Mining ZimbabweLatest Mining News, Policy and Industry Updates

Fin24

Zimbabwe’s mine houses are considering going off grid to avoid crippling breaks in production, as the country continues to battle unstable power supply.

In 2019, Zimbabwe endured up to 18 hours of load shedding per day. At its peak, state power utility Zesa holdings escalated power cuts to 24 hours in December after losing regional power imports.

Erratic power supply was listed as one of the reasons why gold production in the southern African country slumped 20% to 27.6 tonnes in 2019 – down from 33.2 tonnes in 2018 – and short of a target of 40 tonnes.

Zimbabwe is experiencing crippling power shortages after its hydroelectricity source Kariba dam significantly reduced power generation due to receding water levels, which recently hit a 23-year low.

The other major energy source, Hwange thermal power station, is no longer reliable as its plants continuously break down due to old age and lack of adequate maintenance.

The two power stations are therefore not expected to produce at full capacity soon, with Kariba dam depending on water flows into the Zambezi River, while new units at Hwange are only expected to come on board in 2022.

Zimbabwe needs about 1 800MW at peak periods of demand but production falls far short of this level.

This has forced miners to consider own power generation, with one of the country’s biggest gold producers RioZim, last week applying to the Zimbabwe Energy Regulatory Authority (ZERA) for licences to build four solar power plants for each of its four mining operations, with a combined output of 214MW.

RioZim, formerly owned by Rio Tinto, has already signed a US$200 million agreement with Chinese firm, China Gezhouba Group International Engineering Corporation (CGGC), for the construction of three solar power plants at its mines.

Industrial and Commercial Bank (ICBC) of China has already signed up to provide 85% of the funding while Standard Bank will also make 15% contribution.

Meanwhile Toronto Stock Exchange-listed Caledonia Mining Corporation announced it wants to build a 20MW power plant at its Blanket mine near Gwanda.

Last week Caledonia’s CE Steve Curtis, in an interview with Proactive, expressed interest to develop a power hybrid system that will incorporate solar, grid and diesel power to improve performance at the mine, while achieving sustainability at the same time.

“During the day (it will be a) photo-voltaic generating plant. We will then use technology to create a hybrid system and we will save on diesel and on the US dollars we spend on our grid power,” Curtis said.

MARANGE: The state-owned Zimbabwe Consolidated Diamond Company (ZCDC) is set to increase its output this year after a slump in 2019 due to power outages.

Mine manager Innocent Guvakuva said last year the company failed to move eight million tonnes to the processing centre due to incessant power cuts and fuel shortages.

“We lost close to eight million tonnes of ore that we could have moved for processing, but due to erratic power cuts and fuel shortages it was not possible,” he said.

“Our machines can move 2 500 tonnes a day, but last year they spent most of the time idle. We have the equipment but there were other challenges that ensured that these machines were not working,” Guvakuva told journalists during a tour of Chiadzwa diamond fields last week.

ZCDC production tumbled to 1,6 million carats from 2,8 million due to myriad economic challenges, chief among them power cuts and fuel shortages.

To achieve their target, Guvakuva said, they have installed a 450 tonnes per hour plant and they were now on phase three where carat production is expected to increase.

“Our focus now is on the optimisation of the plant to make sure power is there whether from the grid or generators. Once we increase liberisation of diamonds the carat production goes up,” he said, adding, “by end of three months, phase three should be commissioned.”

Guvakuva told journalists that under phase three, a 5G X ray band machine used under world best practices will be installed to assist in diamond recovery.

Guvakuva said they are also investing in solar plants to complement power from the grid.

“Plans are there to set up a power plant. We are working on a feasibility study. We have also advertised and a consultant has been engaged in line with corporate governance systems,” said Guvakuva, adding that for full production there is need for a hybrid system which comprises of both solar and power from national grid.

ZCDC Acting Chief Executive Officer, Roberto De Preto also confirmed they had plans to install a solar farm to boost power.

He added that they were targeting about 3.2 million carats this year through procurement of two mobile crushing and recovery plants.

“The new crushers would increase capacity to about 650 tonnes per hour,” said De Preto.

In the absence of electricity, ZCDC consumes over 4 000 litres of diesel a day_NewZimbabwe.com

THE Zimbabwe Diamonds and Allied Workers’ Union (ZIDAWU) has added its voice to the growing calls for authorities to take tough action against machete-wielding gangs that have since invaded parts of Manicaland.

The gangs have invaded Mutare, Chimanimani, and Chipinge, known for their rich gold deposits.

The local courts are awash with fresh cases of violent crimes perpetrated by the machete-wielding gangs.

This has prompted ZIDAWU to disown the gangs and demand stern measures against them.

ZIDAWU chairman Mr. Cosmas Sunguro said the gangs’ operations posed a serious threat to national security.

“These gangs are very violent and do not value life at all. They have recently expanded their operations from remote mining areas to nearby towns, causing alarm and despondency.

“With Zimbabwe’s reputation as a country with best security forces in Africa, surely something stern has to be done before this degenerates into anarchy. ZIDAWU we can safely say that those involved in these atrocities are nowhere near gold miners, but are thugs and murderers,” he said.

“With the abundance of gold in Zimbabwe, surely there is no reason for one to slash a fellow miner to death. Moreso, using bullying tactics to siphon gold and other valuable properties from other miners,” said Mr Sunguro.

Mr Sunguro said ZIDAWU was worried about the growing numbers of victims.

Statistics for injuries and fatalities have risen to more than 200 since November 2019. The figures include soldiers and policemen who have fallen victims to the ruthless gangs.

Fears abound that the gangs have re-invaded the Chiadzwa diamond fields.

He said villagers near mining areas should not accommodate these violent gangs.

“We are also worried about the imminent and unforeseeable implications of these heinous acts. Miners and related people need protection for us to realise the intended multi-billion dollar mining industry by 2023

“The environment in the extractive mining industry has to be conducive for business otherwise it will remain a pipe-dream. Unfortunately, mining, apart from agriculture, has been the mainstay of the economy and any disturbance is likely to hamper our economic development as a nation. Given the above scenario, we encourage urgent action to be undertaken, lest we become submerged in violence and lawlessness,” said Mr Sunguro.

A machete-wielding gang last week invaded and caused mayhem at Redwing Mine.

The gang demanded land to mine gold and destroyed property worth thousands of dollars, leading to the arrest of four of them.

This week another armed group attacked a Chipinge farm and robbed the family of macadamia nuts worth a fortune.

They were eventually arrested.

The Manica Post

RAMPANT illegal gold mining activities in timber plantations in Chimanimani is still going unabated with artisanal miners leaving a trail of destruction in both the commercial forest areas as well as the environment, The Manica Post can reveal.

A recent visit to the area revealed a sad story of deep tunnels being dug in forests while rivers are not only diverted but also polluted as multitudes of artisanal miners excavate the red soils of Chimanimani in search of the precious mineral.

Water in the Nyabamba River near Roscommon Estate, a once stunning haven of globally endangered species of birds with imposing pine and tea plantations starting from its banks, is now bright red in colour due to soil and chemical residue contained in the waste after the panning processes.

Down in Rusitu village in Tarka Forest within Chimanimani district, a timber estate of hundreds hectares of prime timber owned by Allied Timbers has been damaged to make way for the illegal mining.

Chief executive of the Timber Producers Federation Mr Darlington Duwa warned of lasting damage as a result of the disappearing forests and water pollution caused by illegal mining.

“It (illegal mining) reduces the timber resource, thus affecting direct and indirect employment, economic development, foreign currency earnings and leads to environmental degradation and reduced resilience to climate change effects.

“In some areas illegal miners (settlers) uproot young trees that have been planted,” Mr Duwa said.

“At this rate, the industry is bound to suffer irreversible damage.”

Chimanimani Tourism Associ- ation vice chairperson Mr Collen Sibanda lamented the effects of illegal mining and its effects not only on timber plantations but the generality of flora and fauna.

“It is sad that people want quick returns and they engage in illegal gold mining.

“This is happening at the expense of timber plantations here in Chimanimani and also the indigenous forests that used to provide the much needed cover to our land.

“As people of Chimanimani, we are crying out that let the economy of the district stand on all legs and that is tourism, timber production and mining.

“We really want mining but it has to be organised and mindful of its environmental consequences.

There have been a number of deaths in different areas around the villages in Chimanimani owing to water-borne diseases and even though data has not been formally collected, suspicion is rife that contamination of water by illegal panners was a major contributor.

“We strongly believe that consumption of water downstream is leading to ailments and in some cases deaths simply because the water is no longer safe for drinking as artisanal miners have mixed it with several chemicals during their operations,” said Mr Sibanda.

Security forces have often carried out sporadic raids in different parts of Chimanimani where illegal mining is rmpant but facts on the ground suggest that this has not deterred artisanal miners from flocking the gold-rich area.

Manicaland police spokesperson Inspector Tavhiringwa Kakohwa said they remained resolute in keeping artisanal miners at bay and to that end the law enforcement agents would keep on carrying out sporadic raids.

“We have been carrying out raids in different parts of Chimanimani and the Eastern Highlands at large where artisanal miners operate illegally. Yes, there has been resistance since we always see the artisanal miners returning to the same areas.

“However, we will keep on raiding those areas until sanity prevails. We want people to do the right thing and formalise their operations for the benefit of the economy,” said Inspector Kakohwa.

Manica Post

BULAWAYO High Court judge, Justice Martin Makonese, has sentenced a gold panner to 18 years in prison for stabbing his cousin twice on the chest with a knife in a fight over gold ore at Arizona 74 Mine, Matobo in Gweru.

Passmore Musanika (28) of Nemangwe Village, Gokwe South, appeared before Justice Makonese who is sitting at the Gweru High Court Circuit, facing one count of murder.

Musanika pleaded not guilty to the charge.

He was, however, convicted of murder with actual intent after a full trial and was sentenced to 18 years in prison.

Justice Makonese said Musanika deserved a lengthy prison stay but had been in custody since his arrest in August 2018 as the key State witnesses were not being found.

“There has been a surge in murders in the mining communities and it is the courts’ duty to pass lengthy custodial sentences to deter would-be offenders,” he said.

Prosecutor Mr. Mirirai Shumba told the court that the now deceased Jaison (34), was Passmore’s cousin who also stayed in the same village as the accused.

On August 27, 2018 at around 4PM at Arizona 74 Mine, Matobo, Gweru, Mr. Shumba said, Jaison was in the company of his cousin Hardlife on their way to the shops.

The court heard that the accused person approached Jaison and accused him of having stolen his gold ore.

Mr. Shumba said a misunderstanding then ensued between the two.

The Chronicle

KUSILE Rural District Council (KRDC) in Lupane is calling on the Government to revoke mining licences of three prospective investors for taking long to kick-start their energy resources projects.

KRDC chairperson Councillor Fibion Ngwenya told Sunday News Business last Wednesday that the local authority was in the process of engaging the Government through the Ministry of Mines and Mining Development to consider forfeiting licences of two firms, which were given Special Grants to explore and exploit for coal and another one for coalbed methane gas as they have taken long to start operations.

The three companies, namely China Africa Sunlight Energy, Liberation Coal Mining and Discovery Investments are part of the 20 entities, which were awarded a Special Grant by the Government to explore and extract coal and coal bed methane gas in the Hwange-Lupane area in 2010.

“We have three mining companies that had indicated to start operations within our area of jurisdiction and these are China Africa Sunlight Energy, Liberation Mining and Discovery Investments. There is nothing going on at their concessions and to make matters worse these companies haven’t been paying levies to the council claiming that they are still to start operations thus they are not obliged to pay. 

“We, however, think that these companies don’t have the capacity to run these mines and are probably holding onto them for speculative purposes and therefore we are calling on the Ministry of Mines to cancel their licences. During our meeting with the President (Emmerson Mnangagwa) he had assured us that such mines who fail to pay levies to local authorities won’t have their licenses renewed but that hasn’t been implemented yet,” said Clr Ngwenya.

China Africa Sunlight Energy and Liberation Coal Mining’s concessions are located in the Gwayi area. Apart from extracting coal China Africa Sunlight Energy had indicated that it would inject more than US$1 billion for the construction of a thermal power station. Discovery Investments seeks to extract coalbed methane gas within its Special Grant situated at Mzola and Dandanda communal areas.

The company was issued with an Environmental Impact Assessment certificate by the Environmental Management Agency in 2015 to start setting up its infrastructure in preparation to start harnessing the methane gas at its concession. The gas has an estimated lifespan of about 50 years. The three mining firms are reported to be owing the local authority over $500 000 in levies.

“Their failure to pay levies is affecting our revenue collection initiatives and it impacts negatively on our yearly budget as we will have factored the funds we are entitled to get from them. We are now planning to have our own concessions and seek investors to partner us to harness these natural resources at our disposal,” said Clr Ngwenya.

Local Government and Public Works Deputy Minister Marian Chombo said there was an agreement which the ministry reached with the Ministry Mines and Mining Development whereby miners’ mining licences would not be renewed without proof of them having paid their levies to local authorities.

“There is an agreement between the Ministry of Mines and that of Local Government that whenever a local mining company wants to renew their permit or licence they have to produce clearance from a local authority. If they don’t do that, they have to clear up the arrears with the local authority first and that will bring us a little bit of revenue for the local authorities to be more viable,” she said.

A comment from the Minister of Mines and Mining Development Wiston Chitando or his Deputy Polite Kambamura could not be obtained by the time of going to press.

The Sunday News