Zimbabwe Mining Investment Opportunities

8/8/2019 Zimbabwe Mining Investment Opportunities

http://slidepdf.com/reader/full/zimbabwe-mining-investment-opportunities 1/16

ZIMBABWE MINING INVESTMENT OPPORTUNITIES : [ 1

( i ) Abandoned , dormant and forfeited mines , and current mines ;

(ii ) Excellent farmer/miner relationships ;

(iii) Good rail and road network plus excellent telecommunications network ;

(iv ) Up to date Geological Maps ;

(v ) Exploration Maps showing current Exclusive Prospecting Order ; Exclusive

Prospecting Licences , and current Reserved Areas ;

(vi) Comprehensive Mining Legislation ;

(vii) Environmental Impact Assessment Studies ; and

(viii) Talks of Tax Incentives etc . etc.

( Prepared by E.A. Smythe LLB ,(Retired Mining Commissioner ).



ZIMBABWE MINING INVESTMENT OPPORTUNITIES : [ 2 ]

y Abandoned Mines : ( See Sections 258 to 273 of the [Ch.21.05 ] Act ).

y Q. Why are mines abandoned ?

y R. Several reasons including mine accidents; or the mine was originally registered for speculative reasons ; water or flooding problems ; labourdisputes ; cash flow problems ; geological anomalies; erratic electricity supply ; lack of adequate infrastructural development at the time whenmine was originally registered ; lack of essentials like lubricants ,cyanide, zinc shavings etc ; other reasons .

(Prepared by E.A. Smythe LLB ,(Retired Mining Commissioner ).



ZIMBABWE MINING INVESTMENT OPPORTUNITIES [ 3 ]

Forfeited Mines : ( Sections 255 to 273 of Mines and Minerals Act [ Ch.21.05 ]).

y Q. Why are mines forfeited ?

y R. Mines are forfeited for ....failure to obtain [an ] inspectioncertificate for the block [ of claims ] .. ( See section 260 of the Act )..




Dormant Mines :

Q. What are dormant mines ?

R. Dormant mines are registered mines that are not being worked because of a variety of reasons such asthat the dormant mine may be part of a unit of mines that were pegged and registered as potential ore

reserves ; or the dormant mine is not being worked because of cash flow problems; and/or geologicalanomalies ; and/or the mine was registered in remote area at a time when there was no access to water ;and/or no access to electricity ; and /or no access to road and rail networks ; and/or the dormant mine was registered for speculative reasons .

Dormant mines in Concession areas may be expropriated . ( See section 115 of the Mines and Minerals Act [Chapter 21 : 05 ] ) .


ZIMBABABWE MINING INVETSMENT OPPORTUNITIES : [4 ]




y Current Mines :

y Q. Why do current mines appear to be underdeveloped ?

y A. Several reasons , including geological anomalies ; and /or cashflow problems; water and flooding problems ; and /or lack of essentialitems like lubricants , cyanide , graphite , zinc shavings ; inadequateand/or inappropriate mining equipment ; and/or erratic supply of electricity ; and/or the mine may be located in a remote area that isnot serviced with good road and /or rail infrastructure ; and/or lack of

technical expertise ; and/or labour disputes ; poor workingconditions; and/or inadequate health and safety facilities ; and/or pooraccommodation for all mine workers ; and/or poor welfare andcommunity facilities ; etc . Etc

y ( Prepared by E.A. Smythe LLB, Retired Mining Commissioner ).




y Farmer/Miner Relations :

y The Ministry of Mines encourages good farmer/miner relationships.

y http://www.newsfromafrica.org/newsfromafrica/articles/art_786.html




ZI E I I I ES E I IES : [ 7 ]Infrastructure :

Up to $ 1 billion to be spent to improve regional road network in Botswana,DemocraticRepublic of Congo, Malawi , Mozambique, South Africa , Tanzania , Zambia, andZimbabwe:

.... http://www.guardian.co.uk/world/2009/feb/19/africa-transport-network-britain

....talks of $7 billion rail network linking Botswana, Zimbabwe and Mozambique :

http://www.worldconstructionnetwork.com/news/zimbabwe_botswana_and_mozambique_ink_access_agreement_to_build_rail_link_100908/

Talks to spend up to $ 280 million to upgrade telecommunications network :

http://www.balancingact-africa.com/news/en/issue-no-464/money/telone-seeks-us280-million-for-infrastructure-development-in-zimbabwe




ZIMBABWE MINING INVESTMENT OPPORTUNITIES : [ 8]y The GreatD yke : North to South orientation

y About 530 Km long craton with rock formations

estimated to be about 2 billion years old ;y Rich in platinum , gold and chrome ;y http://earthobservatory.nasa.gov/IOTD/view.php?id=4414

y Large map of GreatD yke :y http://earthobservatory.nasa.gov/images/imagerecords/4000/4414/dyke_ast_2000242_lrg.jpg




ZIMBABWE MINING INVESTMENT OPPORTUNITIES :[9]y Acquistion of Mining Title :

in terms of the Mines and Minerals Act [ Chapter 21.05 ] :

y Base metal and Precious metal Blocks ( see Part IV Sections 20 to 62 );

y Exclusive Prospecting Reservations ( See Part VI Section 86 to 119 ) ;

y Transfer of Mining Title ( Part XVII Section 274 to 284 ) ;

y Mining Leases ( Part VIII Section 135 to 157 ) ;

y Special Mining Leases ( Part IX Section 158 t0 168 ).

y Tribute Agreements ( Part X VIII Section 283 to 290 )y Special Grants ( See Part XIX 291 to 296 ) ;

y Special Grants for Coal , Mineral Oil and Natural Gas (see Part XX section 297 to 307 );




Zimbabwe Mining Investment Opportunities [ 10 ]y EXTRACT FROM INTERNET as at 1st November 2010 about 0945 hours : See ScienceDirect Resources

y http://www.sciencedirect.com/science?_ob=ArticleURL&_udi=B6VBM-3SX1JNT-5&_user=10&_coverDate=06%2F 30%2F1997&_rdoc=1&_fmt=high&_orig=search&_origin=search&_sort=d&_docanchor=&view=c&_searchStrId=1523579178&_rerunOrigin=google&_acct=C000050221&_version=1&_urlVersion=0&_userid=10&md5=f1c147a179f17958ed907470b117a54c&searchtype=a

.....John Hollaway ( John Hollaway and Associates, 6th Floor, Beverley Court, 100 Baker Avenue,Harare, Zimbabwe . Available online 10 June 1998.).

Abstracty .........Zimbabwe's economic geology features hydrothermal deposits and

therefore, while its mines are generally small, it has several hundred formaloperations. Initially the mining law was exceptionally facilitative by Africanstandards, although it has since been rendered more sensitive to other ruralinterests. At first, too, the colonial administration imposed crippling rents onoutput but their self-defeating nature led to their abandonment. Three main

features of mineral policy have emerged since independence in 1980: (1) stateparticipation in production and supervision of sales; (2) specific regimes forsome artisanal mining; (3) ad hoc arrangements for the legal and financialenvironments of major foreign investors; and (4) the withdrawal of mining-specific tax benefits. Zimbabwe has been seen as a model for other Africancountries with similar resources but with negligible formal mining sectors.However the trends above are all in the direction of conditions already in placein such countries.......





Old Mines Re-opening :

http://www.4castresearch.com/mining-sector/gold/250-zimbabwe-gold-mines-begin-to-re-open-but-uncertainty-stifling-big-investment.html

Signs of Economic Recovery :

http://www.tradeinvestafrica.com/feature_articles/227486.htm

( Prepared by E.A. Smythe LLB, Retired Mining Commissioner ).



ZI E I I I ES E I IES [12]

y Environmental Impact Assessment ;

y Siting of Works plan approved in terms of section

y

Avoidance of toxic waste spillage into rivers orstreams ;

y Funding for adequate protection of dangerous mine workings to ensure the permanent safety of livestockand persons ;





y Projected growth rate by December 2010 8.7 %

y

http://www.talkzimbabwe.com/biti-revises-growth-projections-for-the-third-time-cms-772



ZIMBABWE MINING INVESTMENT OPPORTUNITIES : [ 4 ]y EXTRACT FROM ARTICLE WRITTEN BY MUNYARA DZI MUGOWO See NEWSD AY 8TH JUNE , 2010

y ......Chamber of Mines of Zimbabwe (CMZ) calls for larger mines :

The Chamber of Mines of Zimbabwe (CMZ) wants the government to consider themerits of promoting large mines that enjoy economies of scale and greater accessto capital and markets, as opposed to numerous small projects exposed tostifling 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 thegovernment in a indigenisation law until the country builds its own capital.

Record hyperinflation destroyed Zimbabwes 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 webuild our own capital, its possible to achieve higher equity stakes. Which meansit is possible to have even 100% equity being locally owned, Victor Gapare, CMZPresident, said. ...... .

y

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



ZIMBABWE MINING INVESTMENT OPPORTUNITIES [ 5 ]y Extract of Article in Newsday 8th June 2010

y Chamber of Mines of Zimbabwe (CMZ) calls for larger mines Article by MUNYARA DZI MUGOWO

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

He added that over 50% of Zimbabwes mineral rights were in the handsof blacks and government-owned institutions, particularly theZimbabwe MiningDevelopment Corporation, Minerals Marketing

Corporation of Zimbabwe and Hwange Colliery Company Limited.What must happen is that the people holding these mineral rights mustlook for partners who will bring in capital and develop these mineralrights. ( Victor Gapare, CMZ President ).



ZIMBABWE MINING INVESTMENT OPPORTUNITIES : [ 6]y .........The government has already signaled it would accept a diluted indigenisation model

proffered by the sector, which seeks to balance the aspirations of the country and the needsof investors, to avoid freezing new investments.

The government in January published a set of general regulations on indigenisation andeconomic empowerment, which put into force the Indigenisation and Economic

Empowerment Act triggered investors to plans to expand or open new mining investments inthe country on worries of expropriation.

The policy shift effectively supplants indigenisation with empowerment through a system of equity-equivalent credits, which dilutes the minimum equity demand and removes theceiling initially imposed on foreign ownership.

The law, passed roughly two years before, primarily seeks to warehouse at least 51% of largemines and other firms for local investors as an instrument of economic empowerment.

Foreign-owned entities, including those listed on the local bourse, have up to five years tophase in the equity changes and until end of June to disclose their shareholding to theMinistry 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 thestatutory threshold of 51%....... .

( Extract from Newsday 8th June ,2010 Chamber of Mines of Zimbabwe (CMZ) calls for larger mines Articleby MUNYARA DZI MUGOWO ) .

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

y

Documents

Zimbabwe Mining Investment Opportunities