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Mliswa, Nduna dropped from Parly committees

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PARLIAMENT has removed Norton and Chegutu West legislators, Mr Temba Mliswa and Cde Dexter Nduna, from their positions as portfolio committee chairpersons.

Mr Mliswa was the chairperson of the Mines and Mining Development Committee while Cde Nduna was the chairman of the  committee on Transport and Infrastructural Development.

The two clashed last month during a meeting of the Portfolio Committee of Mines and Mining Development leading to a war of words in the presence of other legislators and officials.

However, they have since apologised to the Speaker for their disorderly conduct. 

The Speaker of Parliament, Advocate Jacob Mudenda, on Thursday announced the re-appointment of members of the dissolved Mines committee leaving out Mr Mliswa.

“I would like to inform the House that all members of the dissolved Mines and Mining Development Committee have been reappointed to the same Committee except Honourable Temba Mliswa and Honourable Nduna,” he said.

Advocate Mudenda said Mr Mliswa had been replaced as chairperson by Zanu-PF MP for Shurugwi South Edmond Mkaratigwa.

 The Speaker also removed Cde Nduna as chairperson of the committee on Transport and Infrastructural Development, replacing him with the Zanu-PF MP for Shamva North, Cde Oscar Gorerino. 

“I also wish to inform the House that Honourable Gorerino has been appointed Chairperson of the Portfolio Committee on Transport and Infrastructural Development. The Committee membership remains unchanged except that Hon. D. Nduna is no longer a member of that Portfolio Committee,” said Adv Mudenda.

Last month, Parliament’s Committee on Standing Rules and Orders dissolved the Parliamentary Portfolio Committee on Mines and Mining Development and set up a Privileges Committee to investigate allegations that Mr Mliswa and three others demanded a $400 000 bribe from a local businessman intending to mine in Hwange.

The SROC resolved to reconstitute the portfolio committee after it felt that the relationship among members was so bad that they could not conduct meaningful business.

It also noted that members of the Mr Mliswa-led committee were likely to trade accusations that would lead to acrimonious exchanges each time they met.

On Wednesday, Adv Mudenda announced that the tenure of the Privileges Committee to investigate allegations of soliciting for a bribe by some Members of the Portfolio Committee on Mines and Mining Development had been extended to May 9_The Chronicle

Shortage of fuel worsens

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MOTORISTS here have for the past week endured stock outs of fuel supplies, indicating a worsening
fuel situation in the petroleum industry.

So bad has been the situation that even the pump stations that sell in foreign currency have virtually
gone dry.
The few that had the product yesterday had long, winding queues.

Some motorists are resorting to buying on the black market where prices are much higher.
It was, however, a double whammy for motorists as police cracked down on the black market,
confiscating hordes of fuel from dealers.

This left motorists stranded as they literally had nowhere else to access fuel.
A survey by the Daily News yesterday revealed that most Total Zimbabwe service stations in the city
received fuel after some days of dry pumps.
A manager at one of the Total service stations who declined to be named said: “We finally received
our fuel today after some days without supplies.

“I am confident most of our service stations have fuel because we have two trucks which came from
South Africa and they were giving each service station a total of 6 000 litres.”
Abnormally long queues could be seen in the Central Business District’s relatively few service stations
that had fuel.

Surprisingly, similar queues could be seen at the foreign currency fuel-selling service station,
signifying how dire the situation has become.

Some service stations in the city yesterday confirmed to have gone for more than a week without a
drop.
On the other hand, commuters have been struggling to get transport back home as commuter
omnibus operators failed to meet demand occasioned by the intense shortages.

Many simply parked their vehicles.
The fuel shortages have crippled many business operators in the city.

Despite increasing the price of fuel by almost 150 percent in January, there has been no end in sight
to the crisis.

The fuel crisis comes at a time, Cyclone Idai has left a trail of destruction in Zimbabwe, Mozambique
and Malawi, damaging the Companhiado De Pipeline Mozambique-Zimbabwe (CPMZ) control room at
Beira in Mozambique, affecting the pumping of fuel and natural gas to Feruka Oil Refinery in Mutare.

This left many speculating that the shortage might be Cyclone-related.
However, Energy minister Joram Gumbo this week indicated the country had enough fuel stocks.

Daily News

Caledonia production down, despite increase in profits

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CALEDONIA Mining Corporation (Caledonia) gold production was down three percent to 54,511
ounces during the full year ended December 31, 2018 compared to 56 133 ounces recorded in prior
year due to lower grade.

Steve Curtis, Caledonia chief executive officer said the firm — which owns 49 percent of Zimbabwean
gold mining unit, Blanket Mine — delivered a robust performance, despite the well-known challenges
of operating in Zimbabwe.

“Production for the year was lower than in 2017 primarily due to an unplanned lower recovered grade
as a result of added dilution due to the adoption of long-hole stoping in certain areas for safety
reasons,” he said in a production update.

“Provided the drilling is accurate and the shape of the reef does not vary too much, long-hole stoping
is an efficient mining method; however, drilling accuracy and choice of the most suitable areas to use
this methodology is essential to reduce the dilution,” Curtis said.

He added that management is addressing this by conducting extensive re-training of drillers, and the
situation appears to be improving.

The Toronto Stock Exchange-listed mining house recorded a $21,587 million gross profit for the year
ended December 31, 2018, which was lower due to lower production and higher production cost.
During the three months ended December 31, 2018, gross profit was $5,374 million compared to
$8,411 million recorded in prior comparable period, affected by lower realised price of gold.
Curtis said production is now expected to be approximately 75,000 ounces in 2021 increasing to
approximately 80,000 ounces in 2022.

“During the year we continued to implement the investment plan at Blanket Mine with the objective of
increasing production to 80,000 ounces per annum.

“Certain operational and economic factors have resulted in less development being achieved than
planned, which will result in a slower production ramp-up than originally expected,” Curtis said.
He said the Central Shaft has reached a depth of 1,150 metres — only 54 metres from the planned
shaft bottom.

He said the firm expects the shaft sinking to be completed by the end of June 2019, after which the
shaft will be equipped prior to commissioning which is scheduled for mid-2020.
Curtis said exploration continues at Blanket with encouraging results.
“The monetary environment in Zimbabwe became more challenging following changes in policy
although the general direction of policy development appears to be positive. Policy changes disrupted
the commercial banking system in October 2018 and February 2019 which adversely affected
procurement,” he said.

Delays in procuring critical items meant that capital equipment suffered from a lack of maintenance
which increased the frequency of breakdowns, Curtis said.
“We are optimistic that the introduction of a market exchange rate in February 2019 will, in time, allow
a return to normal operating conditions,” he said.

He said costs during the year were higher than expected due to a combination of increased prices for
cyanide and steel, the increased cost of a larger fleet of trackless equipment which operates in the
declines and the adverse effect of lower than expected grades.
Net profit attributable to shareholders for the year increased from $9,4 million to $10,8 million.
Cash generated by operations before working capital was $25,8 million for the year, compared to
$26,8 million in previous comparable period.

Curtis said working capital increased by $4,7 million in the year compared to a reduction of $2,1
million in 2017 due to an increase in amounts due in respect of gold sales and VAT refunds from the
government of Zimbabwe a reduction in trade and other payables._Daily News

Small scale miners cry over fuel importation application fees

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Small-scale miners say fuel import fees charged by the Zimbabwe Energy Regulatory Authority (Zera) are excessively high and prohibitive.

Government recently liberalised the importation of fuel by big companies and organisations, saying they would use own free funds for fuel imports in a bid to ease shortages in the country. There have, however, been complaints that import licences to that effect were not affordable.

“Government has allowed miners to import fuel, but the application fees to register with Zera are too high, which is RTGS$23 000. Please, note also that fuel shortages will result in less gold deliveries to Fidelity Printers and Refiners (FPR) because of operation stoppages,” Zimbabwe Miners’ Federation (ZMF) president Henrietta Rushwaya said during a miner’s forum held in Bulawayo on Wednesday.

The ZMF president said due to fuel shortages and other challenges, gold output was expected to tumble this year.

“As ZMF, we also feel that based on our 2018 gold output statistics, 2019 might not be a lucrative year for Fidelity, nor for ZMF, nor for the nation at large, as it was in 2018. This is mostly caused by an erratic fuel supply and this has affected mining operations, especially for a sector which uses equipment that relies mostly on diesel,” she said.

Rushwaya said a fuel facility for the small-scale miners was on the cards after ZMF had engaged MetBank.

She added that the central bank’s position that small-scale miners’ retention rate be reduced to 55%, down from the previous 70%, would push them out of business.

“Miners relayed their displeasure in the reduction as they felt that there was no consultation whatsoever to justify the reduction. This has greatly affected gold deliveries at FPR,” she said.

Following the pronouncement, Rushwaya said gold output to FPR in 2019 production had drastically dropped from 500kg to 20kg a week, adding this would have a negative impact on the country’s Gross Domestic Product_NewsDay

Sheppard appointed new CEO Konkola copper Mines

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LUSAKA – Vedanta Resources has appointed Christopher Sheppard as the new chief executive officer for its Zambian unit Konkola Copper Mines Plc (KCM), the local firm said on Friday.

Sheppard has 35 years of mining experience and takes over from acting CEO Venkatesan Giridhar, who will now revert to his role as chief financial officer, KCM said in a statement.

Sheppard has previously held leadership roles with Anglo American, Anglo American Platinum, Lonmin and Murray & Roberts Cementation.

Prior to joining Vedanta, he was the chief operating officer at AngloGold Ashanti Limited in South Africa._Reuters

Masvingo quarry firm growing in leaps, bounds

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Located 7km from Masvingo City along the Bulawayo Highway, is one of the fastest growing mining firms in the province that is into quarry extraction and taking advantage of the construction boom in the country’s oldest town.

Masvingo Brick and Tile PVT Ltd, a mining company which started operations in 1947 has stood the test of time, surviving the harshest economic environment in 2008 that was characterised by high inflation which rose to unimaginative levels.

Instead of falling, the company led by Cliff Mumbengegwi, grew from leaps and bounds, even in the face of adversity.

After the demise of the beef giant, Cold Storage Company (CSC), popular bus company, Tanda Taruva, most small companies followed suit and closed shop as their existence squarely depended on the two companies’ downstream spin-offs.

War experience inspired the businessman

However, Mumbengegwi soldiered on, with his experience in the war of liberation, the army and real estate business helping him to persevere and survive the vagaries of economic meltdown.

Through commitment to deliver, the company has been a leading supplier of quality quarry stones and bricks in the province and beyond since 1947, he said.

He said he took over the quarry mining company in 2005, which initially belonged to a white family sometime after retiring from Property and Real Estate business. He had retired from the army as a Colonel in 1990. Home to 100 employees including office staff, Masvingo  Brick and Tile is a US$3 million business venture with the recently installed state of the art quarry crushing plant worth US$500 000.

The company’s present capacity is 25 percent, which is enough to meet demand of quarry and bricks in the province, but plans are underway to increase it to 75 percent once demand increases.

Hopes to leverage on Harare Beitbridge dualisation

With the much awaited Beitbridge- Harare Highway dualisation already in motion Mumbengegwi said the company will soon increase its capacity given that the demand for quarry stones in the province will surge.

“Our capacity utilisation is demand driven and once the dualisation project reaches us, as a province, obviously we will pull our socks as a company. We will raise the bar in terms of our capacity,” said Mumbengegwi.

“The company supplies stones and concrete products with rated capacity of 200 tonnes per hour and the plant can produce different grades of aggregates simultaneously. The aggregates range from 5mm to 40mm ballast,” he said.

He said the company, which remains a cog in the devolution matrix that the new dispensation has enunciated, has the capacity to provide adequate quarry stones for the Beitbridge-Harare Highway dualisation programme as well as other road construction projects.

“We are ready to supply quarry stones for the Beitbridge-Harare dualisation project once it comes to our province. The company is into heavy industry as the plant we use has 500KV while others only use between 250 and 380 volts.”

The company had also recently invested in a US$150 000 worth of brick-making machine with a production capacity of 70 000 bricks per day.

Company vision

Looking back, Mumbengegwi admitted the terrain to prosperity was rugged as he met insurmountable challenges that saw others calling it quits. He said apart from not being spared by high inflationary environment that became the order of the day in Zimbabwe, the banking sector has not been very supportive for indigenous businesses and he was no exceptional.

“Our industry is heavy and that means it’s capital intensive. Local banks give loans basing on your returns but that is problematic because they do not consider our potential to grow. We would have loved to borrow more and not basing our creditworthiness on the size of production. We need money for expansion but our scope is limited because we cannot access the capital that we need, say for recapitalisation. However, CBZ is helping us and I cannot complain,” he said.

He said the company had no room for substandard job, hence hiring qualified personnel to operate the plant which is predominantly automated. He said there are journeymen who operated the machine and that comprised fitter and turners ,electrical engineers and boiler makers, all qualified with national diplomas from polytechnics.

Coming to the devolution, Mumbengegwi said as a company they were prepared to add value to development, contributing immensely to the province’s Gross Domestic Product.

He was, however, quick to denounce corruption saying, the vice should be nipped in the bud if devolution was to succeed. He said people ought to be disciplined first, shunning corruption at all levels, so that the provincial resources are put to good use with those caught in corrupt activities facing the music.

“I think our main hindrance is corruption and if we nip it in the bud, we can succeed, as a province and as a country. Those who are caught involved in shoddy deals or corrupt activities must be arrested, convicted and sent to jail. ‘We should not have scared cows on corruptions, as this will not take us anywhere as a province especially now when the economy is being devolved,” he said._Business Weekly

RBZ avails $21,7 million to women and youth miners

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The Reserve Bank of Zimbabwe (RBZ) has availed RTGS$21,7 million to assist women and youths in small-scale mining to boost their operations.

Speaking recently in Gwanda during a workshop for small-scale miners in Matabeleland South Province, RBZ deputy director at the Bulawayo regional office Kasanda Sibanda urged small-scale miners to fully utilise the funding facility to expand their operations.

“The bank has extended financial inclusion facilities for women and the youth through local banks but utilisation has been very low. RTGS$15 million was allocated for women and RTGS$3,3 million has been disbursed so far while RTGS$10 million was allocated for youths and RTGS$0,3 million has been disbursed,” he said.

“The bank is in the process of reviewing the facilities with the view to increase their utilisation. Those that have accessed these facilities need to pay up and it’s important for organisations such as Minex to mobilise, educate and encourage miners to utilise and repay facilities extended to them.”

Sibanda said the apex bank was committed to ensuring that full potential of the small-scale miners was realised.

He said the bank was aware of challenges faced by small-scale miners, which included high cost of capital, production, fluctuating commodities and high cost of consumables used in the production of minerals.

Sibanda urged local banking institutions and suppliers of critical
raw materials and equipment to
come up with facilities to support small-scale miners as mining played a crucial role in the development of the economy.

He said there was a need to ensure that all mining claims in the country were fully utilised to increase chrome and gold production

“The mining sector is viewed as a locomotive of Zimbabwe’s development agenda. Under the new dispensation mining is taking a pivotal role in the revival of the economy.

“The current development process is underpinned by the economy’s capacity to generate sufficient foreign exchange to meet its requirements.

“In this regard mineral exports play a pivotal role in the generation of the much needed foreign exchange,” he said.

The Reserve Bank of Zimbabwe last year availed US$150 million through Fidelity Printers and Refineries to fund both working capital and capital requirements under the Gold Development Initiative Fund.

Zimbabwe Miners Federation (ZMF) senior official, Nyenje Makumba, called on Government to be lenient with miners before forfeiting the claims.

“A number of small-scale miners have a challenge of losing their claims that are being forfeited by the Ministry of Mines and Mining Development over non payment of levies. This forces some miners to end up engaging in illegal mining activities. Government will be urging them to formalise their operations while forfeiting claims on the other hand,” he said.

“Some of these miners that lose their mines are disadvantaged members of the community such as people living with disabilities and they will be hoping to be empowered through mining.”

Makumba said there was need for Government to assist suppliers of mining equipment and other consumables in sourcing these products. He said suppliers were charging in forex, which made it difficult for small scale miners to access products.

Environmental Management Agency (EMA) provincial officer, Sithembokuhle Moyo, urged miners to adhere to environmental and safety regulations in their operations. Mat South provincial mining director, Tichaona Makuza, explained steps involved in regularising claims, issuance and monitoring and the implications of the Mines and Minerals Act on artisanal miners._Business Weekly

Zisco still paying over 1 700 workers

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THE defunct steel manufacturing firm, Zisco, is still paying over 1 700 former workers two months’ salary as per the July 2018 Labour Court ruling as the company seeks to offset employees’ outstanding salary arrears.

Public Service, Labour and Social Welfare Deputy Minister, Lovemore Matuke, said this in Parliament while responding to questions on Wednesday. 

“The court made a judgment against the employer and it specified the terms and conditions of payment for the parties. In the judgment, the court highlighted that the employees were to be paid in each single month their net salary of two months in addition to their owed current salary per individual,” he said.

“Since the judgment was issued, Zisco has been complying with the terms and conditions stipulated by the court.” 

The Deputy Minister could not clarify the source of the money to pay workers since the firm is not operational.

The matter between Zisco and its former employees was resolved by the Labour Court in July last year. Deputy Minister Matuke said since the court handed down the judgment there has been no complaint of non-payment of owed monies registered either at the National Employment Council for the engineering sector or his Ministry.

“Therefore, we presume the employer is complying with the order. If there is any breach, the employees can enforce the judgment,” he said.

The former workers, who have since been retrenched, were, however, yet to receive their retrenchment packages.

“Whether they are going to be paid (retrenchment packages) or not, it is a court decision,” said Matuke. 

Formerly the largest integrated steel producer north of the Limpopo, Zisco ceased operations at the height of economic challenges in 2008 resulting in more than 5 000 people losing                                                                                         jobs.

Hopes for the revival of operations at the steel giant were revived in 2011 when an Indian steel conglomerate, Essar Global, signed a $750 million deal with Government to resuscitate operations at Zisco.

The pact collapsed in 2015 due to a number of reasons, among them political bickering in the then inclusive Government. However, in 2017, Zimbabwe secured a $1 billion investment from R and F, a Chinese firm to resuscitate operations at the defunct Redcliff-based steel giant.

Industry and Commerce Minister Nqobizitha Ndlovu is on record as saying there has been significant progress made towards the resuscitation of Zisco so far._The Chronicle

Gold slips again

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Gold extended losses on Friday, moving further away from a three-week peak hit in the previous session, as appetite for riskier assets improved on upbeat U.S. economic data, while the metal was still on path for a third straight weekly gain.

Spot gold was down 0.1 percent at $1,308.26 per ounce as of 0119 GMT, after touching its highest since Feb. 28 at $1,320.22 in the previous session.

The metal has risen 0.5 percent so far this week and is on track for a third consecutive gain on a weekly basis.

U.S. gold futures were flat at $1,307.50 an ounce.

Asian shares advanced on Friday after upbeat data and optimism in the tech sector lifted Wall Street stocks, helping calm some of the jitters sparked by the U.S. Federal Reserve’s cautious outlook on the world’s biggest economy.

U.S. data showed jobless benefit applications fell more than expected while mid-Atlantic factory activity rebounded.

The dollar largely held onto the previous session’s gains in early Asian trade on Friday, while sterling edged up on news that Britain could leave the European Union without a Brexit deal at a slightly later date.

Britain could leave the European Union without a Brexit deal on April 12 if lawmakers fail next week to back Prime Minister Theresa May’s agreement with Brussels, EU leaders said after a crisis summit in Brussels on Thursday.

Prime Minister Theresa May on Friday welcomed the European Union’s decision to delay Brexit, saying that lawmakers in the British parliament now had clear choices about what to do next.

The Bank of England kept interest rates steady on Thursday and said most businesses felt as ready as they could be for a no-deal Brexit that would likely hammer economic growth and jobs.

A U.S. trade delegation headed by Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will visit China on March 28-29 for the next round of negotiations, China’s commerce ministry said on Thursday.

The United States imposed sanctions on Thursday on two Chinese shipping companies it says helped North Korea evade U.S. and international sanctions over its nuclear weapons program, the first such steps since U.S. President Donald Trump and North Korean leader Kim Jong Un’s summit collapsed last month.

Paulson & Co Inc, which holds 14.2 million Newmont Mining Corp shares, will not support Newmont’s planned $10 billion takeover of rival Goldcorp Inc as the premium offered is unjustified, the investor said in a letter on Thursday._Reuters

Prospects reports loss of $4,135 million

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PROSPECT Resources (Prospect) says it reported a loss after tax of $4,135 million during the half
year ended December 31, 2018 compared to a $2,640 million recorded in previous period.

The Australia Stock Exchange-listed firm said explorations costs at its flagship Arcadia Lithium Project
weighed further on the operating performance.

The loss after adjustment for exploration and evaluation expenditure, impairments, project generation
and share-based payments has increased from the prior year period as the group progresses the
Arcadia Project and prepares for the next stage, being its development,” Prospect said.

Exploration and development stages of mining operations require heavy capital outflows before
positive cash flows are realised.
Revenue from continuing operations increased to $3,534 million during the review period compared to
$1,590 million achieved in previous comparable period. The group’s assets increased to $30,364
million during the half year ended December 31, 2018 compared to $30,250 million recorded in prior
comparable period.

Prospect said net cash outflows from operating and investing activities amounted to $8,915 million
during the review period compared to $5,078 million achieved in previous comparable period.

“As at reporting date, the group had cash and cash equivalents of $8,067 million. These conditions
indicate a material uncertainty that may cast significant doubt about the group’s and the company’s
ability to continue as going concerns,” the miner said.

Prospect also noted that assets and liabilities affected by the Monetary Policy Statement include cash
and cash equivalent, trade and other receivables and trade and other payables.
The firm said however, financial impact of this change has not been recognised in the groups
accounts at December 31, 2018.

Recently, Prospect said it has acquired new technological equipment, high pressure grinding rolls
(HPGR), which will reduce capital expenditure by $2,3 million at Arcadia.

The lithium miner has also been awarded special economic zone (Sez) status at Arcadia, which will
grant the project generous tax breaks and other concessions. The junior miner, which applied for the
status last year in November, said
the incentives and benefits to be received from the Sez status, reinforces the financial outcomes of the
project outlined in the definitive feasibility study.

Arcadia is Africa’s second-largest undeveloped lithium project. It is estimated to contain 610 500
tonnes of lithium oxide and 11,3 million pounds of tantalite pentoxide. It has an ore reserve of 26,9
million tonnes and has received its mining licence and environmental impact approval.

This comes as lithium has gained global prominence as the most valuable mineral for the future given
its use in a number of areas including medicines and ceramics, but more importantly manufacture of
electric vehicle batteries.

Government granted Prospect a mining lease for 57 claims in the country. The junior miner has
committed millions in Zimbabwe’s lithium mining sector in the past year and is currently developing the
assets.

Last year, the miner said it will start exploration of rare earth elements (REEs) at its Chishanya
carbonatite project in Dorowa, in eastern Zimbabwe.

Prospect, which has impaired costs incurred on the Prestwood and Sally Mines, also operates
Penhalonga Gold Mine, Sally Gold Mine and Prestwood Gold Mine in Gwanda._Daily News