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Lucapa Diamond restarts Mothae mine in Lesotho

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Lucapa Diamond restarts Mothae mine in Lesotho

Australia’s Lucapa Diamond (ASX: LOM) is restarting operations at its Mothae mine in Lesotho, Africa, which had been halted since late March to help curb the spread of the coronavirus.

The Perth-based company said it plans to escalate operations at the mine to 75% capacity as some covid-19 restrictions remain in place.

LUCAPA PLANS TO ESCALATE OPERATIONS AT THE MINE TO 75% CAPACITY AS SOME COVID-19 RESTRICTIONS IN LESOTHO REMAIN IN PLACE

Commercial production at Mothae, which the Perth-based company acquired in early 2017, began in January last year, with the opening of a new 1.1 million tonne-per-year plant that is progressively ramping up to its nameplate capacity.

It produced more than 30,000 carats in its first year of operations, including three diamonds of more than 100 carats each.

Lucapa has a 70% stake in the operation. The government of Lesotho owns the remaining 30%.

The mine is located only 5km from Gem Diamonds’ (LON:GEMD) Letšeng, the world’s highest dollar-per-carat kimberlite diamond mine.

The company also has a 40% stake in the prolific Lulo mine in Angola, where operations resumed partially in May_Mining.com

Ema seeks to stop riverbed mining at Umzingwane river

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Ema seeks to stop riverbed mining at Umzingwane river

THE Environmental Management Agency (Ema) is concerned with damage caused by riverbed mining, at the confluence of Insiza and Umzingwane rivers in Matabeleland South saying that poses serious health risks for people downstream and those who the rivers supply with water.

Last month Government banned all riverbed alluvial and riverbed mining on rivers with immediate effect, except on the Save and Angwa rivers where desiltation will be allowed under very strict conditions. However, at the confluence of these Matabeleland South two rivers, it seems illegal gold miners had been carrying on their activities, which uses mercury to process the precious metal. Ema Matabeleland South Provincial Environmental manager Mr Decent Ndlovu said there were worried about the health of communities downstream of the river.

“We are worried about communities downstream and this mining is associated with the use of mercury and we have such big numbers in such a place, with no toilets or anything. We have the reservoir that supplies Collen Bawn Town, West Nicholson and surrounding areas both affected,” said Mr Ndlovu.

Environmentalists say mercury affects the body’s nervous system and may lead to pregnant mothers giving birth to deformed babies.

According to Mr Ndlovu, when mercury contaminates water its next to impossible to purify it. He said Ema together with the Zimbabwe Republic Police (ZRP) were working to enforce the law on riverbed mining. Mr Ndlovu said there were more than 15 mine shafts that have been dug by illegal miners at the confluence.

“This place which is in the confluence of Insiza and Umzingwane River has been seriously degraded by illegal miners where shafts measuring between 30 to 50 metres have been dug in the river bed. There are more than 15 shafts which is a massive degradation of the environment, threatening the weir that provides water to Zimbabwe National Water Authority (catchment area), which is just in the vicinity downstream,” said Mr Ndlovu.

He added that Ema was in the process of rehabilitating the area. He encouraged illegal miners to register with the Ministry of Mines and Mining Development.

“We encourage them (illegal miners) to approach the ministry of mines where they’ll be given the necessary paperwork or place to mine, in such a riverbed they may be given special grants, but currently alluvial and riverbed mining is prohibited. So, we have come in to make sure that this doesn’t continue,”_Sunday News

YMF to set up academy for young miners

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YMF to set up academy for young miners

THE Young Miners Foundation (YMF) is working on setting up a young miners’ academy in Zvishavane as part of efforts to accelerate skills development and professionalism among budding miners.

This comes at a time when most young small-scale and artisanal miners who lack skills are injured, trapped or die when mining shafts they are working in collapse.

In an interview, Young Miners Foundation (YMF) chief executive officer Mr Payne Kupfuwa said the academy which is in the process of being set up will start enrolling students at the beginning of next year.

“We have identified a venue where we can start the academy here in Zvishavane. We are currently working on the modules and tutorials that will be undertaken by the students, as our first enrolment will be January 2021. After training the students will be awarded certificates, but these certificates should be equipping certificates similar to the ones received at vocational training centres. Lack of skills remains a major impediment to the desired growth of the mining industry, which is one of Zimbabwe’s key export sectors.

“As a way of encouraging professionalism and proper mining entrepreneurs, the academy will be fulfilling YMF’s dream of developing 21st-century young mineral magnets as a stimulus to other productive enterprises in the country,” said Mr Kupfuwa.

He added that the organisation was also in the process of setting up a gold mining centre in Zvishavane.

“We are working on establishing a young miners gold processing centre in Zvishavane by December which will boost minerals output as well as curb leakages. More gold processing centres will be rolled out further around the country whereby they will stand as a benchmark of the kind of mining young people need,” he said.

Mr Kupfuwa also said as a way of increasing skills development among miners, YMF would be rolling out young miners’ workshops.

“We will be having a young miners indaba from 20 to 27 November. This will be a platform where we will bring all young miners and corporate family members together to discuss issues on how best we can come up with investment models to support small-scale mining initiatives. Mining should be viewed as a career or business for these young miners so we will also discuss prospective investors either locally or internationally.

“Young miners are lacking proper capitalisation to boost their projects, so we want to come together and discuss how best we can come up with investment packages that attract investors who can develop our small-scale mining into medium or large-scale mining. Since 1980 there has not been much progress in developing small-scale mining into medium-scale mining by young miners, the mindset to stay small has been the major problem. Every effort, entrepreneurial skill, professionalism is needed for young miners to develop.”_Sunday News

Legal trouble for Togarepi

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Legal trouble for Togarepi

Former Zimbabwe Miners Federation (ZMF) Mashonaland Central Youth Chairperson Blessing Togarepi has been served with a notice to cease and desist from mentioning, mounting malicious misrepresentations and attacks against the ZMF and its officials on social media platforms.

D Mthombeni Legal Practitioners under instruction from the ZMF notified Togarepi to cease and desist from putting the name of the Federation into disrepute.

“Notice to cease and desist mentioning, mounting malicious misrepresentations and attacks against the Zimbabwe Miners Federation (ZMF) or any of its officials on social media platforms,” said the notice.

The Legal Practitioners have also warned Togarepi from tarnishing the image of ZMF officials and its President.

“Especially tarnish the image of both clients and its officials, in particular, Ms Henrietta Rushwaya. The client has since forwarded to us some of those audio recorded clips which you shared on WhatsApp,” read the urgent notice.

The notice also advises Togarepi to address any mining issues with relevant authorities.

After a series of rants, Togarepi accused the ZMF President of blocking him on Whatsapp to which the letter responded clearly stating the blockade was due to constant harassment Rushwaya received from Blessing.

“Miss Rushwaya had to block you from her phone for the nuisance that you (Togarepi) had allegedly become because she could not stand your relentless harassment,” read part of the notice.

In a WhatsApp audio message shared on mining platforms which is suspected to have finally triggered the notice, Togarepi bizarrely expressed his anger towards a Mines and Minerals bill that was expected to be tabled to parliament and last month, accused ZMF of being complicit. The bill, which has not yet been revealed or made public will be unveiled at an event that will have stakeholders giving their input before being passed.

Speaking to Legislators on the delays of the bill recently, the Deputy Attorney General Nelson Diaz told the Parliamentary Portfolio Committee on Mines that the delays were due to understaffing as he had only four junior lawyers to do drafting in his department.  He also said that his department was also inundated with several other laws that needed drafting like the Constitution of Zimbabwe Amendment Bill and they Cyber Crime and Cyber Security Bill which are now before Parliament.

To add insult to injury Togarepi in a WhatsApp audio confirmed receiving the notice and proceeded to blast the D Mthombeni Legal Practitioners for “leaking” the documents on WhatsApp platforms. He accused the Law firm of being unethical.

“I received a letter at the office yesterday (Saturday) and now I see the letter circulating in media. These law firms are not ethical…” he said.

An anonymous miner who chose not to be named expressed disappointment over the way Togarepi was manufacturing trouble for himself.

“It is most regrettable and unfortunate that Togarepi has mounted a personal attack against lawyers whose only ‘fault’ was to execute client instructions. He has gone into overdrive making false accusations against the law firm that was instructed by ZMF to write to him demanding that he cease and desist his inappropriate conduct. Togarepi has failed to provide any factual basis for attacking the professional, ethical integrity of the lawyers when challenged to do so other than making malicious, defamatory accusations. Most shockingly Togarepi has chosen to fight the messenger and has never disputed the contents of the letter and allegations made by ZMF and its officials”.

Meanwhile ZMF lawyers D Mthombeni Legal Practitioners refused to comment on the matter when contacted for comment citing professional reasons. “Issues are dealt with in and through appropriate forums or channels and not through the Media,” said Mthombeni.

Togarepi late last year from an uninformed position attacked the current Minister of Mines and Mining Development Hon Winston Chitando through a series of audios sent on social labelling him a sell-out for issuing EPOs which he claimed were issued by the Minister yet since 1994 no EPO has been gazetted.

Chitando urges ASM to join ZMF

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Chitando urges ASM to join ZMF
The Minister of Mines and Mining Development who is also Zimbabwe Miners Federation (ZMF) patron has urged Artisanal and Small Scale miners to be part of the Federation of small scale miners for their voice to be heard.
Rudairo Dickson Mapuranga
Speaking at the signing ceremony between ZMF and  CBZ holdings, CMED and AliJapan789  the Minister applauded Henrietta Rushwaya led ZMF for working closely with the Ministry through good communication strategy.
Chitando said organisations who wish to be engaged by the Ministry should either be under ZMF or the Chamber of Mines.
“Success is anchored on the good communication between miners representative bodies, the Chamber of Mines and Zimbabwe Miners Federation. I applaud ZMF for being always there. We have some players asking for intervention, I encourage them to join one of these two organizations because they represent the interests of miners in the country.” Hon Chitando said.
The Minister said his Ministry was working flat out to ensure that the mining sector achieves President Emmerson Dambudzo Mnangagwa’s vision to become upper-middle-income earner by 2030 and the groundwork to achieve the vision has been clearly set out with various developments taking place.
“Economic development is not an event. The groundwork for the achievement of the vision by H.E. has clearly been set out including mining. Specific to the mining sector we have various development taking place. The mining sector is slowly moving towards the optimum extraction of its mineral resources. By the nature of its geology, small scale mining is as equally important as LSM.”
To achieve the USD 12 billion roadmaps Chitando said the government will soon unveil capacity building programs aimed at fully equipping miners to extract and add value to the economy.
“Government will soon be unveiling other capacity-building programmes to ensure that miners will fully extract and add value to the economy. ZMF will be heavily involved. It is happening, it’s in the pipeline” Hon Minister Chitando

ZMF sign ground breaking growth and development deals

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ZMF sign ground breaking growth and development deals

Rushwaya led Zimbabwe Miners Federation (ZMF) has signed three small scale and artisanal mining growth and development deals with CBZ HOLDINGS, CMED and AliJapan786 Zimbabwe Private Limited in an endeavour to see the mining sector achieving USD 12 billion by 2023.

Rudairo Dickson Mapuranga

As part of its formalisation exercise, the Federation has partnered with these firms for them to fill in the logistics gaps for small scale and artisanal miners to ensure that mining growth and development happens. The partnerships will cover, gold buying, fuel scheme for small scale miners, vehicle loan scheme, and mining mechanisation programs.

According to ZMF President Ms Henrietta Rushwaya, the Federation body of small scale and artisanal miners has committed themselves to make sure that ASM aid the Minister’s vision for the mining sector achieving a USD12 billion industry by 2023.

“As the Zimbabwe Miners Federation, we take note of the work the ministry is doing, we have taken it upon ourselves that the 12 billion road map is attained,” Rushwaya said

Gold buying

The Federation according to Rushwaya will enter into a tripartite agreement with an investor identified as a partner to buy gold from the artisanal and small-scale miners and CBZ, the Federation has identified 4 districts where gold buying offices will be set up and commissioned.

“As part of our formalization exercise, we have incorporated CBZ as our banking partner, we have our small-scale miners who work hard to ensure that Zimbabwe develops.”

“ZMF will acquire gold buying permits, identify agents, and set up gold buying offices for all the mining districts. Cash will be accessed from CBZ branches. Personnel at all the ZMF gold buying centres will hand over any bullion transacted equivalent to cash disbursed to CBZ-ZMF vaults for transit to Harare.’’ She said.

Rushwaya also said that ZMF as a registered gold buyer will help in curbing leakages by buying gold in even the remotest areas. The association will buy as little as a point of gold which is shunned by other buyers.

“Allow us to help in the gold mobilisation exercise, as such we have taken it upon ourselves as ZMF that we try to reach to all areas that fidelity has not been able to reach, we can collect as little as one point of gold. One point collected from as many as 2000 miners can be of significance to the national fiscus,” said Rushwaya.

CBZ Holdings through its Executive Director Lawrence Nyazema said the partnership was important in the growth of the small-scale and artisanal mining sector. In his remarks, the CBZ Executive Director said his company was prepared to see the formalisation of the small-scale sector.

“We do not take for granted the opportunity that we have been given to be your partners. As CBZ, we see this as the beginning of a long-standing relationship.  When we look at our group, we are structured in a way that when miners have the fuel, when you are being paid your cash, we will then look at the next stages of your life. As Zimbabweans, we should be asking ourselves, until when are our small-scale miners going to be seen at the bottom end of society when they generate over a billion USD dollars every year. So we would want you to start generating wealth for your future families,” said Nyazema.

Fuel scheme for small scale miners

“ZMF shall be using CMED facilities dotted around the country to supply fuel to its members. The fuel will be dispensed from CMED fuel depots around the country. CMED will print coupons uniquely marked with ZMF logos. These will be sold from designated ZMF offices/agents”

Vehicle loan scheme

ZMF General Council Chairperson Makumba Nyenje has confirmed that at least 200 vehicles including mining equipment from Alijapan in the country are expected in the country before this December.

The payment will either be in hard currency or gold as per contractual terms.

Zimplats revenue, production soar

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Zimplats revenue, production soar

A good work ethic and a sense of accountability in the running of Impala Platinum’s Zimbabwe subsidiary, Zimplats, are some of the factors that have ensured solid financial returns for the company despite the unfavourable socio-economic conditions in that country.

This is according to Nico Muller, the CEO of Implats, which has a 87 percent stake in Zimplats.  For the full 2020 financial year, Zimplats lifted revenue by 38 percent year-on-year to $868,9 million, while production of platinum concentrate rose.

Zimplats operates underground mines and a concentrator at Ngezi in Zimbabwe, while its Mimosa Mine is jointly owned by Implats and Sibanye-Stillwater.

Zimbabwe has endured a long period of economic decline, with currency shortages and high inflation rates.

Muller, speaking at the Jo’burg Indaba, a gathering of mining industry leaders and investors, said some of the contributing factors to the group’s good story was the mechanisation of operations and employer-employee dynamics within the company.

“If I look at the relationship between the CEO of Zimplats and his management team down to employee level, I think there is much lower hierarchical structure and there is also a much clearer sense of purpose and accountability.”

Given Zimbabwe’s high unemployment rate, people are very proud to be associated with a company that is performing well, something which has benefited the mining group over the years, he said.

“They are very proud of their jobs.”

The Government in April granted Zimplats permission to continue operating its mining and processing facilities during the lockdown period. However, the operating conditions in Zimbabwe are not without challenges.

In its recent financial statements, Implats noted that fiscal legislation in Zimbabwe is “volatile, highly complex and subject to interpretation”. Zimplats has, for example, been subject to a review of its historic income tax returns. Due to such reviews, disputes can arise with the Zimbabwe Revenue Authority (ZIMRA) over the interpretation or application of certain legislation, said Implats.

Its Zimbabwean subsidiary had filed legal proceedings in the Special Court for Income Tax Appeals and the Supreme Court of Zimbabwe in relation to various historical income tax matters, the company said.

Muller was still optimistic about the company’s footprint in Zimbabwe, where mining is the country’s most significant earner of foreign currency.

“The potential of the Great Dyke offers the kind of future that we often speak about, which is low-cost mechanisation,” he said_Business Weekly

$18 Billion COVID 19 Economic and Stimulus Package a challenge for ASM

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$18 Billion COVID 19 Economic and Stimulus Package a challenge for ASM

The Deputy Minister of Mines and Mining Development Hon Polite Kambamura has encouraged Artisanal and Small-Scale Miners (ASM) to formalize for them to benefit from the government’s economic development and supporting schemes.

Rudairo Dickson Mapuranga

The artisanal and small-scale mining sector is the major contributor of gold produced in Zimbabwe accounting for more than 60 per cent while in chrome, the sector is very active speculatively accounting for over 70 per cent of chrome productions.

Responding to artisanal miners demands that the government should have considered that most small scale and artisanal miners would not be able to acquire the $18 Billion Covid-19 Economic and Stimulus Package pronounced by the government due to its conditions which are out of touch with the reality, Deputy Minister Kambamura said the facility was managed by the bank thus miners were compiled to standard bank loan conditions.

Kambamura also advised small scale and artisanal miners to formalize their operations by registering with the Ministry of Mines and Mining Development in order to benefit from such government supporting packages.

“The facility is managed by the bank and interested parties should borrow according to standard bank loan conditions. We also encourage the ASM sector to formalise by registering their operations with the Ministry of Mines and Mining Development, other government departments and opening bank accounts.” Hon Kambamura said.

However, Speaking to Mining Zimbabwe Norton Miners Association Chairperson Privelage Moyo the government is not supposed to generalize conditions when dealing with small scale and artisanal miners because most of these miners need government support although they cannot meet many of a modern business requirement.

Moyo said it was important for the government to look at who was receiving the loan and the state that the particular business is operating in before coming in with conditions that are difficult to match for national fiscus contributing businesses.

The Norton Miners Chairperson also said that stringent conditions should not be required for small scale and artisanal miners because the country is not economically free for businesses to operate as big corporates due to the trade embargos imposed on the country.

“As small-scale, we might not have all the requirements that they want. They should look at who they want to give a loan and not to generalize the conditions. If you ask for stringent conditions from small scale miners, the country is not economically independent as we speak because it is under sanctions. We must relax our conditions when speaking of small scale miners.” Moyo said.

The land which is owned by small-scale and artisanal miners should be considered as collateral because the land on its own is an asset, Moyo said.

“What govt need to realize is that land on its own is an asset and can be used as collateral, because in the mining sector before I get the resource I get the land, so that land is already valuable on its own that land already can be used for any other project that they need to consider.” He said.

Below are the conditions that are given to small scale miners

  1. Support letter from Zimbabwe Miners Federation (ZMF)
  2. Support letter from The Ministry of Mines and Mining Development
  3. Signed Extract Board Resolution
  4. Draft agreement from lenders
  5. Company Documents-CR 14, Memos and Articles of Association 6
  6. Detailed Business proposal
  7. Audited financial statements for the past 3 years-Provisional statements will be required

where audited statements are not available

  1. 3-year cash flow as well as underlying assumption-accounting for the principal and interests’ repayments
  1. Latest aged analysis of trade receivables and payables
  2. Latest Management of Accounts
  3. Full details of borrowing position indicating the name of lenders, types of facilities, amount approved, date approved, current utilization, outstanding balance, arrears report, repayment terms, expiry date, due date, full details of securities, collateral provided, and debt management strategy in case of arrears.

FalGold to delist from ZSE

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FalGold to delist from ZSE

Struggling gold producer, Falcon  Gold (FalGold) said on Wednesday it will seek shareholder approval at the end of the month to delist from the Zimbabwe Stock Exchange (ZSE)  after 24 years of trading.

The de-listing is one of two moves, including a buyout of minority shareholders, being implemented as part of an overall plan which the majority shareholder, Canadian based New Dawn, wants implemented before rescuing the firm whose operations are at a standstill.

Trading of FalGold shares was suspended in March this year after the miner failed to publish its financial results on time.

The firm has in the past year unsuccessfully tried to raise US$3  million to inject in its main operations at the Golden Quarry located in  Shurugwi.

“A number of structures have been discussed to address Falcon Gold’s working capital issues (and the legal paths to implement such structures), but New Dawn has advised that the existence of the approximately 15 percent minority interest, combined with the continued listing of Falcon Gold’s shares on the ZSE, are the factors that are preventing New Dawn from being able to provide the critically needed capital injection into Falcon Gold,” the miner said.

“In essence, it is against New Dawn’s economic interest, and would  furthermore be fiduciary irresponsible for New Dawn to provide funding  to Falcon Gold with minority interest still in place.”

An offer of ZWL$0.13 per share has been made to minority shareholders.

At least 75 percent of shareholders are required to pass the vote to delist and buyout minorities at the company’s extraordinary general meeting to be held on October 29.

In its justification for the de-listing the miner said it was no longer beneficial for the firm which had failed to mobilise funding to invest in operations through the sale of shares.

“As a public company that is exclusively traded on the ZSE and only in  Zimbabwe, such listing has not in recent years provided any benefit to  Falcon Gold,” the firm said.

“In fact, the ZSE listing has been detrimental given ongoing legal,  compliance and audit costs, and the inability to raise capital through  the sale of shares.”

New Ziana

South African union threatens strike at coal and diamond mines

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South African union threatens strike at coal and diamond mines

South Africa’s National Union of Mineworkers (NUM) threatened on Friday to call a strike at mining companies De Beers, Exxaro, and Petra Diamonds after failing to reach wage agreements.

NUM, one of the biggest mining unions in South Africa, said it had secured a certificate to stage a strike after talks on a wage settlement in mediation with the companies at the Commission for Conciliation, Mediation and Arbitration (CCMA) came to no agreement.

THE THREE COMPANIES ALL SAID IN SEPARATE STATEMENTS THAT THEY WOULD CONTINUE TO ENGAGE WITH THE UNION TO FIND A SOLUTION

It said it was finalising picketing rules with the CCMA but did not say when the strike would go ahead.

“It is going to be a big, big fight,” said William Mabapa, NUM Chief Negotiator at the three companies, said in a statement.

“Food prices, fuel prices, and general inflation had sky-rocketed. There is just no room for peanuts increases and for that, we are prepared for war.”

The three companies all said in separate statements that they would continue to engage with the union to find a solution.

“We value our employees and our relationship with the NUM and we will therefore continue with our engagements in an effort to reach a sustainable agreement in the interest of all parties, considering the current external environment,” De Beers, a unit of Anglo American, said in its statement.

Exxaro is the biggest coal supplier to South Africa’s state-owned power utility Eskom.

NUM has also reached a deadlock in its wage negotiations with unlisted Seriti Coal Mine and has declared a dispute with the CCMA for mediation, a move that is one step short of a strike.

South Africa’s labour laws allow for wage disputes to be referred to an outside mediator. If that fails, employees can go on strike.

NUM said it is demanding an increase of 8.5% across the board while the company is offering workers a 4% rise.

Seriti said talks with the union were continuing.

Reuters

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