MINERALS MARKETING CORPORATION OF ZIMBABWE SUBMISSION TO THE ZIMBABWE CHINA BILATERAL COMMISSION APRIL 2009

Zimbabwe is endowed with a wide range of minerals, which are being exploited today. Government recognises the importance of mining to the economy and has identified it as a strategic priority sector. The mining sector employs an average of 55 000 people, contributes about 40% to net foreign currency earnings and about 4% to the country’s GDP. Zimbabwe welcomes foreign investment and offers immense opportunities in the mining sector.

Opportunities in mining and mineral beneficiation in Zimbabwe are abound. Zimbabwe has a comparative advantage of having deposits of various types of minerals such as nickel, gold chrome, asbestos, iron, dolomite, and slates. In addition there are deposits of precious stones such as aquamarine, citrine and emerald. The Corporation through its investment arm MMS has the following ventures on offer:

1. Mining Projects

  • Granite Extraction
  • Chrome Mining

2. Mineral Processing

  • Granite Beneficiation
  • Gold Ore Processing
  • Chrome Smelting

3. Mineral and Metal Sales

  • Ferro-chrome Sales
  • Precious Stones, Industrial Minerals and other metals.

1. MINING PROJECTS

Granite Extraction

Granite is one of the three main types of dimension stone. The granite from Zimbabwe is mainly in four main colours, which are black, green, grey and white, with the black granite being the prime one. Production of black granite started in the early 1970’s in Zimbabwe though worldwide it started in the 18th century. Production of black granite has increased with annual export levels to date hovering around 200 000 Metric tones per annum from 17 quarries. Zimbabwe’s ‘Black Granite’ is a dolerite, which occurs mainly in the Eastern part of the country and forms part of the Mashonaland and Umkondo dolerite suites. It is on this background that the MMCZ Management Services (Pvt) (MMS) Ltd has acquired granite claims in the Chimanimani area.

The Corporation has 3 (three) claims covering an area of 75 hectares of granite in Chimanimani with an inferred deposit of 80 million metric tonnes of black - greengranite.

Additional deposits covering an area of 378 hectares of black and pink granite have been pegged in Chimamimani and Nyanga Districts. These deposits are located in the eastern part of the country, which has easy access to ports on the Indian Ocean.

In addition the country has huge deposits of various types of granite, which are available for exploitation. Hence granite extraction can be replicated 10 fold.

Requirements:
Granite Extraction
Resources Available / Granite Deposits at Chimanimani
Inferred Quantity from Current Deposit / 80 Million Tonnes
Alternative Funding for the Project / USD1,000,000
Product / Granite Blocks
Market / Various Countries
Equipment Required from China / Extraction Equipment From China
Expertise from China / Technical Support
Nature of Joint Venture / MMCZ 51%, China JV 49%
Conditions of Agreement / Terms to be concluded in an MOU
1. MINING PROJECTS cont: -

Chrome Mining

On the background of the Zimbabwe Government policy to encourage state Corporations to go into Commercial ventures, MMCZ Management Services (Pvt) Ltd is proposing to set up a chrome processing and smelting plant. This follows a worldwide increase in demand for ferrochrome. Currently the chrome smelting is dominated by three privately owned companies, whose production is usually pre-paid. It is against this background that MMS has pegged 41 chrome claims in Guruve Districts in Zimbabwe.

The Corporation has pegged 41 claims covering 688 hectares with a potential for chrome ore. The Ministry of Mines and Mining Development through the Office of the Harare Mining Commissioner, has conferred mineral rights to MMCZ on the deposits.

A joint venture partner to carry out joint exploration and mining of chrome ore for processing was identified in 2007 (Korea Resources Corporation (KORES). The project is envisaged to culminate in the construction of a smelting plant to process the ore.

Requirements:
Chrome Mining
Resources Available / Potential Chrome Deposits
Product / Ferro-chrome
Market / KORES
Equipment Required from Korea / Extraction and Smelting Equipment
Expertise from China / Exploration and Delineation of Deposits
Nature of Joint Venture / MMCZ 51%, China JV 49%
Conditions of Agreement / Concluded in an MOU

2. MINERAL PROCESSING

Granite Beneficiation

The demand for polished granite slabs and tiles has increased globally as confirmed by enquires received by the Corporation’s marketing department, which received about 200 enquiries since 2003. The current production of raw granite in Zimbabwe averages 200,000 metric tones a year; of this, only 20% is being beneficiated at 4 plants. Approximately 160,000 metric tonnes are available annually for beneficiation if the required plants are set up.

The Zimbabwean government is encouraging beneficiation of dimension stone thereby increasing foreign currency earnings for the country. In fact, processed granite blocks enhance value of the product by at least 300%. It is against this background that the MMCZ Management Services (PVT) Ltd has acquired claims in Chimanimani and Nyanga to embark on mining and beneficiation of dimension stone.

Joint venture partners are required to establish granite beneficiation plants. This is in line with the Government’s policy guideline to add value to exports.

Requirements:

Granite Beneficiation
Resources Available / Granite Blocks
Quantity from Current Production / 200,000 Metric Tonnes
Alternative Funding for the Project / US$1,000,000
Product / Slabs and Tiles
Market / Local and Various Countries
Equipment Required from China / Slabing and Tiling Equipment
Expertise from China / Technical Support
Nature of Joint Venture / MMCZ 51%, China JV 49%
Conditions of Agreement / Terms to be concluded in an MOU

2. MINERAL PROCESSING cont: -

Gold Ore Processing

The Corporation is seeking Biological Oxidation Technology for gold processing to be set up at the Roasting Plant Kwekwe. This technology will increase gold recovery to over 90% as compared to the roasting process, which gave 77% recovery from refractory ores.

Refractory ores contain elements such as sulphur, antimony and arsenic to mention just a few which, reduce gold recovery when standard cyanidation processes are used. The Corporation is currently working with Mintek of South Africa to identify the suitable technology to treat the dump. The cost of the tests is estimated at USD 5,100.00 and MMCZ are preparing the finalisation of the proposal and payment.

The Biological Oxidation technology will encourage the resuscitation of closed mines and the opening of new ones with refractory gold ore deposits.

Zimbabwe has huge deposits of refractory gold ore.

In addition the Corporation is seeking equipment that can be used by small-scale miners to effectively and efficiently extract gold from ore.

Requirements:
  • Biological Oxidation Gold Extraction Technology.
  • Gold Extraction Equipment for Small Scale Miners.
  • Mining Consumables such Caustic Soda, Activated Carbon and cyanide.

2. MINERAL PROCESSING cont:

Chrome Smelting

On the background of the Zimbabwe Government policy to empower the black indigenous within the minerals industry, an arm of the Government, MMCZ Management Services (Pvt) Ltd (MMS) has proposed to set up a chrome processing and smelting plant on the North part of the Great Dyke. This follows a worldwide increase in demand for ferrochrome. Currently three privately owned companies dominate the chrome smelting of chrome.

Equipment Requirements:

Material Handling

Screening Circuit

Crushing Circuit

Mobile Equipment

Conveyance Equipment

Dumper and Loading Trucks

Smelting

Furnace Construction

Product Handling

Casting bay equipment

3. MINERAL AND METAL SALES

Ferro- Chrome

The Corporation reserves the right to sell a portion of the producer’s annual saleable production elsewhere provided that the terms and conditions of such sales are no worse than existing sales terms to the current purchasers.

To this effect the Corporation has approached producers of Ferrochrome who have pledge to support the initiatives to supply the Chinese Market through the SJZMC. Due to contractual commitments, producers made available 3000 MT of Ferrochrome in the 3rd quarter of 2004 but to date prices obtaining in the Chinese market are low to justify supply to the market. The Corporation will continue to lobby for more tonnage to in order to cater for requirements of the Chinese Market.

Requirements:
Ferro - Chrome Sales
Resources Available / Ferro- chrome
Expectations from the China / Funds to Purchase Ferro-chrome
Nature of Joint Venture / MMCZ 51%, China JV 49%
Conditions of Agreement / Terms to be concluded in an MOU

3. MINERAL AND METAL SALES cont:-

The Corporation is currently marketing the under listed minerals on behalf of mineral producers. These commodities are available to the Chinese market at current market prices.

Precious Stones

Aquamarine

Citrine

Emerald

Garnet

Industrial Minerals

Calcite

Dolomite

Barites

Graphite

Petalite

Pollucite

Spodumene

Vermiculite

Coal

Tantalite

Slates,

Glitterstone

Other Metals

Iron

Nickel

CONCLUSSION

Opportunities in mining and mineral beneficiation in Zimbabwe are abound for Chinese investors. Zimbabwe has a comparative advantage of having deposits of various types of minerals which MMCZ Management Services (Private) Limited will continue to identify and spearhead for investment.

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