Mining ZimbabweLatest Mining News, Policy and Industry Updates

EXTENSIVE resource definition and quantification works being undertaken by a Russian firm, Alrosa, at the Malipati Diamond Project in Matabeleland South, has revealed a rare and high-value species of diamonds that have potential to change the face of Zimbabwe’s gem industry.

The successful exploitation of the resource could be a game-changer in terms of accelerating development and job creation for Matabeleland South and Masvingo provinces, in particular. It could also go a long way in revitalising provincial economies in line with the Government’s devolution thrust.

Alrosa, the Russian diamond behemoth, is the world’s largest gem miner with an annual turnover of more than 35 million carats, is exploring for diamonds in Matabeleland South having signed a diamond investment deal that gave birth to Alrosa Zimbabwe.

They are partnering State-owned diamond miner, the Zimbabwe Consolidated Diamond Company (ZCDC). Alrosa has already moved on the ground for exploration works, which includes Aero-magnetic surveys and it is from these works that the miner has seen potential for Type II diamonds.

The Type II diamonds have no Nitrogen impurities within their build and often fetch much higher prices and are between one and two percent of the world’s total diamond resource base.

Speaking after a tour of the project by Mines and Mining Development Minister Winston Chitando on Monday, ZCDC board chairman Mr Wellington Pasipamire said although there is still a lot of work to be done in terms of resource definition, there is evidence for a compelling resource.

The tour was also attended by Alrosa Global deputy chief executive Mr Vladimir Marchenko.

“There is a very interesting discovery of what they call the Type II diamond, which is a rare occurrence, which is free of nitrogen and exhibits high value in the market,” said Mr Pasipamire.

“Ordinarily you get your Type I diamonds, which have nitrogen and carry less value. So, as a kimberlite pipe we are confident that probably we will extract something out of this project,” said Mr Pasipamire.

He, however, noted that there is no case for easily accessible alluvial diamonds and the said mineralisation is of rather “capital intense deep-seated kimberlitic deposits”.

This has still not deterred project development as Alrosa has the requisite financial wherewithal to finance commercial exploitation. So far, the investor has been given access to seven special grants (SGs) but there are discussions to further increase these to 40 SGs.

This has in turn excited parties to the joint venture against the background of the 10 million carats target under the mining sector’s US$12 billion milestone.

“If you look at the capabilities of Alrosa and them being the biggest diamond player, they have sufficient capacity to deploy the capital expenditure that is required for projects of this nature.

“Generally, you don’t venture into a complexly risky project of this nature without having done the necessary risk assessment and capital deployment parameters.

“As ZCDC in partnership with Alrosa, we are very optimistic that it is very possible to achieve the 10 million carats (annual target). Remember we are not just looking at this project alone with the Alrosa team, we are forecasting on 40 special grants in the totality of the Alrosa project.

“So, when you look at the actual valuation of each of those special grants, I think it is very humble for us to estimate 10 million carats (annually), it’s just a conservative estimate but we are headed for victory in terms of that threshold.”

Minister Chitando said such projects are a culmination of investment attracting strategies by President Mnangagwa such as the relaxation of the previously stringent indigenous regulations.

“The ‘Zimbabwe is open for business’ mantra came up with amendments to the indigenisation regulations which previously was 51 (percent for locals) and 49 (percent for foreigners) and it really did not work in terms of attracting foreign direct investment,” said Minister Chitando.

“So that was amended and it enabled us to have a huge inflow into the country and the US$12 billion we are talking about is on the basis of huge foreign investment,” he said.

Chronicle

Rescuers at Task Mine have been ordered to stop exhumation efforts to allow the Mines Ministry experts to investigate the challenges associated with the collapsed mine as well as coming up with solutions to make the mine safe for working once more.

By Shantel Chisango

Speaking to Mining Zimbabwe, Chairman of the Mines Portfolio Committee, Honorable Edmond Mkaratigwa said the rescuers at Task Mine in Chegutu were instructed by the DA with instruction from Mines Ministry to cease the exhumation process so the ministry can take safety precautions with regards to the place.

“Task Mine was sealed so as to give time to the Ministry to investigate the problem and have mechanisms put in place so that detected hazards be addressed hence making the environment safe for working again,” said Hon Mkaratigwa.

He further added that it would be absurd to let miners continue operating considering the fact that the mine just collapsed a few months ago.

“It is inhumane to allow people to work in a situation in which some are trapped and still being rescued. Psychologically it must be traumatising,” said Mkaratigwa.

The halting of Task Mine operations has caused untold suffering among the parents of the people who died in the collapse.

Speaking to one of the parents whose child was the only one the rescuers managed to retrieve from the collapse, Mr Gwatidzo lamented that they are shocked by the halting of the rescue mission because they were expecting the rest of the bodies to be exhumed as soon as possible since one was recently found.

“I want the public to know that as parents we are not happy with what the Ministry has done since we were close to exhuming all the bodies before the Ministry ordered the halt.”

He further added that the Mines Ministry and Task Mine were reluctant in offering help and from day one the parents have been funding the operations to make progress.

“We have been asking for help but surprisingly all government sectors have never supported us.

“Since day one there was no seriousness in taking this as an emergency from CTTU, Task, Mines and the Government itself. This is my biggest concern because this work was not supposed to take such long but there was no support at all. Stakeholders and well-wishers “vakatiregerera veduwe” (Neglected us) until now we are crying for support. Does it mean if someone doesn’t have an office (he) is not a human being that is not worth listening to”.

On the 8th of September 2020, five miners got trapped underground after the shaft they were working on collapsed. One of the miners’ body was exhumed last week and subsequently buried a day after.

Mines Minister Winston Chitando is reported to have only visited the accident scene once.

ZMF’s plans to assist hit a snag after the arrest of its leader on allegations of attempted smuggling. Sources say that Rushwaya donated a substantial amount of money when she visited the site less than a month ago and had plans drum up support to fast track the rescue efforts. The ZMF interim leader has since remained mum on the issue.

Justice minister Ziyambi Ziyambi has been sucked into a gold mine ownership wrangle in Chegutu amid reports he could have abused his office to arm-twist the David Whitehead Textiles Ltd judicial manager Knowledge Hofisi to grant him a mining consent letter, Newsday reports.

This followed reports that Hofisi had initially offered a consent letter to another mining syndicate, Zuvarabuda Empowerment Trust.

According to documents at hand, Zuvarabuda was granted permission to create a special purpose vehicle with David Whitehead and Chegutu Municipality for the Mines and Mining Development ministry to grant them a special mining grant.

In a letter dated September 21, 2020, addressed to Zuvarabuda directors, Hofisi wrote: “In our view, to ensure the smooth revival of the company, it is necessary to consent to mining activities as we did in November 2019. This will be mutually beneficial.

“We are, therefore, going to authorise David Whitehead to mine jointly with the Municipality of Chegutu and Zuvarabuda.”

Impeccable sources however, last week claimed Ziyambi had allegedly armtwisted Hofisi to issue another letter on November 5, 2020, to a mining syndicate, Tusk Mining, in which he has interests.

“We have information that Ziyambi is working with Dexter Nduna and Vengai Musengi under Tusk Mining Syndicate. We were shocked to see another letter of consent from Hofisi which also gives Tusk Mining permission to form a special purpose vehicle with David Whitehead,” the source said.

But Hofisi yesterday said: “I am not in office, if we can meet tomorrow (today)… If you can read the letter you are referring to, it can be an internal document consulting one of our directors not those at Zuvarabuda, but the new investor.”

Hofisi also dismissed allegations that he had been armtwisted by Ziyambi, saying: “Our office operates as independent and whatever decisions we make they are independent decisions. So Minister Ziyambi is not involved. What I know is that there might be two groups that want to be given attention on the issue that you are talking about”.

Contacted for a comment, Ziyambi denied any knowledge of the November 5, 2020 letter giving his syndicate permission over the David Whitehead gold claims.

“No comment, bring the documents to me. That is my comment,” Ziyambi curtly said.

The sources, however, alleged that initially Ziyambi, Nduna and Musengi submitted an application to Hofisi under the name NVZ syndicate which was turned down because it had no supporting documents.

“NVZ (initials for their names) syndicate failed to provide all the requisite documents to be awarded a consent letter. It was at this juncture that they thought of seeking a consent letter under Tusk Mining Syndicate,” the source added.

Hofisi, as the judicial manager for David Whitehead, had to consent to all mining operations that would take place on the privately-owned land.

The sources said the gold-rich area had potential to produce between four to six kilogrammes of gold per tonne.

Ironically, the Chegutu West legislator Nduna, who was until recently Ziyambi’s deputy in Zanu PF Mashonaland West province, was demoted to a mere card-carrying member for the next 12 months while Musengi is the province’s youth chair. Ziyambi has recently been in the eye of a storm, over his nasty divorce with wife Florence, a legal adviser in the Office of the President and Cabinet.

In recent weeks, Mashonaland West and Central provinces have seen a massive gold rush with people from all over the country converging to carry out artisanal gold mining operations.

Only last week, police had to deploy anti-riot police in Mazowe after it emerged that artisanal miners were taking over the Mazowe range.

NewsDay

Yesterday Kadoma Miners Association and other miners operating in Sanyati District proposed USD 1500 in local authority levies, at the Sanyati Rural District Council budget consultations in Kadoma.

The council was proposing for the miners to pay USD 11 000 annually per unit, the Rural Councils Act defines a unit as an operation employing between 5 and 100 workers, thereafter every 50 people make another unit.

Sanyati Rural District Council did not clearly differentiate artisanal miners from large scale miners, the council proposed to levy artisanal miners at the same rate as miners.

Small-scale and artisanal miners (ASM) who attended the council meeting pointed out that the council was charging from thin air for the sake of meeting their financial obligations without taking into consideration how miners operate.

According to Zimbabwe Miners Federation ZMF) Mashonaland West province Chairperson Ms. Chiedza Chipangura, the council was not considering levying other miners in the area other than gold miners and have no database of miners operating in the area.

“Focus was just on gold miners only, the council was not aware of any base mineral miners in their area of jurisdiction therefore they had no proposal at hand for other minerals,” Chipangura said.

Council levies are used for, servicing of roads, construction of clinics, procurement of automated water browser, tipper truck.

The council has leasing facilities for tipper trucks, TLB and tractors which miners can hire at fees way lower than the private players.

Council has plots, business and residential stands for sale. Miners can register on the waiting list to be considered for investing in the same.

Other levies for rural district councils

USD24 000 for Chaminuka Rural District Council, USD 10 000 for Pfura RDC, in Chegutu its USD 1137.64 and in Ngezi USD 6000 per annum.