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World’s biggest platinum miner braces for tough wage talks

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World’s biggest platinum miner braces for tough wage talks

The world’s biggest platinum producer is preparing for tough wage negotiations as higher metal prices spur labor union demands.

Talks over a new three-year industry deal are looming as the so-called rand basket price for platinum and its sister metals has surged by 20 percent to 25 percent this year. While a four-month wage dispute at Sibanye Gold Ltd.’s gold mines could spill over into the platinum pay talks, workers will probably want to avoid a prolonged strike, said Chris Griffith, chief of Anglo American Platinum Ltd., the world’s No. 1 miner.

“It will be tough negotiations but I am not expecting a long disruption,” Griffith said in an interview in Johannesburg on Tuesday. “I don’t sense that kind of appetite in the platinum-group metals industry.”

Still, the largest union in the platinum industry wants its members to share the benefits of higher prices. “Let us see that money trickle down to workers when negotiations come,” said Joseph Mathunjwa, president of the Association of Mineworkers and Construction Union. In 2014, AMCU led the longest ever platinum strike.

“I am not prophesying a strike,” Mathunjwa said. “That mandate has to come from the workers.”

Thousands of AMCU members have been on strike at Sibanye’s three gold mines since Nov. 21, and the union is appealing a labor court ruling that barred its members from widening the action across the entire mining industry.

“Its a tough environment for AMCU,” said Griffith. “They would want to try and recover some face I guess and recover some of what they have lost in the gold industry. They will see platinum as a strength, and would want to capitalize on that.”_Bloomberg News

South Africa’s carbon tax could cost Amplats $21m a year from 2021 – CEO

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South Africa’s carbon tax could cost Amplats $21m a year from 2021 – CEO

South Africa’s new carbon tax could cost Anglo American Platinum up to $21 million a year from 2021 its chief executive said on Tuesday, piling pressure on an industry already grappling with higher energy and labour costs.

South Africa’s parliament in February approved a long-delayed carbon tax bill as part of plans to reduce harmful emissions in Africa’s most industrialised and polluting country.

The bill, which was postponed at least three times since first being mooted in 2010, faces opposition from heavy energy users, including Amplats, the world’s biggest platinum producer.

On the sidelines of a industry conference in Johannesburg, Chief Executive Chris Griffith said the carbon tax would cost Amplats around 50 million rand ($3.56 million) over the next two years.

That would rise to between 200 and 300 million from 2021, from when a tax on electricity use is included.

“I’m saying to the government don’t do it,” he said._Reuters

Niger to pay $14.5m for 10% of GoviEx’s Madaouela uranium project

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Niger to pay $14.5m for 10% of GoviEx’s Madaouela uranium project

Niger’s Ministry of Mines issued a letter supporting the negotiations between Canada’s GoviEx Uranium (TSXV: GXU) and the country’s federal government regarding the Madaouela uranium project.

Although final documents on their commercial understandings are yet to be signed, the Vancouver-based miner and country authorities have agreed that the Government of Niger will acquire a 10% working interest in the project, in addition to its 10% free carried interest provided under the 2006 mining code.

To purchase the additional 10%, the Mahamadou Issoufou administration has elected to convert approximately $14.5 million in requested payments comprised of the final $7.8 million acquisition payment and settlement of previously challenged area taxes ($6.6 million) between GoviEx and the government related to the Madaouela project.

“This is the culmination of more than 12 years of relentless work and millions of man-hours by GoviEx management and our Nigerien community,” —  Govind Friedland, GoviEx’s Executive ChairmanAccording to GoviEx, following the finalization of this transaction, the company will be effectively debt-free and it will enjoy a tax abatement period up through to successful project financing for mine construction and project development.

The proposed deals also consider that the Canadian firm’s existing mining permit, the Madaouela 1 Mining Permit, will be expanded to include previous mineral resources discovered in the nearby Agaliouk permit. This expansion will add a further 5.96 million pounds (Mlb) U3O8 in the measured and indicated categories.

Madaouela’s resource has been estimated at 60.54 Mlb U3O8 in total probable mineral reserves and a predicted 21-year mine life.

The 250-square-kilometre land package sits on the southeast side of the mining town of Arlit and was first discovered by the French Commissariat à l’Energie Atomique (CEA) in the 1960s. It was later explored by a series of different companies until GoviEx Niger Holdings acquired it in 2007_Mining.com

Firestone finds another massive diamond at Lesotho mine

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Firestone finds another massive diamond at Lesotho mine

Africa-focused Firestone Diamonds (LON:FDI) has dug up a 72-carat yellow, whole makeable diamond at its Liqhobong Mine in Lesotho, the second one over 70-carat it has found this year.

The stone, recovered over the weekend together with a 22 carat makeable white stone, followed by an 11 carat fancy light-pink diamond found at the asset.

“Makeable” diamonds are those whose shape allows to cut one large diamond from it. In contrast, “sawable” stones can be cut in half in order to create two smaller diamonds.

The stone, recovered over the weekend together with a 22 carat makeable white one, followed by an 11 carat fancy light-pink diamond found at the asset.

The two diamonds, found within the northern lower grade part of the pit, will go on sale at Firestone’s next tender, which is scheduled to take place during May 2019.

Shares in the company were 7.3% higher at 2.2p following the news.

Last month, a white 70-carat diamond from also from the Liqhobong mine was auctioned for an undisclosed price, following a 46-carat precious rock, also from the same mine, which was sold for $1 million in December.

Diamond prices have been under pressure and miners are struggling across the board, especially those producing cheaper and smaller stones where there is too much supply. In December, some of Rio Tinto’s (LON, ASX: RIO) customers refused to buy cheaper diamonds, while De Beers has been forced to cut prices and offer concessions to buyers.

Firestone spent $185 million building Liqhobong, which started production in late 2016, and boasts over 11 million carats in reserve. The total open pit resource contains over 17 million carats to a depth of 393 metres._Mining.com

Gold rush along Sakubva River

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Gold rush along Sakubva River

HUNDREDS of illegal panners have besieged the banks of the raw sewerage-polluted Sakubva River digging for alluvial gold deposits, in a development that has resulted in increased human activity in the adjacent Gimboki high-density suburb.

Gold buyers are slowly trickling in to set camp near the illegal mining sites while vendors with various wares including food stuffs have since thronged the river banks.

When The Manica Post visited the area yesterday morning, illegal panners were busy digging up for gold. Several shafts as deep as 15 metres have since been dug up along the river banks, posing serious environmental hazard.

Some of the illegal panners were panning right inside the channel of Sakubva River, apparently brushing aside lumps of raw sewerage flowing down the river.

“We came here five days ago and so far we have managed to get about five grammes.

“This is hard labour and you can see for yourself that these shafts are deep. Can you imagine we dug up those metres in such a short period?” said one of the illegal panners who only identified himself as Lawrence.

At night, the illegal panners take turns to guard the mining tunnels to avoid “pirates” who want to steal the gold ore under the cover of darkness.

The panners said they were being paid an average of $120 bond notes per gramme, a figure which they said was too low.

“There are few buyers here who are paying us peanuts because we have nowhere to go. We need money for food and other implements so at the end of the day we are forced to accept what they are offering,” said Lawrence.

Fears have gripped residents of the nearby Gimboki high-density suburb who are dreading the outbreak of diseases as the raw sewerage-drenched illegal panners are constantly getting in contact with the location.

Manicaland police spokesman, Inspector Tavhiringwa Kakohwa, said the police were yet to visit the illegal panning site.

“We haven’t received reports of the illegal panning activities in that area but we are going to send our officers and see what is taking place,” he said._Manica Post

Bubi miner plans $300k investment

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Bubi miner plans $300k investment

BUBI-BASED gold mining operation, Waterwitch, plans to invest $300 000 in plant and equipment upgrade to increase employment figures as well as boost output to 100 tonnes of ore per day.

The gold mine is situated in Inyathi, Bubi district, and employs 40 people directly and several others through a contract arrangement, producing between 40 and 50 tonnes of ore a day.

Mine director, Mr Ishmael Kaguru, expressed optimism that by year end they would have reached the targeted output as well as boosting employment figures to close to 100.

“Using own resources, we are investing $300 000 in plant and equipment upgrade and by the end of the year this will see our production figures increasing to 100 tonnes of ore a day from a range of between 40 and 50 tonnes a day,” he said.

“We are importing modern equipment such as ballmill, compressors, hoist and the shaving wheel from South Africa.”

Mr Kaguru said they were also replacing the existing stamp mill with a ball mill that would have the capacity to crush about 100 tonnes of ore a day.

“At the same time we will employ at least 50 more people up from the current 40 that we have. As a result of that our production will be higher in terms of tonnage,” he said.

“The existing stamp mill that we have is very small and thus we have ordered a ball mill, which will be crushing about 100 tonnes of ore a day.”

Mr Kaguru said his company has tried to secure a $400 000 loan from Fidelity Printers and Refiners to no avail due to inadequate collateral requirements.

“We are still appealing to the authorities that when it comes to the issue of collateral, they must look at the quantity of resources underground. If the resources are there, that is enough security for somebody to be given the loan,” said Mr Kaguru.

He said they were now using funds generated from the mine to buy the required equipment from neighbouring South Africa.

The operation has also applied to the Ministry of Finance and Economic Development for duty rebates to facilitate the importation of mining equipment and machinery, which was being brought in batches.

“By the end of the year, we should have turned from a medium-scale operation into a large–scale entity,” said Mr Kaguru.

Finance Minister Professor Mthuli Ncube has pledged Government’s commitment to establish a $100 million gold sector venture fund as it seeks to boost output and build reserves of the yellow metal.

The fund is designed to assist miners to re-tool so they ramp up production.

In 2018, the country produced 33,3 tonnes of gold up from 24,8 tonnes the previous year with the bulk of the mineral being produced by small-scale miners. At present, the small-scale miners are tapping from the Gold Development Initiative Fund set up by the Reserve Bank of Zimbabwe with resources under the fund being increased to $150 million last year from $74 million in 2017._The Chronicle

Mliswa cleared in Hwange mining contract bribery case

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Mliswa cleared in Hwange mining contract bribery case

The parliamentary hearing into bribery allegations against four members of the National Assembly began yesterday with the complainant Mr James Ross Goddard exonerating Messrs Temba Mliswa and Anele Ndebele in his testimony but incriminating two other legislators from the committee.

The duo is being investigated together with Cde Leonard Chikomba and Mr Prince Sibanda by a Parliament’s Privileges Committee chaired by Senator Chief Fortune Charumbira on allegations of demanding a $400 000 bribe from Mr Goddard to facilitate his company, JRG Pvt Ltd secure a coal mining contract at Hwange.

They are alleged to have used their membership of the Mines and Energy Portfolio Committee to demand the bribe.

The four are alleged to have demanded the bribe at a meeting held at JRG offices on November 15 last year, a day before the Mines and Energy committee was scheduled to visit to investigate operations at Hwange Colliery.

Mr Goddard told the committee that he had been introduced to the four by businessman Mr Shepherd Tundiya who indicated that as members of the Mines and Energy Committee they could assist his company get the mining contract.

Speaking during cross-examination by Mr Mliswa’s lawyer Advocate Tawanda Zhuwarara, Mr Goddard said the Norton legislator had not made any financial requests to him during the meeting and had left soon after the meeting.

He added that Mr Ndebele had also gone and sat in his car after the meeting while Mr Sibanda and Cde Chikomba remained behind where the request for the “facilitation fee” was made through Mr Tundiya.

He said Cde Chikomba and Mr Sibanda had indicated that they could not travel to Hwange without “something” to facilitate the deal.

“It (the issue of the facilitation fee) was raised by Honourable Chikomba and Honourable Sibanda that we can’t go to Hwange without something and it was Honourable Chikomba who was the most aggressive,” Mr Goddard said.

He said Cde Chikomba later provided him with his personal banking details where he could deposit half the amount while the other $200 000 would be paid when the contract had been secured.

Cde Chikomba, who is being represented by Mr Simon Musapatika is however, denying the charges saying in his testimony Mr Goddard had not provided any evidence that his client demanded the bribe.

He said the only issues his client discussed with Mr Tundiya when they were outside when the meeting had ended concerned money he was owed by the latter. 

Mr Sibanda, who is being represented by Mr Freddy Masarirevhu, is also denying the charges and said Mr Goddard had failed to  provide any evidence of his client demanding the bribe but was relying on perceptions.   

Mr Masarirevhu also queried why Mr Goddard had not set up a trap to prove that the request for the bribe was genuine.

The hearing continues today._The Chronicle

ZPC wins licence for Byo Power Company

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ZPC wins licence for Byo Power Company

THE Zimbabwe Energy Regulatory Authority has issued a licence to the Bulawayo Power Company for the Bulawayo Power Station.

In December last year, ZERA announced in a public notice that it had received an application from ZPC for amendment of the electricity generation licence to be extended by 20 years from 2024.

The licence was also to enable it to produce 120 megawatts of power with 90 megawatts to be fed into the national grid.

Residents, through the Bulawayo Progressive Residents Association and the Bulawayo City Council, had objected to the application saying they were the owners of the power station.

However, after hearing from the three parties, ZERA has announced that it has issued the licence to ZPC.

In an interview yesterday, ZERA acting chief executive officer Mr Edington Mazambani confirmed that they had issued the licence to ZPC and the development has been communicated to BCC and residents.

“We did write to the Bulawayo City Council on the issue and we did write to the residents indicating that the licence would be issued as we had heard the issues to do with their contestation. We couldn’t refuse issuing ZPC a licence based on that.

“They applied because their licence had expired; they had applied to extend the licence and to extend the capacity. We have issued them the licence,” said Mr Mazambani.

In a letter dated 27 March written to the residents by Mr Mazambani, ZPC indicated that it had consulted residents and other stakeholders prior to their application for licence renewal and extension.

“Please be advised that following the submission of the objection from the Association, ZERA engaged Zimbabwe Power Company to get clarification on the matter. The Zimbabwe Power Company provided evidence that the public was invited to a meeting to make representations as part of the environmental assessment (ESIA) on the expansion project which is deemed to have been adequate for consultation purposes,” read part of the letter.

Zimbabwe Power Company

It continued: “Zera is therefore proceeding with the review of the amendment of the generation licence GC0023 applied for by ZPC”.

However, the residents have since written to ZERA demanding a report and minutes of the consultation said to have been conducted by ZPC.

“We have read the letter but we are however kindly requesting the evidence provided to you by the Zimbabwe Power Company on the public consultations they supposedly held. 

“We have been previously invited to several meetings being conducted by ZPC and we are surprised that such a meeting was held without the knowledge and presence of BPRA (a concerned stakeholder) as well as the Bulawayo City Council (BCC). We are therefore kindly requesting the registers, invitations notices as well as the reports and or minutes of the meetings,” read the letter.

BRRA coordinator Mr Emmanuel Ndlovu said they were prepared to take legal action against the issuance of the licence to ZPC.

“BPRA has engaged lawyers who are prepared to go to court should ZERA go ahead with issuing the licence. We have been in touch with BCC and cannot at this instance disclose what they are doing or planning to do. What we have agreed is that we will put our heads together and work tirelessly to        ensure that the licence is not granted,” said Mr Ndlovu.

India in 2017 extended a $23 million credit loan facility to the ZPC to boost power generation at the Bulawayo Power Station. 

An official from ZPC explained that it was standard procedure for the company to apply for a new licence when upgrading its power generation.

“You cannot upgrade any power station without the issuance of a new licence hence for the Bulawayo Power Station they had to apply for a new licence which would state the amount of megawatts they are producing. In simpler terms, it is illegal to upgrade any power station without a new licence from Zera,” said the official who declined to be named.

ZPC operates four coal-fired power stations, Hwange, Bulawayo, Munyati and Harare thermal stations, and the hydro powered Kariba South Power Station._The Chronicle

Vast resources to sell stake in Pickstone Peerless?

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Vast resources to sell stake in Pickstone Peerless?

MORNING STAR reports Vast Resources PLC is to ask shareholders for approval to change its accounting dates and also sell off its Zimbabwean gold assets, it said Monday.

Vast resources is looking to sell its 50% stake in Ronquil Enterprises Pvt Ltd, through which it holds a 25% stake in the Pickstone Peerless gold mine and the Eureka gold mine.

Vast has signed a sale contract, is said, with an unnamed party and for an unspecified sum.

The company is also looking to push its year end to April 30 rather than March 31, for both its current year and in future.

“I am delighted with the results this transaction will achieve for the company as it will allow management to focus its efforts on the two core focus assets in the company, namely the Heritage Concession in Zimbabwe and Baita Plai in Romania,” said Chief Executive Andrew Prelea.

“The Heritage Concession will require significant investment, not only financial but in human resource to enable near term positive cash flow for the business,” Prelea continued.

“The divesting of the gold assets in Zimbabwe allows us to focus all of our Zimbabwe finance and management on this key component of the company’s growth.”

Shares were 0.1% lower on Monday afternoon at 0.16 pence each.

By George Collard; [email protected]

Gold prices gain, Platinum hovers below 10-month peak

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Gold prices gain, Platinum hovers below 10-month peak

Gold prices rose on Tuesday, trading close to a more than one-week high touched in the previous session, as the dollar eased after weak U.S. economic data, platinum hovers below 10-month peak hit on Monday.

Spot gold rose 0.2 percent to $1,299.59 per ounce as of 0354 GMT, after touching its highest since March 28 at $1,303.61 in the previous session.

U.S. gold futures were up 0.1 percent at $1,303.30 an ounce.

“The U.S. dollar is subdued and data shows that there is continued buying from central banks,” ANZ analyst Daniel Hynes said.

China, the world’s biggest gold consumer, raised its gold reserves by 0.6 percent to 60.62 million ounces by end-March, central bank data showed.

Turkey also raised its gold holdings in March, according to data from the International Monetary Fund.

The dollar sagged after weak U.S. economic data, making gold cheaper for investors holding other currencies. It posted its biggest daily percentage decline since March 20 in the previous session.

Orders for U.S.-made goods fell modestly in February and the manufacturing sector is slowing amid rising inventories, data showed on Monday.

U.S. nonfarm payrolls data on Friday also signalled a slowdown in wage growth and job cuts in the manufacturing sector even as employment accelerated.

“Gold’s gains in the last 24 hours were a follow-up on the jobs report from the U.S. on Friday,” said Ilya Spivak, a senior currency strategist at DailyFX.

“Decline in wage inflation takes the pressure off the Fed and lets it remain dovish and delay rate hikes and maybe switch gears, and that’s supportive for gold.”

Lower interest rates reduce the opportunity cost of holding the non-yielding bullion and also weigh on the dollar, increasing gold’s appeal.

Market participants are now awaiting minutes of the Federal Open Market Committee’s March meeting, due on Wednesday, while the European Central Bank meeting on the same day is also on investors’ radar.

“There is an expectation for a dovish-biased statement based on what came out in March. The larger issue is how concerned are our policy makers over the state of global economy,” Spivak said.

The U.S. Federal Reserve last month abandoned projections for any interest rate hikes this year amid signs of an economic slowdown.

Meanwhile, holdings in the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, fell for a sixth straight session to 760.49 tonnes on Monday.

Among other precious metals, spot platinum was down 0.1 percent at $904 per ounce, after touching its highest since end-May 2018 in the previous session.

Palladium slipped 0.5 percent to $1,376.07 an ounce, while silver gained 0.1 percent to $15.26 per ounce._Reuters

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