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Hwange power plant rehab on

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Hwange power plant rehab on

THE Zimbabwe Power Company (ZPC) has begun US$40 million refurbishing Hwange Thermal Power Station Unit 3 to restore 120 megawatts to the national grid.

ZPC said the project was at 31 percent and is expected to be complete by March.

The refurbishment is being done using funds from the Africa Export-Import Bank (Afrexim) although some delays in disbursements affected the pace of implementation.

“Currently, Units 1, 2, 4 and 5 are generating about 400MW. The addition of Units 3 and 6 will see an increase of electricity by 260 MW.

“This will mitigate suppressed power generation due to reduced generation at Kariba Power Station caused by low water levels,”said ZPC..

“Completion of Unit 3 is likely to be around March 2020 if everything goes according to plan.”

The refurbishment of Unit 3 comes at the same time construction for Unit 7 and 8 is ongoing and is expected to be completed in two years, adding 600 MW to the national grid.

Hwange Power Station has a capacity of 920 MW, making it the second largest power plant in the country after Kariba which generates 1 050 at maximum output.

Hwange’s capacity has been reduced to 400 MW due to obsolete equipment.

The country has been battling acute power shortages. To improve electricity supplies, the Zimbabwe Energy Regulatory Authority (ZERA) has been licensing a number of independent power producers focusing on solar and mini-hydropower plants_The Sunday Mail

MaShurugwi Will Cause Violence In 2023 Elections

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MaShurugwi Will Cause Violence In 2023 Elections

Zimbabwe runs the risk of creating a deadly militia that will cause bloodbath and target opposition members in the lead-up and during the 2023 elections, if the machete-wielding gangs are not brought to book, a leading human rights activist has warned.

The country is currently struggling to contain machete gangs, operating under the moniker, Mashurugwi, who are running riot in small scale mines across the country and the blame has largely been pushed towards the government’s impunity as the criminals are alleged to be connected to powerful political offices.

Heal Zimbabwe Trust Director, Rashid Mahiya told 263Chat this week that the failure by the government, to reign in on the serious issue, shows that there is a high risk that the gangs will try to protect their mines in the lead up to the 2023 elections as any threat to their source of livelihood would be met with violence.

He noted that those who are controlling the gangs might feel that their political power is threatened then unleash the criminals to send warnings.

“Because they are aligned to political parties and powerful politicians, there is a danger that we are creating a militia that will be abused during political processes, especially around elections and that is a serious issue.

“Given the fact that we have had violent elections in the past, we now have a new phenomenon where people walk armed and can use those weapons against citizens to defend their bosses and funny enough, they will not face the wrath of the law. So we are headed for instability if this issue is not addressed soon,” he said.

He noted that although the security forces might be willing to intervene, their wings are clipped as there is no direct order, especially from the President, Emmerson Mnangagwa to deal with the issue.

“Each time these criminals are arrested, they are let loose and this disempowers the security forces,”
Mahiya said.

He said the greatest fear would be that the militia, which will be created outside the normal security forces will be used to target opposition members and they will likely be protected since they are all partisan.

“There is a selection process and it is done in a partisan way and it’s also dicult for law enforcement agents to interfere. These criminal are connected to people in high offices,

“They can be used against citizens, they can be used against opposition players,” he added.

He urged the government to act decisively as it has done in the past with opposition party demonstrations and civil society riots.

Government has been blamed for remaining silent but last week Home Affairs minister Kazembe Kazembe warned that the gangs would be brought to book as no one is above the law.

“Law enforcement officers are on high alert ready to deal with machete gangs. Several perpetrators are now in police custody as we speak and nobody is above the law. All cases will be dealt with,” he said.

The Parliamentary Portfolio Committee on Mines and Mining Development advocated for stringent
penalties for the machete gangs.

Heal Zimbabwe Trust Kazembe Kazembe MaShurugwi Rashid Mahiya Committee chairperson Edmond Mukaratigwa said Wednesday that there should be conversations by various stakeholders to provide clear direction on how to deal with the criminals.

“The committee further resolved that government kick-starts legislative procedures to allow for stier penalties with regard to such perpetrators as was done in the Criminal Procedure and Evidence Act regarding the vandalism of railway and electrical material, among others.

“The committee called for an urgent meeting against the background of the need to achieve sustainable mining business in the mining sector,” Mukaratigwa added_263Chat

BNC Bets On New Shareholders

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BNC Bets On New Shareholders

Listed mining concern, Bindura Nickel Corporation (BNC), is banking on new shareholders to complete all current projects and turn around the company’s fortunes.

The development comes after Asa Resources concluded the sale of its controlling interest in BNC in October last year to a local based mining concerned linked to business mogul Kudakwashe Tagwireyi.

BNC chief executive, Batirai Manhando, told Business Times that the company is finalising regulatory procedures with a local mining firm and will only announce new shareholders after the conclusion of the deal.

“We are banking on our new shareholders to complete all pending projects with the smelter project being the first priority. We are confident that the new shareholding structure will take the company forward and improve balance sheet,” Manhando said.

The nickel miner believes new projects of Shangani and Damba Silwane in the southern part of the country will also be fast-tracked under the new leadership.

BNC posted a 158% profit increase during the 2020 half-year period to US$9,3m from US $3,6m during the comparative period in 2019 due to revaluation of foreign-denominated loans and payables and decrease in costs.

During the half-year 2020 presentation, Manhando said the company was banking on firming nickel prices and the completion of smelter in 2020 financial year. Revenue for the period increased by 8.4 percent to US$28,4m from

US$26’4m due to volumes growth as well as sustained price recovery. Total assets jumped 8% to US$108,2m from US$99,3m. Retained earnings were up 24% to US$33,8m from US $27,2m due to profit for the period.

Manhando said most of the components required for the projects had already been purchased and only required fittings. Nickel is used in major industrial processes. Most nickel production is used for alloying elements, coatings, batteries, and some other uses, such as kitchen wares, mobile phones, medical equipment, transport, buildings, power generation, and jewellery.

The electric car revolution is set to transform the nickel mining companies since the product is a major component of hybrid car batteries. BNC said the buyer of Asa’s controlling 74.13% stake is “a Zimbabwean based mining entity with interests in the mining and production of ferrous metals, non-ferrous metals, and precious metals”.

Landela Mining Venture, another subsidiary of Sotic International, recently emerged as the local joint venture partner in Great Dyke Investment, the Russia-Zimbabwe platinum project being developed near Darwendale.

The new owner of BNC is making the buy at a good time for nickel prices, but also a time the company needs a large injection of capital to ramp up production and take advantage. Nickel prices rose to US$18,850 per tonne in September after Indonesia, the world’s largest producer of the metal, announced it would ban ore exports.

BNC’s buyer will need to invest additional capex into the business, if it is to increase output. The company is seeking an amount of between US$7m and US$10m to complete smelter project which is at around 83% complete.

Since the project began in 2015, nickel prices have averaged US$12,000 per tonne, according to the company’s last earnings report. For the smelter to make sense, BNC has said it needs a nickel price of US$16,200 per tonne.

While prices are expected to ease – some believe the metal is now overpriced – nickel is already above BNC’s forecasts of US$12,000 per tonne this year, US$13,000 per tonne up to March 2020, and US$16,625 per tonne by March 2021.

According to BNC chairman Muchadeyi Masunda, the company needs at least US$500m of capex to raise production but Zimbabwe’s poor credit score and isolation means the company cannot access that money from global markets.

In 2017, Asa had planned to incorporate the Trojan mine into the Bindura complex, but missed its deadlines due to weak nickel prices and rising costs. BNC was founded in 1966.

In 2004, Mwana Africa, owned by businessman Kalaa Mpinga, acquired 53% of the asset from Anglo American Corporation for US$8m. Mpinga, however, lost control of the company in 2015, after a hostile takeover by China International Mining Group Corporation, an Asa associate, which had invested US$21m in 2012 to rescue Trojan Mine.

Asa gained control of 74.3% in BNC and 85% in Freda Rebecca gold mine. But claims of fraud and externalisation soon crippled Asa. In 2017, warrants of arrest were issued on chief executive Yat Hoi Ning and financial director Yim Kwan over allegations that they had illegally shipped out ore and stolen US$4,3m from the company_Business Times

ZMF to tackle machete wars

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ZMF to tackle machete wars

THE Zimbabwe Miners’ Federation (ZMF) has outlined an ambitious plan for this year targeting to eradicate violence and machete wars in the small-scale mining sector to create an investor-friendly environment and boost production.

Of late, there have been many machete wars in gold-mining regions across the country involving artisanal miners attacking each other over a myriad of issues such as mining claims ownership wrangles.  The violence has left some miners injured or killed.

In an interview, ZMF spokesperson Mr Dosman Mangisi said his organisation as a mother body of small-scale miners in the country, among other measures to promote mineral output, will this year focus on eradicating the barbaric acts that have dogged the sector.

“2019 ended on a bad note for us, especially given that we failed to attain the set gold target and also an upsurge in violence and robbery cases within the mining sector. 

“In 2020, we are going to make sure that violence is a thing of the past especially robberies and violence cases that are happening in the small-scale mining sector,” he said.

Mr Mangisi added that the federation was fully behind the Government in trying to bring back sanity in the small-scale gold mining sector adding that they will not leave any stone unturned.

“Our main thrust as of now is to make sure sanity prevails in the mining sector by eradicating violence and machete attacks. 

“We are fully behind the Government and what the police are doing. We have a number of cases where investors have fled the mining sector for fear of being victimised. 

“As ZMF we are saying that should come to an end,” he said.

“We have already engaged relevant authorities and what we can promise for now is that sanity will prevail and these machete wars will soon be a thing of the past.” 

Last year, the gold mining sector produced 23 tonnes against the targeted 40 tonnes.

In 2018, the mining industry delivered 33,2 tonnes of gold.

On chrome and other base metals, Mr Mangisi said with the help of the Government, ZMF will also ensure improved production to foster economic growth.

“Government has already availed funding for the chrome sector as well other base minerals. 

“We are going to make sure that the chrome sector is revamped and it starts getting the recognition it deserves,” he said.

Towards the end of last year, ZMF held a small-scale mining sector conference which was addressed by President Mnangagwa and players in the sector highlighted the challenges affecting productivity.

The President assured the miners that Government will look into their concerns as the mining plays a major role in economic development and foreign currency generation_The Chronicle

Global bank sees gold price spike

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Global bank sees gold price spike

Moscow – Commodity strategists at US banking giant Goldman Sachs have projected that the risks for oil prices are skewed to the downside in the coming weeks, with a fair value of $63 per barrel, making gold a stronger hedge amid the escalation of tensions between the US and Iran.

Both oil and gold prices rose sharply on Friday and have continued to climb after Iran’s top military commander Qasem Soleimani was killed in a US airstrike in Baghdad, sparking fears of retaliation from Tehran.

The rise was triggered by the concerns that the recent escalations will lead to oil supply disruptions, with Brent prices reaching $70 per barrel at one point during the weekend – for the first time in four months.

Goldman Sachs analysts, however, suggested that the range of possible outcomes is too large for oil to sustain its current price of $69 per barrel.

“The range of potential scenarios is very large; spanning oil supply shocks or even oil demand destruction — which would be negative to oil prices. In contrast, history shows that under most outcomes gold will likely rally to well beyond current levels,” Global Head of Commodities  Research, Jeffrey Currie and his team, said in a note Monday.

Oil prices had peaked to their highest levels since the assault on two  Saudi Arabian production facilities last September. But absent a major supply disruption, Goldman Sachs projected that the risks are skewed to the downside in the coming weeks, with a fair value of $63 per barrel.

Gold has also rallied by $100 over the past month to hit $1,550 per troy ounce (toz), heading towards Goldman’s three-month target of  $1,600/toz. Spot gold was trading up by around 1.6% on Monday at $1,576,  having earlier hit a seven-year high of $1,579.72.

Currie highlighted that the precious metal could have further potential for growth, as spikes in geopolitical tensions – like wars or military escalations – have historically led to higher gold prices when they are severe enough to cause currency debasement.

“Accordingly, we found that gold performed well, even controlling for real rates and dollar weakness, during the beginning of both Gulf wars and during the events of September 11, 2001,” Currie’s note highlighted.

“Therefore, additional escalation in US-Iranian tensions could further boost gold prices. All in all, we stick with our three, six and 12-month  forecast of $1,600/toz but see upside risks if geopolitical tensions  worsen.” – Sputnik News-New Ziana

Oil, gas ratio up

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Oil, gas ratio up

The diverging fundamentals of US oil and natural gas can be seen dramatically in the markets, where the oil-to-gas price ratio has surged to its highest in six years.

The oil-to-gas ratio, or the level at which oil trades compared with natural gas, recently reached 30-to-1, and could increase further as analysts expect average gas prices will fall for a second consecutive year in 2020 to their lowest level in over 20 years.

That is because most US drillers are not looking for gas.

Companies like EOG Resources Inc (EOG.N), Pioneer Natural Resources Co (PXD.N), Diamondback Energy Inc (FANG.O) and Exxon Mobil Corp (XOM.N) are mostly seeking more valuable oil and natural gas liquids, which bring with it a lot of associated gas, making producers less sensitive to gas price declines. — Reuters.

Gold prices drop

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Gold prices drop

Gold dropped as much as 1 percent yesterday, drifting further away from a near 7-year peak hit in the previous session, as the prospect of an escalation in US-Iran conflict waned after the two sides softened their stance.

Spot gold fell 0,7percent to US$1 545,47 per ounce, having earlier slipped to US$1 539,78 an ounce. US gold futures dipped 0,9percent to US$1 546,50.

Following the signs that the United States and Iran are looking to defuse the crisis there is a degree of relief in markets, Ilya Spivak, a senior currency strategist at DailyFx, said.

“We did not see an immediate escalation, although it would not be accurate to say that it cannot happen, there is that risk.”

Gold, considered a safe investment in times of political and economic uncertainty, had risen as much as 2,4percent early on Wednesday and risen above the key $1,600 level for the first time in nearly seven years after Iran’s retaliatory attacks. — Reuters.

Largest hard rock TBM in the U.S. to dig tunnel designed to provide 100-year flood protection

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Largest hard rock TBM in the U.S. to dig tunnel designed to provide 100-year flood protection

Designed to provide 100-year flood protection for east and southeast Dallas, the 11.6 m diameter Robbins Main Beam tunnel boring machine will excavate the 8 km  Mill Creek Drainage Relief tunnel. The largest hard rock TBM ever to bore in the U.S, the machine will change size partway through the bore, to a more compact 9.9 m.

The unique Robbins TBM will be used to dig tunnel areas affected in recent years by severe storms. The tunnel will protect 2,200 commercial and residential properties, including Baylor Medical Center. The current drainage system in these areas was constructed 50 to 70 years ago, and only provides two to five years of flood protection.

The dual-diameter aspect of the Robbins TBM will be a first-of-its-kind conversion process. The contractor, Southland/Mole Joint Venture (SMJV), will make the conversion underground about 2.8 km into the bore. The two diameters are needed as the upstream section of the tunnel is designed with a circular cross-section and peak flow rate of 42 m3/sec, while the downstream 2.8 km portion has a higher peak flow of 565 m3/sec and was initially designed as a horseshoe cross-section. Using the TBM for the entire tunnel is less time consuming and costly.

The Robbins TBM, named “Big Tex” with permission of the State Fair of Texas, has been designed with a specialized cutter head including removable spacers and adjustable bucket lips to convert to a smaller diameter. The TBM will first complete its 11.6 m diameter section of the alignment, then back up about 21 m to a transition area for the conversion, which is expected to take six to eight weeks.

Based on previous work through similar geology, the project team expects TBM excavation to progress rapidly to an average of 25m (80 ft) per day, allowing the project to be completed on schedule in 2023.

Mliswa to name and shame machete gang leaders

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Mliswa to name and shame machete gang leaders

Norton Member of Parliament Hon Temba Peter Mliswa has threatened to expose all the leaders of the notorious machete gangs who have savaged the mining sector through killings, robberies, and theft.

Rudairo Mapuranga

Through his official Twitter handle, the Norton legislator said that he will be naming and shaming all those involved in machete debacles without fear or favour in the country’s national Parliament.

Mliswa also threatened to expose Zanu PF legislator for Chegutu West Dexter Nduna for leading killings of people and using unscrupulous ways to rig elections.

“For Nduna, each dog has its day. You can lead the killing of people and use crafty ways to get back in after Losing elections but one day God comes in with a natural force that is above all human initiatives. The mere fact that you have been arrested should tell you something.

You have crossed the line and I will work to expose all. All those involved, in Parliament, I will be naming and shaming, be they generals or what. Isu takafa kudhara and fear nothing” said Mliswa.

This came after the Norton Legislator praised the move by the police in arresting several machete gang members, the firebrand legislator also applauds the move by police to arrest Chegutu West Legislator Dexter Nduna who was recently arrested for mining gold without a prospecting license.

According to Mliswa the move by the police to arrest machetes gangs will restore sanity in the small scale and artisanal mining sector which has been tainted by the activities of these gangs which others have gone on to label a matter of state security.

Recently Nduna together with Zanu PF’s Mashonaland West Youth Chairperson Vengai Musengi and police acting officer commanding Chegutu District Sup Wonder Chisikwa allegedly extracted gold ore at the David Whitehead waste deposit site in Chegutu a day before machete attackers’ leader was shot dead by the police.

Arresting Nduna a good move: Mliswa

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Arresting Nduna a good move: Mliswa

Norton Legislator Temba Peter Mliswa on Thursday praised the move by the Police in arresting several machete gang members, the firebrand legislator also applauded the move by police to arrest Chegutu West Legislator Dexter Nduna who was recently arrested for mining gold without a prospecting license.

Rudairo Dickson Mapuranga

According to Mliswa the move by the police to arrest machetes gangs will restore sanity in the small scale and artisanal mining sector which has been tainted by the activities of these gangs which others have gone on to label a matter of state security.

“Once police start arresting Makorokoza and their political leaders calmness will come in. Arresting the likes of Nduna is a good move, shows seriousness. He was using his military background, where he was dismissed for fraud, for nefarious activities and tainting the name of the military” said Mliswa.

Recently Nduna together with Zanu PF’s Mashonaland West Youth Chairperson Vengai Musengi and Police acting officer commanding Chegutu District Sup Wonder Chisikwa allegedly extracted gold ore at the David Whitehead waste deposit site in Chegutu a day before machete attackers’ leader was shot dead by the police.

It is alleged that on November 13 last year, Nduna together with his alleged partners unlawfully and intentionally prospected for mineral ore near David Whitehead without a license, in contravention of the Mines and Minerals Act.

On November 12, Nduna, Chisikwa, Musengi, and Gwinji reportedly met at ZRP Chegutu District Headquarters and hatched a plan to extract gold ore from David Whitehead.

They agreed to look for an excavator to extract the mineral and Gwinji opted to approach Chegutu RDC.

Nduna allegedly decided to hire a JCB excavator from Yellow Metal Tours in Kadoma and paid US$495 through Marufu.

Chisikwa ordered police officers who were guarding the site not to interfere with the excavator before the accused extracted the ore which they loaded into trucks.

They were summoned to court on Monday, following Police investigations.

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