Zimbabwe Gold Mining and Base Metal Opportunities

8/8/2019 Zimbabwe Gold Mining and Base Metal Opportunities

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Zimbabwe Gold MiningZimbabwe Gold Mining


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y EXTRACT FROM newsday.co.zw 4th December,2010

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QUOTE :- ....... The Chamber of Mines of Zimbabwe (CMZ) wants thegovernment to consider the merits of promoting large mines that enjoyeconomies of scale and greater access to capital and markets, as opposedto numerous small projects exposed to stifling costs of production.

The association of miners, for now , is offering just 15% equity to localinvestors wishing to buy into mining operations instead of the 51%

demanded by the government in a indigenisation law until the countrybuilds its own capital.

Record hyperinflation destroyed Zimbabwes savings base comprisingbanks, insurance companies and pension, mutual funds and wealth funds.

We think initially 15% minimum equity is desirable but in the long term

as we build our own capital, its possible to achieve higher equity stakes.Which means it is possible to have even 100% equity being locallyowned, Victor Gapare, CMZ president, said........ UNQUOTE.

y http://www.newsday.co.zw/article/2010-06-08-chamber-of-mines-zimbabwe-cmz-calls-for-larger

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y EXTRACT FROM newsday.co.zw continued 4th December,2010 :-

y QUOTE : ........We think initially 15% minimum equity is

desirable but in the long term as we build our own capital, itspossible to achieve higher equity stakes. Which means it ispossible to have even 100% equity being locally owned, VictorGapare, CMZ president, said.

In the long run, if Zimbabwe is to benefit from its mineralendowment, it must attract serious risk capital and also buildbigger mines which enjoy economies of scale.

He added that over 50% of Zimbabwes mineral rights were in thehands of blacks and government-owned institutions, particularlythe Zimbabwe Mining Development Corporation, MineralsMarketing Corporation of Zimbabwe and Hwange CollieryCompany Limited.

What must happen is that the people holding these mineralrights must look for partners who will bring in capital and developthese mineral rights.........UNQUOTE .

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http://www.newsday.co.zw/article/2010-06-08-chamber-of-mines-zimbabwe-cmz-calls-for-larger

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y CONTINUED EXTRACT FROM newsday.co.zw

y QUOTE : ...... over 50% of Zimbabwes mineral rights were inthe hands of blacks and government-owned institutions,

particularly the Zimbabwe Mining Development Corporation,Minerals Marketing Corporation of Zimbabwe and Hwange CollieryCompany Limited.

What must happen is that the people holding these mineralrights must look for partners who will bring in capital and developthese mineral rights.

Nearly every mining operation in the country is currentlyhamstrung by working capital constraints and poring eyes onoffshore capital markets already hurt by risk aversion, for solace.

Zimbabwes treasury expects the mining industry, which currentlyaccounts for about 50 % of foreign currency generation and closeto 5% of gross domestic product, to recover 40% this year,

buoyed by gold and platinum....... .UNQUOTE.

y http://www.newsday.co.zw/article/2010-06-08-chamber-of-mines-zimbabwe-cmz-calls-f

or-larger

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y EXTRACT CONTINUED FROM newsday.co.zw :-

y QUOTE : ..... Foreign-owned entities, including those listed on the local bourse,have up to five years to phase in the equity changes and until end of June to

disclose their shareholding to the Ministry of Youth, Indigenisation and EconomicEmpowerment.

Under the broad-based empowerment model the Chamber has proposed, directequity would be limited to 15% with equity-weighted credits making up the balanceup to the statutory threshold of 51%.

The empowerment credits comprise community investments such as infrastructure

spending, social investments, assistance to small-scale miners, local procurement,creation of companies and factories or training and skills development.

The direct equity would be sold rather than ceded through commercial disposals andacquisitions of shares, employee ownership schemes and initial public offerings onthe Zimbabwe Stock Exchange (ZSE).

A source familiar with the consultations says the government has climbed down from

its earlier stance of equity-based indigenisation and empowerment after realisingradical structural changes to the industry may hamper its recovery following ameltdown, which triggered closures and a commodity slump that hit its profitability............ UNQUOTE.

y http://www.newsday.co.zw/article/2010-06-08-chamber-of-mines-zimbabwe-cmz-calls-for-larger


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y EXTRACT FROM INFOMINE ....MINING IN ZIMBABWE.... dated 15th October,2010 :-

y QUOTE : ..... Production in the year through September was5.88 metric tons, worth $224 million, Matyanga said today.y We anticipate 2010 production to rise about 78 percent to 8.8

metric tons, Matyanga said, adding that the output included goldrecovered by platinum miners.

y Zimbabwe produced about 4.9 metric tons of gold in 2009, worth$157 million, which was a 39 percent increase on the previous

year, the economist said.y Electricity shortages remain the biggest challenge to gold miners

in Zimbabwe and most have been forced to invest in dieselgenerators to bridge them during times of power cuts, Matyangasaid. The country needs urgent investment in the energy sectorfor mining to reach its true potential.......... UNQUOTE.

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See : http://www.businessweek.com/news/2010-10-15/zimbabwe-forecasts-gold-output-to-rise-78-this-year.html


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y CONTINUED EXTRACT FROM INFOMINE DATED 15TH OCTOBER,2010

y QUOTE : .........Zimbabwes gold production began to rise afterFinance Minister Tendai Biti allowed producers to sell their gold onthe international market in February last year. Previously gold hadto be sold to the central bank.

y The southern African nation sold 29 tons of gold in 1999, a yearbefore a decade-long recession began. Inflation calculated at 500billion percent by the International Monetary Fund, cuts inelectricity and debt owed to miners by the central banksubsequently closed most Zimbabwean gold producers.

y South Africas Metallon Corp. Ltd. is Zimbabwes biggest goldproducer........UNQUOTE.

y http://www.businessweek.com/news/2010-10-15/zimbabwe-forecasts-gold-output-to-rise-78-this-year.html

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EXTRACT FROM AFRICA the good news dated Monday 29th November,2010.

.QUOTE : .....World Bank to help boost African power by 30GW by 2016

y The World Bank is planning to coordinate funding for 30 gigawatts(GW) of new power generation in Africa over the next five years,a senior official said on Monday.

y "We are not going to finance everything ourselves, but how wecan help leverage financing for that 30 gigawatts of additionalcapacity," Reynold Duncan, the bank's Africa energy specialist,told reporters on the sidelines of power conference.

y All potential projects, including the mammoth Inga hydropowerscheme on the Congo river in Democratic Republic of Congo,would be considered, Duncan added, but gave no details ofspecific project funding...... .UNQUOTE.

y http://www.africagoodnews.com/infrastructure/energy/2314-world-bank-to-help-boost-african-power-by-30gw-by-2016.html


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CONTINUED EXTRACT FROM AFRICA the good news

y UNQUOTE : ........ In a major report last year, the World Banksaid sub-Saharan Africa needed to double its infrastructurespending to $93 billion a year, 15 percent of regional output, todrag its road, water and power networks into the 21st century.

y The region needs an extra 7,000 megawatts of capacity a year tomeet the demand of its 800 million people, who currently haveaccess to the same amount of power as Spain, with a populationof just 45 million.

y Reuters. UNQUOTE.

y http://www.africagoodnews.com/infrastructure/energy/2314-world-bank-to-help-boost-african-power-by-30gw-by-2016.html

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y EXTRACT FROM ALLAfrica.com citing the Zimbabwean Herald dated 29 November,2010 :-

y QUOTE : .....Central African Gold realised more than US$5million in gold sales during the quarter ended September 30, as

the company began to yield positive results since its takeover byNew Dawn Mining.y According to latest statistics, CAG, which is 89 percent controlled

by New Dawn, increased gold production during the third quarterby 27,7 percent to 3 243 ounces.

y The company attributed the increase in production to greatertonnage of ore mined and processed at the Turk and Angelus

Mines and limited production from the Central African Goldproperties,y The development saw gold sales at the mining company

increasing to US$5 million, a 42,5 percent increase on the figurerealised during the second quarter...... UNQUOTE .

y http://allafrica.com/stories/201011290043.html


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y CONTINUED EXTRACT FROM AllAfrica.com :-

y QUOTE :- .....Total sales during the quarter were buoyed by

firm international prices of gold, which averaged US$1 239 perounce compared to US$1 194 obtaining previously.y At New Dawn's 100 percent owned entities -- Turk and Angelus

Mines -- 3 570 ounces of gold were produced during the quarterended September 30, marking a 10 percent increase during thethree months to end of June.

y New Dawn said it expected the CAG properties, Dalny and Old Nic

Mines to contribute an increasing proportion of the consolidatedgold production in future.y The CAG's properties were conducting limited operations or were

on care and maintenance up to June 30, and therefore did nothave any gold production or sales for the period from June 16through to June 30....... . UNQUOTE.

y http://allafrica.com/stories/201011290043.html


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y EXTRACT THE ZIMBABWEAN 30TH NOVEMBER,2010

y QUOTE : ...... HARARE - The mining sector has greatly improvedover the year as it realised a Real Gross Domestic Product of 47per cent, surpassing all other sectors and levelling at a GDPcontribution of 15 per cent.The Minister of Mines and mining development, Obert Mpofu,noted that this year's figure of 15 per cent is very encouragingcompared to 2009's 4.9 per cent figure. "We've even surpassedother sector like agriculture and manufacturing, he said.

In the national budget which was presented at the house ofparliament last week on Thursday, Minister Tendai Biti noted thatthe real GDP growth for the mining and quarrying sector hasrisen from 8.5 per cent in 2009 to an estimate of 47 percent.........UNQUOTE.

y http://www.thezimbabwean.co.uk/index.php?option=com_content&view=article&id=35933:minings-15per-cent-contribution-&catid=43&Itemid=38

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y CONTINUED EXTRCT FROM ZIMBABWEAN :

y UNQUOTE : ..... Biti noted that this increase in GDP growth will

lead to the anticipated economic growth to 8.1 per cent from 5.7per cent in 2009. "Economic growth is, therefore, expected toincrease to 8.1per cent in 2010 from 5.7per cent in 2009. Thestronger performances are in mining and quarrying output, up47per cent, and agriculture, 33.9per cent," said Biti.Biti also noted that the mining sector had the capacity tospearhead the reconstruction of the country and that itis imperative that there is a massive restructuring of the sectorso that the country can process its minerals before exportingthem to realise more profits."There are a number of structural issues that still need to beaddressed before Zimbabwe can fully leverage its resources. Firstand foremost is the conducting of comprehensive geologicalsurveys in order to create a proper and competent database........ UNQUOTE.



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y EXTRACT FROM THE ZIMBAWEAN CONTINUED :-

y QUOTE : ....... Secondly, value addition is critical for the mining

industry. The bulk of our minerals are being exported in rawform," he said.The Chief executive officer of the Chamber of Mines of Zimbabwe,Dr Chris Hokonya, concurred with the minister saying that therewas a dire need for the introduction of a beneficiation industry,which will process the minerals before exporting them becausethe absence of that sector will lead to the continuous low revenuegenerated from heir sector.

"We need an industry to develop that will be the end user of theminerals so that a beneficiation industry may develop. As long asit not there this will always be a problem that will plague till wehave own beneficiation industry," he said. Dr Hokonya said that itwas disappointing that there was still an increase in royalties,saying that this would have a negative impact on the sectorFortunately, the prices are firming but should they fall by sayanother 30 to 40per cent a lot of mines might see the goinggetting tough," he said........ UNQUOTE.


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y Extract FROM PR INSIDE.COM :-

y QUOTE : ...... New market study, "Zimbabwe Mining Report Q4

2010", has been publishedy

Print article Refer to a friend 2010-10-31 18:37:17 - Recentlypublished research from Business Monitor International, "ZimbabweMining Report Q4 2010", is now available at Fast MarketResearch.......

.....The geology of Zimbabwe is very richly endowed with deposits of

chrome, gold, nickel and platinum, among other minerals. Thecountry's gold reserves are among the largest in Africa, while it hoststhe second-largest platinum reserves in the world. Another segmentthat has caught the attention of miners in Zimbabwe is diamonds,following the discovery of a number of significantkimberlites..........UNQUOTE.

y http://www.pr-inside.com/new-market-study-zimbabwe-mining-report-r2216902.htm

Zimbabwe Gold Mining and Base Metal Opportunities

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