Mining ZimbabweLatest Mining News, Policy and Industry Updates

AFRICAN lithium developer, Prospect Resources, says a sample of its Arcadia mine premium grade lithium has passed the second qualification stage with one of the largest glass manufacturers in Europe.

The Australian company operates the Arcadia lithium mine project 38 kilometres east of Harare, which will produce chemical grade (electric vehicle batteries) and technical grade (glass and ceramics) lithium.

Lithium is an integral component of Government ’s plans to build a US$12 billion mining industry by 2020 and the mineral is expected by that time to contribute at least US$500 million annually.

Prospect provided a sample for larger-scale laboratory testing and analysis and the outcome is that the ultra-low iron petalite surpasses the glass ceramic market’s stringent ultra low iron and alkali technical specifications.

If the product passes the final stage, Prospect will secure a potential lucrative market with one of the largest European-based consumers of the premium technical grade petalite.

To pass the final step in the qualification process, the product needs a full test in the production kiln, which will be undertaken this year, once the pilot plant is constructed and larger volume of product is available.

Prospect is also in discussions with another industry leading glass ceramic producer based in Europe with a view to enter into a Memorandum of Understanding, where both parties seek to develop a commercial relationship.

The Australia Stock Exchange listed firm is currently engaging with glass and ceramics customers across Europe, Asia and Africa who collectively, consume over 130 000 tonnes per annum of ultra-low iron petalite.

Prospect’s ability to consistently produce approximately 100 000 tonnes per annum of ultra-low iron petalite product from the Arcadia mine, over its 15,5 year Life-of-Mine, is a key attraction for customers.

“Prospect anticipates being one of only two mines in the world capable of producing ultra low iron petalite and we expect to be the largest player in this natural oligopoly – none of which are based in Australia.

“Demand for Prospect’s ultra low iron petalite is expected to be spread equally between Europe and Asia, with a considerable supply deficit for the foreseeable future,” the ASX listed firm said in a statement this week.

Prospect Resources has already appointed the African Export and Import Bank (Afreximbank) as lead arranger for a US$143 million syndicated loan facility it needs to finance the lithium mining project.

The open-pit lithium mining project, regarded as one of the world’s biggest hard rock lithium resources, was granted National Project and Special Economic Zone status by the Government back in October 2017.

An initial capital outlay of about US$162 million is required to develop the Arcadia lithium-ion batteries, used for portable electronics and electric vehicles project, and petalite mine to production and it is expected this will take about 18 months from the date of financial closure of project finance.

Development of Arcadia is key to Government’s vision of growing mining to a US$12 billion by 2023 and a definitive feasibility study (DFS) proved the lithium project will earn Zimbabwe at least US$3,5 billion over its life of mine.

Arcadia is Africa’s most advanced lithium-ion batteries project, which will raise world 5th largest producer, Zimbabwe’s ranking when it comes into production.

Zimbabwe has one producing lithium mine — Bikita Minerals.

FOUR men armed with machetes knobkerries and shovels allegedly attacked mineworkers at Inyathi in Matabeleland North, getting away with 150kg of gold ore.

Dumezweni Sibanda (40), Nkosinhle Mvundla (25), Langelihle Sibanda (28) and Nduna Kanye (18) allegedly attacked and injured Mr Nkosikhona Sibanda on the neck with an unidentified sharp object in the course of the robbery.

Sibanda and his accomplices were not asked to plead to robbery when they appeared before Bulawayo magistrate Mr. Lizwe Jamela.

Sibanda, Mvundla, and Langelihle were remanded in custody to tomorrow while Kanye was remanded out of custody to the same date on his own cognisance.

Prosecuting, Mr Terrence Chakabuda said on Thursday last week, Sibanda and his accomplices approached employees at Three Star mine in Inyathi. 

“The accused persons who were armed with machetes, knobkerries and shovels assaulted employees who were on duty. They struck Mr Nkosikhona Sibanda on the neck using a sharp object,” he said.

The gang then loaded 150kgs of gold ore into their vehicle and went away.

The matter was reported to the police leading to the recovery of the stolen gold ore and the arrest of the accused persons.

Recently, three men appeared in court after they allegedly attacked mine employees at Impi East mine in Inyathi and got away with half-a- tonne of gold ore_The Chronicle

ZIMBABWE’S ongoing power shortages contributed to at least 20% output losses to the country’s mining sector, the 2019 third quarter treasury bulletin published by the Finance Ministry has reported.

Alois Vinga

The bulletin acknowledged that the majority of players in the extractive sector experienced severe power outages.

“Power shortages was the major challenge for the mining sector and it is estimated that about 80% of the miners suffered regular and prolonged power outages resulting in output losses of around 20%,” the document says.

The details come at a time when Zimbabwe has been experiencing increased power outages running between 12 to 18 hours a day, something that has forced prolonged production cut downs across industrial sectors.

According to the bulletin, Gold output in the third quarter of 2019 at 8 744 kg was 23% lower than the 11 412 kg realised during the same period in 2018.

Output was weighed down by low deliveries from small scale miners. As a result, cumulative gold output at 21 971 kg was below the 2018 average output of 29 524 kg.

Platinum output stood at 3 159 kg, about 17 % lower than 3 814 kg produced in the same period of 2018.

Says Treasury, “As a result, cumulative output to September 2019 was 10 271 kg lower than the 10 996 kg realised during the same period in 2018.”

Diamond output during the period under review stood at 0.5 million carats, which is lower than the 0.6 million carats produced in the similar period of 2018 also partly because of Cyclone Idai linked disturbances.

Chrome output declined to 394 253 tonnes compared to the 447 625 tonnes produced during a comparable period of 2018 as the sector was heavily affected by power outages which were compounded by the exiting of one of the major produces in the industry.

Coal output, at 0.8 million tonnes during the third quarter of 2019, was 25% lower than the 1.1 million tonnes produced in the comparable period of 2018.

The lower performance of coal is also due to the shortage of working capital as the surging inflation has pushed the cost of production up.

Reads the bulletin on the status of energy, “Electricity generation underperformed compared to the set target and the previous quarter. Electricity produced and sent out during the quarter amounted to 1 505 GW/h against a target of 2 355.6 GW/h and 2 256.3 GW/h recorded in the previous quarter.”

NewZimbabwe

Africa lithium company, Prospect Resources, which is listed on the Australian Stock Exchange, says its ultra-low iron petalite product has progressed through the secondary qualification process with one of the world’s largest glass-ceramic manufacturers, based in Europe.

Within the glass-ceramics market, ultra-low iron petalite is a key ingredient in the manufacture of dark glass. It is used in the glass and ceramics industry, for example in the production of glass-ceramics cooktops.

Prospect Resources executive chairman, Hugh Warner on Monday said the current results from analysis shows the samples are of a much higher quality.

“Our ultra-low iron petalite product has progressed through the secondary qualification process with one of the world’s largest glass-ceramic manufacturers, based in Europe.

“The outcome from their analysis is that the ultra-low iron petalite surpasses the glass-ceramic market’s stringent ultra-low iron and alkali technical specifications,” he said.

The final test results of the product’s qualification is expected to be undertaken in 2020, once the pilot plant is constructed and larger volume of product is available.

Warner also said Prospect is in discussions with an additional industry-leading glass-ceramic producer based in Europe with a view to enter into a Memorandum of Understanding where both parties seek to develop a commercial relationship.

“Prospect is currently engaging with glass and ceramics customers across Europe, Asia and Africa who collectively, consume over 130,000 tpa equivalent of ultra-low iron petalite. Prospect’s ability to consistently produce approx. 100,000tpa of ultra-low iron petalite product, over its 15.5 year Life-of-Mine, is a key attraction from customers,” he said.

Prospect anticipates being one of only two mines in the world capable of producing ultra-low iron petalite and we expect to be the largest player in this natural oligopoly – none of which are based in Australia.

Demand for Prospect’s ultra-low iron petalite is expected to be spread equally between Europe and Asia, with a considerable supply deficit for the foreseeable future.

REDCLIFF MP, Lloyd Mukapiko has hit out at the state security apparatus for indiscriminately attacking civilians in desperate attempts to contain the menace posed by machete-wielding gangs in his constituency.

This comes after the state has deployed police and the army in the steel making suburb in a bid to combat acts of violence carried out by illegal gold panners commonly referred to as maShurugwi.

Innocent civilians have however been caught up as the security organs have reportedly been attacking residents who have nothing to do with the machete gangs.

Mukapiko was up in arms with the state for allegedly introducing a curfew in the gold mining area.

“Whilst it is commendable that the army and the police have been deployed to try and contain the machete gangs in the area, it is however concerning that they are also assaulting innocent civilians in the process,” he said.

Mukapiko said he was receiving reports of civilians who have been injured in the random police-army attacks.

“We have been receiving reports that civilians are sustaining severe injuries. The situation points to a situation in which citizens have turned into double victims; that is at the hands of the machete gangs and now at the hands of the security sector.”

The MDC legislator said people in his constituency now lived in constant fear of being attacked by the state security apparatus.

“Residents can no longer walk freely especially during the night as they risk severe assaults after being mistaken for machete gangs.

“This indiscriminate beating of innocent civilians must stop so that the security individuals can focus on the real culprits, the machete wielders,” he said.

Mukapiko said he was in the process of engaging the state to try and implore the authorities to exercise restraint when dealing with innocent civilians.

A week before, rival machete gangs believed to be belonging to the notorious Dube family and another from the Maketo family clashed at a shopping complex in the suburb of Torwood with a gang member belonging to one of the groups hacked to death.

Three others were rushed to Kwekwe General Hospital after they got severely injured.

Police are investigating the matter.

Mukapiko said the rivalry between the two groups was a long-standing affair which police have been reluctant to deal with.

He added, “When people go to make reports if assaulted, no action is taken against the culprits. We suspect the police are afraid of the gangs,” he said.

The MP said it was time people protected themselves from the marauding gangs.

New Zimbabwe

The Zimbabwe Energy Regulatory Authority (Zera) has dismissed a fake fuel price increase notice circulating on social media.

In a statement today, Zera urged members of the public to disregard the notice, adding that fuel increases are communicated via the organisation’s official communication channels through notices that bear the official stamp.

“The Zimbabwe Energy Regulatory Authority (Zera) would like to advise its stakeholders and members of the public to disregard a fake fuel price increase notice being circulated on some sections of the social media,” reads the statement.

“Stakeholders are further advised that the fuel review notice from the regulator bear the official Zera stamp and are also published through the organisation’s media communication platforms which are twitter @zeraenergy, Facebook ZERAenergy or on our website www.zera.co.zw .”

Zera last increased fuel prices on November 24, 2019.

Diesel is currently pegged at $17,90 per litre while petrol is pegged at $17,44 per litre.

The fuel supply situation in the past three weeks has significantly improved as most service stations are accessing the precious liquids, resulting in shorter queues being experienced.

The Sunday Mail

THE Zimbabwe Power Company (ZPC) has begun US$40 million refurbishing Hwange Thermal Power Station Unit 3 to restore 120 megawatts to the national grid.

ZPC said the project was at 31 percent and is expected to be complete by March.

The refurbishment is being done using funds from the Africa Export-Import Bank (Afrexim) although some delays in disbursements affected the pace of implementation.

“Currently, Units 1, 2, 4 and 5 are generating about 400MW. The addition of Units 3 and 6 will see an increase of electricity by 260 MW.

“This will mitigate suppressed power generation due to reduced generation at Kariba Power Station caused by low water levels,”said ZPC..

“Completion of Unit 3 is likely to be around March 2020 if everything goes according to plan.”

The refurbishment of Unit 3 comes at the same time construction for Unit 7 and 8 is ongoing and is expected to be completed in two years, adding 600 MW to the national grid.

Hwange Power Station has a capacity of 920 MW, making it the second largest power plant in the country after Kariba which generates 1 050 at maximum output.

Hwange’s capacity has been reduced to 400 MW due to obsolete equipment.

The country has been battling acute power shortages. To improve electricity supplies, the Zimbabwe Energy Regulatory Authority (ZERA) has been licensing a number of independent power producers focusing on solar and mini-hydropower plants_The Sunday Mail

Zimbabwe runs the risk of creating a deadly militia that will cause bloodbath and target opposition members in the lead-up and during the 2023 elections, if the machete-wielding gangs are not brought to book, a leading human rights activist has warned.

The country is currently struggling to contain machete gangs, operating under the moniker, Mashurugwi, who are running riot in small scale mines across the country and the blame has largely been pushed towards the government’s impunity as the criminals are alleged to be connected to powerful political offices.

Heal Zimbabwe Trust Director, Rashid Mahiya told 263Chat this week that the failure by the government, to reign in on the serious issue, shows that there is a high risk that the gangs will try to protect their mines in the lead up to the 2023 elections as any threat to their source of livelihood would be met with violence.

He noted that those who are controlling the gangs might feel that their political power is threatened then unleash the criminals to send warnings.

“Because they are aligned to political parties and powerful politicians, there is a danger that we are creating a militia that will be abused during political processes, especially around elections and that is a serious issue.

“Given the fact that we have had violent elections in the past, we now have a new phenomenon where people walk armed and can use those weapons against citizens to defend their bosses and funny enough, they will not face the wrath of the law. So we are headed for instability if this issue is not addressed soon,” he said.

He noted that although the security forces might be willing to intervene, their wings are clipped as there is no direct order, especially from the President, Emmerson Mnangagwa to deal with the issue.

“Each time these criminals are arrested, they are let loose and this disempowers the security forces,”
Mahiya said.

He said the greatest fear would be that the militia, which will be created outside the normal security forces will be used to target opposition members and they will likely be protected since they are all partisan.

“There is a selection process and it is done in a partisan way and it’s also dicult for law enforcement agents to interfere. These criminal are connected to people in high offices,

“They can be used against citizens, they can be used against opposition players,” he added.

He urged the government to act decisively as it has done in the past with opposition party demonstrations and civil society riots.

Government has been blamed for remaining silent but last week Home Affairs minister Kazembe Kazembe warned that the gangs would be brought to book as no one is above the law.

“Law enforcement officers are on high alert ready to deal with machete gangs. Several perpetrators are now in police custody as we speak and nobody is above the law. All cases will be dealt with,” he said.

The Parliamentary Portfolio Committee on Mines and Mining Development advocated for stringent
penalties for the machete gangs.

Heal Zimbabwe Trust Kazembe Kazembe MaShurugwi Rashid Mahiya Committee chairperson Edmond Mukaratigwa said Wednesday that there should be conversations by various stakeholders to provide clear direction on how to deal with the criminals.

“The committee further resolved that government kick-starts legislative procedures to allow for stier penalties with regard to such perpetrators as was done in the Criminal Procedure and Evidence Act regarding the vandalism of railway and electrical material, among others.

“The committee called for an urgent meeting against the background of the need to achieve sustainable mining business in the mining sector,” Mukaratigwa added_263Chat