Mining ZimbabweLatest Mining News, Policy and Industry Updates

Zimbabwe’s biggest platinum producer, Zimplats holdings’ productions increased by 7 per cent when the miner extracted 7.2 million tonnes of ore 700 thousand more than the 6.7 million tonnes achieved in FY2019 the company’s chairperson of Board Dr Fholisani Sydney Mufamadi has said.

Rudairo Dickson Mapuranga

Through his annual message to the company’s stakeholders, Mufamadi also said that milling volumes for the Ngezi based miner increased by 300 thousand tonnes due to the tonnes addition from the company’s Mupani mine and fleet productivity enhancement initiatives.

“Your Company mined 7.2 million tonnes of ore, 7% more than the 6.7 million tonnes achieved in FY2019. Milling volumes also increased from 6.5 million tonnes in FY2019 to 6.8 million tonnes due to ore from Mupani Mine and benefits of fleet productivity enhancement initiatives that started towards the end of FY2019 and have now been rolled out to all the underground mines. The concentrator plants outperformed their previous year throughput due to higher running time and milling rate.”Mufumadi said in the report.

The 6E ounces produced increased marginally to 580 178 ounces from 579 591 ounces achieved in FY2019. The positive impact of the 5% increase in mill volumes on metal production was partly offset by in-furnace inventory build-up on start-up after the 122 days major furnace rebuild shutdown which commenced on 10 June 2019 and was completed in the first half of FY2020.

The Group recorded a profit for the year of US$261.8 million, 81% increase from US$144.9 million achieved in the prior year. This was mainly attributed to the increase in revenue (US$868.9 million in FY2020 compared to US$631 million in FY2019) arising from improved metal prices and decrease in exchange losses from US$20.2 million in FY2019 to US$4.8 million. This was partly offset by the discontinuation of the Reserve Bank of Zimbabwe export incentive scheme in February 2019 resulting in other income decreasing by US$45.8 million compared to the prior year.

The Company paid the final instalment of US$42.5 million on the Revolving Credit Facility with Standard Bank of South Africa. In addition, the Group generated enough cash to pay dividends amounting to US$45 million.

The Mupani Mine development project, (replacement for Rukodzi and Ngwarati mines), progressed well during the year and is on schedule. The project is expected to be completed on time and within the approved budget.

The Bimha Mine redevelopment project is substantially complete save for the underground workshops whose progress was affected by the COVID-19 pandemic. The company expect to commission the workshops in the first half of FY2021.

In view of the impact of the COVID-19 pandemic and the restrictions placed on travel and numbers in respect of public gatherings Zimbabwe’s biggest platinum producer, Zimplats will hold its Annual General Meeting (AGM) via online platforms in the interest of health and safety of all stakeholders.

Rudairo Dickson Mapuranga

Through the company’s annual report released early this month, the platinum miner notified its stakeholders that the company will hold its meeting at the offices of Impala Platinum in South Africa and virtual through online platforms.

“Notice is hereby given that the twentieth annual general meeting (“the meeting”) of the members of Zimplats Holdings Limited (“Zimplats” or “the Company”) will be held at the offices of Impala Platinum Holdings Limited, 2 Fricker Road, Illovo, Johannesburg, South Africa, and also virtually at https://78449.themediaframe.com/links/zimplats201112.html on Thursday 12 November 2020 at 11:30 am South African time (GMT+2) for the following purposes:” reads part of the report.

The platinum miners said, it has full support for the laws that are put in place to manage the spread of the Covid-19 thus holding the meeting online. It also said that members who wish to register, vote and participate in the meeting should get hold of the company’s annual report for explanations.

“In full support of the legislative and other measures put in place to curb the spread of the virus, the meeting of the members of the Company will be held virtually via an online platform which allows members to participate electronically in real-time. Members are referred to pages 4 – 5 of this notice (pages 197-198 of the integrated annual report) for specific details of how to register, vote, and participate in the virtual meeting.” The report reads in part.

All holders of ordinary shares in Zimplats at the Entitlement Time are entitled to attend and are required to vote ahead of the meeting.

Resolutions which are ordinary resolutions, propose the re-election of those directors who are retiring by rotation and who are offering themselves for re-election. In terms of Article 16.2 of the Articles, a director will retire from office no later than at the third annual general meeting following his or her last election and will be eligible for re-election.

Mr Nicolaas Johannes Muller, Dr Dennis Servious Madenga Shoko and Mrs Patricia Zvandasara have been recommended by Directors that stakeholders vote in favour of their re-election as the Directors, having regard to their respective qualifications to act as directors of your Company.

Vote for or against the resolutions in the notice, by no later than 48 hours before the meeting (being 11:30 am South African Standard Time) on Tuesday 10 November 2020 on www.investorvote.au.

Shareholders are to note that no voting shall take place during or on the date of the meeting, however, members shall be able to participate in the meeting. The Company will beam a live webcast of the proceedings of the meeting at https://78449.themediaframe.com/links/zimplats201112.html. Members and/or their proxies will be able to submit their questions prior to and/or during the meeting on the aforementioned online platform.

Members may visit the Company’s corporate website www.zimplats.com to view the financial statements or access information pertaining to the Company

Fidelity Printers and Refiners (FPR) official gold buying prices Tuesday 14 October 2020

SG 90% AND ABOVE $54.42/g
SG ABOVE 85% BUT BELOW 90% $53.50/g
SG ABOVE 80% BUT BELOW 85% $52.29/g
SG ABOVE 75% BUT BELOW 80% $51.68/g
SAMPLE BELOW 10g BUT ABOVE 5g $52.90/g
FIRE ASSAY CASH $54.72/g

Cash available. Fidelity Printers and Refiners prices will be changing daily in relation to world market prices.

Zimplats board chairperson Dr Fholisani Sydney Mufamadi has said his company will engage the government with regards to the Indigenisation and Economic Empowerment Act at the same time support the government in its endeavours to empower indigenous Zimbabweans and to develop the economy.

Rudairo Dickson Mapuranga

Last year the Minister of Finance and Economic Development in his Mid-Term and Supplementary Budget presented to Parliament on 1 August 2019, stated that the Indigenisation and Economic Empowerment Act (Chapter 14:33) requiring 51% indigenous equity for diamonds and platinum miners was going to be repealed and be replaced with an Economic Empowerment Act consistent with the Government’s drive to open Zimbabwe for business.

This announcement came as a welcome to the business community who had previously critic the law of pushing out Foreign Direct Investment (FDI).

Zimplats Chairperson Mufamadi said Zimplats supports the government of Zimbabwe in its quest to empower the people of Zimbabwe and to develop the economy, however, his company will continue to engage the government for clarity regarding the law.

“Your Company continues to support the Government of Zimbabwe in its endeavours to empower indigenous Zimbabweans and to develop the Zimbabwean economy. The Government is yet to amend the law to bring this to effect. Zimplats will continue to engage the Government for clarity on this matter.” Mufumadi said.

Mufamadi said as a way to support in the Zimbabwean community in the development and economic growth the company procured 60 per cent of its goods and services worth USD220 million from local suppliers.

“Your Company continued with its drive to positively contribute towards the economic development of Zimbabwe and the country’s fiscus. In pursuit of this objective, the Group’s operating subsidiary procured 60% of its goods and services from local suppliers during the year, equivalent to US$220.7 million (FY2019: US$234 million). The decrease in payments to local suppliers was attributable to the decrease in capital expenditure from US$115 million in FY2019 to US$104.2 million and high imports demand strategic projects.” He said.

In addition, the company continues to grow its support of local enterprises which has resulted in over 2 000 jobs created in the last seven years.

Payments to Government in respect of corporate tax, withholding tax, royalties, payroll taxes, and customs duties for the year amounted to US$164 million compared to US$84 million in the prior year.

Zimbabwe is not the first country to have such a policy. A host of other countries from the developed world implemented such policies and still have them in various forms which might not be as direct as the compulsory 51/49 shareholding adopted by Zimbabwe. These countries include the US, China, France, Italy, Brazil, Singapore, South Korea, Japan, Italy, Taiwan and South Africa. In these countries, certain economic sectors are reserved for the natives or the national government pushes for joint ventures with foreigners on strategic investment portfolios.

Zimbabwe Republic Police (ZRP) has confirmed the arrest of 13 artisanal miners who were mining for gold without mining titles in Matusadonha last week.

Through their Twitter handle, ZRP confirmed to have arrested the artisanal miners who were mining in a semi-formal method with equipment such as water pumps, picks, pipes, and shovels recovered at the mining site.

“13 people were arrested in Matusadonha for prospecting for gold without a permit on 9/10/20. Shovels, water pumps, picks, and pipes used for the illegal mining activities were recovered.” reads the tweet.

Following an outcry, Zimbabwean authorities recently banned mining in all the country’s national parks after a Chinese company was intercepted in Hwange National Park conducting mining operations.

The following are the Zimbabwe National Parks and the government announced mining is prohibited in these areas as of 8 September 2020.

• Chizarira National Park
• Gonarezhou National Park
• Hwange National Park
• Gonarezhou National Park
• Hwange National Park
• Kazuma Pan National Park
• Mana Pools National Park
• Matobo National Park
• Matusadona National Park
• Nyanga National Park
• Victoria Falls National Park
• Zambezi National Park