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Parallel market gold buyers trounce Fidelity

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Parallel market gold buyers trounce Fidelity

The country could still be losing a significant amount of gold through smuggling despite having recently unveiled a new trading framework of the yellow metal aimed at mopping up more gold into the formal system.

Bernard Rinomhota

On May 26, Zimbabwe’s exclusive gold buyer, Fidelity Printers and Refiners announced the new trading framework where it was now buying the bullion from artisanal and small-scale miners at a flat rate of US$45 per gram.

Before the new trading framework, FPR was paying small and large-scale gold producers 55% forex retention and 45% in local currency.

In addition, under the recently pronounced trading guidelines, large-scale miners are now being paid 70% of their gold sale proceeds in hard currency while 30% in Zimbabwe dollars.

Contributing during a Parliamentary debate in June, National Patriotic Front legislator for Kwekwe Central Mr. Masango Matambanadzo highlighted that the parallel market was buying gold at prices ranging between US$50 and US$52/g against a flat rate of US$45/g that FPR was paying.

“Fidelity, the company that buys gold is buying at US$45/g and they are competing with the black market.

“The black market is competing and it is a dangerous animal in this country.

“Today (Wednesday june 15) the black market is buying at US$50 and US$52/g.

“How can the country’s economy stabilise as you (monetary authorities) are not going to get gold,” he said.

Of late, the Government has expressed concern over the gold leakages as the country was losing its yellow metal through the informal market that was smuggling the contraband to neighbouring countries like South Africa, where it was fetching relatively favourable prices.

In an interview, an official from the Zimbabwe Miners Federation (ZMF) who spoke on condition of anonymity said:

“Let’s have the government paying gold sale proceeds according to the economic fundamentals of the London Bullion Market exchange rate. That’s very important because those rates are going up every day.

“We don’t want a situation where the government imposes a flat rate, we want a situation where we have a win-win situation between the government and the gold producers”

Asked to comment on what the parallel market was paying prior to the new gold trading framework, the official said ZMF does not talk about the black market rates.

“But ZMF wants to support the Government in coming up with rates that are commensurate with the situation palatable to the economic fundamentals.

“In 2004, the government rates beat the parallel market rates and we are saying let’s come back to that,” said the official.

The ZMF official also highlighted that contrary to parallel market dealers, FPR has not been paying prompt cash for gold sales.

“The parallel market is offering prompt cash, so we need the government to incentivise those operations…if you go to South Africa for example, and whatever l do, whether l deal with a dealer under the table, that gold will go to the Reserve Bank of South Africa.

“So whatever happens in the market, let’s have that gold come to Zimbabwe because gold is a reserve asset.”

Gold sub-sector contributes about 70 percent of Zimbabwe’s mineral export earnings.

Last year, the country earned about US$1,3 billion from gold export receipts, and under the US$12 billion mining economy by 2023, the yellow metal is expected to contribute US$4 billion.

This article first appeared in the July 2020 issue of Mining Zimbabwe Magazine

ZMDC needs US3million to capacitate gold operations

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ZMDC needs US3million to capacitate gold operations

The Zimbabwe Mining Development Corporation (ZMDC) needs close to US$3 million to capacitate all its gold operations dotted across the country it jointly owns with the small-scale miners.

Benard Rinomhota

ZMDC general manager Mr. Blessed Chitambira revealed this during a recent field day tour of Bubi Gold Milling Centre in Matabeleland North province by the Minister of Mines and Mining Development Minister Winston Chitando and his counterpart Finance Minister Professor Mthuli Ncube.

The field day tour also saw the two ministers accompanied by other government officials touring Breakfast Gold Mine, a joint venture operation owned by Bubi Small-scale Miners Association and ZMDC.

“We need close to US$3 million to capacitate all our joint venture gold operations that we own together with the small-scale miners.

“Out of the initial 10, we then partially capacitate five and this one (Breakfast Gold Mine) is one of them.

“When l say, we ‘partially capacitated’ what it means we provided them with a compressor, and a generator; but still there is more that is required,” said Mr. Chitambira during a site visit of the mine.

The gold mine, Mr. Chitambira said is presently producing 20 tonnes of ore per week and the target is to have the mine produce 60 tonnes.

“We want this mine because it has got the capacity to produce 60 tonnes, 20 being waste and 60 being ore,” he said.

The ZMDC boss said the small-scale miners at the mine need to be equipped with modern technology such as a hoist as at the moment the miners are operating with rudimentary hoist.

“We need to put a proper hoist that they require and also we need to equip them with a ladder as they go deeper like this mine is currently 60 metres deep,” said Mr. Chitambira.

ZMDC is a government-owned mining company with a number of assets in different mining sub-sectors across the country.

The parastatal is also looking forward to establishing 20 gold milling centres across the country to boost the production of the yellow metal by small-scale miners.

And the Bubi Gold Milling Centre, is a pilot project by the government officially commissioned by Vice President Dr. Constantino Chiwenga in 2019.

The concept of gold milling centres is an initiative aimed at increasing production and delivery of the yellow metal by players in the small scale mining industry.

At present, the small-scale miners account for the bulk of the gold produced in Zimbabwe.

Last year, Zimbabwe produced 33,2 tonnes of gold against a target of 40 tonnes and the projections were missed largely because of power constraints, among others.

This article first appeared in the July 2020 issue of Mining Zimbabwe Magazine

ZMDC begins coal and methane gas exploration in Lupane

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ZMDC begins coal and methane gas exploration in Lupane

The Zimbabwe Mining Development Corporation (ZMDC) has started coal and methane gas exploration in Lupane, Matabeleland North province.

Benard Rinomhota

A few years ago, the government allocated the parastatal, which recently underwent restructuring two Special Grants to explore coal and methane gas.

Mines and Mining Development Deputy Minister Engineer Polite Kambamura said ZMDC has begun exploration work after securing a partner under a joint venture agreement.

“ZMDC found investors for the SGs (Special Grants) and have since signed a joint venture agreement and now the investor is doing exploration.

“The investors for the methane gas project are Sakunda Energy and a South African company,” he said.

Eng Kambamura would not be drawn into commenting much on the time frame of the exploration work in Lubimbi.

However, he said the project is a massive investment that would significantly transform Zimbabwe’s economy in sync with Vision 2030 where the government aims to achieve an upper-middle-income economy status.

Contacted for further comment, ZMDC general manager Mr. Blessed Chitambira said he was not authorised to talk to the Press.

“I am not allowed to talk to the Press,” he said.

It is estimated that Zimbabwe has 40 trillion cubic feet of potentially recoverable gas in the Lupane-Lubimbi area.

The development of the Lupane coal-bed methane gas project has the potential to boost the country’s energy generation capacity.

Zimbabwe requires an additional 9 000MW of electricity to achieve an upper-middle-income economy by 2030 and currently, the country’s demand for power hovers around 2 000MW.

Of late, the World Bank has urged the government to develop a clear strategy to extract the gas in Lupane

Besides power generation, there are other investment opportunities which are available in the core and downstream industries from coal-bed methane including the production of a variety of chemicals, fertiliser manufacturing, and gas-to-liquids producing diesel, specialist lubricants, and waxes.

Due to the estimated vast reserves of methane gas in Matabeleland North, companies such as Discovery Investments and China Africa Sunlight Energy are at various stages of implementing initiatives to extract the greenfield resource. However, potential investors have been saddled by challenges such as funding constraints and statutory fees.

For example, China Africa Sunlight Energy’s  US$2,1 billion coal and coal-bed methane gas project in Gwayi hangs in the balance due to funding limitations.

On one hand, Discovery Investments recently indicated that its planned multi-million dollar methane gas investment is in abyss as government has invoiced the investor US$16 million in ground rental fees.

This article first appeared in the July 2020 issue of Mining Zimbabwe Magazine

The three that matter, connive and collide

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The three that matter, connive and collide

Different concerns continue to be raised on the nature of corporate social responsibility (CSR) or corporate social investment (CSI) practices in Zimbabwe.

By Edmond Mkaratigwa (MBA in Energy and Sustainability and Chairperson of the Parliamentary Portfolio Committee on Mines and Mining Development) & Albert Maipisi (PhD in Disaster Management).

The local communities living in mining areas for long feel that they deserve better from investing organisations yet some investors have the view that every person should eat out of their perspiration. Surprisingly sometimes when engaging communities living in mining communities, they usually fail to initiate and suggest new models that can address their concerns yet they advance that they are suffering from the negative effects of existing extraction works. They appear stuck within the intellectual dictatorship of history and experience than forging a more reasonable way forward that surpasses current arrangements. Others appear caught-up in the thicket of endless activism, complaining, challenging, and negotiation against the status quo and for something newer, bigger, better, and difficult to particularly define.

Without qualms with any of the approaches, it becomes necessary to think through the aspect of corporate social responsibility or investment which falls within the domains of philanthropy, social licensing, and the different branches of sustainability. There are narrowly three stakeholders to this debate. The first category comprises owners of capital visibly represented through business corporatism. The second cluster belongs to popular politics which is rooted in bureaucracy whose branches are divided through social corporatism that has given rise to the concept of different ministries of government. The third and final grouping is what is formed of the people and is called the community, which is composed of those who live around the mining areas, civil society organisations and individuals who may be local or external but mainly sympathetic to the referred communities.

The owners of capital represented by the business corporatists may hail locally although that has been very rare with bigger mining companies. Business corporatists have vastly been locals and to a larger extent nationals with the broader base-level employees being predominantly from local mining communities due to lesser technical skills-set job demands. Some owners of capital and corporatists mostly end up being part of the politics. Also, the community is part of the politics while part of the bureaucracy is part of the community, capital, politics, and business corporatists. These groups that belong to the different institutions of society can benefit from each other if they work together in good faith which is often difficult hence whereas they all matter, they also connive and collide in order to achieve their diverse interests.

Lacking amongst them to a greater extent is dialogue yet their ultimate interests are the common good of society that starts with the realisation of individual ambition. Oftentimes the three appear to be fighting. The community sometimes accuses politics and capital owners of conniving against them while the owners of capital can also assume that politics and community are conniving to collide against them. Demands made by the community (with support from the civil society) to and through politics to the owners of capital are sometimes not premised on science than normative means of judgment on what the communities deserve. For example, if they demand employment for their children, it is not always given that these children will be employed long enough to raise their own kids and that they will get salaries that will cause a significant change in their lives and lifestyles. On the other hand, the push on government by communities to create jobs for their children can weaken the negotiation power of government against target potential capital towards the country.

Communities usually do not have large scale equipment and machinery to exploit resources for themselves locally without extra-community investment support yet in their incapacity envy those who exploit, then raise their voices to politics for support. That is the ordinary thinking. It becomes very needful thereafter and after previous experiences, for capital owners, community, and politics to dialogue around corporate social responsibility and investment in advance and have the arrangement institutionalised to avoid future ambushes from and against the three that matter, connive and collide. In other instances, the social corporatist (bureaucrat) is further not fully proofed from conniving with the owners of capital against other owners of capital as they can also become owners of capital directly or indirectly leading to a collision between two or more other owners of capital and sometimes in collaboration with politics. Such is unacceptable in deontological ethics but that is happening consequentially until they are caught in tracks or a trail of evidence is discovered and that is usually possible where any of the three that matter collide.

Another interesting category of the community are the working class from the different mining communities now dispersed throughout the world. They always say they left their communities many years ago and until now they see no significant change hence the companies in the areas are ungrateful and not ploughing back hence the communities should join hands and demand. Those stand up against politics and owners of capital or want to join hands with politics for the sake of their communities. The only question that is of significance is why that part of the community only see gaps in their communities yet they also are to a greater extent not doing much for their community. If these three that matter can join hands, there is high potential for community development in the country as that part of the community is anticipated to be more enlightened to contribute towards the formulation of new initiatives. Most of the communities where mines are located have the elderly and youths hence there is mostly recycling of interventions they have experienced before without newer initiatives or the communities solely rely on the capital owners with support from their business corporatists with minimum contribution from communities in developing programmes as one can only contribute what they know and imagine.

Jobs are often cited as the biggest contribution of capital owners to society but the challenge is whether the employment opportunity will leave someone more resilient than vulnerable. The world is changing and with modernisation and increased access to information, people’s views of life are shifting. In mining communities where mines have temporarily closed, former workers have been found to be going back to the mines to exploit and the employability loyalty of those who have tasted that life may be difficult to tame again in the future. Those anticipations are normal because in the husbandry of man there is no fallow. It means the mind of those will become more inclined towards owning capital than to be business corporatists whenever mining operations would resume. Of course, enforcements will be made through social corporatists (politics) but the mindset will never be cleansed since the mind is not elastic which will return to its original position after a stretching experience.

Where that exists, again, one who once belonged to the category of capital owners and then reverts back to become a business corporatist can easily connive with the community to collide with the capital owner (new employer). These challenges are being witnessed were former mine workers of a once closed mine are demanding for claims in the mines they have been working in and then become (temporary) owners during the period of its closure That is more visible where the community or business corporatists had been left without employment and livelihood certainty and then negotiations with new investors who will have to take over the mine ensue later. With impatience towards other companies that are not mining but holding on to resources with no or delayed benefits to communities, the communities and other capital owners are further demanding from and through politics (and social corporatists), the authority to exploit the idle resources; hence the three that matter, connive and collide requires agile action for inclusive and sustainable development of the country to be achieved.

Published ideas are entirely views of the authors as academics and cannot be attributed to their current positions.

This article first appeared in the July 2020 issue of Mining Zimbabwe Magazine

The requirements for the management of tailings facilities in Zimbabwe

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The requirements for the management of tailings facilities in Zimbabwe

Following the much-publicised 2019 Brumadinho tailings dam disaster in Brazil, where a tailings facility collapsed releasing 11.7 million cubic metres of toxic mud and killing more than 200 people according to BBC reports; the management of tailings storage facilities, (“TSFs”) has come under increasing international scrutiny.

By Methembeni Moyo 

The Investor Mining and Tailings Safety Initiative prompted by the Brumadinho disaster set in motion a global tailings review by the International Council on Mining and Metals (ICMM), the United Nations Environment Programme (UNEP) and the Principles for Responsible Investment (PRI), to ensure the adoption of global best practices on TSFs and to establish an international best standard. Zimbabwe is no exception. Zimbabwean miners, especially major miners, will be expected going forward to adhere to and implement international best practices and ensure that TSFs are managed in a way that will ensure the safety of mine workers, communities, and the environment. Indeed, some of Zimbabwe’s mines were part of the global tailings review carried out in 2019. Zimbabwe’s mine safety and environmental management laws are not as sophisticated and up to date with international norms and standards with regards to TSF management as other jurisdictions. However, even within the current legal and regulatory framework, Zimbabwe’s mine safety laws do provide for the management of TSFs and importantly also provide an opportunity for miners to implement their own rules which may be at par with international best practice.

In this article, I discuss the TSF safety and management requirements in terms of the Mining (Management and Safety) Regulations, Statutory Instruments 109 of 1990, (the “Mining Safety Regulations”) and the scope for mining companies to make their own TSF management rules that will pass international muster.

TSF management in terms of the Mining Safety Regulations

Section 25(1) of the Mine Safety Regulations requires that every TSF be constructed under the supervision of a competent person and in such a manner as not to endanger life or limb or to cause damage to property and be provided with an adequate penstock, spillway or some other suitable installation.

A competent person is described in section 1 as a person who has had adequate training and experience to enable him to perform the required duty or function without causing avoidable danger to himself or any other person. Section 25(2) requires a competent person to inspect a TSF every three days to ensure that there is no danger of breach or collapse. Section 25(3) requires any foreseen possibilities of breach or collapse to be reported to the mine manager and appropriate action to minimize the effect of a potential breach or collapse to be taken immediately. All inspections and reports made with regards to the management of TSFs, in terms of section 25(4) are required to be recorded and countersigned for by an official of the mine every seven days. Sections 26 and 27 reiterate the requirement for TSFs to be properly designed, constructed, and maintained. These sections further require miners to make modifications, additions, or alterations to TSFs where necessary to ensure TSF structural integrity and to take precautions against flooding.

Can miners do more?

In light of the growing global scrutiny of TSFs and the development of international best practices, what can Zimbabwean miners do to ensure that its mines are compliant with both local laws and international standards?

The Mining Safety Regulations allow for a mechanism whereby miners can make additional management and safety rules and ensure that those rules have the same force of law as the regulations themselves. Section 10(1) of the Mining Safety Regulations states that If a mine manager wishes special rules not inconsistent with the regulations, made by him for the maintenance of order and discipline and the prevention of accidents at such mine, to have the same force and effect as the regulations, the mine manager shall send such rules through an inspector or the Chief Government Mining Engineer who shall submit them to the Minister of Mines and Mining Development, (the “Minister”) for his approval.

Section 10(2) states that If the Minister approves the special rules submitted to him, the manager concerned shall be notified accordingly and the rules may then be posted up in a conspicuous place and shall take effect after they have been so posted up for fourteen clear days. Sections 10(3) and 10(4) provide for the mechanism for the rejection by the Minister or the objection to the special rules by an interested party. In terms of section 10(5), when, and as long as, special rules made in terms of section 10 of the Mining Safety Regulations are posted up as required, they shall until they are revoked or altered by the Minister, have the same force and effect as the Mining Safety Regulations and any person who contravenes or fails to comply with such rules shall be guilty of an offence and liable to the penalties specified in the Mining Safety Regulations. Accordingly, in terms of section 10 of the Mining Safety Regulations, miners have the option to make special rules with regards to the maintenance and monitoring of TSFs which will have the same force of law as the regulations. Should miners feel that the Mine Safety Regulations are inadequate, they may implement additional rules and further ensure that such rules have the legal force of regulations.

Conclusion

Notwithstanding that Zimbabwean mining safety laws are not regularly updated, the Mining Safety Regulations provide an opportunity for Zimbabwean miners, particularly those with significant TSF exposure, to make special rules with regards to the monitoring and maintenance of TSFs. Making special rules gives miners the peace of mind that employees will respect any additional rules with regards to TSF management with the same reverence as they would the regulations themselves. Secondly, by implementing special TSF management rules, should a TSF failure occur, the miner can show that it took every step necessary to be compliant and even went a step further by ensuring that international standards were used at the mine by implementing special rules that are as legally binding as the regulations. Ultimately, miners have to consider whether the cost and administrative drawbacks of further regulation by using the special rules mechanism is necessary to minimize the risk of a TSF failure occurring, and to mitigate the liability of the mine should a TSF failure occur.

You can get in touch with Methembeni Moyo on [email protected]

Zim to promote nuclear power

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Zim to promote nuclear power

Zimbabwe will have a draft sustainable energy policy by year end that among other critical issues, will promote greater use of renewable sources including nuclear power, according to Energy and Power Development Minister Fortune Chasi.

Chasi disclosed the policy dubbed – National Integrated Energy Resource Plan in Parliament on Wednesday.

Zimbabwe is now being assisted by the World Bank and the African Development Bank to develop the policy.

“We are working on a National Integrated Energy Resource Plan,” said Chasi. “We had a false start with regards to this process and we are now working with development agencies like the World Bank and the African Development Bank who are helping us to come up with the policy.

“I am not able at this moment in time to precisely say when this work will be concluded but all of us who are involved in this matter understand the urgency of the matter and I am very hopeful that by year end we will have our first draft.”

Zimbabwe, which currently generates about half of its electricity from coal with a number of thermal projects lined up for implementation, is holding in check the use of coal for power production in line with its pledge to reduce its carbon footprint.

Zimbabwe is a signatory to the Paris climate change accord agreed in 2015, which seeks to hold the increase of the global average temperature to below 2 degrees Celsius.

Coal generation needs to fall by 11 percent a year to keep within a warming limit of 1,5 degrees Celsius.

According to research by independent climate think tank, Ember, global carbon dioxide emissions from the power sector fell by 2 percent last year, the biggest fall since 1990 due to reduced coal usage in Europe and the United States.

Thermal power generation fell by 3 percent globally, with Europe registering the biggest fall of 24 percent due to shift to renewables, while US registered a 16 percent drop because of more competitive gas.

China was responsible for half of global thermal generation.

The International Renewable Energy Agency’s Renewable Capacity Statistics 2020 shows that new renewable power — principally hydro-power, wind, solar, geothermal, and bio-energy — accounted for 72 per cent of all power expansion last year.

Renewable energy expanded by 7,6 per cent in 2019, adding 176 gigawatts (GW) of generating capacity globally, marginally lower than the 179 GW added in 2018.

But that electricity accounts for only about 20 per cent of energy used. The rest is mainly fossil fuels: coal, oil and gas.

Solar and wind dominated renewable capacity expansion, jointly accounting for 90 per cent of all net renewable additions in 2019.

Hydro-power accounted for the largest share of the global total, with a capacity of 1,190 GW. It increased minimally by 12 GW (up 1 per cent on 2018), possibly because some large projects missed their expected completion dates. China and Brazil accounted for most of the expansion, IREA said.

Other renewables included 124 GW of bio-energy, 14 GW of geothermal, and 0.5 GW of marine energy.

Off-grid capacity grew by 160 MW (up 2 per cent) to reach 8,6 GW in 2019. Bio-energy accounts for 40 per cent of off-grid capacity. China accounted for half of all new capacity in bio-fuel use.

Asia accounted for 54 per cent of new capacity in 2019 or 44 per cent of the global total.

Capacity in Europe and North America expanded by 6,6 and 6 per cent respectively.

Oceania and the Middle East were the fastest growing regions (up 18,4 and 12,6 per cent respectively), although their share of global capacity is small.

Africa only increased by 2,0 GW (up 4,3 per cent) to reach 48 GW.

Over the past few years, Zimbabwe has witnessed modest increase in renewable energy investments, particularly solar, large and mini hydro projects.

Some of the notable climate smart projects include the expansion of the of Kariba hydroelectric plant, Harava 20 MW solar project in Seke which is nearing completion and Centrigand’s Nyabira solar plant which is feeding 2,5 MW onto the national grid.

In light of rolling power cuts, some corporates and households invested in solar .

The development of wind power generation has, however, moved at a snail space. In 2017 Zimbabwe abandoned the exercise to conduct a wind resource measurement on identified three sites with highest energy potential as the price bids received from companies that tendered to carry out the feasibility study were too high.

The purpose of the project was to create an accurate knowledge base of the wind resource available in Zimbabwe through measurement and analysis to help the country plan for renewable energy projects. The intention was to measure wind speed and direction at the sites and remotely collect data for 24 months at a hub height of 100 meters.

The data and information generated was expected to be used in designing large scale wind power projects, off grid or mini grid electrification, water pumping and climate research.

Minister Chasi said plans remain of course to develop power by processing uranium. Zimbabwe, previously not known to have any deposits of uranium discovered some deposits in Hwange and Binga.

Last year, Zimbabwe agreed terms with Russia to engage in uranium exploration and enrichment for power generation_Business Weekly

Gold rallies to $1 800 an ounce

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Gold rallies to $1 800 an ounce

Gold’s allure is only getting stronger as 2020 unfolds. Spot prices reached $1 800 an ounce and year-to-date inflows into bullion-backed exchange-traded funds have topped the record full-year total set in 2009.

Investors have favoured havens this year as the coronavirus pandemic rips through economies, spurring sustained inflows into gold-backed ETFs as central banks and governments unleash vast stimulus programs.

States across the US recorded new highs in cases and deaths on Tuesday, and Federal Reserve Bank of Atlanta President Raphael Bostic said the resurgence of the virus may be threatening the pace of America’s recovery.

“A massive investor response to Covid-19 has pushed ETF holdings to record levels, the impact of which has outweighed the decline in jewelry demand and absorbed increases in recycling,” said James Steel, chief precious metals analyst at HSBC Securities (USA) Inc. Further inflows are expected “as investors respond to elevated risks and low yields,” he said in a note.

Holdings in gold-backed ETFs rose to 3 234.6 tons on Tuesday, according to initial data compiled by Bloomberg.

That’s up 655.6 tons so far in 2020, topping the rise in tonnage terms seen in 2009. The total has risen each month this year.

Spot gold was up 0.2 percent at $1 798.55 an ounce at 9:36 a.m. in London, after climbing above $1 800 to reach the highest since November 2011.

In other precious metals, silver and platinum were higher while palladium was little changed.

Bullion prices and holdings are widely expected to extend gains, with Goldman Sachs saying the metal could reach a record $2 000 in the next 12 months and JPMorgan Chase & Co. recommending investors stick with bullion.

“Short-term price risks remain skewed to the upside as long as the virus does not come under control,” said Carsten Menke, head of Next Generation Research at Julius Baer Group.

“The near unprecedented fiscal and monetary peacetime response to Covid-19 supplies gold with two substantial bullish inputs: liquidity and debt,” HSBC’s Steel said. “Low interest rates, monetary accommodation including balance-sheet expansion and heavy fiscal spending globally for the foreseeable future will cement and extend gold’s rally.”

More Fed support may be on the way. Vice Chairperson Richard Clarida said that policy makers would likely turn to additional forward guidance and asset purchases if the economy needs more aid. “There is more that we can do,” he told CNN International. News24.com

Mangwana raises stake in oil, gas project

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Mangwana raises stake in oil, gas project

Mangwana Opportunities, a Zimbabwean private equity fund, has an opportunity to increase its stake in gas and exploration junior miner, Invictus Energy Limited, after recently completing the acquisition of an unspecified shareholding in the company.

Completion of the equity transaction, through the placement of 12,5 million shares with Mangwana Opportunities for $440 000 (Australia Dollars), saw the simultaneous appointment of former Delta chief executive Joe Mutizwa to the board of Invictus Energy.

The capital raised will be used for further exploratory and project development work relating to Invictus Energy’s oil and gas project in Muzarabani.

Invictus Energy is an Australia Stock Exchange listed independent oil and gas exploration company focused on high impact energy resources in sub-Saharan Africa.

Its asset portfolio consists of a highly prospective 250 000 acres within the Cabora Bassa Basin in Zimbabwe.

The Special Grant 4571 contains the world class multi-trillion cubic feet Mzarabani and Msasa conventional gas condensate prospects.

Mangwana Opportunities Fund is an investor owned, closed end investment company, which is managed by Mangwana Capital.

It is funded by Zimbabwean institutional investors including pension funds and invests primarily in the fields of Agriculture, Mining and Tourism with an investment horizon of 10 years.

The fund has prescribed asset status and has been granted tax exempt status by the Ministry of Finance and Economic Development.

The shares were placed at a price of $0.035 per share; a 91 percent premium to the preceding 5-day volume weighted average price (VWAP) of $0.0183 when the placement was announced on 30 April 2020.

The placement is a 20 percent to premium to the last closing price of $0.029. The shares issued to

Mangwana Opportunities will be held in escrow for six months from the date of completion.

“The agreement makes provision for a further equity investment by Mangwana for the project over the next 12-24 months as well as assisting the company in achieving its strategic goals in country,” Invictus said.

The shareholding acquisition saw the appointment of respected Zimbabwean business person Mutizwa, current chairman of Mangwana Capital, as a director of the Company’s 100 percent owned local subsidiary Invictus Energy Resources Zimbabwe.

Mutizwa served for 10 years as chief executive officer of Delta Corporation, one of Zimbabwe`s largest listed companies before taking early retirement in 2012.

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

Falgold mine issues cautionary statement

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Falgold mine issues cautionary statement

AILING gold mining firm, Falcon Gold Zimbabwe Limited (Falgold), has issued a further cautionary statement relating to cash offer to minority shareholders and its suspension from the Zimbabwe Stock Exchange.

The struggling gold miner was again suspended from the Zimbabwe Stock Exchange early this year after it failed to publish financial results for the year ended September 30, 2019.

The suspension was done voluntarily after Falgold sought permission from the regulatory authorities. In February 2019, the mining firm was suspended by the local bourse for failing to publish audited financial results for the year ended September 30, 2018.

The suspension was lifted seven months later after the gold miner fulfilled the listing requirements.

In a cautionary statement released this week, Falgold said: “The directors of Falcon Gold Limited wish to advise all shareholders and the investing public that the company is still engaged in discussions that involve a potential transaction that may have a material impact on the value of the company’s shares.

“The transaction relates to a cash offer to minorities and the termination of the ZSE listing.”

It said further details of the transaction will be provided once discussions have been finalised.

 

The Chronicle

Machete gang members arrested

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Machete gang members arrested

TWO machete gang members have been arrested for allegedly attacking two mine workers in Gwanda and fleeing with 460 kilogrammes of gold ore and three cellphones.

Michael Gambiza (30) from Filabusi and Nkosinamandla Ncube (20) from Mberengwa were not asked to plead when they appeared before Gwanda magistrate, Mr Ndumiso Khumalo facing robbery charges. They were remanded in custody to July 17.

Prosecuting, Mr Silent Shoko said Gambiza and Ncube together with two accomplices who are still at large went to Marble Mine in Gwanda while armed with machetes, axes, knobkerries and catapults on July 1 at around 2AM.

“They forced open a steel cabin door in order to gain entry and assaulted two mine workers. They ordered them to lie down and tied their hands and legs using a safety belt which was inside the room,” he said.

“The gang further stole three cellphones which were in the room before loading about 460kgs of gold ore into a truck which they had parked outside and then fled the scene. The gang proceeded with the stolen gold ore to Hammer Mill in Dubane area to have it processed.”

Mr Shoko said the police received a tip off that the accused persons were at Hammer Mill and proceeded there resulting in the arrest of two of the accused persons and recovery of the gold ore and cell phones.

The Chronicle

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