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Four tests positive for Covid-19 at Zimplats

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Zimbabwe’s Largest Platinum producer, Zimplats has reported that Four employees tested positive for COVID-19 during the quarter ended 31 December 2020 as the miner recorded zero lost-time injuries.

By Rudairo Mapuranga

According to the end of quarter report released recently by the miner, the company’s number one stance in prioritizing the safety of its workers was greatly achieved when it recorded no lost time injuries and attained 3.3 million fatality-free shifts.

“There were no lost-time injuries recorded. Safety performance remained good with no lost time injury reported, same as the previous quarter. The Group achieved 3.3 million fatality-free shifts,” the company said in part.

The platinum miner said, four employees, tested positive for COVID-19, three of them had since recovered while one was still under management at the company’s medical facility as of the end of the quarter.

 “The Group recorded four positive COVID-19 cases during the quarter taking the cumulative number of confirmed cases since the inception of the pandemic to seven. Six employees had fully recovered by the end of the quarter and one employee was recovering well at the Group’s medical facility.”

“The four cases recorded were managed in line with the Group’s COVID-19 code of practice which incorporates Zimbabwe Ministry of Health and Child Care and World Health Organisation guidelines resulting in no disruption to operations.”

“An increase in the country infection rate was witnessed towards the end of the quarter and management has responded by intensifying prevention measures in the Group. The workforce is adapting well to the current COVID-19 environment as the new normal.”

Zimplats spent US$ half a million on exploration

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Zimbabwe largest platinum producer, Zimplats spent half a MILLION on exploration projects during the quarter ended 31 December 2020 while nearly a million was committed.

By Rudairo Mapuranga

The platinum giant, spent US$1,2 million in exploration activities during the quarter ended September 30, 2020, more than 100 percent more than the money used in the quarter ended 31 December 2020.

“A total of US$0.5 million was spent on exploration projects and US$0.9 million was committed,” the company said.

Zimplats reported that ore mined decreased by 3 percent from the previous quarter mainly due to a production fleet transferred from Rukodzi Mine, a higher productivity mine, to the lower productivity Mupani Mine which is under development.

6E metal (Platinum, Palladium, Gold, Rhodium, Iridium and Ruthenium) production in the final product increased by 3 percent from the previous quarter due to a 1 percent increase in milled throughput and 1 percent increase in concentrators recovery rate.

6E metal production in final product increased by 26 percent from the quarter ended 31 December 2019. 6E metal production in the final product for the quarter ended 31 December 2019 was affected by an increase in concentrate stocks and the build-up of inventory in the furnace on start-up after the 122-day major rebuild shutdown.

Total operating cash costs increased by 1 percent from the previous quarter mainly due to local government rates and computer software licence fees which are paid bi-annually.

A total of US$1.8 million was transferred from operating costs to closing stocks during the quarter compared to US$5.6 million in the previous quarter. This was due to the 3 percent decrease in tonnes of ore mined and 1 percent increase in the volume of ore milled. There was no build-up of concentrate stocks in the quarter.

Consequently, operating cash costs per 6E ounce increased by 2 percent from the previous quarter.

Miners call for JOC as Farmers invade mines

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Miners are calling for a Joint Operation Command (JOC) for the Ministries responsible for land use and allocation to start working together as disputes continue rising of farmers invading land that has been allocated to miners and vice versa.

By Shantel Chisango

Land use conflict between Ministries leaves a lot to be desired as local government parcels out the land for urban expansion while Mines Ministry issue out claims on the same mining land, and on the other hand Ministry of Agriculture also parcelling plots.

Addressing a land dispute between a farmer and a miner, Norton Miners Association Chairperson Mr. Privelage Moyo told Mining Zimbabwe that government Ministries are lacking communication among each other and the result is chaos between farmers, miners and local governments.

“All Ministries to do with land issuing must work together as a team so that one ministry does not get to issue land which is already taken by either a farmer or a miner,” Moyo said.

THE MISSING LINK: COMMUNICATION

Moyo suggested the government form a JOC to prevent similar cases from occurring in the future.

“The government must form a JOC whereby all its head of departments are present providing information on the activities that transpire in one’s office so that they know which land is taken and which is vacant. Miscommunication from government departments hinders sectors involved from working effectively, going to and fro trying to solve the matter legally,” Moyo said.

Moyo further opined that the absence of transparency in carrying out duties by government departments is missing thereby resulting in the surge of corruption.

Putting emphasis on the issue, Moyo made reference to a land dispute which transpired in Mhondoro near Etna, Gweshe area of Mashonaland West, where he had gone to peg mines on the directive from the Mines Ministry only to find the land occupied by farmers who had been settled on the land by Kadoma DA Kunonga.

In another incident in Norton, Udicop through local government was given the land for housing where the Ministry of mines had claims, so now the gold is worthlessly buried under houses” Moyo said.

“According to the Ministry of mines map of Norton, more gold claims are shown or marked in areas that already have residential properties. There are areas and claims where new developments were taking over vast tracks of sustainable good and very rich minable land area”.

According to mine maps, some areas in Galloway, Ngoni Township, Katanga, Knockmalloch estate, and Knowe are built on Minable gold claims.

Moreso, he also made reference to a Norton miner at Ascott Mine who was last week approached by a farmer claiming to be the owner of the land which he has been mining on since 2010, both parties claiming to have title deeds of the land. Surely something can be done to fix this loophole in the system, he added.

Addressing this issue, the Chief Executive Officer (CEO) of Chegutu District Council Mr. Machingura said conflicts between miners and farmers over land are usually solved when there is proper clarification of documents on the land.

“Those issues are properly advised when people have sight to documentation from both parties,” he said

He further said that in cases of land disputes, the law favours the one who has owned the land for a longer period.
“The size of titled property matters and time of mine pegging, there is a constitutional provision where rights are protected, the only way can be dialogue,” he said.

Issues like these can easily be eradicated by having synergies between town councils, Agriculture and Mines Ministry consultations before any land is given away.

ZELA advocates for gender mainstreaming in small-scale mining

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The status of women at all levels of the mining sector can be improved by ensuring that gender issues are considered in legal and policy design through gender streaming, Zimbabwe Environment Law Association (ZELA) has said.

By Shantell Chisango

Speaking on its Twitter platform, ZELA said this task can be achieved if women are supported through awareness-raising activities around women’s property rights, access to finance and credit, access to local savings and loan schemes, and also involvement in land-use decisions.

Emphasising its support for women, ZELA mentioned that women face several existing economic challenges in artisanal mining, and these contribute to their limited participation within the sector.

Adding on, ZELA highlighted that there is potential to tackle obstacles that stand in the way of women in fully participating in mining.

“As we ponder on how we can re-imagine a feminist-responsive political economy and the future of mining-affected communities in the wake of Covid-19, we have the pleasure of launching a research that unpacks barriers to women’s full participation in mining.”

Gender-mainstreaming is quite critical, said ZELA.

Gender mainstreaming is an approach to policy-making that takes into account both women’s and men’s interests and concerns. The concept of gender mainstreaming was first introduced at the 1985 Nairobi World Conference on Women.

It was established as a strategy in international gender equality policy through the Beijing Platform for Action, adopted at the 1995 Fourth United Nations World Conference on Women in Beijing, and subsequently adopted as a tool to promote gender equality at all levels.

Hwange Villagers, Chinese Investors In Stand-Off Over Coal Project

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VILLAGERS in Dinde area, Hwange are locked in stand-off with Chinese investors over the foreigners’ proposed coal exploration operations.

The villagers want the operation stopped arguing the Chinese investors are in breach of Zimbabwe’s environmental and customary   laws.

They also accuse the investors of failing to produce any documents granting them permission to work in the area nor did they engage the local community for social cohesion.

The Chinese investors operating as Beifer Investments, moved to Dinde to start the work last Friday in Ward 13 of Hwange Rural District, Matabeleland North.

However, villagers fear that, should the project continue, they will be forced to relocate while others will be exposed to air and water pollution of Nyantuwe River which provides drinking water for humans and livestock.

They also fear loss of livelihoods, grazing land for their livestock, and cultural heritage sites such as graveyards for  the Nekatambe chieftainship as well as contamination of ritual sites.

According to the Dinde Residents Association, from February 2019 to December 2019, a team of Chinese investors toured the village without consulting or engaging locals.

“In December 2019, the same team brought some lightweight machinery and set up a camp behind one Emelia Mukombwe’s homestead within the village where they intended to start drilling,” the Dinde Residents Association said.

“Locals approached the Chinese, who failed   to produce documents authorising them to explore in the area.”

The Chinese intended to drill 13 holes in a straight line of a 1, 9 kilometre stretch without due care of what was in the path.

The locals ordered them to leave and return with documents granting them permission to work in Dinde.

Thereafter, the Chinese investors returned to Dinde with several officers from the Environmental Management Agency, Hwange Rural District Council, traditional leaders, Zimbabwe Republic Police, Zimbabwe National Army and a local miner, to coerce the villagers.

On 8 January 2020, a delegation of local community members was dispatched to Hwange Rural District office to establish the legality of the Chinese operation.

Hwange RDC chief executive Mr Phindile Ncube told them the Chinese had a special grant for exploration.

On June 2020, the Chinese returned to Dinde  in the company of Chief Charles Nekatambe, a  Mr. Ncube and Chilota Colliery Company proprietor  Lazarus Kwidini.

The chief, Kwidini and Ncube acted as gate- keepers, and barred interaction between the locals and the Chinese nationals. Kwidini told the villagers the Chinese were working on Chilota Colliery’s concession while Chief Nekatambe intimidated the villagers, threatening to get them arrested.

The Chinese returned to Dinde again on 11 November and 15 December 2020 accompanied by traditional leaders, state security agents and EMA officials.

Dinde is home to thousands of Nambyas and Tongas tribes.

The Centre for Natural Resources Governance (CNRG) said the local Dinde community had a right to live in their ancestral land and reserve the right to say reject forced evictions.

“Government must respect the rights of the Dinde community as enshrined in the constitution of Zimbabwe,” the CNRG said.

“The Chinese investor has violated the country’s environmental laws, specifically, section 97 which spells that an environmental impact assessment must be carried out before prospecting.

“The fact that the community of Dinde was not aware that they fall within a special exploration grant concession is testimony that they were never engaged.”

 

NewZimbabwe

Mines Ministry conducts investigations on KAZSHAM mine

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The Ministry of Mines and Mining Development is investigating allegations of ill-treatment and slavery-like working conditions at KAZSHAM mine in Norton.

Rudairo Dickson Mapuranga

The investigations have come after, artisanal miners in a partnership with Mr. Kazzie, an Indian investor and owner of KAZSHAM mine, called on the government to intervene in the situation at the mine which they described as “horrible”.

A provincial Mines Director confirmed to Mining Zimbabwe that the government was conducting an investigation into the allegations and if the mine is found on the wrong side of the law there will be a possible shutdown of the mine.

“The ministry is conducting an investigation into the allegations in your story. Should there be a need to shut down, it was certainly be affected. It all depends on the findings of the investigating team.” She said.

The artisanal miners said Kazzie was treating them inhumanly despite the fact that they are working flat out to produce much gold for the mine.

Kazzie is also being accused of channelling a large chunk of the mine’s gold production to “smuggling” sighting it as the reason why he has been delaying to pay them their percentage as he receives part of the money after the gold reaches its destination.

The artisanal miners said the Indian investor bridged the contract they agreed in which he was supposed to meet all the operations cost-sharing profits at 75/25 with the miners with Kazzie being the sole buyer of the gold from the miners. However, the artisanal miners are said to be now meeting all the operations costs. Kazzie allegedly buys the gold at US per gram meaning the miners are getting US.5 per gram with operational costs exceeding US per gram milled.

“We had agreed with Mr Kazzie that he will meet all the operations costs but he has not obliged to our agreement. He has, however, threatened to shut down the mine whenever we confront him, he even pointed a gun at some of us.” The miners said.

KAZSHAM mine has not built a single toilet for the artisanal miners who are numbering up to 200 and over 99 percent of them are working without PPE.

The artisanal miners complained that they were operating at very high risk with their partner sometimes hiring soldiers to beat and intimidate them.

When Mining Zimbabwe approached the KAZSHAM owner in order for him to answer for the allegations raised by the miners, he denied us entry only allowing members of the Police and Norton Miners Association.

Gvt should act on old mine shaft invaders

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Small-scale miners have called on the government to descend hard on elements in the mining industry as they disregard the sanctity of life and disrupt mining operations.
By Shantel Chisango
This came as a result of the number of mining accidents in old disused shafts that have continued to surge resulting in the deaths of illegal miners.
Speaking to Mining Zimbabwe, Zimbabwe Miners Federation (ZMF) Mashonaland West regional representative, Ms. Chiedza Chipangura said for the mining industry to thrive the government needs to eliminate criminal elements in the mining industry.
“It is high time government departments unite in wielding out mining cartels who are often at times misconstrued to be small scale miners.”
These mining criminal cartels hinder the mining industry from growing for they circumvent mining laws concurring with law enforcement workers and powerful forces.
“These criminals do not respect mining rights, they are a threat to the mining industry. They work in cohorts with rowdy law enforcement agencies, community leaders, and for some instances ministry of mines personnel.”
Ms. Chipangura further opined that when mining accidents occur due to ignorance and recklessness of the elements,  they still expect the government to chip in with taxpayer’s funds knowing that they do not pay any tax fees.
“Such people are not taxpayers and whenever disaster strikes they run to the government for taxpayers’ funds to assist with the retrieval of bodies, and supply of medical needs. It is high time someone is made answerable to such acts,” said Ms. Chipangura.
Zimbabwe has seen a surge in mining shaft collapse related accidents that have claimed a number of artisanal miners. Experts have attributed the deaths to the poor performing economy that is pushing people to take any opportunity available to make ends meet. Many resort to mining in disused shafts and carelessly extract ore from pillars that support the old shafts resulting in their catastrophic end.

New Prospect Resources Financial Chief eager to develop Arcadia Lithium

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New Prospect Resources Chief Financial Officer (CFO) Mr. Ian Goldberg has promised to use his expertise in finances to help with the enhancement of the Arcadia Lithium Project.

By Shantel Chisango

“I look forward to bringing my experience into the project funding as the business leverages the upside of stage development with market expansion on its pathway to production, said Mr. Goldberg.

Expressing his delight in working with Prospect Resources, Mr. Goldberg said Prospect’s Resources, exposure to European markets, and off-taker relationships are what attracted him to being a member of the group.

“I am delighted to work alongside the existing management team to lead Prospect during this transformational period as it seeks to develop the Arcadia Lithium Project. What attracted me to Prospect is the quality of assets, the strength of management team, exposure to European markets, off-taker relationships, and supportive major shareholders.”

Prospect Managing Director Mr. Hosack said Mr. Goldberg’s financial expertise will enhance the company’s growth as it finalises offtake and progresses project finance for the world-class Arcadia Lithium Project.

“The appointment of Mr. Goldberg, a chartered accountant, and finance professional with more than 20 years’ experience in the resources sector, is a key addition to Prospect’s senior leadership team as the Company finalises offtake and progresses project finance for the world-class Arcadia Lithium Project,” said Mr. Hosack.

He further stated that Mr. Goldberg is the rightful candidate for the post with his objective to secure Project Finance.

“Mr. Goldberg brings development capabilities, African operational experience, and a track record funding mining projects. Mr. Goldberg is the perfect fit for Arcadia’s pathway to production, with his mandate to secure Project Finance utilising his broad and extensive capabilities.”

Mr. Hosack applauded Chris Hilbrands for being committed to his work for the past eight years he has served Prospect Resources.

Mr. Goldberg is a chartered accountant and finance professional with more than 20 years of experience in the resources sector. His most recent role was CFO for Tiger Resources, a copper producer in the Democratic Republic of Congo. Prior to that role, he held a number of CFO positions at producing mining companies across Africa and Australia.

Unki’s Anglo American Platinum to release trading statement

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Anglo American Platinum will release results for the twelve months ended 31 December 2020 (“the period”) on the Stock Exchange News Service on 22 February 2021.

Shareholders are advised that headline earnings and headline earnings per share (“HEPS”) for the period are likely to increase by between 49% and 69% compared to the twelve months ended 31 December 2019 (the “prior period”). Headline earnings are likely to be between R27.8 billion and R31.4 billion (R18.6 billion in 2019) and HEPS will increase to between 10,586 cents and 11,957 cents per share (7,087 cents in 2019).

Basic earnings and earnings per share (“EPS”) for the period are likely to increase by between 50% and 70% compared to the prior period. Basic earnings are likely to be between R27.8 billion and R31.4 billion (R18.5 billion in 2019) and EPS is expected to be between 10,586 cents and 11,957 cents per share (7,046 cents in 2019).

The expected increase in headline earnings and basic earnings is primarily driven by a 71% increase in the rand basket price and partially offset by the impact of Covid-19 on M&C production, as well as the temporary closure of the Anglo Converter Plant (ACP) during the year, which resulted in lower refined production and sales from own production. The build-up in work-in-progress inventory will be released over the next 24 months. The ACP Phase A rebuild was completed on 24 November 2020 and has been operating well and in line with expectations.

The financial information on which this trading statement is based has been reviewed, but not yet reported on, by the Company’s external auditors.

Zambia is done for now with taking over mining companies

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Zambia isn’t looking to take over more mining companies, nor is the government planning to nationalize the industry, according to Finance Minister Bwalya Ng’andu.

The government has acquired Glencore Plc’s and Vedanta Ltd.’s local operations in the past two years. Remarks by President Edgar Lungu in December that Africa’s second-biggest copper producer wanted to take “significant stakes” in unspecified mines led to fears of a fresh wave of nationalization.

“We are at this point in time not looking at any other specific mining operations that we want to go into a relationship with,” Ng’andu said in an interview on Thursday in Lusaka, the capital. “In some quarters the president’s statement was misunderstood to mean that Zambia is contemplating taking over other mining firms by force or nationalizing mining companies. We are not in that business at all.”

The minister’s comments may ease concerns among investors in companies including First Quantum Minerals Ltd. and Barrick Gold Corp., which operate the southern African nation’s biggest copper mines. It also follows a series of clashes between mining companies and government over taxes, retrenchments and electricity pricing.

Zambia last century had a painful experience with mine nationalization, which bled the treasury and saw production plummet, ultimately leading to the state reversing the policy in the 1990s. Output more than tripled after the operations were privatized. Copper prices that dropped during nationalization and rose after mines were sold also played a role, according to economists including Grieve Chelwa at the Institute on Race and Political Economy at The New School in New York.

Past lessons

The country has learned lessons, Ng’andu said. The government can also use examples from other nations including Chile, where the state plays a significant role in copper mining, he said.

“We have to make sure we run these as proper businesses without interference in their operations,” Ng’andu said.

Zambia will also get a better understanding of mining taxation and royalties from running operations like those previously owned by Glencore.

“We never seem to get it right,” he said. “We feel we are not getting sufficient return from the exploitation of our resources.”

Bloomberg News