Mining ZimbabweLatest Mining News, Policy and Industry Updates

ZIMBABWE-focused mining group, Prospect Resources, says it expects to produce top quality lithium to support its glass and ceramic business at the Acadia Lithium Project.

The project is still under development and independent laboratory test results have confirmed that the Arcadia project could produce one of the lowest iron lithium concentrates in the market.

In a latest update, Prospect said it has been focused on production process improvements at Arcadia to generate higher quality and consequently higher value products.

The company’s proprietary production processes were independently carried out by PESCO and Light Deep Earth (LDE) to produce premium ultra-low iron petalite concentrate products, achieving 4,37 percent Li2O and 0,01 percent Fe2O3.

Prospect managing director, Mr Sam Hosack, was quoted as saying: “These independent results reinforce Arcadia’s ability to consistently produce one of the lowest iron lithium concentrates in the market. These quality improvements continue to separate our products from our peers.”

He said his organisation has received numerous requests for samples from customers across Europe and Asia.

“We are now prioritising glass-ceramic customers to receive future petalite product samples,” said Mr Hosack.

Recently, Prospect announced that it has secured a long-term agreement with Sibelco N V, the world’s largest industrial minerals solutions company to supply petalite from its Arcadia Lithium project.

The mining group said the seven-year agreement will see the company supplying 700 000 dry metric tonnes (dmt) of high quality, ultra-low iron petalite concentrate during the tenure of the agreement. The seven-year agreement is for up to 100 000dmt per annum of high quality, ultra-low iron petalite concentrate while the pricing formula for the agreement is linked to the end customer sales contracts with minimum pricing provisions.

The Chronicle

THE Bulawayo City Council (BCC) has turned down a request by a company which wanted to mine gold at the decommissioned Umzingwane Dam and surrounding areas.

Umzingwane Dam is one of the city’s three supply dams that were decommissioned.

According to the latest council report, Extra Rich Mining Private Limited proposed to partner council in mining gold at the decommission dam while at the same time de-silting it.

Director of Engineering Services Engineer Simela Dube said if the company was granted permission to extract gold at the decommissioned dam, illegal panning activities were likely to increase which could even endanger lives of Bulawayo residents.

Eng Dube said the water body was also going to be contaminated with cyanide largely used by illegal miners in their extraction activities.

He said the siltation of the city’s dams was not that bad to warrant de-siltation.

“The proposed development would increase impurities in the raw water besides making it muddy which would in turn increase the water purification costs to council. Furthermore, the proposed project would instead increase siltation and reduce the dam’s holding capacity. The dam does not have any silt hence there is no need for de-siltation and alluvial mining along Umzingwane River would lead to siltation and reduction in water inflows to the dam,” said Eng Dube.

He said such an exercise would worsen the perennial water shortages affecting Bulawayo.

“Mining activities within the dam would exacerbate the perennial water problems of the city considering that mining is also a water intensive activity. It should be noted that the idea looked attractive as gold usually did but the worry is that the proposed project will compromise the water quality and quantity within the dam,” he said.

Eng Dube said aquatic life was critical in water bodies especially for human and animal consumption and therefore there were fears that the envisaged technology would disturb the ecosystem.

“It was also noted with grave concern that Umzingwane Dam is pivotal in the pumping stability of water therefore the proposed development would bring a lot of disturbances to the dam lining and would consequently increase seepage.”

Health Services director Dr Edwin Sibanda said council has to be careful in making the decision as it could result in the local authority falling short in the service delivery mandate while exposing residents to diseases.

“Water sources are generally ‘high security’ areas. Opening them to third parties exposes the consumers to pollution and contamination,” said Dr Sibanda.

The local authority’s public relations department headed by Mrs Nesisa Mpofu noted that the water crisis had seriously affected the image of the city.

The department said gold extraction at a supply dam will therefore not be well with residents.

“The water crisis has made a huge dent on our brand and it would be better if we sought to come out of the woods with this matter. Any project at our dams that is not improving the water situation may be seen to be in the wrong spirit. Unfortunately the issue may not be well received by stakeholders,” observed the department.

After submissions by the different heads of departments, the council resolved to reject the request.

The Chronicle

KWEKWE-based ferrochrome producer, Zimasco, says it will not be deterred from resuming operations despite having three workers testing positive for Covid-19.

The company is finalising preparations to restart production after it temporarily suspended operations at the height of lockdown measures.

General manager in charge of marketing and administration, Ms Clara Sadomba, confirmed the positive Covid-19 tests and said the company has intensified testing and protective measures ahead of reopening while affected workers are in isolation.

“We did find positive cases when we carried out tests in preparation of opening. Every worker goes through the RTD test at our local clinic prior to being allowed entry. If this is negative, we proceed and will take them through our procedures and processes to make sure,” she said. “Should the RTD be positive then there will be need for the person to undergo a PCR test to establish accuracy of the positive result and we will then be guided on a way forward from that.”

Visitors, according to Ms Sadomba, also go through the same process. She said the positive cases will, however, not hinder operations at the smelting company.

“As part of the procedures to return to work and entering the workplace, employees were tested before returning. In terms of Covid-19 protocols, those found positive would have followed the Government guidelines of isolation. These workers did not enter the workplace and their absence out of a workforce of nearly 500 would not stop operations,” she explained.

Zimasco is an integrated ferrochrome producer and operates chromite mining locations in Shurugwi, Guinea Fowl, Lalapanzi, Mutorashanga and tributary operations along the Great Dyke of Zimbabwe. Its non-core operations include coal-bed methane and ranching assets in Zimbabwe. The company employs 750 workers directly and more than 1 000 indirectly.

The company suspended its smelting and mining operations in March as the local industry suffered from the crippling effects of the deadly Covid-19 pandemic.

The Chronicle

ZIMBABWE-focused mining group, Premier African Minerals, has reduced its liabilities by US$1,4 million in the period after June 2020 as it seeks to boost mining operations including its tungsten and tantalum projects in Matabeleland.

In April this year, the company announced that it had entered into a secured

US$200 000 loan agreement and related subscription agreement aimed at augmenting working capital reserves.

Premier indicated in a latest report for six months to June 2020, that it recorded an operating loss of US$0,649 million but was committed to reducing debts as well as restricting capital expenditure to focus on acquiring cash generative assets.

The mining group, among its objectives, has resolved the Exclusive Prospecting Order granted at Zulu and tantalum project or RHA Tungsten equity and funding is resolved or seek a potential disposition of the above assets. The RHA Tungsten mining project is in Kamativi.

“It is important to note that in the period post-June 2020, Premier has significantly reduced its overall liabilities by US$1,4 million through a combination of debt conversion and other settlement agreements and this assists in positioning the company to achieve the objectives set above,” said the mining group.

Premier said the operating loss for the half year period under review was mainly due to the costs associated with maintaining the listing status, which is made up of administrative fees, retainers to advisors and essential Premier operational expenditure.

Recently, the group announced that it was in discussions with the National Indigenisation and Economic Empowerment Fund (NIEEF) to agree on alternative financing options.

NIEEF, a partner of Premier African Resources in the RHA Tungsten mining project, owns 51 percent shareholding.

Premier exclusively owns the plant and equipment at the Kamativi mining operation and the group has pointed out that the mineral claims were ceded as security under the plant rental agreement by RHA to Premier.

In Matabeleland South Province, the mining group also owns the Zulu lithium and tantalite project.