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Reddit traders swarm silver and SPACs, Robinhood raises $2.4 bn

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Reddit traders swarm silver and SPACs, Robinhood raises $2.4 bn

(ATF) Silver buying driven by Reddit investors is picking up pace, while SPACs that haven’t identified target acquisitions are also being bid up by online retail traders. Robinhood has raised another $2.4 billion to meet the continuing boom in demand.

A rise in the price of silver that started in the Asian morning continued throughout the global trading day on Monday February 1, as buying that was coordinated on Reddit forums sparked reaction from other market players.

Silver prices reached a fresh eight-year high above $30 an ounce and a global shortage of physical bars and coins exacerbated buying that was also seen in silver derivatives and related ETFs and mining stocks.

There was growing speculation that hedge funds and other institutional traders were trying to game the most recent speculative bubble by using ‘bots’ to post on Reddit forums and drive up prices in silver and other assets.

The US Commodity Futures Trading Commission “is communicating with fellow regulators, the exchanges, and stakeholders to address any potential threats to the integrity of the derivatives markets for silver, and remains vigilant in surveilling these markets for fraud and manipulation,” its acting chairman Rostin Behman said in a statement.

There was some selling of gold to fund silver purchases but a shift towards buying of gold – which is a hugely popular physical investment with Chinese and Indian customers – would not be a surprise if silver sustains its gains.

SPAC buying

The GameStop phenomenon of online retail investors trying to identify the next stock or asset to buy that has previously been shorted by hedge funds is also now spreading beyond this goal to the special purpose acquisition company (SPAC) market.

SPACs are normally listed with a nominal $10 share price and trade close to that level while the sponsors look for a suitable target firm to take public.

A rise in the price of a SPAC much beyond $11 would in the past indicate that there had been leakage of information to the market ahead of a deal that is imminent.

But the Reddit-fuelled buying by retail investors is now spreading to SPACs that have shown no sign that they are about to close an acquisition.

SPACs formed by high profile investors like former Facebook executive Chamath Palihapitiya and ex-Citigroup banker Michael Klein are seeing buying from retail investors simply on the back of name recognition.

This has led to some SPACs being added to the list of names that have trading restrictions from popular online trading platforms, including Robinhood.

The surge in trading volumes on Robinhood has led to a sharp increase in its own capital needs to fund margin requirements with clearing houses, but the platform is managing to meet this demand for now.

Robinhood has raised another $2.4 billion in its second capital infusion within a week to meet its financing requirements.

Robinhood also continued to try to explain its policies to its retail investor users and to address concerns that it is changing trading limits to help the market makers who supply its revenue.

“Simply put, Robinhood limited buying in volatile securities to ensure it complied with deposit regulations,” it said in a blog post on February 1.

“Robinhood is about expanding everyday investors’ ability to invest. To be the trusted and responsible platform you can rely on, Robinhood has to operate within the existing regulatory environment.”

ATF

ZESA seeks 30 years jail for copper thieves

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ZESA seeks 30 years jail for copper thieves

ZESA Holdings is seeking a review of the mandatory sentence for criminals convicted for stealing power cables and transformers from 10 to 30 years to curb the vice that is prejudicing the power utility of more than US$2 million annually.

The parastatal is now in the process of replacing copper cables with aluminium.

Zesa requires more than US$14 million to procure intruder detection gadgets to fight the scourge that continues to bleed the power utility. This comes as police in Bulawayo have smashed a well organised copper theft racket, arresting two suspects and recovering 150kg of overheard copper conductors worth US$12 000.

The latest arrest brings to four, the total number of suspects nabbed within the same weeks as police step up efforts in the fight against rampant copper theft in Bulawayo and its vicinity.

Thieves are taking advantage of the 6pm to 6am curfew to steal copper cables.

A number of suburbs in the city including one of the largest referral health institutions in the country — Mpilo Central Hospital — often go for weeks without electricity following theft of cables.

Simon Tapfuma (32) of Magwegwe and Police Ncube (25) of Lobengula West were arrested on Sunday in the early morning hours while their two accomplices are still at large. Tapfuma and Ncube, who were part of a group of five suspects, were arrested when detectives caught them red-handed, leading to the recovery of the loot. The tools used in the commission of the offence were, however, not recovered.

Police impounded the suspects’ vehicle, a Toyota Hiace kombi, which was carrying the stolen cables.

The suspects were targeting areas around Mpopoma, Magwegwe, Njube and Lobengula suburbs.

Bulawayo provincial police spokesperson Inspector Abednico Ncube confirmed the arrests yesterday, saying investigations were ongoing. “We arrested two suspects whom we suspect operated as a syndicate. Our officers from the CID MFFU (Minerals Flora and Fauna Unit) received information that the suspects who were using an orange Toyota Hiace registration number ACL 4787 were in possession of stolen overheard copper conductors,” he said.

The cables belong to the Zimbabwe Electricity Transmission and Distribution (ZETDC), a subsidiary of Zesa Holdings.

“The detectives reacted to the information and located the vehicle and the suspects in the bush in Pelandaba West.”

Insp Ncube said upon spotting the detectives, the five men disembarked from their vehicle and took to their heels abandoning their car in the bush.

Police pursued the suspects and managed to catch up with Ncube and Tapfuma leading to their arrest.

“We recovered six rolls of overheard copper conductors valued at US$12 000 weighing about 150kg hidden inside their kombi. Investigations revealed that the suspects pulled down the cables on Sunday at around 1AM at Congo Beerhall in Mpopoma,” said Insp Ncube.

Upon arrest, the two suspects led detectives to the scene.

The suspects are linked to a series of copper theft cases which occurred in Mpopoma, Magwegwe, Njube and Lobengula suburbs.

Tapfuma and Ncube are expected to appear in court today facing charges of cutting, damaging and interfering with any apparatus for generating and transmitting electricity in violation of Section 60 A (b) of the Electricity Act.

Bulawayo has of late been hit by a series of power outages mostly due to copper cables theft, with suburbs such as Hillside, Burnside and Killarney being the worst affected.

Last week, Sunninghill residents woke up without electricity after thieves stole overhead copper cables worth an estimated US$15 000. On the same day Entumbane residents had also reported that some copper cables were found hanging from a guava tree.

During the same week, another suspect linked to an organised copper theft syndicate that stole cables worth US$36 000 from Zesa power lines in Bulawayo and surrounding areas, appeared in court.

Wisdom Ngwenya (26) of Mandisi Village in the Sigola area of Umzingwane District, who was arrested following a raid, allegedly ganged up with Tony West, Passman Kuneta and Alfred Phiri and pulled down 1 800 metres of overhead copper cables along Maggie Road in Kensington. Ngwenya’s accomplices are still at large.

Zesa’s acting western region general manager Engineer Lloyd Jaji said most of the power outages in the city resulted from copper cables theft.

Eng Jaji said the major challenge is that whenever they replace copper cables, thieves go and attack another area.

In April last year, about 950 metres of copper cables were stolen in Njube resulting the suburb including neighbouring Old Lobengula, Lobengula Extension and Mpopoma going for days without electricity.

Last May, police in Bulawayo arrested two serial copper cable thieves after using sniffer dogs to fish the two men out of a manhole while busy cutting copper cables. One of the suspects has since appeared in court and was sentenced to 70 years in jail over the US$20 000 copper theft case.

Zesa Holdings has since invited whistle-blowers to curb the upsurge in vandalism and theft of electricity infrastructure witnessed in the last few months_The Chronicle

Parliament happy with Great Dyke tax holiday

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Parliament happy with Great Dyke tax holiday

Parliament has hailed the decision by Government to grant a tax holiday to Great Dyke Investments (GDI) saying this is a strategic intervention which has the potential to unlock mining sector potential.

GDI, in partnership with Kuvimba Mining House, are developing a platinum mine in Mashonaland West province which is expected to boost Zimbabwe’s global standing in the platinum group metals industry.

To this end, Finance and Economic Development Minister Professor Mthuli Ncube last week granted the project a five-year tax holiday through Statutory Instrument (SI) 26 of 2021.

Reacting to the tax relief, Parliamentary Portifolio Committee on Mines and Mining Development chairperson Edmond Mkaratigwa said the relief means Government was looking at the bigger picture.

While Government heavily relies on tax for sustainance, Honourable Mkaratigwa said such a holiday is a shrewd “give and take” strategy.

“Sometimes it’s not only the immediate revenue from tax accruals that should inform policy,” said Honourable Mkaratigwa. Mining is a powerful industry with the potential to transform the economy and it is not a coincidence that His Excellency (the President) has set it as the anchor in reviving our economy.

“To achieve this envisaged growth, we obviously need investment from both local and international capital.

“But we are in difficult times occasioned by Covid-19 which has weighed down businesses and investors might be tempted to slow down on new frontiers which are at development stage as is the case with most projects in Zimbabwe.

“So what a tax holiday does is to defend such an investment and you won’t see anyone pulling out. Even in the eyes of other would be investors, the country is sure to earn some credit,” he said.

Mr Mkaratigwa said while Government might take stick today, reality on the ground is that it’s decision means hundreds of employees have had their jobs safeguarded and thus huge economic benefit to the economy.

 

The Chronicle

Peace Commission Investigates Chinese Miner Over Employee Abuses

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Peace Commission Investigates Chinese Miner Over Employee Abuses

THE National Peace and Reconciliation Commission (NPRC) is investigating Chinese mining company, Fools Investment Mine in Hope Fountain and other mines owned by the Asian nationals for alleged ill-treatment of their Zimbabwean employees.

This is after local civil society groups petitioned the independent commissions to probe the abuses.

Matabeleland Institute for Human Rights (MIHR) and 13 other civic organisations petitioned the Zimbabwe Human Rights Commission (ZHRC), National Peace and Reconciliation Commission (NPRC) and the Zimbabwe Gender Commission demanding an immediate probe on the entire mining sector especially at mines owned by the Chinese where violence against workers is reportedly rife.

The petition came after a Chinese miner, Zhong Yi Zhang at the Fools Investment mine allegedly assaulted two employees Costan Mhasa and Tatenda Mangena after they demanded their dues backdated to July last year.

Yi Zhang was arrested for the crime and his case is pending in the courts.

MIHR said NPRC has since taken the issue up and began investigations.

“Meanwhile MIHR is still receiving more incidences of alleged abuse of local mine workers by the Chinese miners,” MIHR said.

NPRC Commissioner Charles Masunungure confirmed that they received the petition from MIHR and 13 other CSOs to probe the abuse at the said mine and were yet to come up with the findings on the issue.

“I can confirm that we received the petition and we have since deployed a team to get to the bottom of the issue on the ground.

“At the moment, we are yet to know the findings. Our approach as a commission that receives complaints is, we must investigate and make recommendations on the issues we would have found,” Masunungure said.

He said the commission is not just focusing on the Hope Fountain issue but has widened its focus to establish what is going on at other mines and after the completion of the investigations, they were going to make recommendations on the findings and proffer solutions on the issues of concern.

In their petition, the CSOs said the Chinese miners’ behaviour was unacceptable and must be stopped.

The groups include, Matabeleland Institute for Human Rights, Women’s Institute for Leadership Development, Matobo Youth Development Initiative, Rural Communities Empowerment Trust, Community Podium, Christian Legal Society Zimbabwe, Community Youth Development Trust, South Western Region Gender Network, Ibhetshu likaZulu, Greater Whange Residents Trust, Gweru Residents and Ratepayers Association, Lupane Youth for Development and Masvingo United Residents and Ratepayers Association

The CSOs said the Hoper Fountain incident was not the first one, as in June 2020, a Gweru mine worker was shot five times by Chinese miner Zhang Xuen who also injured another.

“These are not the only incidences of Chinese mining companies being accused of torturing and abusing Zimbabwean mine workers.

“Incidences like these have also been reported in Insiza, Gwanda, Bubi, Hwange, Gweru, Matobo, Masvingo, Mutare and other Districts of the country where mining is taking place,” reads the petition.

“We have gathered in many areas of the country where the Chinese mining companies are operating that these acts of wanton human rights abuse are rampant and the locals no longer report them because of the impunity they have experienced.”

The CSOs pleaded with the commission to investigate the alleged abuses.

They said their petition was backed by the fact that Section 44 of the Constitution of Zimbabwe mandated that “the State and every person, including juristic persons, and every institution and agency of the government at every level must respect, protect, promote and fulfil the rights and freedoms” set out in the Constitution.

“Realizing that our citizens have failed to enjoy ‘administrative conduct that is lawful, prompt, efficient, reasonable, proportionate, impartial and both substantively and procedurally fair’ (Section 68 of the Constitution of Zimbabwe), we thus call for the Independent Commissions to step in and protect our citizens,” further reads the petition.

 

New Zimbabwe

Rare earths prices continuing on an ever upward curve

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Rare earths prices continuing on an ever upward curve

(ATF) Rare earth prices and their related stocks are on a continuous rise, with analysts wondering when this upward trend will ever end – given tight supply and mushrooming demand is projected for years ahead, it is likely the rare earth train is just leaving the station.

Minmetals Rare Earth issued a performance forecast on Thursday saying it expected the net profit attributable to its parent company in 2020 will be 222 million to 292 million yuan, an increase of 158.52% to 240.02% year-on-year.

Up to now, the firm’s subsidary Ganxian Hongjin Rare Earth Co Ltd had received a total of 157 million yuan in relocation compensation and awards, Sina Finance reported.

In addition, the year-on-year increase in the company’s main product sales gross profit, and relocation and liquidation inventory surplus, also contributed to the expected increase in the current period’s performance.

During the reporting period, it is estimated that the impact of non-recurring gains and losses on net profit is approximately 130 million yuan.

For other rare earths in early trading on Thursday, the rare earth permanent magnets sector once again strengthened, as Huahong Technology once again rose by the daily limit and Guangsheng Nonferrous Metals, Fangbang and Minmetals Rare Earths followed the rise.

Analysis believe that the strength of rare earth permanent magnet stocks stems from the recent rise in rare earth prices, which is mainly due to the continuous increase in the demand for magnetic materials downstream in new energy applications.

DOMESTIC QUOTAS

In the long run, with domestic quotas and insufficient foreign development, the contradiction between supply and demand in the rare earth market may intensify, and the space for sustainable profitability for leading companies is expected to open up.

Recently, the non-ferrous metals sector has performed strongly too. Among them, rare earth permanent magnet stocks lead the way. Northern Rare Earth’s closing price increased for three consecutive trading days and has accumulated a deviation of 20%, sparking an inquiry by the exchange.

On Monday, Southern Rare Earth Group announced the latest listing price of heavy rare earth oxides. Compared with last week, the average listed price of dysprosium oxide increased by 130,000 yuan/ton, the average price of terbium oxide increased by 100,000 yuan/ton, and the average price of lutetium oxide increased by 50,000 yuan/ton.

China’s rare earth price index shows that domestic rare earth prices have begun to rise after hitting a low in June last year, and the upward momentum has not diminished after entering 2021.

10-YEAR HIGH

According to data from Xinhua Finance, as of January 25, the price of dysprosium oxide in heavy rare earths was 2.235 million yuan/ton, reaching a five-year high; the price of terbium oxide also reached a high of 8.8 million yuan/ton, a record high in the past 10 years.

At the same time, the price trend of light rare earths cannot be ignored. The price of neodymium praseodymium oxide is also maintained at a high level of 455,500 yuan/ton.

An observer of the rare earth industry said that the market has now become increasingly popular for praseodymium and neodymium oxide as downstream magnetic material plants have continued to purchase on dips.

Some smelting and separation plants are in short supply of praseodymium and neodymium oxide, and they have received future orders, according to state media. In general, the prices of Nd-praseodymium products are firm and they are in the ascendancy as a whole.

PRICE ACCELERATION

Xie Honghe, the chief of non-ferrous metals industry at Zhongtai Securities, believes that this round of rare earth price acceleration may have just begun.

Domestic implementation of total control indicators, new overseas mines (run by Chinese firms), more limited supply, and new energy vehicles, frequency appliances, wind power and other green-based economic fields are all contributing to the demand for neodymium praseodymium oxide.

The biggest difference between this increase in rare earth prices and those surges of the past is that the rebound in demand for downstream magnetic materials from supply speculation has driven prices of rare earth products such as neodymium praseodymium oxide and neodymium iron boron up.

A number of brokerage research reports have pointed out that, in the short-term, the increase in the numbers of domestic home appliance inverter air conditioners is expected to bring about a rise in the demand for magnetic materials in 2021-2022.

ELECTRONICS DEMAND

At the same time, global sales of new energy vehicles have maintained a high growth rate, consumer electronics demand has stabilised, mid-to-high-end magnetic materials have resumed production – leading magnetic materials factories to continue to expand – and so the combined increase in light and heavy rare earth prices brought about by resupply needs will continue.

Taking the new energy automobile industry in China as an example, according to Zheshang Securities, global sales of EVs are expected to reach 2.8 million in 2020, and the demand for rare earth permanent magnets is expected to reach 14,000 tons.

By 2025, global sales of new energy vehicles are expected to reach 12 million and the demand for rare earth permanent magnet materials is expected to reach 60,000 tons, with an average annual compound growth rate of more than 30%.

China’s domestic policies have also given major support to the rare earth industry. In the past, the phenomenon of stealing and selling “black rare earths” (illegally mined) has been repeatedly cracked down on, and China’s days of selling rare earths at “cabbage prices” has come to an end.

MANAGEMENT REGULATION

On January 15, the Ministry of Industry and Information Technology publicly solicited opinions on the ‘Regulations on Rare Earth Management (Draft for Comment)’, showing China’s determination to regulate the management of the rare earth industry and promote its high-quality development.

“This is the first major legislation for the rare earth industry. The regulations have specific provisions on industry mining indicators, reserves, illegal products and traceability,” Li Shuaihua, chief analyst of the non-ferrous industry of Caitong Securities, said.

“The introduction of relevant regulations specifically for the rare earth industry reflects the government’s emphasis on the industry and the importance of the industry.”

ATF

Changes to EV supply chains signal a revolution in the new world order

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Changes to EV supply chains signal a revolution in the new world order

(ATF) Innovative new indices such as the ATFI Global Green Energy Transport and Technology Leaders Index can help investors better understand supply chains as the world undergoes unprecedented economic and geopolitical change.

“There is this profound global regime change [going on] – sort of a multipolar system anchored by both the United States and China,” said Peter Knez, co-founder at Incapture Technologies and a former chief investment officer at BlackRock.

“And so that regime change, that we’re really in the early innings of in many ways, is having a profound effect on the restructuring of global supply chains.”

Knez points to the announcement that Taiwan’s TSMC is building a computer-chip fabrication plant in Arizona as symptomatic of a global upheaval. “So the US now wants to have their own fabrication plants,” he said, pointing to an increasing regionalisation of supply chains replacing the former globalised outlook.

“And you see that in the migration of technology firms from China into India,” he added.

One sector that is deeply affected is electric vehicles. “So those are all examples of sort of regionalisation of global supply chains in the electric vehicle space, or certainly components of the supply chain that are critical for EVs,” Knez said, citing batteries, as well as semiconductors.

For its part, Beijing has pushed back with its own localisation plans, venture capitalist Alfred Chu said.

“China has really pushed for Increase localisation of supply chain with a focus on input replacement and economic and innovation security,” he said. “So, in the last decade, we’ve seen that in all sort of clean energy areas, as there has been a requirement for 70% local content.”

PUSH TO LOCALISE

For the past four or five years, subsidies for EVs required them even to have locally made batteries. “And so, batteries that were previously sold very well, and design into vehicles, such as those from companies like Samsung were excluded from any subsidies and therefore had very difficult time selling into the marketplace,” Chu noted.

He expects that attitude to harden. “We’ll see increasing requirements for localisation too, as a requirement for any sort of subsidies and sort of to access the general market.”

To track such complex developments, investors need a smart index, said Christian Kronseder, professor at University of Applied Sciences and Arts Northwestern Switzerland.

“From an index construction point of view this poses a very interesting challenge, because localisation of the supply chains means we have to cast a wider net than you usually do.”

Kronseder said it takes extra effort to identify local companies that are important to the supply, chain. “So we not only have to look into financial data, but also into alternative data in order to find those companies, which then dominate the local supply-chain markets.”

For the ATFI Global Green Energy Transport and Technology Leaders Index, Kronseder said it was key to apply advanced algorithms, machine learning and artificial intelligence to actually find those suppliers, “which are not as prevalent as you might usually do in a regular index construction setting.”

 

ATF

Zimplats channels US$1,2m towards exploration

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Zimplats channels US$1,2m towards exploration

Platinum giant, Zimplats, has spent US$1,2 million in exploration activities during the quarter ended September 30, 2020 while ore mined increased by two percent.

The ore mined was also four percent up year-on-year underpinned by improved fleet productivity and additional tonnage from the company’s Mupani Mine, presently under development.

In a trading update for the third quarter under review, Zimplats said: “A total of US$1,2 million was spent on exploration projects during the quarter and a further US$0,1 million was committed.

“Ore mined increased by two percent from the previous quarter and was four percent higher than in the quarter ended 30 September 2019 because of improved fleet productivity and additional tonnage from Mupani Mine, which is still under development.”

Total operating cash costs increased by three percent from the previous quarter as a result of higher volumes mined and an increase in minerals marketing.

A total of US$5,6 million was transferred from operating costs to closing stocks during the quarter, compared with $1,2 million in the previous quarter, owing to the increase in run-of-mine (RoM) ore and concentrate stocks.

Zimplats said the accumulation of run-of-mine ore stocks will continue in preparation for the commissioning of increased concentrator capacity, which is planned for the second half of 2022.

Operating cash costs per ounce increased by 12 percent from the previous quarter due to a combination of lower matte volumes and higher operating costs.

The Chronicle

Debswana diamond exports fell 30% in 2020

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Debswana diamond exports fell 30% in 2020

Exports of rough diamonds mined by the Debswana Diamond Company fell 30% in 2020, statistics released by the Bank of Botswana showed Friday, as the coronavirus pandemic hit demand and global travel restrictions impacted trading.

Debswana, a joint venture between Anglo American unit De Beers and the Botswana government, produces almost all of the southern African nation’s diamonds. Lucara’s Karowe mine is the only other operating diamond mine in the country.
According to the central bank data, diamond exports from Debswana fell to $2.02 billion in 2020 from $3.05 billion in 2019. Quarterly drops of 63% and 66% were recorded in the second and third quarters respectively.

Sales picked up in the fourth quarter, when exports climbed 35% compared to the same period in 2019.

In a bid to curb the spread of the virus, Botswana closed its borders for eight months last year, locking out international buyers from centres such as Mumbai, Antwerp and China, who traditionally travel to capital Gaborone ten times a year to view and buy diamonds from De Beers.

Botswana gets about 30% of its revenues from diamond sales, via its partnership with De Beers.

The government forecasts the pandemic will see the economy shrink by 8.9% in 2020, while the budget deficit will more than double. The economy is seen rebounding to growth of 7.7% in 2021 after the country reopened its borders in December.

Botswana has so far recorded more than 19,000 covid-19 cases, with 134 deaths.

Reuters

Zera issues e-licences

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Zera issues e-licences

THE Zimbabwe Energy Regulatory Authority (Zera) has introduced an electronic licensing platform for players in the petroleum sector.

The issuing of electronic licences, which are being distributed by electronic mail, began last week.

In view of lockdown restrictions on movement and the need for social distancing under the Covid-19 mitigation measures, there has been speedy adoption of digital business processes and transactions.

“Zera is delighted to announce to stakeholders that, with effect from 25 January 2021, the authority is now issuing electronic licences (e-licences) for the petroleum sector,” said the regulator in a public notice.

“Initially, e-licences will be issued for the following licence categories: petroleum retail, petroleum wholesale, petroleum production (blending), Liquified Petroleum Gas (LPG) retail and LPG wholesale.”

According to the authority, once the e-licences have been received, players are required to display printed copies in a prominent place as required by law.

Zera said all the licences will have security features namely, 2D Data Matrix, ID Linear Bar Code, unique licence number, and a watermark.

“E-licences can be verified upon request via [email protected],” said Zera.

The Chronicle

Zim urged to manufacture bitumen

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Zim urged to manufacture bitumen

EXPERTS have urged Government and local companies to expedite the manufacturing of bitumen to reduce the import bill after it emerged that over US$4,2 million has been used annually to import the product.

According to the World’s Top Exports, in 2019 Zimbabwean importers spent over US$4,2 million to import natural bitumen, asphalt and shale, up by 12,9 percent from the previous year. Also, Zimbabwean purchases of asphalt or petroleum bitumen mixes (up 140 percent), peat (up 51,6 percent) and petroleum oil residues (up 45,2 percent) grew at the fastest pace from 2018 to 2019.

With the Ministry of Mines and Mining Development’s geological survey stating that Zimbabwe has vast high-grade coal deposits occurring as fossilised carbon and about 12 billion tonnes of quality coal, industry experts have suggested that the country should utilise its coal deposits to manufacture bitumen.

In an interview, banker and founder of Bouyancy Capital Private Limited, Mr Innocent Chigwendere said the country was realising less foreign currency as most of the bitumen was imported instead of being locally manufactured from the vast coal deposits.

“We have vast coal deposits in the country and most of them have not been fully deployed. It’s that area as a nation that we should look at, and develop that resource. Instead of using billions of dollars importing bituminous materials for infrastructure development such as road construction, roofing, waterproofing, and other applications let us utilise our coal deposits and manufacture bitumen locally,” said Mr Chigwendere.

He added that roads in the country were in a bad state and the progress of repairing them was taking longer than expected as there were less resources and most of the bitumen was being sourced from other countries.

Mr Chigwendere also noted that there was need for import substitution to save foreign currency in the country and focus on projects aimed at locally manufacturing bitumen, thereby creating employment and producing more for export.

“There has been progress in terms of roads rehabilitation in the country but we are doing 200km per year based on what was done last year, it means we still have more years to go before we complete thorough rehabilitation in the whole country. If we look at this seriously as a country there is still time for us to cut the costs and utilise the resources that we have, at the same time also acquire environmentally-friendly equipment for infrastructure development.”

Buy Zimbabwe chairman, Mr Munyaradzi Hwengwere said as the country moves towards the attainment of Vision 2030, manufacturing bitumen locally was key.

“As part of the agenda of turning Zimbabwe into a middle economy by 2030, as a country the agenda is to be transformative, to move from a stage where we are dependent on import to realising that every cent we take out of the country we are putting it into someone else’s pocket.

“Bitumen is a key ingredient in the construction of the roads and if it can be manufactured locally, let us start moving towards that’s direction,” said Mr Hwengwere.

About 29 coal localities are known in Zimbabwe with the major producers being Hwange Colliery and Makomo resources.

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