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MaShurugwi a threat to national security

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MaShurugwi a threat to national security

Machete-wielding “miners” popularly known as Mashurugwi, who started off as artisanal miners later transforming into criminal masterminds have become a formidable force in Zimbabwe and their existence is becoming an imminent threat to national security if the police continue to be reluctant in dealing with this issue, one security personnel has said.

Rudairo Mapuranga

The police should work with the community to identify these people because if they are not controlled now, the country is breeding a Potential terror force that is going to control certain areas like what is happening in the Middle East, the security personnel told Mining Zimbabwe.

Recently there was a fierce battle between Bindura and Glendale residents and the machete-wielding miners were residents reportedly fought the group because it has been constantly terrorising people and robbing innocent citizens. The groups have been reported attacking the police in Bindura and earlier this year, the notorious gang also killed army personnel in Bindura whilst severely injuring two others.

‘‘The environment is now unfriendly for ZRP personnel to execute their duties. Last year, the Mashurugwi-Korokozas attacked and killed the Army personnel.’’

According to a statement released by Mashonaland Central residents, the Makorokoza are bathing in broad daylight in full glare of the community at local boreholes. The Mashurugwi are also well known for robbing the community at night and raiding gold claims, confiscating gold ore, machinery and money. As if this is not enough, these unruly menaces rape women of the night threatening them with knives, raiding and forcefully taking their money.

The Mashonaland Central residents said that buildings and houses that were used as accommodation by the Mashurugwi were demolished by Bindura residents who vowed that they will not stop fighting this war until the state has intervened and the menacing groups are gone.

‘‘A lot is happening in the darkness of the night, on the 16th of September 2019, the Bindura residents joined hands and chased the Mashurugwi out of the neighbourhood. Some of the gang members ran away and some were captured. Their cars and properties were destroyed’’, said Mashonaland central residents.

According to Mashonaland Central residents association, their definitive act of resisting the Mashurugwi’s invasion led the notorious gang to poison the Bindura water treatment plant. The Bindura Town Council tested the water and assured the residents the water was safe after conducting tests using the Freda Rebecca Mine Labs. Nevertheless, this could be the beginning of a new civil conflict, if left unchecked.

The Bindura-Mashonaland Central residents are appealing to the national community to join hands in fighting the Mashurugwi-korokozas. The Mashonaland Central Residents Association is also kindly appealing to all stakeholders who intend to invite outsiders into the province to delay these invitations until the Mashurugwi are tamed.

Caledonia’s production target reduces due to unstable power supply.

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Caledonia’s production target reduces due to unstable power supply.

Despite achieving an increase of 6.4 per cent on gold production in the first quarter of 2019, Caledonia’s Blanket Mine which is also reckoned as one of the biggest gold producers in Zimbabwe has experienced a sharp decline in its full-year production target of 56 000 ounces to 50 00 ounces due to unstable power supply.

Rudairo Mapuranga

According to a statement released by the company last month, the company has revised its target from 56 000 to 50 000 ounces in the year 2019 due to the continued low grades and the difficulties with electricity supply in July and early August.

“Due to the continued low grades and difficulties with electricity supply in July and early August, management has reduced full-year production guidance from the previous range of 53,000 to 56,000 ounces to a revised guidance range of 50,000 to 53,000 ounces. Whilst it is disappointing to reduce production guidance, earnings guidance for 2019 remains unchanged at 86 to 117 cents per share due to a higher than anticipated gold price and lower than expected costs”, reads the report in part.

Blanket Mine’s performance in the first quarter of 2019 was excellent due to different measures taken by the Zimbabwean government in trying to give minerals their full value. The Mine is also confident that they will reach a yearly production target of 80 000 ounces per year by 2022.

“Our cost performance for the Quarter was excellent, as a result of stringent cost control aided by the devaluation of the Zimbabwe currency, the South African rand and sterling which reduced the dollar value of expenses incurred in such currencies.  On-mine costs of $534 per ounce for the Quarter were over 25 per cent lower than the corresponding quarter of 2018 and the all-in sustaining cost of $656 per ounce was 23 per cent lower than the second quarter of 2018.  We are pleased to see this level of cost control in the business and remain confident in our longer-term all-in sustaining cost guidance target of $700 – $800 per ounce as the business grows towards 80,000 ounces per year by 2022”,  reads the report.

“Caledonia also remains highly immersed in cash deficits due to the continued low grade and difficulties with electricity supply in July and early August. The management has reduced full-year production guidance from the previous range of 53,000 to 56,000 ounces to a revised guidance range of 50,000 to 53,000 ounces. Whilst it is disappointing to reduce production guidance, earnings guidance for 2019 remain unchanged at 86 to 117 cents per share due to a higher than anticipated gold price and lower than expected costs.

“Our cost performance for the Quarter was excellent as a result of stringent cost control, aided by the devaluation of the Zimbabwe currency, the South African rand and sterling which reduced the dollar value of expenses incurred in such currencies.  On-mine costs of $534 per ounce for the Quarter were over 25 per cent lower than the corresponding quarter of 2018 and the all-in sustaining cost of $656 per ounce was 23 per cent lower than the second quarter of 2018.  We are pleased to see this level of cost control in the business and remain confident in our longer-term all-in sustaining cost guidance target of $700 – $800 per ounce as the business grows towards 80,000 ounces per year by 2022.

“Caledonia also remains highly cash generative with operating cash generated in the first half of 2019 of approximately $8.4 million, this cash contributed to a healthy balance sheet with cash on hand of approximately $8 million at the end of the Quarter.

“Other macroeconomic events during the quarter were the continued devaluation of the Zimbabwean currency, which experienced an almost 10-fold devaluation since late February 2019.  This contributed towards a significant increase in inflation which has made life difficult for our staff in the country.  We note that the exchange rate appears to have stabilized in recent weeks and it is important to note that government fiscal discipline remains robust. The current currency devaluation and inflationary conditions appear for the most part to be a legacy of past fiscal indiscipline rather than as a result of current policy: indeed, the government continues to run a primary budget surplus, a level of fiscal discipline that bodes well for future stability. Moreover, the Finance Minister announced in the recent interim budget statement that the royalty payable to the government will be deductible for the purposes of calculating income tax. He also revised the royalty rate which is reduced from five per cent to three per cent of revenues when the gold price is below $1,200 per ounce. We welcome the government of Zimbabwe’s continued efforts to promote investment in the sector.

“The devaluation of the Zimbabwe currency resulted in very substantial foreign exchange gains as the value of liabilities such as bank loans and deferred tax were eroded in US-dollar terms.  Earnings per share reported under IFRS for the Quarter was 211 cents per share – almost a nine-fold increase on the second quarter of 2018. Adjusted earnings per share which is a measure of the underlying performance of the business and excludes items such as unrealised foreign exchange gains were 26.8 cents per share, unchanged from the previous quarter and in-line with guidance for 2019.

“Capital investment for the quarter was in-line with our Capex plan for 2019 at $4.2 million, most of which was incurred at Central Shaft. We expect capex to decline substantially after we commission the Central Shaft as planned in 2020.  Thereafter we expect free cash flow to increase significantly driven by rising production, an expected decline in operating costs and importantly, reduced capital investment. We are also pleased to see the recent strength in the gold price which, if sustained will be a welcome boost for patient gold investors.

According to Caledonia, the continued devaluation of the Zimbabwean dollar has led a very difficult life for the mineworkers who have since lived a very difficult life.

“Other macroeconomic events during the quarter were the continued devaluation of the Zimbabwean currency which experienced an almost 10-fold devaluation since late February 2019.  This contributed towards a significant increase in inflation which has made life difficult for our staff in the country”, reads the report.

The exchange rates appear to have stabilised in recent weeks according to the mine‘s report and it is important to note that government’s fiscal discipline remains robust. The prevalent currency devaluation and inflationary conditions appear to be a legacy of  the past fiscal indiscipline rather than the flaws of the current policy: indeed, the government continues to run a primary budget surplus, a level of fiscal discipline that bodes well for future stability. The Minister of Finance also revised the royalty rate which was reduced from five per cent to three per cent of revenues when the gold price is below $1,200 per ounce. We welcome the government of Zimbabwe’s continued efforts to promote investment in the sector.

The devaluation of the Zimbabwean currency resulted in substantial foreign exchange gains as the value of liabilities such as bank loans and deferred tax were eroded in US-dollar terms.  Earnings per share reported under IFRS for the Quarter was 211 cents per share – almost a nine-fold increase on the second quarter of 2018. Adjusted earnings per share which is a measure of the underlying performance of the business, excluding items such as unrealised foreign exchange gains were 26.8 cents per share, unchanged from the previous quarter and in-line with guidance for 2019.

The company’s report stated that capital investment for the quarter was in-line with its capex plan for 2019 at $4.2 million, most of which was incurred at Central Shaft. The company expects capex to decline substantially after we commission the Central Shaft as planned in 2020.  Thereafter, the company expects free cash flow to increase significantly driven by rising production, an expected decline in operating costs and importantly, reduced capital investment. The company is also pleased to see the recent strength in the gold price which, if sustained will be a welcome boost for patient gold investors.

ZMF AGM and Conference date set

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ZMF AGM and Conference date set

 

 

Zimbabwe Miners Federation (ZMF)’s annual general meeting (AGM) and Conference which was cancelled due to the former president’s death has been set to the 5th of November 2019.

Rudairo  Mapuranga

According to a press release gazetted by ZMF Chief Executive Officer Mr Wellington Takavarasha, the event has been set to the 5th of November because the guest of honour who is the president of Zimbabwe, Emmerson Dambudzo Mnangagwa will be available on the 6th of November.

“Notice is hereby given that the Office of His Excellency, the president of the Republic of Zimbabwe has communicated with the ZMF secretary that the 6th day of November 2019 is the set date that will see the president unveiling himself for the ZMF AGM and Conference, delivering the keynote address. This, therefore means that the event programs will begin on the 5th of November 2019″, reads the report in full.

The meeting whose main aim is to build the relationship between small scale and artisanal miners and their stakeholders in order to liberalise the sector into the mainstream economy will be attended by high profile mining personnel including both Ministers of Mines, Economy, Energy and Power Development.

There is a belief in the mining corridors that the mining sector is the leading economic reviver in Zimbabwe with the small-scale mining sector on the forefront.

During the first quarter of 2019 Fidelity Printers and Refineries received over 12 tonnes of gold from both large and small producers with the small-scale mining sector producing over 60 percent of the gold.

The government of Zimbabwe has been encouraged to support indigenous miners in order for them to grow from being small scale into middle producers up until they become large, thereafter competing with the world’s biggest mines.

Vast, Chiadzwa Mineral Resources sign JV agreement

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Vast, Chiadzwa Mineral Resources sign JV agreement

London based Vast Resources PLC has signed a joint venture agreement with Chiadzwa Mineral Resources (Pvt) Ltd a company designated to represent the Chiadzwa community interests in the company’s diamond concession in Zimbabwe.

This joint venture resulted in the formation of Katanga Mining (Pvt) Ltd, which has, in turn, agreed its own joint venture with Zimbabwe Consolidated Diamond Company (Pvt) Ltd, a government entity which represents the Republic of Zimbabwe in the diamond mining sector.

This second joint venture is set to be officially signed during the first week of October

“This is the beginning of an exciting era in Zimbabwe, and working together with government and community has been a great pleasure,” said Andrew Prelea, chief executive of Vast.

“Being a part of this landmark project is of great significance to all the stakeholders, being a first of its kind where the community will have a direct benefit from the natural resources in their community.”

Shares in Vast rose 63% to 0.19p on the news.

About Vast Resources

Vast Resources has a long-standing presence on the ground in both Romania and in Zimbabwe. It is focussed on establishing a portfolio of productive assets in these two countries in the near term and moving its pipeline of brownfield and appraisal opportunities up the development curve. This is intended to give shareholders exposure to a diverse range of commodities including copper, gold, silver, zinc, lead and diamonds from several different mining operations in two highly prospective jurisdictions.

The Company’s priority is on the advancement of its two primary value drivers, the Baita Plai Polymetallic Mine in Romania, and the Heritage Diamond Concession in Zimbabwe, into production in 2019.

ZMF AGM & Conference moved to 5th of November 2019

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ZMF AGM & Conference moved to 5th of November 2019

ZMF AGM and Conference has been moved to the 5th of November 2019.

See document HERE

Chisi still observed in the mining sector

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Chisi still observed in the mining sector

Artisanal and small scale miners in the Norton constituency are still observing Chisi as an aspect of our culture as Zimbabweans. In an interview with Mining Zimbabwe, artisanal miners indicated that this is done to respect the owners of the land( the ancestors), as well as to give themselves a day to rest.

Mirirai Melissa Ngoya

Taking a tour in the Norton mining areas last Thursday, it came to our attention that mining operations are not undertaken on Thursdays which they recognize as Chisi, a day set aside for them to rest and to honour Zimbabwean historical culture and traditions.

The Chairman of the Norton Miners Association Mr Moyo had this to say, “Most small scale miners believe in upholding cultural values, hence the need to respect Chisi. Just like in a Muslim religious circle whereby Muslims believe in their Fridays hence they close all their businesses for a certain time.”

Therefore, this signifies that the operations being performed by small scale miners are in line with our cultural panorama as a nation since the miners are following what our forefathers used to do.

Credit must be given to these miners for adhering to our customs, this has actually seen the small scale mining sector producing and delivering more gold to Fidelity. It takes culturally motivated individuals like these to mend Zimbabwe’s economic sphere because by virtue of them being miners they saw it necessary to observe the ‘archaic’ rules of labor, making them effective once again.

“For us who believe in Chisi, we respect it as per our custom and the good news about Chisi in the mining sector is that it is not 24hours but 12-6hours depending on what the spirit medium says. Thus, if we believe in our traditional culture in the mining industry, we must also observe the rules and regulations involved in these operations”, said Moyo.

Further, one artisanal miner anonymously said, “I have learnt to do what my forefathers used to do, that is respecting the Zimbabwean soils by observing Chisi.”

“It is important to adhere to our customs and tradition at a community and national level as this will open up many blessings from the ancestors”, he added.

Prosperity is the utmost stage of intensive learning, one becomes successful in learning through listening and obedience. Thus, the things which may be deemed unnecessary or archaic are the root cause of our downfall as a nation because culture is what identifies us as a people.

Gemstones types and location found in Zimbabwe

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Gemstones types and location found in Zimbabwe

Gemstones types and locations found in Zimbabwe

Precious Stones

With reference to the Precious Stones Trade (PST) Act Chapter 21:06, “precious stones” are rough or uncut diamonds and emeralds. Local dealers have to be licensed by the Ministry of Mines and Mining Development through the issuance of Precious Stones Licences, to trade in precious stones as defined by the PST Act.

Diamond

Diamond (C) is a crystalline material made of carbon atoms, in the cubic system. This is one of nature’s most admired minerals and gemstones. Occurrences in Zimbabwe are associated with kimberlitic and placer deposits. Zimbabwe is a signatory to the Kimberly Process Certification Scheme, therefore all rough diamond exports are accompanied by a Kimberly Process Certificate, issued by MMCZ. Other uses: Industrial (cutting tools/blades/saws/drill bits/ abrasives) Mine Locations: River Ranch Diamond Mine in Beitbridge, Murowa Diamond Mine in Zvishavane, Chiadzwa Diamond Fields in Marange District of Mutare and DTZ on Chimanimani. Availability: Zimbabwe currently produces over one million carats per year.

Gemstones

The gemstone is the green variety of beryl, coloured by chromium. The trademark Zimbabwean Sandawana emeralds are characteristically yellowish-green with tremolite needles as inclusions. The Sandawana minerals maintain the lovely yellowish-green colour even in the smallest of pieces and are most suited to watch and fine jewellery. Mine Locations: Mweza Range in Mberengwa, Hurungwe. Availability: Mostly in small stone sizes

Semi-Precious Stones

Amethyst

 

This gemstone is the purple to violet variety of quartz. The gemstones can be supplied in rough or polished form. Mine Location: Northern border areas Availability: Good quality material is limited.

 

 

Alexandite

 

This is a rare and valuable gemstone, which is emerald green in natural light and red in artificial incandescent light. The colour is attributed to the presence of chromium ions in the crystal structure of the gemstone. Mine Location: The famous Novello claims in Masvingo Availability: Clean material suitable for polishing is rare.

 

Aquamarine

This is the blue or aqua variety of beryl. The bulk of Zimbabwe aquamarine production is pale to medium sky blue colour while a small percentage is bluish-green in colour. The bluish-green beryl can be heat treated to give the desirable colour of aquamarine. Mines Locations: Karoi (mainly the Mwami Mica fields), Mt Darwin and Mutoko in small scale workings Availability: Size – bulk of production in small stones (0.5g pieces in unpolished stones), bigger stones up to 2g pieces also available but in very small quantities.

 

Heliodor

Golden yellow variety of beryl. Mines Locations: see aquamarine Availability: see aquamarine

Goshenite

GosheniteColourless variety of beryl Mines Locations: see aquamarine Availability: see aquamarine

Chrysoberyl

Chrysoberyl (BeAl2O4) mainly occurs in pegmatite, greisens and hydrothermal deposits. Common varieties of the mineral in Zimbabwe are transparent chrysoberyl, chrysoberyl cat’s eye and alexandrite. The semi-precious varieties (transparent chrysoberyl and chrysoberyl cat’s eye )usually occurs in golden yellow, yellowish green to brownish green shades. Chrysoberyl cat’s eye also known as cymophane displays a phenomenon called chatoyancy (cat’s eye effect) Mine Location: Karoi-Hurungwe District in small scale workings Availability: Usually in small sizes less than a carat when cut and polished.

 

Lolite

Iolite or cordierite sometimes referred to as water sapphire because of its resemblance to sapphire is found in deposits associated with pegmatites. Zimbabwean iolite has a saturated sapphire blue colour, is reasonably priced and is available in big quantities. Mine Location: Makuti (Northern part Zimbabwe) from small scale workings Availability: Readily available

 

Tourmaline

Tourmaline occurs in wide range of colours. Varieties available in Zimbabwe are green, watermelon (rare in good qualities) blue and black tourmaline occurring in greisens and pegmatite deposits. All these varieties are mainly available in the pencil crystal form. Mine Location: Karoi – Hurungwe District from small scale workings Availability: Readily available especially the dark shades of green and black

 

 

 

Falcon Gold gets 12 month’s loan reprieve

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Falcon Gold gets 12 month’s loan reprieve

Falcon Gold has been given a year’s breathing space to repay their loans by the Canadian based gold miner, New Dawn Mining Corporation,  amid evidence that the latter is in financial dire straits.

The decision was communicated recently by Falcon Gold’s board chairperson, Ian Saunders after clarifying the critical financial position which the company is going through.

“We obtained a letter of support from the ultimate holding company New Dawn Mining Corporation, which states that they will not demand repayment of loans in the next 12 months and will extend principal repayments due for another year,” Saunders said.

This comes against a background where the company’s long-term financial obligations that are not due within the next twelve months are currently standing at $33.4 million while debts due for payment within a year are standing at $16 million.

Saunders reported that the group sustained losses attributable to the shareholders of the group during the six months ended 31 March, 2019 of $27 million which increased significantly from the $2 million loss recorded in the previous year.

The Group had a net working capital deficit at 31 March, 2019 of $11, 3 million and negative equity of $44, 3 million as at 31 March 2019.

“The board and management, with the assistance of the majority shareholder, are exploring options for additional US$2.5m – US$3m of funding to enable repair of the mill and resuscitation of mining operations but have not finalised the funding structure,” Saunders added.

The company’s shares were suspended from trading on the Zimbabwe Stock Exchange (ZSE) on the 5th of February this year, after an application by the company to ZSE in which it indicated it was yet to finalise the September 2018 financial statements .

However, after the publication of financial results for the half year which was done recently, the company will be making an application to ZSE to resume trading of the shares. Source: Newsday

Villagers up in arms with illegal tantalite miners

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Villagers up in arms with illegal tantalite miners

Villagers in Pfungwe are up in arms with illegal miners who are destroying the environment in search of tantalite mineral.

In a movie-like style, the illegal miners ransacked parts of Sowa area before they were intercepted by the local leadership, resulting in them fleeing from the area.

Speaking during a tour of the affected area, Uzumba Maramba Pfungwe (UMP) district administrator Douglas Hungwe revealed that his office was notified by the villagers on the presence of the illegal miners who were mining in the area using heavy machinery.

“We received a tip-off from the villagers and visited this area only to find some illegal miners operating there. They had heavy machinery and we were surprised that as the leadership we were not aware of their presence,” Hungwe said.

“I asked them for their papers and EIA (environmental impact assessment) certificate, but they failed to produce it. We alerted the police and as they were leaving with four loaded trucks they were arrested at a roadblock. We were later informed that they were fined for transportation of ore without permit.”

The illegal miners had dug deep gullies in the area as they searched for a yet-to-be-known mineral and silted two streams in the process. After the interception, they have since vacated the area leaving deep pits, uprooted trees and gullies which is detrimental to both humans and livestock.

Ward 5 councillor, Wilford Katsande told journalists that the miners were ferrying the rocks to Norton, saying they are used to produce dinner plates and ceramic tiles.

“After being notified by the villagers of the invasion by these illegal miners, I confronted one of the men who was operating a machine who revealed that they were taking the stones to Norton where they are used to produce dinner plates. I also gathered that the stone, which they were mining is rich in tin, tantalite and can be used to manufacture cement,” Katsande said. Source: Newsday

African Chrome Fields shuts down

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African Chrome Fields shuts down

ONE of the country’s largest ferrochrome producers, African Chrome Fields (ACF), has shut down its mining operations in Kwekwe, laying off over 500 workers.

The company is owned by South African businessman Zunaid Moti, with the Zimbabwe National Army believed to be dormant partners in the company.

Moti told Southern Eye that he was under pressure to pull out of Zimbabwe because of the country’s negative image and the collapsing economy which was affecting operations at ACF. The business mogul had sunk over US$250 million in the project.

The drastic drop of chrome price in China has also impacted the company, established five years ago amid pomp and fanfare, with then Vice-President President Emmerson Mnangagwa and army general Constantino Chiwenga officiating at the event.

“Some people would not want to do business with us because we are in Zimbabwe. But the economic meltdown in the southern African country has also caused a negative impact as well,” Moti said.

ACF became a force to reckon with in the chrome mining sector, competing with Zimasco, after it invested over $200 million in the construction of an aluminothermic plant and six other plants that were set to generate 10 000 tonnes of ultra-low carbon ferrochrome monthly within 11 months.

Its establishment in 2014 came as a reprieve to the Kwekwe community, after a Chinese investor had failed to run the country’s largest chrome smelting company, Zimasco, laying off thousands of workers.

ACF, situated along the Kwekwe-Mvuma Highway, has the largest smelting ferrochrome plants after Zimasco.

Workers’ representative Chaipa Magura said company management in a meeting held on September 6 agreed to stop further retrenchments and pay outstanding salaries. However, only security details will be at the premises.

“After consultation between all present, the parties agreed that management pays outstanding salaries and workers shall be called to work when need arises with a seven-day notice. As for now, security details are to remain at the sites,” he said.

Efforts to get a comment from Mines and Development minister Winston Chitando were fruitless as he continuously said he was busy.

A senior official in the Mines ministry said the drop of chrome price in China the country’s sole market had affected many chrome companies’ operations in Zimbabwe.

“It’s not only ACF that has been affected, but we have big companies such as Nelson in Gweru that have been hammered by the drop in chrome price. We currently have China as our major market and they recently announced the drop in price with over 40%,” said the official who could not be named for security reasons. Source: Newsday

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