Mining ZimbabweLatest Mining News, Policy and Industry Updates

Gold deliveries declined to 3,97 tonnes during the first three months of 2021 from  5,72 tonnes during the comparable period last year after heavy rains swamped shafts and kept artisanal miners from work for prolonged periods.

Following years of protracted droughts, Zimbabwe has just had a good rainfall which has resulted in a bumper crop harvest.

Artisanal miners, estimated at about 1,5 million in Zimbabwe, have been producing over half of the country’s annual gold output after a two-decade economic crisis triggered the closure of most big operators.

Big miners have been slowly reclaiming their position over the past two years, but slight disturbances to the operations of artisanal miners still result in falling national output.

Formal miners have faced several operational challenges including late payment for gold delivered to Fidelity Printers and Refiners (FPR).

Foreign currency retention thresholds imposed by the central bank have also affected mining operations.

Figures from FPR showed that large-scale miners, also referred to as primary producers, delivered 2,99 tonnes with small-scale miners coming in with 1,58 tonnes during the period.

FPR’s report came as Caledonia Mining Corporation announced on Monday that output at its flagship Blanket Mine was slightly subdued at 13 197 ounces during the period due to heavy rainfall and lost shifts.

Caledomia said it was on track to achieve a production guidance of between 61 000 and 67 000 ounces for the full year, before scaling up output to 80 000 ounces by 2022.

“Production in the first quarter of 2021 was slightly below our target and below the comparable quarter in 2020 albeit at a level which allows us to maintain our 2021 production guidance of 61 000 to 67 000 ounces for the full year,” Caledonia chief executive officer Steve Curtis said.

Economist Tafadzwa Chisango agreed with Caledonia, saying heavy rains had hampered operations.

“Given that most of the gold is produced by small-scale miners it was inevitable that there was going to be a decline  in this year’s first quarter output, largely necessitated by heavy rains the country received in the quarter in question,” Chisango said.

“This, to a greater extent affected mining activities for artisanal and other small-scale gold mining operations as most do not have high end drainage machines to drain water from shafts.

“But addressing issues such as payments and continued extension of  gold support schemes like the one that was unveiled by the central bank recently remain key in bolstering output in the remaining quarters,” Chisango said.

He projected that gold output would increase in the remaining quarters.

Another analyst, Victor Bhoroma said: “Delays in payments are yet to be solved.

“This leads to high levels of smuggling to markets such as South Africa and the United Arab Emirates.

“Gold worth at least US$100 million per month is leaving the country through illegal channels.

“I foresee gold production falling below 15 tonnes in 2021 if the exchange rate and payment delay issues are not addressed”.

Newsday

The Chairman of the Portfolio Committee on Mines and Mining Development, Hon. Edmond Mkaratigwa has encouraged communities and investors to use legal channels to resolve conflicts or disputes whenever they feel their rights are being violated.

By Shantel Chisango

Commenting on the conflict between local miners at Dinde Community in Hwange and a Chinese company, Beifer Investments, Mkaratigwa said foreign investors must work with locals, be responsible and legal in approach while the community does the same in return.

“Communities have values and have to be upheld and in all instances. Investors need to be responsible and legal in approach while the community should also act legally and responsibly.” Mkaratigwa said.

The Honourable member of Parliament encouraged local miners to approach the Mines Committee through petitions whenever they feel that their rights are being violated by mining investors.

Mkaratigwa said that the increase in cases whereby foreigners and locals go head to head is the reason why the committee is hastening for the finalisation of the Mines and Minerals Amendment Bill.

“It is among these challenges that the Committee is itching for the finalisation of the Mines and Minerals Amendment Bill,” said Mkaratigwa.

Adding on, Mkaratigwa said land resources are important for the development of the country as peace is the key to any national development.

Dinde community members are locked in a stand-off with a Chinese investor over the latter’s proposed coal exploration operations within their community, with villagers fighting to stop the operations. Villagers argue that the Chinese investors are in breach of environmental and customary laws of the country as they have not produced any documents granting them permission to work in the area nor engaged the community for a social license.

Villagers expressed their fear that, should the project continue, they will be subjected to forced relocations while others will be exposed to air and water pollution of Nyantuwe River which provides drinking water for humans and livestock. Villagers also fear the loss of livelihoods and grazing land for their livestock, destruction of cultural heritage sites such as graveyards for the Nekatambe Chieftainship as well as contamination of ritual sites in that area.

According to Dinde Residents Association, from February 2019 to December 2019, a team of Chinese nationals 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. Locals approached the Chinese, who failed to produce documents authorising them to explore 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 that path.

In a show of resistance, 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 Leadership, Zimbabwe Republic Police, Zimbabwe National Army and a local miner, to coerce the villagers.

Dinde is home to thousands of Nambyas and Tongas with a preponderance of the Tonga who first settled in Whange district up to Victoria Falls right upstream of the Zambezi River between 300 AD and 400 AD. The Nambyas tracked in from Masvingo in the early 19th century. According to a local traditional leader’s narration, most people who settled in Dinde area were relocated from Sinamatela area in 1920 to pave way for a game reserve (Hwange National Park). The area has had five Chiefs since its establishment in 1920 and four of the chiefs who have passed on are buried near the site where the Chinese want to mine.

Additional information extracted from the CNRG website

Zimbabwe Diamond and Allied Mineral Workers Union (Zdamwu) Secretary-General Justice Chinhema has called for the government to enact laws that protect and benefit local miners at large.

By Shantel Chisango

Speaking on the trending issue of local miners being cheated or illtreated by investors, Mr. Chinhema said there is a need to reflect on the importance of local miners and the government must protect its local mining citizens by ensuring that there are laws that place immunity on local miners while benefiting all.

“There is a need to reflect on the critical role of mineworkers in the country, and we expect the government to now put policies that protect and benefit mine workers.

“We want policies that protect communities that are being mined. We want a safe working environment and investors who respect and observe the laws of this country,” said Chinhema.

Chinhema stated that the existence of gross unfair labour practises especially on wages and salaries while corruption and leakages rise at their peak is destroying the mining sector.

Furthermore, he said 2021 is a year that mineworkers declare their independence from poverty and poor presentation, hence the promise to stand for local miners and their rights.

“Workers through their vibrant union are challenging the criminal elements in the name of administrators to get what they worked for,” stated Chinhema.

Mr. Chinhema assured all mineworkers that Zdamwu is going to stand with miners in a bid to promote their rights and protect them from predatory investors and sabotaging policies.

Zdamwu is an organization that helps in addressing challenges being faced by retired and current workers in the Zimbabwe mining sector.

For several years, it has been known that Zimbabwe hosts some uranium deposits in Kanyemba area (Mbire District) near the border with Zambia and Mozambique along Zambezi River Valley. 

But no major works have been done to confirm the quantities of uranium and whether they are large enough to support a viable mine.

However, the uranium project meant to provide alternative electricity to the country has always been on the Government’s agenda. In the 1990s, the late President Robert Mugabe is reported to have mentioned Zimbabwe’s intention to acquire a nuclear reactor from Argentina while in 2005, he said the discovery of uranium will go a long way in further enhancing the government’s rural electrification programme. 

This week, Cabinet approved the framework for cooperation with the Russian Federation State Atomic Energy Corporation, which among other issues seeks to develop technical expertise required tap into nuclear energy.  

Information, Publicity and Broadcasting Services Minister Monica Mutsvangwa, told a post-Cabinet briefing the memorandum seeks to facilitate higher-level cooperation between the two countries in the use of nuclear energy. 

“The anticipated cooperation in the use of nuclear energy for peaceful purposes will provide alternative sources of energy which Zimbabwe needs,” Mutsvangwa said.

Zimbabwe, like many other African countries is exploring various alternatives cleaner energy sources like wind, solar and methane gas as it seeks to boost power supplies and reduce carbon emissions from fossil fuel-based power production. 

Currently, South Africa is the only country in Africa with a commercial nuclear power plant. But according to the International Atomic Energy Agency (IAEA), a third of the almost 30 countries around the world considering adopting nuclear power are in Africa. Ghana, Kenya, Egypt, Morocco, Niger, Nigeria and Sudan have engaged with the IAEA to assess their readiness to embark on a nuclear programme, and Algeria, Tunisia, Uganda and Zambia are mulling the possibility, according to the agency. 

In southern Africa, the push to consider nuclear power is being driven in part by drying of hydroelectric dams as a result of climate change, Reuters reported in April last year. Those dams – particularly Lake Kariba — provide a majority of the electricity to many southern Africa nations, from Zimbabwe to Zambia. Experts say it is time Zimbabwe should conduct a feasibility study to ascertain if the nuclear deposits warrant establishment of a viable mine. 

“We have known of uranium deposits but what is not known is if Zimbabwe has enough stocks to support a viable mine,” said one mining executive who worked for two state-owned mining firms. “I think it is an area which this partnership should work on; coming up with a feasibility study with investors can bank on.” 

Energy and Power Development Minister Zhemu Soda said the “MoU marks the beginning of the journey” of taping into nuclear energy. 

“We want to learn from how Russia achieved,” said Soda. “This will help Zimbabwe to fully engage in nuclear energy.”

Business Weekly

MINE workers who were exposed to harmful substances and ended up contracting Silicosis or Tuberculosis at South African gold mines are set to receive compensation ranging from R10 000 to R500 000.

This development comes after the High Court in Johannesburg approved the settlement in the Silicosis and Tuberculosis class action reached on 26 July 2019 and came into effect on 10 December 2019 after all conditions had been fulfilled.

Dependants of mineworkers who have since passed away, a wife, children or life partner, will receive the payments.

In a statement yesterday, the Tshiamo Trust which was established to carry out the terms of the settlement said all eligible miners should come forward with their details.

Eligible claimants who were gold mineworkers between March 12, 1965 and December 10, 2019 will be compensated.

“The Tshiamiso Trust has been established to carry out the terms of the settlement and to pay monetary compensation to eligible claimants. An eligible claimant will be entitled to receive a once-off payment of between R10 000 and R250 000, depending on the nature and seriousness of the disease and harm suffered by such claimant,” read the statement.

“In some severe cases, an eligible claimant may be able to receive a larger amount of up to R500 000.”

An eligible claimant according to Tshimiso Trust is a person who is a member of companies who meets the requirements of the trust to receive monetary compensation.

“All class members can and are invited to submit a claim to the Tshiamiso Trust for monetary compensation, except for class members who opted out of the settlement. Details of how to submit a claim are provided on the trust’s website.

The full terms of the Settlement Agreement as well as the Court’s decision approving the Settlement Agreement is available on the same website,” read the same statement.

It said the eligible are persons who undertook work that exposed them to silica dust and contracted Silicosis or Tuberculosis.

“Dependants for example the wife, child or life partner of such a gold mine worker who passed away may also apply for compensation.

Claimants who live in South Africa can call the Trust’s toll-free call centre number to make an appointment at their closest lodgement office in South Africa. Those who live outside of South Africa can call the Trust’s call back number to make an appointment at a lodgement office in their country,” it said.

The Chronicle

Resources group Caledonia Mining Corporation Plc says first quarter gold production at its local unit — Blanket Gold Mine came in slightly lower than same period last year due to flooding.

The quarter under review is generally synonymous with rains which result in lower production due to flooding.

During the first quarter to March 31, 2021, Blanket Mine produced 13 197 ounces of gold and management remains upbeat of meeting its production guidance of between 61 000 — 67 000 ounces for the full year.

“Production in the first quarter of 2021 was slightly below our target and below the comparable quarter in 2020 albeit at a level which allows us to maintain our 2021 production guidance of 61 000 to 67 000 ounces for the full year.

“Gold production has often been lower in the first quarter of each year and increases in the following quarters. The rainy season this year saw unprecedented rainfall causing flooding at the mine and resulted in several lost shifts during the period.

“These temporary issues have now been rectified and with the central shaft now operational, we remain on track to hit our 80 000 ounces target in 2022,” said Caledonia chief executive officer Steve Curtis.

Earlier this month, the mining firm announced the central shaft at the Gwanda-based Blanket Mine operational.

The central shaft has been a culmination of a six-year project costing about US$67 million funded through internal cashflow initiatives.

For the 2020 financial year, the Blanket Gold Mine produced 57 899 ounces, a new record for annual production.

WINSTON Chitando (WC), the Mines and Mining Development minister is at the vortex of a massive push to transform Zimbabwe’s mining industry. The strategy is to make sure the industry takes its rightful position as one of the major drivers of Zimbabwe’s economy. Since taking over the hot seat in 2018, the former Mimosa Mining Company executive chairman has had to make a few hard decisions including revamping the country’s mining laws and unveiling a strategy that will see Zimbabwe generating US$12 billion from its resources annually by 2023. The industry generates about US$2 billion currently. While doubts about his ambitious targets still linger on, the minister this week took time to share the progress that his reform agenda has so far achieved with our Business Reporter, Freeman Makopa (FM). Here is how their discussion turned out. Below are excerpts of the interview:

FM: Talk about amendments to the Mines and Minerals Act has been going on for some time. How far have you gone?

WC: There are a couple of issues in terms of the update and the first one is the amendment of the Mines and Minerals Act. The amendments are quite advanced and the draft amendments are now going through the executive process for further review. We expect that in the next couple of weeks, we should be ready to move to the next step on the Bill. The ministry, working with Attorney-General’s office has now finalised the proposed amendments which are now going through due process. We will give an update as and when we will move on to the next step.

FM: Will this be the final thing on your agenda?

 WC: In terms of the legislative agenda there are two other Bills which are due for review. These are the Gold Trade Act and the Precious Stones Act. The strategy has been that we finalise amendments to the Mines and Minerals Act first then move on to do the God Trade Act and the Precious Stones Act because the Mines and Minerals Act is really the cornerstone of the mining industry. So we want to finalise that first and the other Acts, whilst they are independent, they largely fit in the Mines and Minerals Act.

FM:  Take us through the benefits the Mines and Minerals Act

 WC:  The major benefits of the revised Mines and Minerals Act among other benefits is that it now has principles of administrative justice which are being aligned to the new Constitution.

It defines for the first time small-scale miners. So by being able to define small-scale miners, it enables the government to be in a position to come up with policy interventions which are geared towards small-scale miners. At the moment, in terms of the law, all miners are classified as the same. It also strengthens the ‘Use it or Lose it’ principle.

There are a number of clauses which are in there. If you recall around November last year the government came up with a principle which was termed ‘Orderly Mining’, whereby the government wants to see mining grow in a responsible manner in line with the laws of the country. So you will find that renewal of mining claims will not be automatic. It won’t be just paying; it will be a question of checking that you are compliant with the law.

FM:  The coal mining sector has been affected by many challenges. Please take us through what is happening

WC:  Zimbabwe has recorded over 25 billion tonnes of coal reserves. Coal export is an area we want to participate in.

FM:  Is the system of registering mines now watertight?

WC: I am pleased to say the hardware for the implementation of the Mining Cadastre System will be on sight in the next few weeks. We believe that by, latest, end of June the hardware will be on site and the implementation of the Cadastre system will start immediately, essentially by data capture, which will take place throughout the provinces and we are targeting that we have that system operational as soon as possible. I am pleased to say computerisation of the mining system is now around the corner.

 FM: What has been taking place around the Extractive Industry Transparency Initiative?

WC: Government is seized with the matter and we have the inter-ministerial committee on Mines and Finance who are looking at it, to look at the compliance of the EITI and when the time is ripe an update will be given accordingly.

On mineral leakages it is work in progress. It is an inter-ministerial intervention which includes other government departments which are seized with the matter. I think as it becomes necessary we can comment accordingly.