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Alrosa to mine upper levels of International mine

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Alrosa to mine upper levels of International mine

Russian diamond miner Alrosa has received regulatory approval to open up and develop reserves at the upper horizons of the International underground mine.

Alrosa received the approval from Russia’s regulatory body Glavgosexpertiza.

The International underground diamond mine is located 16km south-west of the town of Mirny in Russia.

It produced 2.2 million carats of diamonds last year, contributing 6% of the company’s total output.

According to the company, production from the mine is expected to start in the fourth quarter of this year.

Alrosa noted that the first stage of production suggested mining at the depth of 200m to 560m.

In the second stage, the extraction will be carried from 155m to 200m depth, at the deep horizons of the deposit.

Alrosa First Deputy CEO and COO Igor Sobolev said: “This year we start a planned development of the upper horizons of the Inter underground mine. This project has been included in all production and investment plans and it allows developing all commercial reserves of the deposit in a completely safe way. The company has already built the third, 347.4 m long shaft to extract these reserves.

“The ore from the upper horizons to be received as early as in 4Q 2020 with the capacity gradually increasing in coming years. We expect to mine these reserves for about 10 years”.

In the year 1999, underground mining began at the International kimberlite pipe.

In June this year,  Alrosa announced that operations restarted International mine after it has been suspended for a while as several employees tested positive for Covid-19.

In May, Alrosa had to suspend production at the Aikhal underground mine and the Zarya open pit mine due to the drop in demand and sales caused by the Covid-19 pandemic_Mining Technology

Oil firm licence, permit extended

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Oil firm licence, permit extended

Invictus Energy, the Australian junior mining firm exploring for oil and gas in Muzarabani, says its investment licence has been renewed and the special grant for the prospective area extended by a further three years.

This comes as Invictus Energy is preparing to bring contractors (farm-in partners) on site, possibly early next year to start the process of actual exploration by drilling holes after completing extensive secondary data analysis.

Expectations are that non-binding agreement for the farm-in contract could be in place by end of this year and the binding agreement may be signed sometime next year.

The Australia Stock Exchange (ASX) listed firm said it had received approval from the Zimbabwe Investment and Development Authority (ZIDA) for extension of its investment licence to operate in the country.

ZIDA is the country’s premier investment promotion body set up by Government to promote and facilitate both foreign direct investment (FDI) and local investment in Zimbabwe.

“The investment licence provides formal recognition of the company as a foreign investor in the country and enables it access to a range of fiscal benefits and incentives,” Invictus said.

Geo Associates, the company’s 80 percent owned subsidiary and holder of Special Grant 4571, said it had received notification that its application to extend the tenure of the special grant licence for Muzarabani by a further three years has been granted.

Invictus, however, said this was subject to Geo Associates appearing before Zimbabwe’s Mining Affairs Board to present an overview of the forward work programme.

“The presentation to the Mining Affairs Board by Geo Associates was scheduled for last week, but has been deferred due to Covid-19 and the enforced lockdown in the country.

“As a result of the meeting being deferred, the Mining Affairs Board has requested a soft copy of the presentation and confirmed that the formal presentation will occur at a future date,” said Invictus.

Invictus said Geo Associates had confirmed that the soft copy presentation had been lodged with the Mining Affairs Board and that the company had fulfilled all of its work commitments for its first three-year exploration period.

“A comprehensive work programme has been proposed for the second three-year exploration period, including a commitment to drill a minimum of one exploration well. The company will provide further updates as appropriate,” Invictus said.

The ASX listed oil and gas company said this week it had issued 11.8 million Class A and Class B shares to directors Scott MacMillan and Stuart Lake, subject to shareholder approval and attainment of key performance milestones.

Invictus said that it was at an important stage of development with significant opportunities and challenges in both the near and long-term and the proposed issue seeks to align the efforts of the directors in seeking to achieve growth of the share price and the creation of shareholder value.

Essentially, the performance milestones are defined by agreements for exploration and drilling for oil and gas on the Muzarabani prospect and the firm’s stock reaching a certain level of share price performance.

The successful discovery of oil and gas in the Cahorra Bassa Basin of Muzarabani will be a game-changer for Zimbabwe in terms of job creation, energy self-sufficiency, growth of downstream industries, exports and development.

Invictus is at a stage where it is also in discussions with the Government for production sharing agreement and the crafting of legislation that fills voids in the current petroleums Act.

Oil and gas can be major contributors to national gross domestic product accounting for almost entire national budgets in countries like Angola, Saudi Arabia, Libya, Venezuela, Iran, Iraq and the UAE_Business Weekly

Target incentives for INVICTUS oil project

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Target incentives for INVICTUS oil project

INVICTUS Energy, the Australia listed junior miner developing Zimbabwe’s potential maiden oil and gas mine, has offered two key directors shares to incentivise their performance, as it seeks to navigate an important stage of the Muzarabani project development and growth of the company.

It is expected the successful discovery of oil and gas in the Cahorra Bassa Basin of Muzarabani will be a game-changer for Zimbabwe in terms of job creation, energy self-sufficiency, downstream industries, exports and development of the project area.

Working with Government, Invictus is at a stage where it is also in discussions with the Government for production sharing agreement and the crafting of legislation that fills voids in the current Petroleums Act.

Oil and gas can be major contributors to national gross domestic product accounting for almost the entire national budgets in countries like Angola, Saudi Arabia, Libya, Venezuela, Iran, Iraq and the UAE.

The Australia Stock Exchange (ASX) listed oil and gas company has since issued 11,8 million class A and B shares to directors Scott MacMillan and Stuart Lake, subject to shareholder approval and attainment of key performance milestones.

Invictus said was at an important stage of development with significant opportunities and challenges in both the near and long-term and the proposed issue seeks to align the efforts of the directors in seeking to achieve growth of the share price and the creation of shareholder value.

Essentially, the performance milestones are defined by agreements for exploration and drilling for oil and gas on the Muzarabani prospect and the firm’s stock reaching a certain level of share price performance.

“In addition, the board company also believes that incentivising Mr. Scott Macmillan and Dr. Stuart Lake with Performance Rights is a prudent means of conserving the Company’s available cash reserves.

“The board company believes it is important to offer these performance rights to continue to attract and maintain highly experienced and qualified Board members in a competitive market,” Invictus said.

The issue of the performance rights forms a part of the revised remuneration package agreed with each of Macmillan and Lake.

If shareholder approval for the issue of the performance rights is not obtained, and in the event the milestones are satisfied, the directors will be paid the equivalent value of the shares that would have vested at the point the milestones are met.

For instance,  MacMillan will receive cash payment of US$75 000 cash in lieu of shares for each of the class A and class B shares if the performance milestones are achieved.

“In addition, it has also been agreed that Mr. Macmillan will receive 10 percent of the total costs reimbursed to Invictus for sunk and historical costs, by a reputable partner, in connection with a binding farm-in agreement or non-binding farm-in agreement up to a maximum of US$250 000,” Invictus said.

The performance rewards will fall due upon company announcing the execution of the non-binding farm-in agreement on or before December 31, 2020, and the binding farm-in agreement, having been executed, becomes unconditional on or before June 30, 2021.

Binding farm-in agreement means a legally binding farm-in agreement between the company and a reputable partner in respect of the Cabora Bassa Project, which more fully reflects the terms of the non-Binding farm-in agreement.

The non-binding farm-in agreement” means a non-binding farm-in agreement between the company and a reputable partner, which provides for the indicative commercial terms for a farm-in agreement in respect of the Cabora Bassa Project (Muzarabani) and which provides for a commitment to drill at least one well on its Special Grant Permit 4571.

For Class B Share, the shares will or incentive pay will become vesting upon the company achieving the grant of the extension application on or before December 31, 2020.

With regards share price performance of Class A shares, the rewards will become vesting on the date the company achieves a volume-weighted average price (VWAP) of at least $0,045  (Australian dollar) over any twenty consecutive trading day period before December 31, 2020.

For Class B shares, the rights will take effect upon the company achieving a VWAP of at least $0,045 over any twenty consecutive trading day period before December 31, 2020.

The Cabora Bassa Project encompasses the Mzarabani Prospect, a multi-trillion cubic feet and liquids-rich conventional gas-condensate target, which is potentially the largest, undrilled seismically defined structure onshore Africa_Business Weekly

Cabinet approves fuel partner search

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Cabinet approves fuel partner search

Zimbabwe is seeking an established global petroleum giant to partner the merged entity of three state-owned fuel retailers, Business Weekly can reveal.

Last year, the Cabinet approved the merger of Petrotrade and Genesis, subsidiaries of the National Oil Company into fuel retailing business, as well as CMED Fuels.

Thereafter, the consolidated entity is to be privatised through strategic partnerships.

In a recent update on restructuring of state-owned entities, the Treasury said the identification of a partner has already been approved by Cabinet.

“Already, a proposal towards the identification of a potential strategic player in the petroleum oil industry, has been approved by Cabinet,” said the Treasury.

CBZ and Manokore were initially appointed as transaction advisors. However, the technical committee recommended cancelation of the tender because of the high fees.

Under the proposals, Petrotrade and Genesis Energy, together with CMED’s fuel retail component, will be merged to enhance the resultant entity’s value, attractiveness and competitiveness ahead of negotiations with prospective strategic partners.

Government intends to sell its shareholdings in several entities as it seeks to improve efficiency and lessen spending pressures on the budget. Zimbabwe either partly or wholly owns 92 companies, most of which have been making losses for years largely due to mismanagement. Poor corporate governance has also been partly blamed for keeping potential investors away.

However, Finance and Economic Development Minister professor Mthuli Ncube, recently said the majority of public enterprises are now upholding good corporate governance standards in line with Public Entities Corporate Governance Act.

Citing an unnamed survey, Prof Ncube said 80 percent of public enterprises were now providing annual reports to the shareholder.

Previously, some state-owned companies would take several years without holding annual general meetings or reporting financials. Some of the entities the government is seeking to reduce its stake include telecommunications companies, NetOne, TelOne and Telecel. The Government is seeking equity partners for the national airline, Air Zimbabwe and the Zimbabwe Iron and Steel Company.

 

Business Weekly

RBZ loses gold forex retention war

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RBZ loses gold forex retention war

The Reserve Bank of Zimbabwe (RBZ) has caved in to demands from small scale gold producers giving them the greenlight to retain 100% of their foreign currency receipts among a raft of measures to plug leakages amid low gold deliveries.

Gold producers have been besieging RBZ so that they are allowed to retain all of their receipts after miners were told to retain 70% of the proceeds from 55%.

Gold is the single largest foreign currency earner. But deliveries dropped by nearly half in July to 1.406 tonnes from 2.776 tonnes extracted during the same period last year. RBZ through its subsidiary Fidelity Printers and Refiners (FPR) reviewed forex retention threshold to 70% from 55% but deliveries continued to fall.

FPR general manager Fradreck Kunaka told Business Times that low gold deliveries to Fidelity prompted them to come up with a raft of measures to encourage deliveries to formal channels and arrest rampant smuggling.

“Small scale miners are receiving 100% US$ cash payment while primary producers are entitled to 70% foreign currency retention and 30% in bank transfer,” Kunaka said.

He said gold prices are now benchmarked against the London Bullion Market Association (LBMA).

“As from July 17, 2020, payment method was reviewed from paying flat amount of US per gram to 100% United States dollar payment benchmarked against the prevailing LBMA price to encourage gold miners to sell using formal channels and shun black market as well as smuggling,” he said.

Last year, FPR initiated investigations on registered gold buying agents amid indications of rampant black market dealings, which could have prejudiced Zimbabwe billions of dollars.

A situation which experts described as illogical since the primary miners will use small scale miners to get 100% forex payment.

As at August 14, 2020 prices averaged above US$53 per gramme, a situation which FPR believes will attract more miners to come through.

From a total of 1.406 tonnes delivered in July, 0.747 tonnes came from small scale miners and primary producers managed to deliver 0.658 tonnes.

Cumulative deliveries to date have gone down 20% to 12.003 tonnes from 15.070 tonnes due to unfavourable mining policies and effects of the coronavirus which thwarted many miners to buy consumables due to lockdowns in other countries. Last year, over 34 tonnes were smuggled to neighbouring countries, according to Finance minister Mthuli Ncube.

In 2019, gold export receipts fell 28% to US$946m from US$1.33bn, leaving the country with limited forex generators as tobacco also fell 7% to US$846.7m from US$907.8m in 2018. With limited credit lines, Zimbabwe is mainly dependant on gold and tobacco for forex.

Given that the first seven months of the year have passed, the authorities are afraid that the 35-tonnes mark will be missed for the second year running. Gold Miners Association of Zimbabwe chief executive Irvine Chinyenze said for the first time the central bank has walked the talk on small scale miners’ forex retention. “That is what we have been yearning for all these years, finally the central bank has delivered. It is always good to be paid at the world market prices,” Chinyenze said.

The government is forecasting a US$12bn mining sector by 2023 and expects gold to take charge with US$4bn export earnings_Business Times

Chinese mine, workers’ wage dispute turns violent

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Chinese mine, workers’ wage dispute turns violent

A Chinese coal mining company with claims in Hwange has come under fire from workers who have accused the firm of exploiting them without pay.

It has emerged about 200 workers employed by Chilota Mine, co-owned by some locals and Chinese, have been at loggerheads with the company over unpaid salaries dating back to few years.

The wage dispute recently spilled into the Labour Court where the firm was ordered to pay up the workers.

However, instead of implementing the court order, the company allegedly did not pay, resulting in some five employees reportedly confronting management over their dues.

Amounts owed to employees could not readily be established.

NewZimbabwe.com has it on good authority that five of the workers were recently fined at Hwange Police Station for unlawful use of a vehicle in violation of the Road Traffic Act.

This was after one of the Chinese managers reported a case of theft of a motor vehicle to police against the five who had driven the company car to file a report against victimisation by some company managers.

An admission of guilt fine ticket for one the workers Thabani Tshuma of Lwendulu village seen by this publication show that he was fined $500 on July 29 for unlawful use of a motor vehicle.

He claimed accomplices were also fined similar amounts.

“The workers once took the company to the Labour Court which ordered that it (company) pays them,” said a company source.

“Five workers recently confronted a Chinese manager and in the process, they drove to the police station in a company vehicle intending to file a report.

“However, when they got there the Chinese had already phoned the police filing a report of theft of his vehicle.

“When the workers got there, they were arrested for unlawful use of a vehicle and each was fined $500.”

The mine is one of the many contracted to mine in Hwange Colliery Company concession.

Local shareholders own about 83 percent of shares in the mine with the remainder owned by Chinese, who were roped in some five years ago when the struggling mine once suspended operations due to viability challenges emanating from subdued production, working capital constraints and contractual disagreements.

The local shareholders hunted for a foreign investor to help the mine venture into underground mining, with production then around 40 000 tonnes per month.

There have been numerous complaints about harassment of workers by Chinese at the Hwange mines with most of the cases not dealt with_NewZimbabwe

Fidelity gold buying prices Wednesday 19 August 2020

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Fidelity gold buying prices Wednesday 19 August 2020

Fidelity Printers and Refiners official gold buying prices Wednesday 19 August 2020.

SG 90% AND ABOVE $57.80/g
SG ABOVE 85% BUT BELOW 90% $56.83/g
SG ABOVE 80% BUT BELOW 85% $55.54/g
SG ABOVE 75% BUT BELOW 80% $54.89/g
SAMPLE BELOW 10g BUT ABOVE 5g $56.18/g
FIRE ASSAY CASH $57.80/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

Chinese-Zim owned mine under fire over unpaid salaries

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Chinese-Zim owned mine under fire over unpaid salaries

A Hwange based Chinese-Zim co-owned local coal mining company has come under fire from workers who have accused the firm of exploiting them without pay.

It has emerged about 200 workers employed by Chilota Mine, co-owned by some locals and Chinese, have been at loggerheads with the company over unpaid salaries dating back to a few years.

The wage dispute recently spilled into the Labour Court where the firm was ordered to pay up the workers.

However, instead of implementing the court order, the company allegedly did not pay, resulting in some five employees reportedly confronting management over their dues.

Amounts owed to employees could not readily be established.

A local publication has it on good authority that five of the workers were recently fined at Hwange Police Station for unlawful use of a vehicle in violation of the Road Traffic Act.

This was after one of the Chinese managers reported a case of theft of a motor vehicle to police against the five who had driven the company car to file a report against victimisation by some company managers.

An admission of guilt fine ticket for one the workers Thabani Tshuma of Lwendulu village seen by this publication show that he was fined $500 on July 29 for unlawful use of a motor vehicle.

He claimed accomplices were also fined similar amounts.

“The workers once took the company to the Labour Court which ordered that it (company) pays them,” said a company source.

“Five workers recently confronted a Chinese manager and in the process, they drove to the police station in a company vehicle intending to file a report.

“However, when they got there the Chinese had already phoned the police filing a report of the theft of his vehicle.

“When the workers got there, they were arrested for unlawful use of a vehicle and each was fined $500.”

The mine is one of the many contracted to mine in Hwange Colliery Company concession.

Local shareholders own about 83 percent of shares in the mine with the remainder owned by Chinese, who were roped in some five years ago when the struggling mine once suspended operations due to viability challenges emanating from subdued production, working capital constraints and contractual disagreements.

The local shareholders hunted for a foreign investor to help the mining venture into underground mining, with production then around 40 000 tonnes per month.

There have been numerous complaints about harassment of workers by Chinese at the Hwange mines with most of the cases not dealt with. NewZimbabwe

Lockdown slows Blanket Mine Central Shaft project

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Lockdown slows Blanket Mine Central Shaft project

MATABELELAND South-based gold mining company, Blanket Mine, says equipping of its Central Shaft has been slower than anticipated due to the adverse impact of Covid-19.

The development is likely to shroud production guidance for next year and beyond with uncertainity, the company said. Blanket Mine’s production guidance is anticipated at 75 000 ounces (oz) next year before reaching 80 000oz in 2022 and beyond.

Despite the negative impact of Covid-19 on equipping of the Central Shaft at Blanket Mine, the mining entity remains focused on this year’s production guidance of between 53 000oz and 56 000oz.

Last year, Blanket Mine, which is owned by Caledonia Mining Corporation, announced that it had completed a US$44 million Central Shaft sinking programme and was now working on equipping the shaft ahead of commissioning in the third quarter this year.

In a commentary following the publication of Blanket Mine’s production update for the quarter and six months ended June 30, 2020, Caledonia chief executive officer Mr Steve Curtis said while the coronavirus pandemic had no appreciable effect on Blanket’s production in the quarter, its impact will be felt going forward.

“Work on Central Shaft has been slower than planned because several members of the supervisory team returned to South Africa when the lockdown started in late March . . . it is not possible to predict when travel and other restrictions will be lifted so that work can resume on the project as planned and it is likely the timetable for commissioning of the Central Shaft will be extended to an indeterminate extent.

“This may affect the anticipated build-up in production, which is currently expected to be 75 000 ounces of gold in 2021 and 80 000 ounces of gold from 2022 onwards but it is not currently possible to provide revised guidance,” he said.

Mr Curtis said in light of the improved performance and the brighter outlook for 2020 and beyond, Caledonia increased its quarterly dividend from 6,875 cents per share to 7,5 cents per share in January 2020.

At the end of June, in light of Blanket’s strong performance, the higher gold price and the return to normal levels of production including renewed access to supply chains, Caledonia increased its quarterly dividend further to 8,5 cents per share, which means the cumulative increase in the quarterly dividend in 2020 is 23,6 percent.

“The board will review Caledonia’s future dividend distributions as appropriate while considering the balance between delivering returns to shareholders and pursuing the significant growth opportunities within Zimbabwe and in line with a prudent approach to financial management,” he said.

Meanwhile, during the period under review, Caledonia recorded a 12,4 percent increase in gold ouput to 27 732 ounces compared to 24 660oz in the relative period last year_The Chronicle

Charges dropped against top Implats executive over lockdown

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Charges dropped against top Implats executive over lockdown

Criminal charges laid against Impala Platinum’s Rustenburg division for violating Covid-19 lockdown regulations in April have been withdrawn, the company said yesterday.

The charges, that led to the arrest of the chief executive of the firm’s Rustenburg operations, Mark Munroe, resulted from the platinum miner’s decision to recall employees to work in the early stages of the nationwide lockdown after the company applied for permission from the Department of Mineral Resources and Energy to ramp up operations.

As workers attempted to return to work, Munroe was told to present himself at a police station. He was later charged. He appeared in court on April 17 and was granted R60 000 bail.

Implats said on Tuesday in a statement the withdrawn charges “related to alleged contraventions, by its Impala Rustenburg division, of certain regulations of the Disaster Management Act 57 of 2020.”

“All criminal charges in the matter against Impala as represented by Mark Munroe have been withdrawn,” it said.

It added it is continuing to undertake operations in a “legally compliant and responsible way” and has taken several proactive steps to safeguard its business through the challenges and volatility associated with Covid-19, with a focus on saving lives. Munroe was the only top corporate executive to be arrested in connection with the flouting of Covid-19 lockdown regulations.

In April, industries across the country ground to a halt as government implemented strict measures to curb the spread of the virus.

As of yesterday, the virus has resulted in the deaths of 11 982 South Africans.

Under the initial Level 5 hard lockdown regulations, mining companies were directed to put their operations under care and maintenance, with smelters operating at reduced capacity.

The current minimum standards for health and safety in mines were also not in place during that time. In May, Implats announced that temporary shutdown of its Marula mine in Limpopo after a discovery of a “cluster” of infection.

A total of 132 mineworkers have died from the virus of as of 17 August, according to information provided by the Minerals Council. The North West platinum belt has seen the highest number of coronavirus infections and deaths among mineworkers.

According to the Minerals Council, which represents mining companies, there are currently 12 028 active cases of Covid-19 in the sector with 43 327 test conducted.

The sector has maintained that the high number of infections were due to its high testing rate. It says it has seen 11 256 recoveries.

The country yesterday moved to alert level 2 of the lockdown, which saw a further easing of restrictions. – news24.com

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