Mining ZimbabweLatest Mining News, Policy and Industry Updates

Honourable Minister of Energy and Power Development fortune Chasi told Mining Zimbabwe that the Ministry is embarking on power decentralisation through the 38 solar power project so as to reduce power cuts and power imports.

Mirirai Melissa Ngoya

In an interview held on the 30th of August 2019, the Minister of Energy and Power Development gave an insight on the journey that they have embarked on, in an attempt to make Zimbabwe a nation that is capable of generating sufficient power.

Honorable Chasi said, “As of 31 July 2019, the Ministry of Energy and Power Development through the Zimbabwe Energy Regulatory Authority (ZERA),  licensed 42 solar projects.”

He further highlighted that “Four (4) small grid-connected solar projects have been constructed and are already operational in generating about  8MW feeding into the grid.’’

Hon Chasi said that the 8MW excludes small rooftop and solar home systems owned by individual households and the remaining 38 projects are at various stages of project development.

The minister went on to say that feasibility studies have been done for some of these projects but the majority of promoters have also started civil works at project sites.

The Minister indicated that the progress of the large scale grid-connected to the solar project solar is moving at a slow pace because all solar projects require capital investment for equipment which is imported from outside the country.

“These projects also require land and other sectors of the economy, as such, we are looking forward to first set everything that is required at ground roots level, ” He said.

“As the energy sector we are affected by the economic conditions currently prevailing in the country, foreign currency is required to procure most of the equipment and the investors also need to be assured of currency convertibility and the repatriation of their earnings in hard currency. This is a challenge that my ministry, that of Finance and Economic Development are faced with and are addressing.”

Honorable  Chasi further  alluded as thus,  “in order to accelerate project development in the solar sector, the government recently passed the Renewable Energy policy which will address some of the project development bottlenecks we experienced before.”

He said that the policy proposes to streamline and reduce licensing timelines. In addition, it also proposes a number of incentives such as duty-free importation of solar panels, solar equipment and lithium batteries, granting of National Project Status to solar projects tax rebates and tax holiday granting of Prescribed Asset Status to solar projects so as to raise local funding among other measures.

“It is important to highlight that the country has a peak demand of about 1800MW against a local generation supply that varies between 1000 and 1400MW.,” said the minister.

The introduction of the solar power project is said to be a measure that will cover up power shortages.

“We are unable to generate at our installed capacity of about 2300MW because of reduced water levels at Kariba and frequent breakdowns at Hwange and other smaller thermal power stations. We import power from our neighbours at a big cost to our economy in order to plug the power supply gap” emphasising that if this project come to pass Zimbabwe will be able to generate its power.

“Government wishes to see additional power generation from local power plants including solar. Actually, the licensed solar projects have a total capacity of about 1300MW when fully developed. If these projects are quickly developed then we can reduce electricity imports, save foreign currency and create employment in the country.”

“This will also help the country to achieve security of supply in the electricity sector. So going forward, we anticipate the accelerated implementation and development of the licensed solar projects.”

The government has not earmarked any special solar project for the mining sector. However, the honourable minister highlighted the law allows the mining firms to develop their own projects as independent power projects.

“according to the law, mining firms can develop their own projects as Independent Power Producers (IPPs) with the electricity used for own consumption. Any extra power supply may also be fed to the grid”

This has been implemented after the realization that the Kariba power supply is deteriorating on a yearly basis.  Therefore, one can actually conclude that power decentralisation and the use of clean power sources is the way out for Zimbabwe to sustain its own power generation.

Speaking to Mining Zimbabwe, Kwekwe patron for women’s association Perseviarance Zhou highlighted that her claim in Shurugwi has been profiting quite tremendously. Having huge gold pods which are giving her a surplus profit of nine loads per day with more than thirty tonnes per load,  Zhou is optimistic that her claim will yield significantly.

Mirirai Melissa Ngoya

Shurugwi area has been envisioned as the paradise of wealth, with plenty of gold deposits being discovered in the area, Shurugwi has attracted small scale mining activities. Mrs Zhou actually admitted that she sent her team to Shurugwi because the area is known for its capacious mineral deposits.

“I sent my team to go and mine at our Shurugwi claim following reports that there is plenty of gold in the area,”  said  Zhou.

Mrs Zhou outlined the gold production that they were able to meet in a week, emphasising on the amount of profit that they managed to retain within that period.

“on our first load, we got 30.340t which was a surprise to the whole team, our second load had 33,200t followed by 33.600t.’’

According to Mrs Zhou, their fourth load had a total of 33.540t of gold, whereas the fifth load had a  total of  36. 440t of gold.

” We continued to mine and our sixth load had a total of 36.440 tonnes of gold, followed by  33.540 t”

Mrs Zhou said that Shurugwi area has been quite impressive in its gold output signifying that we have a rich mineral resource base in Zimbabwe.

“Shurugwi mining area gave us hope as a team in the  mining sector, our richest load is the eight one in which we made a total of 38.200 tonnes of gold signifying the wealth that one can acquire within the course of a day.”

“our last load had 37.040 tonnes of gold, all in one day.”

‘’With the course of a week we did 60 loads and now we are working with  Afroshine  so that they will scale and grade the gold at their plant to get the final tonnage after removing unwanted staff.”

The gold mining game is on in Shurugwi as highlighted by Mrs Zhou and indeed it is safe to say that Zimbabwe is endowed with a rich mineral resource base.

The Zimbabwe Energy Regulatory Authority (Zera) has expressed concern at the mushrooming of roadside and backyard Liquefied Petroleum Gas (LP gas) filling posts, saying they should be regularised to avoid mishaps.

This comes amid a surge in LP gas-related accidents, with Zera saying consumption of gas is set to double by the end of the year due to increased demand caused by electricity shortages being experienced in the country.

The energy regulator says it is finalising modalities for regulation of the sector which is fast gaining popularity as an alternative energy source for household and industrial use across the country. Gas’ volatile nature and improper handling has resulted in explosions, leading to loss of property and life. At least 20 million kilogrammes of gas have been used so far, with projections of consumption doubling by the end of the year. ZERA head of petroleum department Engineer Andrew Guri said demand for LP gas was increasing, but per capita use remained about three kilogrammes.

“We have a challenge of unlicensed filling of LP gas cylinders,” he said. “We are fine-tuning regulations which will lead to a blitz on such practices. We will be carrying out the blitz as ZERA, with other bodies including the Environmental Management Authority, local authorities and their fire brigades.”

The blitz, he said, would also target unlicensed wholesalers of LP gas who do not meet the set criteria which includes having their own gas cylinders.

There has been at least 14 accidents involving mishandling of gas since 2014 with five of them occurring this year alone. Eng Guri said gas cylinders should be repaired and revalidated after every 10 years to ensure safety.

He said there was higher demand for LP gas than what was being supplied owing to foreign currency constraints.

He said the rate of uptake and growth in use of gas was significantly lower than in other countries where capita use was around 10 kilogrammes. Widespread use of the fuel, he said, had presented challenges in enforcing safety compliance. There are about 90 licensed operators in the trade of LP gas.

There are plans to regulate the price of gas which has been left to operators to determine. Gas is retailing at between $15 and $20 per kg, amid concerns over the quality being sold by roadside and backyard operators, which is used up at a faster rate than that from reputable suppliers. Gas is expected to alleviate pressure on the environment as people are now resorting to use of firewood for heating.

Shurugwi locals are becoming stumbling blocks for mining activities to bourgeon, as they are constantly engaged in skirmishes and blocking roads because of boundary issues, miners have said.

Mirirai Melissa Ngoya

The matron for Kwekwe women’s association Mrs P Zhou told Mining Zimbabwe that three days ago, there were three people from the community in which she operates in who were contestably hindering her mining activities by brewing disputes between her and ZIMASCO over boundary issues.

“There are three villagers who reported to ZIMASCO that we were working on extended boundaries, we called the Ministry of Mines and Mining Development and representatives from ZIMASCO discovered that we were operating within our mining consortium.”

Mrs Zhou indicated that after it had been transparent that they were operating in the allowed proximity of their mining area, the villagers went on to demand 150 USD from her.

“I was surprised that these people went on to demand some money in USD to allow us to use the road which passes through their fields. They barricaded the way with tree branches such that our trucks couldn’t pass through ’’ she said.

Mrs Zhou further commended the good works done by the police in making sure that she was safe.

“I called the police officer in charge for shurugwi and he told me that what they were doing was not permissible. The law authorities played their part, dispatching police officers to our mine to make sure that our operations are safe” said Mrs Zhou.

It is worth noting that the police are taking strides in controlling the villagers, making sure that they behave accordingly within the community.

All eyes will be focused on the Zimbabwe Miners’ Federation (ZMF) annual general meeting and inaugural conference and exhibition, from September 10-11 in Gweru, to see how mining stakeholders intend to align artisanal and small-scale miners (ASM) in the mainstream economy.

As the artisanal and small-scale miners, service providers, stakeholders, policymakers and Chamber of Mines converge at the Gweru Business Convention Centre, the venue of the ZMF AGM and Exhibition Conference, they will all be aiming at “revolutionising the ASM sector through formalisation”.

The ASM sector has been a major contributor to the country’s total gold output, yet their operations have long been stigmatised and largely viewed as informal. According to Fidelity Printers and Refiners,  the ASM sector in 2018 produced 22 tonnes out of the total 34 tonnes produced, representing a 65 percent contribution.

“The Government acknowledges that the ASM sector has for long been disenfranchised due to stigmatisation of their operations, hence the need to align them in the mainstream economy,” reads a statement from ZMF.

It is against this background that the conference speakers, who will include industry leaders and experts, will provide new perspectives on main issues and concerns affecting the artisanal and small mining sector. The speakers will also share cutting edge content and insights on the mining landscape.

This year’s AGM will be held in collaboration with the Ministry of Mines and Mining Development. Speakers will be drawn from the ministries of Mines, Finance and Energy as well as from Fidelity Printers and Refiners, Chamber of Mines and the Minerals Marketing Corporation of Zimbabwe (MMCZ).

Meanwhile, the exhibition is an opportunity for the ASM sector to network and meet buyers and decision-makers from the mining industry. It is also a chance to engage with manufacturers, distributors and suppliers. — ZiMining

The country’s legal gold buyer and exporter Fidelity Printers and Refineries’ gold buying prices are unarguably becoming competitive in the market, however, it is failing to attract more artisanal miners on board due to different reasons hence FPR should up it’s game, mining experts have said.

Rudairo Dickson Mapuranga

Speaking to Inside Mining Zimbabwe, the Deputy Minister of Mines and Mining Development Hon Polite Kambamura said that the gold buying firm is failing to create a mutual relationship with small scale and artisanal miners.

According to the Deputy Minister, the state-owned gold buying utility should find a way to make themselves visible to gold mining areas in order to save the miners’ time.

The minister also said that a nationwide presence is crucial to help the miner manage their money.

“It is crucial for Fidelity to be present to all the areas where mining is taking place in order to beat illegal buyers”

“In Makaha area in Mutoko, there is no gold buyer which means that the miner has to travel to Marondera to sale, which to some extent is not practical considering that some can only produce a gram,” said Hon Kambamura.

Supporting the same sentiment, former Zimbabwe Miners Federation Vice President, Engineer Chris Murove said that Fidelity should have a nationwide presence as this will positively impact on the miner’s cash flow management.

“Fidelity needs to have a nationwide presence as close to the miners as possible. This helps a miner’s cash flow management” said Engineer Murove.

Gold leakages in Zimbabwe have been so rampant and the police have been tirelessly working in conjunction with the Ministry of Mines, Fidelity and Zimbabwe Miners Federation to no avail.

Rumours have it that some oligarchs are involved in the smuggling of gold and these include the reserve bank bosses but nothing tangible has been put forward to prove that the reserve bank bosses are involved.

Economic experts have laid out that small scale and artisanal miners will not deliver their gold production to Fidelity Printers and Refineries due to lack of trust.

Rudairo Dickson Mapuranga

Speaking to Mining Zimbabwe an economic expert who refused to be quoted said that despite Fidelity paying miners money that is worth their production, most small scale and artisanal miners will not deliver their gold to the state gold buying utility because they don’t trust the current government.

According to her, both large scale and small scale miners are not delivering their full production of gold to Fidelity because they feel that the government might shift goal posts and resort to paying very little, unproportioned to their gold demand from miners using its delivery statistics.

“It all goes to trust, miners do not trust the current government, if they start delivering to Fidelity now, their full gold production will backfire in the near future”

“The government might pay less but demanding more… they will have the statistics” she said.

Commenting on the issue, a renowned geologist and mining expert Kennedy Mtetwa said that the lack of trust is brewed by the ministry of finance which changes policies willy nilly.

“Do you not see that the issue of trust emanates from the ministry of finance?” said Mtetwa.

When they were asked by Mining Zimbabwe to comment on the issue, Fidelity Printers could neither confirm nor deny the view but referred Mining Zimbabwe to the miners themselves to have more answers.

Gold delivery to Fidelity took a knock in the first half of the year compared to the same period last year despite the fact that Fidelity is offering competitive prices.