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Zimbabwe's revived economy is sparking a clutch of re-openings and expansions in the mining sector. For an analysis, see

Below are a list of companies and assets in the sector.

 

PLATINUM

 

 

-- Zimbabwe has the world's second-biggest deposits of platinum group metals in the Great Dyke formation that runs about 550 km through the country.

 

 

* Impala Platinum

Implats, the world's second-biggest platinum producer, controls the country's largest platinum mine through Zimplats . It recently said it planned to go ahead with its $500 million expansion project to lift annual output by 50 percent to 270,000 ounces of platinum.

 

 

* Anglo Platinum

Angloplat, the world's top platinum producer is due to launch production at its Unki mine in October, which will eventually produce 65,000 ounces per year.

 

 

* Aquarius Platinum

Aquarius, the world's No. 4 platinum miner, has a 50-50 joint venture with Implats for the Mimosa mine, which is expected to produce 200,000 ounces of platinum group metals in the fiscal year to June, up from 180,000 the previous year.

 

ENRC

 

 

Kazakh miner ENRC owns 60 percent of the Bokai platinum project, which is undergoing a feasibility study. The first stage is expected to produce 163,000 ounces of platinum group metals in concentrate per year.

 

GOLD

 

 

-- Zimbabwe aims to more than double gold output to 20 tonnes a year in two to five years, the mining chamber said last month.

 

 

* Mwana Africa

Mwana Africa reopened the Freda Rebecca last year and aims to increase production to more than 50,000 ounces of gold a year by the end of September.

 

 

* Duration Gold

Privately held Duration Gold owns 112 gold deposits and mines with total historic production of 5.6 million ounces. It is reopening mothballed operations and aims to produce 100,000 ounces of gold a year by 2012.

 

 

* New Dawn

Canada's New Dawn Mining Corp announced a deal on June 16 to acquire a majority of Central African Gold and consolidate the firms' seven mines. It aims to produce 50,000-60,000 ounces of gold within two years and eventually expand to as much as 250,000 ounces

 

 

* RioZim

RioZim said it planned to increase output at its Renco gold mine to 70,000 ounces by 2013 from 24,000 ounces this year and aimed to reach 112,000 ounces by 2015 following new investment.

 

NICKEL/COPPER/FERROCHROME

 

 

* Bindura Nickel Corp

Bindura, majority owned by Mwana Africa, is the only integrated nickel miner, smelter and refinery in Africa. It was shut down in November 2008 and Mwana is seeking to raise finance to reopen the firm's Trojan mine before the rest of the complex.

 

 

* RioZim

RioZim aims to refurbish its Empress nickel refinery, which refines nickel and copper matte from Botswana. It also hopes to start chrome mining in a joint venture project and produce 30,000 tonnes of chrome concentrate a year from 2012.

 

 

* Zimasco

Zimasco, owned by Chinese mining and trading group Sinosteel Corp, has a capacity of around 200,000 tonnes of ferrochrome annually, making it the country's biggest ferrochrome producer.

 

DIAMONDS

 

 

* Rio Tinto

Rio Tinto owns 78 percent of the Murowa diamond mine, and RioZim owns the rest. Rio has begun work on a $300 million expansion programme to raise capacity sixfold. Capacity is 300,000 carats a year, but output was only 124,422 carats last year.

 

 

* Marange

Sales of diamonds from the Marange fields have been mired in controversy. The watchdog Kimberley Process failed to agree this month to suspend trade after calls from civil society groups to address human rights abuses at the fields.

 

COAL

 

 

-- According to Chamber of Mines figures, Zimbabwe's coal output has sharply declined from nearly 6 million tonnes in the 1990s to just over 1.667 million tonnes in 2009.

 

 

* Hwange

The decline in coal output is largely due to lack of funds to recapitalise the Hwange Colliery Company, in which the cash-strapped Zimbabwe government is the largest single shareholder, with 43 percent.

 

 

* RioZim

RioZim owns the Sengwa coal mine in north-western Zimbabwe in a 50-50 joint venture with Rio Tinto. Small-scale mining at Sengwa, which produced 25,000 tonnes per month for the local tobacco industry, was stopped in May 2008 at the peak of Zimbabwe's economic crisis. Sengwa has proven ore reserves of 519 million tonnes and a total resource of 1.3 billion tonnes. RioZim says Sengwa coal is best suited to support a thermal power station, and the firm is currently holding discussions with undisclosed potential investors interested in setting up a coal-fired 2,400 MW power plant at the mine.

 

http://www.iii.co.uk/news/?type=afxnews&am...;action=article

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Canadile Builds Diamond Center in Zimbabwe

 

Canadile Resources, which operates from Zimbabwe’s Marange diamond fields, is constructing a $20 million cutting and polishing center in the country. It is slated to open within the next six months and the company estimated that it will create about 7,000 jobs. Cougan Matanhire, the chairman of Canadile, said that the center would enable the country to funnel all of its rough diamond streams to one professional, secure area.

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September 09, 2010

Central African Gold's Old Nic and Dalny Mines in Zimbabwe Transition from Care and Maintenance to Resumption of Gold Production

 

http://www.newdawnmining.com/s/NewsRelease...sition-from-C...

 

Seems to have lit a fuse under the s.p last few days, very nice.

 

See footnote

 

New Dawn owns and operates the Turk and Angelus Mines in the upper southwest area of Zimbabwe that has the potential to produce an estimated 35,000 to 50,000 ounces of gold per annum. New Dawn owns the property outright on which these mines are located.

 

New Dawn is currently developing a revised and updated strategic business plan in light of its acquisition of a controlling interest in CAG, with a view towards reaching consolidated annualized gold production of 50,000 to 60,000 ounces within the next 18 to 24 months, increasing to 100,000 ounces within four to five years, and then ultimately to 200,000 to 250,000 ounces.

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Mwana Africa close to refinancing deal

 

AIM-listed pan-African miner Mwana Africa says it is close to a loan deal with potential financiers for the reopening of Bindura Nickel Corporation (BNC)’s discontinued operations, buoyed by SRK’s Competent Person’s Report on the restart of operations at Trojan.

 

The multi-commodity company also said gold production at Freda Rebecca was on a systematic ramp-up.

 

Mwana Africa said this at the end of its annual general meeting in London on Tuesday.

 

“The recent completion of the SRK Competent Person’s Report on the restart of operations at Trojan has enabled Mwana to advance discussions with financiers and off-takers,” the company said in a statement.

 

“Indicative terms have now been offered for the purchase of nickel concentrate and for the provision of loan funding for a significant proportion of restart and restructuring costs and for the purchase of nickel concentrate.

 

Negotiation of these offers is in progress.”

Mwana says it requires $100 million to reopen BNC’s Trojan Mine, Shangani Mine and Bindura Smelter and Refinery, which were put under care-and-maintenance in November 2008 as a result of the economic situation in Zimbabwe and a sharp decline in the price of nickel.

 

BNC is Zimbabwe’s sole primary producer of nickel.

 

In August, the miner disclosed to shareholders it would require close to $26 million to complete the Trojan project, the first to come back on stream according to the company’s schedule of projects.

 

The Trojan Nickel Mine is located at the BNC operations at Bindura in Mashonaland central province together with the smelter and refinery complex.

 

http://www.newsday.co.zw/article/2010-09-1...efinancing-deal

 

Noticed elsewhere a Fairfax broker comment about high mine costs being disappointing.

 

Whilst this financing seems to have dragged on some time now. Perhaps explains the slight sell off from the rise on anticipated news. No doubt frustrating for bulls. But maybe turning a corner soon?

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Zimbabwe's revived economy is sparking a clutch of re-openings and expansions in the mining sector. For an analysis, see

 

To counter all that

 

Stay away, Mugabe tells indigenisation critics

 

"Some would say we will lose investment. Which investment? If people don’t want to come on those terms then let them stay out, they are not good for us,” said Mugabe.

 

.....critics fear that the economic empowerment is a ploy by Mugabe to reward his allies and supporters with thriving businesses in the same way his top backers in his ZANU PF party and the military were rewarded with the best farms grabbed from whites.

Large multinational corporations such as cigarette manufacturer BAT Zimbabwe, which is 80 percent British-owned; UK-controlled financial institutions Barclays Bank and Standard Chartered Bank, food group Nestlé Zimbabwe, mining giants Rio Tinto and Zimplats, and AON Insurance are some of the big foreign-owned firms that will be forced to cede control to locals.

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Caledonia's Zim mine could reach 40 000 oz/y by year-end

 

 

 

http://www.4castresearch.com/mining-sector...-year-end-.html

 

Notice these had a bit of a run last year, performing better than others with Zim interests. Narrowly missed the 40,000 oz target on results. The s.p has stalled a bit, maybe the Chairmans resignation didn't help?

 

This says it all though contained in 3rd Qtr resluts from Nov and maybe real reason for the stall

 

Blanket's cash costs decreased significantly from US$816 per ounce in the second quarter to US$651 per ounce in

the third quarter. We expect that Blanket's cash costs will continue to decrease as production increases to an

annualized level of approximately 40,000 ounces of gold per annum by the end of 2010, following the

commissioning of the No. 4 Shaft Expansion Project at the end of third quarter.

 

Provided a satisfactory investment climate is created in Zimbabwe and the Zimbabwean indigenization

requirements and obligations are finally clarified and economically viable <_< , Caledonia intends to make the

significant capital investments in Blanket, which are required to sustain gold production at 40,000 ounces per

annum.

 

With Mwana(MWA)also going backwards of late. Perhaps like New Dawn (ND.), CMCL also offer good prospects the day Zim finally becomes investment friendly.

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New Dawn Provides Update to Shareholders on its Zimbabwe Indigenisation Plans

 

.....In light of the current uncertainty surrounding the implementation of the indigenisation regulations over a short timeframe, management of New Dawn believes that the Company's current share price, which has lost substantial value since the indigenisation regulations were gazetted on March 25, 2011, is now well below fair value and does not reflect the Company's inherent value or potential. To the extent that the Company is able to obtain Zimbabwe government approval for its indigenisation plans and arrange for equity-based transactions reflective of fair value with qualified indigenous investors, <_< the elimination of this uncertainty with respect to indigenisation and the additional operating capital that would be provided by indigenous investors would be expected to have a positive impact on the Company, and would provide additional working capital to support New Dawn's efforts to increase its gold production to 100,000 ounces of gold on an annualized basis within the next four to five years.

 

 

http://www.newswire.ca/en/releases/archive/April2011/27/c7131.html

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Hmmmm battling eh. Well you know why the s.p has been struggling along pas few months now.

 

JOHANNESBURG (miningweekly.com) – Aim-listed Mwana Africa will raise £9,27-million from existing and new institutional investors to fund its drilling programme and to provide finance to keep its BNC mines in Zimbabwe on care and maintenance.

 

The company has conditionally placed 185 425 548 shares at 5p a share.

 

"Today's fundraising will support our exploration programme at our promising gold and base metals assets in the Democratic Republic of Congo, while we continue the successful ramp-up of gold production at the Freda Rebecca mine in Zimbabwe,” CEO Kalaa Mpinga said.

 

He added that the care and maintenance programme would continue to maintain the integrity of Mwana’s assets at Bindura, while it continued to seek finance to restart the operations.

 

BNC owns and operates the Shangani and Trojan nickel mines, which have hoisting and treatment capacity of one-million tons and 1,1-million tons a year, respectively.

 

The Shangani and Trojan mines and the Bindura smelter and refinery complex were placed on care and maintenance in November 2008 as a result of continued production difficulties and a sharp decline in the price of nickel at the time.

 

Mwana plans to restart the BNC assets in a phased manner once it had secured financing

 

http://www.miningweekly.com/article/mwana-raises-funding-to-support-drc-exploration-programme-2011-05-24

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Friday, 20 May 2011 14:19

HARARE – African Consolidated Resources (ACR) said it will not comply with Zimbabwe’s controversial indigenisation law just yet – insisting its operations are still in exploration phase.

 

“Since the businesses of Canape and of all its subsidiaries are in exploration phase financed by loans from ACR or other group companies, none of Canape or its subsidiaries has a net asset value of or above one United States dollar. In the response, Canape has stated this fact and added that it will take such steps as it can to comply with any indigenisation law in force from time to time,” an ACR spokesperson said

 

Kasukuwere has warned mining firms refusing to comply with the regulations that the government would “not hesitate to ask them to cease operations as there is no going back in ensuring that Zimbabweans benefit from their natural resources”.

 

The companies that have so far complied with the government’s directive include Unki Mine run by South African company Anglo Platinum, the Rio Tinto-run Murowa Diamond Mine, Canadian-owned New Dawn Mine, and Freda Rebecca Mine and Bindura Nickel Mine that are both operated by pan-African resources company Mwana Africa.

http://www.thezimbabwean.co.uk/index.php?option=com_content&view=article&id=39794:no-indigenisation-just-yet--acr&catid=28:business-news&Itemid=38

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Kimberley ends Marange diamonds ban

http://www.miningmx.com/news/diamonds/Kimberley-ends-Marange-diamonds-ban.htm

 

THE Kimberley Process has decided to lift a freeze on the sale of diamonds from Zimbabwe's disputed Marange fields, the head of the global "blood diamonds" monitor told AFP.

"We have decided to lift the measure which prevented Zimbabwe from exporting its diamonds in the Mbada and Kanadai mines in the Marange region," in eastern Zimbabwe, Mathieu Yamba, chairperson of the Kimberley Process said on Thursday.

"A team of two monitors will visit other mines to see if they conform to the Kimberley Process before giving the green light to the lifting of a ban on exports," he said

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With 2013 Elections gone, thought I'd revisit this old thread and have a look at the fotunes of some of my old favourite Zim plays.

 

All i can say is well done old Bob, the thread title could not be more apt near 6 years on! :(

 

N.D is treading water around 0.3 - 0.35c! Way down on highs that were so rewarding back in 2009/10.

 

Why? obvious - see N.R 18th Jul, 2013 "announced that it has initiated a wide-ranging cost reduction program aimed at reducing cash operating costs at its five operating gold mines in Zimbabwe. The Company currently employs approximately 3,000 people at these mining operations in Zimbabwe."

 

See in full http://www.newdawnmining.com/new-dawn-announces-the-implementation-of-initiatives-to-reduce-operating-costs-in-zimbabwe-and-canada

 

Sadly Old bob seems happy for these guys to shut up shop and 3,000 workers lose their jobs, as that's the way they seem to be heading.

 

So what of Mwana? Reaching all time lows at 1.10 on Aim and going lower maybe?

 

Plenty of upbeat operations talk in latest results, but then there is the falling commodity prices, which seem largely the blame for recapitalisation needs, rather than operational issues (hmm right). The need for restructuring and no guarantees of success seem the main drag on price going forward and hence it's current low.

 

All a bit depressing considering the supposed assets!

 

Meanwhile be interesting what comes of the pre election the indigenisation plans, one estimate put the cost to mining so far as far outweighing the benefits.

At the height of implementation of the Indigenisation Act, mining expert Chris Hokonya said Zimbabwe had lost close to US$4 billion revenue from potential mining operations due to indigenisation.

“Translated into tax dollars, we are looking at 4 to 5% of that in terms of royalties,” Hokonya said in April last year.

Hokonya, who is former Chamber of Mines CEO, said companies had been in waiting mode because of the danger posed by indigenisation.

http://www.theindependent.co.zw/2013/08/02/new-zimbabwe-government-needs-to-review-indigenisation/

 

Sad Zim ming thread indeed.

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