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Amplats CEO resigns

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THE CEO of Anglo American Platinum (Amplats) parent company for Zimbabwe Platinum miner Unki Mr CHRIS Griffith, called time on his seven-year stint as CEO of the firm saying it had represented “the pinnacle” of his career.

His resignation is effective April 2020.

“After more than seven years at the helm, and given all that we as a team have achieved, this is now the natural time for the next generation of leadership to take this business forward and deliver further value,” he said in a statement.

Amplats said Griffiths’ replacement would be an internal appointment.

Griffiths goes out on a high after taking over at Amplats during a period of restructuring and plummeting platinum prices.

During this period, Griffiths famously clashed with former mines minister, Susan Shabangu, who reacted angrily to the firm’s plan to cut 400,000 ounces of platinum production, potentially affecting 14,000 jobs. She threatened to withdraw Amplats’ mining licence, but the restructure proceeded in any event.

Today, the company’s shares are more than 200% stronger than in 2013, assisted by sky-high pricing for palladium and rhodium in particular.

In February 2019, Amplats approved a R11,25/share payout, its largest in 10 years having resumed the dividend and hiking the payout ratio to 40% of earnings. This payout was dwarfed, however, by the firm’s 2019 performance, announced today, in which Amplats unveiled a final dividend of R11.2bn and a special dividend of R25/share – its first since 2001 – taking the total dividend to R14.2bn equal to R52.60/share.

This was on the back of a doubling in EBITDA to R30bn year-on-year. Net cash was R17.3bn. Headline earnings came in at R18.6bn, an increase year on year of 145%. Headline share earnings were R70.87/share.

The improvement, as stated previously in Amplats’ trading statement, was partly based on a 36% improvement in PGM prices. The other major highlight of the 12 month period was that it occurred without a single fatality.

Asked to comment on his decision to resign, Griffith said: “I’ve done what needed to be done for the company. It has got good momentum and this is not the peak, but it is a good time for succession.

“I will look for the next challenge. I believe I have got the energy and potential and perhaps I will look for something different.”

His decision to step down – about which he had been considering “for a little while” did not presage a switch in company strategy, or disagreement with the major shareholder, Anglo American. “It does not signal major change in strategy at all. I’m 55 years old. I think I’ve got one or two positions left in me so you don’t need to scratch for an ulterior motive.”

Source: Mining MX

How to protect your mine from machete gangs

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Machete gangs have wreaked havoc in the small scale mining industry and in rare reported cases have small-scale miners succeeded in foiling machete gang’s attacks.

Ongoing blitz from the Police has had machete gang leaders going underground in fear of the long arm of the law making the industry much much safer. A Kadoma menace machete gang known as Ziga went viral early this year with the gang showing off their small loot armed to the teeth with machetes, swords, and knives on video. The video got over 13 000 views on the Mining Zimbabwe YouTube channel. The fearsome video attracted attention from the Police, saw the gang leader getting arrested in Rushinga 385km away a few hours after it surfaced.

Small-scale miners definitely need to boost their security in order to minimise the risk of getting easily robbed by the so-called Machete gangs or Mashurugwi as they are popularly known countrywide. The gold they steal is believed to be smuggled into South Africa where the precious commodity fetches a higher price and is paid in a more preferred currency to our local dollar.

Below are some of the methods to safe­guard your mining claims.

 1 Your production should be your secret

Retired Chief Inspector Elia Sungiso said that “Machete gangs” are not prophets. They are fed with information from within for them to strike. Their modus operandi is they get tipped on mining claims performing well and they ask for names for easy access to the target site. Suspects in such cases are disgruntled workers working at target mines who will, in turn, be given a “cut” (share of the loot). It is highly advisable that mine owners vet their workers and pay decent rates. They should also inform workers on the dangers and risks of discussing mine performance out­side work zone.

  1. Secure your claims (fencing)

Miners should make it a habit of fencing their operations and control access to their operations. It takes seconds for machete gangs to access open operations and fighting them off is usually impossible as they pounce unannounced and in large numbers. Should there be no security guards available resting mineworkers can take turns to monitor entry points.

 3.Install CCTV

Miners can install a cheap CCTV system to monitor their operations and entry points. In this digital age, CCTV can be monitored remotely on multiple devices. An example is before allowing access to unfamiliar faces at entry points the site manager, foreman or owner can log onto the CCTV and check if they know whoever is at the gates. If they sense trouble they can raise alarm. In case perpetrators breach perimeter fence undetected CCTV can help identify the suspects after they are gone. All this can cost under US$300.

 4. Pay fair wages and treat workers well

It’s a well know secret that machete gangs get their information from within the targeted operations. The information usually comes from disgruntled workers who will get paid a commission or “cut” for snitching. Some mine owners from all races are known to ill-treat their workers with a number of It’s a well know secret that machete gangs get their information from within the targeted operations. The information usually comes from disgruntled workers who will get paid a commission or “cut” for snitching. Some mine owners from all races are known to ill-treat their workers with a number of videos online of miners physically assault­ing workers. This is an excellent recipy for having workers trading inside information.

 

  1. Hire a security company

Miners should hire armed guards who have training in unarmed defence patrolling their areas. The upside of Zimbabwean security companies is the law clearly stipulates they should only be owned by ex-servicemen/ women from the Police, Army or Prison service meaning a security company’s guards can be adequately trained.

On request, Security companies can provide experienced armed personnel who usually succeed in apprehending trespassing elements. Those employed as Guards should have a clean criminal record, vetted by the Police.

 

  1. Unknown vehicles with lots of people is a sign of danger. Create relationships with local communities, headmen etc

Mines are usually located in remote areas. It is an added advantage to have miners familiarise themselves with villagers and village heads and exchange contact numbers. It is highly important to know who’s who as it may be an ordinary villager that may be able to raise alarm when you cannot. The more villagers are familiar with operating miners in their areas the easier it is to notice unfamiliar vehicles and faces. A good example is in the Mukaradzi area where a machete gang was apprehended after miners and locals in the area got suspicious seeing an unfamiliar vehicle and unfamiliar faces prompting the miners to seek Police assistance.

  1. Be familiar with your local Police and Emergency hotlines and local miners WhatsApp  groups

In case of suspicion, the Police are the quickest way to stop a machete attack. These days the Police have WhatsApp hot­lines it is highly advisable for anyone venturing into mining to ensure they have contacts to their nearest police station and join local miners’ WhatsApp groups. This makes it easy for Police to pinpoint the location of a distress signal and easy assistance from local miners.

Mount Darwin Police stopped an almost machete victim mine after a quick tip-off. Police responded swiftly, searched the gang of eight and four machetes, four okapi knives were discovered in the boot of a Toyota Wish vehicle they were using. On further interrogation, the gang confessed to being behind the spate of attacks in Shamva, Mazowe and behind the stabbing of soldiers in Bindura. The gang was jailed.

  1. In case of attack stay calm usually, you are out-numbered

Machete-wielding criminals as we saw with the Ziga machete gang who numbered over 40 outnumber small-scale miners at even the largest operation. If you are outnumbered and not armed it is highly advisable to comply with the gangs.

 

  1. Only Hire vetted workers

With the spate of robberies that escalated last year it is important to hire people with a clean criminal record.

Workers should have fingerprints vetted by the Police, produce ID copy and have traceable references. This is a process that the majority of ASM take for granted however with the spat of robberies happening it is of paramount importance that you trust who works for you.

 

  1. Avoid working at night

Its common knowledge that evil lurks at night. If you do not have adequate security and lighting working at night increases risk.


Written by Chief Inspector E. Sungiso (retired). He has trained thousands of Police recruits who graduated into full-time servicemen and women. He can be contacted on [email protected]


This article first appeared in the Mining Zimbabwe Magazine February 2020 issue

ASM to benefit from GDI training school

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Great Dyke Investments is in the process of setting up a training school for Artisanal Small Scale Miners at the Darwendale Integrated Platinum Group Metals (PGM) Project.

The school according to the officials will provide training to ASM on how to properly conduct mining. See video below:

 

EMA speaks on Great Dyke Investments Platinum project

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EMA speaks on Great Dyke Investments project, the Darwendale Integrated Platinum Group Metals in Norton, Zimbabwe. The Great Dyke Investments mine is expected to be the biggest Platinum miner in Zimbabwe in a few years to come.

About Darwendale Integrated Platinum Group Metals

Darwendale Integrated Platinum Group Metals (PGM) Project is operated by Great Dyke Investments (Pvt) Ltd, a joint venture established on a 50/50 basis between Russian AO Afromet and the Zimbabwean company.

Darwendale deposit is a part of the Great Dyke in the Republic of Zimbabwe, one of the world’s largest systems of PGM mineralization with shallow dipping of ore bodies. Total resources of the deposit amount 50 mln oz (1,550 t) of PGMs, of which 17.6 mln oz (550 t) have been thoroughly explored and confirmed according to JORC standards.

The Project is earmarked high priority for state and economic relationship between Russia and Zimbabwe. The Intergovernmental agreement has been signed in support of the Project by both Russian and Zimbabwean governments. Moreover, the Special mining lease and the National project status have been granted to Project which fix significant preferences and benefits in accordance with the Zimbabwean law.

Ziyambi fails to justify Hwange Colliery reconstruction, bid dismissed

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Justice Minister Ziyambi Ziyambi’s bid to put Hwange Colliery under reconstruction hit a snag after the High Court dismissed the move.

Justice David Mangota ruled that Ziyambi failed to justify his move given that a scheme of arrangement which was ratified by the government and other shareholders with a view to salvaging the coal mining firm from collapse, was still operational.

Ziyambi approached the court with the application without consulting other shareholders, saying the problems afflicting the company needed swift action to avert possible liquidation.

In 2018, Ziyambi told the Parliamentary Portfolio Committee on Mines chaired by Norton legislator Temba Mliswa that the company owed government $150 million and had posted a $23 million loss in the half year to June of the same year.

He then said as Justice minister, the law empowered him to put any company under reconstruction without consulting other shareholders if necessary. But his move was opposed by a trustee of the debenture holders of Hwange and chairman of the court-sanctioned scheme of arrangement, Andrew Lawson and a legal entity called Messina Investments.

Lawson and Messina submitted before Justice Mangota that the reconstruction order sought by Ziyambi was nothing, but a weapon which Mines minister Winston Chitando, had hatched to remove them from Hwange’s board after they had proposed to conduct a forensic audit of its operations.

Lawson and Messina claimed, government through Ziyambi’s sought order, was to run Hwange alone to the exclusion of its other co-owners and as such the application was ill-conceived.

In his lengthy judgment delivered on February 12, Justice Mangota said: “In the absence of a written report from, or by, the Mines and Mining Development ministry, therefore, the minister appears to have issued the order out of nothing.”

Justice Mangota said Ziyambi ought to have proved what he claimed to have been in existence when he issued the reconstruction order.

“He makes allegations about Hwange’s unwholesome circumstances. He should prove what he claims to have been in existence when he issued the order. His failure to prove the presence, in his mind, of the matters which are mentioned in section 4(1) of the Reconstruction Act places his application for confirmation of the order in serious jeopardy,” Justice Mangota said.

In his submission, Ziyambi had presented that his decision was based on section 4(1)(e) of the Reconstruction Act, adding that: “It stipulates that when you do that, you have to inform shareholders and that if in the opinion of the minister it is necessary to avert further harm to creditors of the company, then the minister can take action to put the company under reconstruction without affording shareholders a chance to respond, and I decided to do that at that stage.”

But Justice Mangota ruled against him saying: “The application, it has already been shown, hangs on nothing, the order which the minister issued is premised on nothing. The report of the administrator which was made in glowing terms cannot justify confirmation of the order the issuance of which was/is based on nothing.”

Government increases mining fees

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The government has revised upwards mining fees. The notable increase is an ordinary prospecting license which was at 200zwl has been increased to 1000zwl. Special grant increased to  zwl5000. Application for an EPO now at zwl 10000.

Please see full document HERE

Chitando contempt case full documents

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Minister Chitando was yesterday found in contempt of the High Court and sentenced to 90 days in prison. However, High Court judge, Justice David Mangota gave the minister seven days to comply, failure of which he will serve the full jail term.

The court ordered the minister to ensure the transfer of ownership of some mining claims from North Rand into the name of RioZim, but he did not comply.

Below are the full court documents as first shared by Professor Jonathan Moyo.

Chitando Court Documents Chitando Court Documents Chitando Court Documents

Police Officers Among Arrested Mashurugwi – ZRP

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AN undisclosed number of police officers are among 2 852 people who have been arrested for illegal gold mining or being part of the machete-wielding gangs, police spokesperson Assistant Commissioner Paul Nyathi has said.

He was speaking on the sidelines of a media training on community reporting organised by the Zimbabwe Union of Journalists (ZUJ) Wednesday in Harare.

“We have had arrests in Jumbo, Mazowe and Shamva of illegal artisanal miners. I admit we have arrested (police) officers at Jumbo, the law will take its course,” said Nyathi.

“The Home Affairs Minister has said it before and I repeat – if there is a police officer who is involved in mining activities, they must stop because they will be arrested and eventually lose their jobs.”

A high number of cops, correctional services officers and soldiers have been implicated in cases of illegal gold mining across the country.

Nyathi referred queries on whether they had also arrested any members of the military or Prison Service to respective spokespersons.

“I cannot comment on behalf of the Zimbabwe National Army (ZNA) and Prisons, you will have to call them respectively.”

This week, 13 police officers, including a chaplain, were arrested after allegedly trying to extort cash from illegal miners they had been sent to arrest in Chakari, Mashonaland West.

Commonly referred to as Mashurugwi, the machete wielding gangs have been terrorising innocent citizens in mining communities and surrounding towns where they have robbed, maimed, raped and killed for gold claims, gold ore and money.

On Tuesday, police arrested 319 illegal miners in Odzi, Manicaland province in the ongoing clampdown.

 

NewZimbabwe

Caledonia Mining says 2019 earnings will be ‘substantially higher than market expectations’

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Caledonia Mining Corporation says earnings for 2019 will be “substantially higher” than forecast on firmer gold prices, higher than expected output and costs that were lower than projected.

The Toronto-listed company runs the Blanket gold mine near Gwanda.

“As a result of these factors, adjusted earnings per share (before net realised and unrealised foreign exchange gains) for 2019 are expected to be in the range of US$1.55 to US$1.75 per share compared to company guidance in early 2019 of US$0.86 to US$1.17 per share,” Caledonia says in an update.

Earnings per share on an IFRS basis, which includes net realised and unrealised foreign exchange profits, is expected at US$3.80 to US$4.00 per share. Full year earnings results for 2019 are expected in March.

“I am delighted by the excellent performance of the Blanket Mine, particularly in the latter stages of 2019, which, combined with the strength of the gold price, has resulted in us comfortably exceeding expectations for the year ended December 31, 2019,” says Steve Curtis, Caledonia CEO.

“This is down to the hard work and dedication of our exceptional team operating at the Blanket Mine not least in how they have successfully addressed challenges in the year such as the variable power supply and grade fluctuations. With these challenges addressed, an excellent start to 2020 and with the development of the Central Shaft continuing on time and record quarterly production in the fourth quarter, we look forward to an exciting year ahead.”

Caledonia Mining Plc@CaledoniaMining

Always a pleasure to welcome shareholders and potential investors to the Blanket Mine

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Turnaround

The higher-than-forecast earnings would be a turnaround for Caledonia, which mid-last year had to cut production guidance for 2019 to between 50,000 and 53,000 ounces, down from previous forecasts of 53,000 to 56,000 ounces.

However, the company managed a rebound in the last quarter of 2019, when Blanket produced 16,876 ounces, beating the previous production record of 16,425 ounces set in the final quarter of 2017.

The company expects to commission a new central shaft in the last quarter of 2020, which is expected to ramp up production to 80,000 ounces per year.

Blanket mine installed generator power with 18.5MW capacity and has floated a tender for the building of a 20MW solar plant to power up operations.

 

NewZwire

ZPC misses annual output target

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Reduced water levels at Kariba dam and constant breakdowns at the Hwange Thermal power station saw the Zimbabwe Power Company (ZPC) miss its 2019 output target by 17 percent.

Kariba dam is home to Zimbabwe’s largest hydro-power stations, which has capacity to produce 1 050 Megawatts, but is currently generating electricity at reduced levels due to critically low water levels following the drought experienced in the catchment area of its main feeder rivers.

“In 2019, ZPC sent out 7445.18 GWh for the period spanning January to December 2019 against a target of 8973.53GWh,” the ZPC said.

“We missed the set annual target by 17.03 percent. This is attributable to the depressed generation at Kariba, following the decreased water allocation by the Zambezi River Authority due to low water levels caused by lower than average inflows into the dam from the 2018/2019 rainy season.

“The situation was also magnified by the constant breakdowns at Hwange and the subsequent postponement of Hwange Unit 3 major overhaul. This led to a prolonged period of load shedding spanning 18 hours a day in the worst instances.”

The company, however, said despite operational challenges it was exploring ways to improve the power supply situation, for example by refurbishing existing power plants and extending their lifespan.

“Part of the funding for refurbishment of stage 1 at Hwange has since been secured and we are looking forward to commencing the exercise in 2020. We are looking forward to implementing Plasma Ignition Technology which shall increase efficiency of our power generation and reduce the need for use of large quantities of diesel. The Procurement Regulatory Authority of Zimbabwe has since given a no-objection to the awarding of the tender and the contract was duly signed and is now in the Conditions Precedence satisfaction period,” it said.

The ZPC said the 600 MW Hwange expansion project was proceeding well and was on course for completion by end of January 2022.

“Works that are currently in progress include design reviews, employees’ accommodation construction, site temporary works, excavations, superstructures construction, and transmission works.

“There are also offsite works currently in progress, including the manufacturing of turbines and generators for both units which are being done in China. Delivery of turbine for Unit 7 is expected in January 2020 while for Unit 8 delivery is expected in March 2020. A team will visit China for tests on the generators,” the company said.

New Ziana