaged the entire globe.

Mostly affected in terms of both output and price compressions were base minerals such as chrome ore and ferrochrome, according to Finance minister Mthuli Ncube.

As a result, the sector ameliorated contraction to -4.7% in 2020.

This article seeks to discuss the bad and the good experienced by the mining sector during the course of this year.

THE BAD

Failure to pay gold producers timeously

Fidelity Printers and Refiners (FPR) underpays and sometimes pays late for gold. The body pays producers partially in forex and partially in amounts of Zimbabwe dollars determined by the official exchange rate.

Delays in payment for gold deliveries is one of the major contributory factors to the smuggling of Zimbabwe’s yellow metal to countries such as the United Arab Emirates and neighbouring South Africa.

Payment delays saw one of the biggest mines, RioZim shutting down its operations citing “insignificant” part payment of its gold deliveries to (FPR).

FPR has attributed the delays to settle payments for gold deliveries to the shortage of foreign currency following the outbreak of the Covid-19 pandemic, which has seen restrictions on international flights that transport the hard currency into the country.

For the industry to grow, FPR needs to reduce the turnaround time for payment of gold delivered by both large and small-scale producers. Currently, the turnaround time for payment is not sustainable. It forces producers to sell their gold in the black market.

Subdued capacity utilization

Total capacity utilization in the mining industry remained subdued at around 61% owing to challenges in raising capital and investment, according to Chamber of Mines. The main hindrance to capital flowing into the sector is a negative perception about the country and the political risk factor.

In addition, the Reserve Bank of Zimbabwe (RBZ) has faced obstacles in paying gold producers timeously, thus gravely affecting working capital for the miners.

Mine fatalities

Year-in, year-out, lives are lost in Zimbabwe’s mining sector, with corruption and inadequate monitoring of mining activities by the government cited as major causes.

The year 2020 was no exception.

On November 10, 2020, six miners got trapped underground at Patridge Mine in Esigodini and even today, their bodies have not been retrieved as the government has abandoned rescue efforts, saying the mission is too risky.

Again, rescuers are still trying to reach out to least 30 miners in Bindura who are trapped underground after a shaft collapsed. Other accidents which happened this year include five artisanal miners who got trapped underground at Task Mine in Chegutu as well as two miners who died after a shaft collapsed at the Globe and Phoenix Mine in Kwekwe District, 200 km southwest of the capital Harare.

In May this year another worker at Vumbachikwe Mine died after he allegedly fell during a blasting exercise when he was alone underground.

To end these disasters, mining activities across the country should be monitored. There should be training of people who can lead and monitor operations, especially on areas of drilling and blasting.

Corruption

Corruption continues to rear its ugly head in Zimbabwe’s mining sector. This year, the Zimbabwe Morning Post unearthed serious corruption cases involving officials in the Ministry of Mines and Mining Development who are allegedly causing man-made disputes in mining towns occurring around the country due to deliberate double allocation of registration certificates.

An investigation carried by the online publication shows that Provincial Mining Directors (PMDs), though armed with full knowledge on the ownership of mine claims in the country, deliberately re-allocate mine claim certificates to their loyal syndicates who either give them cash upfront or a percentage of the loot.

The publication also reported that small scale miners in Midlands Province were accusing the Midlands PMD Nelson Munyanduri and the national office of operating a well-orchestrated conspiracy of deceit, fraud, misrepresentations, chicanery and double-dealing after he double allocated a mining certificate on a disputed land.

Mineral leakages

Gold leakages remain on the increase in the country and require tightening of surveillance and penalties for illegal externalisation and other dealings, according to Finance minister Mthuli Ncube in his 2021 national budget.

Ncube said the Gold Mobilisation and Surveillance Committee, as well as the Minerals and Border Control Unit will be strengthened and capacitated to be able to execute their mandate,” he said, without giving figures.

According to government estimates, the country is losing about US$100 million monthly through smuggling.

Recently, the police arrested suspended Miners Federation of Zimbabwe president Henrietta Rushwaya on allegations of attempting to smuggle 6kg of gold to Dubai worth about US$300 000.

Policy inconsistencies

Chamber of Mines survey findings show that mining executives are worried about policy inconsistencies which characterized the operating environment for 2020 to persist in 2021, impacting negatively on business planning. They cited misallignment in foreign exchange and fiscal framework, liquidation of unutilised nostro balances, and multiple taxes to weigh down mining operations in 2021.

THE GOOD

$1 billion credit facility

On May 1, 2020 President Emmerson Mnangagwa announced an $18 billion economic stimulus package to scale up production in all sectors affected by the COVID-19 pandemic.

Out of the $18 billion, a total of $1 billion was meant to support a credit facility to incentivise investment in large scale and small scale mining and speed up implementation of a computerised cadastre system.

Though the intention to incentivise investment in large scale and small scale mining was good, the reports that a number of small scale miners failed to access the facility due to red tape among other challenges, are very unfortunate.

Mineral exports up

In his budget, Ncube revealed that in terms of export earnings, mineral exports were around US$2.4 billion for the period January to September 2020, compared to US$2.1 billion recorded over the same period last year.

Keeping mines operational during lockdown

Ncube said due to the nature of mining operations, most mining houses did not completely shut down during the lockdown period like other sectors. However, small scale miners operations were disrupted as the police kept on harassing them, demanding exemption letters.

2021 OUTLOOK

In 2021, the government expects the mining industry to rebound by 11% driven by planned expansion programmes aimed at increasing production by miners as we move towards the attainment of the US$12 billion industry. This, it said, will be achieved through increased exploration, expansion of existing mining projects, resuscitation of closed mines, opening of new mines and mineral beneficiation and value addition.

Further, expected improvement in availability of power supply and foreign currency are expected to propel production and capacity utilisation from current 61% to about 80% in 2021.

According to Chamber of Mines latest survey report, about 90% of mines are planning to ramp up production in 2021 while 10% expect to remain the same. Of the respondents that are expecting to increase production, approximately 40% are expecting to ramp up production by more than 30%. About 10% expect to increase output by between 10% and 30%.

Mining executives are expecting improvement in the global commodity market in 2021, with 90% of respondents indicating that they are optimistic of a favorable commodity market in 2021 on the back of anticipated improvement in the covid-19 situation. About 10% are skeptical about market conditions in 2021 and expect the covid-19 situation and depressed demand specifically for base metals to persist in 2021.


This article first appeared in the December 2020 issue of Mining Zimbabwe Magazine