The Mine Manager Official Magazine

Volume 1 : 2021 The Mine Manager Association of Mine Managers Zimbabwe Official Magazine Coburn Katanda All roads lead to Re-Elected AMMZ Caribbea Bay : Kariba President for the 2021 AMMZ AGM & 2021 General Council Conference Highlights page 2 page 6 cover story Talking mining with caston musa Anglo-american platinum: exclusive interview inside!! page 52 Over 900 delegates participate at the 2020 Global Virtual Conference page 79 Anglo-platinum technical visit a resounding success page 64 'Advancing the Science and Practice of Mining in zimbtahbewmeinesimnacnea1g9e7r2v'olume 1 | Page 1

Advancing the Science and Practice of Mining in Zimbabwe since 1972 To over: + 50,000 Mining Industry Professionals +35,000 formally registered mining industry employees +300 Mine Managers Page 2 | the mine manager vo#lugmee1 tting smart underground

All roads lead to Caribbea Bay in Kariba for the Annual AMMZ AGM & Conference under the theme: Mining in the New Normal-Transforming Knowledge for Today & Tomorrow This is an opportunity to Mining professionals and service providers to participate in: •Knowledge sharing •Science & Practice of Mining •Networking, Exhibition & Advertising •Recreation & Relaxation Follow us on: Association of Mine Managers of Zimbabwe(AMMZ) Association of Mine Managers Zimbabwe OfAmmz Contact us on: [email protected] Chamber of Mines OFFICIAL MEDIA PARTNERS [email protected] [email protected] +263 242 480 219 [email protected] +263 086 442 19610 +263 242 334 390 +263 776 590 901 +263 774 300 662 +263 717 990 748 the mine manager volume 1 | Page 3

Volume 1 : 2021 Contents Cover Story Talking mining with The Mine Manager Caston Musa Caston Musa Anglo-american platinum: Association of Mine Managers Zimbabwe Official Magazine exclusive interview inside!! Page 52 www.ammz.co.zw 6 Coburn Katanda Contact us Re-Elected AMMZ President 20 Mount Pleasant Drive, 2 All roads lead to Mount Pleasant, Harare, Zimbabwe Caribbea Bay : Kariba P.O Box 712, Harare, Zimbabwe Email: [email protected] [email protected] [email protected] Tel: +263 242 334 517 +263 242 334 507 Mobile: +263 782 708 397 +263 774 300 662 Chief Editor Innocent Guvakuva Editorial Team Judith Manyeruke Tinashe Murasi Bibiana Bvumbura Advertising & Sales Valentine Pirirayi Caroline Damioni Disclaimer The opinions expressed in the The Mine Manager Magazine do not necessarily reflect those of the AMMZ, Publisher or their agents. Any unauthorised copying of this publication,or of articles or columns herein other than for personal use or internal reference, without the express written permission by the Association of Mine Managers is strictly prohibited. Published by: Pagwew4w|.wtehaelmthintaelkm.acona.zgwer volume 1

Anglo-Platinum Technical visit: Page 64 72 Over 900 delegates participate at the 2020 Global Virtual Conference Volume 1 : 2021 The Mine Manager Association of Mine Managers Zimbabwe Official Magazine The official quarterly magazine of the Association of Mine Managers Zimbabwe. Celebrating 49 years of advancing the science and practice of mining in Zimbabwe since 1972. since 1972 the mine manager volume 1 | Page 5

AMMZ leadership Chief Editor’s Note Innocent Guvakuva, 37 is the current Vice President of the Association of Mine Managers Zimbabwe (AMMZ). He is a mining engineer with over 15 years’ experience with several blue-chip companies including Anglo American BNC Trojan Mine, Impala Mimosa Mine, Rio Tinto Murowa Diamonds. He is currently the Head of Mining at ZCDC. He holds a BSc in Mining Engineering and an MBA from the University of Zimbabwe. Innocent holds several positions that are aimed in the development of the Mining Industry in Zimbabwe: Professional Profile Welcome to the inaugural Mine Managers Magazine, the Vice President AMMZ 2020 - 2021 official magazine of the Association of Mine Managers Zimbabwe School of Mines Board Zimbabwe. This edition offers tantalising insights from Member 2021 - 2023 the current association’s leadership, insights on the Academic Committee Chair Zimbabwe incumbent commodity super-cycle, details of the Unki School of Mines 2021 - 2023 Mine Technical Visit which was held in April in Shurugwi Vice Chair - SHE Committee Chamber District, and so much more. The magazine catches of Mines 2020 - 2021 up with the technical visit crew and offers an update Conference Director – AMMZ Annual on the key highlights of the technical voyage. Talking Mining is a section dedicated to Mine Managers who Conference 2019 - 2021 are the footmen on the ground in Zimbabwe’s mines. Content Developer – AMMZ LinkedIn Our knowledge sharing section provides a peep into and Twitter Accounts 2021 the current technological and smart mining trends any Interim Committee Member – UZ Mining serious mining professional must not miss. Global commodities entered a COVID – 19 induced Engineering Alumni 2020 – 2021 super – cycle, with commodities trading above their Author - “The Corporate Mining long-term price trend. Commodity prices boomed in Handbook” due for release in 2022 the period in review, boosted by a snap back in global Ordinary Member of a Group that demand and bullish sentiments in safe-haven metals supports a Local Charity Organization - such as gold. The base metal group was also influenced current by the Covid-19 vaccine rollout, with Copper and tin busting decade long price trends. This reflected the Innocent is a Family Man, Golfer and fact that strong domestic and foreign demand for Manchester United Supporter. Page 6 | the mine manager volume 1

AMMZ leadership China’s factory goods fuelled increases in communication platforms, such as our global commodity prices. The strength in website and social media accounts. commodities, which have surged over the All roads lead to Caribbea Bay Resort in past year, is set to subsist for the short to Kariba, for the 49th Annual General Meeting medium term, as economies across the globe and Conference of the Association of Mine seek to gain ground on lost economic ground Managers Zimbabwe. This conference during the pandemic. Ruthenium ruled the will run from 18-21 November 2021 under PGMs basket, by registering a price increase the theme “Mining in the new Normal – of 196% between 31 December 2020 and Transforming Knowledge for Today and 31 May 2021. The commodity price outlook Tomorrow”. This years’ conference will remains bouyant as the super-cycle presents run on the back of the successful hosting fresh impetus for growth and investment in of the 2020 Global Virtual Conference, the mining field. which was attended virtually and physically The Zimbabwean economy is expected by over one thousand delegates who to grow by 6% in 2021, and the Mining sector tuned in via Facebook livestreaming will continue playing a vital role in the local (nine hundred delegates), Zoom (two economic matrix. The usual parameters still hundred delegates), and physically (42 affect the viability of the local mining industry, delegates) via the conference command from Government Policy and Regulations, centre at Wild Geese Lodge in Harare, Foreign Currency Regime and Constrained Zimbabwe. Delegates tuned in from more Access to Capital. The thrust towards the than 10 countries, availing an excellent achievement of the USD12billion Mining opportunity for dialogue, exchange and Industry by 2023 is a positive policy signal a laboratory of ideas and actions across demonstrating the Government’s commitment mining jurisdictions and disciplines. These to enhancing the ease of doing business in participants were from various countries the Zimbabwean Mining Sector. which included Zimbabwe, South Africa, The 2021 AMMZ General Council elections Canada, Botswana, Germany, Australia, UK, were held virtually in strict compliance to Zambia, and Kenya. This conference was COVID-19 regulations and the 2020 leadership made possible by our Strategic Partners retained their positions. Members of the and Sponsors who partnered the AMMZ association voted unanimously for the to make the event a resounding success. present leadership to forge ahead and lead We look forward to more collaboration the associations’ initiative of advancing opportunities as we seek to advance the science and practice of mining and the science and practice of mining in supporting disciplines in Zimbabwe. The Zimbabwe. Association appreciates its members and is cognisant of the great trust and responsibility Innocent Guvakuva vested in them. The body represents over three hundred mine managers, and thirty Vice-President five thousand formally registered mining Association of Mine Managers Zimbabwe industry employees and professionals in the local mining industry. There has never been Happy reading!! a better time for all mining professionals to update their membership by contacting our the mine manager volume 1 | Page 7 membership desk via our various digital and

Coburn Katanda President of The Association of Mine Managers Zimbabwe Page 8 | the mine manager volume 1

AMMZ leadership Coburn Katanda Re-Elected AMMZ President Mr. Katanda is a Mining Engineer by Professional Profile Profession. He holds a BSc Honors in Mining Engineering from the University of Zimbabwe and an MBA from Harriot Education: Watt University, Edinburgh Scotland. He has 15 years industry experience Bachelor of Science (Hons) Degree starting off as a Graduate Trainee in Mining Engineering (UZ), Mining Engineer at Zimbabwe Alloys Masters of Business Administration Limited in 2007. He later rose to (MBA), Harriot become Mining Engineer, then Mine Watt University Edinburgh Scotland. Manager by the time he left Zimbabwe Alloys Limited. In late 2009, he left Zimbabwe Alloys Work Experience: Limited and joined VUYA Resources Private Limited – a local contracting 15 years. company which was working in the Lalapanzi Area, mining chrome for both the export and local markets. Companies Worked For: In 2012, he joined Lafarge Cement Zimbabwe as the Quarry Manager, ZimAlloys (2007 - 2009) responsible for all mining operations VUYA Resources (2009 - 2012) within the Cement manufacturing Lafarge (2012 - 2020) giant’s Industrial Department. During Tharisa Ser. Ltd (2020 - date). his tenure at Lafarge, he also managed the Maintenance & Production Departments. In 2020, he joined Tharisa Administration Services as the Mining Manager. The Group is operating in Zimbabwe as Karo Platinum Private Limited & Salene Chrome Zimbabwe Private Limited. He then became the Maintenance manager for two years, looking after the whole production since 2012. He joined Karo Resources in 2020 as the Country Mine Manager. the mine manager volume 1 | Page 9

AMMZ leadership AMMZ: Five working Committees Mr. Katanda had a sit down with the The Mine Manager 1 Special Projects Team Magazine (TMM) to discuss the 2 SHE & Collaborations Team mandate of the Association of 3 Technology Academia and Mine Managers and his targets as the incumbent president (Mr. Innovation Team Katanda: Mr. K). 4 Finance and Fundraising Team 1. Background & Work 5 Membership Public Relations Experience and Communications Team Congratulations Mr. Katanda on your appointment as the President of the Association of Mine Managers of Zimbabwe (AMMZ). May you kindly give us a brief description of your work experience and background within the Mining Industry, for the benefit of our readers, and to inspire other mining industry professionals? Mr. K: Thank you Mine Manager magazine for this opportunity. I am a Mining Engineer by Profession, with a collective 15 years of experience within the Zimbabwean Mining Industry with experience in the Chrome, Cement and Platinum sectors. 2. Link with AMMZ TMMM: May you give us a brief background of how you joined the AMMZ until becoming its President? Mr. K: I have been a member of the Association since 2014. Page 10 | the mine manager volume 1

AMMZ leadership I was elected as an AMMZ councilor in 2016 office from 2020-2021. and served as the Vice President from 2018 to 2019. I was elected as the President in 4. Goals & Mandate of the November 2019 at the AMMZ Annual General Association of Mine Managers Meeting (AGM) in Nyanga. (AMMZ). 3. Structure of the AMMZ TMMM: Our understanding is that The Association of Mine Managers of Zimbabwe TMMM: For the benefit of our readers, may you provides a platform for mining industry kindly give us a brief description of the AMMZ professionals to discuss, evaluate and debate: & its structures? Mr. K: The AMMZ has been in existence • mining and minerals policy, for the past 49 years, and was formed in • technical innovations 1972 to advance the science and practice • safety and health challenges and; Mining and supporting disciplines such as • advancements in mining operations Surveying, Geologies, and Rock Sciences. in the country. It is a vehicle for information exchange and dissemination on good practices and seeks What goals and targets have you set for the to promote the study and growth of Mining AMMZ towards the achievement of these and allied disciplines. This is done through objectives during your term of office? supporting universities and institutions such as the Midlands State University, University Mr. K: The strategic objective of the AMMZ of Zimbabwe and the Zimbabwe School of is to actively contribute to the growth of the Mines, to ensure that the graduands that come Mining industry in line with the vision of the from these institutions are trained in line with Ministry of Mines and Mining Development. Mining Industry needs. In addition, the AMMZ As Mine Managers, we are committed to the has representatives who sit on the Zimbabwe accomplishment of these objectives as the School of Mines Board and its Academic people who are on the ground and running Committee. We also get the graduates the mines. The growth & turnaround of the as interns and work with the School and economy is hinged on Mining to grow to a Universities to develop future Mining Industry USD12bn industry by 2023; in line with the employees. The AMMZ was involved in the Ministry’s target.Our goals and targets are Launch of The School of Mining and Earth summarized in the four key pillars that we Sciences at the University of Zimbabwe and are pursuing to ensure we set the platform to has seconded its member to the board. achieve the USD12bn Industry target: The AMMZ structure has the President, • Pillar 1: Mining Regulations Review Vice President and five to eight council members who are elected into office for a There are two main sets of regulations one - year term, with a maximum term of two currently governing the operations of years in office, subject to election by AMMZ Mines in Zimbabwe and these are: Mining membership at the AGM. The current AMMZ (Management and Safety) Regulations and council members were elected for a term of the Explosives Regulations. Both regulations where donelast done about 30 years ago. One the mine manager volume 1 | Page 11

AMMZ leadership was last done and updated in 1981 and supplier facility, these will be essential for the other in 1990. As you are aware since benchmarking and creating platforms for then, a lot of innovations and technological information exchange. advancements have taken place. Currently In addition, it can serve to help mines Mine Managers and the Ministry of Mines optimize their operations, for example are ceased with a lot of exemptions as a where an operation may be doing well in lot of sections of these regulations are no one aspect but not so well in another, they longer applicable, but because it’s the law, can simply identify other mines doing well you have to apply for exemptions where a in their areas of weakness and replicate specific section no longer applies to your their model in that area to optimize their operations. operations. During the technical visits, the host mine/supplier visited will also present A lot of time is being spent on a technical paper on a topic of interest. administrative work. We should not The technical papers from such visits will be focusing on applying and obtaining be shared with the general membership exemptions but on optimizing our to enhance our appreciation of general operations as an industry in general. practices and what will be done at various Therefore, it is important to work on a mines. completely new set of regulations that are relevant to existing Mining conditions. The • Pillar 3: Registration of AMMZ as a Ministry of Mines and the AMMZ and other professional body stakeholders such as Explosives suppliers, are currently working on updating the Currently, the AMMZ is a social association regulations to reflect where we are and how and is not registered professionally, as we are doing business as Mines. In the 21st required by existing laws. Every Mining century for example, open pit mining is now professional is currently going to the quite pronounced compared to 30 years Zimbabwe Institute of Engineers for ago but because of the archaic regulations registration in order to comply with the law. it is loosely governed. The Zimbabwe Institute of Engineers is not structured to cater for most mining • Pillar 2: Benchmarking, Engagement, professionals making registration a mere Collaboration. compliance exercise. With support from the Chamber of Mines we have initiated In line with the vision of the founding the process of having the AMMZ being fathers vision for the AMMZ, we would registered as a professional body with the like to create a platform for Mining Engineering Council of Zimbabwe (ECZ). professionals, Mining stakeholders and This will allow Mining professionals to suppliers to meet routinely and exchange comply with the law through registration via ideas. We envisage a scenario where proven a Chamber of Mines affiliated body. practices are shared widely amongst Mining professionals and suppliers to shorten • Pillar 4: Reviving Co-operation and learning curves. To this end, we will be Co-ordination with Chamber of Mines conducting technical visits at least once (CMZ) Affiliated Associations. every quarter to a designated mine. On a Under the CMZ we have other associations Page 12 | the mine manager volume 1

AMMZ leadership like the ZINIRE (Zimbabwe Institute of Rock gaps and motivate for them to be addressed. Engineers), AMMZ( Association of Mine Surveyors), etc. They are affiliated to the We use people with the necessary experience COMZ but during the past years we have lost in the area of Mining to do these audits in a touch resulting in the duplication of effort. For competitive environment where each mine example, in the Mine regulations I mentioned is given a score based on the protocol and earlier there is a section looking at Mining a grand prize is awarded by the AMMZ as a Surveying, and as the AMMZ we can look into floating trophy to the winning Mining house at this area but we are not Surveyors, thus closer the annual AMMZ AGM. The winning Mining cooperation will avoid duplication. Greater house will automatically get a slot on the synergy amongst associations affiliated with technical visits I mentioned earlier. Thus if the COMZ will enable efficiency and greater a Mine is doing exceptionally in the area of coordination and collaboration towards the Health and Safety all mines must visit them achievement of greater goals. and draw lessons on how they are running The AMMZ Vice President is responsible for their Health and Safety management system. this specific area of reviving cooperation and Eventually the proven practices will be shared collaboration amongst associations to enable widely. greater cohesion towards the achievement of the greater goal of a USD12 billion Mining In the area reviewing of regulations, there is Industry by 2023. also need to make them more modern and enable safer operating environment on – site. 5. Mine Health & Safety For example multi – nationals in the mining sector have more stringent SHE procedures TMM: Mine Managers have largely been held than what is expected locally. The Zimbabwe responsible for mine accidents; what will be Institute of Engineers is not structured to your strategy in addressing this key area? cater for most mining professionals making Mr. K: Indeed, the Mine Manager is the registration a mere compliance exercise. custodian of Health and Safety at any Mining operation. Our main role is to ensure that the Thus the regulations in this area should be men and women who work at our mines are in modernized to meet global standards. a safe working environment at any given point Also, a resolution was made in the 2019 AGM in time. Our role has always been pro-active to co – opt the President of the MRAZ into and focusing on preventing Mine accidents. AMMZ Council in order to enhance the role and The AMMZ hosts SHE Competitions in involvement of AMMZ with regards to disaster conjunction with the Chamber where all COMZ preparedness. Members and affiliates participate annually. Every Mine is audited with the audits being The AMMZ also seconds its members to sit done by peer mines. The audits are meant on boards within the Ministry of Mines that are to identify gaps and highlight these gaps to responsible for training, screening, certification Mine management to facilitate the process and issuing of licenses by the Ministry in key of closure and prevention of accidents. For areas such as blasting. Most accidents usually example Trojan and Mazowe Mine team can arise from this aspect of our operations thus not go to Zimplats to audit them, highlight it is imperative for us as mine managers to the mine manager volume 1 | Page 13

AMMZ leadership have a say on who is licensed to perform these abundant solar energy and setting up storage duties. facilities on – site and powering up those areas where less power is required in the production With support from the Chamber of Mines we set up. Thus the idea is to analyze the energy have initiated the process of having the AMMZ mix for each Mine and source the most ideal being registered as a professional body with the type of power to suit it; whilst minimizing Engineering Council of Zimbabwe (ECZ). This dependence on one source, (i.e. usually and will allow Mining professionals to comply with mainly the ZESA grid) to achieve continuity of the law through registration via a Chamber of operations. Mines affiliated body. AMMZ’s role is to provide technical input into 6. Meeting the Energy Demand of various discussions and engagements that Zimbabwean Mines. are ongoing between the Chamber Executive Committee and Government. TMM: The State of the Mining Industry Survey 2019 reiterated that the main challenges that Suppliers like Caterpillar are now focusing on faced the Mining sector in 2019 were regular durable diesel generators which can run for 24 and prolonged power outages as well as hours and 7 days a week if required.These are inadequate foreign exchange retentions, which some of the temporary solutions that we are in turn are adversely affecting the cost of looking at. With regards to the Power Supply production. What is the AMMZ doing about the issues and the Forex retention thresholds for current challenges facing the Zimbabwe Mining the Mining sector, resolving these two issues Sector at the moment? is key for the Mining Industry to achieve the USD12 billion status by 2023 in line with the Mr. K: Indeed, these are the two greatest Road Map of the Ministry of Mines and Mining challenges that we are ceased with as Mine Development. ■TMMM Managers today. At our last AGM in Troutbeck Inn in Nyanga, one of our plenary discussions was actually focused on power issues and representatives from ZERA, ZETDC and experts in the Alternative Power Supplies sector where present to lead us into thinking outside of the box and thinking of energy alternatives. A few mining houses have started investing in Solar solutions as an alternative in areas that are not necessarily power intensive in their Mine production set up. Alternative sources of power are currently being explored with experts to complement current power supply and minimize interruptions. Important ideas emanated from this plenary discussion especially around harnessing the Page 14 | the mine manager volume 1

AMMZ President Note & 2021 Council MembersA’MPrMoZfileasdership the mine manager volume 1 | Page 15

AMMZ leadership : Council Members Coburn Katanda is the current AMMZ President. He has 13 years industry experience and currently works for Tharisa Administration Services as the Mining Manager Innocent Guvakuva is the current AMMZ Vice President. He has over 14 years mining experience with different blue chip companies. Currently he is Head of Mining for ZCDC. Eddington T Vere is a council member responsible for PR, Membership and Events. He has 14 years mining experience. Currently he is Head of Mining at R Davies Page 16 | the mine manager volume 1

AMMZ leadership : Council Members Cloete Munjoma is a council Ray Chiridza, is a council member responsible for Finance member of the Association of and fund raising projects. He has Mine Managers Zimbabwe 21 years mining experience. He is responsible for finance and currently Mine Manager at funding. He has 20 years Zimplats , Ngwarati mine. experience in mining chemicals supply. Currently he is the Busi- ness Development Manager for Acol Chemicals. David Matyanga is the Mining Elton Gwatidzo is a council Affairs Manager for the Chamber member responsible for Special of Mines of Zimbabwe. He Projects. He is also a National previously worked for the Coordinator for Mine Rescue Ministry of Mines. He has over Zimbabwe. Elton has 14 years 25 years experience in the mining experience with Pan mining industry. African Mining, Buchwa Iron and Metallon. the mine manager volume 1 | Page 17

AMMZ leadership Abel Makura is a council Tapuwa Munenerwa is member responsible for Special a council member of the Projects. He has 12 years mining Association of Mine Managers experience in the platinum Zimbabwe responsible for the sector. He is currently the Technology, Innovation and Section Manager at Anglo Academic Institutions function. Unki Platinum Tapuwa has over 20 years mining experience Tapuwa is currently Mine Manager at Zimplats' Rukodzi mine. Gift Mapakame a council Akim Hove is the General member responsible for SHEQ Manager for Freda Rebecca and other affiliates. He has 10 Gold Mine with over 30 years in years mining experience in the the Mining industry gold sector. Currently he is the encompassing senior Mine Manager for Freda Rebecca operational, technical and production experience with Page 18 | the mine manager volume 1 various organisations.

AMMZ leadership Tawanda Mutiswa is a council member responsible for Technical visits. He has 14 years open pit and underground mining experience. He currently works as a Mine Manager for one of the Zimplats Ngezi underground mines. the mine manager volume 1 | Page 19

AMMZ leadership Advancing the Science and Practice of Mining since 1972 To over: + 50,000 Mining Industry Professionals +35,000 formally registered mining industry employees +300 Mine Managers Members Forum: What are the benefits of becoming a member of the AMMZ? AMine Manager has to be in influence to the school of mines, our continuous development and universities, polytechnics and colleges. subject oneself to peer and self-assessment. The Association of According to the Chamber of Mines, State of the Mine Managers plays a fundamental Mining Industry Report, the Zimbabwean Mining role in that it creates bench marks and sector has over 35,000 registered employees in the platform for idea cross-pollination. The Association is at the frontier of advanc- \"The Mining Industry has over 35 000 ing knowledge and can assist in the formally registered employees\" harnessing of technology and specialisation for local knowledge shar- formal sector. Estimates indicate that there are over ing. The Association of Mine Managers 50,000 direct and indirect jobs created by the local is a platform offers peer support and mining industry. The Mine Manager Magazine con- social interaction with other mining nected with members from across the country to industry professionals, business hear their thoughts on the importance of the AMMZ partners, product developers and and write to their leadership with any issues of con- academics. The AAMZ contributes in cern. many way is a hub for talent development spreading its positive 12019 State of the Mining Industry Report,Chamber of Mines of Zimbabwe, page 16 Page 20 | the mine manager volume 1

AMMZ leadership Students of Mining and Related Sciences “I would appreciate mentorship and career guidance after finishing my bachelors’ degree. Having a mentor is important” Joyful Gotore, final year Mining Engineering Student, Midlands State University, Zimbabwe ‘The AMMZ can help me in integrating what we learnt at school into practical and meaningful contribution to the mining industry’’ Liberty Shoko, final year Mining Engineering Student, Midlands State University, Zimbabwe I want to be part of an exciting and knowledge filled association, which answers to different aspects in the mining industries. Mining does not have to be technical and serious all the time, so I am looking forward to it. Rukudzo Muchoko, Mineral Law Student, Zimbabwe Institute of Legal Studies Mining Professionals ‘However, I would like to keep in touch with developments in the mining industry, through the Forum’ Benet Size, SHEQ Manager – Siguiri Project, Mota-Engil, based in Guinea We expect a balanced approach on mining information and follow-up on policies that would have been voted for by the Association Mine Manager based in Mhondoro, Zimbabwe Being part of an Association with like-minded professionals helps in position bench-marking, you know where you are lacking and you also assist a fellow in areas you have strengths. We are better together. Mine Manager based in Bulawayo, Zimbabwe the mine manager volume 1 | Page 21

AMMZ leadership Students of Mining and Related Sciences “I would appreciate mentorship and career guidance after finishing my bachelors’ degree. Having a mentor is important” Joyful Gotore, final year Mining Engineering Student, Midlands State University, Zimbabwe ‘The AMMZ can help me in integrating what we learnt at school into practical and meaningful contribution to the mining industry’’ Liberty Shoko, final year Mining Engineering Student, Midlands State University, Zimbabwe I want to be part of an exciting and knowledge filled association, which answers to different aspects in the mining industries. Mining does not have to be technical and serious all the time, so I am looking forward to it. Rukudzo Muchoko, Mineral Law Student, Zimbabwe Institute of Legal Studies SOCIATION OF MINE MANAGERS OF ZIMBABWE M BERSHIP BENEFITS 01 KNOWLEDGE Knowledge sharing Mining 02 ID Knowledge sharing in in RD & Innovation, regulations & Research, Development policy review Participation in mining & Innovation through technical visits, regulations review, policy journals. advisory, SHEQ Competitions Technical Visits, which will enhance a member’s the Mine Manager personal and professional Magazine, journals & technical papers. profile & exposure 04 SCIENCE & PRACTICE Training, Networking, 03 N WORKING Professional training and development & advertising, development through the exhibition, Events that provide structured Mining Industry Human employment opportunities. mentorship and networking with opportunities local and international colleagues, Capital Hub. Access to scholarships, experts and captains of industry. Discounts & perks with bursaries & internships selected service providers & sporting institutions Page 22 | the mine manager volume 1

AMMZ leadership the mine manager volume 1 | Page 23

The Economy, Mining Regulation & Policy Review Commodities Rally as Economy Rebounds Commodity Review Commodity prices This reflected the fact that strong domestic and foreign demand boomed in the for China’s factory goods fueled increases in global commodity period under prices. The strength in commodities, which have surged over the review, boosted past year, is only set to intensify the debate about price increases. by a snap back in global demand amidst the The cost of everything from copper to corn has surged, Covid-19 vaccine rollout. adding to inflationary pressures. Complicating the outlook is the The Bloomberg Commodity possibility that further jumps may lead policy makers to taper the Spot Index rose to its exceptional stimulus that has buoyed markets. The rally however highest level since 2012 as has since eased with other commodities seeing their big rallies many investors expected evaporate. more gains as the world pulled out of the pandemic. Table 1: Commodity Indices -USD In China, producer 31 December 2020-31May 2021 prices, also known as factory gate prices, Index Current Previous %Change Change increased 9.0% in May versus a year earlier, the Bloomberg 92.83 78.05 18.9% ▲ fastest gain since 2008. S&P GSCI 519.23 409.46 26.8% ▲ DowJones 892.34 731.59 22.0% ▲ Page 24 | the mine manager volume 1

INDEX The Economy, Mining Regulation & Policy Review Bloomberg Index January 2020 - May 2021 100 95 90 85 80 75 70 65 60 55 50 Gold prices recorded the Markets remain nervously poised for the outcome of rising inflation lowest gains in the precious and central banks' reactions to it. Gold’s increased sensitivity to sector with the yellow metal changes in interest rates means any shift in sentiment resulting in a managing a 0.7% gain from resumption of bond selloffs could be a short-term headwind. January to May. Prices however were on a roller According to the World Gold Council, gold demand for Q1 2021was coaster ride during the period 815.7t, nearly on a par with Q4 2020, but was down 23% compared in review as prices slumped with Q1 2020. Estimates for the first quarter indicated that mine in the first quarter reaching production increased by 4% y-o-y to 851.0t. The increase in US$1,687.50, the lowest level production was driven by fewer COVID-19 related interruptions since June 2020. The price compared to the same period in the prior year. According to the dip was driven by a firmer US dollar index and rising U.S. Precious Metals: Gold, Silver & PGMs real yields. The yellow metal bounced back in April to finish Table 2: Precious Metal Prices -USD/oz the its highest monthly closing 31 December 2020-31May 2021 level since January as rising inflation expectations and Metals Current Previous %Change Change questions around central bank tapering were front-and-centre Gold/oz 1,899.95 1,887.60 0.7% ▲ for investors. Silver/oz 27.63 27.27 1.3% ▲ Platinum/oz 9.9% ▲ Gold has found resistance Palladium/oz 1,185.00 1,078.00 19.0% ▲ at US$1,950/oz, signifying it Rhodium/oz 2,832.00 2,380.00 48.8% ▲ might need an added catalyst Iridium/oz 25,300.00 17,000.00 147.1% ▲ to move above that level. Ruthenium/oz 6,300.00 2,550.00 196.3% ▲ 800.00 270.00 the mine manager volume 1 | Page 25

The Economy, Mining Regulation & Policy Review Page 26 | the mine manager volume 1

Digging Deeper to Unlock Our Diamond Resource Potential The Zimbabwe Consolidated Diamond Company (Pvt) Ltd operations involve prospecting, exploration, mining, processing and recovery, cleaning, sorting and valuation of diamonds. ZCDC has positioned itself to be an integral player in the mining sector with investment in production capacity which is expected to unlock sustainable diamond value for Zimbabwe. www.zcdco.com ZC Diamond Company zcdiamondcompany @ZCDC_official the mine manager volume 1 | Page 27

The Economy, Mining Regulation & Policy Review Gold, Platinum, Palladium Prices January 2020 - May 2021 USD/OZ 3,500 PD 2,832 3,000 GD 1,900 2,500 2,000 PT 1,185 1,500 1,000 500 - GD PT PD Chamber of Mines of Zimbabwe, gold output production to achieve the 100 ton per year for Q1 compared to Q12020 declined by 30%. target. Small scale miners currently contribute over 50% of total gold output. Some operations Platinum for the miners have also not been able to catch-up on gold output lost due to the Platinum prices increased by 9.9% in the pandemic. Despite the subdued first quarter period in review, buoyed by strong investment performance, production is anticipated demand, a rebound in consumer and to rebound in the second half to attain an industrial demand, and supply disruptions. annual target of 30tons for the year, a 43.7% The metal reached a six-year high trading at increase from prior year. $1,325 per oz in February and now appears to have stabilised around $1,200 per oz Measures adopted by Government have following steady growth from a March 2020 also offered an opportunity for revival of low trading just above $600 per oz. Jewellery production and growth for the sector. These demand bounced back, while demand from include the introduction of the incremental the auto sector was bolstered by a strong export incentive scheme, improved recovery in auto manufacturing. According turnaround in payments from Fidelity to the World Platinum Investment Council, Printers and the ongoing processes to come the implementation of tighter emissions up with a gold sector policy framework. A standards in China and Europe have also sliding scale royalty rate for gold was also boosted platinum’s use in autocatalytic introduced which takes into account price converters. fluctuations, 5% for prices above US$1,200 per ounce and 3% for prices below US$1,200. Platinum output according to the Chamber The commitment from Government and of Mines of Zimbabwe at 3.4tons for the the private sector to address challenges first quarter was 5% lower compared to Q1 affecting the sector will result in improved 2020. Zimplats reported lower volumes Page 28 | the mine manager volume 1

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The Economy, Mining Regulation & Policy Review for the first quarter of the year as supply squeeze created extreme mining and processing efficiencies volatility in the market, providing were impacted by the high wall good returns for PGM Miners. subsidence at the Ngwarati This was driven by disruptions Mine box cut. As a result, tonnes to primary rhodium shipments in mined, milled grade and process 2020, following outages at Anglo recoveries were all negatively American Platinum’s converter affected during the quarter. plant (ACP), along with a rebound Ngwarati Mine is expected to in demand, in line with a recovery return to full production by the end in world car production from Covid of FY2021. Output for the year is disruption. The robust demand projected to increase by 6.6% from has been largely tied to increasing prior year to reach 16 tons. nitrogen oxide (NOx) legislation globally, particularly in China. The Palladium & Rhodium Chinese auto market is the largest gasoline market in the world, with Palladium pushed toward a China's light vehicle sales being record high in the first quarter on about 90% of gasoline engines. expectations that supply shortfalls The metal gained 48.8% in the and rebounding demand from period in review and prices have automakers will keep the market risen by more than 300% from its in deficit. The metal recorded an $5,500 per oz low on March 24, all-time price high in early 2021, 2020. reaching $3,000 per oz in February. Stricter environmental standards According to Johnson Matthey, fuelled automakers demand for the 2017−2021 period has the commodity used in vehicle seen significant changes in pollution-control devices as well emissions legislation in several as disruptions at Russian mines major markets, including the run by MMC Norilsk Nickel PJSC implementation of the first phase also exacerbated supply concerns. of China 6 legislation, the gradual According to the Chamber of roll-out of Tier 3 Federal US Mines, output for Q1 2021 was regulations, and the introduction 4% lower compared to Q1 2020. and then tightening of Real Driving Projected output for the year is Emissions (RDE) standards in the expected to increase by 0.9% from EU (under Euro 6d-TEMP and Euro prior year, reaching a target of 6d legislation). 13tons. The rhodium price surged to near While recent price gyrations have $30,000 highs during the first been exacerbated by supply quarter of the year amid supply issues, the extraordinary rally tightness, an existing deficit, in the rhodium price from a low stricter emissions regulation point of $625 in August 2016 has standards implemented worldwide primarily been driven by growth and strong demand from China in autocatalyst consumption, and Europe. Weekly price swings resulting in three consecutive exceeded $3,000, as a severe years of market deficit. Page 30 | the mine manager volume 1

The Economy, Mining Regulation & Policy Review Price gains have typically been and rapid recovery of nickel use in associated with periods of batteries for EVs. Prices were also tightening emissions legislation supported by production shortages and steeply rising automotive in the Philippines, as the rainy demand, but the highest peaks season hampered ore exports to in the market have been linked feed nickel pig iron (NPI) facilities to disruption to supplies from in China, and by outages at Russia’s South Africa (where the vast Nornickel, the world’s second majority of world rhodium largest nickel producer. The metal production is concentrated). For set new year highs trading close to example, the 2008 price surge US$20,000 per ton in the month of followed electricity outages February. Prices retraced markedly in that temporarily halted mining March following an announcement in South Africa, while recent by Tsingshan—the world’s largest all-time highs have occurred in nickel producer— that it would the wake of processing plant convert of some its NPI to nickel outages and Covid-related mining matte to produce battery-grade interruptions. Rhodium output nickel sulphate for EVs. for Zimbabwe’s first quarter according to the Chamber of According to the World Bank, Mines of Zimbabwe was 4% lower nickel prices are projected to compared to Q1 2020. average almost 20 percent higher in 2021, before easing in 2022. A Ruthenium and iridium global recovery in manufacturing and trade, strong infrastructure The ‘minor’ PGMs; ruthenium investment, and rapidly growing and iridium, saw steep price electric vehicle sales should create gains in the period under review, a buoyant environment for nickel. reflecting strong industrial buying Nickel output for Zimbabwe’s first and rising investor awareness quarter according to the Chamber of of the potential for PGMs’ use in Mines of Zimbabwe was 17% lower hydrogen applications. Ruthenium compared to Q1 2020. Output for the led in gains for the group rising year is projected to increase by 4.1% by 196.3%, followed by iridium from prior year to reach 17 tons. which gained 147.1%. According to the Chamber of Mines of Copper Zimbabwe, iridium output for Q1 2021 was 25% lower compared to Bullish sentiment in the copper Q1 2020 whilst ruthenium output market dominated price rose sharply by 39%, bucking the performance in the period in review downward trend. as surge in demand propelled copper prices higher, jumping by 31.2% Nickel percent—a level not seen in almost a decade. The surge in demand was Nickel prices rose by 7% in the led by China with strong investment period in review driven largely in infrastructure and construction, by strong demand from the augmented by an extraordinary stainless-steel sector in China global uptake in consumer goods. the mine manager volume 1 | Page 31

The Economy, Mining Regulation & Policy Review Rhodium Prices January 2015 - May 2021 35,000 30,000 29,800 25,000 20,000 25,300 USD/OZ 15,000 10,000 5,000 - 02-Jan-16 02-Jan-17 02-Jan-18 02-Jan-19 02-Jan-20 02-Jan-21 02-Jan-15 Governments of countries such as the US generation. and China availed heavy stimulus packages with the intent of boosting economic Falling inventories and threats of strikes in recovery from the coronavirus pandemic Chile and Peru elevated mine production whilst increased infrastructure spending and risks posing supply disruption concerns growing focus on the green economy also further supporting copper price gains. boosted copper price. Copper demand is set According to the World Bank, copper prices to gain from the energy transition, notably for are projected to average 38 percent higher electric vehicles (EVs) and renewable power in 2021 compared to last year. However, First Quater Mineral Performance: Table 3: Q1 2021 & Q1 2020 Statistics Gold (kgs) Q1 2021 Q1 2020 % change Platinum (kgs) Palladium (kgs) 4,311 6,152 -30% Rhodium (kgs) 3,369 3,544 -5% Iridium (kgs) 2,849 2,957 -4% Ruthenium (kgs) 305 317 -4% Diamonds (cts) 162 216 -25% Chrome (MT) 286 205 39% Nickel (MT) 702,639 611,333 15% Copper (MT) 300,926 353,668 -15% Cobalt (MT) 3,284 3,936 -17% Coal (MT) 1,900 2,119 -10% HCFC (MT) 322 -83% Lithium (MT) 53 462,140 46% 672,862 75,189 -1% 74,442 10,063 -41% 5,911 Page 32 | the mine manager volume 1

The Economy, Mining Regulation & Policy Review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tOhHeSmKRinQeHmanagervolume1 | Page 33

The Economy, Mining Regulation & Policy Review Base Metals : Table 4: Base Metal Prices – USD 31 December 2020-31May 2021 Metals Current Previous %Change Change Nickel/ton 17,811.00 16,540.00 7.7% ▲ Copper/ton 10,159.50 7,741.50 31.2% ▲ Cobalt/ton 43,615.00 32,000.00 36.3% ▲ Aluminium/ton 2,404.50 1,978.00 21.6% ▲ Lead/ton 2,208.00 1,972.00 12.0% ▲ Tin/ton 33,456.00 20,540.00 62.9% ▲ Zinc /ton 3,039.50 2,723.50 11.6% ▲ they are expected to drop 12 percent in 2022 difficult to invest in new projects. as new supplies materialize. According to the Chamber of Mines, output for Q1 2021 increased by 46% compared to Q1 Seaborne coal prices were bullish in 2020. Projected output for the year is expected the period in review, largely rising from to increase by 9.1% from prior year, to reach a pandemic lows as global energy demand target of 3 million tons. resumed and economies strengthened. The price spikes were underpinned by tight According to S & P Global, despite environmental availability of the energy material. This pressures, coal remains the world's number one was amidst an existential crisis for coal, fuel for power generation, partly because it's with climate policies making it increasingly generally more competitive than gas. Even with Energy Materials: Table 5: Energy Material Prices - USD Metals Current Previous %Change Change Thermal Coal/ton 85.75 69.00 24.3% ▲ Coking Coal/ton cfr China 226.83 186.00 22.0% ▲ Oil/barrel (Opec Basket) 68.20 50.24 35.7% ▲ the rally in coal pricing this still bears out, as challenges in 2021 amid upstream tightness increased gas demand has supported higher and robust downstream demand pushing coal pricing, particularly in Asia and Europe. prices higher in the period in review. Lockdown measures around the world amid the Covid-19 Lithium pandemic also exacerbated logistics disruptions, resulting in delays in shipments of lithium Lithium prices experienced a significant rally, globally. as post-covid demand for lithium chemicals recovered alongside the automotive industry. Lithium supply encountered tremendous Page 34 | the mine manager volume 1

The Economy, Mining Regulation & Policy Review Source:African Mining Brief Underground development at Kakula copper mine Battery Materials: Table 6: Battery Material Prices - USD Metals Weekly Median Weekly Median Weekly Change Price (Assessed Price (Assessed %Change ▲ 28 May 2021) 31 December 92.6% ▲ 2021) ▲ Lithium Carbonate /kg 12.00-14.00 71.9% ▲ (CIF China, Japan, Korea) 6.00-7.50 13.00-14.50 50.0% Lithium Carbonate/kg 7.50-8.50 78.9% (CIF Europe and US) 14.50-15.50 640-720 9.00-11.00 Lithium Hydroxide 370-390 Spodumene (5-6% Li2O) /ton CIF China the mine manager volume 1 | Page 35

The Economy, Mining Regulation & Policy Review According to Fitch Solutions broad lithium Zimbabwe, output for Q1 2021 was 41% prices are forecast to trend higher in 2021 lower compared to Q1 2020. Output is and 2022, as accelerating demand for projected to increase due to new projects lithium-ion batteries (Li-ion) and a tight developments that have been made in upstream supply keeps prices elevated. the sector. Increasing demand for lithium chemicals for use in electric vehicle (EV) batteries and The ongoing acceleration in the electric energy storage systems will support elevated vehicle and battery story, the pick-up in prices in the short term, but Fitch does not prices initiated in 2020 and heightened expect to see any large jumps that would government support for strategic push prices up to the highs observed in 2016 materials, interest in the upstream and 2017. lithium supply is rising strongly this Demand for lithium is expected to reach year. Increased exploration, merger and 391,000 tonnes of lithium carbonate acquisition activity is anticipated to equivalent (LCE) in 2021, compared with pick up strongly in the sector in coming 309,000 tonnes and 294,000 tonnes in years as stronger fundamentals for 2020 and 2019 respectively, according to the lithium sector will lead to improved Fastmarkets’ battery raw materials research financing suggesting that lithium project team. According to the Chamber of Mines of development will be easier in the coming years. ■TMMM Association of Mine Managers Zimbabwe Advancing the Science & Practice of Mining in Zimbabwe since 1972 Page 36 | the mine manager volume 1

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The Economy, Mining Regulation & Policy Review State of the Mining Industry Report Zim Mining Sector on Rebound Despite COVID-19 weighing heavily on resurgence. The industry that suffered a the mining industry in 2020 moving negative growth in Q1 has strong prospects of into the Q1 2021 the mining industry recovery and expecting a growth of 11% by the stands up on the ground resiliently shaking end of 2021 as reported the outgoing president off the negative effects of the global disaster Mrs Elizabeth Nerwande. which affected global value chains and As mentioned by the Minister of impacted demand for commodities. The Mines, Mr Winston Chitando, mining firms industry is on a strong rebound on the back Zimplats, Unki and Mimosa are expanding of firming commodity prices and demand their operations and currently have upcoming Page 38 | the mine manager volume 1

The Economy, Mining Regulation & Policy Review projects which are now at various Diamond is expected to contribute to stages of development. The Great 1 billion dollars of the 12$US billion Dyke Investments, a consortium of vision of the ministry by 2023 Zimbabwean and Russian investors, opened two box cuts at its site in the 12 billion U.S. dollar vison by 2023. The Minister Darwendale, near Harare, and are also mentioned the decline in Chrome production expected to have started operations by despite ferrochrome producing firms increasing 2023. Bravura, a Nigerian owned mine, and maintaining production. The Chinese-owned completed its drilling and is expected Afrochine Smelting was said to have installed two to open its first box cut by the middle more smelters at their plant in Selous and one of the of the year. Karo Resources, partly largest ferrochrome producers, Zimasco maintained owned by South Africa's Tharisa its production capacity. Holdings, is also currently completing The Zimbabwe Consolidated Diamond its exploration. Company (ZCDC) projected a production of 3 million In the coal and hydrocarbons carats this year and also the Russian-owned Alrosa sector, the minister highlighted that is developing its sites in Zimbabwe. Diamond is there were thermal power projects at expected to contribute to 3 billion dollars of the various stages of development and 12$US billion vision of the ministry by 2023. In the the sector is expected to contribute more than 1 billion U.S. dollars to the mine manager volume 1 | Page 39

The Economy, Mining Regulation & Policy Review In the gold mining sector, the ministries Gold is expected to contribute 4 of mines and finance and the central billion to meet the 12 billion U.S. bank are said to be working on policy dollar target measures to plug leakages and increase deliveries to Fidelity Printers and It is sorely on the basis of these growth projections Refiners, the country's sole gold buyer. in the mining sector that economic growth and the Gold is expected to contribute 4 billion accomplishment of the nations’ agenda of creating at to meet the 12 billion U.S. dollar target. least 150 000 jobs in 2021 is anticipated. ■TMMM In conclusion, in spite of the challenges facing the economy, the mining industry is anticipated to register better performance in 2021 as opposed to the 2020 performance where most minerals registered a negative growth. Page 40 | the mine manager volume 1

The Economy, Mining Regulation & Policy Review the mine manager volume 1 | Page 41

The Economy, Mining Regulation & Policy Review Why the Mining Industry is important to the Zimbabwean Economy Unpacking the role of Mining The mining industry is a broad segment of mineral exports contribute about 60% of the Zimbabwean economy and it plays the country's export, and in the mining a very crucial role in the development of sector contributing around 20% of national the country in general. The industry is highly GDP and in terms of fiscals, the sector diversified with over 40 minerals being mined in Zimbabwe. The industry has of late become The mineral exports the nation’s largest foreign currency earner with nickel, platinum group of metals and gold leading contribute about 60% in fetching the country the much needed forex. The industry plays a huge role in international of the country's export. trade. Zimbabwe has the largest lithium deposits in Africa and considering the importance of contributes about 11% of the revenue that lithium to the energy-battery industry, there the government receives. is a very high global demand which might The industry affects the interests of many see Zimbabwe becoming one of the largest actors, including the government (which exporters of this mineral in the entire world. The plays a key role as a regulator in enabling Page 42 | the mine manager volume 1

The Economy, Mining Regulation & Policy Review extractive companies to maximize industry on the economy has grown significantly with the parallel their contribution to the economy), development of infrastructure and strong links with other industries investors, contractors and suppliers, through the channels of national supply of goods and services. service companies, indigenous In Zimbabwe there are a lot of operating mines and more mines are peoples and their organizations, Zimbabwe set to be opened with the likes of Kamativi mine which is set to reopen settlements affected by as lithium multi-element ore body mine thereby creating employment development, labor unions, research has the for a lot of jobless youths in the organizations and consumers. country. largest Zimbabwe is enriched in Currently, factors such as abundance with platinum, gold, diamonds, asbestos, nickel, coal and population growth, urbanization, lithium chrome, iron and other diverse kinds social and economic development, of minerals and these minerals and metals provide possible prospects and even the demand for a green deposits and low-carbon economy are driving in Africa the growing demand for minerals and metals. However, meeting this demand and achieving the desired benefits requires costs on the part of the population and the environment. The impact of the mining Source:NewzWire, Old Kamativi Mine being reinvented the mine manager volume 1 | Page 43

The Economy, Mining Regulation & Policy Review for the economy to grow and promote The Minister of finance and economic economic development. development, Prof Mthuli Ncube, The At the 2021 annual mining conference Minister of Finance & Economic Development held in Victoria falls the government reviewed at the annual mining conference through the Ministry of Mines and Mining that the mining industry is currently the Development reviewed their vision to key to achieving the NDS1 and vision 2030 earn the country US$12 Billion annually considering the sector is the largest foreign by 2023 and this could see the country’s currency earner for the economy economy transform to better heights. This vision is very attainable considering In conclusion the mining sector plays a very the vast potential of the mineral critical role in the growth of the economy resources to contribute to a sustainable and the development of the country at large economic growth and development which as it brings foreign currency, contributes can lead to massive poverty reduction to government revenue, provides for in the country and create employment infrastructure development and also serves across the productive sectors of the as a source of employment for about half economy. While mining has constantly a million artisanal gold small-scale miners been a major source of foreign currency (ASGM) spread across the nation. ■TMMM generation through huge exports Page 44 | the mine manager volume 1

Nyaradzo GonTehe EDconiogmy,iMtinainglRegulation & Policy Review Sahwi She's available to assist on WhatsApp 24/7, just like on Facebook with policy information, Your New Chatbot Assistant contact details and payment procedures just to mention a few. It is our proudest moment to introduce your new virtual Contact Sahwi through the number assistant, “Sahwi” on the +263712992892 or scan the QR code and start Nyaradzo Group Facebook page. chatting with her today. Sahwi is there to provide additional convenience to our Nyaradzo Self Service Portal clients and assist them. This customer service Chatbot assists with We are also excited to inform you that we have the following information: launched our self-service portal on the Nyaradzo Ÿ Nyaradzo Life Assurance products Group website that will allow you to access your policy information at your convenience. including Diaspora packages The self-service portal allows you to do the Ÿ Accessing your policy details following: Ÿ Applying for a policy Ÿ Requirements to lodge a claim Ÿ View policy details Ÿ Payment options Ÿ Edit contact details Ÿ Our branch network Ÿ View payment history and balance due Ÿ Our contact details Ÿ Make payments using mobile money To start chatting with Sahwi, simply click platforms the SEND MESSAGE icon on the Nyaradzo Ÿ Access a catalogue of Nyaradzo Life Group Facebook Page. Assurance Company products https://www.facebook.com/nyaradzogroup/ Ÿ Get a quote on the different policy types Sahwi On Whatsapp and apply online To access the portal, click the “Login” button on Scan the QR Code to chat the top right corner of the Nyaradzo Group with Sahwi on Whatsapp website or use the following URL: https://selfservice.nyaradzo.co.zw/ Sahwi is now on WhatsApp as well and she is here to ensure that you get the very best out of your every interaction with us!! Find the latest news on our website www.nyaradzo.co.zw or contact us on our Nyaradzo Group Facebook Page. the mine manager volume 1 | Page 45

The Economy, Mining Regulation & Policy Review What Risks should a Zimbabwean Miner look out for? Economic Parameters & factors that affect Zimbabwean Mining Companies The mining industry is strategically \"Income tax on mining important for the economic well-being operations is levied at 15% for of Zimbabwe but the factors affecting Special Mining Lease Holders the development of the Zimbabwean and 25% for other mining title mining industry are becoming more extreme, holders.\" prompting companies in the sector to look at a broader set of scenarios than ever before. Government Policies The macroeconomic environment in which mining enterprises operate is determined One of the main factors of the by both internal and external international macroeconomic environment affecting factors. A mining company operates in a the activities of mining companies is the macro-economic environment that has a direct government. Although the government does impact on its performance. not interfere in the operational activities of Page 46 | the mine manager volume 1

The Economy, Mining Regulation & Policy Review enterprises in a market economy, it does the government is responsible for such establish regulatory rules that each and areas of activity as defense, education, every enterprise must comply with. This is social security, and health. The government primarily about tax legislation, the level of receives funds for them through taxation and various types of taxes and payments, as well savings of citizens. as the Law on the Insolvency (Bankruptcy) Therefore, the government should of Enterprises. For instance in Zimbabwe, establish a tax system that would Income Tax is charged in accordance stimulate the development of enterprises with the Income Tax Act (Chapter 23:06), in the country and ensure the effective Section 15(2)f which states that Income tax development of those areas for which it is on mining operations is levied at 15% for responsible. In addition, the government Special Mining Lease Holders and 25% for determines the interest rates that make the other mining title savings deposits of citizens attractive and holders. stimulate the investment policy. Currently Naturally, the lower the level of taxes the mining sector contributes about 20% to that mining companies are required to pay the GDP of Zimbabwe, which could be higher to the state, the more efficiently they work, if they were more favorable tax rates. which in turn improves the economic Last year 2020 extending to the first situation in the country. On the other hand, quarter of 2021, the mining sector the mine manager volume 1 | Page 47

The Economy, Mining Regulation & Policy Review suffered a negative growth and this was government spending through privatization. mainly due to the COVID-19 strains and In the process of privatization, individual lockdown measures, then we also look at enterprises or industries that were under the government spending. If the government's control of the government or in the public expenditures significantly exceed the income sector and required subsidies are transferred it receives, then this is a decisive factor in to the private sector, that is, to the ownership the occurrence of inflation in the country, i.e., of people who must either establish their price growth. effective operation or close production. They distinguish between the overall This method in a number of countries level of inflation in the country and inflation has reduced government spending on in various business sectors. As a rule, these maintaining non-profit enterprises and figures differ from each other. If the inflation increased the efficiency of some of them by in the markets of equipment, raw materials, transferring them to the private sector. and labor resources necessary for the production of products exceeds the growth Covid-19 Pandemic Affected in the prices of these products, this worsens the economic situation in enterprises, which The other factor would be the current leads to a drop in production and a continued global pandemic, COVID-19. The virus- increase in inflation in the country. The induced global economic downturn, had Zimbabwean government spends about a negative effect and still impacts the 15% of the country’s GDP which is slightly Zimbabwean mining industry. The mining below the world average. In recent years, industry experienced an avalanche of bearish some countries have attempted to reduce sentiments in its commodity markets. Diamond, coal and other minerals registered Page 48 | the mine manager volume 1

The Economy, Mining Regulation & Policy Review a negative growth and a lower production to the exchange rate pass-through effects on in Q1. most of the commodities where gold, domestic prices via non-discretionary imports nickel, PGMs & Chrome where the most such as fuel. affected. This system has caused multiple prices Poor Governance and Ethical Standards of inputs and those paid using RTGS almost also affect the industry and this questions doubled those paid in cash USD but currently the international integrity of the industry. the with the recently gazetted S1 127 2021, Zimbabwe lost large amounts of foreign there is hope for stable prices. currency to illicit trade. There have been Commodities might be incidents in which gold was being smuggled comprehensively moving once again into into neighboring South Africa and nearby worldwide market balance and surprisingly Dubai and billions of mineral revenue surplus, yet the mining industry's difficulties was lost. At one point the Minister of are a long way from being over. In a universe Home Affairs, Hon. Kazembe Kazembe of more profound mines, rising energy revealed that the country was losing about expenses, social and geopolitical risks, poor $100m worth of gold every month through infrastructure and asset patriotism, mining international smuggling rings and the companies remain under extraordinary strain country’s porous borders. to control costs, increase efficiency and improve security execution. Commodity Market Risk However, the government through the Reserve There is also the issue of Commodity market bank of Zimbabwe has put in place some imbalances, strong commodity demand fiscal incentives and export incentives to pushes up prices which, in turn, impels support and grow the industry for example mining companies to ramp up production. among many other incentives, the corporate When prices drop or plummet, supplies income tax was reduced from 25% to 24% build up and marginal projects become and the royalties in the diamond sector were considerably less attractive. reduced to 10% from the previous 15%. Several other factors affect the industry Although there are no easy solutions, at least such as water supply, high cost of electricity, some action is being taken to make the mine inadequate capital to undertake new projects, future better and create an effective operating and elevated costs of inputs due to the environment for industry. operation of multiple exchange rate system ■TMMM (RTGS, bond notes, USD). Foreign Exchange rate Regime Like other sectors, mining producers are forced to pay more than the fair value of inputs due to the multiple exchange rate system (RTGS, bond notes, USD) which affects the prices of imported inputs and due the mine manager volume 1 | Page 49

The Economy, Mining Regulation & Policy Review Zim Economy expected togrow by 6% in 2021 as Third Wave Ravages on.. \"GDP \"plans to expected introduce to grow a new by about ZW$50 6%\" note\" The whole world is capitalizing Vision 2030 seeks to fundamentally effectively on recovery and transform Zimbabwe to an upper building strategic resilience to middle income economy,with a per overcome the challenges posed capita Gross National Income the global pandemic and currently of over US$5000 in real terms. the roll out of vaccines globally has improved world economic recovery good agricultural season but the pandemic is likely prospects. Downside risks to recovery to cloud the pace of the recovery considering the include delays in procurement and lockdown has been reintroduced to contain the rollout of vaccines and 3rd waves of rising corona virus cases. Covid-19. Locally, vaccination has been Currently the country is working towards the ramped although it is likely to take vision 2030, articulated by His Excellency, the longer to achieve herd immunity. President, Cde. E.D. Mnangagwa, which reflects Output in Zimbabwe is expected to expand in 2021 on the back of a Page 50 | the mine manager volume 1