The government has revised upwards mining fees. The notable increase is an ordinary prospecting license which was at 200zwl has been increased to 1000zwl. Special grant increased to zwl5000. Application for an EPO now at zwl 10000.
Please see full document HERE
Minister Chitando was yesterday found in contempt of the High Court and sentenced to 90 days in prison. However, High Court judge, Justice David Mangota gave the minister seven days to comply, failure of which he will serve the full jail term.
The court ordered the minister to ensure the transfer of ownership of some mining claims from North Rand into the name of RioZim, but he did not comply.
Below are the full court documents as first shared by Professor Jonathan Moyo.
Folks worry not about the date that appears to be 13th February 2019. The order was granted today (this afternoon). So the handwritten date is correct regarding the date, and month but not regarding the year (in print) which is when the case was filed! pic.twitter.com/UyFRIBZ50D
— Prof Jonathan Moyo (@ProfJNMoyo) February 13, 2020
AN undisclosed number of police officers are among 2 852 people who have been arrested for illegal gold mining or being part of the machete-wielding gangs, police spokesperson Assistant Commissioner Paul Nyathi has said.
He was speaking on the sidelines of a media training on community reporting organised by the Zimbabwe Union of Journalists (ZUJ) Wednesday in Harare.
“We have had arrests in Jumbo, Mazowe and Shamva of illegal artisanal miners. I admit we have arrested (police) officers at Jumbo, the law will take its course,” said Nyathi.
“The Home Affairs Minister has said it before and I repeat – if there is a police officer who is involved in mining activities, they must stop because they will be arrested and eventually lose their jobs.”
A high number of cops, correctional services officers and soldiers have been implicated in cases of illegal gold mining across the country.
Nyathi referred queries on whether they had also arrested any members of the military or Prison Service to respective spokespersons.
“I cannot comment on behalf of the Zimbabwe National Army (ZNA) and Prisons, you will have to call them respectively.”
This week, 13 police officers, including a chaplain, were arrested after allegedly trying to extort cash from illegal miners they had been sent to arrest in Chakari, Mashonaland West.
Commonly referred to as Mashurugwi, the machete wielding gangs have been terrorising innocent citizens in mining communities and surrounding towns where they have robbed, maimed, raped and killed for gold claims, gold ore and money.
On Tuesday, police arrested 319 illegal miners in Odzi, Manicaland province in the ongoing clampdown.
NewZimbabwe
Caledonia Mining Corporation says earnings for 2019 will be “substantially higher” than forecast on firmer gold prices, higher than expected output and costs that were lower than projected.
The Toronto-listed company runs the Blanket gold mine near Gwanda.
“As a result of these factors, adjusted earnings per share (before net realised and unrealised foreign exchange gains) for 2019 are expected to be in the range of US$1.55 to US$1.75 per share compared to company guidance in early 2019 of US$0.86 to US$1.17 per share,” Caledonia says in an update.
Earnings per share on an IFRS basis, which includes net realised and unrealised foreign exchange profits, is expected at US$3.80 to US$4.00 per share. Full year earnings results for 2019 are expected in March.
“I am delighted by the excellent performance of the Blanket Mine, particularly in the latter stages of 2019, which, combined with the strength of the gold price, has resulted in us comfortably exceeding expectations for the year ended December 31, 2019,” says Steve Curtis, Caledonia CEO.
“This is down to the hard work and dedication of our exceptional team operating at the Blanket Mine not least in how they have successfully addressed challenges in the year such as the variable power supply and grade fluctuations. With these challenges addressed, an excellent start to 2020 and with the development of the Central Shaft continuing on time and record quarterly production in the fourth quarter, we look forward to an exciting year ahead.”
Caledonia Mining Plc@CaledoniaMiningAlways a pleasure to welcome shareholders and potential investors to the Blanket Mine
The higher-than-forecast earnings would be a turnaround for Caledonia, which mid-last year had to cut production guidance for 2019 to between 50,000 and 53,000 ounces, down from previous forecasts of 53,000 to 56,000 ounces.
However, the company managed a rebound in the last quarter of 2019, when Blanket produced 16,876 ounces, beating the previous production record of 16,425 ounces set in the final quarter of 2017.
The company expects to commission a new central shaft in the last quarter of 2020, which is expected to ramp up production to 80,000 ounces per year.
Blanket mine installed generator power with 18.5MW capacity and has floated a tender for the building of a 20MW solar plant to power up operations.
NewZwire
Reduced water levels at Kariba dam and constant breakdowns at the Hwange Thermal power station saw the Zimbabwe Power Company (ZPC) miss its 2019 output target by 17 percent.
Kariba dam is home to Zimbabwe’s largest hydro-power stations, which has capacity to produce 1 050 Megawatts, but is currently generating electricity at reduced levels due to critically low water levels following the drought experienced in the catchment area of its main feeder rivers.
“In 2019, ZPC sent out 7445.18 GWh for the period spanning January to December 2019 against a target of 8973.53GWh,” the ZPC said.
“We missed the set annual target by 17.03 percent. This is attributable to the depressed generation at Kariba, following the decreased water allocation by the Zambezi River Authority due to low water levels caused by lower than average inflows into the dam from the 2018/2019 rainy season.
“The situation was also magnified by the constant breakdowns at Hwange and the subsequent postponement of Hwange Unit 3 major overhaul. This led to a prolonged period of load shedding spanning 18 hours a day in the worst instances.”
The company, however, said despite operational challenges it was exploring ways to improve the power supply situation, for example by refurbishing existing power plants and extending their lifespan.
“Part of the funding for refurbishment of stage 1 at Hwange has since been secured and we are looking forward to commencing the exercise in 2020. We are looking forward to implementing Plasma Ignition Technology which shall increase efficiency of our power generation and reduce the need for use of large quantities of diesel. The Procurement Regulatory Authority of Zimbabwe has since given a no-objection to the awarding of the tender and the contract was duly signed and is now in the Conditions Precedence satisfaction period,” it said.
The ZPC said the 600 MW Hwange expansion project was proceeding well and was on course for completion by end of January 2022.
“Works that are currently in progress include design reviews, employees’ accommodation construction, site temporary works, excavations, superstructures construction, and transmission works.
“There are also offsite works currently in progress, including the manufacturing of turbines and generators for both units which are being done in China. Delivery of turbine for Unit 7 is expected in January 2020 while for Unit 8 delivery is expected in March 2020. A team will visit China for tests on the generators,” the company said.
New Ziana
Africa is in need of increased private investment in its energy sector which is a bridge to modernisation and industrialisation, President Emmerson Mnangagwa said on Tuesday.
Speaking at panel discussion at the Africa Business Forum organised by the United Nations Economic Commission for Africa (Uneca) in Addis Ababa, he said energy was a key enabler for African economies to diversify and move from being producers and exporters of primary goods.
“Because most of our economies are primary economies, we need to move from that and process our goods, value add our goods and that cannot be achieved until and unless we have energy,” President Mnangagwa told the forum.
“It is critically important that we begin at the correct level which is (power) generation.”
President Mnangagwa is in Addis Ababa where he was attending the 33rd African Heads of State and Government Summit which ended on Monday.
He said while African economies were not all at the same level, the continent’s leadership was agreed on a vision to create a prosperous Africa.
“The question of vision, will power, I do not think we have a deficit in that area,” he said.
Sharing of ideas, he said, was as a result critical in ensuring coherence in coming up with a road map to achieving energy self sufficiency.
He welcomed investors to explore investment in the energy sector in Zimbabwe, which is currently battling a chronic deficit.
Power shortages were impacting on the country’s ability to fully produce in agriculture, exploit its vast mineral resources and value-add its resources.
“For the last two decades, our industry, our manufacturing sector collapsed as a result of the sanctions which we had. But now to revive it, we need energy,” he said.
Uneca Executive Secretary, Vera Songwe said Africa had over the years made progress in improving access to energy, with some countries now at over 50 percent.
In light of climate change which has seriously hit energy production in some countries, she said it was critical for the continent to diversify its energy mix and focus on clean energy.
“We need to make sure that the regulatory environment is good,” she said, adding investors must explore the continent as it currently offered the highest return of between 10 and 12 percent in energy investments.
Investors at the forum, which ran under the theme, “Investing in people, planet and prosperity,” stressed the need for African governments to ensure stability in their economies, and share risk with investors by also taking up private/public partnerships.
New Ziana
MORE than 1 000 former Zimasco (Pvt) Ltd workers in Shurugwi face eviction from company houses after their ex-employer reneged on a pledge to sell the houses to them.
The mining company has since served the former workers with eviction notices.
The fight over ownership of the dilapidated houses, some of which were built in the 1950s, has seen Zimasco also increasing rentals from $95 to $503 per month, a move tenants say is well calculated to push them out after failing to pay the new rentals.
Mr. Jaison Moyo, who chairs the Chrome Mine Residents’ Association (CMRA) said more than 1 000 families face eviction.
“From 2014, the company has been retrenching and most of the people occupying these houses are retrenched workers. We were promised houses as retrenchment packages and we signed agreements of sale to that effect,” he said.
Mr. Moyo said the former workers were therefore shocked when management changed goalposts and said the houses were not for sale.
He said the company had agreed to sell the houses for an average of $4 700 per unit.
The company has however announced that it is working on turnaround strategies that include disposing of its houses and other assets.
Documents on the proposed turnaround strategies indicate that Zimasco intends to sell absolute inventory and residential properties.
The company said it is working on restructuring and re-organising through utilising idle assets and disposing of non-core assets.
These include residential properties in Harare, Kwekwe, Shurugwi, and Mutorashanga.
It also plans to lease out its facilities such as hospitals, clubs and guest houses.
According to a letter written to tenants from the manpower services manager, Mr. Fungai Manyau, Zimasco, has since increased rentals.
“Your new rental fees shall be $503,38 per month and that is effective March 1, 2020. The rental shall be reviewed periodically going forward taking into account inflation and cost trends,” reads part of the letter to the sitting tenants signed by Mr. Manyau.
Mr. Jonathan Javangwe, coordinator of the CMRA said this was a well-calculated move to evict the former employees for failing to pay rentals.
“We haven’t been employed for over six years and some of us are still waiting for our retrenchment packages. Where do they expect us to get the money for rentals from? They are looking at ways of legalising our evictions,” he said.
Mr. Javangwe said the company attempted to evict them in 2018 and the then Provincial Affairs Minister, Cde Owen Ncube, intervened and stopped the evictions.
He said some tenants had spent money on electrification of the houses on the understanding that they were going to buy them.
“After such an investment it is unfair for the company to renege on the agreement to sell the houses to sitting tenants,” said Mr. Javangwe.
Asked to comment, Zimasco general manager in charge of marketing and administration, Ms. Clara Sadomba, said the matter was under judicial consideration.
“Thank you for your email below. I have consulted internally on this issue and Zimasco, therefore, needs to advise in response as follows: Please be advised that the matter to which you are referring is sub-judice as it is under judicial consideration at the High Court.”
The Chronicle
Ailing Hwange Colliery Company Limited (HCCL) has announced its voluntary suspension from the London Stock Exchange (LSE) with effect from Monday this week.
The temporary suspension of the company on the LSE comes after the colliery was suspended in 2018 from trading on the Zimbabwe Stock Exchange (ZSE) and the Johannesburg Stock Exchange (JSE) after it adopted a reconstruction path.
“Hwange wishes to advise shareholders that following the suspension of trade on the JSE that has been in force since November 2018, it has successfully requested that the FCA (Financial Conduct Authority) in the UK suspend its listing on the UK Official List, which suspension also suspends Hwange’s trading on the London Stock Exchange.
“The request for suspension was approved by the FCA on 10 February 2020, with the suspension effective from 10 February 2020. Shareholders will be updated in due course,” it said in a statement issued on behalf of the board by a JSE sponsor, Sasfin Capital, a division of Sasfin Bank Limited.
A statement released by RNS, the news service for LSE, also confirmed the development.
“The Financial Conduct Authority temporarily suspends the securities set out below from the official list effective from 10 February 2020 at the request of the company,” reads the statement.
The suspension from ZSE and JSE followed the placement of the coal miner under reconstruction by its major shareholder, the Government, to save it from liquidation.
The decision was done in terms of the Reconstruction of State-indebted Insolvent Companies Act.
According to the Reconstruction Act, every disposition of the property, including rights of action of the company and every transfer of shares or alteration in the status of its members made after the commencement of the reconstruction, shall unless the administrator otherwise orders, be void.
HCCL’s suspension on the ZSE is for the duration of the administration. The government has justified its decision to place the ailing coal producer under reconstruction, saying as a majority shareholder, it had noted that there was no sense in continuing with the business. One of the major reasons was that the company was operating on a gross loss with the cost of production alone, before factoring other overheads, outweighing sales revenue.
Further compounding to its placement under reconstruction at the time was a US$42 million debt to Mota Engil.
Meanwhile, HCCL in the first half year of 2019 posted a profit of $3,5 million recovering from a loss of $23 million recorded in the previous year.
The troubled firm had been in the red for successive years as it struggled with viability and corporate governance issues and constant changes in management has not helped the situation.
The Chronicle
Organised Crime Investigation unit of South Africa, the Hawks, arrested two Zimbabwean women for smuggling contraband of explosives with an estimated street value of R1, 2million.
The suspects aged 27 and 41, whose names are yet to be released, were arrested on Wednesday in Thohoyandou under Limpopo province as they were about to board a bus to Johannesburg.
Hawks spokesperson for Limpopo, Captain Matimba Maluleke said the women would soon appear in court on charges of unlawful possession of explosives and contravention of the Immigration Act.
The official said the duo was arrested following a tip-off.
“The team received a tip-off about two women from Zimbabwe who were in possession of explosives destined for Gauteng,” said Capt Maluleke.
“The two people matching the description of the suspects were spotted in one of the lodges in Thohoyandou and their movements were constantly monitored.
“The suspects were arrested as they were about to board a bus to Gauteng.
Explosives, emulsion blasting cartridges and case fuses with the estimated street value of over R1.2 Million were seized”.
The smuggling of explosives into South Africa through Beitbridge gas become a perennial headache for border authorities.
This paper is reliably informed that the explosives are used mainly for Automated Teller Machines (ATM) bombings and for blasting during illegal mining activities which is rampant around Gauteng and Free State provinces.
More than 50 suspects have been arrested between 2015 and 2019 while smuggling similar contraband between the two countries.
Justice David Mangota has this afternoon jailed mines minister, Winston Chitando, and committed him to Harare Remand Prison to serve three-months for disobeying two court orders issued by Justice Munangati-Manongwa to mining conglomerate, RioZim!
https://t.co/7ObPJkormO
More to follow
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