• 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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  • Zimbabwe Government Guarantees $100 million Small Scale Miners Loan

    The government has approved a guarantee for small scale miners to access a US$100 million line of credit from a Chinese Developmental Bank. Small scale miners are expected to access the credit line facility from a Chinese bank after the government resolved to provide a guarantee as collateral in getting the loans. The Minister of Finance and Economic Development, Cde Patrick Chinamasa said the guarantee will enable the global financier to get assurance in terms of recovering funds in the event of default by some beneficiaries. “We have now approved all the necessary requirements and it is our hope for success,” said Cde Chinamasa. In terms of the facility, small scale miners are expected to get loans towards the purchasing of new equipment and are required to expand production and increase earnings. The government is implementing policies to recapitalise the small scale mining industry as evidenced by the reduction in

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  • Gold Producers To Get Capital Injection

    The government is set to roll out a financial capacitating programme for twenty identified medium scale gold producers as part of efforts to revitalise the gold sub-sector. Mines and Mining Development Minister Walter Chidhakwa says that apart from rejuvenating the operations of the country’s top ten gold producers, the government has identified twenty medium scale gold producers to be capacitated under the Productive Sector Finance facility. “We should look at those areas where we can have quick wins. As government, we will be capacitating twenty identified medium scale gold producers with working capital. The programme will be implemented from January 2015,” he said. Market analysts estimate that at least five to seven billion dollars is required for the recapitalisation of the country’s mining sector over the next five years. In face on the limited domestic financial resources observers say mining firms should consider innovative ways of capital for their operations.

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  • Gold Production To Increase

    Friday, 14 November 2014 17:13 The government has unveiled new measures to increase gold production and effectively account for sales to Fidelity Printers and Refiners.   Concern is being raised that despite the rebound in gold production to levels above 10 tonnes since 2009, current deliveries to Fidelity are still below pre-millenium rates that exceeded 20 tonnes. Government has therefore introduced new policies to increase gold capacity such as an   establishment of a gold compliance unit, setting up of gold service centres, introduction of artisanal mining permits, registration of milling plants and the setting up of provincial advisory boards. The Minister of Mines and Mining Development, Cde Walter Chidhakwa, says the new measures are also aimed at facilitating increased gold production. “We are introducing the new measures for the benefit of the gold mining industry,” said Cde Chidhakwa. The government is introducing the new measures to ensure that Zimbabwe

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  • Zim Set for LBMA Return as Gold Refinery Exceeds Threshold

    Zimbabwe is expected to have access to global gold buyers with effect from next year after exceeding the 10 tonne requirement to be re-accredited into the London Bullion Market Association (LBMA).   Gold production is on a rebound with figures from Fidelity Printers and Refiners showing that the nation has since January this year produced 11.11 tonnes of the yellow metal. The development has resulted in the government and Fidelity majority shareholder, the Reserve Bank of Zimbabwe, submitting proposals for re-entry into the LBMA next year. An economic commentator Mrs Letina Undenge says the re-accreditation of the country into the LBMA will enable the government to increase earnings from gold and attract more investments. “It is something that can help unlock opportunities in the economy,” she said. Zimbabwe was de-registered by the LBMA after production fell to below three tonnes in 2008. However, there is optimism by the Chamber of

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  • Mining Sector to Grow 6pc, Minister

    MINES Minister Walter Chidhakwa said Thursday Zimbabwe’s mining sector is projected to grow by an average six percent this year, reversing earlier projections of negative growth in the sector. Chidhakwa told delegates attending a diamond mining conference that the sector had been the most dynamic sectors of Zimbabwe’s economy over the last five years, leading the country’s 2009-11 economic rebound with average annualised growth of 35 percent. The mining sector contributes 45 percent to the country’s exports and 3 billion U.S. dollars to Gross Domestic Product (GDP). “The sector is projected to grow by an average of six percent in 2014. Its contribution to the country’s GDP has seen a phenomenal rise from 4 percent in the 1990s to 16 percent in 2013 and a projected share of 17 percent in 2014,” Chidhakwa said. His projections contradict a -1.9 percent growth projection that was announced by finance minister Patrick Chinamasa

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  • New minerals policy on the cards

    The government is crafting a new minerals development policy to facilitate infrastructure development in the country. The minerals development policy seeks to ensure that the acquisition of mining rights is done in an easier and more transparent manner as well as enhance the protection of both the investor and the nation in the exploration of minerals. In his presentation on “Creating a Conducive Environment for Investment in Mining and Minerals Beneficiation through Appropriate Legislation and Policies” at the pre-budget seminar for parliamentarians in Victoria Falls, Mines and Mining Development Deputy Minister, Cde Freddy Moyo, said the new policy also seeks to create a national minerals balance sheet through effective exploration. He said the new policy will allow for the participation of small scale miners in empowering communities and highlighted the importance of working with other ministries which include Home Affairs, Environment, Water and Climate as well as Finance and Economic

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  • Exploration way to go for mining

    The mining sector has potential to turnaround the economy, if investment is channelled towards exploration and new mining development, a senior Chamber of Mines official (CoM) said. Zimplats CEO, Alex Mhembere Zimplats chief executive and CoM president Alex Mhembere told delegates attending the 6th Mining and Infrastructure Indaba in Harare yesterday that approximately 60% of the country’s land surface comprises of vast mineral resources not yet adequately quantified. “There has been a significant increase in mineral production since 2009 but growth is expected to moderate due to the lack of capital investment in mineral development and exploration.” Government recently resuscitated the Mining Promotion Corporation (MPC), an exploration company set to enhance efforts in quantifying the country’s mineral resources and reserves for mining development. Mines and Mining Development minister Walter Chidhakwa expects the company to complement exploration efforts by private players as government search for partners in exploration. “As the State,

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