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“War” for gold at Mazoe mine

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“War” for gold at Mazoe mine

EIGHT MINERS were reported dead in Mazoe at Jumbo mine owned by Metallon Corporation after detonating explosives in a shaft they were illegally working. Metallon has been forced to put its mines under care and maintenance because of the unsustainable costs of running them without proper compensation for its proceeds from the government according to Mzi Khumalo.

However, reports have it that illegal miners are coming from Kwekwe and Shurungwi to control gold and shafts at the Mazoe mine which is heavily guarded by the police.

Therefore, there is a war to control illegal gold mining activities in Mazoe mine shafts with some police officials reportedly leading the way.

According to locals who spoke to Mining Zimbabwe, the police are running a syndicate which they are allowing miners to enter into the shafts at a tollgate fee.

“Miners who mine in the tunnels at Jumbo mine pay USD100 to enter the shafts and then another USD130 to come out of the mines,” they said.

When Mining Zimbabwe attempted to take pictures at one of the entries into the shafts, the Police threatened to tear gas the team.

“We will throw teargases at you if you attempt to take pictures here,” said one police sergeant.

Artisanal miners popularly known as “Mashurungwi” are fingered to be the terrorising other local illegal miners in quest of instilling fear and controlling goldfields in the underground tunnels.

“Those coming from Midlands are the ones causing problems, they want to have total control in the mines and they are also controlling ‘tollgates’ at which they are robbing miners of their gold,” said one local miner.

Yesterday the police harassed farm workers who work at Mahachi’s farm, looting their food and bringing down some structures belonging to the farm workers under the motive that they were looking for illegal miners who had found refuge at the farm resident.

According to the farm’s manager called Teddy, the police were identified breaking into the houses and looting and eating worker’s food.

“The Police are the ones who forced themselves into the houses without any search warrants, breaking down properties,” said Teddy.

According to Metallon gold’s Mazowe Mine General Manager Mr. Stanley Matanhire, the heavy police presence in the area was a cleanup campaign to remove illegal miners from operating in the area.

The miners are reportedly causing unnecessary fights and deaths in the area.

“Right now, there is an operation to clear off illegal miners,” said Matanhire.

Mazowe Mine is one of the oldest mines in Zimbabwe, and exploration and development in this region dates back to 1890, with over 1.4 million ounces of gold produced to date. Mazowe Mine comprises two underground operations, Mazowe and the BSV sections. The mine has a total of 247 claims over 2,939 hectares of landholding. Ore is processed in a single plant which consists of conventional crushing and milling and a carbon-in-leach facility.

Nine illegal panners die at Mazoe Mine

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Nine illegal panners die at Mazoe Mine

Nine illegal miners lost their lives at the Metalon Corporation owned Mazoe Mine on the 26th of May.

Metalon Corporation issued out a statement below regarding the incident.

“Metallon Corporation regrets to advise that on Sunday 26th May 2019 a fatal incident occurred at Mazowe Mine, a mine which is closed and on care and maintenance.

Illegal panners invaded the mine and took part in unlawful explosive blasting. Tragically, nine panners lost their lives.

None of these miners were employees of Metallon and all those involved with keeping the mine on care and maintenance have been accounted for.

The investigation is on-going and Metallon will provide further updates as necessary”.

South African carbon tax finally becomes law

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South African carbon tax finally becomes law

South Africa’s long-delayed carbon tax has been enshrined in law, the treasury said on Sunday, as one of the continent’s worst polluters transitions to lower emissions in its efforts to meet agreements on global climate change.

The tax was first mooted in 2010 but has been postponed at least three times after mining companies, steelmakers and state-owned power utility Eskom said it would erode profit and push up electricity prices.

The first phase of the tax is from June 1 to December 2022, with a tax rate of 120 rand ($8.34) per tonne of carbon dioxide equivalent.

Allowable tax breaks will reduce the effective rate to between 6 rand and 48 rand per tonne of CO2, National Treasury said in a statement after the tax was signed in to law by President Cyril Ramaphosa.

“A review of the impact of the tax will be conducted before the second phase and will take into account the progress made to reduce GHG (greenhouse gas) emissions in line with our National Determined Contribution,” the treasury said.

The second phase will run from 2023 to 2030.

Big energy users including Sibanye-Stillwater and ArcelorMittal’s South African operation had previously opposed plans to enact carbon tax laws, saying the levies are unaffordable and should be scrapped or delayed.

Local and overseas climate activists, however, believe the tax response falls short of emissions targets the country signed up for in the 2015 Paris Agreement. The tax is considered “highly insufficient” by the Climate Action Tracker group.

The treasury said it does not expect the tax to push up electricity prices.

Ailing state power company Eskom, which has implemented nationwide blackouts this year, was granted a near 10 percent tariff increase for 2019 by the regulator but has complained that the increase will not solve its deep cash crunch._Reuters

Zimbabwe awards platinum concession to firm linked to Nigerian billionaire

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Zimbabwe awards platinum concession to firm linked to Nigerian billionaire

Zimbabwe has awarded a concession to explore for and mine platinum to a company linked to a Nigerian billionaire as the country speeds up investment in a mining sector it hopes will transform the country’s struggling economy.

The concession comes just over a year after President Emmerson Mnangagwa’s government signed an agreement with Cyprus-based Karo Resources to develop a $4.2 billion integrated platinum mine.

Zimbabwe is seeking to quickly exploit its reserves of platinum, which is used in catalytic converters for limiting emissions at a time vehicle manufacturers are moving to electric cars powered by lithium batteries.

The information ministry said Bavura Holdings, in which Nigerian billionaire Benedict Peters is a major shareholder, would on Thursday sign an agreement to mine platinum on Zimbabwe’s mineral-rich Greak Dyke. It did not give details.

Peters, who is based in Ghana, is the founder of Aiteo Group, which has interests in oil.

Mines Minister Winston Chitando said last month the government would name two new investors to develop separate platinum mining projects west of the capital.

Anglo Platinum and Impala Platinum Holdings already mine platinum in Zimbabwe. Impala also owns a joint-venture mine with Sibanye-Stillwater.

A Russian consortium and Zimbabwean investors are developing a platinum project in Darwendale near Harare._Reuters

B2Gold not buying Shamva mine

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B2Gold not buying Shamva mine

Mid-tier Canadian miner B2Gold on Friday dismissed reports indicating it was mulling the acquisition of an idled gold mine in Zimbabwe, emphasizing it was not currently interested in any mergers or acquisitions.

Chief executive Clive Johnson reiterated B2Gold’s long-term growth strategy by saying that in addition to developing its existing pipeline of projects, the company continued to seek global exploration opportunities.

“Spread the word – no M&A from us,” Johnson told analysts on the miner’s earnings call on May 8, when reported total gold of 230,859 ounces, about 6% above plan. “We’re not going to pay for ounces,” he added.

“Spread the word: no M&A from us” — Chief executive, Clive Johnson

Bloomberg News reported on May 23 that the Vancouver-based miner wanted to add Metallon Corp.’s  Shamva gold mine to its portfolio. The article added that B2Gold would bid if it were exempted from a law in Zimbabwe that requires producers to sell all the metal to the country’s central bank.

The country’s two main miners – Metallon and RioZim – are suing the central bank over its payment arrangements. Gold miners are required by law to sell their output to Fidelity Printers, an arm of the Reserve Bank, which then pays them back partly in dollars and partly in local quasi-currency that cannot be traded outside of Zimbabwe.

Mining is the biggest source of foreign exchange for Zimbabwe, which has the world’s largest platinum reserves after South Africa. It is also known for its diamonds, though alluvial deposits are almost depleted, and it’s said to have eight out of nine “rare earth” minerals and a processing capacity for gold, diamond and chrome._Mining.com

Chiadzwa shootings, diamond panner yet to be buried

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Chiadzwa shootings, diamond panner yet to be buried

Delays in carrying out a postmortem for a 25-year-old illegal diamond miner who was shot dead by a Zimbabwe Consolidated Diamond Company (ZCDC) security guard has led the family of the deceased to cry foul.

Terrence Masendeke, from Jori village under Chief Nyashanu, was part of the over 300 illegal diamond panners who invaded Bravo near Muchena in the Marange diamond fields, when he was shot dead on May 15.

Thomas Masendeke, the father to the deceased, yesterday said they have tried in vain to get their son’s remains from Mutare General Hospital mortuary for burial.

“My son died on May 15, and it is very clear that he was shot dead. We went to Mutare General Hospital on May 17 to collect the body so that we bury him in Buhera. But staff at Mutare General Hospital mortuary told us that the body would go to Harare on June 25 for post-mortem. That means the process will take 41 days,” he said.

“We were referred to the police, who had their own explanations that we failed to understand. Mourners are still gathered in Buhera. Surely, can we wait for 41 days to bury our relative? We are very aware that he was shot and we are surprised as to why the post-mortem process will not be done until June 25.”

Another relative, Richard Masendeke, said he suspected that the delay was to cover up underhand dealings going on at the diamond fields.

“I believe that they are fabricating falsehoods and buying time to save corrupt officers who were working with organised syndicates because the whole saga was a well-calculated one,” he said.

National police spokesperson, Assistant Commissioner Paul Nyathi yesterday directed the family to Officer Commanding Police in Manicaland, Senior Assistant Commissioner Wiklef Makamache.

“The family should go and see officer commanding in Manicaland, Senior Assistant Commissioner Makamache. I am now contacting his office over the matter,” he said._NewsDay

Zimbabwe pledges mine that doesn’t exist, to borrow $500m

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Zimbabwe pledges mine that doesn’t exist, to borrow $500m

The collateral for African Export-Import Bank’s $500 million loan to Zimbabwe is a mine that hasn’t been dug yet, people familiar with the matter said.

The loan, which will be paid over four years when production starts, is backed by a mine that Great Dyke Investments, a venture between Russian investors and the Zimbabwean military, plans to build at a cost of $4 billion, the people said. The mine, for which Afreximbank is arranging funding, is struggling to attract financiers because of the interest held by the military’s Zimbabwe Defense Industries Ltd.

Short of foreign currency, fuel and medicine and battling the highest inflation since 2008, Zimbabwe is mortgaging its mineral wealth in exchange for foreign currency. Lines of credit from Afreximbank were secured using gold exports as collateral, Zimbabwe’s Financial Gazette reported in February, citing Reserve Bank of Zimbabwe Governor John Mangudya.

Short of foreign currency, fuel and medicine and battling the highest inflation since 2008, Zimbabwe is mortgaging its mineral wealth in exchange for foreign currency

Zimbabwe secured the $500 million loan, the origin and terms of which were not disclosed, after businesses complained that the interbank currency market instituted in February wasn’t functional because there weren’t enough dollars to meet their needs. The RTGS$, a quasi-currency that isn’t traded outside Zimbabwe, is exchanged on the market. The government abandoned its own currency. the Zimbabwe dollar, in 2009 after a bout of hyperinflation.

George Guvamatanga, the permanent secretary in the finance ministry, said he couldn’t comment, citing confidentiality agreements. Afreximbank didn’t immediately respond to a request for comment.

Afreximbank, which is based in Cairo and is partially owned by African governments, has lent to Zimbabwe before. In addition to the gold-backed loan it extended a $600 million line of credit to the country in 2017. While the country is mired in an economic crisis, it has the world’s third-biggest platinum group metals deposits and abundant reserves of gold, iron ore, diamonds and lithium. It also has some of the most developed infrastructure in Africa and one of the region’s best educated work forces.

The structure of the deal was decided earlier this month at a meeting attended by officials from Zimbabwe’s treasury, central bank, mines ministry, Afreximbank, and Great Dyke Investments chairwoman, Hespinah Rukato, the people said. The mine could produce about 800,000 ounces of platinum group metals a year if built.

Rukato declined to comment. Officials mines ministry said the couldn’t immediately comment. Mangudya wasn’t available when his office was called._Bloomberg News

Zimbabwe mine output subdued

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Zimbabwe mine output subdued

Zimbabwe’s mining sector was subdued in the first quarter due to a severe dollar crunch that affected production, with gold the most hit, the mining chamber said, adding some bullion miners had experienced recently introduced power cuts.

Mining generates most of the export earnings for the southern African nation, which faces a severe shortage of dollars that has led to a scarcity of fuel and medicines.

Miners, including those of gold and platinum, are paid dollars for half of their output while the balance is paid in the local RTGS dollar currency

Isaac Kwesu, CEO of Chamber of Mines, which represents large mining companies, said mines had during the first quarter to March faced delays in getting their dollar payments from the central bank.

Miners, including those of gold and platinum, are paid dollars for half of their output while the balance is paid in the local RTGS dollar currency.

Initially, miners faced delays of up to 12 weeks to get their U.S. dollars but the time leg had been reduced to 2 weeks, although miners want to be paid in one week, Kwesu said.

“Preliminary figures indicate that the first quarter was not a good performing period for our mining industry as most key minerals recorded some negative growth,” Kwesu told reporters.

Kwesu said he expected mining production to improve as mining firms receive their dollars quicker and get more in local currency as the RTGS dollar continues to weaken.

Miners say they want to be allowed to keep 70 percent of their dollar earnings to allow them to import equipment and mining consumables, including fuel, in a timely manner.

Gold deliveries to central bank unit Fidelity Printers and Refiners, which buys all the country’s gold, declined to 6.5 tonnes from 7.3 tonnes during the January-March quarter.

Zimbabwe produced a record 33 tonnes last year and has set a target of 40 tonnes this year.

The mining chamber’s president Batsirai Manhando said mining companies were for now spared from the indefinite rolling power cuts, known locally as load shedding, throughout the country.

“There has been some loading shedding in some of the gold mining houses but not that significant to affect performance yet because this is a recent problem,” Manhando said._Reuters

ZERA effects price adjustment on fuel

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ZERA effects price adjustment on fuel

Fuel prices

Top ten gold producers in Zimbabwe 2019

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Top ten gold producers in Zimbabwe 2019

For the past decade, the country’s mining sector has been facing a myriad of challenges ranging from fluctuating global mineral prices, subdued working capital and above all brain drain due to prevailing economic challenges.

However, despite the prevailing economic challenges, some mining houses have managed to defy the odds by coming up with problem mitigating measures to adapt to the hardships.

Some companies during the past decade have folded never to come back, some struggling, but without measuring all of them with the same yardstick, some have managed to thrive, posting the best results financially and in production terms.

These are the top ten gold producers in Zimbabwe.

1. Freda Rebecca

Freda Rebecca is the largest gold producer in Zimbabwe. It’s located close to Bindura’s Trojan Nickel mine, 90km north of Harare.

It mines 3,000 tonnes of ore and removes 8,000 bank of overburden on an average every day. The mine poured its first gold in April 1988.

For over 10 years, the company has navigated the demands of mining in Africa with a fair degree of skill, experience and agility. Operating in Zimbabwe, in particular, has been challenging at times, especially when hyperinflation, currency instability and issues with indigenisation laws caused uncertainty. In more recent years, with the adoption of the US$, a degree of normalisation has prevailed.

The company underwent a significant change in executive direction in 2015, following an EGM initiated by shareholders over corporate governance. Since then, a new board of directors has been appointed and a root and branch reform across the group and at its operations has occurred.

Process of restructuring the group’s operations continues, as the business is set on a long-term sustainable growth path once again and the Group is now emerging from one of its most challenging periods with Cautious optimism.

2. Blanket Mine

Blanket Mine is located in the province of Matabeleland South, Zimbabwe. It is located about 15 km northwest of Gwanda and 140 km south of Bulawayo.

The village grew up around the eponymous gold mine and provides a Residential and commercial centre. Its population at the time of the 1982 census was 1,346 people. The Matabeleland mine was established in 1904 at the northwest end of the Gwanda Greenstone Belt. Gold had previously been mined on an artisanal basis but was industrialised by the Matabele Reefs and Estate Company, which operated the mine until 1911 when it was sold to Forbes Rhodesia Syndicate. It apparently ceased operations after 1916 but resumed in 1941 under a new owner, F.D.A. Payne.

History

The Canadian mine company Falconbridge Ltd. took over in 1964 and ran it until 1993, producing over 500,000 ounces of gold from 4 million tons of ore. It was sold to Kinross Gold, which produced another 400,000 ounces of gold from 2,4 million tons over the following 12 years

Blanket mine despite it being a mid-tier gold producer has managed to outperform its peers in the mining sector. Since inception, the mining company immensely showed its image as a good corporate citizen and has been on the best-performing companies owned by foreign investors.

Now owned by New York Stock Exchange-listed Caledonia Mining Corporation, run by Steve Curtis the mine is currently carrying out an ambitious expansion drive aimed at producing 80 000 ounces of gold by 2021.

The company’s strategic focus remains the implementation of its investment plan at Blanket Mine which was
Announced in November 2014 and is expected to extend the life of the mine. The mining firm has been consistent in its production and profitability since dollarisation and has been one of the companies of note in terms of retaining shareholder value through the consistent payment of dividends.

3. RioZim

Rio Zimbabwe, a diversified miner owns two gold mines which are Renco Mine and Cam and Motor Mine in Kadoma.

Renco is 100% owned by RioZim Limited. Mining rights are held through mining claims, a mining lease and a special grant covering a total area of 2 736 hectares. Renco is located in the South-East of Zimbabwe in Nyajena communal lands, approximately 75km southeast of Masvingo.

Cam and Motor Gold Mine is the second project in Rio Gold’s operations. The mine is located in the Kadoma area of Mashonaland West, Zimbabwe covering an area totalling 1, 151 hectares.

Rio Zim is also the owners of Dalny Mine, formerly owned by Falcon Gold.

4. Metallon Corporation

Metallon Corporation is a gold producer, developer and explorer with operations in Zimbabwe and the Democratic Republic of Congo. Metallon used to be one of Zimbabwe’s largest gold mining company operating four gold mines throughout the country owned by Mzi Khumalo.

Over the past two years, things have changed, a situation which saw the miner offloading Arcturus Mine while two of its mines have since closed due to the prevailing economic conditions. The miner currently owns How Mine
(Flagship), Mazowe, Shamva and Redwing Mines.

Metallon Corporation in 2015, gold production was 97,000 ounces and the target was 120,000 ounces in 2016. Across the group, Metallon has a significant resource base with a JORC-compliant 8.3 million ounce resource.

5. Sabi gold Mine

Sabi gold mine claims were first pegged in the 1890s with the first recorded production in 1909. It was acquired by ZMDC in 1984. ZMDC owns 100% Kimberworth Investments (Pvt) Ltd trading as Sabi Gold Mine, a company currently running the mine. The mine employs about 450 employees and is currently serviced by one rectangular double compartment shaft reaching down to 15 metres below 12 level elevation. The Principal mining method is underhand stopping. The mine has a capacity to treat 450 tonnes of ore per day.

The Zvishavane based miner resumed operations in 2017 after an agreement was reached between a local
Investment consortium, Chandiwana Mining Cooperation and the Zimbabwe Mining Development Corporation.

Part of the deal saw Chandiwana Mining Corporation investing about $26 million into the gold miner. Chandiwana Mining Corporation is a local investment vehicle composed of  Zimbabweans based in the Diaspora who are investing in mining.

The gold miner has been undergoing renovations after securing funding from the investor. The mine closed down in May 2014 due to the shortage of working capital and ballooning debt levels.

6. Falcon Gold

Falcon Gold Zimbabwe Limited is a gold mining and exploration company in Zimbabwe.

The company formerly owned Dalny mine in Chakari, Venice Mine in Kadoma and Golden Quarry mine in Shurugwi. Founded in 1991, Falcon Gold Zimbabwe is a subsidiary of the New Dawn Mining Group. New Dawn Mining Corp involved in the exploration, development, extraction, processing and reclamation of precious metal deposits in Zimbabwe.

It primarily explores for gold, base metals and precious metals. Falcon Gold Zimbabwe Limited also has an operational processing plant and Ancillary infrastructure which supports a central processing plant that treats ore from Pickstone.

7. Pickstone Peerless

Australian Stock Exchange Listed Vast Resources has a 25% indirect interest in the Pickstone-Peerless Gold Mine, and mining claims surrounding the former Giant Gold Mine, in Zimbabwe, over both of which it retains Board control.

The 584ha Pickstone-Peerless Gold Mine is located 100km southwest of Harare and has historically produced over 400,000oz gold. Pickstone-Peerless has a current JORC Resource of 62 million tonnes grading 1.8 g/t, containing 3.56 million ounces of gold. Included in this Resource is an open-pittable Ore Reserve of 16.6Mt grading at 1.9 g/t for 1.02 million ounces of gold.

Full mine infrastructure was commissioned in H1 2015 with production from the oxide cap commencing in September 2015. Gold production is close to 20,000 troy oz per annum with a cash cost per oz circa US$700.

Work is underway to commission a sulphide processing plant to treat the open cast sulphides, with first sulphide production scheduled in 2018 to build up mining and processing rates to 33,000 tonnes per month at an average grade of between 3-4g/t gold once the oxide resource is fully depleted. Gold production is expected to increase to
Approximately 50,000oz per annum.

8. Duration Gold

Duration Gold Limited offers gold exploration and production services. The company owns 5 core assets with historic production of 4.6 million oz. It also sells gold at international spot prices. The company was founded in 2006 and is based in Bulawayo, Zimbabwe. Duration Gold Limited operates as a subsidiary of Clarity Enterprises Limited.

One of its flagship gold mines is Vumbachikwe, which is one of Zimbabwe’s oldest gold mines.

9. Bilboes Holdings

Bilboes Holdings (Private) Limited owns and operates gold mines in Zimbabwe. It engages in mining, exploring, and producing gold. The company was founded in 1989 and is based in Harare, Zimbabwe.

Bilboes own and operates four gold mines namely Isabella, Bubi, When and McCay’s ‘existing mines’ all in the Bubi Greenstone Belt of Zimbabwe. The mines were acquired from Anglo American Corporation Zimbabwe Limited (AMZIM) in 2003 together with most of AMZIM’s gold mineral rights in Zimbabwe.

10. Eureka Gold Mine

Vast Resources holds a 23.75% interest in the Eureka Gold Mine in Zimbabwe. The mine is situated about 150km north of Harare and 300km from the Pickstone-Peerless mine.

Eureka is a modern gold mine designed to produce up to 70,000oz of gold per annum from an open pit operation. Operations were suspended in 2000 due to high costs and low gold prices. The mine is currently on care and maintenance and the Company is focused on recommencing production in the near term.

The miner has been dormant but was last year commissioned by President Emmerson Mnangagwa.

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