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14 killed in Rwanda tin mine

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Fourteen miners were killed in an eastern Rwandan tin mine after a hill collapsed on them after heavy rains, officials said on Monday.

“Because of recent rainfall in the area, part of the hill nearby collapsed and 14 miners who were getting ready for work were buried by land,” Fred Mufuruke, governor of Eastern province, said.

The mining site is owned by the Rwandan business of Britain’s Piran Resources, John Kanyangira, the director of mining inspection at Rwanda Mines, Petroleum and Gas Board (RBM), said.

It was an open mining site and a nearby hill collapsed, burying seven men and seven women, he told Reuters.

Kanyangira said 81 people died last year in mining accidents.

He said Rwanda’s mining industry, quarrying excluded, employs 43,000 people.

Piran Resources has a 25-year mining license in eastern Rwanda for two concessions.

Piran Resources is part of Pella Resources, an Africa-focused natural resource and energy group.

Last month, at another mining site in the southern part of Rwanda, five miners were trapped underground when the site collapsed. Soldiers and member of the public dug them out alive after nearly two days.

Small-scale mining in Rwanda’s hilly landscape has led to landslides and mine collapses.

Earnings from Rwanda’s mineral exports more than doubled to $373-million in 2017 up from $166-million a year before.

The government says revenues are expected to climb to $600 million in this year.

Reuters

Gold slipped

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Gold slipped to a more than two-week low yesterday as a firm dollar and more risk appetite outweighed support coming from expectations of a pause in the US interest rate hike cycle. Spot gold was 0,2 percent lower at $1,279 per ounce by 1123 GMT, having hit its lowest since Jan. 4 earlier in the session of $1,277.11.

US gold futures were down 0,3 percent at $1,278.20 per ounce.

“Some calm has been restored in the equities market . . . We are seeing a bit of withdrawal of interest from the gold market,” said Macquarie commodity strategist Matthew Turner.

World markets showed some relief from Chinese economic data that were in line with expectations and offered some bright spots, although concerns about Prime Minister Theresa May’s plans for Brexit prompted some caution.

US markets were closed yesterday for a holiday.

“Gold could already find itself in increased demand today if the UK prime minister’s ‘Plan B’ for Brexit turns out to contain nothing new and the chaos thus continues,” Commerzbank analysts wrote.

A stronger dollar, near a two-week high, weighed on gold, which rose more than 10 percent since mid-August mainly on the back of equity market turmoil and a weak dollar.

ActivTrades chief analyst Carlo Alberto De Casa said a breakout through $1,277 for gold could lead the price down to $1,260.

 

Reuters.

Gold production under threat from forex shortages

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THE country’s gold sector is in a precarious situation after it emerged that the Reserve Bank of Zimbabwe (RBZ) has not been paying primary gold producers for the last three months, NewsDay has established.

The current state of affairs has resulted in gold suppliers threatening to cut off their supplies to large-scale gold producers as they were now also owed large sums of money.

Primary gold producers get 55% of their delivery in foreign currency, with the rest paid in bond notes (a local fiat currency).

Industry sources told this paper that primary gold producers have been involved in marathon meetings with the central bank to find a lasting solution to the biting problem.

Chamber of Mines chief executive Isaac Kwesu confirmed the delays and indicated that the miners were engaging the RBZ to resolve the problem.

“Yes, there have been these delays and we are engaging with the RBZ so that they expedite the process,” he said.

“The problem we have is that our suppliers now demand payment in US dollars and yet we get 50% in forex and the other 50% in RTGS. We expect our authorities to avert the situation because once payment is delayed or stopped, the production cycle is affected”.

Suppliers of critical raw materials who spoke to NewsDay said they had not received payment for their supply from gold producers for almost two months, as such they were reeling under serious operational challenges.

“We are not getting any payments for supplying consumables.We supply drilling consumables, which are used to blast the stones underground. We also supply drill steel, drill bits and jack hammers, but it’s now almost three months without getting paid. We are grounded,” said one supplier on condition of anonymity.

Efforts to get a comment from Fidelity Printers and Refineries (FPR), the central bank’s subsidiary, which is licensed to buy gold from large-scale producers, small-scale producers and holders of gold buying permits did not yield any results.

In 2018, gold deliveries to FPR hit a record 33,2 tonnes, up from 24,8 tonnes recorded in the previous year, which was mainly driven by small-scale miners.

Small-scale miners contributed 21,7 tonnes, while primary producers accounted for the remaining 11,5 tonnes last year.

Last year, Rio Zim closed three of its gold mines citing inadequate allocation of foreign currency, which then stood at 30%. It then resulted in the central bank increasing allocation to 55%.

NewsDay

Implats Mines unaffected by protests

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MINES in Zimbabwe were unaffected by the #Shutdown protest action that rocked Zimbabwe and disrupted economic activity last week, said Business Report which cited the Amplats’ spokesman, Johan Theron.

“Demonstrations were mostly centred around the urban areas, which impacted some of our head office workers in Harare,” said Theron. “Our mining operations were not directly impacted by the demonstrations.”

Implats controls Zimplats, while it jointly owns Mimosa together with Sibanye Stillwater, making it the biggest platinum investor in the troubled southern African country. Anglo Platinum is the other platinum group metals producer as it controls the Unki mine, which is set to commission a smelter plant in the next few weeks, said Business Report.

South African investors have largely maintained their investments in Zimbabwe, despite currency woes and rising operating costs as local inflation spirals out of hand.

Implats said its mining operations had not been affected by the strike action, although its head office in Harare was affected by the #Shutdown demonstrations over a massive hike in fuel prices. MX

Mining industry focuses on automated systems

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It is not a secret that the mining industry has historically been extremely conservative, and it has always been difficult to bring miners to experiment in the production, which has been developing for centuries. But the 21st century dictates its terms and to stay afloat, traditional businesses need radical changes. A few years ago, world mining leaders launched a large-scale process of updating their own fleet of equipment. Acumen Research and Consulting (ARC) estimates that the global mining equipment market will reach $ 285.5 billion worldwide by 2026. At the same time, the main drivers of the growth will be automated technologies and so-called “smart” solutions for the production.

Already now the most advanced “miners” perform a number of technological processes, such as drilling and transportation of raw materials, with the use of robotics, while in 2019 the majority of industry players may start using new technologies on an industrial scale. Analysts of Technavio predict the growth of the robotics market in the mining industry by an average of 27.01% by 2022.The most advanced “miners” perform a number of technological processes, such as drilling and transportation of raw materials, with the use of robotics.

On the very eve of the New Year, transnational mining and metallurgical company Rio Tinto, which was one of the first to build its own “mine of the future”, officially announced the launch of the world’s first AutoHaul autonomous long-distance railway network for the transportation of iron ore to the ports of the company in the Pilbara Region in Western Australia. The company’s ten-year work on the creation of the largest railway robot should lead to an increase in the ore production in Pilbara from 340 million to 360 million tons. At the same time, in the other hemisphere, Swedish technology companies, including Ericsson, Scania, Eprioc and SKF, are joining together in the Swedish Mining Automation Group (SMAG) and are beginning to promote their own products and technologies for mining companies. Sweden is currently not among the top mining countries, and therefore SMAG started its cooperation with Canadian companies that hope in the short term to upgrade their own production and to start using the innovative technology with the help of the concern. In 2019, manufacturers of industrial robotics will increasingly resort to international cooperation to expand the market and introduce new technological solutions in mining.

At the same time, the leading players in the robotics market should be ready for the increased competition and emergence of new companies that have not previously worked in the mining sector. A few years ago, there was practically no alternative in the market of unmanned trucks, such companies as Caterpillar and Komatsu fully met the needs of miners in autonomous transport. In 2018, the Swedish automaker Volvo signed an agreement with the Norwegian mining company Brønnøy Kalk, according to which Volvo unmanned trucks will carry limestone on a three-mile route between the mine and the port. It is planned that in 2019 the system will operate to the full extent.

In Morocco, a TEREX-based mining truck with robotic control developed by the Russian company VIST Robotics (part of Zyfra Group) has passed successful trials at a special test site. In Russia, autonomous trucks BelAZ are already used in the quarry of the Siberian coal and energy company in Khakassia. At the moment, the first robot dump truck has been assembled and successfully passed along the route of the quarry in an offline mode, while the process of assembling and equipping the second dump truck, as well as building the infrastructure necessary for the operation of autonomous machines is being carried out. In Kazakhstan, VIST Robotics together with the Nazarbayev University started to work on the truck tractor based on the KAMAZ NEO truck.

In addition to unmanned trucks, the company is testing a robotic drilling system. It is planned that the developed product will replace a person in particularly dangerous production conditions, while the cost of drilling wells will remain at the same level or even decrease. The company expects to see the first test results in the second quarter of 2019.

Companies engaged in the development of unmanned aerial vehicles can also start to increase production, as mining companies are finding new and new applications for drones. Drones are most actively used for the exploration and testing of equipment in hard-to-reach places. Drones make 3D maps of the fields, which are then analyzed using Big Data technologies to assess the potential of the mine. Unmanned aerial vehicles help to avoid emergency situations in the quarries, tracking the process of explosive operations and traffic.

Australian mining giant BHP Billiton, known for its active introduction of drones into production, announced the beginning of using drones in sea freight in the experimental mode. The company intends to use drones to check the status of the holds of vessels before flights. Unmanned vehicles will replace the person and will independently record meter readings, look for the damage that cannot be seen with the naked eye and transmit the image in the 4K format to the operator.The expansion of the use of robotic and automated technologies in the mining industry is made possible by reducing the cost of innovative products.

The expansion of the use of robotic and automated technologies in the mining industry is made possible by reducing the cost of innovative products. According to the McKinsey report, over the past 30 years, the average price of a robot has fallen by half in real terms, and even more in relation to labor costs. Analysts believe that demand from emerging economies encourages robot manufacturers to switch to cheaper regions, and robotics will continue to fall in price. Mines, which will use only robots, which will be controlled by robots, are no longer a fantasy. In 2019, one of the first of such projects may be implemented. Resolute Mining announced that its gold mine Syama in Mali will be the first in the world to become fully autonomous. A fiber-optic network will be created throughout the mine, ensuring constant contact of autonomous tractors, robot drillers and ground-based control centers.

The report of the consulting company BDO Australia says that by 2020, more than 50% of miners around the world will be replaced by robots. Such forecasts sound very encouraging for manufacturers of industrial robotics and at the same time impose a great responsibility on the companies that will need to develop more advanced technical solutions to fully replace people. Manufacturers of robotic equipment also have to pay special attention to the protection of devices after massive virus attacks on industrial facilities in 2018. BDO Australia analysts believe that by 2020, activist hackers will launch at least five global cyberattacks with permanent denial of service (PDO) at mines through connected devices.

Not less and perhaps more significant obstacle to the final transition to the use of robotics in mining is still the problem of employment of workers whose work is being performed by the machine. Governments cannot allow unemployment to rise, even though the costs of production automation have been reduced. There is a difficult situation, as the contradictions between effective business and social responsibility in the coming year will only grow. Only a joint effort of states, mining companies and manufacturers of robotics will help to find a way that will suit all players in the industry.

mining.com

Negotiations for return to London Bullion Market commence

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THE country is targeting to upscale its engagement for re-accreditation into the London Bullion Market this year as Government seeks to optimise earnings from gold through participation on a global market.

Last year, Zimbabwe had a strong performance in gold output at a record 33,2 tonnes that raked in over $1 billion dollars in export receipts.

According to ZBCtv, Mines and Mining Development Deputy Minister Polite Kambamura said rejoining the London Bullion Market Association (LBMA) opens the country’s yellow metal to secure a market that offers competitive prices and protection against price movements.

Discussions to rejoin the LBMA have been on the agenda for the last five years, with experts contending that this would enhance the country’s ability to sell its mineral to global buyers.

Zimbabwe dropped out of the association in 2008 after production of the yellow metal plummeted to 3,5 tonnes, which is far less than the stipulated 10 tonnes.

Now with a projected output of 40 tonnes this year, the Ministry of Mines and Mining Development believes it has a strong case to seal its readmission into the bullion association this year.

One of the prerequisites for re-admission on the world gold market was for Zimbabwe to refine 10 tonnes of gold for three consecutive years, a requirement fulfilled in 2015 when production hit 21 tonnes.

At present, Zimbabwe is selling its stock to Rand Refiners of South Africa where a levy of 0,3 percent is effected on the total earnings.

It is widely believed that the LBMA, which was established in 1987, sets the benchmark for gold and silver metal bars across the world.

In particular, the LBMA Good Delivery List is used by many precious metals exchanges around the world to identify refiners whose gold and silver bars are accepted in their own markets. — ZBCtv/Business Chronicle

ZCDC expects to produce 4.1 million carats in 2019

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The Chief Executive Officer of state-owned Zimbabwe Consolidated Diamond Company, Moris Mpofu, revealed that the company plans to invest $32 million in exploration projects this year.

Such projects involve reopening mines in Chiadzwa, home to the Marange diamond fields, and other parts of the country, as well as launching new operations in the Save River floor and the Odzi river.

According to Mpofu, the final goal is to grow annual output to 4.1 million carats in 2019 and to 10 million carats by 2025. Last year, ZCDC produced 2.8 million carats, with sales adding up to $47 million.

The diamond miner’s CEO also said that he expects investment and strategic partnerships to increase in the next 12 months, given that the recent changes to Zimbabwe’s rules around diamond mining give ZCDC, Murowa Diamonds – a unit of RioZim- and two other companies to be approved by Government exclusive rights to undertake exploration and mining of the precious gems across the country.

Giant Russian diamond miner Alrosa to launch in Zimbabwe

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GIANT Russian diamond producer, ALROSA, has announced plans to launch mining operations in Zimbabwe.

The news was announced during Zimbabwe’s President, Emmerson Mnangagwa’s trip to Moscow.

“Today we see opportunities for a new stage of our partnership. We are ready to develop new joint projects for diamond exploration and extraction,” said Sergey Ivanov, CEO of ALROSA.

“We also seek to support Zimbabwe in the development of its diamond-mining industry in line with industry’s best practices.

“We are happy to share with our partners a wealth of experience in the field of mineral exploration and diamond mining, including the industry self-regulation and responsible business.”

Namibia’s Mines and Energy Deputy Minister highlights women’s role in mining. The decision follows negotiations between the Russian company and Zimbabwean officials, which took place in 2018.

“We have opened a small window for foreign countries to participate in our industry,” said President Mnangagwa at a press conference, reported Africa News.

“We believe we can participate meaningfully in the diamond industry. We are ready to share all our technologies and know-how with our colleagues, so that Zimbabwe can establish itself in the global diamond mining market,” commented Sergei Ivanov, President of ALROSA, at the press conference.

Kazakhstan companies keen on Zim investment

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REPORTS say over 50 Kazakhstan companies have expressed keen interest in partnering Zimbabwean counterparts in various business and economic development spheres.

The companies’ representatives met President Mnangagwa at his delegation at a Zimbabwe Kazakhstan Business Forum in Astana today (Sunday).

The Kazakhstan business people were drawn from mining industry, machine building, power generation, agriculture, pharmaceuticals, aerospace, finance and export services, transport and logistics, road construction, exploration and refining of minerals and chemicals.

Kazakhstan’s Industry and Infrastructure Development Minister, Mr Zhennis Kassymbek outlined the role of his country as a get-way for trade to Europe via Russia and how his country is ready to receive partners from Zimbabwe in the mining, machinery, agriculture and energy sectors.

He said in Zimbabwe, Kazakhstan has an important partner for trade not only for that country but the SADC region as a whole.

Several companies urged Zimbabwean business people to come forward and forge linkages with Kazakhstan without further waste of time.

The Zimbabwean government announced its intention to open an embassy in Astana to facilitate the business movements and transactions between the two countries as Zimbabwe opens a new frontier of economic diplomacy in Eurasia.

Zimbabwe’s Acting Minister of Foreign Affairs, Professor Mthuli Ncube said there is need for a Zimbabwe Kazakhstan Joint Commission to coordinate cooperation between Harare and Astana.

On the mining side, Minister Winston Chitando explained Zimbabwe’s intention to start stainless steel manufacturing and new opportunities emerging in the lithium and nickel sectors.

Miners request at least 80% forex

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MINE workers and the Chamber of Mines have agreed to approach the government and table a request for the sector to get at least 80% of their foreign currency earnings, businessdigest has learnt.

This comes at a time mine workers are demanding to be paid in foreign currency pointing out that their salaries in Real-Time Gross Settlement and bond notes have been seriously eroded amid price hikes of basic commodities.

Associated Mine Workers’ Union of Zimbabwe president Tinago Ruzive told businessdigest on Wednesday that they had agreed with the Chamber of Mines to set up a meeting with Mines minister Winston Chitando to discuss the issue of forex retention.

“When we met the Chamber we agreed that we should team up and meet the minister and demand that the sector retains 80% of their forex earnings,” Ruzive said. “If the government agrees to this, it means us as mine workers can be paid in forex.”

The Chamber of Mines has told mine workers that employers will only pay them in forex if they can get forex retention of at least 80%.

The issue of forex retention has been a thorny issue, particularly in the gold mining sector. Last year, Riozim closed three of its gold mines citing the inadequate allocation of foreign currency, which then stood at 30%. It resulted in the Reserve Bank of Zimbabwe increasing the allocation to 55%.

Many mining companies have been struggling to remain operational due to the low foreign currency retention threshold set by the central bank.

The Dimension Stone Producers’ Association has also called on the Reserve Bank of Zimbabwe to increase the foreign currency retention threshold to ensure viability. The association has been calling on the central bank to increase its forex retention from the current 50% to at least 85%.

Some mining companies have decided to pay a certain percentage of their employees’ salary in forex in a bid to placate restive workers.

Zim Independent

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