Mining ZimbabweLatest Mining News, Policy and Industry Updates

In any field of business, it is a prerequisite to have the substantial financial security that will cater to the needs of an individual in retirement, accident or death.

By Charmaine Kambale

However, small scale miners are being excluded in such services, thereafter causing financial distress when they retire. Small scale mining stands firm in Zimbabwe’s mining sector, hence the miners must be recognised for their significant efforts that are targeted towards capacitating Zimbabwe’s economy. Therefore, it is essential for Fidelity to set up trust funds (benefits) that will financially assist small scale miners in retirement.

Small scale mining can significantly contribute to poverty alleviation, providing meaningful opportunities for various individuals involved in the sector. Small scale mining includes poor informal individual miners aspiring to eke out in order to sustain a living.

When people come to retire, they will experience an excruciating reduction in income hence pension funds will mitigate this loss of income in retirement. It has been noticed that small scale miners have inadequate financial upkeep when they retire, there are a few organisations if any in Zimbabwe that oversees the lives of small scale miners post-operations.

To overcome this problem, Fidelity must set up trust funds of some sort that will subsidise small scale miners when they come to retire. It is actually commendable for Fidelity to take cognizance of small scale miners providing trust funds that will assist them when they retire.

These trust funds could emerge in the form of monthly payments made by miners to Fidelity such that when the miner retires, he or she will get a certain figure from their savings until the savings are finished. In addition to the preceding advantages, these trust funds will be sufficient, to a certain extent in providing a basic level of income for the miners when they retire.

Speaking to Mining Zimbabwe, Eng Chris Murove indicated that in most cases, small scale mining operations are not registered with NSSA hence this automatically concludes that they do not have any benefits when they retire and this is one area that requires immediate attention by the authorities.

‘’Workers would only get something at the end of their working lives when they retire if they are registered with NSSA and in more cases than not, small scale mining operations are not registered with NSSA. This is, therefore, one area where attention needs to be applied by the authorities.’’

Following the remarks opined by Eng Chris Murove, one can actually posit that Fidelity needs to consider the implementation of financial securing policies that will benefit small scale miners and artisanal miners on their own such that they will receive worthwhile benefits in retirement.

Mining Zimbabwe enquired with Fidelity to find out if there are any related funds that are meant to assist small scale miners post- operations and their response was given as follows,

‘’ As the Gold Development Initiative Fund, we are mandated to capacitate all small scale gold miners with bankable projects despite their age, current income levels or otherwise. Each project is reviewed on its own merits with emphasis placed on bankability and ability to repay the loan and increase gold production .‘’

Credit must be given to Fidelity for providing such provisions to small scale miners nevertheless, the GDIF is a loan facility that is supposed to paid back to the loaner in a specified time and it will not financially secure the miner when he or she stops operations. Thus, Fidelity must go an extra mile in setting up trust funds that could serve as benefits for small scale miners retirees.

This article first appeared in the September 2019 Issue of the Mining Zimbabwe Magazine.

We are in a period of global digitalisation in which the industry is in the throes of digital transformation that is mainly accelerated by the exponential growth of smart technologies.

By Canaan Joseph Saurombe

This has and will continue to increase global competitiveness particularly in the production industry. It is obvious that our Zimbabwean mining industry has been in the bottom quartile of global cost competitiveness. Thus, there is a need to adopt systems that will allow an increase in profitability, reduction in costs, control of operations, optimize and enhance effective processing strategies.

The industry is welcoming the inception of the “fourth industrial revolution” which produces with the help of smart
technologies, smart machines, smart products and services as well as new interaction models among other things. This exceeds beyond simply automating production. The revolution has come along with a lot of digital technologies to assist miners in their work. For instance, fully and semi-autonomous robots, increased use of artificial intelligence, drones, digital twins, 3-D and 4-D printing, augmented and mixed reality virtual. This has collectively given the mining industry about 5 major aspects/ pillars which are believed to be very effective to the development of the Zimbabwean mining industry through their effectiveness from mine exploration and valuation, through mining ore processing and metals production and downstream sales and distribution.

Visualisation and Alerts;

This is one of the five major components brought about by digital technology. Mining companies can increase productivity, reduce costs and improve production and safety quickly and effectively through the visualisation of data across the entire value chain. It helps to create a connected mine in which there is the enablement of visualization of data from mine to market. Data can also be tapped to allow mine managers, operators and head office to have clear real-time visibility into their entire production without having to be on the field. This will improve plant visibility for operators, whereas their fast access to relevant information in real-time will have a direct impact on uptime, production output, quality and safety.

Analytics and dynamic scheduling enable mining companies to quickly resolve and predict unwanted situations using advanced algorithms, modelling and remote expert assistance. Digital technology has opened room for the invention of machine learning algorithms. Through these, miners can feed algorithm or basically commands on a
machine using real-time data and analysing historical data, which allows miners to derive future insights into performance, health and safety, and mineral characteristics. When this information is combined with dynamic scheduling solution it becomes proactively feasible to;

•Control mineral characteristics through drill and blast enhancement and improved blending to meet the required output with the specified grade.

•Enhance asset health through predictive assets maintenance

•Improve the safety of workers, mine equipment and the environment through fatigue monitoring as well as people and asset tracking.

Digital Twin.

It has always been difficult to align strategic and real-time plans and schedules in mining companies due to various factors which include differences in methodologies, processes and technologies used. Digital twins offer an immersive virtual environment that merges short, medium and long term planning horizons to help miners make value-driven decisions across a range of operations from boardroom to mine site. Virtual makes it possible to run several test works in process sections such as crushing and conveying without affecting the already running production process. With the use of virtual and augmented reality, mining companies can create environments that can perfectly mimic physical running locations. Imagine having to train employees in virtual space about what they will experience in real space. This will allow an effective practical training of employees in an environment that is exact to the one they will be expected to make effective decisions, except, it won’t be as dangerous and risky as the physical space.

Integrated automation across the value chain will enable mining companies to solve a variety of critical business issues even faster and more intelligently. Analytical models based on real-time are developed which produces reliable results that miners can use to validate and automate decision in the next process. This brings about a
system known as “virtual handshake” in which information from one process is automatically transferred to the next, fanning out to fine-tune processes based upon the earlier automated decision making. Generally, this system bypasses the risk of human error recurring upstream in a continuous process, which might cost the company a loss.

An environment that merges short, medium and long term planning horizons to help miners make value-driven decisions across a range of operations from boardroom to mine site. Virtual makes it possible to run several test works in process sections such as crushing and conveying without affecting the already running production process. With the use of virtual and augmented reality, mining companies can create environments that can perfectly mimic physical running locations. Imagine having to train employees in virtual space about what they will experience in real space. This will allow an effective practical training of employees in an environment that is exact to the one they will be expected to make effective decisions, except, it won’t be as dangerous and risky as the physical space.

Integrated automation across the value chain will enable mining companies to solve a variety of critical business issues even faster and more intelligently. Analytical models based on real-time are developed which produces reliable results that miners can use to validate and automate decision in the next process. This brings about a
system known as “virtual handshake” in which information from one process is automatically transferred to the next, fanning out to fine-tune processes based upon the earlier automated decision making. Generally, this system bypasses the risk of human error recurring upstream in a continuous process, which might cost the company a loss.

Cognitive Network; this is probably the next generation of technology. It comes as an initiative of artificial intelligence which will provide people with a way to interact with technology and create an environment that is self-improving, self-learning and self-controlling. This will drive true transformation across the mining value chain.

It has been estimated through the world economic forum that mine digitalisation could channel a saving of $373billion by 2025 through raising productivity, reducing waste and keeping our mines. This means, since we have our mandate as Zimbabwe mining industry reach a $13billion industry by 2030, then we have some digital
harnessing to do because an increase in productivity is certainly what we need.

However, in order for us to effectively harness digitalization in our mining environment and nation at large we need to include collaboration between government, public-private sectors, education sector, banks and other various stakeholders. For example, companies can invite stakeholders to create joint digital-mining innovation hubs and incubators and codevelop infrastructure and technology to lower capital costs and reduce investment risk.

It is a well -known fact that there is a great need to create employment in our nation, this somehow conflicts with the need to become relevant to the global economy. This is the reason why most African governments, Zimbabwe included have been sceptical about digitalisation. There is a huge outcry that digitalisation is here to replace people however, this is not the case, digitalisation but it requires a various set of skills to operate equipment and optimise
industrial processes.

The young generation depends on technology, it is not even surprising to see a child operating a mobile phone, tablet and computer thus, this natural skill can be upgraded by introducing and building learning around digital technologies from an early age into school curriculums. It entails a review and updating of the education curricula at primary, secondary and tertiary levels. This will create a responsive education system which is what we need to be able to catch up with digitalisation. We can draw a lesson from Kenya which restructured it’s learning curricula and introduced Secondary School Practical Open-Source Curriculum (SPOC) which is training school students to code. Currently, in Zimbabwe, there are many training schools but less of them focus on entrepreneurship. The upcoming generation needs to be adaptable and have an open mind-set. If the government embraces technological developments and encourage the engagement of the youth with the mining sector there is an assurance of a bright future of our mining industry. However, more needs to be done especially at the regulatory level to increase affordable internet access so that more people can participate in the economy of information.

If we embrace technology-enabled mining, we will realise major improvements in productivity, workers’ wellbeing—and revitalise the industry as an engine of value-creation, employment and growth. The time has come for the Zimbabwean mining industry to create change by combining operational excellence with innovation, grow trust, take risks, think big and move fast.

Canaan Joseph Saurombe is the founding chairperson of Core Miners Association he writes in his own capacity,
[email protected]
Cell: +263 779 721 076

I find that Rough Diamond procurement is not evolving with times and the main cause why the Diamond industry is stalled and not moving forward.

C Sithole – Gemmologist/ Mineral Evaluator (MMCZ)

It seems that Rough Diamond procurement techniques are just not keeping with times.Instead of naturally evolving forward, I find it is getting more and more complicated for the small to medium-size manufacturers to get the actual products they require.

Today a Diamond cutter has basically two conventional options:

1) Purchasing through second and third-hand dealers while paying premiums on the already hefty costs originating from long term (overly financed) client contracts.

2) Participating in the plentiful rough

Diamond tenders (auctions) where the highest bid wins (usually).

In both cases, the downside is a tremendous burden on Diamond manufacturers and in turn hurt the downstream sectors as well.

Instead of adapting to current industry requirements with the ability to service the special needs of cutters, major rough producers (including Zimbabwe) choose the comfort zone of supplying huge (and few) conglomerates with massive quantities of rough materials.

I believe in today’s world, a cutting facility should have the ability to acquire the exact material requirements for their business. In turn, these cutting facilities will need to evolve and bring innovative & added-value products in order to compete with mass-market manufacturers (introducing variety – fancy cuts, etc)

What we have instead is a constant oversupply of mass-produced generic cuts (round brilliants and a few other fancy cuts) which flood the markets with Diamonds competing to be sold at higher discounts as best scenario or worse to be consigned (memo) to jewellers and will sit on shelves waiting to be purchased.

Such old-world thinking and habits! It might help some companies, but bottom line, it is hurting business in general, it stalls innovation, advancement and mostly it keeps the industry awareness in the sleeping mode.

C Sithole – Gemmologist/ Mineral Evaluator (MMCZ)Associate Member, Accredited Gemologists Association, CA, USA

Student Member, American Society of Appraisers, NY, USA
GIA Alumni – GD, AJP

Zimbabwe Institution of Engineers – Technologist Member

This article first appeared in the September 2019 of the Mining Zimbabwe Magazine.

Zambia’s entire economy depends on copper and cobalt for survival since privatisation in the early 90s, the mining sector in Zambia has attracted Canadian, Chinese, Indian, Australian and American mining companies.

Rudairo Dickson Mapuranga

For over two last decades Zambia has transformed its economy by attracting foreign direct investment (FDI) and its GDP per capita has surpassed that of Zimbabwe in recent years.

For more than three decades, Zimbabwe boosted a higher GDP per capita than that of Zambia and attracted a significant number of foreign investors than Zambia.

Zimbabwe has one of the largest copper and cobalt reserves in the world and experts believe that Zimbabwe can earn has much as Zambia through its minerals, however, no efforts are done to attract investments in the sector unlike in Zambia.

Why Zambia is attracting FDI

According to BBC country profile, Zambia unlike most of its neighbours has managed to avoid the war and upheaval that has marked much of Africa’s post-colonial history, earning itself a reputation for political stability.

United Nations Conference on Trade and Development, the Zambian policy review document revealed that, with the opening up of the Zambian economy in the 1990s, FDI inflows increased considerably reaching $334 million in 2004. This was largely explained by the implementation of an ambitious privatisation programme (1994-2001).

The renowned Zimbabwean geologist Kennedy Mtetwa said that Zambia is attracting FDI because it is carrying out full exploration of resources unlike in Zimbabwe where companies that have been announced to have invested in diamond mining after exploration was done.

“Investment in mining is when a company takes out an EPO and spends money exploring from grassroots and discover a deposit that was not known. That is what is happening in Zambia and DRC. Since Chiyadzwa was grabbed after some companies did exploration and greedy politicians seized their hard work, no big miners will ever come to explore here for they know that the seizing of new deposits will happen again” said Mtetwa.

Why there is little FDI in Zimbabwe?

According to former Zimbabwe Miners Federation vice president, Engineer Chris Murove, there is little or no investment in copper and cobalt due to two particular aspects of the mining investment matrix, that is

(a) Extent/scale of the mineral resource and

(b) National investment policies which any investor, local or foreign would consider first before sinking funds into a mining project.

This means that investors have assessed the mining environment in Zimbabwe and discovered that the sector lacks one or all of the mentioned factors thereby contributing to fewer investments in the coal and cobalt mining sector.

According to Kennedy Mtetwa, there is very little foreign direct investment due to the fact that the current regime is disrespectful to property and human rights in full glare of investors, hence investors will not be attracted to invest in the country fearing that the same might happen to them.

“Rule of law means protection of property rights is a prerequisite. Zimbabwean courts are seen as partisan and the case being raised by investors is just the same as the refusal by the government to allow the opposition to demonstrate yet in the constitution that right is there. In short, the government is violating the constitution in full glare of investors. The foreign investors are raising valid questions, if we invest in Zimbabwe and the government violates a part of the constitution protecting our mineral rights what do we do? You cannot violate part of the constitution and think investors will say it’s okay, that’s just the opposition being violated , us investors will be safe. Investors know that any government that violates part of the constitution will violate the other parts in no time” he said.

It is, therefore, the government’s complete mandatory to respect both human and property rights, renowned business Mutumwa Mawera has been lamenting over the government’s decision to start carrying out operations at Shabanie Mashaba Mines before ownership issues were addressed by the courts of law.

Engineer Murove also pointed out on the need for investors to have full knowledge about the resources that are found on the land to be mined, therefore the country needs to invest in exploration.

Where extensive and commercially viable resources of copper were known to be present in Mhangura for instance, it was a government entity that was mining that resource but eventually, that business collapsed as we all know like a multitude of other state enterprises. The lesson that should be learnt is that the government has no business in business and copper mining should have been left to the private sector. The policy that was being followed clearly failed and therefore needs to be modified.

Should the country invest in Exploration to attract investment in copper and cobalt?

Granting of Exclusive Prospecting Orders (EPOs) is targeted at discovering new deposits in the mining sector. Copper and cobalt is believed to be plenty in Zimbabwe like in Zambia, therefore it is important for the country to invest in exploration in order to find new deposits.

According to the Deputy Minister of Mines and Mining development Hon Polite Kambamura, Zimbabwe’s mineral wealth has not been fully explored or established hence the granting of these Exclusive Prospecting Orders to boost investment in the mining sector.

It is therefore of paramount importance for the country to invest in exploration in order to find new deposits.

Is the mining sector attracting investment elsewhere?

The government of Zimbabwe has welcomed Russian based world top diamond producer by volume, Alrosa and Chinese firm Anjin in diamond mining, a move which was hailed by both the president of Zimbabwe and the Ministry of Mines and Mining Development.

However, the coming of these giants has raised a lot of noise with mining experts and personalities claiming that the companies are just bogus investors who come to take away the wealth of the land after exploration has been done.

According to some, the move to give licenses to these companies is not an economic investment but political investment.  Therefore, to say that Zimbabwe has attracted foreign direct investment in these firms is mare deception.

“So they come to known Chiyadzwa diamond fields, carry out zero exploration and just see if there is anything left from the previous mining. So what have they invested?” said one mining expert.

This article first appeared in the September 2019 issue of the Mining Zimbabwe Magazine.

Zimbabwe Miners Federation (ZMF) has put a target of 1.5 tonnes of gold from artisanal miners popularly known as (Amakorokoza) every month for the next three months as a way to prove to the nation that artisanal miners are important players in the mining sector, ZMF Secretary-General Morgan Mugawu has said.

Rudairo Dickson Mapuranga

Speaking at the Miners meeting in Norton which aims at mitigating violence in the mining sector as well as empowering miners through regularisation and formalisation of artisanal miners, the ZMF Secretary-General said that, the Federation is targeting 1.5 tonnes from 500 thousand artisanal miners each producing about 3 grams a month.

“Zimbabwe Miners Federation is targeting 1,5 tonnes of gold from artisanal miners, we are looking from 500 thousand artisanal miners across the board in Zimbabwe each targeting to produce 3 grams and get paid on spot by Fidelity and that 3 grams from every miner a month equal 1.5 tonnes,” said Morgan Mugawu.

According to Mugawu, the Federation is looking forward to capacitation of the small scale mining sector through formalisation and other measures and upon completion of the capacitation process, ZMF is targeting over 500 tonnes a month from these registered small scale miners.

“Our target is 1.5 from artisanal miners, on the small scale the 40 thousand that are registered we are looking upon capacitation they have to be capacitated and upon capacitation, we are targeting at least half a tonne from these guys hence as a team will be producing at least 2 tonnes,” Mugawu said.

The ZMF Secretary-General also said that the Federation is working to make sure that artisanal miners are recognised as the most important players in the mining industry in Zimbabwe.

“We need to show the nation that most players are artisanal miners who will be producing 1.5 tonnes every month,” said Mugawu.

During the first half of the year gold delivery to the country’s sole gold buyer and exporter, Fidelity Printers and Refineries was at 12.3 tonnes of which the government is targeting the sector to produce at least 40 tonnes in 2019, the year 2018 saw Zimbabwe reaching a record 33.3 tonnes.

Of the 12.3 tonnes of gold produced in the first half of 2019, over 60 per cent is by small scale and artisanal miners.
The recognition of artisanal gold miners is a formidable way towards Zimbabwe achieving the 12 billion mining industry by 2023.