Mining ZimbabweLatest Mining News, Policy and Industry Updates

HARARE – Expansion work at Hwange thermal power station now stands at 25 percent, 14 months into the project which will add 600 megawatts into the national grid by 2022.

The $1.5 billion project, being carried out by Chinese firm Sino Hydro,  entails the addition of two power generating units, unit 7 and 8 to the existing 6 units that were commissioned between 1983 and 1987.

Along with many others at various stages of implementation, the project is part of Zimbabwe’s efforts to find sustainable solutions to power shortages that are retarding industrial growth and bedeviling the economy at large.

In an update, the Zimbabwe Power Company (ZPC) said most excavation work had been completed including for the cooling tower, the boiler house, and the chimney.

“We have completed all the excavations up to foundation level for  Hwange 7 and 8,” the ZPC said.

“As of this month of November, we have done fourteen months into our schedule. Our current progress we are around 25 percent and we are on  target in terms of what we had planned to achieve up to month 14, we are  currently on schedule.”

The whole project will take up to 42 months to complete, but unit 7 is expected to start firing by April 2021 while unit 8 would follow later on.

Hwange Power Station is Zimbabwe’s largest coal-fired power generator with production capacity of 920 MW.

But because of old age, the plant’s current dependable capacity is around 600 megawatts.

In addition to the Kariba South Hydropower Extension Project, which was completed in March 2018, the Hwange expansion project is expected to substantially add to the national power grid and lift the nation out of the current power woes.

Zimbabweans are having to endure long hours of load shedding every day due to depressed generation capacity and limited ability to import power from regional neighbours. – New Ziana

A BULAWAYO businessman who operates a farm and mine in Inyathi in Matabeleland North province allegedly shot two suspected illegal gold panners who were rushed to hospital after sustaining life threatening injuries.

This emerged when Nhlanhla Makuyana (56) approached the High Court seeking bail pending trial.

Bulawayo High Court judge Justice Martin Makonese released Makuyana on $300 bail and ordered him to reside at his given address and not interfere with State witnesses until the matter is finalised. 

He also ordered the applicant to report twice a week on Mondays and Fridays at Bulawayo Central Police Station as part of the bail conditions.

Makuyana, a retired civil servant, is facing attempted murder charges after allegedly shooting and injuring two suspected illegal gold panners who had strayed into his mine in Inyathi.

In his bail application through his lawyers, Abigail Masawi Law Chambers citing the State as a respondent, Makuyana said there were no compelling reasons by the State for refusal of bail. 

He said his farm has been invaded by illegal gold panners and efforts to get assistance from the police proved fruitless.

“On the day in question, mindful of a previous incident on the farm, I had gone to check on the intruders armed with a licensed 303 rifle. I only fired warning shots when the intruders became confrontational. I submit that the State has no compelling reasons to curtail my liberty,” he said.

Makuyana said as a family man with various properties including a house in Harare, a flat in Bulawayo, a plot, a mine, and several cars, he had no reason to abscond.

He also disputed the assertion by investigating officers that if released on bail, he was likely to interfere with State witnesses.

According to court papers, on October 29 this year at around 8.40AM, Makuyana was at his farm known as Twin Farm in Inyathi district when he spotted two suspected intruders walking along a fireguard at the boundary of his farm. 

He allegedly opened fire and shot them on their thighs. They sustained injuries and were taken to Inyathi District Hospital.

A report was made to the police leading to Makuyana’s arrest.

The Chronicle

ONE person died while another was severely injured in Inyathi, Bubi district, Matabeleland North when a gang of about 50 gold panners went on a rampage attacking other miners in the area.

In a Twitter post, the Zimbabwe Republic Police said the violence occurred on Sunday and Monday.

 “Fifty artisanal miners armed with machetes and axes went on a rampage, attacking other miners. Two male adults were severely assaulted and they sustained serious injuries. One resultantly died upon admission to Inyathi Hospital. The accused person, who informed other gold panners of his heinous deed, is still at large,” tweeted ZRP.

In a follow up interview yesterday, national police spokesperson Assistant Commissioner Paul Nyathi said they were investigating the alleged murder and reports of violence in gold rich areas across the country.

“We have made arrests, people have appeared in court, we are aware that there are areas where people have reported the so-called gold rush which is causing chaos and disputes. Members of the public should report incidents where the so-called gold rush is taking place so that appropriate and swift action can be taken before people engage in acts of violence,” said Ass Comm Nyathi.

He, however, said they have not yet received any cases of women being raped and livestock being slaughtered in Matabeleland North by gold panners.

Asst Comm Nyathi said they have partnered with the Ministry of Mines and Mining Development to fight against escalating illegal gold panning wars that have claimed lives in the Matabeleland North.

“We also appeal to mining companies that where some mines have been decommissioned, security measures have to be put in place to curtail chances of people coming in to try to get gold and, in the process, engaging in some of these disputes which can easily be resolved,” Asst Comm Nyathi said.

 Matabeleland North Provincial Affairs Minister Cde Richard Moyo blamed a group of artisanal miners called amaShurugwi/maShurugwi for terrorising residents in his province.

He said amaShurugwi were killing people, raping women and slaughtering residents’ livestock while conducting illegal mining activities.

“Our people are living in fear because of the violent behaviour of the illegal gold miners who come from other districts. The guys who are called amaShurugwi attack locals if they find them also panning for gold. They are always carrying axes and machetes. They are so daring that if the gold belt is stretching to people’s homesteads, these criminals violently force them out of their homes so that they can extract the minerals,” said Cde Moyo.

He called on the police to take action against the violent illegal miners who are causing untold suffering to members of the public.

“We are engaging police to ensure that they increase deployment of their officers in these areas affected by the violent gold panners,” said Cde Moyo.

Deputy Chiefs’ Council president, Chief Mtshane Khumalo, whose jurisdiction covers Bubi district said the illegal gold panners were not just making life a hell to communities but their livestock as well.

“A lot of animals are falling into pits left by these illegal gold miners who have no regard whatsoever for locals. They brutalise people while damaging the environment. They even dig shafts in grazing lands so some of the villagers are now losing their livestock and cannot even confront the violent gold panners,” said Chief Khumalo.

“When these gold panners come, they build their shacks that are not fit for human habitation. As it is, we have water shortages and the toilets are not enough to cater for everyone.  This exposes the community to diseases,” he said.

Recently, Midlands Minister of State for Provincial Affairs Larry Mavima said amaShurugwi had caused extensive damage in the province resulting in Government deploying the provincial Joint Operations Command

AUSTRALIA-Stock Exchange-listed miner, Invictus Energy, says it has completed a placement to raise US$1,5 million through rights issue as it seeks partners in the proposed oil project in Muzarabani.

In a quarterly update for the period ending September 30, 2019, the mining concern announced that it had received “strong” interest from exploration and production companies as well as private equity investors seeking to partner it in the proposed Muzarabani oil project.

In a statement on Monday, the oil and gas exploration and mining company said it has completed the placement to raise the funding it requires. 

“Invictus Energy Limited is pleased to confirm that further to the announcement on November 12, 2019 it has completed a placement to raise $1,5 million (before costs) by issuing 57 692 314 shares at an issue price of $0,026.

“Shares were issued to new and existing institutional and sophisticated investors under the company’s existing ASX (Australia Stock Exchange) Listing Rule 7.1 and 7.1A placement capacity,” it said. 

The placement saw a total of 18 592 125 shares being issued under the company’s Listing Rule 7.1 allowance while 39 100 189 shares were also issued in accordance with Listing Rule 7.1A.

“Together with the existing cash reserves, the new funds ensure Invictus is well funded through this growth phase as farm-out discussions develop, preparatory works for the on ground exploration phase commence, the company progresses its corporate social responsibility programme within the community resulting from the completed Environmental Impact Assessment field survey, and Government discussions on the petroleum regulatory framework.”

The Environmental Management Agency (EMA) has approved an Environment Impact Assessment prospectus for the proposed oil project.

Invictus Energy has confirmed the potential of oil in Muzarabani, Cabora Bassa Basin, 25 years after one of the United States of America’s major oil firms, Mobil, carried out similar studies in the area and left.

Under the first phase of exploration work, Invictus Energy has been able to mature the acreage and prospectivity in about 12 months since the acquisition of the project and complete the work programme obligations ahead of schedule.

The technical work for this phase of the project has been completed and the company is focused on completing the farm out process in progress.

The Muzarabani prospect is estimated to contain 8,2 Tcf plus 250 million barrels of conventional gas/ condensate (gross mean unrisked) across five horizons while the Msasa Prospect identified under the same permit (SG 4571) is estimated to contain 1,05 Tcf plus 44 million barrels of conventional gas/condensate (gross mean unrisked) across three horizons.

Unrisked reserves already developed by drilling and production have a very reasonable certainty of being produced while risked reserves are either probable or possible reserves depending upon the amount of uncertainty involved and basically represent poorly developed or undeveloped oil and gas fields_The Chronicle

The Zimbabwe Consolidated Diamond Company (ZCDC) intends to hold 11 international sales in 2020, the news agency cited the miner’s acting CEO, Rob De Pretto, as saying. Its tenders are currently in Harare, the country’s capital, but the location does not appeal to clients, the report continued.

“We are exploring opportunities and new markets to sell our products,” De Pretto said in an email to Rapaport News Monday. “The key international markets [where] most producers are selling their goods are Antwerp, Dubai, India and Singapore,” he added, without providing details on where or when the sales would take place.

Zimbabwe’s diamond industry is centered on the Marange fields in Chiadzwa. ZCDC expects to produce 3.1 million carats this year, 24% lower than the 4.1 million carats it previously predicted, according to Bloomberg. However, the miner is predicting an increase to 6.1 million carats in 2020, the report said_Diamond.net

Listed nickel producer, Bindura Nickel Company (BNC) has warned its shareholders over trading of company securities on the Zimbabwe Stock Exchange ahead of an imminent takeover of controlling stake by a new investor who has just concluded the deal.

London based, Asa Resources sold its 74.73 percent stake in BNC to a local rm with interests in the mining and production of ferrous metals, non-ferrous metals, and precious metals.

“Shareholders are referred to the Cautionary Statement published on 29 October 2019 advising that the ultimate holding company of BNC – Asa (currently under Administration) and a third party had entered into a Sale and Purchase Agreement (“SPA”) in relation to the 74.73% shareholding held in BNC by Asa and that the transaction involving the sale of these shares to the above-mentioned third party had been successfully concluded,” BNC 0board chair, Muchadeyi Masunda said in a statement Thursday morning.

The company said the transaction by the new controlling shareholder may have a material effect on the price of the Company’s securities.

“Accordingly, Shareholders are advised to continue exercising caution when dealing in the Company’s securities until a full announcement is made in due course,” further read the statement.

Earlier this week, BNC managing director, Batirai Manhando while engaging with stakeholders at BNC’S Trojan Mine was not privy to share much detail on the deal and the new shareholders, but identified them by the name, Sortic.

BNC is currently upgrading its Trojan mine with work on the smelter plant now 83 percent complete.

The company needs about US$ 7 -10 million to complete the plant.

Other projects include the finalization of Hunter’s Road Mine in Gweru, which has been in the predevelopment stage for more than a decade_263 Chat

Last week, the Joint Operations Command (JOC) raided artisanal and small scale miners who were operating in Manicaland in the gold-rich Odzi district in an endeavor to restore sanity after the death of four panners in bloody clashes at Odzi 1 and 2 mines.

In recent weeks, JOC has also raided illegal miners along Mutare River where alluvial gold mining is rampant.

Manicaland provincial mines director Omen Dube yesterday confirmed JOC’s intervention.

“We raided illegal miners in Odzi, especially after a recent incident where a miner was killed.
Police and the army invaded illegal miners in Odzi. I will be in office on Monday (today) so that we can conduct a meeting on how effective the operation was,” he said

“We want this operation to be continuous because with the economic hardships, we are very aware that they (illegal miners) are going to come back again.

“We have done similar operations along Mutare River, where alluvial mining is rampant. You know that it’s easy to trap gold along Mutare River, so the miners need easy money.”

Acting provincial police spokesperson Assistant Inspector Luxon Chananda confirmed the operation, but could not provide details.

Chananda said the programme was implemented by the district operations office.

“I can confirm that we carried out a joint operation with the Ministry of Mines, but I cannot provide details because this was a district operation, so I will also need to be apprised on the operation,” he said. “However, it is the mandate of the police to respond to any distress calls and ensure that there is peace in the country.”

Newsday