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Rowdy Boys 4 Mine Torments Fawcett Security Over $1m Debt Owed

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FAWCETT Security Operations is crying foul after a Chinhoyi based mining company, Rowdy Boys 4 Mine failed to pay for services rendered between June 2019 to date.

The top security company is now being owed $1525 068,98 and despite frequent demands, the mining company has failed to pay.

The case is now before the High Court where Fawcett Security has filed summons against Rowdy Boys 4 Mine demanding its dues.

According to court papers, on June 18, 2019, in Chinhoyi, the two parties entered into an agreement for the provision of security services at the defendant’s Hunyani Farm.

The contract still exists.

Pursuant to the signing of guard services contract, Fawcett Security provided guard services for six guards on 12-hour duty, three weapons and one dog starting in June 2019.

“The fees for security services were invoiced on the first day of the month in advance and payable on or before the 10th of the same month. Further defendant agreed to pay interest on all overdue accounts,” the court papers read.

The court was told the fees were set initially at $17, 736,00 per month but subsequently reviewed to take into account inflation and other factors.

Fawcett Security duly billed the defendant for security services rendered.

However, despite demand, the mining company failed and or neglected to pay its bills when they fell due.

It is alleged that the company made erratic payments and as at March 22 this year, owed Fawcett a sum of $1, 525, 068,97.

NewZimbabwe

Police blitz nets 9 000 illegal miners

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ABOUT 9 000 illegal gold miners have been arrested in a police blitz against gold panning across the country.

In a statement, national police spokesperson Assistant Commissioner Paul Nyathi expressed concern that the panners kept trekking back to their illegal mining sites soon after release.

“The ZRP warns members of the public against illegal mining activities across the country,” he said.

“Meanwhile, on April 11 2021, 102 people were arrested during operation Chikorokoza Ngachipere/Isitsheketsha Kasiphele and No to Machete Gangs. Since the onset of the operation, cumulative arrests stand at 9 021.”

The panners have been accused of destroying the environment, polluting water sources as well as engaging in other criminal activities such as robbery.

 

NewsDay

Botswana Diamonds embarks on building road next to drill site on Thorny River

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Botswana Diamond (LON: BOD) has announced that it is embarking on building a road next to the drill site on Thorny River diamond development project in South Africa.
Shantel Chisango
The Thorny project is located in the northern Limpopo province and the volume of its main deposits has been modeled at between 1.2 and 2 million tonnes to 100m.
It has a diamond grade ranging between 46 and 74 cpht and diamond values in the range of $120 and $220 per carat.
The Company also promised to re-enter Zimbabwe to focus on short-term production targets at Marange and advanced kimberlite pipe projects elsewhere in partnership with Vast Resources.
The Chairman of BOD. Mr. John Teeling said that ” Zimbabwe is going to be the final area of interest, a country which we believe is now emerging as a location where overseas companies can invest.”
The country, which was overtaken by Russia as the world’s top diamond producing country in 2014, is grappling with aging mines, as well as power and water shortages.
Still, the nation is home to some of the world’s most prolific diamond mines, including Lucara Diamo ds Karowe operation, where the now-famous Lesedi la Rona, the second-largest gem-quality diamond to be ever found, was unearthed in 2016.
Botswana Diamonds is a diamond exploration and development company that holds exploration licenses in Botswana and South Africa and a JV in Zimbabwe.

Artisanal miners could help Congo’s state-owned company become world’s fourth-largest cobalt producer

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Congo’s Entreprise Générale du Cobalt (EGC) could become the world’s fourth-largest cobalt producer in 2021, a new Roskill report states.

According to the market analyst, if the state-owned company is able to capture all of the 8,000 tonnes of cobalt expected to be produced by artisanal and small-scale miners in the African country, then it may become a major player, only behind Glencore, ERG and China Molybdenum.
THE DEMOCRATIC REPUBLIC OF CONGO HOLDS AROUND 70% OF THE WORLD’S RESERVES OF COBALT AND IS ALSO THE LARGEST PRODUCER, ACCOUNTING FOR OVER 70% OF COBALT MINE SUPPLY IN 2020

EGC was created a year ago but it became operative in late March. The company holds monopoly rights for the purchase, treatment, transformation, sale, and export of the DRC’s hand-mined blue metal and will sell cobalt hydroxide under a five-year contract with trading house Trafigura.

The Democratic Republic of Congo holds around 70% of the world’s reserves of cobalt and is also the largest producer, accounting for over 70% of cobalt mine supply in 2020. For 2021, consultancy CRU expects Congo’s large and small-scale mines to produce more than 100,000 tonnes of cobalt, or 71% of the global total.

Artisanal miners’ supply from the country, however, is highly elastic and depends on prevailing cobalt market prices. According to Roskill, over the last five years (2016-2020), it has accounted for an average 14% of the DRC’s annual output.

Besides consistency issues, the Entreprise Générale du Cobalt has been tasked with dealing with a myriad of environmental, social and governance (ESG) factors affecting artisanal and small-scale mining cobalt production in the country, in particular child labour and lack of safety measures.

This is why the deal with Trafigura also involves financing the creation of strictly controlled artisanal mining zones, buying centres and logistics to trace supply.

In Roskill’s view, however, the creation of these areas entails challenges such as the actual possibilities of policing them and enforcing the law. Most of the designated zones are remote and are not as well mineralized as the large-scale concessions held by the major mining companies.

“As a result, these will continue to attract attention. So, the plan to address and dissuade artisanal miners from invading private mining concessions will need to be carefully determined and implemented,” the report states.

But if these challenges are addressed, changes are implemented and small-scale operations provide the 8,000 tonnes of cobalt expected for this year to EGC, results for what is considered one of the world’s poorest countries, could be outstanding.

“Roskill estimates that over a million Congolese people are dependent on the revenues generated from cobalt ASM and its associated logistics and support businesses. Furthermore, in the DRC it is estimated that each worker supports an average of nine dependents. As a result, the development of a properly organised and thriving cobalt ASM sector in the country could be an immense force for good and one of the few positive legacies likely to arise from the growing demand for battery raw materials,” the review reads.

Mining.com

Silobela, a gold rich area with nothing to show for it

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The 60km Kwekwe – Nkayi road is supposed to be the shortest link between the two centres, but it has become the longest.

So bad is the road that what should be a 30-minute drive has since transformed into a two-hour nightmare as motorists cautiously negotiate around the potholes. The heavy rains that recently pounded the country worsened the already damaged road, making it basically untraficable.

The poor state of the road, which passes through Silobela in the Midlands Province, is only but a tip of an iceberg in as far as the state of infrastructure in the area is concerned. The area is still backward and the state of infrastructure does not paint a true picture of the vast natural resources available in the area.

Silobela is home to a number of mines, both large scale and small scale and millions worth of gold have been extracted from the area, but the area has nothing to show for it. Kwekwe, a well-known mining town, has a poor road network as well. Kadoma is another mining town that does not seem to be benefiting from its gold judging by its bad infrastructure. Silobela legislator Cde Mthokozisi Manoki-Mpofu said this was a serious challenge in the area saying ‘outsiders’ were plundering gold from Silobela.

“We have that problem in Silobela, whereby outsiders come to the area to extract gold and take it away without benefiting the area. Silobela is one of the least developed. I think you are aware of the Kwekwe-Nkayi Road; it is one of the worst roads in the country and it is deterring development in the area,” said Cde Manoki-Mpofu.

He envisages a situation whereby his area has a communication center, a Grain Marketing Board depot and a vocational training center amongst other infrastructure. Having noticed that the area was not benefiting from its resources, Government once helped a Peace Mine Community Ownership Trust, a first of its kind in the country which was supposed to benefit the community but it appears to have died a natural death.

Under the community trust, 10 percent of whatever was coming out of the mine was supposed to be channeled towards infrastructure development across Silobela. The idea was that the fund would be channeled towards community development with infrastructure like roads, schools, clinics, water and sanitation amongst other developments. Government built a state of the art mining and gold processing centre which has, however, been vandalized.

“It only lasted less than a year and it collapsed due to corruption. People there were only thinking of fattening their own pockets. Now Peace Mine has gone to the dogs and it was closed after people died due to improper mining methods,” said Cde Manoki-Mpofu. He however gave credit to a few miners who have ploughed back into the community.

“We have our local miner Mr Gwandu who helps with road maintenance and recently Decent Sibanda also provided us with his grader and tipper truck for rehabilitation of Dambridge road. We are so grateful,” said Cde Manoki. Zimbabwe Miners Federation (ZMF) Chief Executive Officer, Mr Wellington Takavarasha said plans to set up gold processing centers like the Peace Mine one, across the country were derailed by the Covid-19 outbreak. The processing centers were supposed to ensure that every procedure, from extracting the gold, processing, to the last stage was done at one place.

“The idea had to be shelved due to Covid-19 but I am sure since the lockdown restrictions are now being eased, we are going to resuscitate the idea working together with Government. Some investors have since gone round meeting with our member associates and plans are in the pipeline,” he said. Mines and Mining Development Deputy Minister Polite Kambamura said Government was working on modalities for communities to benefit more from local mineral resources.

“Local communities should benefit from mineral resources being extracted in their area. Mining companies, both large and small scale must engage local communities under the corporate social responsibility initiative. These initiatives must be agreed between the community and the mining organization and not to be imposed onto the community,” said Hon Kambamura.

On local authorities, Local Government Minister July Moyo is on record saying Government was also working on how local and rural authorities should benefit from mining companies in their areas. He also said devolution came to address the anomaly. “Devolution came to ensure that communities benefit from their resources.

You find that some places like Kwekwe have a vast number of mines dotted around the city but has poor infrastructure. Those mines should play their part by at least paying royalties to councils. We are formulating a system of how best local authorities should benefit from these mines; some of them who do not want to pay dues to councils,” said Minister Moyo.

A natural resources governance expert Mr Tapuwa Nhachi said communities need to be involved in the management of their resources.

“This should be done in line with Section 13(2) of the Constitution which states that people must be involved in the formulation and implementation of development plans and programs that affect them. There is also need for Government to craft deliberate policies aimed at fostering development in the host communities,” said Mr Nhachi.

If well implemented, the Government’s idea working hand in hand with the devolution concept introduced by the Second Republic, communities can start benefiting a lot more from their resources and the face of the country’s infrastructure, a key development tool, can be improved.

 

The Chronicle

Fidelity official gold buying prices Tuesday 13 April 2021

Fidelity Printers and Refiners (FPR) official gold buying prices Tuesday 13 April 2021

SG 90% AND ABOVE $50.10/g
SG ABOVE 85% BUT BELOW 90% $49.26/g
SG ABOVE 80% BUT BELOW 85% $48.14/g
SG ABOVE 75% BUT BELOW 80% $47.58/g
SAMPLE BELOW 10g BUT ABOVE 5g $48.70/g
FIRE ASSAY CASH $50.38/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

Grace Mugabe’s son detained for gold processing equipment theft

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FORMER First Lady Grace Mugabe’s son, Russell Goreraza, was yesterday remanded in custody at the Concession Magistrates Courts on charges of stealing gold processing equipment at Tian Bao Mineral Industry in Mazowe.

Goreraza (37) appeared before magistrate Moreblessing Makati together with his accomplices, Paul Sithole (45), Aaron Muchenje (31) and Trymore Madzitire (36).

The four were remanded in custody to today for bail ruling.

Goreraza is Grace’s son from her previous marriage.

The complainant in the matter is Prince Danda of Number 9 Calgary Farm, Mazowe, who is employed by Tian Bao Mineral Industry (Pvt) Ltd as managing director.

Allegations are that on April 10 this year at around 7am at Tian Bao Mineral Industry (Pvt) Ltd Smithfield Farm, Mazowe Farm owned by the late former President Robert Mugabe and his wife Grace, Sithole, Muchenje and Madzitire dismantled a processing plant under the instructions of Goreraza.

The trio then loaded a gold smelter, ball mill, electric motor, approximately 200 ball mill metal balls, 50 ball mill liners, 20 slay pumps and 15 angle iron bars into a truck using a crane.

They were intercepted by Mazowe police and arrested.

The value of the stolen property is US$130 0000 and only property worth US$30 0000 was recovered.

Rosslyn Maurayi prosecuted.

Murowa diamonds running out of gems

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OUTPUT at RioZim’s gem extraction associate Murowa Diamonds slipped to 579 000 carats during the year ended December 31, 2020 after Zimbabwe’s oldest operating diamond mining asset depleted high-grade gems in 2019, the listed giant said on Friday, spelling out an exploration strategy to sustain production.

RioZim, the multi-resource operation quoted on the Zimbabwe Stock Exchange, had produced 685 000 carats in 2019, according to chairman Saleem Rashid Beebeejaun.

But it was a tough year for RioZim, which saw gold output at its three mines tumble 27% after breakdowns at the flagship Cam & Motor operation and troubles at the ageing Dalny Mine pulled back operations.

Output at Dalny Mine plummeted by 46% to 198kg after its milling section was crippled by downtime. But Murowa’s huge influence within the RioZim empire was quite significant during the period, pushing its contribution to profits to $495 million, from $22 million previously.

Much of this push was underpinned by hyperinflation in Zimbabwe, where regulators have directed firms to apply hyperinflationary accounting standards to help investors make out what’s coming out of companies.

“The group’s associate, RZM Murowa Private Limited, produced 579 000 carats from 685 000 carats produced in the comparative period,” Beebeejaun said in a commentary to the financial statements.

“The lower production in the current year is attributable predominantly to the processing of the low grade K2 resources after the high grade K1 (kimberlite) resources had been depleted in the prior year.

“The associate continued to contribute positively to the group’s profitability with a share of profit of $494,8 million compared to $22,9 million in the prior year.

“The company will build on its exploration drive from the prior year in order to upgrade and increase confidence levels on all resources across all our mines in light of the declining grades at Renco, One Step and Dalny mines.”

RioZim bounced back to profit after overturning a $581,4 million loss in 2019 and made a profit after tax of $452,73 million, which was underpinned by firming gold prices on the international markets.

Gold prices averaged US$1 765 per once (oz) during the review period, which was 27% higher than 2019’s US$1 395/oz.

Revenues increased to $3,1 billion in 2020 from $577 million in 2019.

“The company’s gold production declined by 27% from 1,66 tonnes achieved in the prior year to 1,21 tonnes. Throughout the current year, the group’s flagship operation Cam & Motor Mine carried out mining activities from the nearby One Step Mine hauling low grade ore to the Cam & Motor plant for processing,” Beebeejaun said.

“This resulted in a drastic fall in gold production compared to the prior year when the mine processed higher-grade ore from its Cam pits. The gold price maintained a growth trend throughout the year recording a 27% growth from the prior year’s average price of US$1 395/oz, to an average price of US$1 765/oz in the current year which counteracted the impact of lower production volumes.”

 

NewsDay

Young miners urged to advocate for laws, policies

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THE Zimbabwe Diamond Allied Workers Union (Zidawu) has encouraged young miners to continue advocating for laws and policies that promote transparency and accountability, resource mobilisation, and good governance as they work towards contributing to the targeted US$12 billion mining economy and an upper-middle-class economy by 2030.

Speaking at the Young Miners Foundation (YMF) minerals export, trade and value addition (METVA) seminar last week, Zidawu legal officer, Ms Proud Nyakuni said youths who were now constituting a large number of artisanal and small-scale miners should also continue advocating for laws and policies that promote transparency and accountability, resource mobilisation and good governance.

“Zimbabwe is endowed with over 60 minerals which are expected to boost the economy and as young miners, as we also work towards contributing to the US$12 billion mining economy and an upper middle-class economy by 2030, let us continue advocating for laws and policies that promote transparency and accountability, resource mobilisation and good governance. The National Development Strategy (NDS1) has good governance which ensures that youth participation is fully supported in all sectors of the economy,” said Ms Nyakuni.

She noted that young miners should be able to track and monitor the implementation of policies directly linked to them such as taking mining as a business. Ms Nyakuni said that NDS1 ensures job creation and youths should be at the forefront of creating jobs.

“As young miners have collaborations or groups coming together, pulling in resources to start mining projects so as to overcome the issue of financial capital. Contracts should be there to safeguard the projects. Also, take advantage of gemmology centres to take up careers in the mining field with the aim of being employers, not employees.”

Meanwhile, Sunrise Sign Language Academy chairman and founder Mr Douglas Mapeta said young miners should also consider learning sign language and have young deaf miners as it was important to have accessible mining environment for young miners with disabilities.

YMF chief executive officer Mr Payne Kupfuwa said the seminar was an excellent forum for young miners to unlock the mining and mineral development opportunities for chrome, coal, gold, tantalite, gemstones, among many other minerals in Zimbabwe.

 

The Sunday News

Victoria Falls Stock Exchange lures small-scale miners

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THE Victoria Falls Stock Exchange (VFEX) says it is working on a framework that will guide listing by small-scale mining companies at the foreign currency-denominated bourse.

The VFEX, which was officially launched last year, has said it expects more listings this year and is rolling out investment campaigns targeted at potential investors.

SeedCo International is so far the only listed company on the foreign currency-denominated bourse.

Recently the Zimbabwe Stock Exchange (ZSE) subsidiary held a free virtual mining masterclass targeting mining companies and individuals that may want to invest.

The ZSE chief executive officer, Mr Justin Bgoni recently invited stakeholders to contribute towards crafting of the small-scale miners’ framework, which will then be used to regulate the bourse.

“VFEX seeks to increase its product range through the establishment of a regulated platform to list and trade small-scale mining companies.

“The listings requirements reflect, inter alia, the rules and procedures governing new applications and ongoing obligations that will be expected from small scale mining companies and are aimed at providing investor confidence via an orderly, secure, efficient and transparent financial market,” he said.

“The Victoria Falls Stock Exchange formally invites comments from all stakeholders on the first draft of the VFEX junior mining companies’ listing requirements issued on 6 April, 2021.”

Mr Bgobi said a consultative approach was being used to drive maximum benefits from the practical experiences of all stakeholders. He said input from stakeholders will be used in the crafting of the final draft, which will be submitted for regulatory approval.

“VFEX, therefore, welcomes input on the proposed Junior Board Listings Rules and any other issues related to their trading thereof,” he said.

The first draft of the framework was issued last Tuesday.

Some stakeholders have commended the move and urged VFEX to extend the facility to other sectors such as agriculture.

The establishment of the foreign currency-denominated stock market has a positive bearing on the country’s journey towards the establishment of an offshore financial services centre that the Government approved in 2012.

 

 

The Chronicle