Mining

THE PROVIDER OF VALUABLE INTELLIGENCE TO THE ZIMBABWE MINING COMMUNITY

ISSUE

52
2022
Z I M B A B W E
0 618528
356556
 TESMEC ROCK HAWG
GROUNDBREAKING.

Tesmec Surface Miners are suitable The ability of precisely adjusting the The experience in mines and quarries
to excavate even strong and depth of excavation and the possibility brought to define digital technologies
unfractured rock, cutting vertical to separate the excavated materials and a smart working method that
walls and square corners with an allow selective mining and a increases jobsite efficiency, meaning
outstanding effectiveness. significant overall cost reduction. more digging hours on working shifts.

Discover Surface Miner Series at www.tesmec.com

John M. Keogh: +263 772 543 391 - [email protected]
Evans Chikopa: +263 78 469 51331 - [email protected]
Mining
Z I M B A

WRITERS/ JOURNALISTS

Anerudo Mapuranga
Keith Sungiso
Dumisani Nyoni
B W E

Rudairo Mapuranga - [email protected] CONTENT Mining Zimbabwe Magazine |Issue 52

CONTRIBUTORS/ GUEST WRITERS

Lyman Mlambo
Earnest R Chinyanga,

SALES & ADVERTISING

Kelvin Sungiso
[email protected]
Cell/Whatsapp: 0775523000

PUBLISHER
Timelison Media (Zimbabwe)

ABOUT PUBLICATION

Mining Zimbabwe is the premier source of

Zimbabwe Mining News. Our core focus is the
Zimbabwe Mining Industry, trends, new
technologies being developed and used to improve
this crucial sector, as well as new opportunities and
investments arising from it. Mining Zimbabwe’s
sole purpose is growing and empowering the
Mining Industry and highlighting all its challenges
as well as putting forth expert solutions

AVAILABLE IN RETAILS STORES

INSIDE MINING ZIMBABWE

FOLLOW US ON SOCIAL MEDIA 08 KEY MINING PROJECTS 2021

14 Factors Affecting Mining Investment in
Zimbabwe
Online Awards
16 Forget Gold, Diamonds and Platinum,
Zim can still make millions & millionaires

18 Unki production up 48 per cent

10 20
20
Zimplats In A Major Exploration Drive

Zimplats production decreases as

operational costs increase

21 Invictus confident of Muzarabani

oil potential

22 ‘Zim, Malawi propose a SADC gemstone

marketing centre

Address
4th Floor Fidelity Life Towers Harare
Tel: +263 242 777728| Whatsapp +263 8644 276 585
18 US$60 million from Arcadia sale to fund
Step Aside lithium project in Goromonzi

Advertising: [email protected]
Web: www.miningzimbabwe.com
19 Zimplats produces over a tonne of gold
in 2021 21
04| ISSUE 52 >> www.miningzimbabwe.com
 Advertorial

CONTAINERS FOR SALE,

RENT OR CONVERSIONS
*20FT AND 40FT AVAILABLE

CONTAINERS ARE RENOWNED FOR THEIR:

• STRENGTH • SECURITY • LONGEVITY • PORTABILITY • AIR AND WATER TIGHT • COST AFFECTIVE

IDEAL FOR:
• OFFICES AND ACCOMODATION • ABLUTIONS • STORAGE • TUCK SHOP • SHOW ROOM

6 Borgward Road, Msasa, Harare, Zimbabwe We are Smart Thinking, practically minded manufacturer and provider of residential, commercial, industrial, specialised and low
P.O. Box AY73, Amby, Harare, Zimbabwe cost building projects and services throughout Zimbabwe and the Southern African region.
Tel: +263 242 447 748/9
Cell: +263 782 722 396 Email: [email protected] Be Smart, Be Safe, Sanitise, Social Distance and Always Wear A Mask!
Website: www.sbs.co.zw

SPECIALIST IN RUBBER AND

CONVEYOR BELT SPLICING

INDUSTRIAL RUBBER CONVEYORS

AND GENERAL ENGINEERING
• Conveyor belts Hot/ Cold Splicing
• Rubber Lining/ Ceramic Lining 44 Auckland road Crn Plymouth
• Hoses and Fittings road & Southerton Harare
• Sandblasting/ Painting 0242 621266/7 0772 866 260 0773 488 726
• Fabrication and Structural installations
[email protected]
www.headouph.co.zw

05| ISSUE 52 >> www.miningzimbabwe.com

 I HAVE A
TRUE BLUE
LOYALTY CARD
DO YOU?

06| ISSUE 52 >> www.miningzimbabwe.com

 NASHY MINING COMPONENTS
Nashy Mining Components is an Engineering Services Company which specializes in the provision of ENGINE DYNO TESTING for
mining mobile equipment and the repair of drive train components and engines, (i.e. Repair of Transmissions, Drive shafts, Final
drives, Axles and Engines) for GHH, CAT, Bell, Sany, Belaz, Luigong, XCMG and Beml equipment.

2LOOXEULFDQWV

)DQEHOWV

We supply these Brands and more...

ENGINE DYNO TESTING • TRANSMISSION AND GEARBOX • ENGINE REPAIR & MAINTANANCE
• AXLE REPAIR & MAINTENANCE • SERVICE CONTRACT
248 Williams Way Tel: +263 242 442 591/2 +263 772 573 573 nashymining.co.zw
Unit 12, Msasa, Harare Mob:+263 732 222 219 Nashy-Mining-Component Email: [email protected]
KEY MINING PROJECTS 2021

KEY MINING PROJECTS

IN THE YEAR 2021 MINISTRY OF MINES AND MINING DEVELOPMENT

08| ISSUE 52 >> www.miningzimbabwe.com

 KEY MINING PROJECTS 2021 - GOLD, DIAMONDS
Eureka Gold Mine, Dallaglio Investments Shamva Gold Mine Reopening, Shamva
(Pvt) Ltd Re-opening, Guruve, • Shamva Gold Mine Project reopened in April 2020 since closure
in January 2019 and currently the mine employs 800 employees.
• Exploration was completed in 2021 with the project set to
produce 250 kg of gold per month in addition to the current
production of 900 kg per annum (75 kg of gold per month).
• Plant and Mine Construction to commence in February 2022.
• Shamva Gold Mine to build 800 houses, 2 schools and a clinic
and contribute to the growth of Shamva town.
• Shamva Gold Mine benefits
i. Ore production expected to meet the design capacity of the
mine of 30 000 tonnes of gold ore per month.
• Eureka Gold Mine has resumed operations after the injection of ii. Employment creation of 1000 people directly and indirectly.
capital from new investors.
• The reopening programme started in 2018 through a ground RioZim Cam and Motor Mine (Expansion
breaking ceremony by His Excellency, the President, Cde Dr. E.D Project) Kadoma,
Mnangagwa. On October 21 2021, His Excellency, Cde Dr.E.D.
Mnangagwa officially commissioned Eureka Gold Mine. • The USD17 Million Biox Plant project is nearing completion. The
• The project has created employment for 500 employees, with project will be commissioned in Q1 2022.
over 300 employees from the local community. • The gold production will reach 140 kilograms per month, during
• Resuscitation of Eureka Gold Mine is a success story to the the first phase of the project, and will peak at 200 kilograms per
President ‘s call for investors to invest in the geologically rich month, after Phase 2 is implemented.
nation. • The project has created employment for 100 locals

Caledonia Mining Corporation/ Blanket Mine ZCDC (Expansion Projects), Chiadzwa and
(Shaft Expansion), Gwanda Midlands

• Caledonia Mining Corporation completed the construction of the

USD 67 Million Central Shaft at Blanket Mine in Gwanda.
• The Central Shaft is expected to boost production to 80 000 oz
of gold per year.
• ZCDC commissioned a 450tons per hour metallurgical process
Rio Zim Murowa Diamonds Midlands plant. The mining company is expanding operations from alluvial
operations to conglomerate ore processing. ZCDC is the first
(Expansion Projects), Zvishavane, Midlands mining company globally to process conglomerate ore and is
• As at Q3 2021, the expansion was at 78% completion. using state of the art technology such as X-Ray Transmography
Commissioning expected in Q2 2022. technology.
• Feasibility Studies for underground mining are in progress. • ZCDC ramped up production which saw them surpass their 2021
• The expansion will see Murowa processing 500 000 tonnes per target of 2 million carats.
month from 190 000 tonnes per month. • To date ZCDC has produced 2.3 million carats.

Anjin Investments (Pvt) Ltd Diamond ZCDC/ALROSA J.V (New Mine), Malipati, Matabeleland South

Reopening, Chiadzwa, Manicaland • Following the signing of a joint venture agreement between the
• His Excellency, Cde E.D Mnangagwa officially reopened Anjin Zimbabwe Consolidated Diamond Mining Company (ZCDC) and
Diamond Mine in August 2020. Russia’s ALROSA in 2019 to develop diamond fields in the country,
• Anjin Diamond Reopening Benefits exploration work is now in full swing.
i. Increase in diamond production to achieve 10 million carats by • Work has been done in setting up the exploration camp and
2023, peaking at 12 million carats 2025. assembling a diamond washing plant with a capacity of 1 tonne
ii. Employment creation per hour of ore.

09| ISSUE 52>> www.miningzimbabwe.com

KEY MINING PROJECTS - PLAtinum
Gemmology Centre, Mutare, Manicaland Unki Mine (Pvt) Ltd (Expansion Project)
•Government’s thrust to promote value addition and beneficiation Shurugwi, Midlands
is bearing fruit with a Gemmology Centre being constructed at
Fern Valley in Mutare.
•In the quest to achieve targets set under Vision 2030,
government is spearheading construction of a Gemmology Centre
in Mutare, to promote value addition and beneficiation of the
country’s precious stones.
•Phase one of Gemmology Centre will be completed by mid-
February 2022 and it is 51 percent to completion. The phase 1
comprises of the perimeter fence, security fence, brick wall, gate
house. 2 boreholes were drilled in the first phase and installed 2
water tanks.
•Mobilizing of funds for the construction of the cutting and
polishing plant is now underway.

Great Dyke Investments (Pvt) Ltd (New

Mine), Darwendale
• The concentrator expansion is now complete and steady ramp
• To date, the first Boxcut of the two is complete and Excavation
up is in progress.
Work is complete.
• The expansion will result in increased concentrator capacity
• The project employs a total of 360 employees with 70 being GDI
from 179 000 tonnes per month to 210 000 tonnes per month.
employees while 290 are contactors.
• Once fully operational the two mines will produce a total of 3.45
million tonnes of PGM ore per year. Bravura (Pvt) Ltd (New Mine), Darwendale

Karo Platinum (Pvt) Ltd (New Mine),

Darwendale,

President Mnangagwa Operates a Drill Rig at KARO Mine

• Karo has successfully completed an exploration/ resource • Bravura carried out exploration and feasibility studies in 2021
delineation exercise and the project is at implementation stage. and plans to go into mine construction in 2022 and production in
• Resettlement of affected individuals is scheduled for Quarter 1 2023.
2022. • Bravura has created employment for a total of 40 employees.
• The project is expected to mine approximately 14.4 Mtpa of run
of mine ore. ZIMPLATS (Expansion Project), Mhondoro
• The project has created employment for 100 employees.
Ngezi
Mimosa Mine (Expansion Project),
Zvishavane, Midlands
• Mimosa mine has a short life of mine and is investing in the
opening of a new portal at North Hill to increase life of mine. This
will contribute to the attainment of the critical mass for local
• ZIMPLATS signed a memorandum of understanding with
beneficiation.
Government of Zimbabwe in 2021 that will see the company
• Mimosa Mine is carrying out various projects to increase
invest USD1.8 Billion to expand its operation by the year 2025.
process efficiency. A concentrate handling facility to use a bulk
• A key project is The PGM Base Metal Refinery (BMR) plant that
loading bunker has been commissioned. The company is also
will cost an estimated USD 200 million.
working on process optimization project to improve recovery from
• Currently ZIMPLATS is undertaking a bankable feasibility study
the metallurgical plant.
that is expected to be complete by 2022.
• This will all target increasing revenue and helping the nation
• The construction of the Base Metal Refinery, installation and
attain a USD12 Billion mining economy.
commissioning of the plant is expected to be complete by 2026.

10| ISSUE 52>> www.miningzimbabwe.com

TEAMVIEW

.,(- ),',-

-/-..#)(-

&#()(-.,/.)(

-1#."!,

'.,#(!/(#.-

uƒ€‡€|„‰‚HIFB?9M9@97HF=75@
9B;=B99F=B;Ž€‘„~€Ž‹Š‘„€„‰
{„ˆ}|}’€
)/,-,0#-

01 02 03
'5BI:57HIF9 "=;<0C@H5;95B8 .F5BG:CFA9F)=@
-IDD@M5B8 &CK0C@H5;9&=B9 =@HF5H=CB)B@=B9
#BGH5@@5H=CBC: CBGHFI7H=CB 5B8):c=B9
.F5BG:CFA9FG =@HF5H=CB
5B8-I6GH5H=CBG

)(..vt
)&&)1/-)(-)#&'#
v‰„–—h‡€‰€|‚‡€Žj‰Ž„|‡d€‰€ —›˜œœ—™š•ž—–

d‰h‡€‰€|‚‡€Že|‚€‰ƒ|ˆs —›˜œ˜˜–••–œ–
x„‡‡Š’‘|‡€i||€{„ˆ}|}’€
~‡€ˆ€‰'€|ˆ‘„€’ ~Š ”’
u€|ˆ‘„€’ —›˜—™—›——–••–
•›••˜•™ž ’’’ €|ˆ‘„€’ ~Š ”’
KEY MINING PROJECTS - CHROME, FERROCHROME AND STEEL
Todal Mining (New Mine) Afrochine Smelting (Pvt) Ltd Selous

• Operationalization of 2 × 12.5 MVA additional Furnaces in

• Todal is currently undertaking resource estimation, aeromag- addition to 3 Chrome Smelters already operating to produce 600
netic survey and drilling. 000 tons per annum of ferrochrome was done in June 2019. The
• Metallurgical testworks on communition, variability and flotation furnaces are ready for commissioning by H.E
are expected to be finished by 2022 and a pilot plant to be built by
2023. Jin An Corporation Chrome Smelters, Gweru,
Midlands
Dinson Iron and Steel Company (Pvt) Ltd
The Low Carbon Ferrochrome Furnace is operational with a
(Tshingshan), Carbon Steel Plant capacity of 1200 tonnes/ month of Low Carbon Ferrochrome.
(New Project) • JinAn also produces High Carbon Ferrochrome and ferrosilicon
chrome.
• The electrode paste plant is operational with an annual capacity
of 5000 tonnes per annum.

Prospect Lithium New Mine, Arcadia

• Prospect Resources and its subsidiary Prospect Lithium
Zimbabwe remains focused to bring the Arcadia Lithium project
into production.
• Prospect finished the construction of a Pilot Plant which will
initially produce bulk samples of 500t of Petalite and 120t of
Spodumene concentrates for customer qualification.
• Prospect Resources signed agreements for the sale of 87
percent stake in the Arcadia Lithium Mine to China’s Zhejiang
Huayou Cobalt Limited.
• The steel plant will produce 1.2 million tons of carbon steel per
annum and will generate around USD1.9 billion per annum. Grand Sanyuan Copper Resources Zimbabwe
• The investment will create at least 6000 jobs, thousands of (Alaska Mine Re-opening) Makonde
downstream activities and a new town of about 30 000 residents.
• The Carbon Steel Plant is now due for commissioning by Quarter
1 2022.

Southern Granite, Chitungwiza &

Mashonaland Central

• Phase 1 comprising of installation of the furnace is expected to

be completed by end Quarter 1 2022.
• The company has directly employed over 50 locals and the
construction and civil works are being done by local contactors
• Southern Granites has 3 Multiwire saws which have 52, 56 and which takes the total (direct and indirect) employees to over 100
72 wires and 2 polishing lines. They export approximately 12000
m2 per month. Southern Granites adds value to approximately
95% of blocks produced.
• They produce 400-500 cubic metres per month and exports 8
000 square metres to key markets including Europe, Asia and
South Africa.

12| ISSUE 52 >> www.miningzimbabwe.com

 COAL, COKE, GRANITE - KEY MINING PROJECTS
Yang Sheng Mining, Murehwa Dingmao Mining, Mutoko, Mash East
• Yang Sheng Mining (Pvt) Ltd is a granite mining company that • The company currently has two granite polishing plants and they
commenced operations in 2018 in Zimbabwe. are planning to erect five more granite polishing plants by October
• Yang Sheng Mining Private Limited is in the process of the 2022.
construction of a granite cutting and polishing facility that is • The company’s expansion plan would increase the number of
expected to be completed by February 2022. locals employed from 200 to 500 workers by end of year 2022.
• Yang Sheng Mining Private Limited first phase will produce 1950
tonnes of polished slabs per month and 2400 tonnes of granite Lokalise Investments Limited (Western
will be cut every month.
• A total investment of USD10 Million will be required for the first
Areas) Western Areas, Matebeleland North
phase and 100 local employees will be recruited.
• The company’s expansion plan will involve 5 phases which will
create more than 300 local job opportunities.
South Mining (Pvt) Ltd, Hwange
• The expansion project was officially opened by H.E Cde E.D
Mnangagwa on the 16th July 2020.
• 2 Coke Oven Battery with a capacity of 12000 tonnes per month
each.
• The main local suppliers for raw material are Hwange Colliery,
Makomo and Zambezi Gas
• Construction of Phase 2 with an additional 140 000 t capacity
has commenced and is expected to be completed by February
2022.
• The combined capacity at the plant will be 280000 tonnes of • Current coal production is 75000 tonnes/month
coke, 2800 tonnes of tar, 2400 tonnes of benzoyl and 40 million • Lokalize is supplying 50% coal to ZPC and other customers
m3 of gas as by-products. include Triangle, Hippo Valley, farmers and small thermals.
Metallurgical coal supplied to Dinson Colliery (Pvt) Ltd
Project Benefits • Coal testing lab and office building to be completed in October
2021
i. Local employment • Rehabilitation of mined out area already taking place as mining
ii. Exports is being undertaken
iii. Coke by product at ZIMCHEM
iv. Gas supply to ZPC Makomo Resources (Pvt) Ltd, Hwange
• Current Monthly production of 20000 tonnes of coking coal,
Tutu/Jin An Corporation, Hwange 8000 tonnes of thermal coal and 8000 tonnes of industrial coal.
• Construction of semi coke plant still underway. and mobilization • There is scope to ramp up production by 100% to meet the
of material resources is on-going. Expansion of ZPC Units 7 and 8 requirements.
• Coal Sales is 73% Production ZPC, 15% for Commercial Market
Zhong Jian Investments (Pvt) Ltd, Hwange and 3% for Exports.
• Current production is 150 000 t/month of thermal coal for ZPC
• 474 locals employed for mining operations Project Benefits
• Commenced construction of a coke battery of 300 000 tonnes i. Employment Creation
/year capacity ii. Power Generation
• The investment for the coke battery has been budgeted at iii. Fiscal contribution - over US$300m
USD120 Million
Zimbabwe Zhong Xin Electrical Energy (ZZEE)
Zimbabwe Zhong Xin Coking Company (Pvt) Ltd Hwange
(ZZCC) (Pvt) Ltd, Hwange
• The current coke production is 10 000 t/month and the main
product is foundry coke.
• The current stockpile is 18000t of foundry coke which has a
market price of USD290/tonne.
• The main market for foundry coke is AcelorMittal in South Africa,
Zambia and Congo for processing copper, manganese and cast
iron.
• 173 locals employed by the project to date.
GeoAssociates (Pvt) Ltd, Muzarabani Oil and
• ZZEE finished the construction of the power plant in 2021 and
Gas Exploration Project, Muzarabani connected to the 80 kV power line.
• The Seismic survey was successfully carried out in 2021. • 100 locals employed by the project to date.
• Muzarabani, has secured the necessary casing, wellheads and Project Benefits
long lead items for its 2-well oil and gas drilling programme • Employment Creation and Power Generation
scheduled for May 2022
13| ISSUE 52 >> www.miningzimbabwe.com
INVESTMENT FOCUS
Factors Affecting Mining Investment in Zimbabwe
between the desired stock of capital and
the actual stock every year. Capital
requirements are always expanding every
year due to a negative capital adjustment
coefficient. The mining sector would re-
quire a capital-output ratio of 4 (that is, the
value of capital stock should be 4 times
that of current output at any point to
maintain a normal working rate). Due to
lack of finance, investment in any year is
normally explained by the previous year’s
investment (lagged investment variable),
for three reasons: (i) scarcity of finance
Lyman Mlambo, Chairman of the Institute of Earnest R Chinyanga, Consultant at LMS makes it difficult to undertake investment
Mining Research Mining Consultancy as a lump, but rather spread it to take
BACKGROUND Understanding the factors that attract or advantage of annual receipts; (ii) the
repel mining investment in Zimbabwe is a existence of investment adjustment costs
Lyman Mlambo, in a 2013 article entitled core foundation of mining investment – in other words, installation of capital is
“An Analysis of the Determinants of Mining policy and general mining policy in Zimba- not costless or instantaneous, especially in
Investment in Zimbabwe: Based on the bwe. The Fraser Institute’s Annual Survey Zimbabwe where the cost structures are
Flexible Accelerator Model”, which was of Mining Companies seeks to gauge the very high; and (iii) senior managers use the
published in Volume 3, Issue 3 of the company executives’ perception of the previous year’s budgets to modulate
International Journal of Research in conduciveness of a country’s environment budget proposals by junior managers un-
Commerce, Economics and Management to attract investment, given that less the latter can put forward strong argu-
(p.1) states that: investment capital has competing country ments for the variance.
destinations. According to the Institute, the
Net investment in any sector of the first condition is the availability of mineral Mlambo also argues that real capital
economy, mining included, creates resources, and the second condition is the depreciation (that is, at historic cost) in the
employment, makes the economy grow policy regime (or environment). mining sector is very significant at an
and makes future consumption possible. estimated rate of 7.26%, though the nomi-
Without mining investment, mineral Policy is only a part of the mineral resource nal figure tends to be negative because of
resources remain sleeping resources, with governance framework, with the latter inflation which tends to suggest capital
their extent unknown and the country concept encompassing policies, stock value appreciation. The real
benefiting nothing from them. Following legislations, regulations and procedures depreciation has made a requirement for
the perspective of the New Growth Theory together with the institutional frameworks replacement capital huge besides that for
that technology is embodied in new implementing them. Thus, the whole expansion capital. It is found that current
capital, investment, therefore, combines governance framework is relevant in levels of output have little to do with
two important growths - capital growth determining the attractiveness of decisions on that year’s investment level,
and technical progress. This is especially Zimbabwe to mining capital. So far, the and that stoppage in production and
the case in the Zimbabwe mining sector, background relates to aspects that are investment for a few consecutive years
where both investment and technical under the purview of government. There normally leads to closure due to high fixed
progress significantly derive from the are also pure economic (including market- costs associated with mining operations as
foreign sector. based) factors that impact investment, well as legacy issues. This partly explains
though governments all over the world the failure of mines on care and
Thus, geological prospectivity per se is not intervene in the market to influence these maintenance to come back into full
useful if there is no investment into factors or modulate their impact on invest- resuscitation in a reasonable period of
exploration, mine development, mining ment. This article attempts to briefly dis- time.
and other activities in the higher value cuss these economic factors and the
chain. These are the activities that create governance framework that impact on Interest Rate and the Internal Rate of
value in a natural resource, hence the term mining investment in Zimbabwe. Return
value chain. The quote above also implicitly Geological prospectivity per se is not dis- The relative magnitudes of the bank
refers to the dilemma between sovereignty cussed for the simple reason that it is a interest rate on lending (loosely represent-
and capital facing a developing yet given, which cannot be changed. ing the cost of capital), denoted by r, and
mineral-rich country like Zimbabwe, where the internal rate of return of the invested
without foreign capital (foreign direct Discussion of Factors Impacting on capital, denoted by i, determine whether or
investment), the resources cannot be Mining Investment Levels in Zimbabwe not investment in a whole mining project
optimally developed, which capital then or in a piece of mining equipment should
dilutes the country’s claim to its resources. Mlambo, in the article quoted earlier, finds be done (Mlambo, 2013). While r is
The issue of resource nationalism is a lack of finance (one may include under this determined in the banking system (or
whole discourse on its own. However, the underdeveloped stock exchanges) as a big money market), the level and dynamics of
quote carries the important idea that factor in Zimbabwe mining sector. Lack of i reflect the operational costs (or general
investment, whether local or foreign, is finance (which is itself explained by other operational environment) of the project or
critical in the mining sector. factors) explains the increasing gap piece of equipment in

14| ISSUE 52 >> www.miningzimbabwe.com

 INVESTMENT FOCUS
question. A situation where r > i, or gen- bwean-owned enterprises have remained Institute Investment Attractiveness Index
erally where either r is rising or i is falling is small-scale by international standards. (IAI). IAI is a broader index than the policy
not conducive for mining investment. In General dynamics in property rights and and taxation regime indices. An important
Zimbabwe, interest rates have generally resource nationalism, cases in point being statement that is worth repeating many
been rising historically, while the internal the chaotic land reform programme and times is the fact that, while perceptions are
rate of return has been falling, making the the evictions of people from their ancestral subjective, they still determine the level of
environment theoretically repellent to lands in Marange, which have left enduring mining investment because mining
investment. However, local interest rates legacy issues related to compensation, executives make decisions on their basis
have, in reality, no significant effect on among others, have corroborated these (Mlambo, 2016). These perceptions
mining capital investment projects for the fears. sometimes also get a quantitative
simple reason that there are no significant Lack of clear policy has hampered corroboration through, for example, the
lines of credit to match the requirements investment in some sub-sectors such as level of the effective tax rates, which for
of the mining sector given very low coal bed methane gas, where a case in Zimbabwe, is among the highest in the
national savings levels. Nevertheless, the point is the Lupane Gas Development world at 65% compared to South Africa’s
banks are capable of offering loans for project which failed to take off because of 36.3%.
operating capital requirements as well as failure to agree on the shareholding
for investment in formal small-scale mines. structure of the envisaged vehicle The 2016 Chamber of Mines report referred
(LUPGAS) for about two decades. The to above highlights several challenges,
Cashflow, Currency Exchange rates and Mines and Minerals Amendment Bill is tak- which we currently need to watch, and if
the Surrender Requirements Investment ing too long to be finalized, and the period necessary, address particularly in the gold
has been affected by low cash flows of waiting is at times characterized by sector, including (i) depressed local prices;
resulting from a high forex surrender inconsistent policy pronouncements, (ii) high unit costs of production; (iii)
requirement which currently stands at some of which are akin to mere political infrastructure deficits including power
40% of gross export revenue. This forex is rhetoric resulting in policy uncertainty. outages; (iv) high cost of local sources of fi-
converted by the Reserve Bank of nance; and (v) sub-optimal fiscal regime
Zimbabwe at the official auction rates The question of political regime stability is with high royalty rates, the multiplicity of
which are far lower than rates prevailing in also a significant factor that has created tax heads, legislative instruments and
the black market. The latter rates are used uncertainty about the future of the mining collecting agencies. These have caused the
as the basis for the pricing of most goods sector. There is a perennial tight political country’s global and continental ranks in
and services, including the locally supplied contestation in this country, characterized terms of gold production to go down
raw materials for the mining sector, and by hate speech, political violence, alleged phenomenally over time. Due to a high
payments for public goods and services human rights violations, alleged judicial perceived country risk, mining companies
provided by the Government itself. This biases, alleged election rigging, all of which that seek to invest in Zimbabwe face the
issue of high surrender requirement (or have resulted in protracted political high cost of offshore finance. The country
low retention level) continues to be a legitimacy issues, antecedent to several risk profile hinges on the operating
subject of contentious engagement diplomatic tiffs and the consequential environment (including the challenges
between the mining industry and the reputational risks for the country. Besides highlighted above and the ease of doing
Government. The mining industry is re- reputational risk, in a situation where it is business), the fiscal regime, legislative,
questing the Government to reduce the highly possible for the ruling party to regulatory and policy environment (which
surrender requirement and also accept change or for radical internal evolution should not have vacuums and gaps and
payment by the industry for public goods within the same party, the continued should be stable), human rights record,
and services (utilities) and statutory honouring of signed mining contracts corruption index (and the related
obligations using the surrender cannot be guaranteed. transparency issues), democratic freedoms
component and at official auction Country Perception Indices and (space), and general macroeconomic
exchange rates. In the past, extreme Competitiveness stability. Zimbabwe shows up badly on
surrender levels, reaching 100% for gold Lyman Mlambo, in a 2016 report for the most of these criteria.
around 2008, for example, resulted in Chamber of Mines of Zimbabwe on
many mines closing down or being placed “Growth Prospects of the Gold Mining Conclusion - Country perception,
on care and maintenance. Industry in Zimbabwe”, concludes that, including international perception and the
Policy Stability, Clarity and Political based on the Fraser Institute's Policy perception by local mining business
Dynamics Perception Index (PPI) and its executives expressed in the Annual State of
Mlambo also notes that investment micro-perception index (the Taxation the Mining Industry Report published by
irreversibility, high capital intensity, long Regime Index), the country compares un- the Chamber of Mines, is the key to unlock-
lead times and long payback periods of favourably to other mining jurisdictions. ing local and foreign direct (FDI) invest-
large mining projects has inevitably put This conclusion has not fundamentally ment in the mining sector. It essentially
the stability of mining regulations or changed since the writing of the said mirrors all the factors we have discussed.
regimes and the security of tenure to the report. Ynis, J. & Aliakbari, E. (2021) in the The conclusion is that the mining invest-
fore of the investment question. Both Annual Survey of Mining Companies 2020 ment environment should be made and
policy stability and security of tenure or (retrieved from https://www.fraserinsti- be perceived to be complete (without pol-
titles have been under threat in Zimbabwe, tute.org/studies/annual-survey-of-mining- icy or legislative gaps), clear (unambig-
a fact which is witnessed by many cases in companies-2020 on 2 February 2022) uous), competitive (good for profitable
the courts. In order to reduce the presents Zimbabwe as being among the business), consistent (not sending contra-
associated risks, several foreign potential least attractive jurisdictions for mining dictory messages), and stable (not likely to
large-scale mining projects have been sit- investment on number 70 out of 77 vary arbitrarily in a way that significantly
ting on the fence, while many Zimba- Jurisdictions according to the Fraser affects initial business decision criteria).

15| ISSUE 52 >> www.miningzimbabwe.com

MINING AFFAIRS

Tantalite

Forget Gold, Diamonds and Platinum, Zim can still

make millions & millionaires from these minerals
In an endeavour to see the mining sector 2023 this publication gives an insight into high-grade ore are found in Buchwa and
contributing significantly to the President other minerals that have the potential to Ripple Creek. Significant ironstone
Dr Emmerson Mnangagwa’s vision for the contribute significantly to the 12 billion deposits include the huge Mwanesi
country to become an upper-middle- mining industry. deposit west of Chivhu and Nyuni near
income economy by 2030 through the Masvingo. Manyoka and Mongula and
National Development Strategy_1 (NDS) There is an opportunity for the country to several similar deposits in the Limpopo
the Minister of Mines and Mining create more millionaires by encouraging Mobile Belt are also important deposits.
Development Hon Winston Chitando pro- citizens to venture into the following
posed a mining roadmap where the sector minerals in 2022 and beyond. In 2017 Australia earned a total worth $117
will contribute annual revenue of US$12 billion (approximately US$85 billion) from
billion by 2023. Iron ore Iron ore export revenue, iron ore is the
country’s largest foreign currency earner.
Rudairo Mapuranga Iron Ore is the Slam-Dunk of Minerals for Over the last ten years, Australia’s iron ore
2021 and Beyond. According to Goldman export volumes have more than doubled
Through the US$12 billion mining Sachs, iron ore has been in a bull market with China being the key export market for
roadmap, gold, platinum and diamonds for more than two years, and it’s not about Australian iron ore accounting for 80 per
are expected to earn a total of US$8 billion to end soon. cent of Australia's iron ore exports.
annually by 2023 with gold fetching US$4
billion, platinum US$3 billion while “It would be wrong to say that the bull If the country invests in iron ore extraction
diamonds are expected to contribute a market for iron ore, you know, is on the there is a better chance that a billion-dollar
total of US$1 billion towards vision 2030. cusp of ending,” said Nicholas Snowdon, industry can be created from iron ore
head of base metals and bulks research at exports alone. The country can also benefit
Although there has been hype and the investment bank. from exporting directly to China thereby
investment rush by both local and foreign potentially creating millionaires from the
investors into mining these minerals since Zimbabwe has huge iron ore deposits iron ore industry.
Hon Chitando was appointed the Minister associated with banded ironstone
of Mines there was little emphasis on other formations in greenstone belts. Major
minerals. With the except for lithium which deposits are estimated to be over 30 billion
the Minister feels can fetch half a billion by tonnes of reserves. Deposits with

16| ISSUE 52 >> www.miningzimbabwe.com

 MINING AFFAIRS
Lithium skyrocketing, the U.S. government has of electronic equipment such as tantalum
officially classified lithium as essential and capacitors and the production of radio
Although the Minister of Mines and Mining critical to economic and national security. transmitter electron tubes which are of
Development Hon Winston Chitando ultra-high frequency.
through the mining roadmap believes that The explosive growth in EVs, mobile
lithium can fetch US$0.5 billion annual phones, energy storage units for wind and Ionosphere Investment Pvt Ltd Director Mr
revenue by 2023, there is a greater solar energy, and other clean technologies, Nyasha Chidoh said his company
potential for the sector to grow than is a clear indication that lithium will be the processes and engages in the value
expected because experts project that hottest in-demand mineral for decades. addition of tantalite and tin because it has
lithium demand will skyrocket 10 fold by discovered that other minerals like
2030. According to Florida-based technical tantalite and tin can have a significant
analyst, market researcher, educator and contribution towards the achievement
The skyrocketing of lithium demand by trader, James Hyerczyk, the leader in vision through supporting the
more than 10 times means lithium prices lithium raw material resources and lithium mechanisation of small scale miners.
are also going to skyrocket giving lithium battery production could determine which
miners an operational boost as well as country dominates economically and Chrome
more than double in profits. technologically in the 21st century. This
means that Zimbabwe has a role to play in Zimbabwe has the world's second-largest
Experts have also predicted that the price taking centre stage in producing lithium to reserves of high-grade chromium ore after
of batteries for electric vehicles are set to achieve President Mnangagwa’s vision to South Africa, with deposits of about 10
rise in 2022 following a decade of sharp see the country achieving an upper-mid- billion tonnes, equivalent to around 12 per
decline as supplies of lithium and other dle-income economy by 2030. cent of the global total, according to the
raw materials fail to keep up with Ministry of Mines and Mining
ballooning demand. Tantalite and Tin Development.

According to S&P Global Market Intelli- Zimbabwe is endowed with significant Chrome is a significant metal to the rise of
gence, lithium supply is forecast to jump to and excellent deposits of tantalite and tin the metal foundry sector in Zimbabwe. A
636,000 metric tons of lithium carbonate deposits. The listed areas of verified total of 22 smelters are now operating and
equivalent in 2022, up from an estimated tantalum deposits include Hurungwe, are shared among nine foreign and local
497,000 in 2021 -- but demand will jump Guruve, Kariba, Mudzi, Mutoko, Shamva, companies. Unless chrome mining
even higher to 641,000 tons, from an Bindura, Harare, Goromonzi, Murehwa, Mt capacity is expanded, the smelting
estimated 504,000 this means that the Darwin, Rushinga, Mazowe, Marondera, operations could soon face the challenge
country which is currently the world’s Gutu, Masvingo, Buhera, Bikita, Mutare, of insufficient feedstock in the form of
fifth-biggest lithium supplier should invest Hwange, Chivhu, Mberengwa, chrome ore. This means that there is an
in more lithium projects. This means that Chimanimani, Makoni and Insiza. opportunity for investors to consider
there is an opportunity for citizens to investing in the chrome mining sector.
consider pushing to lithium mining. Chrome is currently fetching between
US$40-60 per tonne if investors are to
Several lithium projects are currently produce over 20 000 tonnes a month it
taking place in the country with Prospect means a sustainable business can be
Resources’ Arcadia Project and Premier created.
African Minerals’ Zulu project leading to
ensure that the country benefits from the Copper
lithium boom.
There are over 70 known deposits in
Sometimes referred to as “white gold”, Zimbabwe that have produced copper
lithium is an ingredient in lithium-ion either as a primary or secondary product.
batteries, the batteries that will power a The lowest tantalum grade fetches US$40 The main producing area has been the
projected renewable, clean-energy future. per kilogram, which translates into US$5 Magondi Basin in an area stretching for
385.40 per metric tonne while the highest over 150km. Similar copper deposits are
Lithium batteries are the leading grade is currently fetching US$550 per found in the south-eastern part of the
technology in electric vehicles (EVs), kilogram which culminates into country in the Umkondo Basin. According
laptops, computers, mobile phones, US$163.691.55 per metric tonne. to experts, copper prices due to the pop-
pacemakers, hearing aids, drones, even ularity of clean energy are rising signifi-
remote-control toys and so much more. Tantalite is the most widespread tantalum cantly, copper prices reached an all-time
mineral and makes for an important ore of high of $10,512 per metric ton on May 9
The U.S. military has been using lithium the industrially useful metal. Tantalum is 2021, marking a 130 per cent growth since
batteries in radios, thermal imagers and used in alloys for strength and higher March 22, 2020. There is also a high de-
other portable devices for over a decade. melting points, in glass to increase the mand for copper cathode meaning that
Over the next five years, the country’s index of refraction, and in surgical steel, as the country. Reinvestment into the copper
Department of Defense expects to expand it is non-reactive and non-irritating to body sector can create more millionaires in
the use of lithium batteries into military tissues. Zimbabwe.
vehicles, ships, aircraft and missiles.
Tantalite is also commonly used in the
With the demand for lithium batteries electronics industry for the manufacturing

16| ISSUE 52 >> www.miningzimbabwe.com

MINING AFFAIRS
Unki production up 48 per cent US$60 million from Arcadia sale to fund Step
Aside lithium project in Goromonzi

AngloAmerican Platinum (Amplats)

owned platinum group of metals (PGM)
producer Unki mine recorded a 48 per
cent production increase in the fourth
quarter of 2021 compared to the previous
quarter figures released by Amplats show.

Rudairo Mapuranga

During the fourth quarter of 2021, the

platinum miner produced a total of 63 200 Prospect Directors Paul Chimbodza and Harry Greaves
ounces up 48 per cent from 42 600 ounces
produced in the previous quarter.
Australia Stock Exchange-listed mining battery metal tenements also in
and exploration junior Prospect Zimbabwe.
Unki’s annual production was at 204 600
Resources Limited has announced that
ounces in 2021 marking a 4 per cent
it is going to use up to US$60 million Step Aside comprises of 140 hectares of
increase from the 196 100 ounces
proceeds from the sale of Arcadia claims located in the Harare Greenstone
produced during the previous year (2020).
Lithium mine to fund the Step Aside Belt, west of the Mashonganyika Fault, and
During the first quarter of 2021, the
lithium project and other battery metal approximately 8 kilometres north of
platinum giant produced 50 900 ounces
claims in Zimbabwe. Arcadia Lithium mine.
while during the second quarter the mine
produced 47 900 ounces.
Prospect Resources recently executed The potential of the area was confirmed by
Binding agreements for the sale of the the positive regional stream and soil
The fourth quarter of 2021 has been
Arcadia Lithium Project, to Huayou sample geochemistry results and four
impressive for the mine again as it
International Mining (Hong Kong) mineralized pegmatites have been
managed to up production by 13 per cent
Limited for approximately US$377.8 mapped from east to west at the surface.
compared to the same quarter of 2020
million ($528.4 million).
which produced 55 800 ounces.

According to the company, subject to

According to Amplats Unki Mines’
transaction completion, and following
increased production in 2021 has been
payment of requisite Zimbabwean taxes
necessitated by the Completion of the
and transaction fees, Prospect expects to
company’s R700 million de-bottlenecking
distribute approximately $430 – 450
project towards year-end resulting in an
million to shareholders and intends to
improved capacity.
retain a cash balance of between $30 and
$60 million. The company intends to use
The project focused on upgrading the
the cash balance to embark on other
flotation circuit, the primary mill and other
battery metals projects in Zimbabwe and
ancillary equipment.
pursue new battery and electrification Rudairo with a sample of Lithium at State House
metals growth opportunities globally.
“Production at Unki increased by 13% to
“Prospect plans to retain a cash balance of
63,200 ounces due to the successful
$30 – 60 million4 ($0.06 - $0.13/share2) to Observations made at Arcadia indicate
completion of the debottlenecking project
that several parallel narrow pegmatites can
at the concentrator,” the company said.
coalesce into thicker pegmatites down dip.

The new plant was a second major value

The exploration programme is underway
addition and beneficiation project by the
with the commencement of rock chip
mine after the commissioning of a US$60
progress its other battery metals projects sampling. If successful, to be followed up
million smelting plant at the mine by
in Zimbabwe and/or pursue other growth by trenching alongside RC drilling, to help
President Mnangagwa in 2019.
projects in the battery and electrification with determining the sub-surface strike
metals space globally,” the company said. extensions, providing greater detail as to
The project was expected to increase the
the thickness and strike length of the
production of platinum group concentrate
Currently, Prospect Resources assets are underlying pegmatite.
at the plant by 30 per cent and ultimately
Step Aside Project in Zimbabwe and other
increase exports by the same margin.

18| ISSUE 52 >> www.miningzimbabwe.com

 MINING AFFAIRS

Zimplats produces over a tonne of gold in 2021

ZIMPLATS Chief Executive Officer Mr Alex Mhembere

Zimbabwe’s biggest platinum producer Australian Stock Exchange-listed miner plant that the company intends to install
Zimplats has produced a total of 1.002 US also invested US$289m in Hartley mine will produce 100-kilo tonnes per annum.
tons contributing significantly to the development. The sulphuric acid will be used in the
countries’ gold target, Mining Zimbabwe manufacturing of fertilizers in the country
can report. He said that the company invested thereby reducing acid imports.
US$133m on a third concentrator plant
Rudairo Mapuranga with the capacity to create 100 direct The mining sector plays a pivotal role in the
permanent jobs at the same time country’s economic development,
The platinum giant produced a total of 32 increasing its ore milling capacity from 6.7 contributing more than 60 per cent of
064 ounces in the year 2021 making it an Mtpa to 7.52Mtpa. exports revenue, employing over 45 000
important player in the achievement of the formal employees and attracting
100 tonnes gold target by 2023. The PGM base metal refinery (BMR) plant cost significant foreign direct inflows into the
company has been producing an average the miner US$200m. The base metal country.
of 30 000 ounces a year since 2016. refinery has the capacity for local PGM
base metal refining and has the capability Zimplats has been supportive of the
Through the US$12 billion roadmap, the to create 100 direct jobs and at least 1000 government’s vision to see the economy
mining industry is expected to generate an in-direct jobs. achieving an upper-middle-income status
annual revenue of US$12 billion by 2023 by 2030 and the mining industry
and the gold sector is expected to account becoming a US$12 Billion industry by 2023.
for US$4 billion of the sum. Platinum is projected to contribute US$3
Billion in annual revenue by 2023.
Unofficial figures show that the biggest
platinum producer made nearly US$50 Zimplats has reached a milestone towards
million from gold alone whereas the sustainable development of the platinum
country generated US$2.7 billion from sector by increasing melting capacity from
gold in 2021. 132-kilo tonnes to 380-kilotonnes of
The expanded smelter will cost a total of smelted concentrates with the capacity to
Last year Zimplats announced that it had US$280m with smelting capacity smelt own-sources and local third parties.
invested US$1.8 billion in growth projects a increased from 132-kilo tonnes to 380
development that will aid in the kilotonnes of smelted concentrates, Mhembere said the company will also
resuscitation of the country’s economy. Capacity to smelt own-sources and local build a 110 MWAC Solar power plant for
third parties, Employment creation of 40 US$201m with sufficient capacity to satisfy
According to Zimplats Chief Executive Of- permanent jobs, saving on transportation the needs of the company, including
ficer Mr Alex Mhembere, the company has of bulk concentrates across the border, and related mining and mineral beneficiation
invested US$386.2m towards Mupani Mine avails the opportunity for new mines to facilities.
re-development and US$82m on Bimha reduce capital requirements.
mine upgrade. The mines are expected to The company will also invest US$20m to
be the replacement for depleting Rukodzi, Zimplats according to Mhembere will build houses for its workers.
Ngwarati and Mupfuti mines. The invest US$200m in the Sulphuric acid

19| ISSUE 52 >> www.miningzimbabwe.com

MINING AFFAIRS

ZIMPLATS IN A MAJOR EXPLORATION DRIVE

Zimbabwe’s biggest platinum group of Last year Zimplats announced that it plant, in addition to reducing point-source
metals (PGM) producer Zimplats spent invested US$516 million towards sulphur dioxide emissions, will produce
more than US$1.3 million on exploration maintaining current production levels sulphuric acid – a vital feedstock in the
during the quarter ended 31 December through mine replacements and up- manufacture of fertiliser.
2021 as the company continued on its grades. The mine replacement and up-
quest to lead world-class mining grades funding are part of the US$1.8 The company said that: Implementation of
operations in Zimbabwe. billion capex plan which has been ap- the Mupani Mine development project, the
proved by the company’s body of directors upgrade of Bimha Mine and the construc-
According to the company, US$1.3 million for a 10 year period. tion of the third concentrator plant pro-
was spent during the quarter with a gressed according to plan during the
further US$1.5 million committed during quarter, with project-to-date expenditure
the quarter to advance mineral resource of US$211 million and commitments of
evaluation as well as increasing geological US$131 million at period end, against a
and geotechnical confidence in combined budget of US$562 million. The
production schedules. Mupani Mine development and Bimha
Mine upgrade are replacement mines for
“A total of US$1.3 million was spent on Rukodzi, Ngwarati, and Mupfuti mines,
exploration projects, with a further US$1.5 In November 2021, according to Zimplats, which will be depleted in FY2022, FY2025
million committed as at 31 December 2021. the board of directors approved a US$521 and FY2028, respectively. Commissioning
million capital expenditure project to con- of the third concentrator plant will increase
“Exploration activities included mineral struct a new 38MW furnace and establish milling capacity by 0.9 million tonnes per
resource evaluation, comprising an acid plant for the abatement of sulphur year and is expected to be completed in
approximately 13 464 metres of surface dioxide generated by the smelter opera- FY2023.
diamond drilling over existing projects on tions. Implementation of this project will
the two mining leases. Exploration increase smelting capacity from the cur- The bankable feasibility study for the 185
activities increased geological and rent 132 000 tonnes to 380 000 tonnes of MW solar project was completed and Inde-
geotechnical confidence in production concentrate per year. The expanded pendent Power Producer (IPP) licenses
schedules,” the company said in a state- smelter complex will have capacity for toll were issued by the regulator.
ment. treatment of third-party material. The acid

Zimplats production decreases as operational costs increase

compared to the quarter ended 31 volumes were affected by the planned
September 2021 with 7 803 ounces concentrator mill reline shutdown at the
production. Selous Metallurgical Complex.

In total, 6E production declined by 2 per 6E metal in the final product decreased by

cent during the quarter ended 31 2 per cent to 140 768 ounces from the prior
December 2021 with a total of 140 768 quarter, impacted by the lower head grade
ounces as compared to the previous notwithstanding the higher tonnes milled.
quarter of September 2021 where a total of On a year-on-year basis, metal in the final
6E 143 061 ounces was produced. product decreased by 4 per cent driven by
lower head grade and a decrease in
Mined tonnage decreased 7 per cent both concentrator recoveries. Recoveries were
Australia Stock Exchange-listed
quarter-on-quarter and year-on-year. This adversely affected by the 2 per cent
platinum group of metals (PGM)
was mainly due to production disruptions decrease in head grade.
producer Zimplats has recorded a 4 per
at Mupfuti Mine during a changeover of
cent decrease in 6E (Platinum, Palla-
trackless mining equipment service According to the company, total operating
dium, Gold, Rhodium, Ruthenium, Irid-
provider. The process has since been cash costs increased by 4 per cent from
ium) production during the quarter
completed. the prior quarter, driven mainly by
ended 31 December 2021 compared to
increased prices of some major
the same quarter of 2020 while
6E head grade decreased 2 per cent to 3.39 consumables. A total of US$0.6 million was
operating costs increased by 8 per cent.
g/t from the prior quarter, largely due to transferred from operating costs to closing
the impact of ore mix as increased stocks during the quarter largely due to
Rudairo Mapuranga
volumes of lower grade ore were milled the concentrate stockpiled during the
from the Mupani Mine development routine furnace taphole inspection
Of all the 6E metals only gold production
stockpile. shutdown. The combination of lower
was on an upward trajectory recording a 4
production volumes and higher operating
per cent increase in production from 7 839
Milled tonnes increased by 3 per cent costs resulted in an 8 per cent quarter-on-
ounces produced during the quarter
quarter-on-quarter and year-on-year due quarter and a 13 per cent year-on-year in-
ended 31 December 2020 to 8 144 ounces
to higher running time at the concentrator crease in operating cash costs to US$735
during the same quarter of 2021. Gold
plants. The previous quarter’s milled per 6E ounce.
production also increased by 4 per cent

20| ISSUE 52 >> www.miningzimbabwe.com

 MINING AFFAIRS

Invictus confident of Muzarabani Mimosa production down over 6

per cent
oil potential Sibanye-Stillwater Limited and Impala
Platinum Holdings Limited (Implats)
jointly owned platinum group of metals
(PGM) producer, Mimosa Mining
Company’s half-year production for the
period June to December 2021 decreased
by 6.1 per cent compared to the same
period in 2020.

Rudairo Mapuranga

According to figures released by Implats in

its Production Update and Trading
Statement for the Six Months ended 31
December 2021 Mimosa produced 124 000
ounces during the half-year compared to
132 000 ounces produced during the same
period in 2020 marking a 6.1 per cent
decrease.

Invictus Energy Limited is confident that “We completed the Cabora Bassa 2021
Muzarabani oil and gas project has great seismic survey (CB21 Survey), obtaining
The half-year performance to 31 December
potential due to its encouraging 840km of new high-resolution 2D seismic
2021 means during the whole year of 2021
preliminary seismic results, the company’s data, that is providing greater insight into
the mining company produced 184 714
Managing Director and CEO Scott the subsurface and petroleum potential of
ounces as supported by half-year results
Macmillan has said. the Cabora Bassa Basin.
released by Sibanye-Stillwater last year
indicating that the platinum miner
Rudairo Mapuranga “Early results from CB21 survey processing
produced 60 714 ounces during the six
are highly encouraging, particularly the
months period to June 30, 2021.
According to MacMillan through the strong amplitude anomalies and potential
Mimosa's parent company, Sibanye-Still-
Invictus Energy December 2021 Quarterly Direct Hydrocarbon Indicators observed in
water of South Africa, in a half-year results
Report, the company is on track to the Muzarabani structure and along the
presentation said the platinum company
commence a 2-well drilling campaign in basin margin fault.
maintained a steady performance with an
May and capital raising has been
all-in sustaining cost increase of 8% to $912
completed for the mobilisation of the drill “These results have generated confidence
per 4Eoz due to a 56% increase in
rig and long leads for the 2nd well. for selection of optimal drilling locations
sustaining capital.
ahead of the upcoming campaign.”
During the quarter according to
"Attributable 4E PGM production from
MacMillan, the Cabora Bassa 2021 seismic “The company secured Exalo’s #202 drilling
Mimosa of 60 714 4Eoz was 1% higher than
survey (CB21 Survey) was completed with a rig and ordered long-lead items for a 2 well
for the first half of 2020, with Mimosa
total of 864km of high-resolution 2D program, providing line of sight to the
maintaining a steady performance with
seismic data acquired. A total of 424km of anticipated May 2022 drilling program. The
AISC increasing by 8 per cent due to a 56
data was acquired in SG 4571 (including a company also executed a non-binding
per cent increase in sustaining capital," Mr
24km test line). Following approvals, a farm-in option agreement executed with
Neal Froneman, Sibanye's chief executive
further 440km of contiguous data was Cluff Energy Africa, an endorsement of the
said.
acquired in an existing application area. project given the group’s history and
The CB21 Seismic Survey significantly success in Zimbabwe’s natural resources
Mimosa is among the country's largest
exceeds the Company’s minimum work sector.
three platinum producers namely
program obligations of 300km of 2D
Zimplats and Unki, which are majority-
seismic data for the current licence period, “A capital raising program consisting of a
owned by South African mining giants
which runs to June 2024. placement and a share purchase plan to
Implats and Amplats respectively. Other
fund the rig mobilization fee and long lead
upcoming platinum projects under
items for a second was extremely well
different stages of implementation include
supported by existing shareholders. This
the Great Dyke Investments and Bravura.
enabled the Company to double its
“This has been an excellent quarter for the targeted raise.
Zimbabwe has the world's second-biggest
company, advancing our exploration
known deposits of platinum after South
program on multiple fronts, as we progress The Company is in a strong position and is
Africa with Zimplats’ Mupfuti Mine and
towards our maiden drilling campaign in now firmly focused on the execution of the
Bimha Mine ranked among the world’s ten
May 2022. planned May drilling campaign.”MacMillan
largest platinum mines in 2020 by
said.
GlobalData’s mining database.

21| ISSUE 52 >> www.miningzimbabwe.com

MINING AFFAIRS

Zim, Malawi propose a SADC gemstone marketing centre

Zimbabwe and Malawi gemstone (India, China, Hongkong etc) while Most of to create incentives so that people
miners are proposing to create a the people from Africa are unemployed formalise their operations,” Manda said.
coloured gemstone market-based in the and poor. For example, gemstone mine
Southern African region to combat the Gemfields is mining in Mozambique and He said the creation of a Southern African
exploitation of miners by foreign buyers Zambia but cutting them in India thus marketing unit was important to push out
as well as value-adding the stones. exporting jobs. unscrupulous and unfair traders like some
Chinese who capitalise on people’s poverty
Rudairo Mapuranga “As Africa, we are the source country but to dupe them just like the erstwhile
the most pathetic part is we are the colonisers.
Speaking to the media after a closed-door poorest. As a region, we need to value add
executive meeting held in the capital in our stones to create better markets. We “Some Chinese are not fair even when we
January, Zimbabwe Miners Federation need to have skills when it comes to value partner with them, they are exploiting our
(ZMF) Secretary for Gemstones and Semi addition. Most of the cutters don't care poverty. People are making deals
Coloured Stones Mr Privelage Moyo and about the quality but quantity, we need to because of an empty stomach. We have
Malawi Gemstone Association President perfect our cutting as a continent,” Manda discovered that the best place to sell your
Mr Chikomeni Manda said the two said. stone is in your home country. That's why
countries coloured gemstone sectors we need to create our own markets here so
agreed that there was a need to push the Manda also said that there were a lot of that our people are not defrauded,” he
proper marketing and cutting of coloured policies that Southern African nations were said.
gemstones that are being mined in SADC supposed to learn from Malawi since the
so that jobs will not be exported to Asia like country’s citizens have been mining ZMF secretary for semi-precious stones
what is happening now. gemstones for over 50 years and are said he was going to engage the
experienced in the trade. government to come up with similar
Moyo said there was a need for exchange policies with that of Malawi that allow for
programs to grow and develop the “In Malawi, only a citizen is allowed to mine the timely export of stones. He said the
coloured gemstone industry in the region. at a small scale level, but a foreigner can be creation of a Southern Africa marketing
allowed to buy. centre should also come up with
“As Southern Africa, we need more responsible sourcing of the stones to do
engagement with our sister countries. The “When exporting, there are no questions. away with fraudsters.
growth of Zimbabwe should be the In Malawi, the government is pushing
growth of Malawi or Zambia. There is a people to work together. The government “We heard what is happening in Malawi
need for exchange programs so that at the is very cooperative although sometimes and we need to advocate for our
end of the day we will have a world-class they play politics out of it. The government government to follow a similar path. We
gemstone industry,” Moyo said. is trying to promote cooperatives and fund also need to come up with a controlling
them. body for SADC gemstones. It is us Africans
Manda said there was a need for Africa to who are losing from our coloured
train its cutters to world-class levels to “The government has discovered that gemstones.” Moyo said.
avoid a situation where the majority of the most of the gemstone mining is
stones mined in Africa are cut in Asia happening in rural areas so they are trying

22| ISSUE 52 >> www.miningzimbabwe.com

23| ISSUE 38 >> www.miningzimbabwe.com