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ZCDC produces over 80pc of projected target

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ZCDC produces over 80pc of projected target

STATE-owned diamond mining unit, Zimbabwe Consolidated Diamond Company (ZCDC) says it has produced over 80 percent of the projected 3,5 million carats for the year 2018.

The diamond mining industry had projected diamond output of 3,5 million carats this year compared to 1,6 million carats in 2017. ZCDC extracted 2,4 million carats between January and October 2018, far higher than the 1,8 million carats achieved last year.

ZCDC chief executive officer, Dr Morris Mpofu, told Business Chronicle that the figure had by last week increased to 2,7 million carats.

“ZCDC has produced more than 80 percent of the projected 3,5 million carats. So far output stands at 2,7 million carats and we are not stopping there. We are expecting that by the end of the year we would have reached 2,8 million carats or even more,” he said.

Dr Mpofu said ZCDC’s performance was an increase of 54 percent from 1,6 million carats produced by the company last year and 168 percent from 895 000 carats produced over the same period in 2016.

The firm’s balance sheet has grown from US$45 million in 2016 to more than US$250 million by September 2018.

ZCDC’s good performance came despite numerous challenges particularly in the last half of 2018 as fuel and foreign currency shortages including price hikes took a toll on the national economy.

Dr Mpofu said to circumvent energy challenges ZCDC was setting up a solar power plant in Marange for its operations. The diamond miner was tendering for pre-feasibility and its initial assessment was that the solar plant be between 15MW and cost US$24 million. Surrounding schools and clinics will benefit from the solar power plant.

The company has already powered a secondary school and a clinic using solar energy as it moves towards sustainable mining practices.

Dr Mpofu said ZCDC plans to invest US$20 million in the establishment of a state-of-the-art diamond value management centre to enhance capacity in cleaning, sorting, valuation, sales and security.

“This will be a high-tech facility that is expected to satisfy all international best practices of effective and efficient diamond value management,” he said.

“The diamond value management centre will feature technology such as the fully-integrated sort house, which will see the use of hands-free technology to sort diamonds using advanced machines that sort diamonds according to colour, clarity, size and shape or possible cut. The technology will ensure operational efficiency in the downstream processes.”

ZCDC has also started exploring possible partnerships with other international diamond companies that have well-developed value management technologies. — @queentauruszw

 

source: The Chronicle

Gold miners optimistic for 2019 production

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Gold miners optimistic for 2019 production

GOLD miners have said they are optimistic that they will surpass the 2019 gold production target of 34 tonnes and called on Government to continue playing its supportive role in the mining sector.

Government recently announced a 34 tonne target of gold production next year, up from 2018 target of 30 tonnes.

The sector has already surpassed this year’s target by more than two tonnes owing to empowerment of small scale miners and other supporting schemes like loan facilities for miners by Government.

Speaking during a Young Miners Federation (YMF) annual convention in Gweru last Thursday, Zimbabwe Miners Federation (ZMF) president, Ms Henrietta Rushwaya, said the mining sector needed maximum support from Government to deliver desired output.

“In 2018, we are happy we produced more gold than targeted and this was necessitated by Government support. We are very much grateful to the Government for the support and that should be carried over to 2019. If we continue getting the same support, then nothing is going to stop us from beating the 34 tonnes target,” said Ms Rushwaya.

She called on Government to incorporate more youths, women and the disabled in the mining programmes.

“Youths play a pivotal role in the achievement of vision 2030 and thus, they should be included in most of the Government mining programmes. The same should be done by the young miners themselves, they should take mining seriously. There is need for youth to take mining seriously as it is source of livelihood for now,” said Ms Rushwaya.

She applauded Government for erecting gold processing plants across the country, a move she said will go a long way in curbing leakages of the precious mineral as well as corruption.

Speaking at the same function, Fidelity Printers and Refiners’ mining investment advisor Mr William Gambiza said Government was ready to support the mining sector so that they reach a higher target.

“As Fidelity, we have rolled out some loan facilities where miners can be capacitated so that we increase gold production.

“We are, however, worried by the low uptake of the fund by youths and women. We, therefore, urge them to utilise the fund as it is for them,” said Mr Gambiza.

Out of the $140 million gold fund, youths only utilised about $1,4 million. Fidelity has, however, condemned some miners who are in the habit of converting the loan facility for personal use saying they should stop doing so.

“We have resorted to not wiring the money to the miners but to the supplier of services as some miners were now blowing the money on cars and other luxuries instead of investing in the mining business. We urge the miners to use the money wisely as it goes a long way in earning the country more foreign currency,” he said.

YMF Co-Founder Mr Payne Kupfuwa said youths should take mining seriously as they played a critical role in achieving vision 2030 of a middle income economy.

“We are very grateful to the Government for the support especially for empowering youths in mining. Government empowered the youths and it shows that they are serious about us. Now let us not disappoint the same Government and play our role in achieving the 2019 target as well as achieving the vision 2030,” he said.

The convention was held under the theme, “Building smart partnerships for young miners” and was attended by more than 100 delegates drawn from all the country’s.

source: The Chronicle

Gold gains momentum

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Gold gains momentum

Gold prices in India regained some momentum today, tracking higher global rates and fresh buying by jewellers. In global markets, gold prices rose close to six-month highs on safe-haven demand. Concerns about a possible prolonged US government shutdown and global growth weighed on the dollar and equity markets, boosting the appeal of assets viewed as safer, such as gold. Spot gold rose 0,4 percent at $1,260.64 per ounce.

Some analysts remain positive on gold for 2019.

“Gold is expected to play a key role in 2019 as a safe haven given the fears of further falls in stock markets and expectation for a more dovish US Federal Reserve,” said ActivTrades chief analyst Carlo Alberto De Casa.

Lower interest rates reduce the opportunity cost of holding bullion and weigh on the dollar.

Gold, which is seen as safe investment during political and financial uncertainty, has risen about 9 percent from a 19-month low of $1,159.96 in mid-August. Gold has support at around $1,250, say analysts. — Livemint and agencies.

Hwange reconstruction delays

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Hwange reconstruction delays

The revival of Hwange Colliery Company Limited (HCCL), Zimbabwe’s largest coal
producer, seems to be taking longer than anticipated.

The company, which has recorded annual losses in the past few years, has seen successive boards
coming up with revival strategies, but not even one has been successful.

After being frustrated by the slow pace of revival, and fears that the company was heading for
liquidation, government recently placed HCCL under reconstruction — a situation which has brought
more confusion to the once thriving firm.

Andrew Lawson, Hwange’s former scheme of arrangement chairperson, risks facing civil and criminal
liability after he opposed government’s unilateral decision to place the coal miner under judicial
management without proper consultation.

Lawson recently came out guns blazing, vowing to protect creditors’ interests through an opposition of
government’s application to put the struggling miner under administration.

However, Hwange’s appointed judicial managers Bekithemba Moyo, Mutsa Remba and Munashe
Shava shot back and said Lawson has no capacity to take any action as the reconstruction order has
overtaken the scheme.

“Lawson presided as chairman of scheme meetings held on April 26, 2017, and his role was
discharged upon presentation of his report to the High Court on May 3, 2017 and registration of the
scheme in terms of Section 192 (3) of the Companies Act thereafter,” the trio said.

“He has no capacity to take any further action thereafter and all he now seeks to do is unlawful.
Confirmation of the Reconstruction Order is a statutory process and in terms of the act Lawson sought
to oppose this in a separate capacity, which in any event has nothing to do with his obsolete role as
scheme chairperson.”

Government through a statutory instrument placed Hwange under administration in October in an
effort to revive the struggling coal mine — it has since approached the High Court seeking to confirm
the reconstruction order of the company.

Lawson said he is opposing the reconstruction as he was not consulted on the decision and he will
hold a meeting with creditors to determine a way forward.

He has in the past worked tirelessly to revive the coal miner, including ensuring the miner has been
paying monthly instalments to creditors since December 2017.

Lawson vowed the scheme will continue until $70 million arrears are paid in full. The miner owes
various creditors $352 million.

A weak management system coupled with alleged incompetence, sabotage and abuse of company
funds have seen Hwange defaulting on the scheme of arrangement, plunging into $7,6 million fresh
arrears.

The whole arrears sparked government, which owns 42 percent of the entity, to place the struggling
miner under reconstruction — a decision which irked board members, workers and other shareholders
who were not consulted.

This was through a statutory instrument which states that in terms of the Reconstruction of State
Indebted and Insolvent Entities Act, the responsible minister — Ziyambi Ziyambi has powers to issue
a reconstruction order if it appears to him that by reason of fraud or mismanagement, a State-indebted
company is unlikely to be able to make any repayment of a credit made to it from public funds.

The whole confusion comes as British businessman Nicholas van Hoogstraten, who holds a 31
percent shareholding at Hwange, also said he is going to challenge the reconstruction of the company.

Workers have said they will also go to the courts seeking an order that places the company under
judicial management instead of reconstruction.

Lawson said the High Court order of sanctioning a scheme of arrangement between the company and
its creditors is in full force.

“On the strength of the original court order sanctioning the scheme and in order to protect creditors’
interests, and in my capacity as the trustee of the scheme, I have filed an opposition to the Minister’s
application,” Lawson said.

“While the legal process in connection with the reconstruction is ongoing, I shall soon convene a
creditors meeting to map the way forward in the mutual interests of both the company and creditors.”

Hwange has since been suspended from trading on the Zimbabwe Stock Exchange (ZSE) and the
Johannesburg Stock Exchange (JSE).

Hwange has largely been operating in the red. The company’s 2018 half-year financials reflect a net
loss of $23 million.

Hwange has been a clear example of how parastatals that are riddled with mismanagement,
corruption and political interference, contributing little revenue for the country but debts to an already
ailing economy.

Van Hoogstraten confirmed the corruption, saying as a shareholder of the company, he was never
consulted about the reconstruction of the company, or many other developments that took place.

“They (government) are trying to cover recent corruption that has been going on there and you can
never imagine the kind of corruption that was going on there.

“…I cannot quantify the corruption because some of it was being done through tenders of service.

“We reported about externalisation of about $10 million of forex monthly by a Chinese company that
was supposedly in a joint venture with Hwange for more than three years now but the Reserve Bank
of Zimbabwe has since not done anything about it.”

Van Hoogstraten said he had put in place both short and mid-term measures to protect his interests,
saying that he is litigating against the reconstruction of Hwange.

The coal miner’s woes keep on pilling up as the appointed lead administrator Moyo, who took over
operations said he is yet to sign a contract.

He told Parliament that he was acting on the verbal agreement he has with Mines minister Winston
Chitando and the gazette instruction.

 

source: DailyNews Live

How to get a gold buying permit in Zimbabwe

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How to get a gold buying permit in Zimbabwe

CRITERIA FOR ISSUANCE OF GOLD BUYING PERMITS

FIDELITY GOLD REFINERY (PRIVATE) LIMITED

The criteria below must be satisfied before issuance of such gold buying agency permit:

1. Non-Custom Millers or Elution Plant Owners

  • Provide a survey report on the area of gold buying operations and prospective suppliers.
  • Declaration of financial capacity to buy gold and projection of monthly deliveries.
  • Valid Tax Clearance Certificate.
  • Those operating as Sole Traders to submit a copy of their National ID Document, Police Clearance, recent passport size photos for the Main Permit Holder and the respective Sub-Agents.
  • Those operating as Registered Companies to submit full company documentation (copy of Certificate of Incorporation, copy of Memorandum and Articles of Association, copies of forms CR6, CR14, CR5, CR2, copies of National ID Documents of Directors and Shareholders, recent passport photos and Police Clearance of Directors, Shareholders and Sub-Agents).

2. Custom Millers and Elution Plant Owners

  • Current licence for the custom milling plant and/or elution plant issued by the Ministry of Mines and Mining Development.
  • Declaration of source of funds.
  • Valid Tax Clearance Certificate.
  • Those operating as Sole Traders to submit a copy of their National ID Document, Police Clearance, recent passport size photos for the Main Permit Holder and the respective Sub-Agents.
  • Those operating as Registered Companies to submit full company documentation (copy of Certificate of Incorporation, copy of Memorandum and Articles of Association, copies of forms CR6, CR14, CR5, CR2, copies of National ID Documents of Directors and Shareholders, recent passport photos and Police Clearance of Directors, Shareholders and Sub-Agents).

4. Gold Buying Permit Fees

  • USD 2,500.00 yearly.
  • USD 625.00 quarterly.

N.B. All Custom Millers are Fidelity Gold Refinery’s gold buying agents in terms of Section 3 of SI 178 of 2005.

For more information and clarity, please contact Fidelity Gold and Refinery (FGR) on the details below

No. 1 George Drive, Msasa, Harare
Phone: +263 242-486670, +263 242-486694, +263 242-487131, +263 242-447810-5
Email: [email protected]

TSP advocates for formalisation of mining

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TSP advocates for formalisation of mining

GOLD panning has been a major source of livelihood for thousands of artisanal miners who trekked to numerous mineral rich areas across the country. Notwithstanding hardships faced by artisanal miners, there have been some that were lucky to strike it rich at once.

Others were not so lucky. Many died as they tried to get to the rich metal, equipped with only a pick and shovel, minus the protective clothing. But this did not deter their peers who still go down precarious mine shafts in search of the elusive metal. Things are made worse as the Environment Management Authority (EMA) is always on the miners’ throats, accusing them of indiscriminately harming the environment. But despite all this, Government has acknowledged the significant contributions by artisanal miners to the fiscus. As a result, it is seized with a process to regularise their mining operations.

The registration will enable them to mine sustainably and channel their gold to the formal market. It is estimated that more than 15 tonnes of gold, valued at over $400 million, was smuggled out of Zimbabwe between 2002 and 2007. In 2014, reports say the police intercepted more than 20kgs of gold being smuggled out of the country. About 180kgs were intercepted from illegal panning sites. It was on the back of these developments that Government agreed to decriminalise activities of artisanal gold miners.

And the country began to see a significant increase in their contribution as gold started flowing through formal channels.

In the first half of 2018, cumulative gold output stood at 17t, valued at US$715 million. The Transitional Stabilisation Programme (TSP) acknowledges that the increase in gold output was boosted by increased production from the small-scale and artisanal miners who continue to benefit from gold facilities made available by Fidelity Printers and Refiners under the Gold Development Initiative launched in October 2016.

“This saw introduction of the Gold Development Facility, which initially targeted support to small-scale miners who are now contributing around 60 percent of all the gold that is being delivered to Fidelity Printers and Refiners. The Facility is being extended to also benefit large scale producers.” reads the TSP.

The Programme states that the capacitation of small scale miners through access to equipment for hire and affordable credit lines will see an increase in their contribution grow further.

“The thrust of the Transitional Stabilisation Programme will be on further improvements towards artisanal formalisation and enhanced funding support to drive production volumes, also embracing interventions to reduce environmental, social and health impact challenges that arise in artisanal and small scale mining operations. Furthermore, to address the problems of small scale miners, Government will also focus on the provision of extension services, concentrating on establishing accurate geological and survey information, and training of small scale miners on the application of proper mining methods,” the TSP says.

But the question remains, will small scale miners appreciate such efforts and stop selling their gold on the black market for the benefit of the economy?

Small scale miners say they definitely can increase annual gold production if they have the requisite technology and working capital to improve production efficiencies. Zimbabwe Miners Federation president Ms Henrietta Rushwaya has hailed the $150 million facility availed by Fidelity Printers to capacitate small-scale miners. Although the uptake for the facility has been low, she said it would help most miners who have been struggling to increase production and formalise their operations.

“We will continue to work together and make sure small-scale miners are formally registered so that when the Mines and Minerals Law, being amended is complete, we become formally recognised as miners. If we form groups and approach Government, we can access those areas that had been closed to us before. In line with Government’s 2030 vision, we expect to grow to become medium scale-miners,” she said.

If they access the facility, small-scale miners will be obliged to meet Government halfway and sell their gold to Fidelity Printers and Refiners. Government on its part has a bigger role to play by making sure that the facility is properly managed and miners in every part of the country equally benefit from it. It cannot concentrate on a few mining towns and neglect numerous other areas where gold mining is taking place. More than that, there has to be a system in place to ensure that those who benefited from the facility sell all their gold formally. This should be the case considering that Government has gone the extra mile to relax taxation and fee structure, which were previously “too steep”.

EMA recently came up with new mining guidelines that sought to cut down on the processes involved in the application of Environmental Impact Assessments (EIAs) and reduce the costs for small-scale and artisanal miners. The new guidelines sought to eliminate fees charged by consultants to process EIAs. The consultation fees could be anything between $1 500 and $3 000 depending, on the consultant used.

The cut down resulted in the reduction of EIA fees to $253, which many small miners can now afford. With commitment from both small-scale miners and Government, the gold sector can become more organised with an efficient value chain that will drive the country’s economic recovery.

source: The ManicaPost

Two dump trucks of diamond looted

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Two dump trucks of diamond looted

DETECTIVES in Mutare have launched an investigation into an armed robbery case in which 10 criminals allegedly bulldozed their way into the Chiadzwa diamond fields and looted two dump trucks of diamond ore before vanishing into the darkness.

The diamond ore theft occurred last Sunday, around 1am.

The criminals, suspected to be highly trained and co-ordinated, allegedly rounded up and disarmed unsuspecting Zimbabwe Consolidated Diamond Company (ZCDC) security guards on duty.

They allegedly assaulted them before force marching one of them to what is known as “the RBZ plant” where the diamond ore was stored.

Manicaland police spokesperson Inspector Tavhiringwa Kakohwa confirmed the incident, but refused to discuss the details with the press.

“Investigations are in progress and the suspects are still on the run. I cannot comment now because I do not have full details of the alleged incident,” he said.

However, police sources privy to the investigations said the value of the stolen diamond ore was still being quantified.

They said on December 16, at around 1am, a group of suspected illegal diamond panners proceeded to the ZCDC Portal A, RBZ area 1, and approached the security guard on duty.

“They apprehended, assaulted and force marched him to the RBZ plant where diamond ore was stored.

“On their way to the plant, the group came across two other dog handlers and ordered them to lie on the ground facing upwards. They asked for directions to the diamond ore. The dog handlers informed them that the whole area had diamond ore. That is when another group of diamond panners approached them,” said the source.

“Another security guard who was on duty patrolling the area armed with a short gun riffle, spotted the accused persons and approached them. He was, however, apprehended, disarmed and ordered to lie down alongside the other two dog handlers”.

“Four criminals were left guarding the captive security guards while the other criminals proceeded to RBZ plant,” added the source.

The source said the robbers found two dump truck operators who were resting, and ordered them to reveal where the diamond ore was stored.

“The operators showed them a heap of diamond ore and the panners started loading it into some sacks. The group then left towards the eastern direction.

They returned the fire arm that they had confiscated from one of the guards,” said the source. The ZCDC guards later informed Dingiswayo Jeremiah Gumbo, who was the security officer on duty about the robbery.

A report was made at ZRP Marange. Detectives from Mutare Central attended the scene.

source: The ManicaPost

Mnangagwa to commission platinum processing plant

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Mnangagwa to commission platinum processing plant

SHURUGWI-based Anglo-American Platinum Miners, Unki Mine’s $62 million platinum processing plant is now complete and is expected to be commissioned by President Mnangagwa in January next year.

Construction of the plant commenced in 2016 as the company heeded Government’s call on value addition and beneficiation.

Unki Mine general manager Mr Walter Nemasasi said President Mnangagwa was expected to commission the plant next year.

He, however, said more information regarding the plant would be availed to the public once the plant had been commissioned.

“We are expecting President Mnangagwa to open the plant sometime in January and unfortunately there will be no Press briefings until then,” he said.

Unki Mine Smelting Plant project manager Mr Clifford Mutevhe once told Sunday News Business that all the structural and engineering work for the smelting plant was complete.

The plant was expected to be commissioned in July this year.

Mr Mutevhe said the plant would start operating at full throttle in 2019.

“This is a huge project that the mine is undertaking. All the structural work has been done,” he said.

Mr Mutevhe said the smelting plant, which will consume over 11 meggawatts, would see the company smelting about 623 000 tonnes of platinum concentrate per annum.

Platinum mining companies agreed to set up platinum refineries at their respective mining sites while they have also agreed to construct a single platinum processing plant.

Platinum processing, although requiring a lot of resources and capital, would enable the country to realise more from its minerals as well as curbing repatriation of profits.

In May last year, the Government signed an agreement that would see the construction of a $300 million platinum refinery which will significantly increase platinum export earnings.

The refinery would give Zimbabwe an opportunity to refine its platinum as opposed to the current process of exporting it as predominantly raw mineral.

The total output is thus expected to rise to 0,49 million ounces (moz) in 2026 from 0,42 moz produced thus year.
source: The Sunday News

ZERA advocates establishment of crude oil refinery

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ZERA advocates establishment of crude oil refinery

Zimbabwe should seriously consider establishing a local crude oil refinery as a way of cutting the ballooning fuel bill, according to the Zimbabwe Energy Regulatory Authority (Zera).

Zimbabwe’s fuel consumption has risen from an average 2 million litres daily in January to 4 million per day in October, putting a strain on the country’s limited foreign currency, as well as fuelling the emergence of fuel queues.

The Reserve Bank of Zimbabwe (RBZ) has doubled foreign currency allocations to fuel dealers from $10 million to $20 million per month in the same period.

Presenting oral evidence before the Parliamentary Portfolio Committee on Power and Energy on Thursday, Zera acting chief executive officer Mr Edington Mazambani said Zimbabwe is better off with its own refinery.

Mr Mazambani also said Government can also consider rationing the scarce commodity, but he cautioned that this would not be a popular route.

It is believed that establishing local fuel processing capacity will cut the import bill substantially, develop regional export potential and create employment.

He, however, could not reveal the amount of savings to be realised assuming the nation decides to establish a refinery.

“There is definitely an increase in consumption of fuel, probably occasioned by the number of vehicular traffic on the roads and it’s more pronounced in the capital,” said Mr Mazambani.

“For petrol, we started in January at 1,6 million litres per day, it has since moved to about 3 million litres per day.

“We should, maybe, explore the setting up of a refinery to support downstream industry and also generate foreign currency when we export within the region.

“As a nation, we do have business proposal to look at the possibility of us setting up a refinery. Zambia is no longer operating their refineries, they are actually importing more of the finished product than crude oil, Botswana consumes the finished product, DRC. . . so it’s a possible market which if we explore can actually support a business case to have a refinery in this country,” he said.

Zimbabwe used to operate the Feruka Oil Refinery in Mutare which, however, mothballed in 1966. Government made efforts to revive the project in 2004 by Capref with a takeover proposal.

However, Mr Mazambani told Parliament that reviving the Mutare Refinery was ill-advised as it has since been overtaken by technology and, thus, resuscitating it could prove uneconomic.

“I am not really a technical person but that refinery was a Rhodesian project, technology has since moved. I don’t think we can operate that refinery (or) resuscitate it to be economically viable,” he said.

Before going the refinery route, the acting Zera boss said there is a need to revive a reliable public transport system so as to discourage people from driving personal vehicles.

He noted that the increase in vehicles is a result of the death of the public transport system, which is no longer reliable.

“(The other solution) is maybe to have a more reliable public transport system that will release the pressure because at the moment driving a car is no longer a luxury, it’s really a necessity because of the absence of reliable public transport system,” he said.

“So we think that if we were to introduce public transport system which is on time every-time, we will see more people opting to use public transport,” said Mr Mazambani.

Speaking before the same committee, RBZ Governor Dr John Mangudya assured parliamentarians that the country will not run out of fuel this festive season as sufficient allocations for fuel purchases will continue to be availed.

Reports say there are about 1,5 million registered vehicles on the country’s roads, some of which remain unaccounted for.

source:The Sunday mail

Chinese mining group exit Zimbabwe

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Chinese mining group exit Zimbabwe

Chinese mining and exploration group ASA Resources Group says it is tying up a deal to sell-off its shareholding in Bindura Nickel Corporation (BNC), which will see it exit the Zimbabwean market.

ASA operates Freda Rebecca, the largest single gold mine in Zimbabwe and Trojan Nickel Mine through BNC, which is listed on the Zimbabwe Stock Exchange (ZSE),
ASA gained control of BNC and its assets in 2015 after taking over the miner’s holding company Mwana Africa and booting out its founder, Kalaa Mpinga.

In a cautionary statement to shareholders, BNC announced that it had reached a deal with a potential buyer.

“Asa Resource Group has entered into a sale and purchase agreement (SPA) with a third party in relation to the 74,73% shareholding in BNC. The conditions of the SPA include various regulatory approvals and other conditions as expected with a transaction of this nature. The third party is a United Kingdom-based nickel company with complementary interests in Southern Africa,” the notice reads.

“Shareholders are advised to exercise caution when dealing in the company’s securities until a full announcement is made”.

In January this year, South African Gold producer Pan African Resources (Panaf) announced that it was in exclusive negotiations with ASA Resource Group to acquire assets and liabilities in Zimbabwe.

Panaf, a mainly gold miner which is listed on the Johannesburg and London stock exchanges, has operations in South Africa.

The group also has operations in Botswana, Democratic Republic of Congo (DRC), South Africa and Angola.

ASA has been operating under judicial management since July last year after struggling to service its obligations.

Last year, the board reported that $4,3 million was missing from Freda Rebecca Mine, with an audit showing that the then executive chairman Yat Hoi Ning and finance director Yim Kwan had irregularly transferred money to two Hong Kong-registered companies.

In the six months to September, BNC registered a 26% increase in profit after tax to $2,8 million, buoyed by firm mineral prices on the international market.

However, sales during the half year period were down 14% to 2 980 tonnes from 3 485 tonnes last year on the back of low production and logistical challenges in moving the product out of the country.

Cost of sales increased by 11% from $16,2 million last year, to $18 million in the period under review, mainly due to an increase in local costs. Production declined to 3 076 tonnes from 3 460 tonnes in 2017.

BNC has had to put its ambitious Smelter Restart Programme on hold because of the prevailing economic challenges.

source: NewsDay Zimbabwe

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