Zimbabwe Gold Mining

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

 QUOTE :- “....... The Chamber of Mines of Zimbabwe (CMZ) wants the

government to consider the merits of promoting large mines that enjoy
economies of scale and greater access to capital and markets, as opposed
to numerous small projects exposed to stifling costs of production.

The association of miners, “for now”, is offering just 15% equity to local
investors wishing to buy into mining operations instead of the 51%
demanded by the government in a indigenisation law until the country
builds its own capital.

Record hyperinflation destroyed Zimbabwe’s savings base comprising

banks, 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, it’s possible to achieve higher equity stakes.
Which means it is possible to have even 100% equity being locally
owned,” Victor Gapare, CMZ president, said.......”. UNQUOTE.

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

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

QUOTE
 : “........“We think initially 15% minimum equity is desirable but in the long term as we
build our own capital, it’s possible to achieve higher equity stakes. Which means it is possible to
have even 100% equity being locally owned,” Victor Gapare, CMZ president, said.

“In the long run, if Zimbabwe is to benefit from its mineral endowment, it must attract serious risk
capital and also build bigger mines which enjoy economies of scale.”

He added that over 50% of Zimbabwe’s mineral rights were in the hands of blacks and
government-owned institutions, particularly the Zimbabwe Mining Development Corporation,
Minerals Marketing Corporation of Zimbabwe and Hwange Colliery Company Limited.

“What must happen is that the people holding these mineral rights must look for partners who will
bring in capital and develop these mineral rights.”........”UNQUOTE .

http://www.newsday.co.zw/article/2010-06-08-chamber-of-mines-zimbabwe-cmz-calls-for-larger
CONTINUED EXTRACT FROM newsday.co.zw

QUOTE
 : “...... over 50% of Zimbabwe’s mineral rights were in the hands of blacks and
government-owned institutions, particularly the Zimbabwe Mining Development Corporation,
Minerals Marketing Corporation of Zimbabwe and Hwange Colliery Company Limited.

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

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

Zimbabwe’s treasury expects the mining industry, which currently accounts for about 50 % of
foreign currency generation and close to 5% of gross domestic product, to recover 40% this
year, buoyed by gold and platinum.......”.UNQUOTE.

http://www.newsday.co.zw/article/2010-06-08-chamber-of-mines-zimbabwe-cmz-calls-for-larger

 EXTRACT CONTINUED FROM newsday.co.zw :-
 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 Economic
Empowerment.

Under the “broad-based empowerment” model the Chamber has proposed, direct
equity would be limited to 15% with equity-weighted credits making up the balance
up 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 and
acquisitions of shares, employee ownership schemes and initial public offerings on
the 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
realising radical structural changes to the industry may hamper its recovery
following a meltdown, which triggered closures and a commodity slump that hit its
profitability. ..........”. UNQUOTE.

 http://
www.newsday.co.zw/article/2010-06-08-chamber-of-mines-zimbabwe-cmz-calls-for
-larger
EXTRACT FROM INFOMINE “....MINING IN ZIMBABWE....” dated 15 th October,2010 :-

QUOTE
 : “..... Production in the year through September was 5.88 metric tons,
worth $224 million, Matyanga said today.
“We anticipate 2010 production to rise about 78 percent to 8.8 metric tons,”

Matyanga said, adding that the output included gold recovered by platinum
miners.
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.
“Electricity shortages remain the biggest challenge to gold miners in Zimbabwe

and most have been forced to invest in diesel generators to bridge them during
times of power cuts,” Matyanga said. “The country needs urgent investment in
the energy sector for mining to reach its true potential.”........”. UNQUOTE.

See
 :
http://www.businessweek.com/news/2010-10-15/zimbabwe-forecasts-gold-outp
ut-to-rise-78-this-year.html
CONTINUED EXTRACT FROM INFOMINE DATED 15TH OCTOBER,2010

QUOTE
 : “.........Zimbabwe’s gold production began to rise after Finance
Minister Tendai Biti allowed producers to sell their gold on the international
market in February last year. Previously gold had to be sold to the central
bank.
The southern African nation sold 29 tons of gold in 1999, a year before a

decade-long recession began. Inflation calculated at 500 billion percent by
the International Monetary Fund, cuts in electricity and debt owed to miners
by the central bank subsequently closed most Zimbabwean gold producers.
South Africa’s Metallon Corp. Ltd. is Zimbabwe’s biggest gold

producer.......”.UNQUOTE .

http://www.businessweek.com/news/2010-10-15/zimbabwe-forecasts-gold-output-to-rise-78-this

-year.html

 EXTRACT FROM AFRICA the good news dated Monday 29th November,2010.

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

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.
"We are not going to finance everything ourselves, but how we can help
leverage financing for that 30 gigawatts of additional capacity," Reynold
Duncan, the bank's Africa energy specialist, told reporters on the sidelines
of power conference.
All potential projects, including the mammoth Inga hydropower scheme on
the Congo river in Democratic Republic of Congo, would be considered,
Duncan added, but gave no details of specific project
funding......”.UNQUOTE.

http://www.africagoodnews.com/infrastructure/energy/2314-world-bank-to-help-boost-af
rican-power-by-30gw-by-2016.html
CONTINUED EXTRACT FROM AFRICA the good news

 UNQUOTE : “ ........ In a major report last year, the World Bank said
sub-Saharan Africa needed to double its infrastructure spending to $93
billion a year, 15 percent of regional output, to drag its road, water and
power networks into the 21st century.
 The region needs an extra 7,000 megawatts of capacity a year to meet
the demand of its 800 million people, who currently have access to the
same amount of power as Spain, with a population of just 45 million.
 Reuters. UNQUOTE.

 http://www.africagoodnews.com/infrastructure/energy/2314-world-bank-to-help-bo
ost-african-power-by-30gw-by-2016.html
EXTRACT FROM ALLAfrica.com citing the Zimbabwean Herald dated 29 November,2010 :-

QUOTE
 : “.....Central African Gold realised more than US$5 million in
gold sales during the quarter ended September 30, as the company
began to yield positive results since its takeover by New Dawn Mining.
According to latest statistics, CAG, which is 89 percent controlled by

New Dawn, increased gold production during the third quarter by 27,7
percent to 3 243 ounces.
The company attributed the increase in production to greater tonnage

of ore mined and processed at the Turk and Angelus Mines and limited
production from the Central African Gold properties,
The development saw gold sales at the mining company increasing to

US$5 million, a 42,5 percent increase on the figure realised during the
second quarter......” UNQUOTE .

http://allafrica.com/stories/201011290043.html

CONTINUED EXTRACT FROM AllAfrica.com :-

QUOTE :- “.....Total sales during the quarter were buoyed by firm

international prices of gold, which averaged US$1 239 per ounce compared
to US$1 194 obtaining previously.
At New Dawn's 100 percent owned entities -- Turk and Angelus Mines -- 3
570 ounces of gold were produced during the quarter ended September 30,
marking a 10 percent increase during the three months to end of June.
New Dawn said it expected the CAG properties, Dalny and Old Nic Mines to
contribute an increasing proportion of the consolidated gold production in
future.
The CAG's properties were conducting limited operations or were on care
and maintenance up to June 30, and therefore did not have any gold
production or sales for the period from June 16 through to June 30.......”.
UNQUOTE.
http://allafrica.com/stories/201011290043.html
EXTRACT THE ZIMBABWEAN 30TH NOVEMBER,2010

QUOTE
 : “...... HARARE - The mining sector has greatly improved over the year as it
realised a Real Gross Domestic Product of 47 per cent, surpassing all other sectors
and levelling at a GDP contribution 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 encouraging compared to 2009's 4.9 per cent figure.
"We've even surpassed other sector like agriculture and manufacturing,” he said.
In the national budget which was presented at the house of parliament last week on
Thursday, Minister Tendai Biti noted that the real GDP growth for the mining and
quarrying sector has risen from 8.5 per cent in 2009 to an estimate of 47 per
cent........”.UNQUOTE.

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


CONTINUED EXTRCT FROM ZIMBABWEAN :

UNQUOTE
 :”..... Biti noted that this increase in GDP growth will lead to the
anticipated economic growth to 8.1 per cent from 5.7 per cent in 2009.
"Economic growth is, therefore, expected to increase to 8.1per cent in 2010
from 5.7per cent in 2009. The stronger performances are in mining and
quarrying output, up 47per cent, and agriculture, 33.9per cent," said Biti.
Biti also noted that the mining sector had the capacity to spearhead the
reconstruction of the country and that it is  imperative that there is a
massive restructuring of the sector so that the country can process its
minerals before exporting them to realise more profits.
"There are a number of structural issues that still need to be addressed
before Zimbabwe can fully leverage its resources. First and foremost is the
conducting of comprehensive geological surveys in order to create a proper
and competent database. .......” UNQUOTE.

http://www.thezimbabwean.co.uk/index.php?option=com_content&view=art

icle&id=35933:minings-15per-cent-contribution-&catid=43&Itemid=38
EXTRACT FROM THE ZIMBAWEAN CONTINUED :-

QUOTE
 : “....... Secondly, value addition is critical for the mining industry. The bulk of our
minerals are being exported in raw form," he said.
The Chief executive officer of the Chamber of Mines of Zimbabwe, Dr Chris Hokonya,
concurred with the minister saying that there was a dire need for the introduction of a
beneficiation industry, which will process the minerals before exporting them because the
absence of that sector will lead to the continuous low revenue generated from heir sector.
"We need an industry to develop that will be the end user of the minerals so that a
beneficiation industry may develop. As long as it not there this will always be a problem that
will plague till we have own beneficiation industry," he said. Dr Hokonya said that it was
disappointing that there was still an increase in royalties, saying that this would have a
negative impact on the sector “Fortunately, the prices are firming but should they fall by say
another 30 to 40per cent a lot of mines might see the going getting tough," he said........ “
UNQUOTE. 

http://www.thezimbabwean.co.uk/index.php?option=com_content&view=article&id=35933:m

inings-15per-cent-contribution-&catid=43&Itemid=38

Extract FROM PR INSIDE.COM :-

QUOTE : “...... New market study, "Zimbabwe Mining Report Q4 2010", has
been published

Print article Refer to a friend 2010-10-31 18:37:17 - Recently published
research from Business Monitor International, "Zimbabwe Mining Report Q4
2010", is now available at Fast Market Research.......

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

gold, nickel and platinum, among other minerals. The country's gold reserves
are among the largest in Africa, while it hosts the second-largest platinum
reserves in the world. Another segment that has caught the attention of
miners in Zimbabwe is diamonds, following the discovery of a number of
significant kimberlites.........”.UNQUOTE.
 http://www.pr-inside.com/new-market-study-zimbabwe-mining-report-r2216902.htm