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Caledonia sells shares

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Caledonia sells shares

Gwanda based Gold producer Caledonia Mining, the 49%-owner of the Blanket gold mine in Zimbabwe, has entered into a sales agreement which will allow the company to raise proceeds to fund the construction of a solar power plant to supply electricity to the mine.

The solar power plant will create a more stable and reliable power source for operations, which is an important step towards preventing the loss of downtime and further de-risking the project.

The proposed solar project will supply approximately 30% of the Blanket mine’s total electricity requirements across a 24 hour period, including the evenings. The company has received a generating licence and the necessary approvals from the Zimbabwe Investment Authority and has shortlisted contractors for the solar project.

Under the sales agreement with Cantor Fitzgerald & Co, Caledonia Mining may sell up to US$13 million worth of shares.

Any sales of shares would occur by means of ordinary brokers’ transactions or block trades, with sales only being made on the NYSE American at market prices.

Cantor, acting as a sales agent, may conduct sales for the benefit of Caledonia Mining should the company elect to initiate a transaction or transactions, dependent on market conditions and such other terms as the Company may specify.

It is possible, and indeed likely, that multiple transactions could be effected under the at-the-market sales agreement over time.

Mining Review Africa

Fidelity gold buying prices 22 July 2020

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Fidelity gold buying prices 22 July 2020

Fidelity Printers and Refiners official gold buying prices Wednesday 22 July 2020

SG 90% AND ABOVE $53.01/g
SG ABOVE 85% BUT BELOW 90% $52.13/g
SG ABOVE 80% BUT BELOW 85% $50.94/g
SG ABOVE 75% BUT BELOW 80% $50.35/g
SAMPLE BELOW 10g BUT ABOVE 5g $51.53/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

Fidelity gold buying prices 21 July 2020

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Fidelity gold buying prices 21 July 2020

Fidelity Printers and Refiners official gold buying prices Tuesday 21 July 2020

SG 90% AND ABOVE $52.24/g
SG ABOVE 85% BUT BELOW 90% $51.36/g
SG ABOVE 80% BUT BELOW 85% $50.20/g
SG ABOVE 75% BUT BELOW 80% $49.61/g
SAMPLE BELOW 10g BUT ABOVE 5g $50.78/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

ALROSA Zim begins diamond prospecting

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ALROSA Zim begins diamond prospecting

A joint venture between ALROSA and Zimbabwe Consolidated Diamond Company (ZCDC) ALROSA (Zimbabwe) Limited (ALROSA Zim), began prospecting and preliminary exploration works for primary diamond deposits.

After getting Special Grants from the Ministry of Mines and Mining Development, ALROSA Zim has the Environmental Impact Assessment (EIA) approved by the Environmental Management Agency (EMA) and is set to commence prospecting and exploration in Masvingo, Matebeleland South and Matebeleland North provinces of the Republic of Zimbabwe.

In July 2020, ALROSA Zim’s geologists to start geochemical sampling, trenching and pitting in Malipati zone, with ground geophysical surveys to follow. Towards the end of the year, the same prospecting operations, including airborne geophysical surveys to be conducted in the Maitengwe area.

Bulk sampling and drilling to commence in 2021.

‘Following the signing of a joint venture agreement with ZCDC to develop diamond deposits in Zimbabwe in December 2019, we are progressing well towards the initiation of the full-scale prospecting works this year. Being a member of Responsible Jewellery Council, World Diamond Council and Natural Diamond Council, ALROSA complies in full with all industry commitments on responsible business practices and its own corporate standards. ALROSA is committed to following these principles strictly while working in the Republic of Zimbabwe, minimizing adverse environmental impact in all areas of activities and using mineral resources comprehensively and rationally’, said Vladimir Marchenko, ALROSA Deputy CEO.

ALROSA’s investments in Zimbabwe for 2020-2022 are expected to reach $12 million.

According to the shareholder agreement and a JV establishment agreement, ALROSA has 70% of ALROSA (Zimbabwe) Limited JV, while Zimbabwean state-owned diamond mining company’s share is 30%. The joint venture focuses on prospecting, exploration and, in case of success, mining of primary diamond deposits in the Republic of Zimbabwe.

Market screener

ZDAMWU joins IndustriALL Global Union

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ZDAMWU joins IndustriALL Global Union

THE Zimbabwe Diamond and Allied Workers Union (ZDAMWU) has been admitted to the Switzerland-based IndustriALL Global Union (IndustriALL), becoming the seventh union from Zimbabwe to be affiliated there.

By Dumisani Nyoni

The decision to admit ZDAMWU to be part of the global union was reached at the organisation’s executive virtual meeting held in Geneva on the 17th of June this year.

In a statement following the admission of ZDAMWU, IndustriALL general secretary Valter Sanches said: “I am happy to inform you that the executive committee, at its virtual meeting, held in Geneva on the 17th of June 2020, approved your request for affiliation to IndustriALL Global Union.”

IndustriALL represents 50 million workers in the energy, mining, and manufacturing industries organized by 700 unions in more than 140 countries around the world.

The global union federation is taking up the fight for better working conditions and trade union rights around the globe challenging the power of multinational companies and negotiating with them at that level on a win-win situation.

“We are fighting for another model of globalisation and a new economic and social model that puts people first, based on democracy and social justice,” Sanches added.

He said his organisation was looking forward to working closely with ZDAMWU in their global struggle to build union power through organising and growth, defending trade union rights, confronting global capital, fighting against precarious work and ensuring sustainable industrial employment.

Accepting the admission to IndustriALL, ZDAMWU general secretary, Justice Chinhema said the union will use the opportunity to explore and share experiences with other unions under the IndustriALL banner to develop and strengthen its capacity to recruit and organise more members in the mining industry in Zimbabwe.

“Our union is currently seized with organising new members, who for a long time have been given a raw deal by predecessor unions. We are rolling our organising and education programmes as a way of strengthening union power,” he said.

“We seek to build solidarity and create networks with alike organisations at national, regional, and international levels,” Chinhema said.

ZDAMWU has become one of the fast-growing unions in the mining industry with a membership of over 6 000 and has established branches across the county’s mining districts.

According to its strategic plan, the union is aiming to organize 75% of the more than 60 000 workers in the mining industry excluding those in the small scale mining sector by 2025.

IndustriALL challenges the power of multinational companies and negotiates with them on a global level. It also fights for another model of globalisation and a new economic and social model that puts people first, based on democracy and social justice.

Founded on 19 June 2012, the organization brings together affiliates of the former global union federations: International Metalworkers’ Federation, International Federation of Chemical, Energy, Mine and General Workers’ Unions, and International Textiles Garment and Leather Workers’ Federation.

It represents workers in a wide range of sectors.

Use it or lose it – Government to resize ZMDC Coal special grant

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Use it or lose it – Government to resize ZMDC Coal special grant

The Zimbabwe Mining Development Corporation’s coal special grant in Hwange District has been earmarked for resizing as the government moves in to implement the “use-it or lose-it” policy.

Benard Rinomhota

Under the use-it or lose-it policy, the government intends to repossess all underutilised mining claims across the country for re-allocation to potential investors.

Mines and Mining Development Minister Winston Chitando has also highlighted that the policy seeks to resize excessively large concessions with life spans of at least 100 years for apportionment to prospective investors.

“Currently, there is a coal concession belonging to ZMDC (Zimbabwe Mining Development Corporation) which will be split into two halves, and there are discussions around the use-it or lose-it policy.

“So, the government will reduce it (ZMDC coal concession),” he said.

The government is targeting to implement the use-it or lose-it policy across the mining sector by the end of September this year.

Implementation of the policy framework is in sync with the government’s target of achieving a US$12 billion mining industry economy by 2023.

And to achieve the projection, Minister Chitando said players in the sector need to ramp up production.

During a recent tour of coal and coking coal mines in Hwange District by Minister Chitando and his counterpart Finance Minister Professor Mthuli Ncube, it emerged that coking coal firms are getting inadequate supplies of coal from the local producers.

The tour saw the two government officials visiting Zimbabwe ZhongXin Coking Company, Jinan Coking Coal Project, South Mining Coking Coal Project, Zambezi Gas, and Dinson Colliery, a subsidiary of Afrochine mining concern.

In line with the government’s thrust to promote value addition and beneficiation, coking coal firms in Hwange use coal to produce coke and coking coal for the local market and export to Asia and Europe.

The mining industry is one of the major economic centrepieces contributing immensely to the Gross Domestic Product and the fiscus generating about 70 percent of the country’s foreign currency receipts.

This article first appeared in the Mining Newsweek 13 July 2020 issue

Shortages of staff at AG’s office delay Mines and Minerals Amendment Bill

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Shortages of staff at AG’s office delay Mines and Minerals Amendment Bill

SHORTAGES of staff in the Attorney General’s office has stalled crafting of the Mines and Minerals Amendment Bill which has resulted in the Ministry of Justice missing the October 2019 deadline to finish drafting it.

The Deputy Attorney General Nelson Diaz last week told Parliament that he only has four junior lawyers in the drafting department to work on the Mines and Minerals Act amendments which are in any case highly technical.

Diaz had appeared before the Mines Portfolio Committee chaired by Edmond Mkaratigwa together with the Ministry of Mines and Mining development Secretary Onesimo Mazayi Moyo to speak on the Mines and Minerals Act amendments.

MPs said Diaz is responsible for its delay and missing the October 2019 deadline to draft the Bill.

Moyo had told the committee that the Mines and Minerals Act amendments are pivotal for investor confidence into the country.

“This Bill is extremely important in attracting investment in the Mines sector into the country because if investors do not see us having a stable legal environment they will wait until the Bill is crafted to see if the environment is favourable,” Moyo said.

“It brings clarity to stakeholders and helps the country to achieve a US$12 billion mining industry by 2023 and will also pave way for the implementation of the mining cadastre system and increase the security of tenure and end mining title disputes which are untenable at the moment.

“The amendments will also bring competitiveness of Zimbabwe as an investment destination and will complement other pieces of legislation,” he said.

Moyo then told the committee that the snail’s pace in completing its drafting was not the problem of the Mines Ministry as they had submitted their draft to the Justice Ministry which is the one responsible for the delay. The Mines secretary also said failure to amend the Mines and Minerals Act as soon as possible will stall crafting of other Acts like the Precious Stones Bill, the Gold Trade Bill and the Exploration Bill.

MPs then began to blast Diaz saying he was the man responsible for the delay in the Mines and Minerals Act amendments.

But Diaz told the committee that it was not his fault as he only has 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.

“I apologise for the delay.  We have many challenges in the office where my colleagues are young and inexperienced and we have a team of four dedicated to drafting.  Important Bills are also coming up for drafting,” Diaz said.

Legal advisor in the Justice Ministry Jacqueline Munyonga added that the drafters had been booked at hotels in order to move with speed on working on the Bill and that they were now halfway through with the drafting of the Mines and Minerals Act.

This further angered MPs with Bikita West MP Elias Musakwa saying, “the deadline as per our Kariba resolutions was October 20 2019 and you missed that deadline and now you are coming here to tell us that you have done 50% of the work.  It means you need another year to have a breakthrough.”

Other MPs accused Diaz and his team of wasting money by being booked at hotels and suggested that the Justice Ministry must be given two weeks of which after that they must report to Parliament that they have completed drafting the Bill.

“If I gave the impression that in the next 14 days we will be finished then I am sorry.  I cannot say we will finish in two weeks or one month, but with the level of work we achieved last week if we have another two weeks we can do a lot,” Diaz said.

Mutasa Central MP Trevor Saruwaka ended up suggesting that the committee was barking at the wrong man and the Justice Minister Ziyambi Ziyambi and the Attorney-General Prince Machaya must be summoned before Parliament to explain the delays.

Tjhis article first appeared in the 13 July 2020 Mining Newsweek issue soft copy

BREAKING: Fidelity hikes gold buying price

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BREAKING: Fidelity hikes gold buying price

Zimbabwe’s sole gold buyer and exporter Fidelity Printers and Refineries (FPR) has hiked the gold buying prices in the country which was previously pegged at USD45. The price according to FPR General Manager Mr Fradreck Kunaka will be changing daily inline with floating world market prices.

These are the Prices as at 17.07.20

SG 90% AND ABOVE $52.01/g

SG ABOVE 85% BUT BELOW 90% $51.14/g

SG ABOVE 80% BUT BELOW 85% $49.98/g

SG ABOVE 75% BUT BELOW 80% $49.40/g

SAMPLE BELOW 10g BUT ABOVE 5g $50.56/g

FIRE ASSAY CASH $52.30/g

 

Unki in production decline

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Unki in production decline

Anglo American Platinum Limited’s local unit, Unki Mine’s PGM production for the second quarter to June 2020 fell 40 percent to 31 300 ounces on the back of disturbances caused by Covid-19 induced shutdown.

Platinum decreased by 40 percent to 13 900 ounces while palladium production went down by 42 percent to 12 100 ounces.

By end of the quarter under review, Unki Mine was, however, now operating at normal production levels of 100 percent.

Due to production challenges experienced in Zimbabwe and South Africa caused by Covid-19 induced lockdowns, Anglo’s overall quarter production went down significantly.

According to the group total PGM production  at 665 100 ounces was 41 percent below prior period Q2 2019. Platinum production eased 41 percent to 307 500 ounces and palladium production went down 34 percent to 228 500 ounces.

“The impact of the shutdowns implemented by the Governments of the Republic of South Africa (RSA) and Zimbabwe in response to curbing the outbreak of Covid-19 led to a loss of 521 600 PGM ounces in the quarter.

“In collaboration with Government, labour unions and employees, stringent measures were put in place to protect employees, including social distancing, hygiene measures, screening and testing, and provision of PPE — resulting in no operation needing to close due to spread of Covid-19 among employees,” said Anglo.

Total PGM production from own managed mines decreased 40 percent to 379 400 ounces  with platinum production falling by 43 percent to 166 100 ounces.

Palladium production went down 30 percent to 158 600 ounces. The decreases were largely due to the Covid-19 shutdowns which led to a loss of 286 500 PGM ounces in the quarter.

Said Anglo: “The impact of the Covid-19 shutdowns was partially mitigated due to high proportion of open-pit and mechanised operations, which could ramp-up at a faster pace than the conventional underground operations. Open-pit and mechanised operations were able to get to 98 percent levels of production by the end of June 2020.”

According to the group, joint venture PGM production — mined and purchase of concentrate-decreased by 55 percent to 101  600 ounces largely due to the Covid-19 shutdowns, and the result of declaring force majeure leading to Kroondal material being processed by third parties.

Refined PGM production excluding tolling went down by 67 percent to 407 000 ounces, primarily due to the temporary closure of the Anglo Converter Plant B unit for repairs which was offline for 54 days during the quarter under review.

PGM sales volumes — excluding tolling and 4E POC sales that are now tolled- also went down  55 percent to 548 000 ounces due to lower refined production, partially supplemented by a draw down in refined inventory.

Despite the declined recorded in the quarter under review, Anglo still retain its full-year production and refined production guidance from Q1 2020 with PGM production expected to be between 3,1 million and 3,6 million ounces, including platinum production of between 1,45 million and 1,65 million ounces. Palladium production is protected to be between 1 million and 1,15 million ounces.

Refined PGM production will also be between 3,1 million and 3,6 million ounces, including refined platinum production of between 1,45 million and 1,65 million ounces and refined palladium production of 1 million and 1,15 million ounces.

“We acknowledge that significant headwinds exist in the second half of the year, including completing the rebuild of the ACP Phase A, further Eskom power-outages, as well as the potential impact the Covid-19 pandemic could have on our performance.

‘‘Our priorities remain to ensure the safety of our employees and the integrity of our assets and caution that these headwinds could impact our ability to meet full year guidance,” said Anglo.

 

Business Weekly

Coke investments to cut imports, increase exports

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Coke investments to cut imports, increase exports

THE growing investment in coal production and value addition in Matabeleland North will enable Zimbabwe to cut imports of coal-related products while increasing scope for foreign currency earnings from exports, South Mining managing director, Mr Chenji Li, said yesterday.

The Hwange-based company is one of the entities that will be visited by President Mnangagwa today and tomorrow. The Head of State will also officially commission the company’s coke production plant.

In an interview, Mr Chenji said as an investor, they were excited by opportunities in Zimbabwe and motivated by Government’s drive to transform the economy.

“As an investor, the visit by the President is important in boosting the investor confidence in doing business in Zimbabwe in line with the mantra ‘Zimbabwe is open for business’,” he said.

“Coke is one of the most fundamental material for the industrial value chain. It is used for the making of steel and ferochrome. If you see all the countries industries, coke is one of the essential materials to use.”

Given the strategic importance of coke in the manufacturing and processing industries, Mr Chenji said Zimbabwe stands to benefit immensely from the growing investments in Hwange. “For the country, when you make coke, you maximise the beneficiation of the material, which you don’t only mine from the ground and sell but you add value. Coke can be exported and generate more forex for the country. You also cut on imports,” he said.

“We also supply coke to the local industries for the production of ferochrome and other products. I can say coke is playing a great role for the industry of Zimbabwe, therefore creating employment.”

Mr Chenji said his company started the coke project a year ago and was grateful for the full support they received from Government and local community. “We want to show the achievements we have made and our decision to continously develop the business and grow together with the locals people. That is what we want to show to the President,” he said.

 

The Chronicle

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