VOLUME 8: ISSUE 2 MZN 250/US$6.50 APRIL / MAY / JUNE 2020 MOZAMBIQUE MINING JOURNAL | April - June 2020 Volume 6 / Issue 16 US $4.30 January - March 2019 Coal exports continue despite COVID-19 Auctions suspension Kenmare suspends COVID-19 impact on the affects Gemfields 7 production guidance mining sector 13 10 1 www.mozambiqueminingjournal.com Poster | nova base|210x297mm.pdf 1 3/16/20 10:44 PM MOZAMBIQUE MINING JOURNAL | April - June 2020 C M Y CM MY CY CMY K www.mozambiqueminingjournal.com 2 MOZAMBIQUE MINING JOURNAL | April - June 2020 Contents Editorial Comment Thumbs up for permitting cargo movements : ................. 4 News Brief : ................. 5 Cover Story Coal exports continue despite COVID-19 : ................. 6 General News Auctions suspension affects Gemfields : ................. 7 Balama remains positive despite COVID-19 : ................. 8 Fura acquire more ruby licences : ................. 9 Geological survey underway in Tete province : ................. 9 Kenmare suspends production guidance : ................. 10 Savannah Resources eyes Inhambane minerals sands : ................. 10 African News Advanced metal plug and socket outlet range launched : ................. 12 COVID-19 impact on the mining sector : ................. 13 New Industry Trends & Technology Kobold’s DWF makes density measurement easy : ................. 14 New app makes job easier for blasters : ................. 15 Publisher ADDRESS MTI Moçambique Limitada Maputo office: Editor 628 Julius Nyerere Avenue Andrew Maramwidze Maputo, Mazambique [email protected] P.O Box 3236, Maputo Tel: +258 84 119 4017 / +258 84 445 5339 Editorial Contributors: Fax: +258 82 423 8542 More Love Mafu Dakito Bias Tete office: Mario Deus Talhao 4109 Casimo Muhimua Matundo, Tete Tel: +258 84 119 4017 / +258 212 230 941 Fax: +258 212 227 698 ADVERTISING SALES [email protected] Domingos Langa [email protected] Brito Mamba www:mozambiqueminingjournal.com Sergio Saidi Gersholm Twazi 3 www.mozambiqueminingjournal.com MOZAMBIQUE MINING JOURNAL | April - June 2020 Editorial Comment Thumbs up for permitting cargo movements and a lot of uncertainties are prevailing the Covid-19 has forced the government with potential for multiple effects. to cut back its targets for this year and the projections for the mining sector are Faced with this unforeseen monster, not pegged at 1.5 percent growth. only ravaging the health system, leaders should be applauded for allowing cargo The forecast already indicates why more movements. commitment should be done after fighting the pandemic. The decision to permit cargo movement will also see a surge in other mining na- Remember to share with us your com- tions’ products in-transit, now using Beira ments, letter and opinions on drew- port to reach various destinations over- [email protected] seas. We hope all these opportunities realised during this lockdown, can be Enjoy the read! further pursued and continue to generate the much needed income for government and other facilities along the routes to Beira port. However, coal industry is only a portion of the mining industry; other pockets includ- Andrew Maramwidze (Editor) ing other sectors also need to participate, therefore the COVID-19 pandemic calls for a strong blueprint to protect the nation s the world is reeling on the from both the infection and potential neg- effects of the COVID-19, the ative challenges. A local economy is not spared, though a glitter of hope is there for the Things will not be the same after the 30 mining industry. days, so many proactive actions by both the mining sector and government will With movements of people having been need to be taken to sustain the industry brought to a halt, via a 30-day national and not tolerate its sinking. state of emergency in response to the corona-virus outbreak, coal mining oper- Yes, sinking! If the challenges that will ations and exports should celebrate the face the mining industry at the end of exemption. fighting the pandemic are not robust, we risk seeing our promising mining indus- Thumps to the authorities for seeing it fit try’s potential. to allow movements of cargo to continue, mostly to facilitate medical equipments Prime Minister Carlos Agostinho do Ro- and aid into the country. Other countries sario has already announced that the have brought everything to a standstill global economic crisis precipitated by www.mozambiqueminingjournal.com 4 MOZAMBIQUE MINING JOURNAL | April - June 2020 News Briefs Benga power plant nears Logistics Corridor, in the north. Volumes of copper and cobalt ex- completion port volumes recently increased Illegal Miners Die in Cabo Del- at the Beira port, after South Kibo Energy the developers gado Africa announced a lockdown. of Benga Power Plant Proj- ect (BPPP) remains optimis- Four illegal miners recently Authorities in South Africa ini- tic on clinching a power deal. died in a series of collapses of tially said ports would only pro- unsafe shafts, dug in the con- cess essential goods during a “We continue to have encourag- cession area worked by Mon- three-week nationwide lock- ing discussions with Electricidade tepuez Ruby Mining (MRM) down, which was later ex- de Moçambique (‘EDM’) regard- in Montepuez, in the north- tended by another two weeks. ing a Power Purchase Agree- ern province of Cabo Delgado. ment,” said Louis Coetzee, Kibo South Africa’s lockdown ben- Energy Chief Executive Officer. MRM says was informed about efited ports like Dar, Beira and the incidents by the Ntoro com- Walvis Bay, and it is hurting Ma- With a definitive feasibili- munity, the first collapse of a puto port, which depends on ty study based on a 150 MW shaft within the MRM conces- South African mine production. coal-fired power plant already sion zone, in the area known as in place, the advanced proj- ‘Central’, where one miner died. Maputo exported around half of ect is reaching an exciting South Africa’s total chrome pro- stage, according to Coetzee. Another collapse was in a duction last year, according to Os- place known as Krongolo Sim- orio Lucas, chief executive of the “Not only does it have signif- ba, three other miners died. Maputo Port Development Co. icant expansion potential, in- cluding the establishment of a JSPL Mozambique Minerais to pure renewable energy project, start mining Zambia’s tax deferment inspire but the off-take opportunities Gemfields’ performance are escalating,” said Coetzee. JSPL Mozambique Minerais in- tends to increase coal produc- Suspension of a 15 percent Brazilian workers evacuated tion from the current 3.0 million export duty in Zambia has to 4.5 million tonnes, this year. spurred performance of Gem- Vale Moçambique has sent home Rajendra Tiwari, the director-gen- fields’ subsidiaries in 2019. over 200 Brazilian workers, as eral of the company recently fears of the COVID-19 spread. said work to expand the coal Montepuez, the world’s richest processing unit has been under- known ruby deposit, generated “Vale is acting in line with health way since the first half of 2019. revenue of almost $122 million and safety protocols set by in 2019 versus $127.1 million the the authorities and agencies Tiwari said the company previous year while Kagem em- of each of the countries where plans to raise production lev- erald mine in Zambia, recorded it operates and is watching as els to achieve annual pro- $79 million in revenue last year, the situation develops,” state- duction of 5.0 million tonnes. up from $60.3 million in 2018. ment from the company said. The major constraint on the Despite Montepuez facing in- The group hired an aircraft, a company in terms of operat- cursions in the past, Gem- Boeing 787 Dreamliner, from the ing costs is due to the distance fields last year chose to pay Ethiopian carrie,as scheduled from the mine to the railroad £5.8 million, in a “no admission flights had been suspended. terminal in the city of Moatize, of liability” move that settled approximately 150 kilometres. a claim of human rights abus- The company operates the es brought against it by locals. Moatize coal mine, in the central SA lockdown benefit Beira port province of Tete, and the Nacala 5 www.mozambiqueminingjournal.com MOZAMBIQUE MINING JOURNAL | April - June 2020 Cover Story Coal exports continue despite COVID-19 he 30-day national state of company continues to produce coal, as od of 2018. Thermal coal accounted for emergency in response to the Beira port remains open. around 40pc of the coal loaded at the port T coronavirus outbreak has not in the first half of 2019. dented coal mining operations and ex- However, authorities have warned that ports. The presidential decree limiting stricter measures will only be imposed The bulk of the around 400,000t of ther- the cross-border movement of people to when there is an exponential increase in mal coal exports was shipped to India, control the spread of the coronavirus pan- infections. with the exception of two cargoes going demic has exempted cargo movement. to Senegal. On the other hand Prime Minister Carlos President Filipe Nyusi beginning of April Agostinho do Rosario announced that the Thermal coal cargoes leaving Beira typi- announced partial border closure except global economic crisis precipitated by cally have a calorific value of NAR 5,500 for “matters of the state, humanitarian or the Covid-19 has forced the government kcal/kg or NAR 5,800 kcal/kg, and are of- health support and cargo transport”, al- to cut back its targets for this year and ten procured by Indian and Middle East- lowing many sectors, including mining, the projections for the mining sector are ern cement manufacturers. shipping and port operations, to contin- pegged at 1.5 percent growth. ue as normal, albeit with some additional South African exports to Mozambique fell health and safety measures in place. Statistics indicate Beira loaded 1mn t of to 912,200t in the first half of 2019 from One of the leading coal miners, Indi- thermal and coking coal in January-June 1.5mn t in the same period of 2018.