• Zimbabwe Mineral Exports Increase by 25% in 9 months

    ZIMBABWE’s mineral export earnings increased by 25,1% to $1,692 billion as at September 15, 2017, buoyed by the increase in all minerals production across the board, Mines and Mining Development minister Walter Chidakwa has said. BY MTHANDAZO NYONI (NewsDay) Addressing delegates at the Zimbabwe Alternative Mining Indaba 2017 in Bulawayo yesterday, Chidakwa said all minerals performed positively in the period under review, except diamonds, which recorded a negative variance. “As of September 15, 2017, cumulative mineral exports from January 2017 stood at $1,692 billion compared to $1,352bn during the same period last year, that is, January to September. This represents an approximately a 25,1% increase,” he said. “Cumulative gold exports, as of September 15, 2017, stood at 14,731 tonnes valued at $631,84 million compared to 14,275 tonnes valued at $575, 978 million during the same period last year. This represents an increase of 3,2% and 9,7% in volume and value

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  • FPR FACILITY UPDATE: $3m utilised from $20m artisanal miners facility

    AT least $3 million has been utilised from the $20 million facility for small and artisanal miners unveiled by the central bank in September this year. BY VICTORIA MTOMBA (Newsday) Presenting a paper on the review of the 2016 monetary policy interventions, the Reserve Bank of Zimbabwe economic research director, Simon Nyarota said the facility was set to increase gold deliveries from smallscale miners to mitigate leakages to the black market and smuggling of gold out of the country. “About $3 million has been utilised by the end of November 2016. Total gold deliveries to Fidelity Printers and Refineries amounted to 15,3 tonnes as at end September 2016, with smallscale producers contributing 42,5%,” he said. Gold is one of the largest foreign currency earners. Output is projected at 22 tonnes this year.   The country has underground gold reserves estimated at 13 million tonnes and 586 tonnes have been mined

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  • Mining Costs Down on Cost-Cutting Measures

    Mining costs down on cost-cutting measures – NewsDay Zimbabwe MINERAL production costs declined in 2016 due to cost-cutting measures that were implemented by the mining sector.BY BUSINESS REPORTER In a State of the Mining Sector Report released on Monday, the Chamber of Mines said the sector had negotiated price reductions with suppliers, labour rationalisation (multi-skilling), retrenchments and negotiated wage reductions. “Most minerals registered declined in production costs in 2016, compared to 2015, with 95% of respondents having reduced their costs in 2016 through the following, among other measures: aggressive value chain optimisation to reduce excessive use of consumables and improved efficiencies,” the report said. The mining sector is expected to prop up production in 2017, as 40% of the respondents were bullish that the sector will grow by at least 5% in 2016.   The report states that 40% of the respondents are bullish, such that the sector will grow

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  • 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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