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Zororo Makamba becomes first COVID-19 victim

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Zororo Makamba becomes first COVID-19 victim

Prominent Media personality Zororo Makamba became Zimbabwe’s first casuality of Coronavirus also known as COVID-19. Zororo was one of the two reported by the Minister of Health and Child Welfare Mr. Obedia Moyo to have positively tested for the virus. He was 30.

Popularly known for his eye-opening “State of the Nation with Zororo Makamba” the Media sensation touched on current affairs in the country which earned him respect in his own right.

He was the Director and Co-Founder of Eleven Dogs, a digital media and broadcasting company. He previously worked as a Public Relations Executive at Telecel Zimbabwe as News & Broadcasting Assistant at United Talent Agency in New York. Makamba was also known for hosting several radio shows on ZiFM Stereo which include Impact and the Telecel Chit Chat show. Makamba was also a judge, alongside business mogul Philip Chiyangwa, on a Zimbabwe Broadcasting Corporation television programme called My Own Boss.

Minister of Information, Publicity and Broadcasting Services, Monica Mutsvangwa expressed sadness at the passing of Zororo Makamba.

Below is her full statement

I have received the news of the passing on of Zororo Makamba with great shock, extreme sadness and deep sense of shock.  He is a victim of the worldwide pandemic that is Covid-19.

As the Minister of Information Publicity and Broadcasting Services, I constantly and continuously worked with Zororo on his much-watched and greatly appreciated State of the Nation program on Zimbabwe Television.

He was a young intelligent and dynamic man that infused talent and passion for his work with intense patriotic pride. He always exuded that confidence in the face of daunting challenges.  He communicated with promise and hope in the economic prospects of his beloved Zimbabwe.

I extend my sincere condolences to the Makamba family as well as to relatives and friends of Zororo Makamba.

Zororo will be sorely missed! MHSRIIP

As we mourn him the whole nation should take the threat of COVID 1 very seriously. Let’s all follow due medical precautions as announced by the Ministry of Health and by the World Health Organization.

Monica Mutsvangwa 
Minister of Information,  Publicity and Broadcasting Services.

 

 

 

ZMF statement on Coronavirus

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ZMF statement on Coronavirus

Zimbabwe Miners Federation stands in solidarity with the world during this tragic time as millions of people across the world are faced with fear, uncertainty, and panic. I urge the Zimbabwean public at large specifically miners who are our concern to adhere to the hygiene practices put forward by the World Health Organisation (WHO) and our local Ministry of Health, although it appears the spread of Corona has been significantly slower to spread in our region this does not exempt us from taking the necessary precautions required to keep Corona from spreading across our Nation.

Corona known as COVID-19 is an infectious condition, which means it can be spread, directly or indirectly, from one person to another and primarily involves infection of your upper respiratory tract (nose, throat, airways, lungs)
first identified in Wuhan, China, in December 2019.

Let us observe the precautionary measures stipulated by WHO, such as social distancing, avoidance of large crowds and gatherings, avoidance of bars and restaurants, crowded retail stores, we urge miners to practice caution when
using public transport, visiting family and friends, avoid handshakes, please ensure that washing our hands becomes a priority, maintaining distance while talking to others, drinking lots of water, using Sanitisers and Sanitising surface areas around us. During this period we should seek to read, exercise, video call, and WhatsApp reflect and work in small numbers where possible or stay at home.

Should you fear contraction of the virus immediately contact your doctor and follow prescribed medication to help stabilize your condition as there is currently no known vaccination. Let us not rely on myths but on actual measures prescribed by the WHO and the designated Ministry of Health in our country as the world seeks to find a vaccine.

I urge all Miners across Zimbabwe to continue mining operations whilst adhering to the health measures suggested by government and call for quick action in the event someone is believed to have contracted the disease by visiting the nearest clinic and all those who have come into contact with the said person to also visit the clinic and undergo quarantine to help stop the spread of the virus.

We also implore the government to intervene on the issue of profiteering on sanitisers as it has become a necessity in helping to stop the spread of Coronavirus. We also seek government and donor assistance for the allocation of
medicines that assist with flue symptoms and pain relief in clinics located in the vicinity of large groups of miners, we also request donations of sanitisers and masks for our miners across the Nation.

As ZMF we are in prayer for all those quarantined and all of us to be kept safe from this deadly virus, Let us seek God’s grace to heal the world and keep us safe.

I thank you all…

FOR AND ON BEHALF OF THE ZIMBABWE MINERS FEDERATION

Henrietta B Rushwaya
ZMF President

Locals must benefit more from gold deposits

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Locals must benefit more from gold deposits

AS consultations for the new Economic Empowerment Act continue countrywide, people from Matabeleland South province have called for protective clauses to empower locals to benefit more from vast gold deposits in their areas. 

The province has rich gold reserves in areas such as Gwanda, Insiza, Matobo, Umzingwane and Mangwe districts where large and small-scale miners are operating. The province is also one of the major contributors to gold deliveries to Fidelity Printers and Refiners, whose export proceeds anchor a greater part of forex requirements for the economy.

On Friday, the Ministry of Industry and Commerce held a meeting here with stakeholders seeking their input on the proposed law, which replaces the old indigenisation and economic empowerment law.

Speaking during the meeting, stakeholders said the 51-49 percent shareholding threshold must be applied to the gold sector as Matabeleland South province was rich in that resource. 

They complained that policy gaps had resulted in foreign investors benefiting more from exploiting minerals in the province while locals were excluded.

“The Indigenisation and Empowerment Act only set the 51-49 percent threshold to apply to platinum and diamond and gold was left out. We want the new Act to involve gold in this threshold because in places like Matabeleland South we mainly have gold and people from outside the province are hugely benefiting from it while locals are not benefiting from the resources, which are in their area,” said Gwanda Rural District Council chief executive officer, Mr Ronnie Sibanda.

He also said that funds under the Ministry of Industry and Commerce should be decentralised to districts and provinces. Gwanda Community Share Ownership Trust administrator, Mr Coaster Nkala, said the new Act should compel companies especially those in the extractive industry to remit 10 percent to the community through CSOT’s.

He said some mining companies were refusing to give anything to the community as the current legislation did not compel them.

Mr Nkala said Section 13 of the Constitution demands that Government should facilitate that people benefited from their local resources. As such, he said the Act should empower women and the youth as well.

Mr. Nqobizitha Sibanda who is a member of the business community said corporate social responsibility should be a must under the Act. He said the province had a number of big companies but the areas they were operating on had poor roads, schools, and clinics. 

“Harmonisation of policies has remained a challenge within ministries. Policies that we come up with have to be harmonised with policies in sister ministries so that they don’t clash. Tendering also has to be decentralised,” he said. “At the moment everything is centralised in Harare, which gives suppliers based there greater advantaged compared to local suppliers. This hinders local suppliers from growing.”

The ministry’s director for legal services, Mr Never Katiyo, said the proposed empowerment law was meant for Government’s economic transformation drive.

“It was the decision of the Cabinet to come up with the Economic Empowerment Act, which will replace the Indigenisation and Economic Empowerment Act that had loopholes. 

“As the Ministry of Industry and Commerce we were tasked to carry out consultation meetings in various provinces in order to solicit views on what different stakeholders want included in the new legislation,” he said in an interview. 

“Matabeleland South is the 9th province that we are visiting. We are at the stage of coming up with principles of the Act.”

Acting director for economic empowerment in the Ministry of Industry and Commerce, Mr Michael Fungati, said Government officially amended the Indigenisation and Economic Empowerment Act through amendments contained in the Finance Act of 2018. 

“The amendments have, however, left a gap in legislation regarding the subsidiary legislation and regulations that fell under the purview of the Indigenisation and Economic Empowerment Act. In line with the national vision of catapulting the economy to an upper middle-class status by 2030 and the mantra ‘Zimbabwe is open for business’, an urgent need arises for the gaps in legislation to be addressed.

“The Indigenisation Empowerment Act is being repealed not only as a result of Government changes in policy on indigenisation laws but in line with global trends of development to address legislative gaps that exist regarding economic empowerment,” he said.

Mines and Mining Development provincial head, Mr Tichaona Makuza, said purpose of the proposed law should clearly outline and specify who needed to be empowered. — @DubeMatutu

Zimdaily

The Chrome Mining Sector Dilemma

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The Chrome Mining Sector Dilemma

Globally, Zimbabwe is the second richest country after South Africa in untapped chromium reserves yet locals (small-scale chrome miners and contractors/tributors) along the Great Dyke live in abject poverty with vast areas custodian to the resource remaining heavily under-developed.

By Martin Chitohwa (MBA)

I have read many articles from the responsible authorities and other publishers blaming the lack of development in the Chrome sector. Most highlighted issues include but not limited to, sanctions, restricted payment terms, poor rail and road infrastructure, lack of foreign currency, logistics issues, lack of environmental, safety and technical support from responsible authorities, predatory pricing by smelting companies towards their contractors/tributors and their contractual conditions especially with Zimasco, government policies and their inflexibility towards minerals marketization and in-country beneficiation, in-adequate or lack of financial support (undercapitalization) towards local claim holders and so on.

The list of problems is endless but strategies and actions to abate this crisis that has been haunting the sector for many years are shortcomings. Most of the problems listed above will not be averted if Zimbabwe continues with its heavy reliance on a single market (China), which again is a result of government policies that are not flexible when it comes to mineral marketization. As long as our state enterprise (MMCZ) remains restricted, local producers will never see the light of day as predatory pricing by buyers who only sell to the single market mention earlier will continue to take advantage of the situation. Buyers from other markets available and more can be made available if there is a policy change that can allow MMCZ to be circumvented. This policy change can be temporary to allow capital built -up by local producers since proceeds will be repatriated back into Zimbabwe which will make our government fully realize their share if special tax rules are applied fairly (win-win scenario).

For local producers to get back into the game, a financial instrument has to be put in place whereby credible local bank(s) have to assume ownership of the debt from international funding structures, which can be made available to such local but privately owned projects. A committee can be put in place to work closely with the funders and local bank(s). This fund has a three-year grace period and up to 40 years to pay back the principal plus interest (at max. 5%). It will be the bank’s responsibility to service the loan and as well as lending the funds to local small scale miners (more details can be made available). If serviced well and in a shorter period, the same fund together with savings from local small scale producers can be made available for the construction of a locally owned beneficiation plant.

As for the biggest smelters in Zimbabwe, especially Zimasco and ZimAlloys, seem to have a soft spot with our local authorities thereby hurting the well-being of the sector as a whole. They happen to have the majority of prime land, outdated furnaces, dedicated power for those furnaces, proceeds from exports of chrome concentrates and yet they are failing to change their modus operandi to make a difference in the sector. Predatory pricing of the commodity is rife by these two companies. Most contractors/tributors especially in the north and middle Dyke under Zimasco where chrome seams are narrower and more costly to mine are heavily indebted to the mother company which means they will continue to service unsustainable debt until they crumble. The whole structure is designed to suppress contractors. As of January 2020, produced ores by contractors under Zimasco were tagged at US$43 on paper but in reality, they translate to 50% RTGS$ which is $21.50 and 50% US$ which US$21.50 (bank rated at prevailing rates and disbursed in RTGS$). As for January 2020, a ton averaged ((RTGS$21.50 +  (US$21.50 × RTGS$16 = RTGS$344) = RTGS$365.50/ton)) if overall grade is above 43% with no chrome fines. Consumables such as explosives have exchange rates applied in their totality, for example, a box of shock tubes (detonators) is sold to the contractor at RTGS$8,000. For a contractor to break-even under these circumstances needs to produce on average 50 tons per month which is far fetched for many of them due to lack of geological survey by mother company of the area being mined, capital to upgrade operations, labor constraints since most are leaving for greener pastures in the gold sector, etc. This analysis is a drop in the ocean, a lot of negative deeds by mother companies are hampering progress in this sector.

Elluvial concentrates processing contracts are 99% extended to the Chinese operatives who are paid a meagre US$25-35 per ton locally for local high-grade chrome concentrates and who knows what happens to the rest of the proceeds from off-shore. Proper audits directed to these large smelting companies will leave responsible authorities no choice in forcing their hand to have these corporates apply full capacity utilization, enact mandatory investment in modern ferrochrome production technologies that will inhibit exportation of raw concentrates and chrome ore, and apply favorable contractual agreements with tributors that will give them reprieve and the edge to do more thereby improving the sectors’ competence in the mining industry.

 

This article first appeared in the March 2020 Issue of the Mining Zimbabwe Magazine

Zimbabwe confirms first positive case of Coronavirus

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Zimbabwe confirms first positive case of Coronavirus

Minister of Health and Child Welfare Dr. Obadiah Moyo has confirmed Zimbabwe’s first positive case of Covid-19 also known as the Coronavirus.

In an address late Friday the Minister said, “This evening Friday the 20th of March 2020, the National Microbiology Reference Laboratory confirmed that a suspected case of Covid-19 had tested positive. The patient was in self-quarantine at home after traveling from the UK” 

The patient a 38-year-old Caucasian male resident of Victoria Falls, who had traveled to Manchester, UK on the 7th of March 2020 returned home on the 15th of March 2020. The Minister explained that the patient self quarantined, contacted his General practitioner by phone after coughing and extreme sneezing. The GP in-turn contacted the Covid-19 Rapid response team who responded and assessed him then recommended he keeps himself is self isolation. Specimen were collected and taken to reference labs for testing.

Watch the address by the Minister.

Chitando updates Parly on Mining progress

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Chitando updates Parly on Mining progress

Minister of Mines and Mining Development, Winston Chitando has given a mining progress report to the house of assembly in which the government has aspirations to achieve the $12 billion by 2023  and also the possible implications of EPO’s with respect to that achievement.

The Minister said the 2019 mineral revenue was $3, 2 billion up from $2, 9 million in 2018.

“The $12 billion milestones for 2023 were set on detailed projections and targets by minerals. The Hon. Members asked for an update and projections and I hereby respond, giving that update and projections by mineral. Gold output increased in 2018 to 33 tonnes compared to twenty-six and half tonnes in 2017.  There was, however, a decrease to 27, 6 tonnes in 2019.  A number of interventions are being put in place to ensure there is an increase in gold deliveries not only 2020 but to achieve the 100 tonnes target by 2023.   A detailed statement on gold will be released before the end of April,” he said.

“Diamond sector performance – diamonds are expected to contribute $1 billion towards the $12 billion target for the mining industry by 2023.   A $165 million was realised from the diamond sector in 2019 compared to 98 million in 2018.  The following are interventions being put in place to achieve an increase in 2020 and achievement of the $1 billion by 2023.”

Chitando said  ZCDC is earmarked to sustainably increase production. He said in line with the diamond policy Anjin has started production;

“ARUSA which is the largest producer of diamonds in the world in already on the ground evaluating a number of sites to commence production;  and   Government is working on improvements in the marketing framework. The platinum industry is expected to contribute $3 billion as part of its contribution towards the $12 billion mining industry by 2023.  This contribution is centered on expansion and new production as follows:-the three producers being Unkie, Zimplats and Mimosa are all undertaking expansion and optimisation projects,” he said.

“Great Dyke investments have started opening a mining area and it is scheduled to produce its first concentrate in 2021. Carol Resources are ready to commence project work on the 1st portal having undertaken extensive evaluation work. Bravura is on the ground undertaking evaluation work.  Discussions with Todal are advanced for them to get into project phase; actually they had a board meeting sometime this week – that is on the PGM sector.”

He said the chrome, nickel and steel sector is earmarked to achieve $1 billion by 2023.

“This achievement will largely be through increased falcon production from 369 000 tonnes of ferrochrome in 2018 to 1, 1 million tonnes in 2023.  Various expansion projects are underway by ZIMASCO, ZIMALLOYS, JINAN and AFROSHEEN and a few other players,” Chitando said.

“Since the launch of the $12 billion milestones, three new furnaces have been completed, operational and ready for official commissioning.  Government has now released additional mining ground to an additional ore to be generated to feed the smelters.”

He said the next sector is on coal, coal and hydrocarbons is targeted to contribute $I billion towards the $12 billion target by 2023 and this achievement is underpinned by two main initiatives.

“Increase in coke production, from 300 000 tones in 2018 to 2,1 million tonnes in 2023. Increase in thermal coal production for electricity generation. Massive success has been achieved in this sub-sector as follows; A new coke oven battery was commissioned late last year; Three new mines will be opened this year, and three new coke ovens are under construction,” he said.

“The next sub-sector is lithium. The milestone for lithium is $500 million by 2023. Bikita Minerals is in steady production whilst project work at Kamativi and Arcadia lithium is going quite well. A US$1, 5 million targets was set for other minerals. This will be achieved through a number of initiatives on various minerals but specifically, there will be a launch in the next two months of an initiative in granite and gemstones.”

“I now turn to EPOs Madam Speaker. The EPO system has been characterised by non-processing of EPOs for a number of years which has reduced the ground available for pegging. A new mining affairs board was appointed and has been directed to review and process all EPO applications with the status.”

He said there are 12 EPOs which are due for renewable and which will be subject to the holders satisfying the original conditions of the grant.

“There are 24 applications which have been processed right now Madam Speaker, and the indications are that there will be significant ground for them to be released as a number of them have not been approved. Thirty applications were gazetted for objections on 11th October, 2019 and now being finalised,” Chitando said.

“There are 30 applications which have already been rejected by the mining affairs body and the respective ground will be freed by mid of April. There are three new EPO applications that have been received since 1st January 2020 but which have not been processed.”

Source Byo24

Mnangagwa reserves mining claims for Warvets

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Mnangagwa reserves mining claims for Warvets

Zimbabwe President has reserved for war veterans, 20% of mining claims in the chrome, nickel and steel sectors in what analysts see as an act of appeasement.

Addressing a post-Cabinet briefing on Tuesday, Zimbabwe Information Minister Mrs. Monica Mutsvagwa said the decision to give mining claims to the veterans of the 1970s liberation war was reached after Mines minister Winston Chitando had proposed that claims ceded by ZimAlloys be re-allocated.

“These claims will be re-allocated to other companies which will receive mining claims to sustain and expand ferrochrome production,” Mutsvangwa said.

“As per government policy, 20% of the ceded claims, being 2 348 hectares of the total ceded claims, which are a total of 11 747 hectares, will be allocated to war veterans. The modus operandi of the distribution of claims to war veterans will be announced in due course.”

Speaking at the same briefing, Chitando confirmed the development, adding that the government was working on the modalities and also working on a chrome development policy.

“In line with the US$12 billion milestone by 2023 in the mining sector, the steel and chrome sector is targeting to achieve one million tonnes of ore from the 360 000 tonnes we had in 2018.

“In the rollout of the programme, we are looking at synergies between ferrochrome producers and individuals. The government is also working on a chrome development policy that will outline the modalities,” Chitando said.

War veterans have been Zanu PF’s main campaign cogs during elections, propping up the ruling party during the reign of the late former President Robert Mugabe.

Since Mnangagwa came to power on the back of a November 2017 coup, the war veterans have made several demands, claiming their welfare has been neglected.

Source: NewsDay

 

Why Zim is failing to attract FDI despite having vast natural resources?

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Why Zim is failing to attract FDI despite having vast natural resources?

THE importance of having certainty regarding policy and regulatory framework, among other measures, to attract significant investment in Zimbabwe, cannot be overemphasised.

Dumisani Nyoni

The southern Africa nation is endowed with abundant natural resources such as diamond, gold, coal, iron ore, chromium ore, vanadium, asbestos, nickel, copper, lithium, tin, and platinum group metals among others, but alas, it is struggling to attract meaningful foreign direct investment (FDI).

The country’s FDIs averaged US$350 million in the last decade against a Southern African Development Community (SADC) regional average of US$1,2 billion.

Last year, it nosedived further to US$259 million from US$745 million recorded in 2018, according to reports.

But why does a country with such vast natural resources attract so little FDI?

Analysts have identified quite several factors and these include corruption; targeted sanctions; perceptions (the gap between perception and reality); lack of transparency, consistency, and accountability, and ease of doing business, just to mention a few.

Sound legal framework

To improve the investment climate, analysts have said Zimbabwe needs to restore the rule of law and the sanctity of contracts. They say this will require the protection of investments in domestic legal frameworks and through international investment agreements.

“Foreign businesses will be looking for a sound legal framework for investment, which is in turn underpinned by consistent and clear rules and regulations relating to investment protection,” writes Joseph Otoo, a senior associate in Mayer Brown International LLP’s construction & engineering and international arbitration groups.

“This will help to foster legal certainty, particularly in sectors such as energy, natural resources, and infrastructure where significant capital is invested over the long term,” he said.

The government has in the past been accused of interfering in cases that have political overtones through influencing decisions of the local courts.

This has resulted in a lack of trust in the courts and the judicial process.

Corruption

Corruption in the southern African nation has become endemic in the political, private and civil sectors, making doing business in the country difficult.

The Auditor-General’s reports always unearth rampant cases of corruption in both government departments and State-owned enterprises, but nothing had been done to the perpetrators except to ‘catch & release’ them.

The country is the 158 least corrupt nation out of 180 countries, according to the 2019 Corruption Perceptions Index reported by Transparency International.

Policy inconsistency

Policy inconsistency is one of the reasons why Zimbabwe is struggling to attract massive FDI inflows. There is too much discord and incoherence when it comes to policy pronouncements. A good example is the issue of currency.

Both John Mangudya, the central bank boss and Finance minister Mthuli Ncube, have been inconsistent about this issue. Right now it is difficult to tell whether Zimbabwe has abandoned multi-currency regime or not, as some companies are still allowed to trade in forex locally while others are not.

Economist, Reginald Shoko said policy inconsistency creates an environment that is not stable, unpredictable and impossible to plan around.

As such, there is a need for greater policy consistency and re-engagement with international investors if we are to attract investors.

Sanctions

We may argue back and forth but the reality will remain—sanctions chase away capital. The United States of America slapped Zimbabwe with targeted or restrictive sanctions in early 2000 following the land reform programme.

Ever since then, Zimbabwe has been struggling to receive enough foreign direct investment because most firms and companies аге handicapped. For instance, the Industrial Development Corporation (IDC), а wholly State-owned enterprise, which was also put under sanctions, is ailing.

The parastatals had interests in а number of Zimbabwean companies such as Olivine, Sable Chemicals, Chemplex, and Zimbabwe Fertiliser Company. These companies have been under-performing as а result of sanctions as they had no access to credit lines.

As а result of sanctions, Standard Chartered ordered IDC to close its accounts with the bank, further crippling its operations.

Economists have estimated that the country’s state enterprises account for 14% of the country’s GDP, making them а key component of the economy.

Also due to these sanctions, Zimbabwe’s credit ratings are unfavorable.

The targeted sanctions also inhibit investment making it very difficult for private sector companies to engage with foreign investors.

Perception

Zimbabwe’s perception outside there is discouraging. The country is perceived as too poor, violent, backward, among others. In some of his writings, Ritesh Anand, the founder and managing director of Invictus Capital, says many investors who visit Zimbabwe are pleasantly surprised at how peaceful the country is, the state of infrastructure, especially roads and how wonderful and educated the people are.

Anand says international perceptions of Zimbabwe will improve once the country has restored its relationship with its former colonial master, Britain.

“Changing perceptions and restoring investor confidence is key to attracting investment. The lack of domestic liquidity makes it difficult to stimulate growth from within,” he writes.

Lack of transparency & accountability

According to Open Budget Survey 2017, Zimbabwe ranked 23 out of 100 countries in budget transparency, an unimpressive ranking, which has an effect of pushing away investors and external funding.

Open Budget Index can determine the level of funding from non-governmental organisations and world bodies such as the International Monetary Fund and the World Bank. In addition, such openness indices are used by international investors to gauge the level of fiscal transparency in a country.

There is also no transparency when it comes to deals and loans signed by the President and some government ministers.

“Failures to be governed by budgetary constraints have been swept aside by forcing Bills through Parliament to condone excess spending by ministry officials, exposures of corruption by the Auditor General have apparently been set aside by the Attorney General and government officials are free to establish business operations and to use their influence to overwhelm private-sector competitors,” says John Robertson, an economic analyst.

Such problems are seen as severely discouraging, even threatening, to investors, he said.

Government officials are not accountable to anyone. They can do whatever they want to do with public funds and never called to account. This also chases away capital.

Ease of doing business

Zimbabwe has been struggling to attract FDI due to bottlenecks associated with doing business in the country. It is ranked 140 among 190 economies in the ease of doing business, according to the latest World Bank annual ratings. The rank of Zimbabwe improved to 140 in 2019 from 155 in 2018.

The ease of doing business index ranks countries against each other based on how the regulatory environment is conducive to business operation stronger protections of property rights. Economies with a high rank (1 to 20) have simpler and more friendly regulations for businesses.

In a bid to improve ease of doing business, the government came up with a one-stop investment centre, a very commendable development if implemented.

Conclusion

The government should address investor concerns and provide a simpler, more consistent policy framework. Sound regulatory framework to attract significant investment in the country should be crafted and fully implemented. Policy inconsistencies, corruption among other ills should be done away with.

Surely, the country cannot afford to continue singing the blues and chasing shadows when it comes to FDI. The country should take advantage of its natural resources and stop playing second fiddle to other countries in the region.

Finally, Zimbabwe needs to create a favorable environment that includes stable macro-economic conditions, stable political environment, stable currency, stable exchange rate, attractive policies, respect for property rights and rule of law.

This article first appeared in the March 2020 Issue of the Mining Zimbabwe Magazine

Platinum – mining, uses, pricing and regulation in Zimbabwe

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Platinum – mining, uses, pricing and regulation in Zimbabwe

Platinum is a rare metal found in the earth’s crust at 0.005ppm. According to Louis XV of France, platinum is the only metal meant for a king. It is found in iron, nickel and copper ores with other native deposits. Platinum is a noble metal that can withstand corrosion at high temperatures and is least reactive. It is rated 3.5 on the Moh’s scale of hardness, has a melting point of 1768.3 degrees Celsius, a boiling point of 3825 degrees Celsius, the density of 21.45g per cubic meter and molar heat capacity of 25.86J. Platinum is lustrous, ductile and malleable. It has stable electrical properties.

This metal oxidizes at 500 degrees Celsius to form Platinum oxide which can be thermally removed. It also reacts with fluorine at 500 degrees celsius to form platinum tetrafluoride. Platinum does not dissolve in hydrochloric acid or nitric acid but is soluble in a combination of the two (aqua regia) at high temperatures to form chloroplatinic acid. It is attacked by iodine, bromine, chlorine, and sulfur. Platinum has a high affinity for Sulphur which is mostly found in iron ores.

Platinum group ores are treated in primary and secondary crushers. Ball/Rod mills are used in the tertiary stages of comminution. The milled ore is treated in gravity concentrators. In froth floatation, xanthate and dithiophosphate are the collectors used at a pH of 7.5-9. Oxygen is also used in the froth floatation process. The concentrate is dried and rectangular-six-in-line or circular three-electrode furnaces are used to separate sulphides and silicates at 900-1500 degrees Celsius. Air is blown through the furnace to remove iron and Sulphur. Chemical and electrolytic methods are manipulated to remove nickel, cobalt, and copper. Aqua regia is then used to dissolve platinum metal from the concentrate by creating chloroplatinic acid. Finally, ammonium chloride is used to change chloroplatinic acid to ammonium hexachloroplatinate which is heated to produce pure platinum metal.

This metal is used in jewelry, electrical appliances, chemical production, petroleum refining, and vehicle emissions control. Platinum is also used in medicine, biomedicine, glassmaking equipment, anticancer drugs, oxygen sensors, turbine engines, spark plugs, electrodes and even in investment. It is used as a catalyst in the ignition of hydrogen. In the petroleum industry, platinum is used to run naphthas into octane gasoline which becomes rich in aromatic compounds. It strongly catalyses the decomposition of hydrogen peroxide into water and oxygen hence, It is used in fuel cells as a catalyst for the reduction of oxygen. In investment, its bullion has the ISO currency code for XPT. It is also used as a catalyst in the manufacture of silicone rubber and gel components of medical implants.

According to the National Institute for Occupational Safety and Health the recommended exposure limit to platinum salts is 1mg per cubic meter over an 8-hour working day. Exposure to platinum salts may cause irritation to the eyes, nose, and throat. The long term effects may manifest in the form of skin allergies or respiratory complications (The Centres for Disease Control and Prevention).

According to Anglo-American, South Africa produces 88%, Russia 8%, North America 2%, Zimbabwe 1% and the rest of the world produces 1% of all the platinum. Zimbabwe is the second-largest producer of platinum in Africa. Within the great Dyke are four geological complexes that contain PGM and base metal deposits viz; Wedza Complex (Mimosa-Aquarius and Implats), the Selukwe Complex (Hartley and Ngezi Platinum Mines-Zimplats), Unki Anglo-Platinum and Musengezi geological complex. Zimplats has the largest reserves of PGMs in Zimbabwe which are estimated to be 214.3million tonnes. Unki comes second with 48.4million tonnes and lastly Mimosa with 33.2million tonnes.

In an article written by Freeman Makopa for Newsday, platinum is one of the two minerals, along with diamonds in which the local ownership law requiring 51% local ownership still applies. Due to the desperation, Zimbabwe has for investment, this policy is set to be changed in favor of the foreign investors. At Karo Resources event, Mr. Chitando said, “…We will also have a platinum development policy, which will be unveiled soon in the new year, which will provide a consolidated framework of the development of the platinum sector.” The government is said to have signed a $4.2billion platinum investment deal with Karo resources. The project is expected to reach 1.4million tonnes of platinum per year by 2023.

In the agreement signed on 22 March 2018, KARO HOLDINGS was given PGM rights under a special Grant under the Zimbabwe Mines and Minerals Act covering an area of 23 903ha on the Great Dyke in Mashonaland West. This project will comprise of PGM mines, concentrators, smelters, base metal, and precious metals refinery and a power generation capacity (300MW of solar energy) made available to the power grid. Most recently, Karo has completed 238 boreholes comprising of 32400m drilled on the western boundary of the Great Dyke. the Zimbabwe Special Economic Zones Authority has declared a part of Selous measuring 50667ha as a special economic zone (Tharisa Integrated Innovation)

The price of platinum is heavily dependent on its demand in the industry. In cases where demand is very high, the price can go up to twice the price of gold. As at 05 March 2020, the price of platinum is USD32/g.

In a nutshell, platinum’s rarity is associated with exclusivity and wealth. It is essentially used in medicine, biomedicine, glassmaking equipment, anticancer drugs, oxygen sensors, turbine engines, spark plugs, electrodes and even in investment. Platinum is associated with iron, nickel and copper ores. In its final stages of extraction, it is dissolved in aqua regia from which it emerges in its pure form. Zimbabwe is the second-largest producer of platinum in Africa and produces 1% of the world’s platinum from Zimplats, Unki and Mimosa mines whose ore reserves are estimated to be 214.3 million, 48.4million and 33.2million tonnes respectively. The government has been making efforts to improve platinum production in Zimbabwe by making adjustments to the indigenization policy.

This article first appeared in the March 2020 Issue of the Mining Zimbabwe Magazine

Muzarabani to end power shortages in Zimbabwe

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Muzarabani to end power shortages in Zimbabwe

The discovery of gas and oil in Zimbabwe by the Australian Stock Exchange (ASX) listed mining and exploration firm, Invictus Energy is expected to potentially ease energy and power shortages in the country, the company’s Managing Director has said.

According to the Managing Director Mr. Scott MacMillan, the discovery of oil and gas in the country means there is going to be no energy shortages in the country an initiative which will in turn boost production domestically.

“Discovery (of gas or oil) would mean energy independence for Zimbabwe, which is vital for economic growth and prosperity. There is a clear correlation between energy consumption, prosperity and gross domestic production” said MacMillan.

MacMillan also said that the development at the mine will see Zimbabwe relying on its own fuel and electricity which means that 25 percent of the country’s foreign currency will be saved for other uses. He also said that the discovery has the potential to make Zimbabwe a net exporter of energy and power.

“And for a country like Zimbabwe, it would mean that we are no longer reliant on fuel and electricity imports and instead of consuming 25 percent foreign currency importing diesel and petrol if enough is discovered we can turn into a net exporter,” he said.

Mac Millan also said that the country can become a powerhouse in the region with its discoveries of gas and oil given that South Africa and Zambia are currently struggling to provide sufficient power to meet their domestic demands.

“If the two commodities were discovered in Zimbabwe, it would take between three and four years for the country to start benefiting from resources, which would entail economic growth, tax, royalty and export revenue as well as jobs and emergence of downstream industries among others,” MacMillan said.

The oil and gas mining firm has already made a convincing discovery of oil and gas at its Muzabani project in Mt Darwin using advanced exploration technology which has made its finding to be a very positive outcome.

According to the company, it is working towards obtaining requisite equipment for the company to start exploratory drilling to depths of up to 4km.

MacMillan also said that his company will mobilise the equipment from the region where such machinery is available.

The company director said that results analysis done on the source rocks from Muzarabani are indicating that the area has strong potential for gas and oil deposits.

“From the analysis that we did of the source rock, it is capable of generating both gas and oil,” MacMillan said.

“From the analysis that we did of the source rock, it is capable of generating both gas and oil,” Mr. MacMillan said.

According to the company, although geochemical signatures of rock samples from the area bear striking characteristics to similar rock types that have produced oil in Uganda, Kenya and Australia, in Zimbabwe the source rock type will determine whether Muzarabani has gas or oil. The company holds the fact that the test results show the likelihood of more gas than oil.

The ASX listed exploration and mining company said that the possibility that the area has more oil than gas will be determined by the temperatures the source rock has been exposed to while its also a function of how deep it has been buried.

“We have got source rock that has been buried in both gas window and oil window in particular times,” Said MacMillan.

The Invictus boss said unlike when Mobil explored for oil in the 1990s, with its main target being finding petroleum oil, dynamics have since changed over time and Zimbabwe could unlock significant economic benefits even if it found just gas, which can now be easily monetised.

According to MacMillan, when Mobil explored in the 1990s, oil was the major source of energy globally yet preliminary findings from the global giant’s searches then indicated a high probability of conventional gas than oil deposits.

The Invictus managing director said gas was now a major source of energy across the world and with high demand ; it was only a matter of finding the market to monetise the commodity.

Potentially, independent study estimates have shown that Muzarabani could hold anything between 200 billion and 20 trillion cubic feet of the two valuable energy products.

The company believes that it still needs to undertake further works through geophysical tests to narrow risks and identify areas with the highest potential for the existence of oil and gas as well as to high-grade locations that may hold significant deposits.

Mr MacMillan said being a frontier destination in oil and gas exploration there was 1 to 5 and 1 to 10 chance of successful discover of oil and gas, which is why the company was making extensive tests and studies to ascertain the existence of the highly sought after energy commodities.

This article first appeared in the March 2020 Issue of the Mining Zimbabwe magazine

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