As at 16 April Zimbabwe had 24 confirmed cases, including three (3) deaths. Two (2) people have recovered.
Vast Resources raises £600 000 (US$748 000)
• Vast is set to commence operations in Chiadzwa
Aim-listed Vast Resources has raised £600 000 through a placing of almost 400-million ordinary shares of 0.1p in the company at a price of 0.153p apiece.
The placing was undertaken by Axis Capital Markets, which was appointed as a joint broker to Vast.
The cash raised from the placing will be used to maintain the company’s working capital in light of the anticipated conclusion of the Chiadzwa Community Diamond Concession joint venture (JV), in Zimbabwe, and other costs owing to Covid-19 impacts.
Vast in September 2019 signed a JV agreement with Chiadzwa Mineral Resources, which is a company designated to represent the Chiadzwa community interests in the concession. This resulted in the formation of Katanga Mining.
A further JV agreement between Katanga and the Zimbabwe Consolidated Diamond Company, which is a government entity representing the country in the diamond mining sector, is set to be officially signed.
The Chiadzwa Diamond Fields located in Marange are widely regarded as the richest alluvial diamond deposits in the world.
About Vast Resources
Vast is an AIM-listed mining company with mining and exploration interests in Romania and Zimbabwe.
It is focused on the rapid advancement of high-quality brownfield projects by recommencing production at previously producing mines in Romania and commencement of the joint venture mining agreement on the Chiadzwa Community Concession Block of the Chiadzwa diamond fields in Zimbabwe.
The company’s portfolio includes an 80% interest in the Baita Plai Polymetallic Mine in Romania, where work is currently underway towards developing and recommissioning the mine and the Community Concession Block in Chiadzwa, Zimbabwe.
Vast Resources is well known in Zimbabwe as a former shareholder at Pickstone Peerless gold mine and the Eureka gold mine.
It also owns the Manaila Polymetallic Mine in Romania.
Source: Mining Weekly additionals by Mining Zimbabwe
Where is gold found in Zimbabwe
Where is gold found in Zimbabwe?
Gold is found in every district in Zimbabwe.
UPDATE: Forex retention reduction, RBZ apologises for leaked doc
The Reserve Bank of Zimbabwe has released a statement saying that it had not approved a document that had been leaked to the media titled “Macroeconomic policy measures to support the 5-year de-dollarisation strategy”.
The statement reads:
The Reserve Bank of Zimbabwe (the Bank) wishes to advise the public that the document titled “De-dollarisation Road Map” which has been circulating on social media was leaked by a senior Bank economist, Philton Makena, who had access to a document on the macro-economic policy measures to support the five-year de-dollarisation strategy which was being worked on by a team of economists in the Bank. The draft document is not official as it has not even been discussed at both Bank and Government levels. The document should, therefore, be disregarded.
The draft document was being worked on by the team of economists on a computer allocated to a chief economist in the Bank, Paul Gilmour Mukoki. The Bank has since established that Mr Mukoki was not responsible for the leakage of the document.
Mr Makena’s conduct amounted to breach of the oath of secrecy by which all Bank employees are bound. Accordingly, the Bank has suspended him, with immediate effect, and has commenced disciplinary proceedings against him.
The Bank sincerely regrets the anxiety and inconvenience the leaked document may have caused”.
Mining Zimbabwe earlier today published this article in regards to the leaked document. We would like to advise our readers to disregard the article as it is not the official position of RBZ yet and would like to apologise for any inconvenience caused – Editor
Prospect Resources signs MOU with Sibelco
African lithium developer, Prospect Resources Ltd is pleased to announce that it has entered into a Memorandum of Understanding with SCRSibelco N.V for the offtake of Arcadia’s ultra-low iron petalite product.
Memorandum of Understanding
The purpose of the MOU is to provide an exclusive period of time for the parties to negotiate and execute a Binding Offtake Agreement for Arcadia’s ultra-low iron petalite product. The MOU contemplates signing the Binding Offtake Agreement by 1 June 2020.
Whilst Prospect and Sibelco have agreed not to deal with any other party in relation to the supply of ultra-low iron petalite, nothing in the MOU prohibits Prospect from continuing discussions with the Uranium One Group.
Prospect’s Executive Chairman, Hugh Warner said “I am pleased to announce that we have signed an MOU with Sibelco for Arcadia’s premium ultra-low iron petalite. Sibelco is the largest distributor of ultra-low iron petalite in Europe and possibly the world. It is a significant ‘blue-chip’ European customer, with an annual turnover of some €3.5 billion. Once in production, Prospect will be the largest ultra-low iron petalite producer in the world.”
Lithium
Lithium is a soft silvery-white metal which is highly reactive and does not occur in nature in its elemental form. In nature, it occurs as compounds within hard rock deposits (such as Arcadia) and salt brines. Lithium and its chemical compounds have a wide range of industrial applications resulting in numerous chemical and technical uses. Lithium has the highest electrochemical potential of all metals, a key property in its role in lithium-ion batteries.
About Sibelco
Sibelco is a global industrial minerals solutions company. Sibelco was founded in 1872, initially supplying silica sand from deposits in Flanders to Belgium’s major glass producers. Sibelco is a privately owned family business, generating revenues over €3.5 billion, operating 174 production sites in more than 30 countries and with a team of over 8,500 people. Sibelco’s main products are silica, high purity quartz and speciality minerals such as petalite. https://www.sibelco.com/
BREAKING: Forex retention for all minerals to be reduced to 15% by 2024
Government has announced that forex retention for all minerals will be to be reduced to 15% by 2024.
In a document dubbed “Macroeconomic policy measures to support the 5-year de-dollarisation strategy,” the government outlines the steps to be taken to a complete de-dollarisation and in it are measures of reducing export retention thresholds to build national forex reserves.
The government looks to drastically reduce forex payments to exporters to 15% by 2024. Miners and Mining companies are by default exporters and are affected by the new measures which were made public on the 15th of April 2020.
GOLD
For the remainder of 2020 Fidelity Printers and Refiners will pay gold miners 55% in foreign currency and 45% in rtgs dollar. The forex retention percentage will be reduced by 10% and increased for the rtgs dollar by 10% yearly until 2024.
Simplified if a gram of gold is fixed at US$50 till 2024
- To December 31, 2020, Fidelity will pay US$27.5 and 22.5 in local currency
- In 2021 Fidelity will pay US$22.5 and 27.5 in local currency
- In 2022 Fidelity will pay US$17.5 and 32.5 in local currency
- In 2023 Fidelity will pay US$12.5 and 37.5 in local currency
- In 2024 Fidelity will pay US$7.5 and 42.5 in local currency
Other minerals
Forex retention for the rest of the minerals will also be reduced to 15% by 2024.
Forex retention
| Mineral | Year 2020 | Year 2021 | Year 2022 | Year 2023 | Year 2024 |
|---|---|---|---|---|---|
| Gold | 55% | 45% | 35% | 25% | 15% |
| Other Minerals | 60% | 45% | 35% | 25% | 15% |
ZELA urges Fidelity to buy gold in US$
The Zimbabwe Environmental Law Association has called for the elimination of gold trade distortions that have persisted during the Coronavirus lockdown, to improve revenue flows into the country’s coffers.
ZELA released the second edition of its weekly Covid-19: Mining Sector and Communities’ Situational Report (SIT-REP) where it noted that due to the fluctuating gold prices small scale miners now prefer the black market.
The report also highlighted that although gold prices have drastically fallen on both the formal and informal market, small scale miners are shunning the government sole buyer Fidelity Printers and refiners (FPR) for part payments in local currency.
The government was urged to scrap payment in the unstable local currency in order ‘to curb criminality, arbitrage, corruption, illicit financial flows and trade of gold on the black market by ASM players’ and effectively increase gold supply.
ZELA’s weekly Situational Report is compiled from updates obtained through a network of 200 community monitors, covering Rwanda, Shurugwi, Zvishavane, Bubi, Penhalonga and Marange focused on women miners, artisanal and small-scale miners and diggers, villagers and mining-affected communities.
“The impact of COVID-19 has been felt in the ASM sector through the uneven, unstable and fluctuating low prices being offered by gold buyers. As on the 6th of April 2020, miners who sold gold to FPR in Harare got US$47 per gram, although the FPR price would be subjected to the 55% in US$ and 45% in RTGS policy.
“This means effectively FPR will be buying at more or less than US$24 per gram. On the other hand, black market buyers were buying at US$39 per gram in Harare, and US$36 per gram in Chinhoyi. All these, prices are lower than US$50 which was being offered before COVID-19 disrupted the supply chain.
“Due to price distortions and FPR policies, many ASM miners end up selling their gold on the black market which fetches a higher price than FPR,” said ZELA.
“To curb criminality, arbitrage, corruption, illicit financial flows and trade of gold on the black market by ASM players for improved revenue generation and allocation to the public health and other social service sectors, Government should scrap the 55% in US$ and 45% in RTGS system for payment to those who sell gold to FPR.”
ZELA also raised concerns over the lack of a prevention and containment strategy for the mining sector as well the impact on community livelihoods, human rights, social well-being, good governance principles and the economy.
It said citizens, must be prepared for any eventuality and government must lead these efforts as currently ‘most provinces and districts lack adequate resources, equipment and health facilities to deal with any cases or to educate the public.’
ZELA also raised concerns over the vulnerability of artisanal miners that ‘work in groups, in crowded gold outcrop areas in gold mining areas without water, toilets and other basic sanitation facilities.’
“Therefore, our concerns on the current situation in Zimbabwe on COVID-19 are (twofold) the adoption of prevention, containment and treatment systems and procedures for mining communities in case COVID-19 reaches a high apex in the country and the impact on community livelihoods, human rights, social well-being, good governance principles and the economy. Communities and citizens have to prepare for any eventuality.
“While the ASM sector is a critical sector in gold production, accounting for more than 60% of total gold deliveries to Fidelity Printers and Refineries in 2019, it is also a high risk sector from a safety, health and environment perspective-meaning that COVID-19 is likely to massively affect production and the economy if it peaks in Zimbabwe.
“…there is need for more capacity building programmes for ASM players on safety, health and environment (SHE) to help remove the culture of non-compliance with public health, safety and environment standards and in particular use of PPE and applicable laws,” said ZELA.
263 Chat
Small-scale Copper mining ignites interest
Small-scale miners in Zimbabwe are warming up to the idea of Copper mining after local businessman Shelton Lucas introduced the idea on various mining platforms generating interest from hundreds of miners.
Miners WhatsApp groups were buzzing with activity with miners firing questions in order to get more informed of the mineral that we have in abundance but is almost not mined in Zimbabwe.
Mining Zimbabwe spoke to the businessman on how small scale miners can venture into copper mining and ways of overcoming challenges that are likely to be faced with the venture.
Lucas said, “Copper is a base mineral like Chrome and Manganese, so the cost of mining it lies within that same range. The cost of mining copper is cheaper as compared to other base minerals with specific respect to net realisation ratio of the value realized against the cost of extraction”.
“The equipment needed are excavators, dump trucks and front end loaders which small scale miners can always outsource through hiring and buying theirs after few cycles since its highly remunerative. A ton of copper ore can fetch an average of US$500 and after electro-refining can be inverted to US$4750 as of today”.
The success of any business venture rests on markets for one’s product. Gold mining is a resounding success because in mining areas Fidelity Printers and Refiners has branches and buying agents everywhere. The biggest question now will be the market for copper?
Lucas responded, “The market is very insatiable and because of Zimbabwe’s proximity to South Africa (which is the final destination) we have a comparative advantage over some players in Zambia and DRC. Copper requires highly specialized 7 stage purification and only South Africa has the facilities”.
“One of the market aspects is attributed to the security stability of Zimbabwe as a nation that the cargo is safe from hijacks since its prone to hijackers because of its relative value as a consignment”.
Advantages over Gold
“Copper has got an advantage over gold because of its quantitative approach rather than the qualitative” Lucas explained, “If you mine a ton of copper from the same strike you are guaranteed of money as opposed to gold. Gold is a bit dicey and dichotomical. Copper is mostly mined open cast and in some few instances underground”.
How the government can assist
The government should help small scale miners by arranging an equipment buying scheme. They can do this through the Mines and Mining Development Ministry were there are lot of geologists seating in offices who can evaluate the potential of the aforementioned mines and guarantee those loans. The Government can also build beneficiation plants for the 7 stage processing after mining to electro-refining in the worst-case scenario or arrange the processing plants of some non-working mines like Mhangura to be open to the small scale miners for beneficiation.
Locale
There are over 70 known deposits in Zimbabwe that have produced copper either as a primary or secondary product. The main producing area has been the Magondi Basin in an area stretching for over 150km. Similar copper deposits are found in the southeastern part of the country in the Umkondo Basin. Several copper prospects also occur in hydrothermal deposits in Archaean Greenstone Belts and in granite e.g. Inyathi, Copper duke. Primary copper production virtually ceased following the closure of Mhangura, now being produced as a by-product of other minerals e.g. PGM, Gold, Nickel.
Locations found are Makonde, Kadoma, Mutare, Chirumanzu, Chegutu, Kwekwe, Shurugwi, Beitbridge, Gokwe, Bindura, Chipinge, Bikita, Insiza, Mhangura, Harare, Bulawayo, Shamva, Chiredzi, Nkayi, Mudzi, Chegutu, Bindura, Kwekwe, Hurungwe, Bubi, Makonde, Bikita, Gwanda, Masvingo.
Mines Ministry sets up task-force
Zimbabwe has set up a task force to come up with strategies of achieving mining sector targets on the back of the ongoing COVID-19 induced national lockdown.
According to ZBC News, Mines and Mining Development Minister Winston Chitando said his ministry has come up with ways of achieving mining sector targets despite the lockdown.
He said the task force seeks to identify how the sector can recover after the 21-day national lockdown period, which began on March 30.
“We are looking at the 21-day lockdown, so in theory, we are looking at 3/4 of a month. We would like to come up with programmes on how we can recover. And also some operations like smelters have continued running as you can’t just shut down operations,” he said.
The mining sector remains one of Zimbabwe’s major economic mainstays.
Minister Chitando said as the sector works on ways to boost production, they were now targeting to at least surpass the US$3,2 billion mark achieved last year.
“As a minimum, we are expecting the US$3,2 billion, which we earned last year. Ideally, we don’t want to lose the target, which we had set ourselves,” he said.
Last October, President Mnangagwa launched a strategic road map to the achievement of a US$12 billion mining sector economy by 2023 as the Government ramps up mineral output contribution to the Gross Domestic Product.
Presently, the mining industry is critical in generating foreign currency, contributing about 70 per cent of Zimbabwe’s forex earnings.
Minister Chitando added that there have been a number of initiatives on mining of gemstones, which will be launched at the end of May and the expectation was that these would go a long way in ensuring the sector gets closer to achieving its targets.
Government is also on record stating that it would repossess mining claims that are being held for speculative purposes.
The country is endowed with vast mineral deposits, among them gold, platinum, diamond and chrome but some of the mineral concessions are lying idle depriving the country of its opportunity to derive maximum economic value from its mineral resource. — ZBC News/Business Chronicle