Mining ZimbabweLatest Mining News, Policy and Industry Updates

The Zimbabwe Environmental Lawyers Association (Zela) has urged the government to focus more on giving back to the artisanal and small-scale mining sector during the coronavirus-induced lockdown by ring-fencing gold royalties to fund personal protective clothing and hand sanitisers.

The government imposed a national lockdown on March 30 to contain the impact of Covid-19. The pandemic has resulted in hundreds of thousands of fatalities globally and has wreaked havoc on economies worldwide. The country had 46 confirmed cases of Covid-19 with 13 recoveries and four fatalities as of Tuesday this week.

The association said there is a need for the government to facilitate “capacity building programmes for ASM players on safety, health and environment to help remove the culture of non-compliance with public health, safety and environment standards and in particular the use of the PPE and applicable laws.”

Following the exemption granted to small-scale and large scale mining companies, Zela added that civil society groups should continue monitoring and publicly reporting on the level of implementation and compliance on safety and health measures by mining companies and small-scale players in preventing and containing Covid-19 as stipulated by law.

The association also added that the government should monitor smuggling and illicit financial flows.”There is need for the government to closely monitor airports and borders to ensure that there is no smuggling of gold, diamond and other minerals out of the country. In turn, airlines still flying into the country should undertake due diligence measures to identify any risks of exposure to smuggling and illicit financial and mineral flows.”

The government was also encouraged to conduct effective Covid-19 screening and testing to reduce the spread of the virus in mining communities during the lockdown.

Source: Zim Independent

Zimbabwe’s Apex Bank is failing to ship in enough foreign currency to pay for gold purchases, a miners’ group says.

Fidelity Printers & Refiners (FPR), the central bank unit which is the country’s sole gold buyer, cannot import US dollars via air due to global travel restrictions. This is according to the Zimbabwe Miners’ Federation (ZMF), which represents small scale miners, in a letter to members on Thursday.

“Pursuant to our meeting with FPR today, kindly be advised that FPR relies mostly on foreign exchange brought in by air transport. Due to the COVID-19 pandemic, there has been a limited number of flights into the country and this has adversely affected their operations,” said Wellington Takavarasha, chief executive officer of ZMF.

“Kindly bear with FPR whilst they are making frantic efforts of ensuring that all the gold deliveries are paid for. By next week, we expect the situation to have normalised. Once again, as ZMF we sincerely apologise to our hard-working miners who have been adversely affected by this phenomenon.”

Flight bans have grounded many airlines and cut the number of flights into Zimbabwe, which has itself restricted flights to cargo and selected passenger airlines.

Gold producers in Zimbabwe keep 55% of their sales proceeds in foreign currency. The remainder is sold on the official currency market rate.

Miners had already been suffering from delays by the RBZ to remit the forex portion of gold sales.

COVID-19 impact

In March, the Chamber of Mines said Zimbabwe could suffer a 60% fall in mineral output in the second quarter and lose over US$400 million in mining revenue due to the impact of the coronavirus.

Zimbabwean miners, both large and small scale, have continued operations during the lockdown which began late March. But they are seeing the disruption of critical supplies, a dip in commodity prices and difficulties in moving output to market due to global freight restrictions.

Zimbabwe’s annual gold output fell 16.8% to 27,6 tonnes in 2019, coming off its record highs in 2018, as producers battled with power cuts and the currency crisis.

Newsday

Initially, the ASGM sector had been rendered non-essential, and operators were placed under lockdown with other non-critical sectors. However, miners and other stakeholders advocated for an exception, articulating the sustainability challenges arising from the lockdown, and the pivotal role occupied by mining in economic development. Over 200 miners applied for exemption through the umbrella small-scale mining body Zimbabwe Miners Federation (ZMF), and the exemption was granted. However, now all mining operations have been granted permission to operate.

By Pact Zimbabwe

COVID-19 has had an impact on international gold prices which have been moving positively since the last week of March. The price of gold per ounce has steadily risen to a new peak of over USD 1 700 in over five years, with the precious metal regaining popularity as a store of value in the face of a depressed investor market and global economic recession. Unfortunately, other aspects of the mineral supply chain have not had such positive effects. Mining equipment spares are difficult and expensive to procure as a result of the global lockdown.

The effects of the lockdown include limited to no access to mercury in some districts of Zimbabwe. Where it is available, mercury may cost up to USD 10 per teaspoon, resulting in increased costs of operations. Reduced use of Mercury has however benefited the country in terms of adherence to the Minamata Convention, whose provisions aim to restrict the trade in mercury to curb rising global emissions.

Linked to the above, Pact Zimbabwe has made efforts to pilot a prototype mercury-free plant to service the ASGM community, in partnership with the government of Zimbabwe led by the Ministry of Mines and Mining Development in collaboration with EMA, United Nations Development Program (UNDP) and the Zimbabwe Environmental  Lawyers Association (ZELA). Unfortunately, work on this has been stalled by the COVID-19 pandemic.

An opportunity for the sector also exists in Fidelity Printers and Refiners (FPR) being able to re-examine its ASM gold buying model and forex retention policy, given reduced parallel market activity. FPR, however, needs to ensure its agents are operating per the WHO guidelines and that they have the resources to procure all the gold being mined leading to an improved fiscus.

Food insecurity is a growing concern among artisanal and small-scale miners as well as communities sustained by mining, with most still living from hand to mouth. Unfortunately, many of the miners do not qualify for the government-led food assistance programs. When viewed through the lens of Occupational Health and Safety (OHS), the confined and close working conditions inherent in mining increase the risk of infection among artisanal and small-scale miners and their surrounding communities. Most ASM sites are characterized by poorly ventilated, labour-intensive operations with a significant workforce suffering unknowingly and knowingly from respiratory diseases like tuberculosis and silicosis. The latter further compromising their immune system.

Some informal elements within the sector are highly nomadic, posing dangers as well to the broader ASM community. Traders, appearing higher in the gold supply chain are not excluded, exacerbating the risk thereof as they move from mine to mine to buy gold in exchange for hard cash. What makes the ASM crisis further unique is that most of the workforce have no health insurance coverage and the sector is in dire need of support to pull through successfully amidst the COVID crisis.

Given the discussion above, Pact Zimbabwe makes the following proposals for basic precautionary measures  to be adopted by the general ASM populace:

Please note that this list is neither exhaustive nor does it replace any medical advice. It merely serves as a tool to contextualise how best AMSs can mine safely in the face of the COVID-19 health threat. It can serve as foundation to the initiative to develop Standard Operation Procedures in the face of a COVID-19 lockdown.  All other non-COVID related safety measures still need to be observed to avoid production downtime and fatalities which will further exacerbate the crisis.

1. If not already in place, set up a Safety Health and Environment (SHE) Committee comprising of a few employee representatives to identify and close any gaps relating to all health and safety problems encountered at the work-site. This can be achieved through constant monitoring for adherence to laid out SHE procedures. In addition, a COVID-19 committee can be set up to maximize effective COVID-19 risk management by focusing on any COVID-19 matters of concern. Both committees’ roles are to facilitate information sharing and communication with the SHE Committee.
2. Institute mandatory temperature screenings of the workforce to detect infections early. Consider procuring at least one thermo-scanner and seek advice from your local medical facility on how to interpret the readings.
3. Always keep a record of personnel on the various shifts on-site in case any contact tracing needs to be carried out. This is also an important step towards formalizing the mining operations.
4. Create a supportive environment that encourages the workforce to disclose if any of their contacts are being treated for COVID-19 or if they suspect anyone under their care to be showing initial signs of suffering from the disease.
5. Before any work shift begins, everyone present should participate in daily Safety, Health, and Environment talks that prioritize the issue of the COVID-19 pandemic. Ensure everyone fully comprehends everything to do with the disease including its management.
6. Mine personnel are encouraged to wear recommended reusable/washable face masks to avoid unknowingly inhaling the virus or unknowingly spreading the virus during the incubation period as a carrier. If store-bought masks are hard to get, multi-layered face cloths are recommended by the Centers for Disease Control and Prevention (CDC). It is important to know that not all mask types are recommended. These masks should always be tightly, or else appropriately worn and great care must be taken not to accidentally touch your mouth, eyes, and nose when removing as the virus might be trapped on exterior surfaces. Immediately wash hands with soap and running water after removing
7. Wherever possible miners should practice social distancing at the workplace and minimize sharing and exchanging of equipment without good hygiene practices. This might entail downsizing operations to minimize crowding at any given time. Or if previously one shift was operational, miners can split the workforce into manageable shifts throughout the 24-hour production cycle. This promotes social distancing and reduces the transmission rate.
8. Prepare an emergency response plan. This entails having a designated isolation area and a readily accessible emergency medical contacts of ambulance services or designating a vehicle to be used to ferry the victim to seek medical attention and immediately fumigate all premises that might have been toured by the victim within the past 24-48hours before temporarily restricting entry to those.
9. Disinfect yourself after spending considerable time in a crowded place by removing and laundering all your outdoor Personal Protective wear and immediately taking a bath with soap and water.
10. Have in strategic places, running water and soap (whether laundry, bath, or detergent soap). In instances where soap and running water are not easily accessible have in place a good supply of an alcohol-based hand sanitizer, however, this should never replace hand-washing with soap and running water.
11. Appoint a team or individual who disinfects surfaces (including chairs, light switches, tables, door handles, counter tops, doors, toilets, sinks, taps, etc) and equipment throughout the shift. Disinfecting methods should depend on the equipment or surface under consideration but generally soap, household disinfectant, bleach, or ultraviolet lights should serve the function.
12. Social distancing regulations must always be maintained.
13. As far as possible discourage visitors at the mine and this can be conveyed using simple visible posters and signage. If it is not possible to eliminate visitors, make all necessary measures to screen them for high temperatures, and sanitize them at point of entry. Remind them with the aid of signs to observe high levels of hygiene throughout their visit. Remember to document all visitors in a logbook for security purposes and contact tracing if necessary.

Pact Zimbabwe stands in solidarity with the nation and the artisanal and small-scale mining community. Pact has maintained an open dialogue with its shareholders and provided technical advice on how to keep safe during the COVID-19 crisis. The ZAAMP project periodically provides situation updates on how the pandemic is impacting the ASM sector. Pact implores the miners to contribute in whatever manner they can to their communities through resource mobilization and information sharing regarding COVID-19. Pact continuously calls upon the Large-Scale Mining (LSM) community to support the ASM community technically and financially in fighting this disease. Likewise, the government through its various departments must support and not present obstacles in the fight. This should include among other things the development of Standard Operating Procedures to be adopted by ASMs. All miners must have and act upon the most up to date information of the COVID-19 pandemic which can be accessed on the widely advertised 2019 toll-free number in addition to websites such as WHO and CDC.

For those who are not familiar with the Mining industry if one hears about Small-scale miners or Makorokoza as they are mostly referred to, usually the first thing that comes to mind is violence, revelling, and alcohol abuse. Some are known to go as far as buying alcoholic beverages for everyone in drinking spots and bars where they will be drinking.

Little is spoken about the actual small-scale mine owner. These are the ‘Corporate’ or ‘CEO’s’ of mine claims.

Mining Zimbabwe met with small-scale gold miners, Mr. Fletcher Mbizo and Ms. Sheila Mabasa at Moflegosh mine in Norton. Their mine is a unique example of small-scale miners making a difference in the community they are operating from.

They began operations at his mine in 2010 after getting a special grant. As it is with most beginners they did not have enough to properly finance operations so they resorted to seeking sponsors and throughout the years worked with a number with most withdrawing when the going got tough.

“We got a special grant from the council and after that, we started looking for sponsors. Since then we have worked with various sponsors some of whom sponsored us well but it is very difficult to find someone with adequate funds to sponsor. Those who came usually with-drew when problems arose” Fletcher Mbizo said.

Years later Moflegosh mine has drastically improved with mines in the vicinity and beyond also benefiting from it. The mine now has an operating horticulture site that supplies Norton with fresh produce. The mine also operates Custom Milling and has cyanidation tanks that are used to process minerals by many mines in the Norton area and beyond.

Norton like Harare has challenges with a consistent supply of clean water. Moflegosh mine has made life easy for inhabitants of the Norton Police camp by supplying water for general use. Mining Zimbabwe witnessed Police officers busy weeding, watering their gardens using the water from the mine.

Another beneficiary is Mr. John Mushonga who grows various horticulture produce for sale. Mushonga was offered the land that was not in use at the mine by the pair which has created further jobs as Mushonga employs three people.

Fletcher said, ”In regards to agriculture we have done the best we can. We have allowed people to farm on the piece of land we are currently not using and we provide a constant supply of water for irrigation and other uses”.

Mushonga grows and supplies Norton with tomatoes and vegetables using drip irrigation from water supplied by Mbizo. The site is well known for fresh produce and maize contributing to the needs of Norton residents. Mushonga is now resident on-site with his family.

“I am into Horticulture and am thankful for the land I have been given for producing agricultural products. I produce tomatoes, vegetables, and lots more irrigating with water from the mine. The mine has helped me, my family and workers and we have been constantly supplying Norton with fresh produce for years”.

Fetcher and Sheila hope to expand Moflegosh mine which they say will create more jobs for the community. They said to have an improved output the government must provide equipment and much-needed expertise.

Article first appeared in the Mining Newsweek (Mining Zimbabwe Weekly) in the 18 May 2020 Edition

Zimbabwe’s platinum production in the first quarter of 2020 rose five percent to 118 00 ounces from 113 000 ounces recorded in the same period last year, latest data shows.

The increase is largely due to improved output from the country’s major miners. Zimbabwe, which is home to the world’s second-biggest known deposits of platinum after South Africa, has three platinum-producing mines – Zimplats, Mimosa and Unki.

But, despite the rise in output in the first quarter, the country’s supply of the mineral to the global market is forecast to decline by four percent to 438 koz this year.

This is due to the effects of the Covid-19 lockdown, both in Zimbabwe and South Africa where much of the country’s output is refined.

“Mining operations have received a dispensation to continue limited production over the lockdown period, but with country’s output dependant on South African refineries, logistical challenges remain,” a global industry representative body said.

Zimbabwe’s platinum output growth has been averaging 2,3 percent (387 000 ounces) in the last seven years, with only 2016 recording the highest output at 490 000. – New Ziana.

Two employees at South Africa’s Harmony Gold Mining Company’s Kalgold gold mine, in the North West of that country, have tested positive for Covid-19.

The individuals, both of whom were asymptomatic, were identified as positive through the company’s testing process, which is conducted in collaboration with the Department of Health.

Both individuals have been isolated and are receiving medical care and the process of tracing possible contacts is underway, with all of those identified either self-quarantining or quarantining at a company facility for 14 days.

In a statement on May 20, Harmony confirmed that its routine screening and testing at the mine would continue in line with its Covid-19 Standard Operating Procedure.

The majority of Kalgold’s 600 employees have been tested for the virus so far.

Mining at Kalgold has largely been suspended, but the plant continues to operate and employees who have tested negative for Covid-19 have returned to work.

Kalgold’s production contributes 3% of Harmony’s overall production.

In compliance with regulation and/or agreement, the departments of Health and Minerals Resources and Energy, the National Institute for Communicable Diseases and Minerals Council South Africa have been informed.

Mining Weekly