Zim mining review issue 1 2015 by ZIM Mining Review

ZIMBABWE

issue 1 2015

& ENERGY

REVIEW

magazine

KALAA MPINGA

The Mining Mogul Behind Mwana

RICH DEPOSITS BECKON INVESTORS MULTINATIONALS SCRAMBLE FOR ZIMBABWE’S MINERAL WEALTH LATEST REPORT:

BNC Back on Track

CONTENTS

issue 1 2015

Editor’s note

LEADER 8

Mpinga’s growing ambition in Zim

Zim turns into coal hotspot

ZIMBABWE MINING REVIEW issue 1 2015

ENERGY 20

Global powers gun for Zimâ&#x20AC;&#x2122;s minerals

Zim battles for investors in gas discoveries

ZITF Company Profile

Gas as potential aid for Zim

MINING 36

Mining for Goodwill

Masimba Holdings Company Profile

Robust Growth at BNC

ZIMBABWE MINING REVIEW issue 1 2015

From the

EDITOR Power, Power and more power! Our neighbouring continental giant is going through one of its worst period with rolling blackouts across the entire country. Power utility Eskom said that some of their powers generating units were due for their cyclic maintenance. To compound the problem, some of its coal plants were operating below capacity because of problems with the storage and delivery of coal. Now the Finance Minister Nlhanhla Nene has projected a decrease to the country’s GDP partly due to the problems associated with power blackouts. This has hit the industry hard. Manufacturers, miners include have had to revise their annual production output with a net result of a massive drop to the initially projected GDP. This is an indication that power is key to economic growth for any country. Zimbabwe has seen the worst. In as much as the country must move with haste to see through the pronouncements made by Finance Minister Patrck Chinamasa in his budget speech, pushing through policy pronouncements hold key to developments in the country’s energy sector. On another note, the Mzi Khumalo owned Metallon Gold continues to post impressive results and their outlook is interesting. The group aims to increase output from to about 150 000 ounces. This is 15 000 more than the group’s output of 135 000 in 2014. This, is indeed good news for the industry. The Metallon Gold story is but one of many in a depressed economy that is ours. I am already looking forward to the next edition. This is so because of the many issues we will focus on. We also want to hear from you. You lead a company in the mining and energy sectors? Email back if you want to feature in our next edition. Till next time,

Grivin grivin@primediazw.com

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©2015. All work published in Experience Zimbabwe magazine is protected by copyright. Only with written permission from the publisher may any part of this magazine be reproduced or adapted in any form. The information provided and opinions expressed in Experience Zimbabwe magazine do not necessarily represent the opinions of this publication, the publisher or the editor. The publication, the publisher and the editor cannot be held liable for damages of any kind arising directly or indirectly from any facts or information provided or omitted in these pages or from any statements made or withheld by this publication.

ZIMBABWE MINING REVIEW issue 1 2015

The Billion Dollar

COAL RUSH Global players across the coal industry have their sights fixed on Zimbabwe’s enviable deposits - SHAME MVUNDURA in Harare takes a closer look at what’s happening in the country’s coal hotspots

ZIMBABWE MINING REVIEW issue 1 2015

nvestors with deep pockets are scouring outback locations in Zimbabwe’s coal-rich Matabeleland region, in the process challenging the dominance of tri-listed Hwange Colliery Company Limited, which has been mining in the belt for decades. The rush for Zimbabwean coal by multinational corporations from all corners of the world has been spurred on by a spike in local and global demand. While the southern African country has dominated global headlines for its alluvial diamond deposits in the Marange gem fields to the east near the Mozambique border, there has been a quiet, under-reported rush for the country’s 15 billion metric tonnes of coal deposits. They are estimated to be in several deposits, which have effectively turned Zimbabwe into a coal hotspot. Many analysts are projecting that after the diamond rush in the mid 2000s, which attracted mostly Chinese and State investment, coal is the next big thing in Zimbabwe. At least US$10 billion is destined for several mines in the rich coalfields, which are now attracting investors even from Britain, according to information gathered during research for this article. Analysts expect most of the country’s coalfields, which were seen producing five million tonnes in 2014, to continue attracting global attention as local demand swells in the wake of depleted power output from hydro electricity production, and a spike in international demand. The Zimbabwe government is currently undertaking a US$553 million upgrade of the Kariba south hydro electric power plant to bolster its production in the next five years. Similar projects are also under way at the Hwange thermal plant.

Breaking new ground But while the projects are ongoing, demand for coal fired power will surely spike and

investors appeared to be taking their positions to capitalise on the massive opportunities. “People no longer trust nuclear energy after what happened in Japan,” says Brains Muchemwa, chief executive officer at Oxlink Capital, and Reserve Bank of Zimbabwe advisor. “There has been a shift to other sources of energy,” says Muchemwa, who is also a member of the central bank’s monetary policy committee. New entrants are reworking old geological maps in Zimbabwe, lobbying for more ports and exploring new ground on the fringes of rich coalfields owned and controlled by Hwange, a decadeslong investor in north western Zimbabwe. With coal output sliding at Hwange, throughput to the 920 Megawatt (MW) Hwange Power Company (HPC), the State controlled power outfit, has slumped and national output of about 1 000MW is only half the 2 200MW peak demand.

This has given new entrants huge opportunities to extract coal and feed HPC, manufacturing firms and small thermal stations. Makomo Resources, which has invested US$200 million into its new coalfields since 2010, has spotted the tremendous opportunities in Zimbabwe, where it has sealed big deals with HPC to ship 60 000 tonnes of the fuel per month. It has also been supplying 10 000 tonnes to small thermals across Zimbabwe every month. According to recent reports, Makomo has gone a step further to begin coal exports and build its own US$1,5 billion thermal power plant in the next five years. “The company has been planning to begin coal exports into the region, predominantly into South Africa and Zambia,” says finance director, Tendai Mungoni. But he adds: “We intend to go further afield.”

The Rush Is On

“People no longer trust nuclear energy after what happened in Japan.......There has been a shift to other sources of energy,”

Billy Rautenbach’s Clidder Minerals has been exploiting coal in the Sinamatela coalfields, 35 kilometres west of Hwange, since 2010. Chilota Colliery Company, South Mining, Coal Brick and China-Africa are among the recent investors to join the rush for Zimbabwe’s coal. Chilota, which has invested about US$2 million into coal extraction, has been producing about 50 000 tonnes per month, and is targeting to improve its market share to 10 percent by 2015. As of the first quarter of 2014, South Mining was producing about 8 000 tonnes of coal per month. Output was projected to surge as the firm moved to fortify its batteries through a US$2 million refurbishment project. Further north, China Africa Sunlight Energy Limited, a joint venture between

ZIMBABWE MINING REVIEW issue 1 2015

Old Stone Investments of Zimbabwe and a Chinese firm, Shandong Taishan, has been earmarking about US$2,1 billion, which will also be complemented by a 2 100MW coal power plant. A South African mining firm, LontoCoal had previously indicated that it would pour at least US$9 billion into Zimbabwe’s hot coal fields. It holds 51 percent shareholding in Liberation Mining, which has the right to mine in the Lubimbi area near Binga. The Lubimbi coalfields, 250 kilometres north of Bulawayo, have an indicated resource of 1,2 billion tonnes of open-cast, high-quality thermal and coking coal deposits. Government announced recently that it would be issuing more prospecting licenses, giving an indication that even government has realised the huge potential for coal to bolster its efforts in turning around the struggling economy, which will enter its 14th year of recession in 2015. Zimbabwe’s Mines and Mining Development Minister, Walter Chidakwa, says government was looking at 26 new applicants for coal mining, a significant of them local, who have submitted applications for special grants to explore in Gwayi, Dete, Binga and Hwange. “We are now looking at these

ZIMBABWE MINING REVIEW issue 1 2015

applications in view of recommending those who can be issued with the prospecting licenses,” says Chidakwa, noting that there will be no room for getting the licences and sitting on them without producing.

No Excuses Special grants are issued by the President of Zimbabwe, and those who get the licences are expected to kick off exploration within six months of receiving them. Investors who fail to honour this

commitment could have their special grants withdrawn and offered to serious investors, unless they give good reasons for their delays. The government of Zimbabwe has been forced to crackdown on claim holders after only five of 28 special grants issued in 2013, worked on their projects, leaving the rest of the coal fields idle. Many are reported to be holding on to the claims for speculative purposes, and

government has expressed reservations over their behaviour. “Due to lack of resources, our geologists have not been visiting the sites,” said the minister. “We are in the process of empowering our geologists to monitor progress on these sites.” This surge in the coal industry leaves the Zimbabwe Stock Exchange-listed Hwange with the huge task of having to tackle competition, giving new managing director, Thomas Makore, his first biggest dilemma. In Harare, commentators are agreed that the new man at Hwange Colliery Company Limited is in a firestorm of sorts. “Managing costs is his biggest challenge because that company has no capital,” says Muchemwa. “But this is a market with no long-term capital. So his biggest task now is to look for that capital and streamline operating costs,” he says.

Terminal shortage The expected boom in coal production and output in Zimbabwe has already begun to attract attention in related industries, where opportunities to support mines have sprouted. For instance, the shipping industry has said Zimbabwean mines must now consider the possibility of improving infrastructure on major sea ports through which the southern African country’s minerals, especially coal, are exported. The country is landlocked, but it relies on ports in Mozambique, South Africa and Namibia to import and export products. At the same time, the government of Zimbabwe has been working around the clock to improve business conditions in a country seriously affected by high costs of production, which have dampened investor interest and led to massive divestment. Recently, the mining industry said the country should consider constructing a dry port in Mozambique to facilitate the export of coal. At the same time, government has kicked off feasibility studies in Walvis Bay,

“A South African mining firm, LontoCoal had previouslyindicated that it would pour at least US$9 billion intoZimbabwe’s hot coal fields”

Namibia, to construct a US$1,5 million docking facility to facilitate international trade coming through south west Africa. Coal exports from Zimbabwe are mostly transported through Mozambican and South African ports. Exports are certain to increase as global demand for coal grows, underpinned by massive slashes in production among the world’s largest exporters. The Chamber of Mines of Zimbabwe estimates that coal output would surge as throughput from new licencees is brought to the market. However, shipping and mining industry players warned that across the region, coal output had been robust, and Mozambican ports were failing to accommodate the flood. “All terminals for coal along the Indian Ocean are full,” said Mutare Dry Ports executive, Charles Tawazadza. “We need to start developing a terminal along the Indian Ocean. Players in Mozambique are investing in their own terminals because all the terminals are full. We might mine our coal but fail to export,” he said. While most terminals across Africa were run by governments, the giant Richards Bay Coal Terminal in South Africa, the world’s biggest coal export port, is controlled by coal exporters. Analysts said Zimbabwe could successfully develop a similar model to avoid costly delays at the choked Mozambican ports. Investment analysts see this deficiency in coal handling facilities presenting opportunities for foreign investors interested in shipping. It is unlikely that Zimbabwe’s cashstrapped mines would soon expend on a coal terminal given the magnitude of recapitalisation funding required under a liquidity-strapped, hard currency environment adopted in 2009. The mining industry has been battling to mobilise about US$5 billion for capital expenditure to expand and retool existing operations.

ZIMBABWE MINING REVIEW issue 1 2015

BNC BACK IN

Nickel’s ‘Ivy League’ ‘Glowing reviews and robust growth at BNC….with bullish nickel prices projected as Indonesia bans raw exports’ reports SHAME MVUNDURA

ZIMBABWE MINING REVIEW issue 1 2015

imbabwe Stock Exchange-listed nickel producer, Bindura Nickel Corporation Limited (BNC) executives are rubbing their palms together in anticipation of a strong performance and higher returns during the full-year to March 31, 2015, buoyed by Indonesia’s decision to maintain a ban on raw nickel exports that kicked off in January 2014.

BNC says nickel prices averaged US$18 515 per tonne during the second half of its financial year, which ended on September 30, 2014. It projects the trend will remain positive in the short-term, spurred by the developments in Indonesia, which is enforcing a beneficiation policy similar to the one underway in Zimbabwe. The southern African country has banned raw chrome exports and has directed all producers to invest in refineries.

maintenance period which came into force in 2008.

Indonesia sits on the top league of global nickel producers, together with BNC, whose production is taking place at Trojan Nickel Mine, about 90 kilometres northeast of Harare. The raw nickel export ban put in place by the Indonesian government has triggered a slide in global output of the metal, which is a key input in the production of stainless steel, and sparked a prolonged rise in prices on the international markets.

Platinum producers have also been asked to assemble their own refineries in Zimbabwe, although exports are still allowed. In December, BNC produced an impressive set of results in the half-year ending September 30, 2014. Most key variables were on the rise during the period, which marked about 15 months after BNC restarted operations at Trojan after coming out of a care and

Batirai Manhando said at a briefing of investments analysts and stockbrokers in Harare. “It is going to take them at least five years to put a refinery in place. They are following what Zimbabwe has done. And we don’t think that that infrastructure (nickel refinery) will be in place in less than five years. Nickel prices improved after the Indonesian ban on ore exports was implemented in January 2014.”

Improved Prices The results demonstrated BNC’s capacity to return to the apex of African nickel producers, and they received glowing reviews from most resource analysts in Harare who were confident that the firm was on the path to recovery. “Indonesia has banned exports of raw minerals,” BNC managing director (MD),

ZIMBABWE MINING REVIEW issue 1 2015

“The ban should have resulted in a tightening of the nickel market on reduction of the production of nickel pig iron (NPI) in China. The reduction in NPI production is therefore expected to impact the two million tonnes per year nickel market,” said the BNC MD. Manhando projects that nickel demand will continue in its robust trend in the short-term and this “will have a favourable impact on the nickel price going forward which bodes well for BNC and its efforts

extracted during the prior comparative period in 2013. Turnover climbed by 117 percent to US$46,3 million during the review period, from US$21,3 million during the period ending September 30, 2013. Other expenses at US$11,2 million, were 67,2 percent higher than the US$6,7 million reported during six months ending September 30, 2013. These, however were 2,6 percent down compared with the US$11,5 million

same time in 2013. BNC’s net asset value tracked the tremendous growth reported in turnover and a string of key indicators, rising by an impressive 453 percent to US$36,3 million during the review period, from US$6,6 million during the prior comparative period. Current liabilities moved only 4,6 percent up to US$26,5 million after the firm, majority controlled by the London Stock Exchange-listed resources giant,

to restart the smelter”. Driven by efficient and cost effective mining methods deployed after Trojan Nickel Mine was brought back online in April 2013, and the bullish nickel price in the global markets, BNC reported a spike in nickel concentrate output during the period. Output surged to 3 891 tonnes during the review period, which was 74 percent higher than the 2 803 tonnes

incurred in the second half to March 31, 2014. Earnings before tax went up significantly by 270 percent to US$12,2 million, against the US$3,3 million reported in the half-year to September 30, 2013. Profit attributable to shareholders ended the review period at US$8,5 million, 156 percent up from US$3,3 million in 2013. Earnings per share ended the period at US0,69 cents, from US0,27 cents at the

Mwana Africa, took steps to deal with a cluster of legacy creditors. Net cash from operating activities improved immensely from a negative US$1,6 million to US$5,5 million in the six months to September 2014, said BNC.

ZIMBABWE MINING REVIEW issue 1 2015

Steady Growth Indicators The results immediately attracted positive reviews by analysts in Harare.

“This is a commendable effort by the company given the challenging operating environment that has seen all other listed companies succumbing to the low economic activity pressures,” said a review by investment analysts at ABC Stockbrokers, a unit of the Pan African banking group, ABC Holdings Limited. “Granted that the company was under care and maintenance in the previous financial years and is therefore coming from a low base, the returns since resuming operations are impressive and are indicating a steady growth trajectory. Given intrinsic and external fundamentals which are in favour of BNC’s operations, going forward growth will be anchored by a positive outlook on global nickel prices, effective cost management and maintenance of an effective mining plan,” said ABC Stockbrokers. “Restart of the smelter & refinery by (the) second half of 2015, will result in value addition in the nickel concentrate currently being sold and ultimately lower the off take costs of selling a partially processed product.” However, the stockbroking firm raised concerns about the country’s indigenisation laws as one of the key problems affecting not only BNC, but the rest of the southern African country’s extractive industries. “BNC’s operations are subject to Zimbabwe’s indigenisation policy which requires that 51 percent ownership of local companies be in the hands of previously disadvantaged indigenous locals,” ABC said in a dispatch to clients. “The uncertain economic environment in Zimbabwe remains a high risk compared to mining operations in other countries.” The good news, however, is that the government of Zimbabwe has recently been softening its tough stance against foreign controlled firms, and going forward, the ruthless laws that have triggered capital flight are likely to be extensively reviewed. In November, Finance and Economic Development Minister Patrick Chinamasa

made radical policy reviews, allowing line ministries to take charge of negotiations for empowerment shares. This was a huge diversion from the previous period when firms had to go through a blistering process through the National Indigenisation and Economic Empowerment Board, or NIEEB, where all the discussions used to take place in a one-size-fits-all model.

Low Price Risk

Demand “will have a favourable impact on the nickel price going forward which bodes well for BNC and its efforts to restart the smelter” Batirai Manhando, BNC Managing Director

ABC said there were also potential risks that in the highly unpredictable minerals market, nickel price could fall below the anticipated breakeven level, piling tremendous pressure on BNC’s margins. “(But) BNC’s cost structures are however robust enough to weather low pricing,” said ABC. “In addition, given the current high nickel prices and the positive outlook, the commodity price risk is low in the short to medium-term,” said the analysts. BNC owns the only fully integrated nickel mine complex in Africa, which include Trojan Mine, Shangani Mine, an open pit resource Hunters Road project near Gweru, and a refinery in Bindura. BNC’s operations were placed under care and maintenance in 2008 but operations restarted in 2012 following a recapitalisation and restructuring project, which resulted in Mwana Africa, owned by DRC national Kalaa Mpinga, increasing shareholding to 76,3 percent. The first shipment and sale of concentrate took place about half year after operation restarted at Trojan. The firm has a 100 percent takeoff with the global commodities giant, Glencore, whereby it purchases all the nickel concentrate produced at Trojan Mine. Trojan Mine still has a 10 year lifespan, while Shangani Mine, which is still under care and maintenance, has a seven year lifespan. Hunters Road has 30 years of mining remaining.

ZIMBABWE MINING REVIEW issue 1 2015

Insatiable: The Zim

ADVANTAGE ©123RF

Global multinationals are scrambling for Africa’s resources, with China and Russia fighting for front position in Zimbabwe. SHAME MVUNDURA highlights some of the billion dollar deals on the table.

ZIMBABWE MINING REVIEW issue 1 2015

s Zimbabwe’s mining industry continues to recover from the hyperinflationary decade that ended in 2009, multinationals from global powers have continued to extend their influence in the southern African country. China, the world’s second largest economy, and Russia are among the countries that have recently positioned their interests in Zimbabwe, pouring billions of dollars in capital to exploit a wide range of minerals. Closer economic and diplomatic ties between Zimbabwe and the two global giants have had wide and far-reaching effects in the southern Africa country. Beijing’s capital continued to flow into Zimbabwe even during the most trying times for Harare, when western powers maintained an embargo that started in 2000. State-owned Chinese firms, with strong backing and encouragement from their government plus an added advantage of employing low-cost but efficient labour, have been outbidding contractors from other parts of the world in the rush for opportunities in Zimbabwe’s mining industry. As the world’s fastest growing economy evolves, its industries are rapidly expanding and asset managers, controlling billions of dollars in their portfolios, believe it is time

to join the global multinationals which are flocking to Zimbabwe. Their target is no less than the mining industry whose 40 different minerals, including gold, platinum, iron, steel, chrome, zinc, manganese and diamonds, have emerged as key to feeding China’s huge appetite for raw materials, created by the dramatic growth of its industries.

industries. Power generation is important for both the mining industry, domestic consumers and the manufacturing sector. National electricity demand is currently at 2 200 Megawatts (MW) against current generation capacity of 1 240 MW. What this means is that Zimbabwe has to import between 50MW and 300 MW to bridge the deficit. China is experiencing

In 2013, alone ......Chinese investment into Zimbabwe reached US$602 million, the largest in Africa, Chinese exports to Zimbabwe reached US$440 million in 2014, while exports to Beijing from Harare were estimated at US$668 million.

Paving The Way for Power It has been a long march for Chinese firms in Zimbabwe. Not many Chinese companies had a presence in Zimbabwe from the 1980s to late 1990s when western multinationals were the dominant force. But many of them are now on the ground. Their interests include investments in the telecoms sector, power, ICT and other

a huge shortage of raw materials across a range of sectors. Its markets are anxious for imported minerals to bridge the gap, and investment advisors say Zimbabwe will provide the turf on which a big fight for Africa’s minerals will be fought in the next decade. Five billion square metres of roads are expected to be paved in China in the next 15 years, while 170 mass-transit systems

ZIMBABWE MINING REVIEW issue 1 2015

would be constructed. About 40 billion square metres of floor space is also projected to be constructed in five million buildings during this period, 50 000 of them skyscrapers. Add to this, 0,4 million tonnes of manganese is expected to be consumed by Chinese industries during this period, and you can see the extent of opportunities unfolding for the mining sector in Zimbabwe. “The Chinese growth story is known, China overtook as the world’s second largest economy,” says Matt Pieterse, chief executive officer of the Beijing-based TBA China Capital Advisors. “We see this growth in the foreseeable future, there is a real desire by Chinese investors to partner with Zimbabweans in building thermal power stations, coal and chrome mines,” he says.

Billion Dollar Deals This will make China the single largest destination of Zimbabwean minerals, if mines, which were estimated to require US$5 billion in fresh capital in 2010, follow up on Chinese deals. Given the liquidity crisis stalking the

country’s financial markets, Zimbabwean miners have a huge task cut out for them. It is extremely difficult, given the extent of funding requirements in mines, for the financial system to extend long-term loans at concessional interest rates. Where loans have been available, they have been expensive. Chinese firms with interest in Zimbabwe include Anjin, which has taken positions in diamond mining, tobacco dealer China Tobacco International, telecoms giant,

ZIMBABWE MINING REVIEW issue 1 2015

Huawei Technologies, AfroChine that has interests in chrome and ZTE, which has clinched big deals in supplying mobile firms’ requirements. The Chinese government estimates that bilateral relations between Beijing and Harare have generated deals worth US$1,1 billion. In 2013, alone, Chinese investment into Zimbabwe reached US$602 million, the largest in Africa, according to statistics from the world’s second largest economy. Chinese exports to Zimbabwe reached US$440 million in 2014, while exports to Beijing from Harare were estimated at US$668 million. “Controlling stakes are preferred but Chinese investors are maturing,” says the TBA China Capital Advisors boss. “(But) we are seeing a change in the desire not to always control,” he emphasises. Now, the Russians are beginning to see the opportunities in Zimbabwe, and they have started the scramble to pounce on deals. And they will not be left out.

In September, President Vladimir Putin’s

The transactions, whose flagship was the US$3 billion Darwendale platinum mining deal, boosted business relations between Harare and Moscow, who have traditionally been allies but largely on a political level. Russia is the largest and most powerful of countries that emerged out of the collapse of the Soviet Union after the cold war. Behind the scenes, there have been diplomatic moves towards economic integration between Harare and Moscow, with Zimbabwe hoping to benefit from Russia’s economic capacity through foreign direct investment inflows, while Russia is expected to benefit from exploitation of the southern African country’s vast platinum resources to feed its strong automotive industries. On paper, the deals are expected to bolster Zimbabwe’s economic recovery. “We identified the Darwendale project as the flagship project of our cooperation,” says Zimbabwe’s Foreign Affairs Minister, Simbarashe Mumbengegwi. Dennis Manturov, Russia’s Minister of Trade and Industry describes the deals

Russia made an emphatic and strategic move into Zimbabwe’s platinum mining sector in the Great Dyke mineral region, in the latest signal of an intensifying scramble for Zimbabwe’s minerals. Zimbabwe played host to over 50 Russians early September, sealing deals that spanned from mining, mining equipment supplies to delivery of military helicopter gunships.

as opening new opportunities for the two countries. “There is strong potential for cooperation between our two countries,” says Manturov. The two countries have formed a joint venture firm, Great Dyke Investments, to spearhead the development of platinum mines in Zimbabwe. “Zimbabwe is open to investment,” says government minister, Saviour Kasukuwere.

Putin and Platinum

MINING MOGUL digs deep

Mining Magnate and Mwana Africa CEO, Kalaa Mpinga is a formidable force in the mining industry with interests and projects across Africa. SHAME MVUNDURA explores his success in this tough industry

ZIMBABWE MINING REVIEW issue 1 2015

alaa Mpinga is the chief executive officer of Mwana Africa PLC, whose ambition and investments have not only led to the terrific growth of the London headquartered resources giant, but has also touched thousands of lives in a region where unemployment is high and opportunities are limited. Through Mwana Africa, Mpinga’s investments have benefited thousands through job creation in remote outback locations where very few ever dreamt of gaining employment. Thousands of small scale enterprises have also benefited through supplying goods and services to Mpinga’s mines, with a string on downstream positive effects. Mpinga served as an executive vice president of Anglo American Corporation, where he contributed to the development of the global mining giant’s cross-border activities. He has a broad experience in doing business throughout the African continent, with significant investments in Zimbabwe, where Mwana Africa controls 76,3 percent shareholding in nickel producer, Bindura Nickel Corporation Limited (BNC), and gold mine, Freda Rebecca Gold Mine. Mwana Africa pounced on Freda, one of the country’s oldest gold mines about 90 kilometres north east of Harare, in 2004 acquiring it from Ashanti Goldfields. It has been a tough environment in Zimbabwe for the mining industry since Mpinga brought Mwana Africa onto the scene.

ZIMBABWE MINING REVIEW issue 1 2015

At Freda Rebecca consistent throughput is now being achieved and this is helping to contain costs and ensure that the mine remains profitable should gold prices retreat further whilst at Trojan, the primary focus continues to be the ramping up of operations. The decision to re-start Bindura’s smelter at a total capital cost of U$26,5 million has been central to our planning for sustainable and profitable nickel production

And intricate negotiations have always been taking place between miners and the government of Zimbabwe to improve the working environment. Mpinga says he is happy with recently policies put in place by government, especially the downward review of gold royalties to five percent from seven percent in the 2014 National Budget. “We have actively engaged government on this issue and it is very pleasing that in the spirit of co-operation and understanding, it has recognised the

challenges inherent in the gold mining industry at present,” said Mpinga. “The reduction in the gold royalty rate will provide a welcome financial boost to Freda Rebecca and Mwana.”

Experience and Assets Mpinga has been involved in the worlds of finance, law and commerce, which includes negotiations with the World Bank, International Finance Corporation (IFC), African Development Bank and a number of global financial firms. He served at Bechtel Corporation in San Francisco, and in 2001, he started Mwana Africa PLC, after joining LTA Limited in 1991. He has also served as the Chairman of Southern Era Diamonds Inc, as well as being an independent non-executive director of Group Five Ltd in South Africa. Mpinga has sat on the board of the African Business Round Table. It is interesting to see that despite his massive success in the mining industry, Mpinga did not major in mining at University. He holds a BSc in Agricultural Economics from McGill University, Canada and a MSc in International Agricultural Development from the university of California at Davis, as indicated on his LinkedIn. profile. In spite of this, he leads a Pan Africa mining group with tentacles in South Africa, and a broad range of exploration projects and interests in the Democratic Republic of Congo, Angola and Bostwana. Mwana Africa’s asset base is diverse, including gold, nickel, copper, cobalt

We have actively engaged government on this issue and it is very pleasing that in the spirit of co-operation and understanding........... The reduction in the gold royalty rate will provide a welcome financial boost to Freda Rebecca and Mwana

and diamonds. “The first half of the current year saw considerable operating progress across all of the group’s key projects,” Mpinga commented in Mwana Africa’s financial results for the half-year ended September 30, 2014. “This progress is continuing and augurs well for future growth,” he said. “At Freda Rebecca consistent throughput is now being achieved and this is helping to contain costs and ensure that the mine remains profitable should gold prices retreat further whilst at Trojan, the primary focus

continues to be the ramping up of operations. The decision to re-start Bindura’s smelter at a total capital cost of U$26,5 million has been central to our planning for sustainable and profitable nickel production,” said Mpinga in a note to shareholders.

Ore Bodies at Freda Mwana Africa says building on its African track record and with its highly experienced team, it intends to pursue mining opportunities across the African continent, both independently and,

where appropriate, in partnership with other stakeholders. Mwana Africa says Freda Rebecca lies on the central axis of the synclinal MazoweBindura Greenstone belt. It says the geology of the area around Freda is characterised by the Shamvaian sediments, diorite and granodiorite. The Freda ore bodies are largely hosted by the Prince of Wales diorite and the Bindura granodiorite. The mineralisation is hosted within two major shear envelopes. Individual shears are variable in width and these two systems merge to the south west at depth flattening at around 850 metre elevation and extending into the meta-sediments. The shear system is characterised by a set of anastomosing shears separated by relatively underformed rock units.

ZIMBABWE MINING REVIEW issue 1 2015

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Zimbabwe battles to lure investors for its

GAS DISCOVERIES Ordinary Zimbabweans could reap massive benefits from new discoveries of coal-bed methane gas deposits in Lupane district. By TRUST MATSILELE(CNBC AFRICA)

imbabwe battles to lure investors for its gas deposits requiring huge capital investments. The recent discoveries in Matabeleland province, one of the country’s under developed regions could see the resuscitation of the formal employment in a country reported to have unemployment levels well beyond 80 per cent. An exploration by the Industrial Development Corporation (IDC) established extensive deposits of coal-bed methane gas in the Hwange-Lupane basins estimated to be over 23 billion cubic feet per square mile or 27 trillion cubic feet. Huge investment in coal and gas production and distribution could stimulate potential economic recovery, creating employment and other business opportunities. The country could become a major supplier of cheaper coal products, especially gas in the SADC region which heavily relies on electricity and in desperate need of alternative sources of energy. An expert who commented on condition of anonymity stated that, “Zimbabwe’s gas deposits were second to Qatar, with the potential to last over five thousand years.” “The gas in Lupane was discovered in 1939 by the German and British explorers

ZIMBABWE MINING REVIEW issue 1 2015

explaining why the country has been an international spotlight over the years,” the source confirmed. The coal gas is a form of natural gas extracted from coal beds. In recent decades it has become an important source of energy being predominantly utilised in the United States, Canada, Australia, and other countries. With increasing pressure among global economies to make a transition into green technology, the gas deposits could transform the economy as Zimbabwe will likely become one of the leading suppliers. Zimbabwe’s economy has been on a free fall since 2002 when it was slapped with restrictive measures by the United States and other Western European nations. The Harare administration was among others accused of gross human rights violations, corruption and electoral fraud in the past elections since 2000. However, factoring the political bigwigs’ interests in controlling economic levers in the country, the western region could soon become another hotspot attracting mass murders like the diamonds fields in Chiadzwa. In 2008, when the country discovered diamond deposits in the eastern part of Chiadzwa, human rights groups reported of systematic murders in the region as various interest groups fought to control the mineral deposits.

The country’s diamonds deposits later dubbed “blood diamonds” saw the country failing to benefit from the minerals as they were confined and benefited a few connected political elites. Independent mechanical engineer, Munjodzi Mutandiri told CNBCafrica.com that the country had the required technical expertise but lacked capital to kick-start such projects. “We have methane beds in Lupane, Hwange and Beitbridge. Zimbabweans are overseeing such projects world over. The challenge we face as a country is capital and this is worsened by uncertainty in our investment laws especially clarity on our indigenisation laws,” said Mutandiri. “The challenge which is then confronting the country is that if these fears are not allayed the country will fail to attract the much needed foreign direct investments,” he added. Political analyst, Gideon Chitanga, pointed out that if the country does not reform its laws and institutions, particularly issues of human rights which have alienated it from major western investors, a great opportunity will be wasted. “Government should strive to create a conducive environment for investment, reform the controversial indigenisation law and guarantee investors that they will not lose their investments to the state and or corrupt political heavies.”

WTM Africa Means business 15 - 17 April 2015 / Cape Town International Convention Centre (CTICC)

5353

pre scheduled appointments facilitated by WTM Africa in 2014

inbound & 3091 outbound industry professionals markets

from over 60 countries and regions in 2014

targeted at WTM Africa 2014

The global leading event for the African travel industy. Donâ&#x20AC;&#x2122;t miss out, register now!

15-17 April 2015 Cape Town part of:

WTM Africa Means business

Preparations for World Travel Market Africa (WTM Africa) 2015 are underway and the second edition of this leading travel and tourism event will once again be hosted at the award winning Cape Town International Convention Centre (CTICC) from 15 to 17 April. The organisers, Thebe Reed Exhibitions and Reed Travel Exhibitions, exceeded their expectations on the inaugural event held 2 and 3 May this year. With more than 370 exhibiting companies, 3091 travel professionals attending and 5353 pre scheduled appointments. An outstanding achievement for a first time event and positioning WTM Africa as the only event of its kind in Africa.

With the UNWTO reporting growth in both inbound and outbound tourism and some African nations expected to grow at an average annual rate of 5.7% - the highest

of any world region - WTM Africa, which caters for both inbound and outbound markets, is a vital platform for the African travel and tourism industry. Bringing together worldwide buyers and sellers focused on the African travel and tourism markets, together under one roof. “The 2015 event will be held over three days, and promises to deliver more interaction, more education, more networking and most importantly, more business concluded than ever before witnessed in our industry here in Africa” said industry expert and newly appointed Exhibition Manager, Sheree Simpson.

WTM AFRICA IS NECESSARY FOR THE WIDEST RANGE OF TRAVEL PROFESSIONALS TO ATTEND This includes but is not limited to: Inbound and Outbound Retail Travel Agents, both leaisure and corporate MICE professionals Wholesale travel advisors Wholesale product buyers Group Travel Organisers Independent Travel Companies Tour Operators Online Travel Companies Corporate Travel Organisers In 2015, WTM Africa exhibitors can look forward to 3 days of lucrative business discussions with the world’s leading travel industry buyers from both emerging and traditional source markets, which will be hosted at WTM Africa 2015. WTM Africa’s

prominent event programme, in partnership with local and international organisations, will provide a strong, professional series of conferences focusing on the African region, covering important topics affecting the market, offering industry insights of real value to any travel industry professional. WTM Africa has attracted volumes of interest from key quality senior buyers from across the globe. The portfolio aims to create business opportunities through its leading world travel events and industry networks with global reach and regional focus, providing customers with quality contacts, content and communities.

“

‘It is a huge event and it certainly places Cape Town one step ahead to becoming the events capital of Africa.” Roxanne Hoorn; City of Cape Town

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WORLD TRAVEL MARKET AFRICA THE LEADING TRAVEL AND TOURISM BUSINESS TO BUSINESS EVENT

Fully supported by the City of Cape Town, the second annual WTM Africa will be held at the Cape Town International Convention Centre (CTICC) and the city is poised to host the only event of its kind in Africa. WTM Africa forms part of Africa Travel Week, which comprises of three co-located industry events namely International Luxury Travel Market (ILTM) Africa, International Business Travel Market (IBTM) Africa and WTM Africa.

GAS

emerges as potential aid for Zimbabwe energy crisis As Mozambiqueâ&#x20AC;&#x2122;s â&#x20AC;&#x153;world-classâ&#x20AC;? gas resources are developed and coal bed methane (CBM) increasingly offers potential, Zimbabwe could seemingly leverage gas opportunities to meet its rising energy demands.

ozambique’s gas finds are expected to fuel the southern region of Africa, where many countries are battling to meet ever-increasing energy demands. Mozambique, which currently used 13 000 GWh of its 17 000 GWh electricity output – generated mostly from hydropower – was already a net exporter, particularly to South Africa. And, despite Zimbabwe’s 10.25-billiontonne coal potential, the Southern African country could exploit its gas reserves and develop a gas-to-liquid (GTL) plant, using gas as an alternative to coal, John Hollaway and Associates consultant John Hollaway said on Friday. Speaking at the second Zimbabwe Energy Future conference, in Johannesburg, he said many coal projects had faltered on the back of poor quality coal, with only the Hwange region boasting about 2.1-billion tonnes of coking coal potential. A move to build a $5-billon 60 000 bl/d GTL plant could support a country using 30 000 bbl/d of mostly imported liquid fuels and would be about 60% cheaper than the development of a coal-to-liquid (CTL) plant. But, Cobramar head Michel Thuysbaert believed that about 600 000 t of unexportable coal could be monetised and beneficiated through the establishment of a Phase-1 Fischer-Tropsch CTL plant in Zimbabwe. Outlining a proposed plant, he said the small-scale Phase 1 plant, with a 1 350 bl/d capacity, aimed to kick-start the country’s ambitions of reversing petroleum importation to eventually become a petroleum exporter. The terms of reference for a prefeasibility

ZIMBABWE MINING REVIEW issue 1 2015

“Many coal projects had faltered on the back of poor quality coal, with only the Hwange region boasting about 2.1-billion tonnes of coking coal potential”

study were currently being prepared and were expected to be completed this year, while Cobramar planned to progress a bankable feasibility study in 2015. Production at the $3-billion to $3.5-billion Phase 1 plant would start in 2018/19, with output eventually ramping up to 30 000 bbl/d. Thuysbaert said a number of discussions were under way for a potential public– private partnership, which was essential for the project’s success. Meanwhile, Zimbabwe-based coal producer Hwange Colliery mining planning and business manager Oliver Maponga noted that Zimbabwe could leverage its more than 800-million cubic metres of undeveloped CBM across the Hwange and Lupane regions. The conservative estimations could power Zimbabwe, which imported some of its power requirements from its neighbours the Democratic Republic of Congo, Mozambique and South Africa. Zimbabwe’s current 2 200 MW demand, which surpassed its capacity of less than 1 900 MW, could be met with the addition of a 3 000 MW capacity through the development of $3.4-billion in energy projects. These included Hwange 7 and 8 coal, Lupane gas, Kariba south extension hydropower, Sengwa coal and Batoka hydropower. But, Maponga said, judging from the gas estimations of a small portion alone, the 40 000 km2 mid-Zambezi basin could be home to “huge” deposits of gas that could contribute significantly to the country’s energy needs. He believed that CBM, still in its infancy in Zimbabwe, was an “up and coming” industry.

Mining for

GOODWILL will reap profit

Mining companies must move beyond rhetoric and look after the health and safety of workers and residents, writes KHANYA MNCWABE. (First published in The Mail & Guardian, South Africa)

frica’s top mining chief executives met and addressed thousands of industry professionals at the Investing in African Mining Indaba in Cape Town last week. Although the challenges of conducting business in Africa were noted, overwhelmingly positive sentiments were expressed about mining on the continent. But, just a few kilometres away from the indaba, hundreds of civil society activists who could not afford the almost $2 000 admission fee convened the Alternative Mining Indaba to grapple with concerns about the mining sector’s negative impact on human rights. Two protests, one staged by delegates of the Alternative Mining Indaba and another by indigenous leaders, made it clear that mining industry leaders should be worried about their image – with good reason, it seems: the 2014 Edelman Trust Barometer puts mining third from the bottom when it comes to public trust in business. In the same poll, a majority (81%) of respondents said that companies could improve the economic and social conditions of the community where they operated and still increase profits, and 75% of respondents also thought that companies could be profitable while working to improve the communities where they mined. But the industry’s woes go way beyond an image problem. There are real-life stories of fraught relationships among mining companies, their workers and their communities: locals are threatened by private security companies, resettlement

ZIMBABWE MINING REVIEW issue 1 2015

is mismanaged and workers’ lives are endangered. The Marikana massacre in 2012, in which 34 miners were shot and killed by police while miners were on strike at a Lonmin-owned platinum mine, highlighted these tensions between mining companies and their workers. Companies’ profits are also compromised by the negative impact of mining on human rights. The South African mining industry is estimated to have lost R15-billion in the period leading up to and following the Marikana massacre. Legal challenges to and community protests about mining operations are estimated to cost $20-million a week globally in delays, and potential payments to 17 000 former mineworkers for silicosis claims could amount to R51.5-billion. Better relationships with communities and workers could have mitigated, or even avoided, the harm caused in these cases and in many others highlighted in the Business and Human Rights Resource Centre’s latest briefing note on mining in Southern Africa. To manage these risks coherently and better respect human rights, mining companies should move beyond just adopting human rights policies and a “mainstream” respect for human rights. In Southern Africa, three areas are key to this: transparency, engagement and respect for communities’ and workers’ rights to health and safety.

Transparency Amid widespread calls at the indabas for greater corporate transparency, Melissa Fourie of the Centre for Environmental Rights said fear is behind the nondisclosure

in the industry. She asked: “What, indeed, would happen if everyone could see how noncompliant the mining industry really is with environmental and social obligations?” She called for increased government support to ensure more comprehensive compliance by mining companies. There are examples of the government being robust about transparency: the Vaal Environmental Justice Alliance recently scored a significant legal victory when the Supreme Court of Appeal ordered ArcelorMittal to release records to verify the company’s environmental claims independently and better understand its impact on local communities’ health. The court said: “[C]orporations … must be left in no doubt that, in relation to the environment in circumstances such as those under discussion, there is no room for secrecy and that constitutional values will be enforced.” Transparency also applies to financial outflows. According to the chairperson of the African Union Commission, Nkosazana Dlamini-Zuma, extractive industries are the greatest culprits in avoiding taxes, depriving governments of much-needed funds that could be allocated to health, education and development. The problem is so serious that the AU has launched an initiative to stem the illicit financial outflows, citing in particular the mining industry in South Africa. Mining companies, then, need to be progressive about transparency and show leadership in this regard. A good example of this is Rio Tinto reporting annually on its payments to dozens of countries, including Madagascar, Mozambique, Namibia, South Africa and Zimbabwe.

Engagement “It’s not a cost, it’s a necessity,” said Stephen Vermaak, the principal investment officer of the International Finance Corporation (IFC), while addressing a panel at the Mining Indaba. He stressed the importance the IFC places on the need to work with stakeholders when considering investments. Responsible engagement is needed with all relevant stakeholders, particularly workers, affected communities and governments. This not only means speaking to them and acting on the concerns of workers and the community, but also avoiding being complicit in or causing government abuses, and respecting and protecting the defenders of human rights. Marikana raised these concerns when it emerged that emails sent at the time by Lonmin’s management to Cyril Ramaphosa, a Lonmin board member and now deputy president of South Africa, appealed for government intervention in ending the strike. His response called for the police to act against the strikers, to whom he referred as “criminals”, and has been seen in some quarters as contributing to the killings. Mining investors have reportedly also stoked state and private security violence in Zimbabwe. To better manage the danger of harming communities, companies must gain free, prior and informed consent, continually manage the impact of their operations, and meaningfully respond to complaints and remedy the issues. To put communities on a more even footing with mining corporations, the Bench Marks Foundation recently announced that it would approach companies to garner their support for an independent fund that would increase communities’ access to expertise.

Right to health Mining companies in Southern Africa should take steps to better protect the rights to health and safety of workers and communities near mining sites. Some companies have taken positive

“Mining companies, then, need to be progressive about transparency and show leadership in this regard. A good example of this is Rio Tinto reporting annually on its payments to dozens of countries, including Madagascar, Mozambique, Namibia, South Africa and Zimbabwe”.

steps towards doing this. Anglo American has set an industry-leading goal of zero worker fatalities in its global operations. Fatalities have fallen in recent years, although the company still reported nine deaths at its South African mines in 2013. Regarding health, the International Council on Mining and Metals has reported on community health initiatives by its member companies and highlighted key lessons learnt. Governments are increasingly taking a hard line on the impact of mining companies on health and safety. The Zambian government cancelled the licence of Chinese-owned Collum Coal Mining after it was alleged that Chinese supervisors shot at protesting workers and that a local worker had killed a Chinese supervisor. Regulatory authorities in Zimbabwe have been angered by the pollution of water, the degradation of the landscape and the negative health impacts that mining companies have left in their wake. A group of nongovernmental organisations, including the Zimbabwe Environmental Law Association, has launched a project “to promote knowledge, understanding and [the] implementation of [the United Nations’s guiding principles on business and human rights] by mining companies in Zimbabwe”. Not only is it right to respect human rights, it is also sound business practice. A commitment to human rights in all aspects of corporate governance and management is beneficial not only to employees, supply chains and the broader community but also, ultimately, to shareholders. The mining sector, to play its full part in national development, promoting human rights and regaining its social licence to operate, must now take the lead. For more information on mining in Southern Africa and on how to address the human rights risks highlighted in this article, see the Business and Human Rights Resource Centre’s briefing note at businesshumanrights.org. Khanya Mncwabe is the centre’s Southern and Western Africa representative.

ZIMBABWE MINING REVIEW issue 1 2015

VACANCY

EDITOR

Position Description The Editor is the publicationâ&#x20AC;&#x2122;s editorial leader with a senior responsibility for the product Experience Zimbabwe Magazine.

Overview Experience Zimbabwe Magazine, the leading independent luxury travel publication, is looking for a new Editor to assume leadership of its editorial department and join our dynamic team in the heart of Cape Town, situated in one of the liveliest commercial capitals of the world. We are looking for an experienced and passionate Editor with solid knowledge of the tourism, luxury consumer and publishing industries and a history of editing luxury travel or lifestyle titles to manage the entire editorial operations of Experience Zimbabwe Magazine The Editor will lead a team of writers, reporters and designers, reporting directly to the Managing Editor / Publishing Director. The person we are looking for will have worked as an editor / journalist of a luxury/ lifestyle title for an established publishing company and be familiar with all aspects of print and digital publishing, from content creation, website development and digital applications to distribution, marketing and business rationale. Responsibilities will include the

ZIMBABWE MINING REVIEW issue 1 2015

creation of editorial plans and production timetables, overseeing the allocation of budgets, co-creating marketing campaigns, planning events, recruitment and talent management, seeking strategic partnerships and business extensions through new licensing agreements. The successful candidate will have a strong awareness of what it takes to manage a successful print magazine and later on a website, with experience and knowledge of the latest digital publishing techniques and technologies, and a sound understanding of how to put social media to strategic use. The Editor will manage the print and later online editorial teams, ensuring content consistency across both platforms They will effectively manage freelance budgets to commission high quality, engaging content from contributors around the world, but mainly from Zimbabwe. They will manage the entire production process from meticulously editing and writing copy to proofreading pages and approving final drafts for the press. The Editor will work closely with the design team, helping to create striking layouts and covers that bring out the best

of the content through powerful design concepts and images that convey the nature of the featured destinations. They will also ensure that the luxurious look and feel of our print edition is reflected on ExperienceZimbabwe.Com and all other online platforms, from social media to the apps. The individual will also work closely with the sales and marketing department and oversee liaison with the printing press to ensure all production timetables are planned and met in good time when called upon to do so by the Managing Editor / Publishing Director. The candidate will also have to be well introduced to the world of luxury travel and lifestyle, with a good knowledge of high-end brands in all fields of industry, from fashion and design to automobiles, airlines and hotels. The successful applicant will represent Experience Zimbabwe Magazine at local, regional and global events, and act as spokesperson at industry gatherings and conferences. The Editor will also be

responsible for managing and maintaining media partnerships with key travel industry events, radio shows and broadening the reach of the publication through new and innovative strategic partnerships Ultimately, the Editor will be responsible for the growth of the business through the creation of magazine and online content that is recognised for its quality and excellence around the world.

Key Skills The Editor will be an outgoing, personable, dedicated and ambitious individual who is bursting with ideas, with a keen eye for detail, fantastic organisational skills and a thirst for excellence. We’re looking for a hard worker with a positive attitude. Someone who thinks critically and have a solution to every problem you observe. You will be discerning and fastidious. You will be able to make quick decisions and be prepared to put in the necessary hours to ensure a marketleading product. The successful candidate will also have a

passion for luxury travel and be prepared to travel regularly.

Requirements • At least three years’ experience as editor of a high-end consumer magazine. • Experience working at a large publishing house. • A background in luxury travel and lifestyle or fashion. • Experience managing other individuals is essential. • Formal journalism qualification from a respected institution is a must. • Duties and responsibilities may be adjusted based on years of experience.

How to apply To apply for this role, please send your cover letter and resume to careers@primediazw.com. Only those applications that meet the specified criteria will be considered. If you think you’re up to the task, please submit your application below.

ZIMBABWE MINING REVIEW issue 1 2015

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MINE ENTRA: Zimbabwe’s Premier Mining, Engineering and Transport Exhibition The mining, engineering and transport exhibition (Mine Entra) remains the most reputable expo of its kind in Zimbabwe, and one of the largest in the Southern African region. Having been in existence for a successful 20 consecutive years, the expo has built a solid reputation of providing an integral business and networking platform. Known for its ability to bring together the ‘who is who’ of the relevant sectors, the objective of the expo is to serve the marketing needs of exhibitors and visitors alike. MINE ENTRA 2015: The 2015 edition of Mine Entra is set for 22 to 24 July under the theme, ‘Unearthing Opportunities.’ The exhibition will highlight the potential, opportunities and growth prospects in the region’s mining industry and its related sectors. WHY PARTICIPATE IN MINE ENTRA 2015? At Mine Entra you will: • Network with more than 2,500 global professionals all with a vested interest in the African mining value chain.

• Engage with potential clients, suppliers and business partners and establish long-lasting value-adding contacts and relationships. • Gain face-to-face contact with more than 300 local and international companies both on and off the exhibition floor. • Learn about the latest developments in mining worldwide and acquire innovative technological solutions that can improve efficiency and safety. • Meet with industry experts and hundreds of investors, financiers, policymakers and other mining stakeholders at the high level, industry-driven conferences. EXHIBITOR PROFILE: We invite exhibitors from the following product sectors among others: Mining: specialised companies supplying exploration, extraction, processing or beneficiation machinery and training requirements for the mining sector. Engineering: companies and consultants supplying expertise in geotechnology, earth sciences, electrical equipment, computing, design, earthmoving machinery, chemicals, environmental management and safety devices. Transport: from raw-materials handling to delivery networks, transport is the key factor in heavy industry and commerce. Conveyers, haulers, dumpers, personnel carriers, buses, all-terrain vehicles, rail locomotives, road carriers, mass transport, private vehicles, fuel, lubricants and accessories. Building and Construction: the newest products, trends and materials in the building, construction and property management industry. VISITOR PROFILE: Statistically, 90% of all Mine Entra visitors are decision

makers from around the region with the potential to invest and engage in business ventures with local business. These include managers of industrial enterprises, heads of representative offices of international companies, chief engineers, technologists, geologists, surveyors, marketing specialists, suppliers and distributors of materials and equipment, service-sector representatives and mining media, among others. MINE ENTRA 2015 DIARY 22 July: Mine Entra Conference 23 July: Joint Suppliers and Producers Conference 23 July: Mine Entra Official Opening Cocktail Mine Entra’s growth reflects a two-decade investment in building a relevant and targeted tradeshow that has helped uncover Zimbabwe’s wealth and potential. It’s been an amazing journey of 20 years and as proud as we are of our past, we are even more excited about our future. Register to exhibit at or visit Mine Entra 2015 via our website www.zitf.net. Alternatively, contact our Marketing

Team today at zitfmktg@zitf.co.zw to discuss a customised plan to suit your unique needs and budget. THE ORGANISERS: Mine Entra is organised by the Zimbabwe International Trade Fair Company, the leading international exhibitions, events and conference organiser in the country. Our exhibitions and events are the first place where industry trends, ideas and innovative products are unveiled. We bring together a diverse audience to promote trade and investment in the country. Founded in 1986, as a non- profit, limited liability private company, the ZITF Company’s vision is to be the world’s first choice in offering innovative opportunities for social and business interaction. The vision aligns with the company’s thrust to constantly reinvent itself with novel event management techniques to generate maximum benefit for our clients. Our future-oriented thinking, coupled with zeal to consolidate our market position, allows us to set new trends within the exhibition industry. While traditionally formed to organise and host the multi-sectoral exhibition, Zimbabwe International Trade Fair, our product offering has evolved over the years to reflect the new demands of the exhibition industry. For this reason, we offer digitally-enhanced services such as online meeting scheduling and an event app for all our major exhibitions, including Mine Entra.

. CONTACT DETAILS Zimbabwe International Trade Fair Company P O Famona, Bulawayo Tel: (+263-9) 884911-5 Fax: (+263-9) 884921 Email: zitfmktg@zitf.co.zw Website: www.zitf.net

MINING and Regional integration The Southern Africa Development Community plays an important role towards promoting regional integration in Southern Africa. Mining is very critical to the regional body’s work in promoting trade among states in the region. By OUR CORRESPONDENT

ining is an industry of strategic importance in Southern Africa. Roughly half of the world’s vanadium, platinum, and diamonds originate in the region, along with 36% of gold and 20% of cobalt. These minerals contribute greatly to several Southern African Development Community (SADC) member state national product and employment, and many of them depend on mineral exports for their foreign exchange earnings. Recognising the significance of the mineral industry within the region, SADC launched the Protocol on Mining in September 1997 which came into effect in February 2000, and has come to form the basis for SADC’s work programme on mining. This protocol aims to develop the region’s mineral resources through international collaboration, in turn improving the living standards of the people engaged with the mining industry.

THE PROTOCOL ON MINING As part of the Protocol on Mining, SADC member states have been engaged to harmonise their policies and procedures for mineral extraction, cooperating on improving technical capacity and sharing knowledge. With a goal to grow the mineral industry in Southern Africa, SADC member states also agree to encourage private sector

developments, including small-scale projects that promote economic empowerment of those who have been historically disadvantaged in the mining sector. Because mining can be a hazardous undertaking, the Protocol on Mining also requires that member states observe internationally-recognised health and safety and environmental protection standards. In order to facilitate these goals, the Protocol on Mining also calls for an organisational structure consisting of a

Committee of Mining Ministers, a Technical Committee of Officials, and a Mining Coordinating Unit to oversee mining operations and ensure that applicable standards are upheld.

HARMONISATION OF MINING POLICIES, STANDARDS, LEGISLATIVE AND REGULATORY FRAMEWORK IN SOUTHERN AFRICA As part of efforts to implement the Protocol

“With a goal to grow the mineral industry in Southern Africa, SADC member states also agree to encourage private sector developments, including small-scale projects that promote economic empowerment of those who have been historically disadvantaged in the mining sector. Because mining can be a hazardous undertaking, the Protocol on Mining also requires that member states observe internationally-recognised health and safety and environmental protection standards”

ZIMBABWE MINING REVIEW issue 1 2015

on Mining the SADC Secretariat, working with the United Nations Economic Commission for Africa (UNECA-SA) developed a framework for “Harmonisation of Mining Policies, Standards, Legislative and Regulatory Framework in Southern Africa”. The Framework was approved by the SADC Mining Ministers in March 2006, in Antananarivo, Madagascar. Subsequently, the SADC Secretariat partnered with UNECA-SA to develop an Implementation Plan, to translate the Framework into an operational programme of activities. The resultant Harmonisation Implementation Plan was adopted by SADC Mining Ministers at their meeting held on 12th November 2009 in Kinshasa, Democratic Republic of Congo. The Harmonisation Implementation Plan has eight themes or areas of work grouped into categories of related activities.

ENCOURAGING INVESTMENT Since releasing the Protocol on Mining in 1997, SADC has organised several activities to promote mining investment, such as the SADC-EU Mining Investment Forum – Mines 2000 and the Australia-SADC Forum. Both forums successfully boosted awareness of the region’s mineral abundance and directly spurred investment in the region. Likewise, the Protocol on Mining prompted several member states to sign bilateral agreements with countries outside SADC, which has boosted investment. A recent success story regarding investment comes from Tanzania, which attracted considerable investment after it modernised its mining legislation, following encouragement and support from SADC. It is now one of the SADC region’s leading gold producers.

CONFLICT MINING AND THE KIMBERLY PROCESS Historically, illegal mining and trade in gemstones has been used to fund conflict in parts of Southern Africa, which can have a devastating effect on the people living in conflict areas – a practice SADC is

ZIMBABWE MINING REVIEW issue 1 2015

committed to eliminating. In 2000, SADC took action to prevent the trade in illegal diamonds from affecting legitimate ones. The United Nations followed the recommendations of the Committee of Mining Ministers and supported certification for rough diamonds, known as the Kimberly Process. In 2003, the Kimberly Process Certification Scheme was launched, ensuring the implementation

of a series of United Nations Security Council resolutions and sanctions on trade in conflict diamonds; as a result promoting international peace and security The Kimberly Process does not encompass illegal trade in other minerals; however, SADC is working to improve regulatory frameworks that govern mineral trade in order to remove potential for mining to provide any funding for conflict in the region.

MOZAMBIQUE 路 OLYMPIC VILLAGE