Home Blog Page 595

Chrome miners to form an association

TEPE
-
0
Chrome miners to form an association

A group of Chrome miners has resolved to form a Chrome miners association as a way of eliminating challenges they face in the chrome business. Unlike gold, the chrome market has few buyers making it susceptible to predatory buyers who purchase chrome at unreasonably low prices and has some miners losing out due. Mining Zimbabwe spoke to the brains behind the association, Mr Shelton Lucas.

Lucas said, ”l am a seasoned miner with a bias towards chrome and coloured quartz EG Amethyst. I got a stereotype ideology of thinking outside the box of my limitations by so doing l created groups to effectively share information on the other opportunities that need to be tapped instead of having these traditional gold rushes’.

Why do you feel a chrome miners association should be formed?

Chrome miners should form an association because the are factors affecting chrome miners that might be needing some reflex actions and tend to delay because of the sequential accessibility to the Paramount decision-makers instead of directly by so doing saving time. For example, chrome is volatile in prices as compared to some other metals it once peaked $250/t in 2016 and now its around $40/t but during the peak, no miner in Zimbabwe had a cut of the cake because of the delays caused by MMCZ through apple bridge and RBZ.

How is the association going to benefit members?

The association is going to benefit members through lobbying to the government for horizontal forward integrations. For example, the government can construct chrome smelters in Guruve, Mashava, Ngezi by so doing miners will be hedged from price volatility, poor road network mileage will be reduced and miners can also be having a solidified approach to syndication in terms of equipment hire and marketing.

The association can be able to negotiate a level playing field with other stakeholders so that we can have a standard price of chrome upper dyke lower dyke and off dyke.

It helps lobby for fair disbursement of funds from buyers to mines that are channelled from MMCZ to miners through Applebridge that it benefits all miners not only those that have connections with the people at Applebridge to avoid the cases that once happened in 2017 where some of the miners who were paid didn’t deliver and some unsuspecting miners consolidated the tonnage that was due to the buyers but were never paid.

The association will also advocate for buyers to open different chrome buying centres near the mines as in the same scenario with what Fidelity does to gold.

The association will also ring-fence the miners from chrome smelting companies that are foreign-owned because they sabotage the miners. Due to them owning the value chain that would not allow symbiosis by so doing the miner loses

How is the executive going to be formed?

The executive is going to be formed through elections from the chrome miners and investors forum. We are a group of 150 miners and we have a Whatsapp group created and administered by myself. It is not a group that was formed with a primary objective of forming an association but it was formed in July 2019 and due to the common challenges we were prompted to start an association with the thumbs up of all the active members numbering up to 150.

We have read and seen association conflicts going to court with some not wanting to step down from their positions will you consider that when forming your association?

This association is not going to be for personal aggrandizement there will not be personal individual benefits but for  all miners and they will be a clear constitution to cater for that so the guidelines and principles will be there to avoid such conflicts

Why a new one when there are existing ones like the ZMF for example?

We want a new one which is not under an umbrella group which has a specific mandate not to be represented by some other miners who are mining some other minerals other than chrome in terms of priority representation of specific fields then chrome lags behind. 

What are you going to do differently from other associations?

We are going to be different from some of the organisations because we are going to act transparently and we are people-oriented establishment moved by the plight of miners who have been affected or almost neglected by red tape.

A big challenge in the Mining Industry is miners are usually given tributaries and we once ran an article whereby a couple mined chrome on claims given to them by a chrome company only for someone to come claim they are stealing & up to today no one has come to their aid or even responded including Mines Ministry how will you help alleviate that?

The miners that are on tributaries with specific respect to the conflict that was experienced because of the communication breakdown between the allocation of ceded mines by the big companies. For instance, some miners were on tributaries and those mines were ceded to new miners and ownership changed hands without prior notices that the mines are no longer owned by those big companies to the extent that the new owner will come and claim everything and in prospective tributaries. There is a need for the proper paperwork at the lawyers and notifying the ministry also. Alleviation of these disputes can also be done at the association level before it spills in court since both parties will be affiliated and we will find the fairest way of handling disputes.

Chrome pricing is also a challenge in Zimbabwe your comments?

Chrome pricing is a challenge. It is volatile, most miners sell below the MMCZ stipulated prices because they do not get the chances of having the buyers coming directly to them. The smelting companies have their own mines they need miners as auxiliary suppliers, not main suppliers. By so doing miners are arm-twisted since there won’t be any symbiosis. This can be overcome by value addition through smelting.

Word to those who will want to join your organisation and the qualifying criteria?   

Those who want to join the organisation should be chrome miners with certificates, chrome mining companies, and those prospective chrome miners.

The members should also know that this is not a money-spinning association its direct mandate is to represent miners for the improvement of the chrome mining industry and the entire mining industry as a whole so don’t join expecting those get rich schemes.

You can get in touch with Lucas on [email protected]

As a Potential Covid-19 Induced Recession Looms… Lets go for Gold!

TEPE
-
0
As a Potential Covid-19 Induced Recession Looms… Lets go for Gold!

Mining analysts are predicting a strong 2020 for Gold prices. An ostensible Covid-19 prompted global recession is set to result in investors exchanging cash deposits for physical gold as a haven against a likely depreciation of the United States dollar.

By: Daniel Nhepera – Minerals Economics, Economic Research Unit

Global prices of refined gold have firmed by about 13.7% since the turn of the year, inflating from US$49.01 per gram on 2 January 2020 to a peak of US$55.82 per gram around the end of April 2020, according to the London Bullion Market Association. This was punctuated by a particular acceleration in prices in the 30 days to the first week of May 2020, where prices shot up by about 5.39%. Taking a cue from the 2008 financial crisis, it is anticipated that the restoration of normalcy for mineral markets, in the wake of the Covid-19 pandemic, may take as many as 24 months. In this time Gold is expected to outperform all other minerals on the global market, thus presenting an opportunity for Zimbabwe to ramp up efforts in output and enjoy golden returns through the downtimes.

Global markets have endured losses over the past three months on account of supply disruptions caused by the suspension of industries in China, as well as the restricted access or closing down of borders by countries worldwide. This was exacerbated by the fact that China manufactures up to one-third of world’s commodities and industrial implements, while also boasting of the world’s largest industry for the conversion of metals (Copper, Chrome and Platinum Group of Metals) and numerous Rare Earth Elements which form essential components of many hi-tech products.

This has had a knock-on effect on the economies of industrialised countries like the United States of America, who, while also battling the ravaging health effects of the Corona Virus, have had to deal with delays in the supply of essential elements from China, such as stainless steel and various technological components, to keep their own industries alive. There is, therefore, an anticipated recession on the horizon, as evidenced by the reactive measures being taken by the USA’s Federal Reserve.

In late March 2020, the Federal Reserve announced the release of a US$1.5 trillion stimulus package which is described as “short term loans to the banks to address unusual disruptions in treasury financing markets as a result of the Covid-19 outbreak.” Pursuantly, in the same month, the Federal Reserve cut its benchmark interest rate to near zero, in an action which is anticipated to permeate through the banks to the banking public, availing low-interest loans to US companies, thereby cushioning them against the effects of the pandemic. Commendably, Zimbabwe has followed the same internationally prescribed recession-proofing model, announcing a ZW$18 billion Economic Rescue Package for distressed companies, as well as trimming the RBZ lending rate from 25 per cent to 15 per cent annum.

The positions taken by the USA Federal Reserve and the Government of Zimbabwe are synonymous with authorities anticipating a recession and implementing necessary defences to avoid the recession from degenerating into a depression. The potential increase in money supply in the USA, on account of the stimulus package and the cheap loans, compounded by the possible printing of money to stimulate demand, may trigger the deflation of the United States dollar. This will bring about an investor exodus from the currency to the customary investor havens, in the form of Gold and Real Estate, as has already begun.

In lieu of this, there is room for Government, through the Ministry of Mines and Mining Development, to identify the potential returns inert within the Gold price trend, and position itself ideally, by means of appropriate policies, to harness the gains. This is particularly so given the likelihood of a converse fall in the prices of Base Minerals, Precious Stones, and Semi-Precious Stones, whose prices are, for the most part, associated with the levels of industrial activity and relative per capita level income in world economies.

Cognisant of the short term nature of the Gold price rally, which is forecast to peak at about US$58 per gram in 2021, measures instilled by Government to ramp up Gold output would have to be of immediate impact. This thereby points to targeting of the small scale gold sector, whose activities are less capital intensive and therefore require less long-lead investments; but whose work efforts notably contribute approximately 60% of Zimbabwe’s total gold output. The government has set aside ZW$1 billion from the Economic Rescue Package for the mining sector, with a healthy portion of the fund expected to benefit the small scale sector. However, despite the financial support, there is still consensus within mining circles that gold submissions to Fidelity Printers and Refiners (27.6 tonnes in 2019) may only represent about 50% of the gold output being achieved from the country. It is therefore apparent that the first port of call for Government would have to be the plugging of gold leakages. If achieved, this alone could double gold submissions to the country’s sole gold buying and marketing agency, without necessarily increasing mining activity from current levels.

Sentiments from the miners are that for the Government to achieve this it is imperative to revisit the Reserve Bank of Zimbabwe foreign currency retention policy.

Sentiments from the miners are that for the Government to achieve this it is imperative to revisit the Reserve Bank of Zimbabwe foreign currency retention policy. This was identified as a significant contributing factor to the smuggling of Gold out of the country. RBZ currently retains 45% of the foreign currency earned by miners from the export of Gold, replacing it with an equal amount in Real Time Gross Settlement, calculated at the Inter-Bank rate. This, however, submits miners to foreign exchange losses on account of the disparity in exchange rates between the RBZ and the parallel foreign exchange market. At current rates of approximately ZW$25: US$1 at the Inter-Bank market, and ZW$50: US$1 at the parallel market, and a gold price of about US$52 per gram, a miner stands to lose about ZWL$585 for every gram of Gold sold to FPR, as opposed to going the illegal Gold buyers route where they receive full payment in hard currency. It is, therefore, a no-brainer as to why a miner, keen extract all possible value from his hard-earned Gold, would opt for the risky illegal route over the Government regulated one.

The RBZ, therefore, needs to assess the gains made from maintaining the foreign currency retention policy at the status quo, against the potential losses being incurred through the smuggling of gold out of Zimbabwe to the benefit of other countries. With pleasant times for Gold prices potentially on the horizon, the Government may need to consider easing from its hardline stance on the foreign currency retention policy and parleying with the miners to the end of finding mutually amenable ground and plugging Gold leakages. This is necessary if the Government is to allow Zimbabwe an opportunity to benefit fully from its Gold resource in the times ahead.

 

Mines Ministry and OBF sign MOU

TEPE
-
0
Mines Ministry and OBF sign MOU

Minister of Mines and Mining Development, Winston Chitando and Zimbabwe is Open for Business Forum (Pvt) Ltd, Represented by Nyaradzo Tongogara signed yesterday signed a MoU towards increased investment for the mining sector.

According to Mines and Mining Development Ministry, the MoU seeks to unlock the mineral value in Zimbabwe and increase revenue and foreign currency inflow as the Ministry works towards a US$12 Billion mining Industry by 2023.

See documents below:-

Mines MOU

 

 

Blanket boosts gold production

TEPE
-
0
Blanket boosts gold production

CALEDONIA Mining Corp. registered a strong showing in the first quarter of its 2020 financial year as operating and market circumstances combined favourably – perhaps for the first in a long time for the company.

The importation of more reliable and cheaper power had reduced the potential for operational disruptions at the firm’s Blanket mine which reported a one-fifth increase in gold production of 14,233 oz (Q1 2019: 11,948 oz).

Conditions also improved for Blanket’s employees with the adoption of interbank rate introduced by the Zimbabwean government early in 2019 which eases inflationary pressure on the country.

The market overlay was also supportive. The higher dollar gold price year-on-year contributed towards a 48% increase in gross revenue. The upshot was after lower all-in sustaining costs the company booked 57.3 cents in adjusted basic earnings per share compared to 44.2c/share in the first quarter of its 2019 financial year.

Net cash from operating activities was $10.7m, a two-thirds increase on the $6.3m a year ago taking net cash and cash equivalents to $13.8m as of end-March which compares to the $8.9m position as of December 31.

Caledonia announced a 7.5c/share dividend, a 9.1% increase on the previous dividend paid in October. Future dividend payments would depend on production – which the group did not think was especially vulnerable to the COVID-19 pandemic – and whether new investment opportunities turned up elsewhere in Zimbabwe. During the quarter, the firm bought an additional 15% shareholding in Blanket increasing its stake to 64%.

Steve Curtis, CEO of Blanket, said the future looked positive for the company, but plans to expand Blanket to 80,000 oz/year by means of the Central Shaft project had been complicated by travel and border restrictions brought on by COVID-19.

“Work on Central Shaft continued throughout the lockdowns; however, completion of the project requires specialised equipment and contractors to travel to Blanket from South Africa which under the restrictions is not currently possible,” said Curtis.

“This has not yet resulted in a significant delay to the project and we are receiving a high level of support from the Zimbabwe government to address these issues with the relevant authorities in South Africa,” he said.

Gold production to slump

TEPE
-
0
Gold production to slump

GOLD production in the small-scale mining sector is projected to drop by 29% to 12 tonnes this year due to disruptions caused by COVID-19, an official has said.

The sector, which accounts for more than 60% of gold deliveries to Fidelity Printers and Refiners — an arm of the Reserve Bank of Zimbabwe — last year produced 17 tonnes of gold while major gold producing mines produced 10 tonnes.

In total, the country’s gold output fell 17% in 2019 to 27,66 tonnes, down from 2018’s 33,29 tonnes, according to the central bank, contributing about 37% to mineral exports, down from 43% recorded in the previous year.

The decline was attributable to electricity shortages, gold leakages and inadequate equipment for small-scale miners.

Zimbabwe Miners’ Federation (ZMF) chief executive officer Wellington Takavarasha told NewsDay Business that the miners were struggling to source critical consumables such as explosives due to the COVID-19-induced lockdown.

“We are not sure as of when the COVID-19 will end. At the moment, small-scale mining companies are operating but at low levels while on the other hand prices of gold are not good,” Takavarasha said.

“Some of the miners are not operating. Last year, small-scale miners managed to produce 17 tonnes of gold and in March this year, they produced only one tonne. From these statistics, we are likely to close the year at 11 or 12 tonnes, thereabout,” he said.

Takavarasha said miners were struggling to get consumables such as explosives due to restrictions effected by supply countries such as China and South Africa.

ZMF is an umbrella body for small-scale miners in the country.

Countries around the world have enforced lockdowns and travel restrictions to combat the spread of COVID-19, crippling economies in the process.

The disease has so far killed more than 285 000 people from 4,2 million confirmed cases with Zimbabwe recording four deaths from 36 confirmed cases.

Gold is one of Zimbabwe’s biggest foreign currency earners, having accounted for US$1,3 billion in annual forex receipts in 2019, translating close to a third of total export earnings.

Last year, President Emmerson Mnangagwa launched a strategic roadmap to propel the country’s mining sector to a US$12 billion industry by 2023.

However, the target is under threat due to COVID-19.

Under the mining roadmap, gold is expected to contribute US$4 billion, platinum US$3 billion, while chrome, iron, steel, diamonds and coal contribute US$1 billion.

Lithium is expected to contribute US$500 million and US$1,5 billion will come from other minerals._Newsday

Chegutu Covid-19 case #36 is a small scale miner

TEPE
-
0
Chegutu Covid-19 case #36 is a small scale miner

Chegutu reported Covid-19 case #36 has been confirmed to be a small scale miner. Sources told Mining Zimbabwe the mine worker tested positive to Covid-19 after being tested at his workplace in the Pickstone area of Chegutu district.

The Ministry of Health and Child Care (MHCC) in its daily reports yesterday stated that a 30-year-old male resident of Chegutu district had no recent history of travel or any known contact with a person with respiratory symptoms. The man was referred for (Polymerase Chain Reaction) PCR testing after testing positive on a screening test conducted at his workplace using a Rapid Diagnostic Test (RDT).

Sources who are mine owners confirmed the aforementioned was a worker from one of the claims close to them. They reported the 30-year old tested positive and had to be referred to MHCC for more tests.

Zimbabwe Miners Federation President Ms Henrietta Rushwaya applauded efforts by mine owners for carrying out RDT tests on their workforce and advised miners to adhere to stipulated WHO guidelines.

“We encourage mine employers to take it upon themselves in ensuring that lockdown stipulated rules are adhered to and all WHO guidelines are followed. We are not out of the woods yet and we need to continue maintaining the social distance, wash hands with soap, wear masks and stay at our workplaces. We applaud the efforts made by fellow miners who are carrying out RDT tests at workplaces. We are in this together and we can only overcome this novel pandemic by adhering to regulations”.

MHCC reported that the man is asymptomatic, self-isolating at home with mild disease. Following the Covid-19 diagnosis, the Ministry said that it is now seized with contact tracing being assisted by the patient himself. The Ministry identified 7 of his contacts and these will be tested for Covid-19 in line with MHCC intensified surveillance strategy.

The Pickstone area is an active mining zone with one of Zimbabwe biggest gold producers Pickstone Peerless. The gold-rich area also has a lot of small-scale gold miners.

Zimbabwe like most countries globally is currently fighting to contain COVID-19 virus. To date, Zimbabwe has 36 confirmed cases, including nine recoveries and four deaths. The public is, therefore, being encouraged to adopt a number of behaviours that prevent contracting COVID-19.

COVID-19 preventive behaviours include:

• Avoid close contact with anyone with a cold or flu-like symptoms.
• When coughing and sneezing cover mouth and nose with tissue paper or flexed elbow- throw away the tissue immediately and wash hands
• Maintain a distance of at least a meter from the next person
• Use of Protective clothes at all times in workplaces.

We at Mining Zimbabwe wish each new day brings the miner closer to a full and speedy recovery. Get well soon Comrade!

BREAKING: Fatal accident at Vumbachikwe mine

TEPE
-
0
BREAKING: Fatal accident at Vumbachikwe mine

A Vumbachikwe mine leader fell to his death at Vumbachikwe Mine this afternoon. Mr Mlazi the general manager confirmed the development but could not divulge more information.

“Yes it is true someone passed away but I cannot comment further please call tomorrow morning,” he said.

Reports coming through say the miner fell into ore pass and died.

More to follow… 

Artisanal miner killed colleague over US$20

TEPE
-
0
Artisanal miner killed colleague over US$20
AN artisanal miner at Gasela homestead in Hope Fountain allegedly fatally axed a colleague following a dispute over money.

This was heard by Bulawayo magistrate Shepherd Mjanja on Wednesday when Samson Ncube (29) appeared in his court charged with murder.

He was not asked to plead and was remanded in custody to May 20.

The court was told that Andrea Moyo (36), now deceased, and Ncube were employed at Central Sourdale Mine, Douglasdale in Bulawayo.

It is alleged that sometime in April this year, the two had a misunderstanding over sharing money, resulting in a fist-fight.

On May 3, Ncube and Andrea were in the company of five workmates and went to Siphilazima shops to convert US$20 into local currency so that they could share.

Andrea and Future Moyo later returned to the mining site and retired.

Ncube and the four co-workers followed the duo to the mining site. Ncube axed Andrea once on the head, killing him instantly. Future, who was sharing the cabin with the deceased reported the matter to the police, leading to Ncube’s arrest.

Source – Newsday

Employers given 14 days to have workers tested

TEPE
-
0
Employers given 14 days to have workers tested

All employers of reopened businesses have 14 days from today to have themselves and their staff screened and tested for Covid-19, in terms of an amendment to the lockdown regulations gazetted yesterday that implement Tuesday’s Government policy of allowing testing to be postponed.

The Health Ministry will arrange the times and places for testing if contacted by employers.

The testing was postponed after most employers reported at the beginning of the week that there were problems in finding test kits or arranging testing, hence the more central role the Government is now taking to help arrange tests.

The amendment, in Statutory Instrument 102, the seventh amendment to the original lockdown regulations, and issued by Minister of Health and Child Care Obidiah Moyo, states that the tests must use the rapid results diagnostic test or any other test approved by the minister.

The regulations assume that businesses open from today, although the 14-day clock starts from a later re-opening date if a business can prove to an enforcement officer that they did open after today.

Employers may arrange, said the amendment, with enforcement officers for the testing to take place at an agreed time at the workplace or at any other agreed place, and to make these arrangements they may contact the Ministry of Health Call Centre or the Ministry of Information Call Centre;

The Health Minister can also order retesting done at intervals of not less than 30 days.

In the meantime, employers have to ensure that staff entering their premises have their hands sanitised and their temperature checked.

Evidence of tests has to be documented and produced on demand to enforcement officers. Businesses which fail to prove staff were tested within 14 days from today, or from the actual re-opening if this was later, can be closed and staff sent home within the hour. The business cannot then re-open until all staff deemed exempted from the lockdown have been tested and proof can be given.

Anyone hindering an enforcement officer, or any employer staying open after being ordered to close, is guilty of an offence and this can attract the standard lockdown breach penalties of a fine up to level 12, imprisonment up to a year, or both.

Minerals should never leave Africa raw

TEPE
-
0
Minerals should never leave Africa raw

Former Kenyan Prime Minister Raila Odinga has said that the post-COVID-19 era should teach Africa to be innovative and business-minded that it won’t export raw minerals but processed ones.

By Rudairo Mapuranga

Speaking through his official Twitter handle the High Representative for Infrastructure Development in Africa said although on paper Africa is the richest continent, the reality is the saddest one which needs to be addressed.

“Africa is the richest continent on earth with regard to raw materials.

The paradox is that it is also the poorest in terms of the living conditions of its people.” He said.

The former Kenyan head of cabinet said that Africa instead of exporting raw minerals and importing processed ones, it should start to export minerals in their processed form.

“Instead of exporting iron ore, copper ore, bauxite, we must export steel products, copper cables, bars, sheets and aluminium.

Even gold, diamonds and crude oil should never leave Africa as raw materials for industry in other continents.

Africa has a historic opportunity, born out of historic tragedy, to put an end to our tradition of importing everything and producing nothing.” Odinga Said.

According to Odinga, the post-Corona Virus pandemic era should awaken Africa from being a consumer to a producer.

“The post-COVID-19 era creates opportunities for job creation in manufacturing, service sector including ICT, food production and infrastructure development.” He said.

As the calls for processing of raw materials get louder in 2015 a Congolese researcher Kambalé Mirembe made similar points during an address, also highlighting dependency on raw materials as a source of vulnerability. In his presentation, entitled “Does growth contribute to development?”, he pointed to the stable macro-economic situation in his home country, the Democratic Republic of Congo. The figures show that, despite an average growth rate of 5% over the last five years, predicted growth in the region of 8.4% in 2015, and an abundance of mining resources, inequality remains persistent in DRC.

As well as stressing the importance of local processing, Mirembe also called on all countries that receive an income from mining activities to come together to form a dedicated grouping similar to the Organization of Petroleum Exporting Countries (OPEC), with a view to influencing global prices and markets for these materials. “Why has nobody considered this before?” he asked.

1...594595596...724Page 595 of 724