Home Blog Page 560

UK firm eyes gold opportunities in Zim

TEPE
-
0
UK firm eyes gold opportunities in Zim

A United Kingdom based investment company, Contango Holdings, is eying gold opportunities in Zimbabwe, which the company said could be monetised in order to provide material value to shareholders in the short term.

The resource firm, which is listed on the London Stock Exchange, already has business interests in Zimbabwe after acquiring a 70% shareholding interest in Lubu coal project in Hwange district recently.

Local partners hold the balance of 30% in the project.

Contango Holdings expects to start production before year-end.

Lubu is one of the biggest deposits in southern Africa, with an estimated total resource of 2bn tonnes of coal.

The company said as part of its growth strategy, its focus remains on targeting assets with near term cash flow, low capital commitments, and short payback periods.

“Contango has benefited from both its regional expertise in Zimbabwe and the profile of its UK listing, such that a number of opportunities have emerged that appear complementary to the company’s growth strategy.

“In particular Contango has identified a number of gold opportunities which could be monetised in the near-term through a toll treatment model in conjunction with exploration/development upside,” the company said in a statement.

This, the company said would enable a staged development and expansion, along with potential asset level or off-take funding, which would minimise any dilution and offer significant value to shareholders, particularly given the current gold price environment.

Recently, Contango signed two take-off agreements with South Mining and CoalZim Marketing Limited for coal products produced at the company’s Lubu coalfields.

The company expects to seal additional off-take agreements before year-end. Commissioning of Lubu and appointment of contract miners is also expected before the end of this year.

“We have made pleasing progress with Lubu over the last few months – progress which is all the more notable due to the exceptional operating environment that we have found ourselves in due to the Covid-19 pandemic.

“I am confident that as southern Africa increasingly returns to normality over the coming weeks and months, the letter of intent that we have secured thus far will translate into formal lucrative coal off-take agreements.

These are expected to be joined with other agreements in due course,” Contango Holdings executive director Carl Esprey said.

He added: “Our progress with Lubu has laid the foundations for what we believe will be a very profitable cash generative operation.

As such our attention is now turning to our wider complementary growth strategy, which includes the acquisition of businesses or assets with clear paths to cash flow and which have already been de-risked through previous exploration.”

The Contango board is currently evaluating a number of gold opportunities which are in line with these key investment principles and which have the potential to provide material value to shareholders in the near term_Business Times

Gold deliveries decline 73 percent

TEPE
-
0
Gold deliveries decline 73 percent

Zimbabwe’s gold deliveries in September plunged by 73% to close at 1.36 tonnes from 2.8 tonnes in the comparative period in prior year owing to rampant smuggling by small scale miners who blamed payment delays being faced by the miners.

The country’s small scale and artisanal gold miners have emerged as the cornerstone of the sector in the past few years producing and delivering more gold than large-scale mining houses.

Zimbabwe has more than 4,000 recorded gold deposits and has an ambitious plan to grow the mining sector annual earnings to US$12bn by 2023, with gold expected to contribute US$4bn.

Although there are no official statistics, estimates suggest small-scale gold mining control more than 60% of active gold deposits in the country.

And the bulk of the yellow metal is delivered by small scale miners.

The sharp fall, notwithstanding that gold mining was declared an essential service during the Covid-19 lockdown period, paints a gloomy picture.

The downturn in output coincided with the country’s sole gold buyer, Fidelity Printers and Refiners (FPR)’s failure to pay for deliveries on time, a situation which has forced the small scale miners to sell their yellow metal to alternative markets.

Recently, Home Affairs Minister, Kazembe Kazembe, said Zimbabwe was losing more than US$100m worth of gold due to smuggling.

Finance Minister, Mthuli Ncube, concurred with Kazembe.

It is understood that some buyers pay United States dollars on the spot.

This would mean it would be difficult to meet the target.

FPR, a unit of the Reserve Bank of Zimbabwe, committed to make 100% United States dollars as part of efforts to improve bullion deliveries.

But, this has been hampered by the delays in payments, resulting in them selling to other markets.

They said if the Reserve Bank of Zimbabwe and FPR start making payments on time, it would be easier to speed up economic recovery.

Subdued gold deliveries will likely affect gold export receipts.

The crisis is likely to worsen Zimbabwe’s foreign currency woes.

Gold is the largest foreign currency generator followed by tobacco.

FPR general manager, Fradreck Kunaka, blamed Covid-19 pandemic as the major contributor to decline in gold deliveries and the late payments to gold producers.

“Gold deliveries have gone down 73% to reach 1.36 tonnes during September 2020 from 2.8 tonnes last year due to restrictions imposed by Covid-19 pandemic which hampered operations as it restricted the movement of mining raw materials and people especially the small scale miners,” Kunaka told Business Times, warning of a likelihood of sustained low deliveries till year-end.

Gold Miners Association of Zimbabwe chief executive Irvine Chinyenze said FPR should make payments on time.

“We can’t deny the effects of Covid-19 as it delayed the shipping in of raw materials from China and other countries but the major reason for the fall in gold deliveries was that FPR continues with some talk shows telling people that their money will be paid, the way to go is just look for the US dollars then clear the backlogs and begin paying on spot.

Certainly by so doing everyone will deliver to them,” Chinyenze said.

“As long as small scale miners do not get paid instantly the country will lose a great deal of minerals and revenue as miners search for alternative markets for their precious minerals.”

He said small scale gold producers “don’t protest in the streets” and the fall in gold deliveries showed the sector’s “sign of displeasure in gold payments”.

Cumulative gold deliveries figures up to September 2020 have fallen 28% to 14.76 tonnes compared to 20.64 tonnes delivered during the first nine months of 2019.

This comes as Zimbabwe’s cumulative bullion export receipts to August have gone down 4.9% to reach US$641.3m during the first eight months of 2020 from US$674.4m earned during the comparative period in 2019 due to a huge fall in July and August gold deliveries.

During the first eight months of the year the exported yellow metal was 24.9% down to 11.7tonnes from 15.5tonnes shipped during the same period last year.

The yellow metal is now the highest forex earner and contributes 38% of the country’s total earnings and more than 60% to the mining sector which is the highest forex earning sector in the country.

Zimbabwe is battling leakages attributed to late payments amid indications that over 34 tonnes are believed to have been smuggled out of Zimbabwe.

It is targeting 100 tonnes of gold per year by 2023, a figure which is expected to help the mining sector to earn US$12bn yearly.

Gold is expected to lead the charge with US$4bn_Business Times

HIV time bomb in mining sector: NAC

TEPE
-
0
HIV time bomb in mining sector: NAC

Zimbabwe’s small scale and artisanal mining sub-sector has recorded the highest HIV and Aids infections in the past few months, a situation which is likely to hamper operations at a time when demand for minerals is booming, the National Aids Council (NAC) has said.

The workers who haul up the earth’s riches, especially small scale gold miners, have emerged as the cornerstone of the subsector after upstaging large scale mining houses in the past few years.

NAC chief executive officer Bernard Madzima told Business Times that small scale and artisanal miners were prone to HIV and AIDS more than other populations in Zimbabwe due to their operating environment which lacks proper health facilities.

This is despite the fact that Zimbabwe and the SADC region has made significant progress in fighting the HIV and Aids epidemic.

“When they are in those various areas where they are doing mining there are no proper health facilities and their behaviour in most of the cases lead them to be more vulnerable to HIV and Aids.

This group handles large sums of money and they become easy prey for commercial sex workers,” Madzima said.

“So it’s important for the country to come up with specific programmes for them, in terms of behavioural change, in terms of them accessing safe sex, safe family planning methods and safe sexual reproductive health services and commodities.”

Several recent studies have revealed that very high risk sexual behaviour was more frequent among small scale miners, partly due to drug abuse.

Illegal mining operations are now rampant in Zimbabwe, a situation which has resulted in the transmission of HIV and Aids and other sexually transmitted diseases.

Last year, Shurugwi district recorded highest HIV prevalence rate of 17% against the national average of 13%.

According to official data obtained from NAC, Shurugwi district, on average recorded about 300 cases of sexually transmitted infections in the last quarter of last year_Business Weekly

Zimplats annual production increase 7 percent

TEPE
-
0
Zimplats annual production increase 7 percent

Zimbabwe’s biggest platinum producer, Zimplats holdings’ productions increased by 7 per cent when the miner extracted 7.2 million tonnes of ore 700 thousand more than the 6.7 million tonnes achieved in FY2019 the company’s chairperson of Board Dr Fholisani Sydney Mufamadi has said.

Rudairo Dickson Mapuranga

Through his annual message to the company’s stakeholders, Mufamadi also said that milling volumes for the Ngezi based miner increased by 300 thousand tonnes due to the tonnes addition from the company’s Mupani mine and fleet productivity enhancement initiatives.

“Your Company mined 7.2 million tonnes of ore, 7% more than the 6.7 million tonnes achieved in FY2019. Milling volumes also increased from 6.5 million tonnes in FY2019 to 6.8 million tonnes due to ore from Mupani Mine and benefits of fleet productivity enhancement initiatives that started towards the end of FY2019 and have now been rolled out to all the underground mines. The concentrator plants outperformed their previous year throughput due to higher running time and milling rate.”Mufumadi said in the report.

The 6E ounces produced increased marginally to 580 178 ounces from 579 591 ounces achieved in FY2019. The positive impact of the 5% increase in mill volumes on metal production was partly offset by in-furnace inventory build-up on start-up after the 122 days major furnace rebuild shutdown which commenced on 10 June 2019 and was completed in the first half of FY2020.

The Group recorded a profit for the year of US$261.8 million, 81% increase from US$144.9 million achieved in the prior year. This was mainly attributed to the increase in revenue (US$868.9 million in FY2020 compared to US$631 million in FY2019) arising from improved metal prices and decrease in exchange losses from US$20.2 million in FY2019 to US$4.8 million. This was partly offset by the discontinuation of the Reserve Bank of Zimbabwe export incentive scheme in February 2019 resulting in other income decreasing by US$45.8 million compared to the prior year.

The 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.

The Mupani Mine development project, (replacement for Rukodzi and Ngwarati mines), progressed well during the year and is on schedule. The project is expected to be completed on time and within the approved budget.

The Bimha Mine redevelopment project is substantially complete save for the underground workshops whose progress was affected by the COVID-19 pandemic. The company expect to commission the workshops in the first half of FY2021.

Zimplats to hold annual general meeting virtually

TEPE
-
0
Zimplats to hold annual general meeting virtually

In view of the impact of the COVID-19 pandemic and the restrictions placed on travel and numbers in respect of public gatherings Zimbabwe’s biggest platinum producer, Zimplats will hold its Annual General Meeting (AGM) via online platforms in the interest of health and safety of all stakeholders.

Rudairo Dickson Mapuranga

Through the company’s annual report released early this month, the platinum miner notified its stakeholders that the company will hold its meeting at the offices of Impala Platinum in South Africa and virtual through online platforms.

“Notice is hereby given that the twentieth annual general meeting (“the meeting”) of the members of Zimplats Holdings Limited (“Zimplats” or “the Company”) will be held at the offices of Impala Platinum Holdings Limited, 2 Fricker Road, Illovo, Johannesburg, South Africa, and also virtually at https://78449.themediaframe.com/links/zimplats201112.html on Thursday 12 November 2020 at 11:30 am South African time (GMT+2) for the following purposes:” reads part of the report.

The platinum miners said, it has full support for the laws that are put in place to manage the spread of the Covid-19 thus holding the meeting online. It also said that members who wish to register, vote and participate in the meeting should get hold of the company’s annual report for explanations.

“In full support of the legislative and other measures put in place to curb the spread of the virus, the meeting of the members of the Company will be held virtually via an online platform which allows members to participate electronically in real-time. Members are referred to pages 4 – 5 of this notice (pages 197-198 of the integrated annual report) for specific details of how to register, vote, and participate in the virtual meeting.” The report reads in part.

All holders of ordinary shares in Zimplats at the Entitlement Time are entitled to attend and are required to vote ahead of the meeting.

Resolutions which are ordinary resolutions, propose the re-election of those directors who are retiring by rotation and who are offering themselves for re-election. In terms of Article 16.2 of the Articles, a director will retire from office no later than at the third annual general meeting following his or her last election and will be eligible for re-election.

Mr Nicolaas Johannes Muller, Dr Dennis Servious Madenga Shoko and Mrs Patricia Zvandasara have been recommended by Directors that stakeholders vote in favour of their re-election as the Directors, having regard to their respective qualifications to act as directors of your Company.

Vote for or against the resolutions in the notice, by no later than 48 hours before the meeting (being 11:30 am South African Standard Time) on Tuesday 10 November 2020 on www.investorvote.au.

Shareholders are to note that no voting shall take place during or on the date of the meeting, however, members shall be able to participate in the meeting. The Company will beam a live webcast of the proceedings of the meeting at https://78449.themediaframe.com/links/zimplats201112.html. Members and/or their proxies will be able to submit their questions prior to and/or during the meeting on the aforementioned online platform.

Members may visit the Company’s corporate website www.zimplats.com to view the financial statements or access information pertaining to the Company

Fidelity official gold buying prices Tuesday 14 October 2020

TEPE
-
0
Fidelity official gold buying prices Tuesday 14 October 2020

Fidelity Printers and Refiners (FPR) official gold buying prices Tuesday 14 October 2020

SG 90% AND ABOVE $54.42/g
SG ABOVE 85% BUT BELOW 90% $53.50/g
SG ABOVE 80% BUT BELOW 85% $52.29/g
SG ABOVE 75% BUT BELOW 80% $51.68/g
SAMPLE BELOW 10g BUT ABOVE 5g $52.90/g
FIRE ASSAY CASH $54.72/g

 

Cash available. Fidelity Printers and Refiners prices will be changing daily in relation to world market prices.

Contact FPR

No. 1 George Drive, Msasa, Harare, Email: [email protected], Telephone: +263 242-486670, +263 242-486694, +263 242-487131, +263 242-447810-5

ZCDC Workers Down Tools

TEPE
-
0
ZCDC Workers Down Tools

Operations at Zimbabwe Consolidated Diamond Company (ZCDC) have completely halted with workers reportedly camping at the premises complaining over salary arrears and lack of food.

Well-placed sources at the government-owned diamond entity say the situation is dire and has been compounded by the recent failure of the company to provide food for its workers.

The workers have also gone for over five months without salaries while operations have halted as the company is failing to buy fuel for the plant machinery, leaving only a skeleton staff coming to work as others have downed tools.

“The company is failing to buy fuel, you know we have dumpers, excavators among other machinery which need fuel to operate.

“At Portal A at plant B, almost 300 workers used to come to work, only five people or some just above five are now coming to work at the plant every day just to do safety talk,” said a worker on condition of anonymity.

One worker said since the start of the Covid 19 lockdown operations have slowed down and now completely halted as workers can no longer sustain without food at the company canteen.

“Operations at the plant last ceased almost three months ago, there is no work to talk about at the plant. There is no food at our canteen, we have been eating Sadza and vegetables through and through and this is not good for a diet.

“Now they are failing to provide us even food to eat, so we have said enough is enough we need to be addressed,” said the worker.

ZCDC spokesperson Sugar Chagonda, however, dismissed these reports as unfounded, while acceding that the company has failed to pay workers due to the disturbance of the global diamond value chain

He said the company has since resumed diamond sales and was close to resolving the salary impasse with its workers.

Chagonda is on record that the company have been affected by the Covid 19 pandemic as they have not made any sales due to lockdown.

“I don’t have that report at the moment, we have no report like that from the ground that workers are not working I will need to confirm that.

“That we had problems paying our salary arrears is no secret, its fact that we have been updating the workers 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,” said Chagonda.

Recently the company’s former acting chief executive officer Robert De Pretto who recently resigned from his post amid political interference spoke out against shocking levels of poverty and underdevelopment in Chiadzwa.

De Pretto was reportedly hounded out of the state entity and forced to tender resignation for irrevocable differences with top government officials angling to benefit from diamonds, ZCDC has since appointed Mark Mabhudhu as the new mining concern chief executive officer.

ZCDC has been facing viability challenges and owes its employees salaries since April, and at one time forced to seek a loan of approximately ZWL$2milion from a local bank to pay salary arrears.

Read the original article on 263Chat.

BREAKING: Positively identified clothing found at Task Mine

TEPE
-
0
BREAKING: Positively identified clothing found at Task Mine

Rescuers at Task Mining Syndicate in Chegutu have found a helmet, converse red shoes and gloves underground. The clothing has been positively identified as belonging to one of the miners. Five miners “Task Five” have been trapped underground for the past 35 days after a shaft collapsed at the Chegutu mine. ASM Volunteer rescuers have been working on retrieving the five. Although it is now highly unlikely the “Task Five” will be found alive hopes of retrieving their remains are now high.

The trapped miners are Constantino Dzinoreva (47) based in Chegutu, Charles Mutume (31) Based in Zvimba, Shingai Gwatidzo (20) from Mhondoro and brothers Crynos Nyamukanga (44) and under-aged Munashe Christian (17) from Zvimba.

More to follow

Rushwaya, ZMF officials visit Task Mine

TEPE
-
0
Rushwaya, ZMF officials visit Task Mine

Zimbabwe Miners Federation (ZMF) President Ms Henrietta Rushwaya and her executive visited Task Mining Syndicate mine in Chegutu yesterday in an effort to speed up the search of five missing miners (Task Five) who were trapped underground last month.

Rudairo Dickson Mapuranga

The visit has come after Chegutu District Administrator Mr Tomu wrote a letter to the owners of the mine ordering them to stop rescue operations. However, the letter was then discarded by the government because any rescue operations can only be legally stopped by the cabinet.

Speaking to Mining Zimbabwe, Rushwaya said ZMF was still hopeful that bodies of the trapped miners would be found so that they get a decent burial.

“We are still hopeful that the bodies will be retrieved and there can be a closure to the whole Task Mine disaster. Only God knows when. We still look upon the Lord for salvation.”

ZMF visited the mine to assess the implementation of the government directive on the abandonment of the search of the five missing miners.

Traditional leaders and Mine Officials also held a cleansing cultural ceremony so that the bodies of the five will be easily retrieved.

ZMF has for a long time appealed to the government for help in mechanising their operations to reduce mining accidents at their operations.

Five Miners namely Constantino Dzinoreva (47) based in Chegutu, Charles Mutume (31) Based in Zvimba, Shingai Gwatidzo (20) from Mhondoro and brothers Munashe Christian (17) and Crynos Nyamukanga (44) from Zvimba have been trapped underground since the 8th of September 2020. Hopes of finding the five alive have diminished as it has been 36 days since they have been underground.

The five, “Task Five” as we call them got trapped after their shaft collapsed and rescue operations have been active since.

Indigenisation yet to be repealed in Platinum, Zimplats to engage gvt

TEPE
-
0
Indigenisation yet to be repealed in Platinum, Zimplats to engage gvt

Zimplats board chairperson Dr Fholisani Sydney Mufamadi has said his company will engage the government with regards to the Indigenisation and Economic Empowerment Act at the same time support the government in its endeavours to empower indigenous Zimbabweans and to develop the economy.

Rudairo Dickson Mapuranga

Last year the Minister of Finance and Economic Development in his Mid-Term and Supplementary Budget presented to Parliament on 1 August 2019, stated that the Indigenisation and Economic Empowerment Act (Chapter 14:33) requiring 51% indigenous equity for diamonds and platinum miners was going to be repealed and be replaced with an Economic Empowerment Act consistent with the Government’s drive to open Zimbabwe for business.

This announcement came as a welcome to the business community who had previously critic the law of pushing out Foreign Direct Investment (FDI).

Zimplats Chairperson Mufamadi said Zimplats supports the government of Zimbabwe in its quest to empower the people of Zimbabwe and to develop the economy, however, his company will continue to engage the government for clarity regarding the law.

“Your Company continues to support the Government of Zimbabwe in its endeavours to empower indigenous Zimbabweans and to develop the Zimbabwean economy. The Government is yet to amend the law to bring this to effect. Zimplats will continue to engage the Government for clarity on this matter.” Mufumadi said.

Mufamadi said as a way to support in the Zimbabwean community in the development and economic growth the company procured 60 per cent of its goods and services worth USD220 million from local suppliers.

“Your Company continued with its drive to positively contribute towards the economic development of Zimbabwe and the country’s fiscus. In pursuit of this objective, the Group’s operating subsidiary procured 60% of its goods and services from local suppliers during the year, equivalent to US$220.7 million (FY2019: US$234 million). The decrease in payments to local suppliers was attributable to the decrease in capital expenditure from US$115 million in FY2019 to US$104.2 million and high imports demand strategic projects.” He said.

In addition, the company continues to grow its support of local enterprises which has resulted in over 2 000 jobs created in the last seven years.

Payments to Government in respect of corporate tax, withholding tax, royalties, payroll taxes, and customs duties for the year amounted to US$164 million compared to US$84 million in the prior year.

Zimbabwe is not the first country to have such a policy. A host of other countries from the developed world implemented such policies and still have them in various forms which might not be as direct as the compulsory 51/49 shareholding adopted by Zimbabwe. These countries include the US, China, France, Italy, Brazil, Singapore, South Korea, Japan, Italy, Taiwan and South Africa. In these countries, certain economic sectors are reserved for the natives or the national government pushes for joint ventures with foreigners on strategic investment portfolios.

1...559560561...737Page 560 of 737