Home News Top 5 Mining Headline Stories of the Week.

Top 5 Mining Headline Stories of the Week.

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1. Canada-based Caledonia Mining Corporation on Friday said it plans to raise up to USD 13 million (EUR 11.1m) through a share sale to finance a nearly 20-MWp solar project at its gold mine in Zimbabwe.

The company has signed a sales agreement with Cantor Fitzgerald & Co for the sales agent to sell up to USD 13 million in shares in Caledonia Mining on the New York Stock Exchange American. The company has also filed an application to London Stock Exchange’s AIM market for a block admission of up to 800,000 new depositary interests, which represent the same number of shares in the company.

Caledonia Mining plans to build the solar power facility at the Blanket Mine in Zimbabwe in three 6.55-MW phases, with the total project expected to be worth up to USD 18 million. Excess power generated by the solar plant is planned to be fed into the grid under an agreement with the local utility. Source: Renewables Now.

2. ZIMBABWE has granted coal bed methane (CBM) special grants to six investors in Matabeleland North province as it seeks to tap into cleaner fuel for electricity generation, a move which has been cheered by climate advocates who view the development as critical in efforts to curb climate change.

Among the companies that have been granted CMB concessions are Tumagole of South Africa, Sakunda Holdings and Shangani Energy Exploration (SEE), which is owned by Chinese steel giant, Sinosteel. 

“About six companies have so far been granted license to explore coal bed methane gas and the Lupane, Gwayi and Hwange region could become a major investment attraction in the country,” an official in the Ministry of Mines and Mining Development said, but refused to be identified because he is not allowed to talk to the press. 

Zimbabwe is said to have huge deposits of untapped coal bed methane gas in the Hwange, Lupane and Gwayi areas, but their commercial viability has not yet been supported by geological information. Source: The Chronicle.

3. Zimbabwe’s emerging power projects have the potential to earn at least US$3 billion in annual energy exports from the current position of energy insufficiency, Mines and Mining Development Minister Winston Chitando has said. 

Minister Chitando said this when he addressed a news conference in Harare yesterday (Thursday) to give a summation of President Mnangagwa’s two-day working visits of coal mining and power generation projects in Hwange earlier this month.

Power generation projects visited by President Mnangagwa in Hwange include Zambezi Gas and Coal Mine which is envisaged to produce 750 Megawatts (MW) on completion.

Also working on power generating projects are Western Areas (600MW), Jinan (600MW), Tsingshan (100MW) and Zimbabwe Zhongxin Electrical Energy (430MW) Source:The Herald.

4. Negotiations for the second-quarter minimum wage in the mining sector are still ongoing with indications that 52% of the agreed minimum wage will be paid in foreign currency, businessdigest has learnt.

Mineworkers and the Chamber of Mines began discussions over wage increments for the second quarter in mid-May this year.

The negotiations are being held amid a deepening economic crisis characterised by a crippling liquidity crunch, shortages of fuel and foreign currency, low capacity utilisation and runaway inflation.

Information gathered by businessdigest revealed that the negotiations could have been concluded, with parties settling for about ZW$14 000 as a minimum wage.Indications are that parties are agreeing to award a 100% wage increment which will see the lowest paid employee earning about ZW$14 000 per month, up from ZW$7 000. Source: allafrica.com.

 5. Platinum group metals (PGMs) prices are expected to remain robust in the short term, with demand and supply starting to balance.

Covid notwithstanding, the average realised dollar basket price of Anglo American Platinum (Amplats) in the six-month to June 30 was 56% higher year-on-year at $1 956 a PGM ounce, and the rand basket price 80% higher at R32 166 per PGM ounce. Net sales revenue increased by 28% to R54.8-billion.

Platinum, palladium and rhodium are expected to remain in deficit this year, Amplats CEO Natascha Viljoen stated in the JSE-listed company’s report for the period in which it delivered 6%-higher R13.1-billion of earnings before interest taxation, depreciation and amortisation and declared an interim gross cash half-year dividend totalling R2.8 billion.

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