• GOLD DELIVERIES ON THE INCREASE, 25% UP FROM SMALL SCALE SECTOR

    ZIMBABWE earned US$381 million in the first half of the year from gold exports after large and small-scale miners delivered 9,6 tonnes of the precious metal to Fidelity Printers and Refiners (FPR), which puts the industry on a solid path to achieve this year’s targeted output of 24 tonnes. Last year, the country generated $684 million from the export of 18,4 tonnes of gold. Inclusive of the gold directly exported by the country’s three pgm (platinum group metals) producers – Mimosa, Unki and Zimplats – who take their ore to South Africa for processing, gold raked in $412 million in the review period. Also, if production from pgm producers is factored in, gold production tops 10,4 tonnes, which is 17 percent higher than the same period a year ago. Overall, total mining revenues in the period rose to US$981,4 million, representing a 0,8 percent rise from a year earlier despite

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  • WHY GOLD IS CONSIDERED SAFE-HAVEN INVESTING: CURRENT TRENDS

    The Chinese are on a massive gold shopping spree. China’s government doesn’t share exact figures, but the vast majority of gold heading into mainland China passes through Hong Kong, which does make its records public. Gold imports to China have surged over 700% since 2010, according to the latest data from Hong Kong. Exactly what China is doing with all that gold remains somewhat of a mystery. The increasingly wealthy Chinese are buying, but that doesn’t explain all the jump in demand. The government says its gold reserves have grown only a little in recent years. Experts question whether China is telling the whole truth. “China has a lot more gold than they declare,” says John LaForge, head of Wells Fargo’s commodities team. China’s big gold binge China now consumes about 40% of the gold that comes out of the ground every year, according to LaForge. The Hong Kong data

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  • Netherlands seeks to market Zim gold

    HARARE – The Netherlands says it wants to help reduce gold leakages in Zimbabwe by stimulating European markets to opt for the yellow metal that is sourced in a sustainable and legal way. Dutch special envoy natural resources, Dirk-Jan Koch, told businessdaily last week that the Netherlands was committed to help revive Zimbabwe’s gold sector. “There is too much illicit gold leaving the country and the Netherlands can play an important part by promoting that European markets distinguish between licit and illicit gold. Zimbabwe can work on the supply side while we can work on the demand side,” he said. This comes as Zimbabwe is estimated to be losing millions in gold leakages on a monthly basis as gold smugglers are taking the yellow mineral across borders in search of higher prices. Mining experts say the mineral is mostly illegally sold in South Africa. Koch, who met senior Mines ministry

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  • Policy to Decriminalize Possession of Gold Mooted

      The Reserve Bank of Zimbabwe (RBZ) is working on a policy to decriminalize the possession of gold by unauthorized persons to curb smuggling and encourage selling of gold to the state, the sole buyer of the precious mineral in the country. RBZ Governor John Mangudya said enhancing responsible gold trading by artisanal miners who make a significant contribution to the country’s gold output would greatly help in boosting production of the precious mineral. “There is need to decriminalize the possession of gold and instead focus on engaging the artisan miners on the norms and principles of responsible gold trading in line with best practice. “To this end, the Reserve Bank, in consultation with the relevant authorities, is currently working on a policy to decriminalize the possession of gold in order to allow those in possession of gold to sell it to Fidelity Printers and Refiners,” the governor said in

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  • Mine Entra roars into life

    AT least 92% of the available space has been taken up as the regional Mining, Engineering and Transport (Mine Entra) exhibition roars into life in Bulawayo today. BY MTHANDAZO NYONI The annual exhibition is set to tackle topical issues such as fiscal incentives, overall growth of the mining sector and mining policy among others. The exhibition ends on Friday. It is held under the theme “Unearthing Opportunities” — a rallying statement challenging inter-dependent sectors to uncover and take advantage of the potential, opportunities and growth prospects in the region’s mining industry and related sectors. ZITF Company chairman Bekithemba Nkomo yesterday told journalists that 160 direct exhibitors had reserved space. Foreign exhibitors are from China, Germany and South Africa. Bookings amount to 4 723 square metres of exhibition space representing 92% of the space available for sale, Nkomo said. Nkomo added the company had organised a number of conferences seeking to

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  • Investors eye mining sector

    Saturday, 04 July 2015 16:25 Zimbabwe’s mining industry is emerging as a main source of investments after receiving project applications from foreign investors worth US$500 million in 2014.   There is a renewed positive investor sentiment for the resources sector with latest data from the Zimbabwe Investment Authority reflecting that several investors are scouting for fresh business opportunities in the resources industry. The data, which also shows that mining investment applications accounted for 50 percent of the US$1 billion worth of foreign direct investments ( FDIs) last year, indicates that foreign investors are mainly interested in the gold, platinum, chrome, nickel, diamond and coal mining units. While over half of the value for the mining sector’s investment applications for the year under review are becoming a reality, an economist Zacks Murerwa says Zimbabwe’s mining industry’s recovery will depend on the ability by the investors to inject funds on the establishment

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  • Government mulls new mining taxation to boost investment

    by The Source THE government has approved the drafting of a new tax regime in mining sector it hopes will help bring investment into the cash-starved sector and plans to overhaul the country’s income tax laws as well, finance minister Patrick Chinamasa said on Monday. Zimbabwe became one of the most expensive countries to mine, with an estimated 60 percent of every dollar earned in revenue going to government after a shock levy hike in 2012 which saw some fees going up by as much as 5,000 percent. Under the existing laws, mining companies pay unit taxes to district councils, a number of taxes to different statutory bodies such as the Environmental Management Agency, Radiation Authority of Zimbabwe and Zimbabwe Revenue Authority. Chinamasa has previously indicated that government would offer incentives such as lower taxes or royalties to companies willing to add value to local minerals. Mining has overtaken agriculture as the

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  • Diasporans, mining engineers partner ZMDC

    A consortium of Zimbabweans living in the Diaspora and local mining engineers have partnered with the Zimbabwe Mining Development (ZMDC) with a view to inject $40 million to resuscitate three gold mines owned by the government mining company. BY FIDELITY MHLANGA/ELIZABETH DUMBRENI ZMDC owns Jena (Silobela), Sabi (Zvishavane) and Elvington (Chegutu) gold mines. Mines and Mining Development deputy minister Fred Moyo confirmed the consortium had signed the memorandum of understanding (MOU) with ZMDC to invest in the defunct gold mines. “When you start negotiating you start by doing the MOU and that has been done, the engineers have been to the mines and have seen the mines,” Moyo said. “They have a working committee in South Africa. We will see them when we go as ministers to South Africa on July 3. They have an offer to a joint venture.” The consortium is set to raise $20 million from internal

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  • Gold Output for Small Scale Miners Doubles

    OUTPUT by small scale miners has almost doubled in the last two to three months due to increased monitoring by government, an official has said. BUSINESS REPORTER An official with the Chamber of Mines of Zimbabwe said the country needs to ensure that gold produced by more than 400 milling plants in the small scale sector is sold through the approved marketing entities. “With increased enforcement and monitoring recently introduced gold contribution by small scale miners have increased from about 250kg per month to over 400kg per month in these last 2 to 3 months,” the official said The official said in order to increase output from small scale miners capital is required to mechanise their operations. “This means to access capital small scale miners have to formalise and register their operations. I am aware of collective action involving the government through the Mines and Mining Development ministry and other

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  • Blanket Mine investment to yield 267% internal rate of return

    A preliminary economic assessment (PEA) on Toronto-listed Caledonia Mining Corporation’s Blanket mine has shown that the mine’s revised investment plan will yield an internal rate of return (IRR) of 267 percent. In a statement, Caledonia said Minxcon Limited, an independent mining consultancy based in South Africa, had completed a scoping level study on the Blanket Mine in the form of the PEA. “The key conclusions arising from the PEA are as follows: the IRR arising from the Revised Plan was calculated at 267 per cent, the net present value (NPV) for the Blanket Mine arising from reserves and the inferred resources used in the Revised Plan was calculated at $147 million; and of the ounces that need to be produced so that the cumulative cash flow arising from the Revised Plan becomes positive (i.e. the “Payback Area”), only 3 per cent will come from resources that are currently classified as

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