Mining ZimbabweLatest Mining News, Policy and Industry Updates

Anglo American Platinum Limited’s local unit, Unki Mine’s PGM production for the second quarter to June 2020 fell 40 percent to 31 300 ounces on the back of disturbances caused by Covid-19 induced shutdown.

Platinum decreased by 40 percent to 13 900 ounces while palladium production went down by 42 percent to 12 100 ounces.

By end of the quarter under review, Unki Mine was, however, now operating at normal production levels of 100 percent.

Due to production challenges experienced in Zimbabwe and South Africa caused by Covid-19 induced lockdowns, Anglo’s overall quarter production went down significantly.

According to the group total PGM production  at 665 100 ounces was 41 percent below prior period Q2 2019. Platinum production eased 41 percent to 307 500 ounces and palladium production went down 34 percent to 228 500 ounces.

“The impact of the shutdowns implemented by the Governments of the Republic of South Africa (RSA) and Zimbabwe in response to curbing the outbreak of Covid-19 led to a loss of 521 600 PGM ounces in the quarter.

“In collaboration with Government, labour unions and employees, stringent measures were put in place to protect employees, including social distancing, hygiene measures, screening and testing, and provision of PPE — resulting in no operation needing to close due to spread of Covid-19 among employees,” said Anglo.

Total PGM production from own managed mines decreased 40 percent to 379 400 ounces  with platinum production falling by 43 percent to 166 100 ounces.

Palladium production went down 30 percent to 158 600 ounces. The decreases were largely due to the Covid-19 shutdowns which led to a loss of 286 500 PGM ounces in the quarter.

Said Anglo: “The impact of the Covid-19 shutdowns was partially mitigated due to high proportion of open-pit and mechanised operations, which could ramp-up at a faster pace than the conventional underground operations. Open-pit and mechanised operations were able to get to 98 percent levels of production by the end of June 2020.”

According to the group, joint venture PGM production — mined and purchase of concentrate-decreased by 55 percent to 101  600 ounces largely due to the Covid-19 shutdowns, and the result of declaring force majeure leading to Kroondal material being processed by third parties.

Refined PGM production excluding tolling went down by 67 percent to 407 000 ounces, primarily due to the temporary closure of the Anglo Converter Plant B unit for repairs which was offline for 54 days during the quarter under review.

PGM sales volumes — excluding tolling and 4E POC sales that are now tolled- also went down  55 percent to 548 000 ounces due to lower refined production, partially supplemented by a draw down in refined inventory.

Despite the declined recorded in the quarter under review, Anglo still retain its full-year production and refined production guidance from Q1 2020 with PGM production expected to be between 3,1 million and 3,6 million ounces, including platinum production of between 1,45 million and 1,65 million ounces. Palladium production is protected to be between 1 million and 1,15 million ounces.

Refined PGM production will also be between 3,1 million and 3,6 million ounces, including refined platinum production of between 1,45 million and 1,65 million ounces and refined palladium production of 1 million and 1,15 million ounces.

“We acknowledge that significant headwinds exist in the second half of the year, including completing the rebuild of the ACP Phase A, further Eskom power-outages, as well as the potential impact the Covid-19 pandemic could have on our performance.

‘‘Our priorities remain to ensure the safety of our employees and the integrity of our assets and caution that these headwinds could impact our ability to meet full year guidance,” said Anglo.

Business Weekly

THE growing investment in coal production and value addition in Matabeleland North will enable Zimbabwe to cut imports of coal-related products while increasing scope for foreign currency earnings from exports, South Mining managing director, Mr Chenji Li, said yesterday.

The Hwange-based company is one of the entities that will be visited by President Mnangagwa today and tomorrow. The Head of State will also officially commission the company’s coke production plant.

In an interview, Mr Chenji said as an investor, they were excited by opportunities in Zimbabwe and motivated by Government’s drive to transform the economy.

“As an investor, the visit by the President is important in boosting the investor confidence in doing business in Zimbabwe in line with the mantra ‘Zimbabwe is open for business’,” he said.

“Coke is one of the most fundamental material for the industrial value chain. It is used for the making of steel and ferochrome. If you see all the countries industries, coke is one of the essential materials to use.”

Given the strategic importance of coke in the manufacturing and processing industries, Mr Chenji said Zimbabwe stands to benefit immensely from the growing investments in Hwange. “For the country, when you make coke, you maximise the beneficiation of the material, which you don’t only mine from the ground and sell but you add value. Coke can be exported and generate more forex for the country. You also cut on imports,” he said.

“We also supply coke to the local industries for the production of ferochrome and other products. I can say coke is playing a great role for the industry of Zimbabwe, therefore creating employment.”

Mr Chenji said his company started the coke project a year ago and was grateful for the full support they received from Government and local community. “We want to show the achievements we have made and our decision to continously develop the business and grow together with the locals people. That is what we want to show to the President,” he said.

The Chronicle

THE Western Coal and Energy Company plans to build 2x300MW power plants in Hwange at a cost of US$1.2 billion and increase its existing mining investment in the district to over US$100 million, creating more than 1 000 jobs when fully operational.

The company has poured about US$20 million into the young project in the past few years and is already supplying coal to the market. The Western Coal and Energy Project is one of the key investments in Matabeleland North province set to significantly contribute towards the US$12 billion roadmap for the mining sector, which feeds into the broader Vision 2030 as set out by President Mnangagwa.

The Western Area property has been explored and investigated over the past years with various drilling campaigns proving resource viability.

The mine is already supplying Hwange Power Station with thermal coal and is working on supplying the rest of the market in August when their latest technology processing plant, which is currently in Beitbridge, arrives.

Briefing President Emmerson Mnangagwa and his delegation during a tour of the business here yesterday, company representative and prominent local businessman, Mr Billy Rautenbach, said their first step was to establish how much coal was in the concession and making sure it was sustainable to start mining.

“What I can confirm is that the coal is there and the mining is possible and the coal grades are very good. In this regard, over US$20 million has already been invested into the Western Coal and Energy project with a total investment expected to be in excess of US$100 million over the next two years,” he said.

“We are continuing on our drilling campaign because we need to prove that there is a minimum of 25 years of coal reserves here and the way we are going, I am sure we are very close to proving 25 years of operation here”.

Mr Rautenbach reiterated that the mining sector was Zimbabwe’s biggest foreign currency earner and stressed that investments in the industry were paramount to improving the economy. He said his company was committed to environmental friendly and sustainable mining practices to provide quality products for local and international markets.

Under the initial phase of the project, Mr Rautenbach said they expected to create 200 jobs, which will increase to 1 000 at its completion.

He said there were two phases in the coal mining aspect of the mine with the first being mining and production of high grade coal.

Mr Rautenbach said the mine design and processing plant allow for a total of 150 000 tonnes of monthly coal production in phase one with a potential to increase capacity to 300 000 tonnes per month in phase two depending on demand.

With units 7 and 8 under Hwange Power Station expansion coming on board next year, he said the new coke batteries raise the possibility to achieving 300 000 tonnes per month and that the model can be duplicated if the market is there.

“We have enough coal and we have the technology to produce the new power plant that is units 7 and 8, which is due to start in the middle of 2021. So please be rest assured there will be no shortage of coal,” he said.

Mr Rautenbach said in addition to the high grade thermal coal, the Western Coal deposits host industrial coal for use in local industry.

“In future, we will be opening underground mine production so that we will be focusing purely on coke and coal. Coke and coal is in high demand world wide because of the environmental issues in the US and even now in China.

“A lot of them want coke and coal from Africa and we have millions of tonnes of coke and coal in Zimbabwe not only here but the whole of Zimbabwe,” he said.

“Our biggest target with our company is power generation. On that front Western Coal and Energy is going to build two additional 300MW power stations. This aspect of the project will involve about US$1,2 billion investment.

“We have had several meetings and we have been to China three or four times now and met with Chinese partners and there are only two things left for us, to prove up the resource that we have enough for 25 years to pay off the power station. We are nearly there and the second one is to finalise the pricing when we generate the power, which we are in the process with ZERA and ZETDC.”

With the plans that the company has, Mr Rautenbach said there was no need for Zimbabwe to import coal again. A few years ago the country had in some instances been forced to import coal yet the resource is abundant at home .

“We have the resources, we have the local skills and the financial ability to produce adequate coal to meet the current need of the country as well as for any future requirements resulting from the projected growth of our economy,” he said.

The Chronicle

HWANGE Colliery Company Limited (HCCL) is on the rebound as evidenced by steady improvement in monthly output after Government rescued the firm from collapse by putting it under temporary administration, Acting Managing Director, Dr Charles Zinyemba, said yesterday.

He told President Emmerson Mnangagwa during a tour of the company’s Chaba Mine that HCCL was in a state of collapse at the start of administration in October 2018, as creditors were swooping on it through a string of litigations. Workers had also gone for several months without pay.

“Production had virtually collapsed and we are grateful to His Excellency and his Government for rescuing this company by putting it under administration,” he said.

“Total Hwange production at the moment stands at 170 000 tonnes per month.”

With the interventions being implemented under the guidance of Government, Dr Zinyemba said production was going to rise to 225 000 tonnes per month by year end with plans to ramp it up even further.

“This year Hwange projects to mine 1,8 million tonnes of which 945 000 tonnes will be coming from Chaba Mine and the balance will come from the other two mines,” he explained.

HCCL has three mines, one underground mine and two open cast mines. These are underground Three Main Mine and two open cast mines, JKL and Chaba. Dr Zinyemba said Chaba, for instance, was producing 100 000 tonnes per month half of which goes to Hwange Power Station while 30 000 tonnes of that goes to industries and small thermal stations with the remaining 20 000 tonnes being coking coal for the coke batteries.

“The Chaba pit is designed to produce 200 000 tonnes per month. Our new contractor is currently contracted to mine 100 000 tonnes monthly, this can be ramped up over a period of about three months to the design capacity of 200 000 tonnes,” he said.

“Our second open cast mine the JKL pit, which at the time of administration was not producing anything, is now producing 45 000 tonnes per month half of which goes to Hwange Power Station and the other half being coking coal also for the coking batteries.

“We are putting in place interventions to increase that output to 90 000 tonnes per month by year end.”

Dr Zinyemba said under ground mining, which had also stopped at the time administration was put in place was now producing an average of 25 000 tonnes per month of coking coal for the coke batteries and interventions were underway to increase that to 35 000 tonnes per month by year end.

He said Chaba reserves alone were projected to last eight years while JKL reserves will last about five years.

“The three mine reserves will last 40 years at current mining rate, which will be reduced to 20 years should our plans to increase the underground mining sections to three succeed,” said Dr Zinyemba.

“We plan to resuscitate our coke oven battery. Thank you for the support you have been giving to HCCL.”

In his remarks President Mnangagwa said he was delighted that HCCL was coming on board again with evidence on output growth. He paid tribute to Dr Zinyemba and his team for transforming the fortunes of the strategic entity.

“It was a disgrace for this country for Zimbabwe or Hwange to import coal from neighbouring countries when we have abundant coal in this country. There are several other sites unexploited but because of lack of planning or mere sabotage.

“You find that Hwange Colliery Company had reached a stage where it was not able to support itself in the midst of plenty. I’m proud that the programme we have instituted has been implemented,” said the President.

He also commended the Ministry of Mines and Mining Development for guiding operations in the coal sector with indications showing positive prospects.

“I have no doubt that we will achieve a US$12 billion mining sector by 2023. We are at about US$2 billion but in three years from now we should be at US$12 billion, just one sector,” said the President.

“This should have been done a long time back but we were not focusing at the resources at our disposal.”

He challenged the colliery management to ensure restoration of jobs and transformation of the community as benefits of exploiting their natural resource.

“These are resources at their disposal in their areas, they must see benefit from the exploitation of the resources in their area.

“Let me assure you support from my administration is 100 percent as long as I see that you are patriotic and committed to developing our country,” said President Mnangagwa.

The Chronicle

A group of the world’s top oil companies, including Saudi Aramco, China’s CNPC and Exxon Mobil, have for the first time set goals to cut their greenhouse gas emissions as a proportion of output, as pressure on the sector’s climate stance grows.

But the target, set by the 12 members of the Oil and Gas Climate Initiative (OGCI), means absolute emissions can rise as production increases.

It is eclipsed by more ambitious plans set individually by the consortium’s European members, including Royal Dutch Shell, BP and Total.

“It is a significant milestone, it is not the end of the work, it is a near term target . . . and we’ll keep calibrating as we go forward,” said OGCI chairman and former BP chief executive Bob Dudley.

The OGCI members agreed to reduce the average carbon intensity of their aggregated upstream oil and gas operations to between 20kg and 21kg of CO2 equivalent per barrel of oil equivalent (CO2e/boe) by 2025, from a collective baseline of 23kg CO2e/boe in 2017, the OGCI said in a statement.

The OGCI includes BP, Chevron, CNPC, Eni, Equinor, Exxon, Occidental Petroleum, Petrobras, Repsol, Saudi Aramco, Shell and Total, which together account for over 30 percent of the world’s oil and gas production. — Reuters.

GOLD mining concern, Freda Rebecca, has started a process of updating its electronic tribute claims and has invited tributors to submit their records in compliance with the cadestre system.

The mining operation has tributed some of its land to individuals, syndicates, trusts and companies for the undertaking of gold mining activities.

In a public notice, Freda Rebecca said the tributors should ensure that their claim records were submitted by the 5th of next month.

“The mine is in the process of updating the electronic tribute claims records.

“All individuals, syndicates, trust and companies, which have tribute agreements with the mine are being called upon to submit copies of their tribute agreements with the mine and any receipts relevant to the agreement by the 5th of August 2020,” said the gold mining firm.

The tributors are required to send their scanned copies of the tribute agreements and any other relevant receipts to the company.

The updating of the electronic register system is part of Freda Rebecca’s compliance to the cadestre system.

A cadestre system is a computer-based and up to date land information system containing a record of interest in land such as owner’s rights, restrictions and responsibilities.

Towards the end of last year, the Government set itself an “early 2021” deadline by which it should have migrated from the current manual to the more efficient and computer-based cadastre system in the administration of mining titles.

It is believed that mining title administration is key towards the achieving of a successful mining industry particularly the US$12 billion annual export industry by 2023.

Business Weekly