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Council, Mines Ministry clash over land

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Council, Mines Ministry clash over land

Chaminuka Rural District Council (RDC) in Shamva has accused the Mines Ministry of dubiously allocating mining claims on land earmarked for commercial projects.

Council chairperson Nevson Zhizhinji revealed this at a stakeholders’ meeting.

“We are having problems with one miner, one Mazembe who was given a prospecting licence and allocated a mining claim on land that was gazetted as commercial stands about four years ago. Businesspeople had already begun constructing their business premises,” Zhizhinji said.

The dispute arose after Mazembe, who was recently issued a mining licence at Bent Farm, threatened to demolish shops, a clinic and church building under construction and refused audience with the council, saying he had higher connections.

Zhizhinji added that the stands were pegged a long time ago, in accordance with Lands ministry statutes.

“These stands were pegged years back with other commencing construction. Mazembe began fencing off the area and operating at night after he was issued mining papers, but after complaints were raised we were ordered to stop, of which as council we obliged,” he said.

“To our surprise, he didn’t receive any letter to stop operations; he continued to pump money on disputed land.

That is when all this chaos started.”

Mashonaland Central provincial mines director Tariro Ndlovu said his office was aware of the conflict.

“We had a meeting yesterday where you gave us your grievances, now we are going to compare what is on the ground and on paper and decide on what needs to be corrected,” he said.

Bent Farm was gazetted as a business centre in 1995, however, the policy shift on land use is causing confusion in the community and local authority.

Newsday

Use it or lose it, SA investors to lose big

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Use it or lose it, SA investors to lose big

Major South African investors stand to lose big in Zimbabwe this August when they forfeit unused mining claims through the government’s “use it or lose it” policy.

Because of the country’s lax licensing laws, several mining firms hold cheaply-acquired claims with no pressure to develop them into operational mines.

Mines Minister Winston Chitando told SowetanLIVE’s sister publication TimesLIVE that some firms were holding on to mining claims that could take about 500 years to mine.

As such, parcelling them out to other players would result in increased mining activity – and in turn, stir economic growth. This means the mining sector could increase its export invoices and improve from its 16% contribution to the national GPD.

“Gold, coal and platinum are the particular areas of interest. We will cut concessions in the hands of mining firms and give others who are willing to work as soon as August this year,” he said.

South African and Chinese firms are the biggest investors in Zimbabwe’s mining sector.

While the Chinese are mostly concentrated on coal and diamonds, leading South African firms Sibanye-Stillwater and Impala Platinum own Mimosa Platinum in a 50/50 partnership.

The second-biggest platinum concern, Zimplats, is owned by South Africa’s Impala Platinum. Other numerous South African entities are involved in gold mining, while Metallon Gold, owned by Mzi Khumalo, is winding up operations.

Finance minister Mthuli Ncube told TimesLIVE that while the government would be reducing the size of concessions, it will make the mining sector attractive to more foreign investors. This, he said, had already shown positive signs in the diamond sector.

“We lowered taxable income in the diamond sector and that is set to spread through to all minerals,” he said.

Royalties on diamonds were reduced from 15% to 10% as of January 1 2020.

President Emmerson Mnangagwa set out on an ambitious economic turnaround project to make Zimbabwe a middle-income nation by 2030. However, corruption, policy inconsistency and an unstable political climate stand in his way.

Chronicle

Hwange US$10m power plant construction under way

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Hwange US$10m power plant construction under way

CONSTRUCTION of a US$10 million 300MW power plant by Zimbabwe ZhongXin Electric Energy (ZZEE) in Hwange, Matabeleland North Province is underway with the first phase of the project expected to produce 50MW by October this year.

ZZEE is a subsidiary of the Zimbabwe ZhongXin Coking Company (ZZCC), a joint venture project between Qualisave Mineral Resources of Zimbabwe and Yuxia ZhongXin Coking Company of China.

Briefing Mines and Mining Development Minister Winston Chitando and his Finance and Economic Development counterpart Professor Mthuli Ncube during a tour of coal and coking coal companies in Hwange on Friday, ZZEE assistant plant manager, Andreas Hlabangana, said despite investing in coking coal production, they were also building a 300MW power plant whose construction began last year.

“ZZCC has embarked on building a coal-driven power station on the outskirts of Hwange along the Hwange Victoria Falls road, which when completed will contribute 300MW into the national grid,” he said.

Later an interview with Business Chronicle, Hlabangana said: “Construction of Zimbabwe ZhongXin Electric Energy (ZZEE) began in February 2019 with a capital injection of US$9,99 million and the whole construction should take three years but we are striving to complete in two and half years”.

The project is being done in phases of 50MW with the first phase to be completed in October 2020, he added.

In terms of construction work progress, he said boilers for the thermal power plant have been built and are 60 per cent complete while turbines are 10 per cent complete.

“Due to the Covid-19 pandemic, activity on the thermal power project has been affected by the Covid-19 pandemic. While the electrical connection boxes that are supposed to be installed at the power plant are already in the country, the engineers who are supposed to do the installation works are still locked down in China because of the Covid-19 pandemic,” said Hlabangana.

He said on completion the power plant will consume 300 000 tonnes of coal annually and ZZCC has applied to Government for a Coal Special Grant Grant (CSG) in order to enjoy economies of scale once the firm starts producing coal to support its operations.

During his briefing to Ministers Chitando and Prof Ncube at ZZCC before a tour of the power plant, Hlabangana said they were presently receiving inadequate coal supplies from Makomo Resources and Hwange Colliery Company Limited and hence ZZCC has applied for a CSG from the Ministry of Mines and Mining Development.

“The company has two plants requiring 15 000 tonnes of coking coal per month sourced from Makomo Resources and Hwange Colliery Company Limited, but due to their challenges, they have both failed to meet the demand.

“The supply of raw materials is our major challenge hence a CSG claim application, which is still with the Ministry of Mines and Mining Development. Once approved this challenge will be a thing of the past,” said Hlabangana.

It is hoped that once granted the CSG, ZZCC will cut dependency from other players for coal supplies for its coking coal and thermal power station projects.

Hlabangana appealed to Government to increase the retention on export proceeds for coking coal, which was presently pegged at 50 per cent in US dollar and 50 per cent in local currency.

“The suppliers of all raw material and consumables are now requesting that we pay in US dollar so that that they are able to import machinery, equipment and spares for their mines to keep running.

“Considering the exchange rate of the RTGS offered by the Reserve Bank of Zimbabwe versus raw material and consumables that we buy locally, our profit margins are shrinking.

“We propose that our export US dollar retention be reviewed to 80 per cent and 20 per cent RTGS,” he said.

The tour of the coal and coking coal producing firms in Hwange was a fact-finding mission on the challenges bedevilling players in the sector.

The visit is also a precursor to President Mnangagwa’s tour tentatively planned within the next four weeks.

Responding to the issues raised by the business, Minister Chitando said Government will in the next four months through the “Use-it or lose-it” policy repossess underutilised mining titles, which would be reallocated to prospective investors.

In an interview with journalists after the tour, Prof Ncube said he was impressed by the coal and coking mining activities being undertaken in Hwange.

He said the tour was also an eye-opener as Government through his ministry will fine-tune the policy framework to foster productivity by players in the coal sector and the mining industry at large.

“At least l have understood what their issues are and l also appreciate the investments that are taking place in this area.

“For instance, the investors in the production of coke are big employers and their activities will go a long way in contributing to the US$12 billion mining economy by 2023.

“So, my office being in charge of the taxes as you can imagine, l am always trying to see where we can fine-tune the tax incentives for investment,” he said.

Chronicle

Government thanks Mugano for his contribution to ZISCO

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Government thanks Mugano for his contribution to ZISCO

[pdf id=7376]

Mugano resigns from ZISCO board

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Mugano resigns from ZISCO board

Professor Gift Mugano has resigned from the ZISCO Board. In a letter addressed to the Minister of Industry and Commerce Mrs Sekesai Nzenza the renowned Professor cited the response on public comments he made on government policies were viewed to be a direct conflict to his role as a board member of a State Enterprise.

Below is the letter he penned to Minister Nzenza

As a follow up to our conversations over my comments on public media on Government policies which are viewed by some sections of Government as in direct conflict with my role as a board member of a State Enterprise, I took a reflection of the concerns and decided to resign from the ZISCO board.

The decision to resign is built on a firm view that I believe that my contribution on the policy discourse is of primary importance which cannot be forfeited in favour of maintaining a micro role as the interim Chairman and Board member of ZISCO.

For the avoidance of doubt, notwithstanding the arguments that my comments are negative and retrogressive,
evidence shows that in a number of times policymakers regularly took up my submissions.

In any way, the Second Republic, in line with the provision of the Constitution of Zimbabwe on freedom of
expression, which is outlined in the Transitional Stabilisation Programme paragraph 1766, has opened the
space for citizens which include commentators such as economists to freely express themselves.

It is on the basis of the foregoing that I took a firm view that it is in the best interest of the country that I
continue to provide uninterrupted and constructive views on various policies without any constraint for the
the interest of our beloved country.

It is my sincere hope too that Government will remain open to divergent views on various policies and pieces
of legislations.

Please accept the assurance of the highest consideration.
Professor Gift Mugano (Ph.D)

Zimbabwe Stock Exchange suspends trading

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Zimbabwe Stock Exchange suspends trading

The Zimbabwe Stock Exchange (ZSE) has suspended operations.

In a letter address to Stakeholders on the 28th of June 2020, the ZSE said following the statement issued by the Secretary for Information, Publicity and Broadcasting Services Mr Nick Mangwana on 26 June 2020, the Zimbabwe Stock Exchange Limited engaged both the Securities and Exchange Commission of Zimbabwe and the Ministry of Finance and Economic Development.

Listed below is the ZSE Statement in Full

Following the statement issued by the Secretary for Information, Publicity and Broadcasting Services on 26 June 2020, the Zimbabwe Stock Exchange Limited (“ZSE”) engaged both the Securities and Exchange Commission of Zimbabwe (“SECZ”) and the Ministry of Finance and Economic Development.

Whilst we await the guidance from our regulators on the operational modalities going forward, we notify our stakeholders that trading has been suspended until further notice.

For any enquiries, you can email [email protected].

Zimbabwe last week suspended the use of Monetary Transactions on Mobile Based Money Platforms (One Money, MyCash, Ecocash and Telecash) dated 26 June 2020. Although the suspension of transactions was mentioned by the Information Ministry in its press release RBZ did not mention the stock exchange suspension.

The Government said the unprecedented measures were necessitated by the need to protect consumers on mobile money platforms which have been abused by unscrupulous and unpatriotic individuals and entities to create instability and inefficiencies in the economy.

SEE FULL DOCUMENT HERE

 

Finance and Mines Ministers tour colliery companies

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Finance and Mines Ministers tour colliery companies

MINES and Mining Development Minister Winston Chitando and his counterpart Finance and Economic Development Minister Professor Mthuli Ncube were in Hwange last week where they were touring some of the colliery companies on a fact-finding mission on the challenges facing the sector.

The companies being visited were Zambezi Gas, Zimbabwe ZhongXin Colliery Company, Jinan Coking Coal Project, South Mining Coking Coal Project and Afrochine Coking Plant. Coal is one of the major minerals being exploited in the Matabeleland North.

Government has identified the black gold as one of the major minerals to contribute to the attainment of the targeted US billion mining industry economy by 2023.

Over the years, the Government has awarded Special Grants for coal exploration and mining to a number of companies. Chronicle

Caledonia declares another increased quarterly dividend

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Caledonia declares another increased quarterly dividend

Caledonia Mining Corporation Plc today announces that the Board of Directors has declared a further increased quarterly dividend of eight and a half United States cents (US$0.085) on each of the Company’s common shares.

Highlights

·    13 per cent increase from the previous quarterly dividend of 7.5 cents, which, together with the increase to the dividend in January 2020 from 6.875 cents, represents a cumulative 24% increase since October 2019.

·    Significant business resilience demonstrated through the COVID 19 pandemic with gold production levels still within the range of 2020 guidance of 53,000 – 56,000 ounces

·    Stable production, a high gold price and good cost control have resulted in increased cash generation in 2020; this has given the board confidence that the business can sustain a higher level of dividend distributions

  • Central Shaft on track to be completed in Q4 2020.
  • Target production of 80,000 ounces of gold per annum from 2022.

 Commenting on the announcement, Steve Curtis, Chief Executive Officer, said: 

“We are pleased to announce a 13 per cent increase in the dividend which reflects our continuing confidence in the outlook for our business.  As we reported in our Q1 2020 results, our financial performance has been strong due to increased production and a higher gold price which has continued into Q2 2020.

“As we approach the end of the five-year investment programme at Blanket Mine, we anticipate the rate of capital expenditure will begin to reduce towards the end of 2020, which gives us greater flexibility to consider deploying some of our cash reserves on an increased dividend. 

“We expect the Central Shaft equipping to be completed in the fourth quarter of 2020; thereafter we look forward to the commissioning of the shaft and further increases in operating cash flow as production is expected to increase by over 30 per cent over the coming 24 months to approximately 75,000 ounces in 2021 and to the target rate of 80,000 ounces of gold per annum from 2022, as capital expenditure falls further and we begin to realise the operational efficiencies arising from the new shaft. 

“The Board will review Caledonia’s future dividend distributions as appropriate while considering the balance between delivering returns to shareholders, pursuing the significant growth opportunities within Zimbabwe and maintaining a prudent approach to financial management.”

The relevant dates relating to the dividend are as follows: 

  • Ex-dividend date: July 16, 2020
  • Record date: July 17, 2020
  • Dividend cheque mailing date: July 31, 2020

Shareholders with a registered address in the UK will be paid in Sterling.

Chrome exports to China to resume

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Chrome exports to China to resume

Zimbabwean chrome miners will resume exports to China following revelations that China has started opening up its chrome market which was halted due to the Covid-19 pandemic and depressed prices.

Zimbabwe Miners Federation secretary for external affairs Gift Karanda told Business Times that local chrome companies will be resuming exports after engaging National Railways of Zimbabwe on ensuring the uninterrupted movement of cargo. He said “We are now resuming exports to China this coming week. China is now opening up the chrome market for our chrome and the prices have started going up slightly.”

The local chrome mining sector has been in a crisis following a crash in chromes prices in China as well as the coming of Covid-19 which has seen the majority of chrome miners and exporters mainly of Chinese origin halting operations and withholding their product. Since the beginning of November, the Chinese market experienced a sharp decline in chrome prices of about 4000 Yuan, a situation which has seen most miners in Zimbabwe holding on their product as exporting at the current price remains less viable. By the time the markets stopped coupled by Covid-19, chrome ore was selling in China at around USD 70 per tonne depending on the grades while ferrochrome is selling at USD 0.80 per pound.

China is the world’s top consumer of chromium, as well as the top stainless steel producer while Zimbabwe is the second largest ferrochrome and chromite ore producer supplying 60% of its product to the Asian giant for manufacturing of stainless steel.

Source: Business times

ZELA conducts research on formalisation of Artisanal miners

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ZELA conducts research on formalisation of Artisanal miners

A local Non-Governmental Law Association, Zimbabwe Environmental Law Association is seeking to carry out a research on the formalisation of the artisanal and small-scale mining (ASM) sector.

The organisation’s motivation to carry out this research emanates from the fact that the artisanal and small- scale mining (ASM) formalization is long overdue in Zimbabwe.

“Few alternatives to agriculture are available for rural populations in Zimbabwe and harvesting the much-needed steady mineral-driven economic growth in the mining sector, formalization is of the essence. The Africa Mining Vision underpins a ‘transparent, equitable and optimal exploitation of mineral resources to underpin broad-based sustainable growth and socio-economic development’  to address the lack of maximized value from the extractive sector,” it said in its statement

“Mining sector plays a pivotal role in the economic development of Zimbabwe, contributing more than 60% of export receipts, more than 13% to GDP direct investment into the country. In 2019 the artisanal and small-scale miners contributed 17,478 tonnes (compared to 10,181 for primary producers), which is about 60% of the total gold deliverables of 27.66 tonnes recorded with the Fidelity Printers and Refineries (FPR).”

The association said despite its immense contribution to the economy, the ASM sector is associated with numerous challenges such as environmental degradation, lack of technical skills, funding, smuggling, lack of adequate equipment and machinery and lack of business acumen among others.

“Policy, legal and regulatory framework in Zimbabwe are necessary to limit revenue leakages and mitigate the negative environmental and socio-economic impacts associated with the ASM sector. The key issues to be addressed include the registration of the ASM sector for compliance with laid down regulations, responsible entrepreneurship through access to geological data, sustainable livelihoods for those involved in the ASM sector. Some vital actions include public consultations to ensure that the concerns of necessary stakeholders are taken into consideration whilst making clear the advantages disadvantages of ASM formalization,” it said.

It said its major objectives are to produce a paper assessing the need for formalization of the ASM sector and make policy and legal recommendations to ensure a congenial environment between ASM, large scale miners and the regulatory authorities.

And its specific Terms of Reference are to investigate the background of ASM operations across the mining value chain; highlight the challenges currently associated with the lack of formalization of the ASM sector and benefits associated with formalisation and formulate recommendations of national policy and legal framework on ASM formalization.

On Key Deliverables it said it will produce an analytical paper that will explore current ASM operations in the absence of formalization; and policy and legal recommendations for the formalization of the ASM sector to harness maximum benefit from mining activities in Zimbabwe.

The qualifications would be the consultant must have a law degree and/ or any other relevant degree and have at least 8 years’ experience in national work in the following fields; mineral resource governance, artisanal and small scale- mining and any other related field.

“The Consultant is expected to have the ability to coordinate and moderate the relevant deliberations on the proposed legislation. Interested and qualified Consultants who meet the above requirements should send their application clearly stating how they meet the requirements, a methodology to be used and cost of the consultancy to- [email protected]. The title of the consultancy should be clearly stated in the email subject,” it said. BYO24

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