Mining ZimbabweLatest Mining News, Policy and Industry Updates

Zimbabwe expects to start  producing sufficient electricity for domestic use and surplus for export  by 2024 through the exploitation of its huge and untapped Coal Bed  Methane (CBM) deposits as well as investment in new thermal power  stations, a Cabinet Minister has said.

Zimbabwe has one of the highest measured CBM resources in Southern  Africa and is believed to be sitting on an estimated 765 billion cubic  metres in the Hwange/Lupane basins.

In early 2012, Mozambique discovered CBM in areas that border  Zimbabwe’s Manicaland province into which it is believed the gas also  flows.

Coal bed methane offers a cleaner alternative source of power compared  to coal and the scope is even greater for its exploitation considering  that Zimbabwe is battling a severe power crisis through over-reliance on  hydro power which is affected by seasonal rainfall.

It can also be converted into diesel, petrol, ethanol, fertilizers,  aviation fuel and other products including specialist lubricants and  waxes.

Mines and Mining Development Minister Winston Chitando said the country  expected to generate electricity from CBM within the next two years  while five investors, including Afrochine, Jinan and Karo Resources were  also at various stages of setting up thermal power stations.

“Government is intensifying the drive for the extraction of coal bed  methane into the production of electricity as well as other household  and industrial uses. The development of CBM and oil deposits will be  sped up and the first CBM electricity power station should be  operational by 2021 at a capacity of 200 megawatts,” he said.

“At the moment there is work in progress on the establishment of over 2000 megawatts from new coal and CBM projects by 2023. The major  objective is that Zimbabwe should be exporting electricity by 2024, the  objective is that Zimbabwe should be fuel self-sufficient by 2030.”

Chitando said a CBM- Oil strategy would be unveiled mid next year to  give impetus to the growth of the energy sector.

In terms of oil production from CBM, he said two projects were in the  pipe-line.

“As for two of the projects, one has come up with a bankable  feasibility study which demonstrates the capacity to produce 600 million  litres of diesel. The other is a pre-bankable feasibility study of 400  million litres. So from CBM alone, Zimbabwe has the opportunity to  produce over a billion litres, let alone the other initiatives from  oil,” he said.

Analysts contend that CBM exploitation presents an opportunity for  Zimbabwe to lessen its dependence on imported petroleum and electricity  while also providing an alternative means to produce cleaner energy from  coal. – New Ziana

Zimbabwe is widely regarded as the richest nation on earth in terms of untapped mineral resources per capita.

The country is blessed with the world’s largest diamond reserves, second largest platinum reserves after South Africa and over 40 exploitable minerals.  Gold is literally everywhere in the country.  

Chrome abounds along the Great Dyke, a unique geological formation that runs almost through the middle of the country from the south to the north.  Coal-bed methane gas is found in the Lupane-Hwange sector of Matabeleland North as well as in Gokwe in the Midlands.  Natural gas deposits occur in Chiredzi as well as along the Zambezi Valley. 

With the world’s automotive industry moving away from heavily polluting liquid fuels – petrol and diesel – to cleaner, renewable energy sources anchored by lithium batteries to propel engines, Zimbabwe is seen playing an increasingly central role in the mining of that mineral whose deposits are found in Bikita in Masvingo, Kamativi in Matabeleland North and Mashonaland East.  

It is estimated that Zimbabwe is the fifth largest producer of lithium globally after Australia, Chile, Argentina and China.  The position is largely based on output from one mine, Bikita Minerals which suggests that if projects in Mashonaland East and Matabeleland North are fully developed as will come to pass in the next few months, the ranking will shoot up.

Other minerals found in the country are iron, asbestos, nickel, coal, and silver as well as rare earth elements.

Large mining companies are active here, among them Zimplats and Mimosa who are mining platinum, Metallon Corporation Group which runs a number of gold mines, Prospect Resources which is developing the Arcadia Lithium Project near Harare, Invictus Energy which is in the initial states of exploring for natural gas in Muzarabani and Karo Resources who are finalising the resource exploration and quantification programme at its mining site for the ,2 billion platinum investment in Mhondoro-Ngezi Mashonaland West Province.   

We expect to see the signing very soon of a joint venture agreement between Katanga, a partnership between the Chiadzwa Community and London Stock Exchange listed exploration and mining company, Vast Resources and the Zimbabwe Consolidated Diamond Company.

Alrosa, the Russian giant which is the world’s biggest diamond producer, is one of the few companies picked by the Government to begin diamond mining in Manicaland.  London Stock Exchange-listed Vast Resources and China’s Anjin are the others.

 Although the country has a lengthy mining record from the rudimentary workings dating back to the Seventh Century, according to the Zimbabwe Geological Survey, the mining industry has definitely not punched to its weight; rather it punches well below its weight given its world-class potential.   

Why this has been the case is that there has not been strict focus on that industry.  The impact of this has manifested itself in limited investment in exploration of the resources that have the potential to turn Zimbabwe into the jewel of Africa.  Exploration is the basis for any modern investment in mining thus when and where there is poor investment in the upstream side of the value chain; we cannot expect an extractive industry to emerge.  

On Monday, President Mnangagwa launched what is in our view the most comprehensive blueprint specifically for the mining industry, a plan that should result in the building of a US$12 billion sector by 2023.  Gold is expected to contribute US$4 billion, platinum US$3 billion while chrome, iron, steel, diamonds and coal will contribute US$1 billion each.  Lithium is seen contributing US$500 million while other minerals will contribute US$1,5 billion.

“The objective of this strategic roadmap is to facilitate the exploitation processes of the country’s minerals throughout their entire value chain that is from exploration, mining metallurgical processing, value addition and beneficiation,” said the President.

“My Government is desirous to transform the mining industry and ensure that the country achieves social equity and equality around communities where mining takes place. In this regard, the sector should enhance and adopt best practices, including occupational safety, health and environmental management in order to ensure appropriate healthy conditions of employees, local communities and the general public.”

We have seen much investor interest in the economy in recent months, particularly in the mining sub-sector and hope that after the Monday launch the interest would grow bigger.

As the President said, we want more investment, not only in extraction of the bountiful minerals that lie underground but also in value addition and beneficiation.  We want to see a whole diamond sorting, polishing, cutting and jewellery manufacturing industry developing in the country.  The nation will benefit more if one takes into consideration that a carat of diamond grows seven times in value from extraction to the stage where it is set on that adorable ring, wrist watch or bracelet.

Furthermore, we must make lithium batteries here so that Panasonic and Telsa, the world’s biggest battery and electric vehicle makers, buy them from here.  Yes, platinum miners launched a refinery some five months ago, which is commendable progress on the path to greater local value addition and beneficiation of locally extracted mineral resources.  However, much more potential exists for more domestic platinum products manufacturing.  

If all steps as enunciated by the President are taken, the US$12 billion mining industry that we all desire will be possible in the next four years_The Chronicle

The ranger, William Kamanga (35) is battling for life at Mutambara Mission Hospital in Chimanimani East after the illegal panners hit him on the head with a machete as they were wrestling with him.

The incident happened in an area managed by the Zimbabwe National Parks and Wildlife Management.

“The information we are getting is that Kamanga had arrested an illegal gold panner Liberty Musweweshiri. Kamanga was reportedly in the company of another parks ranger David Tinago when the incident happened. The arrested illegal panner is said to have wrestled with Kamanga before seven other illegal panners joined the fight,” a source told The Manica Post.

The AK47 gun discharged two rounds of ammunition as they were wrestling.

“The illegal panners managed to disarm Kamanga and disappeared with the AK47 gun which had 15 rounds of ammunition. But before they disappeared they hit Kamanga twice on the head with a machete. He was rushed to Mutambara Mission Hospital where he is receiving treatment,” added the source.

Musweweshiri is suspected to have fled to Musanditevera — a no man’s land area in Chimanimani between the Zimbabwean and Mozambican border.

“It is still a mystery how the illegal panners successfully disarmed a ranger with a loaded AK47. We suspect the rangers connived with the illegal panners and a misunderstanding could have led to what happened in this instance,” said the source.

Chimanimani is very rich in gold. It also has diamonds and is a tourist attraction because of its scenic mountains.

Illegal panners have besieged the Chimanimani mountains in search of gold for sometime now causing serious environmental damage.

No immediate comment could be obtained from the Zimbabwe National Parks and Wildlife Management Authority spokesperson Mr Tinashe Farawo. National police spokesperson Assistant Commissioner Paul Nyathi confirmed the development yesterday.

“We are investigating a case of robbery of a firearm from a Zimparks official in Chimanimani. It is alleged the incident occurred after the officer and his colleague arrested a suspect who wanted to influence the official to allow him extract gold illegally. After being arrested a group of seven illegal panners came and wrestled with the officer. They took away the rifle (AK47),” he said_ManicaPost

Speaking to journalists at his offices in Harare today, the Minister of Mines and Mining Development, Hon Winston Chitando has announced that the launch of the USD12 billion mining industry roadmap by 2023 will be unveiled by the president of Zimbabwe next week.

Rudairo Dickson Mapuranga

The government of Zimbabwe is optimistic that the economic resuscitation of the once giant in African nation rests in the Mining sector, therefore, has created a USD12 billion road map that will see the mining sector singularly reviving the economy of Zimbabwe.

According to Chitando, the 12 billion dollar road map will be unpacked by the President on Monday afternoon.

“The achievement and details of the USD12 billion target will be unpacked next week by the President,” said Chitando.

Chitando also said that each sector will be given a specific target to reach by 2023. Chitando was also optimistic that the diamond sector will contribute a fair amount towards achieving the 12 billion dollar target.

“The diamond sector has got a significant share to the attainment of USD 12 billion. There will be a specific target which will be given the Mining sector” Chitando said.

Chitando, however, ruled out lithium on producing a significant share towards achieving the 12 billion dollar target by 2023 but according to the Minister, the full potential of lithium in Zimbabwe will be realised after 2023.

“The full potential of lithium production will not be incorporated in the 12 billion dollar mark,” said Minister Chitando.

The Minister also said that Katanga will be signing a joint venture agreement with Zimbabwe Consolidated Diamond Company next week, the full details of the agreement will be unpacked by the President.

Hwange Thermal Power Station, the country’s second largest power plant, is operating with critically low stocks of coal due to low supplies from the miners amid fears the situation will impact already depressed power production.

The coal supply situation at the power station is likely to worsen in the summer season, which is set to commence soon, as miners’ open cast operations will be affected by the rains, sources said.

Information obtained by Business Weekly shows that the power plant is operating with a strategic reserve of about 60 000 tonnes, against a recommended minimum stockpile of 200 000 tonnes.

Sixty thousand tonnes of coal last just 10 days, raising the danger that the plant may run out of feedstock in the event that any of the major coal miners experience production challenges.

Despite frequent breakdowns, Hwange Power Station carries most of Zimbabwe’s load power needs, as production at Kariba Hydro Power Station, the country’s largest in terms of capacity, is severely constrained due to low levels of usable water in Lake Kariba for power generation.

Zimbabwe is currently experiencing power cuts which have seen businesses and households enduring long hours of load shedding.

“The situation is desperate and the authorities need to urgently take action,” said an anonymous source.

Another source told Business Weekly that the Zimbabwe Power Company, the power generation unit of State power utility, Zesa Holdings, was struggling to pay for coal supplies from the miners.

One of the companies is understood to be owed nearly $30 million “and this is seriously hurting the operations of the miners because the tariff is too sub-economic.”

The Zimbabwe Energy Regulatory Authority (ZERA) has since approved a 320 percent tariff increase to 162,16 cents per kilowatt hour (kWh) to help Zesa improve power supply.

The new tariff increase comes barely a month after ZERA approved another tariff hike.

Only in August this year, ZERA reviewed electricity tariffs to 38,61c/kWh to improve supplies in the country, after the US dollar tariff of US9,86c/kWh approved in 2011, but now payable in local currency, was eroded to as little as US1,01c/kWh following the currency changes in February this year.

But despite the tariff adjustment in August, the generation and distribution power utilities insisted the tariff remained insufficient to mobilise enough financial resources to support their operations.

This week, ZERA said the hike was part of efforts to restore normal electricity supply after the 38,61 cents/kWh was rendered ineffective by inflationary pressures.

“With the new tariff, we should be equal to task although it came a little bit late given that we are now getting into a rain season,” an official with ZESA said yesterday.

“The ability to pay has been enhanced and no one should be delayed (in terms of payments) in the supply chain.”

The Coal Producers Association (CPA), said capacitating the producers of the fossil fuel through timely payments was critical to boost supplies.

“We are way below required minimum stock levels and this is quite dangerous,” Ray Mutokonyi, the chairperson of CPA told Business Weekly in an interview.

“We need to start building the stocks now because we are going to be affected by the rains since most of our operations are open cast. Zesa needs to pay the producers on time,” he said.

As part of its submissions for a tariff hike, Zesa said it was spending $72 million on coal procurement. The coal prices also move in line with changes in the interbank market foreign exchange rate.

The power utilities also cited financial obligations related to power imports (US$19,5 million per month) in justifying the request for a tariff hike.

ZERA said the 38,61 cents tariff which the energy regulator approved in August had become inadequate for constant maintenance of equipment for consistent electricity supply, resulting in an acute deficit.

“At that level (38,61cents/kWh), the tariff was not enough to cover the operating costs of the electricity companies including coal, diesel and essential equipment leading to a shortfall of ZWL320 million in August 2019,” ZERA, the regulator said.

ZERA said it expects a, “significantly improved electricity supply position from Zimbabwe Power Company as the company can procure enough coal stocks.

“This will reduce load shedding hours and improve the reliability of supply from Zimbabwe Electricity Transmission and Distribution Company as the company is able to import electricity from the Southern African Power Pool.”_Business Weekly