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Soldiers, Police arrested for robbing miners

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Soldiers, Police arrested for robbing miners

Two soldiers and a husband to a police officer were arrested for extortion and corruption.

Valentine Mutswiti (26), Cuthbert Mutori (22) and Kudakwashe Chivanga (33) were arrested at Spilanzima Shopping Centre in Doughladale, Bulawayo with the fourth accused Nokuthula Sibanda (32) still at large.

It is alleged that last weekend the four accused two dressed in full army uniform each armed with an AK assault rifle and two dressed in Police uniform scaled over Shadreck Mbambo’s dura wall into his yard and forced entry into his house through the main door.

Whilst inside the house they introduced themselves as members of the Security forces on operation code name “No to illegal Mining.” The accused persons then accused the miner of possessing gold and threatened to arrest him. Due to fear, the complainant gave in and gave the accused persons USD100. The accused persons then left the scene driving a Toyota Noah registration number unknown.

It is alleged again that, on the same night the same accused persons approached Sifelani Nyoni a registered miner operating Xmas Mine in Hopefountain area at his house. The accused persons did the same and were given 40USD.

It was discovered that Mutswiti and Mutori are currently stationed at ZRP Tshabalala Bulawayo on Joint Covid-19operations with the Police. Chivanga is a civilian and a husband to the accused Sibanda who is an officer stationed at ZRP Nkulumane, Bulawayo (Victim Friendly Unit).

Sibanda currently on the run.

Zimbabwe Mining in 2020

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Zimbabwe Mining in 2020

The year 2020 was a difficult year for both large producers and small scale miners due to falling commodity prices as well as the impact of the COVID-19 pandemic which ravaged the entire globe.

Mostly affected in terms of both output and price compressions were base minerals such as chrome ore and ferrochrome, according to Finance minister Mthuli Ncube.

As a result, the sector ameliorated contraction to -4.7% in 2020.

This article seeks to discuss the bad and the good experienced by the mining sector during the course of this year.

THE BAD

Failure to pay gold producers timeously

Fidelity Printers and Refiners (FPR) underpays and sometimes pays late for gold. The body pays producers partially in forex and partially in amounts of Zimbabwe dollars determined by the official exchange rate.

Delays in payment for gold deliveries is one of the major contributory factors to the smuggling of Zimbabwe’s yellow metal to countries such as the United Arab Emirates and neighbouring South Africa.

Payment delays saw one of the biggest mines, RioZim shutting down its operations citing “insignificant” part payment of its gold deliveries to (FPR).

FPR has attributed the delays to settle payments for gold deliveries to the shortage of foreign currency following the outbreak of the Covid-19 pandemic, which has seen restrictions on international flights that transport the hard currency into the country.

For the industry to grow, FPR needs to reduce the turnaround time for payment of gold delivered by both large and small-scale producers. Currently, the turnaround time for payment is not sustainable. It forces producers to sell their gold in the black market.

Subdued capacity utilization

Total capacity utilization in the mining industry remained subdued at around 61% owing to challenges in raising capital and investment, according to Chamber of Mines. The main hindrance to capital flowing into the sector is a negative perception about the country and the political risk factor.

In addition, the Reserve Bank of Zimbabwe (RBZ) has faced obstacles in paying gold producers timeously, thus gravely affecting working capital for the miners.

Mine fatalities

Year-in, year-out, lives are lost in Zimbabwe’s mining sector, with corruption and inadequate monitoring of mining activities by the government cited as major causes.

The year 2020 was no exception.

On November 10, 2020, six miners got trapped underground at Patridge Mine in Esigodini and even today, their bodies have not been retrieved as the government has abandoned rescue efforts, saying the mission is too risky.

Again, rescuers are still trying to reach out to least 30 miners in Bindura who are trapped underground after a shaft collapsed. Other accidents which happened this year include five artisanal miners who got trapped underground at Task Mine in Chegutu as well as two miners who died after a shaft collapsed at the Globe and Phoenix Mine in Kwekwe District, 200 km southwest of the capital Harare.

In May this year another worker at Vumbachikwe Mine died after he allegedly fell during a blasting exercise when he was alone underground.

To end these disasters, mining activities across the country should be monitored. There should be training of people who can lead and monitor operations, especially on areas of drilling and blasting.

Corruption

Corruption continues to rear its ugly head in Zimbabwe’s mining sector. This year, the Zimbabwe Morning Post unearthed serious corruption cases involving officials in the Ministry of Mines and Mining Development who are allegedly causing man-made disputes in mining towns occurring around the country due to deliberate double allocation of registration certificates.

An investigation carried by the online publication shows that Provincial Mining Directors (PMDs), though armed with full knowledge on the ownership of mine claims in the country, deliberately re-allocate mine claim certificates to their loyal syndicates who either give them cash upfront or a percentage of the loot.

The publication also reported that small scale miners in Midlands Province were accusing the Midlands PMD Nelson Munyanduri and the national office of operating a well-orchestrated conspiracy of deceit, fraud, misrepresentations, chicanery and double-dealing after he double allocated a mining certificate on a disputed land.

Mineral leakages

Gold leakages remain on the increase in the country and require tightening of surveillance and penalties for illegal externalisation and other dealings, according to Finance minister Mthuli Ncube in his 2021 national budget.

Ncube said the Gold Mobilisation and Surveillance Committee, as well as the Minerals and Border Control Unit will be strengthened and capacitated to be able to execute their mandate,” he said, without giving figures.

According to government estimates, the country is losing about US$100 million monthly through smuggling.

Recently, the police arrested suspended Miners Federation of Zimbabwe president Henrietta Rushwaya on allegations of attempting to smuggle 6kg of gold to Dubai worth about US$300 000.

Policy inconsistencies

Chamber of Mines survey findings show that mining executives are worried about policy inconsistencies which characterized the operating environment for 2020 to persist in 2021, impacting negatively on business planning. They cited misallignment in foreign exchange and fiscal framework, liquidation of unutilised nostro balances, and multiple taxes to weigh down mining operations in 2021.

THE GOOD

$1 billion credit facility

On May 1, 2020 President Emmerson Mnangagwa announced an $18 billion economic stimulus package to scale up production in all sectors affected by the COVID-19 pandemic.

Out of the $18 billion, a total of $1 billion was meant to support a credit facility to incentivise investment in large scale and small scale mining and speed up implementation of a computerised cadastre system.

Though the intention to incentivise investment in large scale and small scale mining was good, the reports that a number of small scale miners failed to access the facility due to red tape among other challenges, are very unfortunate.

Mineral exports up

In his budget, Ncube revealed that in terms of export earnings, mineral exports were around US$2.4 billion for the period January to September 2020, compared to US$2.1 billion recorded over the same period last year.

Keeping mines operational during lockdown

Ncube said due to the nature of mining operations, most mining houses did not completely shut down during the lockdown period like other sectors. However, small scale miners operations were disrupted as the police kept on harassing them, demanding exemption letters.

2021 OUTLOOK

In 2021, the government expects the mining industry to rebound by 11% driven by planned expansion programmes aimed at increasing production by miners as we move towards the attainment of the US$12 billion industry. This, it said, will be achieved through increased exploration, expansion of existing mining projects, resuscitation of closed mines, opening of new mines and mineral beneficiation and value addition.

Further, expected improvement in availability of power supply and foreign currency are expected to propel production and capacity utilisation from current 61% to about 80% in 2021.

According to Chamber of Mines latest survey report, about 90% of mines are planning to ramp up production in 2021 while 10% expect to remain the same. Of the respondents that are expecting to increase production, approximately 40% are expecting to ramp up production by more than 30%. About 10% expect to increase output by between 10% and 30%.

Mining executives are expecting improvement in the global commodity market in 2021, with 90% of respondents indicating that they are optimistic of a favorable commodity market in 2021 on the back of anticipated improvement in the covid-19 situation. About 10% are skeptical about market conditions in 2021 and expect the covid-19 situation and depressed demand specifically for base metals to persist in 2021.

This article first appeared in the December 2020 issue of Mining Zimbabwe Magazine

Caledonia Mining Corp secures Connemara

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Caledonia Mining Corp secures Connemara

CALEDONIA Mining Corporation Plc has secured exclusive rights to explore and acquire the mining claims in the gold-rich Connemara North area in Gweru as part of efforts to expand its operations.

This comes after the company announced a similar arrangement at Glen Hume in the same district where airborne geophysics indicates attractive exploration targets.

In October, the company signed a memorandum of understanding with the government to boost investment, including the possible takeover of StaWWWWWte mining assets. Previously, the company indicated it was eying a number of brownfield gold mines in the country, but faced challenges in concluding deals.

In terms of the multimillion-dollar Connemara North agreement, Caledonia has the right to explore the area for a period of up to 18 months and if exploration is successful and at its sole discretion acquire the mining claims in the area.

The total consideration is an initial payment of US$300 000, followed by a further payment of US$5 million in cash or shares at the discretion of the vendor which would be payable should Caledonia decides to exercise its right to acquire the mining claims, Caledonia said.

“Caledonia has also agreed to the payment of a one percent net smelter royalty to the vendor on the gold it produces from Connemara North,” the company said in a statement.

Connemara North is the northern section of the closed Connemara mine which was previously owned by First Quantum Minerals (“First Quantum”). It was placed on care and maintenance in 2001 and subsequently disposed of in 2003.

Caledonia said the area had not been commercially mined since that time but before being placed on care and maintenance Connemara mine produced approximately 20 000 ounces of gold per annum from an open-pit heap leach operation. Public disclosures made by First Quantum in 2001 indicated that they had plans to expand the existing open pit operations at Connemara mine when gold prices were approximately US0/oz.

“At this stage, it is not possible for Caledonia to verify any of the work performed by previous owners or to ascertain what proportion of any purported resource lie within the boundaries of the Connemara North property over which Caledonia has secured the option,” the company added.

The new property is approximately 30km from Glen Hume with good road access between them offering the potential of operating synergies should Caledonia decide to develop both areas.

Caledonia chief executive Steve Curtis said the property was part of a wider area that contained a previously operational mine which showed great potential and has been lying untapped for 20 years.

“Connemara North is also in close proximity to the Glen Hume property over which we have already acquired an option. We are excited at the prospectivity of these two properties and if evaluation work proves successful and our exploration programmes deliver favourable results, Caledonia will have a great opportunity to establish a footprint in the highly prospective Zimbabwe Midlands which could deliver operating synergies between the two sites,” Curtis said.

“This has been a busy year for Caledonia and with the completion of the central shaft in sight I am pleased that we are now able to start delivering on the other components of our corporate strategy.”

Caledonia recently announced the completion of its US$60 million central shaft project which is expected to see the company ramp up production significantly.

Caledonia said the phase of fully equipping the central shaft from its base to the surface collar was complete and it was on track to be commissioned in the first quarter of 2021.

Key features of the central shaft project, which was started in August 2015, include increased exploration by providing access for further deep-level examination which, if successful, may extend Blanket mines, life to beyond 2034. Caledonia recently said the shaft allowed the company to build another mine below the existing one.

Production is expected to be increased by  around 45% from approximately 55 000 ounces of gold in 2019 to the target rate of 80 000 ounces from 2022, while economies of scale and operational efficiencies arising from the new feature are expected to reduce the all-in sustaining cost per ounce of gold from US$8 551 in 2019 to between US$700 and US$800 per ounce.

The scope of the central shaft project was extended from an initial target depth of 1 089 metres to a final depth of 1 204 metres. NewsDay

Zimbabwe the alternative rare earth global supplier?

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Zimbabwe the alternative rare earth global supplier?

Zimbabwe could emerge as one of the world’s top suppliers of rare earth elements as tensions escalate in the ongoing US-China trade war, Mining Zimbabwe reports.

Rudairo Mapuranga

Zimbabwe sits on vast and lucrative deposits of rare earth minerals. Reports suggest that Zimbabwe’s reserves could be second only to China’s, although exploration activities are still ongoing. Rare earth elements are now widely used in automobiles, electronic equipment, and other advanced technologies.

Earlier this year, China Central Television’s military channel reportedly stated that the United States was planning to invoke a 1950s-era law to “militarise” rare earth production in an effort to counter China’s global monopoly on the supply of these critical minerals.

Former US President Donald Trump reportedly signed an executive order declaring a “state of emergency” and authorised the use of the National Defence Production Act to accelerate the development of mineral resources. This law was previously used to speed up the production of medical supplies during the COVID-19 pandemic.

Rare earth minerals play a crucial role in military technology. Reports indicate that manufacturing an F-35 fighter jet requires approximately 417 kilograms of rare earths, while a Virginia-class nuclear submarine uses about four tonnes.

It has been reported that 80 per cent of the rare earth minerals used in the US are imported from China. Although the US extracts its own rare earths in California, the materials are typically shipped to China for processing.

Rare earth elements used in batteries and electronics are among the 35 minerals the US government considers vital to national security and economic stability. Of these, 14 are not produced domestically. As the trade war between the US and China deepens, Zimbabwe may become a viable alternative source for some of these critical elements.

Zimbabwe’s position as a potential rare earth supplier gained further traction when China implemented its new Export Control Law this month. This law is expected to significantly impact the global rare earth market.

The legislation stipulates that the Chinese government will control exports of dual-use items—including military products, nuclear materials, technologies, services, rare earths, and other goods linked to national security and international obligations such as non-proliferation.

According to Netease News, the law gives China a mechanism to further limit rare earth exports. Should China decide to curb exports as part of its trade conflict with the US, Zimbabwe, speculated to have the world’s second-largest reserves, stands to benefit.

Currently, according to President Emmerson Dambudzo Mnangagwa, Zimbabwe lacks the technical capacity and resources to extract and process these minerals. However, as global demand surges for electric vehicles and defence technologies, the country is likely to attract significant foreign investment in rare earth mining and processing.

Premier African Minerals, listed on the Alternative Investment Market (AIM) of the London Stock Exchange, is reportedly prospecting for rare earth elements in Matabeleland North, near the Zambian border.

The 17 rare-earth elements are cerium (Ce), dysprosium (Dy), erbium (Er), europium (Eu), gadolinium (Gd), holmium (Ho), lanthanum (La), lutetium (Lu), neodymium (Nd), praseodymium (Pr), promethium (Pm), samarium (Sm), scandium (Sc), terbium (Tb), thulium (Tm), ytterbium (Yb), and yttrium (Y).

This article first appeared in the December 2020 issue of Mining Zimbabwe Magazine

Can raw lithium survive the test of time, beware Zimbabwe!

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Can raw lithium survive the test of time, beware Zimbabwe!

Its quite clear that Lithium has attracted world recognition as a significant mineral playing a substantial role in electric cars and other clean tech gadgets. However, Europe which the world has been eyeing as the consumer of raw lithium is changing goalposts by promoting the recycling of vital elements such as lithium.

Rudairo Dickson Mapuranga

The European Union has been tipped by the European Raw Materials Alliance (ERMA), a partnership of over 300 companies, business associations and governments, to break Europe’s dependence on imports from China and other resource-rich countries.

The EU reportedly imports around 98 percent of rare earth from China. Turkey supplies 98 percent of its borate, while Chile meets 78 percent of Europe’s lithium needs. South Africa provides 71 percent of its platinum and Brazil supplies 85 percent of the old continent’s niobium, a crucial part of steel alloys used in jet engines, girders, and oil pipelines.

Zimbabwe is the world’s fifth-largest producer of lithium, albeit with only a single producing mine and could soon regret to have invested in the sector because the popularity of lithium in clean energy and tech gadgets could soon be wiped out.

However, political analysts have interpreted ERMA’s move has a way of trying to dismantle China from controlling the whole world market through identifying African countries like Zimbabwe that can be able to supply lithium and raw earth minerals to the rest of the world.

Zimbabwe has the potential to supply over 20 percent of the world’s lithium appetite and potentially able to supply over half of Europe’s demand for the next 30 years.

Renowned research groups have predicted that the European Union will need about 60 times more lithium than it is currently consuming and 15 times more cobalt for electric vehicles (EV) batteries and energy storage by 2050. It is estimated that the demand for rare earth minerals used in high-tech devices and military applications will increase 10-fold in Europe over the same period.

The European Union will not be able to ditch out lithium and raw earth imports due to the world’s adoption towards clean energy and the fact that recycling of elements could be deemed a danger to the climate.

Bikita Minerals is the only active lithium mine in Zimbabwe with several other lithium projects at various stages of development, establishing its position among the major producers in the world.

Lithium was classified by the government as strategic in helping the country achieve US$12 BILLION mark by 2023 with the mineral fetching half a billion.

The country also boasts of MIRRORPLEX (Pvt) Limited’s lithium project in Shamva which is postured to become Zimbabwe’s biggest hard rock lithium resources has the potential to grow into a world-class lithium mine with Results from 240 Rock Chip samples taken from the exposed Bonnyvale pegmatite body at the Shamva Lithium Project provides high-grade lithium assay results up to 3.13% Li2O and surface sampling at the Loch Ness prospect has revealed two more pegmatites containing high Li2O grades up to 4.82% Li2O.

Other lithium projects are Arcadia by Prospect Resources, Zulu and Kamativi projects which would cement the country’s position on the world lithium market.

Zimbabwe should now focus on value addition through reopening closed factories thus becoming one of the largest suppliers of lithium batteries and clean energy.

Spare a thought for Zimbabwe, which reportedly has the potential to supply roughly 20 percent of global lithium compounds, yet little effort has been made towards venturing in the making of environmentally-friendly lithium-ion batteries for electric cars and various other electronic components. Beware, just in case we could be floating in what will later turn out to be a bubble that will finally burst, and that is if fears by analysts are anything to go by.

This article first appeared in the December 2020 issue of Mining Zimbabwe magazine

The Mincon MP40MQ is a next generation DTH hammer in the Mincon range of 4” hammers

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The Mincon MP40MQ is a next generation DTH hammer in the Mincon range of 4” hammers

With the world of drilling demanding higher production rates, lower overall cost per meter and greater efficiency Mincon stepped up to the challenge with the MP40MQ.

The target is to achieve higher penetration rate and longer internal component life, raising production and lowering cost per meter, this will be achieved by excellent design and manufacture of Mincon tools along with expert advice and guidance and a continued improvement program.

The following three case studies prove this Hammer truly is the “The Driller’s Choice Worldwide”

Dubai (on going trial)

August 2020 Mincon deployed the MP40MQ after the Driller was experiencing high cost per meter and low production from their current supplier.

Current supplier

DR43 Epiroc D55 an average penetration rate of 0.79 meters per minute was recorded.

Feed: 75 Bar

Rotation: 55 Bar

Air Pressure: 24 Bar

Mincon MP40MQ

DR47 Epiroc D50 an average penetration rate of 0.95 meters per minute was recorded.

Feed: 85 Bar

Rotation: 35 Bar

Air Pressure: 22 Bar

This is an increase of 20% penetration rate, the MP40MQ was then put on DR43 the air pressure increased to 30 Bar and an average penetration rate of 1.1 meters per min was achieved, giving an increase of 40%.

The customer also reported changing failed major internal parts 3-4 times in the hammers life of 20,000 metres, the MP40MQ Internals are currently at over 5,000 meters and still going strong.

Senegal – Pre-splitting holes – 20 m @12 degrees January 2020

Mincon deployed the MP40MQ after experiencing broken pistons and broken strike face on bits. Not only has this problem now been totally eradicated but the penetration rate has improved from 16 meters per hour to 18 meters per hour that is an increase in penetration of over 12%.

The customer was extremely impressed with the results and now the MP40MQ is the only 4” hammer they purchase.

UK (ongoing trial)

July 2020 Mincon deployed the MP40MQ as an alternative to the 4HRTD. We compared both hammers side by side on 2 Epiroc D55’s The rock here is a medium to hard granite that is extremely abrasive, the drilling is very challenging with up to 7 meters of broken rock at the start of the hole and a high ingress of water.

This type of drilling can be very punishing on the rock tools causing a high amount of back hammering/free hammering whilst try to get through the broken ground, normally resulting in shanked bits and broken pistons.

When using the MP40MQ for over 20,000 meters we have not experienced any breaking of internal components.

As can be seen in the table opposite the MP40MQ has achieved 12% increase in penetration rate 11.5% decrease in litres of fuel per hour 8% decrease in engine load This is one of the MP40MQ pistons used in the UK trial at 10,304 meters, when compared to a new piston there has been zero OD wear and very minimal impact damage to the strike face.

This is the reason the hammer is still performing and consuming same amount of air as when new.

Conclusion

The MP40MQ has proved to be a high performing hammer in some very demanding drilling conditions.

  • Consistent high penetration rate

  • Reliable and robust internal components

  • Lower air consumption

  • Lower fuel usage

  • Lower engine load

 

It is important to note as this is a high performing hammer, drill parameters will need to be adjusted to suit increased penetration rate also ample amounts of high quality hammer is to be used, on all of the case studies feed pressure was increase by 10-20 Bar

Future

Mincon is currently running extensive trials on coated chucks as part of our continuous improvement program this is with a scope to improve overall hammer life by up to 40% in abrasive conditions.

Combined with high performance of the MP40MQ it will be “The Drillers Choice Worldwide.”

About Best southern drilling supplies (PVT) Ltd (BSDS)

Best Southern Drilling Supplies (PVT) Ltd is a proudly Zimbabwean company that opened for business in 2013 to supply the Zimbabwean drilling sector with quality drilling equipment. Together with Yours Finesse in Botswana, affiliated company, BSDS are the official agent for some of the big brands in the industry, namely, Mincon, AMC and Boart Longyear. BSDS business strategy focuses on cost reduction management and after-sales services which has turned out mutually beneficial and is taken in high regard by our customers over the past 5 years.

BSDS offers a high standard of after-sale service. Someone from BSDS will be available to advise or assist any drilling company which is in need of assistance. We come out to drilling sites on request to give drillers advice on drilling techniques and equipment maintenance to get the most out of every piece of equipment. We offer bit sharpening and hammer services as well.

Contact BSDS on 0242 74 5388 0771567 532 0777 884 954 [email protected] or visited their website www.bsds.co.zw for more information

Covid-19’s impact on the mining sector in 2020

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Covid-19’s impact on the mining sector in 2020

Despite being exempted from operating throughout the Covid-19 pandemic period, the mining sector faced several challenges that saw the chrome industry grinding to a halt. Unki Mines, Hwange Colliery Company Limited and How mine confirmed some of their staff tested positive for Covid 19.

By Shantell Chisango

According to 2020, Survey Data, miners pointed out that their operations were significantly impacted by the pandemic which resulted in higher output costs and the expense of unplanned spending for covid19 on protective materials.

“All respondents (100%) indicated that their cost of production increased due to unplanned expenditures on preventive material including face masks, hand sanitisers and testing kits. All respondents (100%) also highlighted increased importation logistical costs due to increased insurance and transportation costs as some transit areas were closed.” Source: Survey Data 2020

Moreso, another obstacle brought by Covid19 was sluggish commodity demand and market shutdown which harmed mineral demand, survey findings indicate that the most affected were base metals and ferrochrome producers.

Covid19 resulted in a decline in mineral output due to depressed mineral prices, with the majority of miners suspending their operations except for gold miners who registered an increase in gold prices amid the covid19.

Survey findings show that 40% of respondents indicated that their performance was weighed down by depressed mineral prices, with most ferrochrome smelters suspending their operations. On the contrary, gold producers reported that gold prices surged during the covid-19 pandemic and therefore were little affected.

Furthermore, the mining industry had the challenge of importing explosives and fuses needed for drilling and blasting processes due to travel restrictions resulting in the reduction of production capacity.

Speaking to Mining Zimbabwe, a small-scale miner in Mashonaland Central complained about the explosives shortage, saying, “Mining business currently is low, we have had challenges of acquiring explosives and fuses thus it has reduced the production capacity and in some cases leading to downtime of tools and equipment.”

ZIMPLATS

However, despite the negative effect brought by Covid19 to the mining industry, some mining companies like Zimplats (leading Platinum mining company in Zimbabwe) recorded positive results.

Commenting on the performance of the company, Zimplats Chairman Fholisani Mufamadi said the company performed exceptionally well regardless of Covid19.

“I am excited to be writing to you, our valued stakeholders, as your Company posted excellent results despite the challenging environment in which the COVID-19 pandemic wreaked havoc the world over,” he said.

The Company recorded a profit of US$261.8 million for the year, an improvement of 81 per cent from US$144.9 million in the previous year due to the rise in revenue from improved metal prices and the decline in exchange losses from US$20.2 million in FY2019 to US$4.8 million (US$868.9 million in FY2020 as opposed to US$631 million in FY2019).

Furthermore, the company managed to pay the final instalment of US$42.5million on the Revolving Credit Facility with Standard Bank of South Africa.

“I am happy to report that your Company paid the final instalment of US$42.5 million on the Revolving Credit Facility with Standard Bank of South Africa. In addition, the Group generated enough cash to pay dividends amounting to US$45 million,” said Mr Mufamadi.

Zimplats is progressing with all its major projects which include the US$264 million Mupani Mine development project and completion of the US$101 million Bimha redevelopment project.

Currently, US$99.5 million has been invested in the construction of the Mupani Mine and US$98.8 million has been invested in the redevelopment of the Bimha Mine.

CALEDONIA

Zimplats is not the only company that managed to produce positive results during the Covid19 era, Caledonia Mining Corporation, a gold producer, which operates Blanket Mine in Gwanda has also succeeded in defying the impact of Covid19 by recording enormous production.

Chief Executive Officer (CEO) Steve Curtis applauded the wonderful work the company managed to produce despite the Covid19 impact on business.

Mr Curtis said “The production of 13,499 ounces in the second quarter is an outstanding achievement given the challenges faced during the quarter as a result of the COVID-19 Pandemic. To have achieved a 6.2% increase in the comparable quarter of 2019 during a period where our workforce and supply chains were disrupted is a performance of which every employee should be justifiably proud. Thankfully the virus has not affected our operations or the broader Zimbabwean gold mining sector too seriously although we remain vigilant.”

Currently, the company is working on the production guidance for 2021 which is 61 000 ounces to 67 000 ounces while guidance for 2022 is about 80 000 ounces.

On a positive note, surveys in the mining sector 2020 State of the Mining Industry Survey Report 27 has shown that employment in the mining sector was not that much affected for 80% of miners indicated that their employees were only affected by 0-10%, while the remainder were affected by 10-20%.

The government continues to ensure that the Covid19 initiatives are practised by all business sectors as a way to curb the spread of the pandemic and also to avoid the closure of industries if the pandemic continues to rise.

ZIMASCO and Afrochine

On the 25th March 2020, Portnex shut down its Zimasco ferrochrome plant in Kwekwe after prices of the alloy fell to four-year lows on weak demand caused by the coronavirus outbreak. Afrochine downgraded and started operating below 50% of installed capacity. Production at the miners has since increased.

ZCDC

COVID 19 pandemic struck affecting China which accounts for 15% of the global diamond market. The lockdown in China not only meant that diamond sellers had to close shop for at least 2 months but buyers could also not get out and shop for jewellery. The development hit the diamond producer hard to the point that ZCDC failed to pay salaries.

ZCDC spokesperson said “We had problems paying our salary arrears to workers and we have been updating them on the challenges that we had which were emanating from Covid 19 challenges. These challenges are not peculiar to ZCDC but have been felt across the whole sector, it’s a situation that we are addressing actively. We have been optimistic in our outlook and we have resumed diamond sales so we are actively addressing those constraints, we can safely say we are finally navigating out of the woods,” Chagonda concluded.

This article first appeared in the December 2020 issue of Mining Zimbabwe Magazine

List of the certified Covid-19 testing centres

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List of the certified Covid-19 testing centres
It has come to the attention of the Ministry Of Health and Child Care that there are Laboratories carrying out Covid 19 testing without the prior requirement of assessment and certification.
The Ministry of Health and Child Care wishes to advise the public that only Laboratories that have been assessed and certified by the Ministry of Health and Child Care in collaboration with the Medical Laboratory and Clinical Scientists Council of Zimbabwe and the World Health Organization are the only laboratories approved to carry out Covid 19 testing and publish results.
Any Laboratory that wishes to carry out Covid 19 testing should apply to the Medical Laboratory and Clinical Scientist Council of Zimbabwe.

Below is the authorised list of assessed and certified medical Laboratories for Covid 19

Private Laboratories

1. Lancet laboratories
2. PSMI Harare Branch
3. Cimas Harare laboratory
4. Diagnopath laboratory Harare
5. Klosad Laboratory Harare
6. Mater Dei Hospital Laboratory (DLS)
7. Multi Tech
8. Flow Cytometry
9. Haematology Centre
10. Bioexpress Laboartory
11. Genau Laboratory
12. Patholgy Laboratory
13. Unki Mine Laboratory

Government Laboratories

1. National Microbiology Reference Laboratories
2. National TB Reference Laboratory
3. Plumtree District Hospital
4. Gwanda Provincial Hospital
5. Beitbridge District Hospital
6. St Lukes Mission Hospital
7. Victoria Falls Hospital
8. Gutu Mission Hospital
9. Masvingo Provincial Hospital
10. Gweru Provincial Hospital
11. Chinhoyi Provincial Hospital
12. Kadoma General Hospital
13. Marondera Provincial Hospital
14. St Alberts Mission Hospital
15. Bindura Provincial Hospital
16. Rusape General Hospital
17. Mutare Provincial Hospital
18. Chipinge District Hospital
19. Sally Mugabe Central Hospital
20. Parirenyatwa Central Hospital
21. National Virology Reference Laboratory
22. Chitungwiza Central Hospital
23. Chikurubi Maximum Prison
24. Thorngrove Hospital Laboratory
25. Beatrice Road Infectiuos Diseases Hospital
26. Josiah Tongogara Magama
Research and Non-Governmental Organizations
1. Population Service International (PSI)
2. Biomedical Research and Training Institute (BRTI)
3. African Institute Of Biomedical Sciences and Technology (AIBST)

Collection Points authorised

1. Lancet
2. Genau
All results from any unauthorized laboratory shall be regarded as invalid and of no use for the purposes for which they were intended to serve.
Any health institution concerned which contravenes Part XVII, section 99(1) of the Health Professions Act [Chapter 27:19] shall be dealt with in terms of section 99(2) of the same Act.

Invent Insurance Agents call for collaboration between Insurance players & Mining Business

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Invent Insurance Agents call for collaboration between Insurance players & Mining Business

Insurance is not always something people can think about when the mining business is mentioned. It is common knowledge however that the mining business is a risky business and risky business is the reason insurance companies are in business. As such, there is a great need for the collaboration of the two industries, with the view of protecting the growth of the mining industry.

A market intelligence report by Willis Towers Watson in 2020 shows that insurance companies paid about a US 1.3 billion in claims in 2019 from global mining losses caused by several factors including machinery breakdown, fire and explosion, natural catastrophes, derailments, and strikes & riots. To some, claims payments of US1.3 billion might seem like a lot but one has to wonder how much more losses did mining companies experience which was uninsured. It is not clear how much in insurance claims payments Zimbabwean miners have received, but we have realized a fair share of accidents in the mining industry of late.

Just like with any other business, insurance is key in protecting the financial security of the mining business and it can also be used as a growth agent. Zimbabwe’s mining landscape has a mixture of larger mining companies, small scale miners, and illegal miners. Larger mining companies have shown a great understanding of the need for comprehensive risk management, which includes the need for insurance. It is however the smaller mining companies that are not taking full advantage of insurance solutions available to them.  This could be because the local insurance industry has not done much in terms of product development concerning the setup of the mining sector in Zimbabwe.

The need to turn the mineral wealth of Zimbabwe to profitable enterprises has been a major thinking point for policymakers in the nation. One way of achieving this is developing the potential production of the small-scale mining sector, which in itself is turning risk into a path of growth.  The stepping up of insurance players to design and deliver solutions that manage risk and optimize benefits for the small-scale miners will take Zimbabwe’s mining sector on a growth trajectory. However, insurance companies in Zimbabwe have had a limited appetite to insure small scale mining risks.

It is the duty mainly of insurance agents and brokers to step up in designing industry-specific policies and guarantees that optimize operating risk and expand the power to obtain capital, which will strengthen the small-scale miners’ business. This on its own is not possible unless the insurance players take time to study the mining sector with the view of having a deep technical understanding of the sector. Keeping up with the pace of changes in the mining sector will have to be one of the key attributes of the insurance players who seek to take the lead in this. Mining sites by their nature operate like moving construction sites as such there are always problems in defining property such as underground works and roadways and things such as the unpredictability of rock material behaviour never make it easy for insurance players.

The nature of the unpredictability of most of the risks in mining is a good reason for insurance product developers to support miners, particularly the small-scale miners. This can be done through conducting risk assessments with specialist mining engineers, where major risk exposures and their potential damage will be identified, and major recommendations done which will make the risk attractive to insurers and reinsurers. It will always be a good thing to structure insurance policies according to the mining clients’ needs and therefore one size fit all policies will not be ideal, but rather bespoke solutions. There is, therefore, a need for mining associations and mining companies to have close collaboration, open communication which will lead to sustainable partnerships that will not only benefit the mining entities but the Zimbabwean economy. Invent Insurance is beginning an exploration into the mining industry which will cause a drive for well-balanced risk transfer mechanisms to the insurance carriers.

Invent Insurance can be contacted at [email protected] or +263 732441441

Small-scale mining – the baby that needs serious attention

TEPE
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Small-scale mining – the baby that needs serious attention

Artisanal and small-scale mining (ASM) has become an important sector in Zimbabwe, creating jobs for the rural communities, contributing to the country’s economic development, sustaining livelihoods among other important things.

But despite all this, the sector is not being fully supported in Zimbabwe especially in terms of funding and capacity building.

It is facing challenges such as gold marketing, lack of mechanised equipment and finance, perceived lack of recognition and consultation, high charges, absence of a clear mining policy that promotes small-scale mining and centralisation of mining services among a plethora of challenges.

In fact, the sector is drowning in serious challenges that need urgent attention for it to continue playing its role.

Why should the government pay attention to this sector?

A report by the International Labour Office (ILO) says small-scale mining needs to be supported because it helps to stem rural-urban migration, maintaining the link between people and the land and it makes a major contribution to foreign exchange earnings.

It also enables the exploitation of what otherwise might be uneconomic resources, and it has been a precursor to large-scale mining.

The report also says “small-scale mining can and should be encouraged by creating the operating environment that encourages the use of best practices for mining and occupational health and safety and environmental protection.”

The sector has become of paramount importance for the country to achieve its US$12 billion mining industry by 2023. The gold small scale mining sector is expected to contribute up to 12% of total exports.

Job creation

Globally, artisanal mining has grown from 10 million in 1999 to potentially upwards of 20-30 million, according to reports. This increase provides a rich policy ground for promoting a good job agenda. In Zimbabwe, more than 500 000 people are believed to be employed in this sector. Researchers also have estimated that the small-scale and artisanal mining sector in Zimbabwe benefits over 1,5 million people excluding equipment and service providers.

Rural development

Linked to the job creation is artisanal mining’s added value as part of rural livelihood diversification strategies where it is one avenue of income generation, another report reveals. Research has shown how artisanal mining assists rural households in building more dynamic and resilient livelihood strategies portfolios by, for instance, ‘dovetailing’ artisanal mining and farming economies. Further, it is a stimulus for trade and subsidiary business development around mine sites just as evidence in industrial or larger-scale mining operations, it said.

Source of revenue

Reports also say small scale mining is also a major producer of minerals indispensable for manufacturing popular electronic products, such as laptops and phones. For example, 26% of global tantalum production and 25% of tin comes from small scale mining.

On the global front, small scale mining is recognized as a considerable source of revenue for millions of people in about 80 countries worldwide.

In 2016, Zimbabwe’s gold mining sector as a whole, consisting of both artisanal and small-scale mining and large-scale gold mining, contributed 2.6% of gross domestic product (GDP), 18% of exports, 28% of mining output, and 1% of government revenues (royalties only) and employed 7.1% of the labour force. ASM is perceived to contribute significantly to these figures and, therefore, to the growth and development of Zimbabwe’s economy.

What does the government need to do?

The government can support the small scale mining sector through making payments on time, end Fidelity Printers and Refiners (FPR) monopoly, provide funding for small scale miners, proper formalisation among other interventions. These interventions are, however, not exhaustive.

Make payments on time

Fidelity Printers and Refiners (FPR), the country’s sole gold buyer, needs to reduce the turnaround time for payment of gold delivered by both large and small-scale producers. Currently, the turnaround time for payment is not sustainable. It forces producers to sell their gold in the black market.

In his 2021 national budget, Finance minister Mthuli Ncube acknowledged this and promised to rectify it. He said lead times will be reduced from maximum of two weeks to a week for large scale producers and on spot payments will be done to small scale producers from the current maximum lead time of five days.

End FPR monopoly

The southern African nation currently forces gold miners to sell their bullion to FPR and then it pays them 70% in dollars and the remainder in local currency. Parliamentary Portfolio Committee on Mines and Mining Development chairperson Edmond Mkaratigwa last year revealed that the current monopoly “is breeding inefficiencies within Fidelity and the black market is capitalising on these, for example, we are told in some cases Fidelity is taking up to four weeks to pay for deliveries and the miners are saying this is unacceptable.”

“So our view is that there is a need to liberalise the marketing of gold. Fidelity Printers should not remain the sole buyer of gold in the country in order to attract investment into the industry,” he said.

Gold output plunged 30% in the first 10 months of 2020 from a year earlier while exports of the precious metal slumped 23% to $697.7 million during that period, according to the Reserve Bank of Zimbabwe.

Hence, there is a need for the government to end the FPR monopoly over the marketing of gold in the country.

Make funding available

Small scale miners need to be supported financially. They need finance to kick start their dream projects and buy equipment, machinery and tools. Without these things, the sector is bound to collapse.

Refreshingly, Ncube hinted in his budget that he will introduce the Mining Industry Loan Fund which supports small-scale miners through prospecting grants, mining establishment loans, plant and equipment procurement loans, among others. He, therefore, capitalized the Mining Industry Loan Fund with 198.5 million.

As a way of conclusion, the government needs to pay serious attention to the small scale mining sector due to its contribution to the economy in terms of job creation, forex earnings among others. The sector should be supported also because it is drowning in challenges.

Without the government’s full support, the sector is bound to fail and for crying out loud government should invest in FORMALISATION.

This article first appeared in the December 2020 issue of mining Zimbabwe Magazine

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