Home Blog Page 697

Sengwa power station project set to start

TEPE
-
0
Sengwa power station project set to start

LISTED mining group, RioZim, says it is set to kick start development of the proposed US$2 billion Sengwa Thermal Power Station project in Gokwe before the end of this year.

In a statement accompanying audited financial results for the year ended December 31, 2018, RioZim chairman Mr Lovemore Chihota yesterday said: “The group made strides in the Sengwa Power Station Project, which entails the development of a 2 800 megawatt power station in phases of 700MW each.

“As the project gained significant traction during the year under review, the company has now set ambitious targets for 2019, which will culminate in the project kick off in the next 12 months”.

Going forward, he said, their objectives remain consistent and well defined in pursuing growth opportunities, generating free cash flows and positive returns.

“In this regard, the group has lined up strategic initiatives, which if successfully implemented will significantly improve the group’s fortunes. The major projects include the construction of the BIOX plant at Cam & Motor Mine and the Sengwa Power Station Project.

“The group is encouraged by engagements made with monetary authorities to mitigate the currency constraints and is confident that the projects will prevail and is, therefore, looking forward to a conclusive operating environment in 2019,” said Mr Chihota.

In February, the Reserve Bank of Zimbabwe introduced the interbank foreign currency market to formalise the selling and buying of the United States dollar and other currencies through banks and bureaux de change essentially bringing sanity to the foreign currency market while at the same time promoting exports, diaspora remittances and investments.

During the period under review, RioZim posted a 15 percent decline in revenue to US$75,4 million from US$88,9 million realised in 2017.

“The group’s performance was due to low production volumes in the second half of the year and the inability to complete planned capital projects due to foreign currency funding constraints, which would have sustained and increased production.

“The group was able to record an operating profit of US$2,4 million which was 71 percent below the prior year’s operating profit of US$8,1 million,” Mr Chihota said.

“Overally, however, the group exited the year with a net loss of US$2,3 million against a net profit US$8,1 million achieved in the prior year, partly attributable to the fixed costs incurred whilst operations were suspended for the gold business.”

He said RioZim remains resolute on building and maintaining a sustainable mining concern in line with its holistic approach to business._The Chronicle

Murowa diamonds posted USD10 million profit

TEPE
-
0
Murowa diamonds posted USD10 million profit

RioZim group associate, Murowa Diamonds (Private) Limited, despite the group’s gold production for the year 2018 regressing  by 13 percent to 1.792 tons which is less than the 2.071 tons achieved in the prior year, managed to maintain its momentum from the previous year and produced 740,244 carats from 732,045 carats.

According to a statement issued by the group’s chairperson Mr Lovemore Chihota, the diamond company posted a profit of USD 10 million, the magnificent performance of the mine was as a result of the mine producing 740, 244 carats against the previous year’s production of 732 045 carats.

“The Group’s associate Murowa Diamonds (Private) Limited (“Murowa”) posted a profit of USD 10 million. Murowa’s stellar performance was depicted in an increase of diamond production to 740 244 carats against prior year’s production of 732 045 carats” he said.

According the statement, the Mine’s profits were also necessitated by the courts’ declaration that the alleged ground rental fees were ultra vires the Mines and Minerals Act [Chapter 21:05] had a positive impact on the viability of the associate’s business. The associate contributed positively to the Group’s results with a share of profit of USD 1.5million (2017: USD 1.4million).

RioZim blames government for profit loss

TEPE
-
0
RioZim blames government for profit loss

One of Zimbabwe’s leading gold and diamond producer, RioZim which recorded a net loss of USD 2.3 million against a net profit of USD 8.1 million achieved in the prior year, blames government’s position on currency for creating a very difficult working environment which led to an inability to procure necessary stocks from critical foreign suppliers.

According to a statement issued by the company’s chairperson Lovemore Chihota, the government’s stubbornness on the position of the USD against the RTGS where it insisted that the currencies were at par while in actual fact the USD was trading at 1:4 against the RTGS balances, led to a situation where the company was selling 45 percent of its gold output at loss because all companies supplying mining machinery and other equipment had adjusted to the parallel market exchange rates.

“…the remaining 45% of the Company’s gold export proceeds were paid in local RTGS currency at a rate of 1:1 with the USD, notwithstanding the fact that the prevailing parallel market was as at October trading at a rate of circa USD 1: RTGS$ 4, and all local suppliers had adjusted their prices to these exorbitant parallel market rates. As a result, for a greater part of the second half of the year 2018, the Group effectively sold 45% of its gold production at only 25% of its true value” he said.

According to the group’s chairperson, the company lost production time after it unwillingly shut down all mining operations in the fourth quarter of the year citing poor government policy which led to insufficient foreign currency allocations by the Reserve Bank of Zimbabwe.

“As a result of these challenges, a whole two months production was lost albeit the fact that the company continued to meet all of its fixed costs and thus driving the business down a path of operating losses,” he said.

“The Group’s revenue decreased by 15% to USD 75.4 million in 2018 from USD 88.9 million realized in 2017. The Group’s underperformance was due to low production volumes in the second half of the year and the inability to complete planned capital projects due to foreign currency funding constraints, which would have sustained and increased production” he said.

However, the company’s chair said some strides were made by the company despite the challenges it faced last year.

“RioZim Limited, however, prides itself in being a truly resilient Zimbabwean company and despite these difficulties, various milestones were achieved during the course of the year, notwithstanding the macroeconomic obstacles which it faced” he said.

According to the group’s statement, RioZim Limited remains resolute on building and maintaining a sustainable mining concern in line with its holistic approach to business. Among the Group’s key goals is to be a responsible corporate citizen. RioZim Foundation continues to expand on its vision to create, develop and promote collaborative sustainable development programmes so that measurable socio-economic benefits are afforded to the communities in which the Group operates and to the country at large.

 

 

1,800 workers trapped underground in South Africa mine

TEPE
-
0
1,800 workers trapped underground in South Africa mine

About 1,800 workers are trapped at a Sibanye Gold  platinum mine in South Africa after an accident halted operation of a shaft used to transport workers.

The company is exploring options to bring the workers to the surface and could use an adjacent shaft if repairs to the Thembelani shaft take too long, said spokesman James Wellsted. It may take a couple of hours to complete work on the shaft and the company can’t say when the workers might be hoisted up, he said.

Workers have congregated at pick-up points about 1.5 kilometers (0.9 miles) underground, he said. They have been underground since the morning shift, which would have ended around 2 p.m. local time. No injuries have been reported.

“They are in a very big complex, but they are quite safe,” Wellsted said. “They have access to water and there is sufficient ventilation.”

The incident may revive concerns about safety at Sibanye, which last year suffered a spike in fatal accidents at its gold mines. About 1,000 workers were also trapped underground for more than a day at one of the producer’s operations in February 2018 after a storm damaged power supplies in the area. South African mines are some of the deepest in the world.

Sibanye’s platinum-group metal operations have been a bright spot for the miner — and it’s biggest source of revenue — as the company struggled with a range of setbacks in gold, including a crippling five-month strike over wages.

Sibanye shares closed 2.8% lower in Johannesburg on Tuesday._Bloomberg News

Activists slam South Africa decision to pump water to coal mines

TEPE
-
0
Activists slam South Africa decision to pump water to coal mines

South African environmental groups have challenged the government’s decision to grant permission for a water project which aims to supply developments for its future coal reserves.

Authorizing a part of the Mokolo Crocodile (West) Water Augmentation Project, which would pump water to the coal-rich Waterberg region, is unlawful because the development “must be socially, environmentally and economically sustainable,” environmental groups Earthlife Africa and groundWork said in an appeal to the Department of Environmental Affairs.

South Africa relies on coal for more than 90 percent of its power generation. The Waterberg area has been considered the country’s future supply of supply. It’s also the planned location of both proposed power station projects and Exxaro Resources Ltd. mines. The groups represented by attorneys at the Centre for Environmental Rights argue that damage to human health and the environment that’s caused by the projects would exceed the benefits of cheap power.

“A water transfer scheme that is intended purely to enable a number of unnecessary, not to mention harmful, coal developments, is a reckless use of our limited water,” Makoma Lekalakala, director of Earthlife Africa, said in a statement.

A spokesman for South Africa’s Environment Department didn’t immediately respond to an email seeking comment.

Earthlife has slowed the development of private coal stations through earlier challenges to projects which have received government approval. The water project’s environmental authorization has been suspended until the fate of the appeal has been decided by the minister of environmental affairs, according to the environmental groups._Bloombeg News

Alphamin begins commissioning Bisie tin mine in DRC

TEPE
-
0
Alphamin begins commissioning Bisie tin mine in DRC

Africa-focused Alphamin Resources (TSX-V: AFM) has begun commissioning its Bisie tin mine in North Kivu, a remote province in the eastern region of the Democratic Republic of Congo (DRC).

The Mauritius-based miner kicked off construction at Bisie, considered one of the world’s highest-grade known tin deposits, in 2017. At the time, an updated feasibility study projected that the mine could produce 152,300 tonnes of tin over its 12-year life for an initial $126.1 million. It also estimated that Bisie would achieve payback in 17 months.

Commercial production is expected in the second half of the year

Construction of the mine, which is surrounded by dense forest, deeply weathered soils and high rainfall, was completed in the first quarter of 2019.

Alphamin said it remains on track to achieve commercial production in the second half the year­­.

Consumption of the metal increased by 2.5% in 2018, compared to 2017. This year, the International Tin Association (ITA) estimates that global demand will contract by 1%, with a usage forecast of 357,000 tonnes for 2019. The industry group also expects a tin production surplus for the first time since 2013.

Over the longer term, tin demand is expected to continue rising as the metal becomes more integrated into various areas of higher-tech production methods related to high-capacity anode electrode materials. Due to increased demand from electric vehicle makers, global consumption could jump by an additional 60,000 tonnes a year by 2030._Mining.com

South Africa’s firebrand mine unionist is headed for a showdown

TEPE
-
0
South Africa’s firebrand mine unionist is headed for a showdown

One of the most polarizing figures in South African mining, union leader Joseph Mathunjwa, has never hesitated to go head-to-head with powerful CEOs. Now he may have to face down the government.

Mathunjwa’s Association of Mineworkers and Construction Union has upended labor relations in the local mining sector, leading long and crippling strikes as it seized members from a politically connected rival. A relative upstart, the militant union became a household name after a 2012 dispute at Lonmin Plc that culminated in police massacring 34 people at a protest.

AMCU may now face its biggest test yet, after a government official threatened to deregister the union for failing to hold a regular congress and leadership polls

AMCU may now face its biggest test yet, after a government official threatened to deregister the union for failing to hold a regular congress and leadership polls. Mathunjwa has promised to fight the move, which could sharply curb the group’s finances and influence, and insisted it is compliant with regulations.

If a weakened AMCU resulted in fewer prolonged strikes at South African mines, it would be welcome news for producers already struggling with high costs and aging mines. The union was on the back foot even before the deregistration news, after calling off a five-month strike at Sibanye’s gold mines with little to show for it.

For now, though, a dispute with the Labor Department will probably mean more operational disruptions if AMCU members protest against the move to deregister the union. It also ratchets up uncertainty just as the world’s biggest platinum producers are getting ready to negotiate new wage agreements with local labor groups.

“Companies have to decide whether to take AMCU seriously,” said Ross Harvey, a mining analyst at the South African Institute of International Affairs. “If they don’t, then AMCU could unleash chaos and the mines may have to close shafts.”

AMCU is not going down without a fight. While it’s prepared to meet the labor registrar this week, the union has also referred the matter to its legal team. It has already told the official it will hold its congress in September, Mathunjwa said, blaming the latest delay on the recent strike and pointing to an unnamed “political agenda” behind the deregistration move.

“Workers are not stupid,’’ he said. “They wanted a genuine union that can fight for their rights. They wanted a genuine union that can change their lives and make a difference in their lives.’’

AMCU was formally registered as a union in 2001 but rose to prominence after a strike by rock drillers at Lonmin Plc’s Marikana operations in 2012. One of Mathunjwa’s rallying cries has been that the National Union of Mineworkers — the group co-founded by President Cyril Ramaphosa — is too close to both mining companies and South African authorities.

In 2013, AMCU dethroned the NUM as the biggest labor group at the country’s platinum mines and a year later led a five-month strike, the longest ever in the sector.

Marked by violence

The relationship between the two unions has been marked by regular violence, with each blaming the other’s members for shootings and murders. Most recently, at least nine people died during the strike at Sibanye Gold Ltd. that was called off earlier this month.

“It would be a disaster for the platinum industry if AMCU is deregistered”

If AMCU were deregistered, mining companies could move to cancel collective-bargaining arrangements and potentially withdraw its rights to collect union dues, said Brett Abraham, a lawyer at Webber Wentzel specializing in employment law. It wouldn’t prevent AMCU members from continuing to organize collectively and embark on legal strikes, he said.

The union has 60 days to make submissions to Registrar of Labour Relations Lehlohonolo Molefe on why it shouldn’t be deregistered.

It’s unlikely that the authorities will go as far as deregistration, said Albert De Beer, a labor consultant. Still, it’s clear that the union has been weakened by recent setbacks, he said.

“It would be a disaster for the platinum industry if AMCU is deregistered,” said Bernard Swanepoel, a veteran of South African mining who now sits on Impala Platinum Holdings Ltd.’s board. “In my opinion, a ‘cleaned-up’ and well-governed AMCU is the most likely — and best — outcome.”_Bloomberg News

Makomo Resources fails to meet production target

TEPE
-
0
Makomo Resources fails to meet production target

Makomo Resources, one of the country’s biggest coal producers says production in the first quarter of the year remained subdued, with output only reaching half of the company’s target due to the unavailability of key raw materials.

“Our target was between 200 000 tonnes and 250 000 tonnes a month and we did almost 50% of that in the quarter. In fact, it was only the latter part, the last month of the quarter, otherwise January and February we were very low. We did about 30% or so on average for the quarter, which is way below our target,” managing director Raymond Mutokonyi said.

“We faced operational challenges, especially the high cost of production versus the price of that commodity and unavailability of key raw materials like diesel and explosives, which are being imported”.

“So, first quarter was very subdued. We did not do much, but the situation has slightly improved in the second quarter. But we are still having the same challenges. Fuel is a big challenge as it is still unavailable,” Mutokonyi said.

“We are hoping that somehow, the situation can be improved by availing the fuel at the right price as well as forex for key raw materials”.

“All things being equal, we would want to achieve at least 75% of our total capacity, but I’m not sure whether it’s going to be possible because the first quarter has already gone. But judging from the orders that Zesa wants, we should achieve at least 60% or so in the remaining months, provided the raw materials are available,” he said.

Makomo Resources is the largest privately-owned coal producer in Zimbabwe, and it supplies the country’s thermal power stations, industrial and agricultural sectors._NewsDay

Rushwaya faces another court challenge over ZMF presidency

TEPE
-
0
Rushwaya faces another court challenge over ZMF presidency

Henrietta Rushwaya the Zimbabwe Miners Federation (ZMF) president(and her Executive) is facing another court challenge after the Zvishavane-Mberengwa Mining Association (ZMMA) filed an urgent chamber application seeking to bar her from representing the interests ZMF.

This was after she had appealed to the Supreme Court against a recent High Court order which stripped her of the presidency of the small-scale miners’ body.

ZMMA wants an interdict barring her from acting as the ZMF president until finalisation of her appeal by the highest court.

She was elected ZMF president in June last year, but a group of small-scale miners under the ZMMA challenged her election.

In a case filed at the High Court in Bulawayo under case number 1652/18, the miners accused Rushwaya of using “unorthodox” means to take over the ZMF leadership.

Justice Nokuthula Moyo granted the order in favour of ZMMA. Rushwaya, however, appealed the judgment arguing that Justice Moyo erred at law and grossly misdirected herself on the issue of locus standi in failing to find and discounting that the deponents to the appellant’s founding papers were properly before the Court.

ZMMA on April 16 filed an urgent chamber application seeking to bar her from representing the interests of ZMF president until finalisation of her appeal.

In a founding affidavit, Thembinkosi Sibanda, on behalf of ZMMA, filed by their lawyer, Mutuso, Taruvinga and Mhiribidi Attorneys, said they had gathered that Rushwaya was representing ZMF at the just ended Zimbabwe International Trade Fair.

Southern Eye could not immediately verify the veracity of the allegations.

The matter had been set down last week on Thursday with Justice Maxwell Takuva, but was postponed.

“It has come to my knowledge that the respondent, on the 14th instant, officialised the national executive, which was allegedly nominated and appointed on the 14th of June to represent Respondent in the upcoming national events to be held at the ZITF, between April 22 to 27. This national executive is led by Henrietta Rushwaya and Wellington Takavarsha,” said Sibanda.

Justice Moyo, in her ruling said: “The court, being a court of law, cannot embrace a willy-nilly departure from one’s constitutional dictates. Not only is adherence to one’s constitution good for law and order, but it is also a good corporate governance principle.

“The reason why there is a constitution in the first place is so that the association or organisation operates within the confines of good order to avoid chaos.”

She said the court could not encourage organisations to breach their own constitutions and do as they wished, and thus the court could not lend a hand to allow an illegality to prevail._NewsDay

RioZim records net loss of US$2,3m

TEPE
-
0
RioZim records net loss of US$2,3m

One of Zimbabwe’s leading mining group, RioZim reported a net loss of USD2,3 million in the year ended December 2018 from a net of USD8,1 million the previous year due to a 13 percent decline in gold output.

The miner’s gold production dipped to 1,792 tonnes from the previous year’s 2,071 tonnes output.

Last year the company lost production time after it involuntarily shut down all mining operations in the fourth quarter of the year citing inadequate foreign currency allocations by the central bank.

“As a result of these challenges, a whole two months production was lost albeit the fact that the company continued to meet all of its fixed costs and thus driving the business down a path of operating losses,” he said.

Revenue decreased by 15% to US$75,4 million in 2018 from US$88,9 million in the prior year due to low production volumes and inability to complete planned projects which would have sustained and increased production.

The company’s Cam and Motor Mine, which recorded a decline in recoveries, closed the year with a production figure of 758kg indicating a 22% reduction from the previous year’s production.

In the full year, Renco Mine south-east of the country produced 591kg, a 22% decline from prior year due to underperformance in the milling section.

Riozim’s Dalny Mine produced 442kg, an 8% increase from 2017, though it produced lower grades of 2,57g/t against 2,65g/t as the mine could not access the rich ground ore.

The group’s associate Murowa Diamonds posted a profit of US$10 million as diamond production improved to 740 244 carats against 732 045 carats produced in prior year._NewsDay

1...696697698...740Page 697 of 740