I don't believe that the mentioned "African Gold Zimbabwe" is AFG, but the article does demonstrate rapid resurgence of E&P in Zimbabwe:

Mining Giants Plan Massive Diamond Prospecting

The Herald (Harare)

January 22, 2004
Posted to the web January 22, 2004

Harare

MINING giants, De Beers Zimbabwe Prospecting Limited and Circle Three Mining Corporation are proposing a massive diamond prospecting project that will see the two companies prospecting for the mineral in Gweru, Harare, Bulawayo and Kadoma mining districts.

The two mining companies intend to prospect for diamond in areas covering a total of 448 180 hectares.


Another company, African Gold Zimbabwe, has also undertaken to prospect for gold on two areas measuring 120 550 hectares within the Harare and Gweru mining districts.

De Beers Zimbabwe Prospecting Limited, Circle Three Mining Corporation and African Gold Zimbabwe have applied to the Mining Affairs Board for an exclusive prospecting order for 12 areas under the four mining districts.

In the latest issue of the Government gazette, the Mining Affairs Board said De Beers, Circle Three Mining and African Gold Zimbabwe intend to prospect for diamonds and gold over an area of approximately 568 730 hectares from the three areas.

"The applicants intend to prospect for diamond within the areas, which have been reserved against prospecting pending determination of this application.

"Prospecting authority is sought upon registered base mineral blocks within the reservation," read part of the notice.

One of the two diamond prospecting projects to be undertaken by Circle Three Mining measures 65 000 hectares and is bounded by a line commencing on the Zimbabwe-Zambia border approximating five kilometres.

All areas, which have been earmarked for prospecting are within the 15 000 hectares and 65 000 hectares range and are mostly in the traditional mineral bearing areas of the country.

The proposal to prospect for diamond in the country comes at a time when the US$41 million Murowa Diamond Mine has started to operate following the successful relocation of 141 families which were on the mining site.

Mining is one of the sectors which has been depressed over the last five years but some of the players in the industry have said investors should look at non-traditional minerals.

An example that is often given is that of platinum, which is fast becoming the world's most lucrative mineral.

The mining of diamond in Zimbabwe is also fast gaining pace and it is expected that some of the mining projects would create a lot of employment.

Relevant Links

Southern Africa
Mining
Zimbabwe

Mining Sector Remains Lucrative Despite Challenges

The Herald (Harare)
NEWS
April 21, 2005
Posted to the web April 21, 2005

By Jeffrey Gogo
Harare

ZIMBABWE'S mining industry has remained attractive to both foreign and local investors at a time when other sectors appear to have lost their lustre.

While a number of manufacturing companies (and other related firms) have downsized operations or are relocating from the country altogether, citing a difficult operating environment, the mining industry has proved otherwise.

The sector has remained lucrative, luring multinational mining conglomerates into an industry were vast resources of platinum and diamond have been discovered.

Zimbabwe has the largest undeveloped near surface platinum reserves in the world - around 165 million ounces in reserves along the Great Dyke region - while Murowa Diamond Mine in the Midlands has a 14,5 million carat reserve, which is equivalent to a year's production in South Africa.

It therefore does not come as a surprise that foreign mining firms have shown keen interest in investing in Zimbabwe's mining industry, which has huge potential for growth and generation of precious foreign currency.

Mining experts have also classified Zimbabwe among the top six African countries where mining activities are secure.

Such developments work in the country's favour, particularly given that Zimbabwe has intensified efforts to increase mineral production and boost its foreign currency earnings

During the last three years, gold production has dropped significantly, subsequently putting a strain on the country's already depleting foreign exchange coffers.

The mining sector contributes about 4,3 percent to Zimbabwe's gross domestic product.

The industry also accounts for about 40 percent of the country's foreign currency earnings, but the sector has not been that robust in recent years, shrinking by 10 percent in 2003 before projections that the sector would grow by 12 percent last year.

However, there appears to be some excitement from international mining companies to establish operations in the country.

Last year, a syndicate of African business people, Mwana Africa, bought into then collapsing Freda Rebecca gold mine from a disillusioned Anglo-American Gold for US$2,5 million.

The black consortium must have been somehow fascinated by the availability of huge opportunities in the country's mining industry, given that only in 2003, Mwana Africa had acquired listed nickel producer, Bindura Nickel Company, another former Anglo asset.

The black-owned consortium has other interests in the DRC, but from the look of things - having purchased two operational mines in Zimbabwe alone - it seems Mwana Africa's primary area of investment has been here, where most of its assets are concentrated.

Critics would argue that Anglo's rapid disposal of its gold assets might serve as a sign of the firm's lack of interest in Zimbabwe's mining sector. But then, they would have to offer a satisfactory explanation for the sister company's strong interests in development of the multi-billion-dollar giant Unki Platinum project in Shurugwi.

Anglo-Platinum is developing the Unki project, which is expected to commence operations in 2007.

Officials at the company are fully aware of the huge platinum reserves in Zimbabwe. Anglo Platinum must have a good reason to invest in the country.

It is not only Mwana Africa and Anglo Platinum which have shown interest in seeking a share of Zimbabwe's mineral wealth.

In July last year, international mining firm, Rio Tinto plc, former parent company to locally listed RioZim, received shareholder blessings to take up 78 percent in money-spinning Murowa Diamond project.

Rio Tinto effectively spun off RioZim, which is now holding the remaining equity in Murowa, developments described by the former holding company as a complete departure from gold mining into the lucrative diamond business.

What happened is that Rio Tinto swapped a significant part of its equity holding in RioZim in exchange for a controlling stake in Murowa Diamond.

In a similar show of confidence, in 2003, South African business tycoon Mr Mzi Khumalo, once described as South Africa's very own Tiny Rowland, bought into Independent Gold Mine, now operating under Metallon Corporation.

The company now plans to list on the JSE while recent announcements by Impala Platinum, holding company for Independent, seem to suggest that the group was keen to increase production in its Zimbabwe mines, and millions of dollars would be pumped in during this project.

However, the industry has had its fair share of problems. There has been rampant closure of mines during the last five years as producers cried foul over unviable gold prices, as well as a perceived hostile economic climate that was not conducive for operations.

Below-expectation producer prices culminated in side-marketing, a development which robbed Zimbabwe of millions in foreign earnings which never found their way into the official coffers.

Government efforts to empower indigenous people by acquiring stakes in foreign-owned mining firms operating in Zimbabwe appear to have been less successful. Some consortiums formed by local business people to acquire the stakes set aside for them have failed to raise the required funds to translate their intentions into reality.

For instance, the National Investment Trust failed to raise the US$31 million to acquire the 15 percent equity in Zimbabwe Platinum Mines, in which last-minute bids had to be made by Nkululenko Rusununguko Mining Company to buy the shareholding. But they, too, came unstuck when it came to paying for the stake.

Mr Mzi Khumalo is also understood to have offered to buy out Manyame Consortium's 15 percent shareholding in Metallon, as the locals are reportedly failing to raise the necessary funds.

However, be that as it may, Zimbabwe's mining sector has the potential to grow and could actually emerge as the country's biggest foreign currency earner given that traditional foreign exchange cash cows - tobacco and cotton - are struggling.




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Copyright 2005 The Herald. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com).
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ZMDC Intensifies Bid to Take Over Closed Mines

The Herald (Harare)
NEWS
April 21, 2005
Posted to the web April 21, 2005
Harare

THE Zimbabwe Mining Development Corporation (ZMDC) has intensified its bid to take over some mines which have closed down in recent years due to viability problems.

Chief executive Mr Dominic Mubayiwa told Herald Business yesterday that ZMDC was presently involved in negotiations to change the ownership of mines outside its stable which had ceased operations.

Among them were Sanyati Mine, Alaska Complex, Madziva Mine and Kamativi Mine.

However, he dismissed reports that ZMDC had failed to reopen some closed mines saying some of the mines were outside its control, and as such, it would have to negotiate first with their owners before taking them over and reviving their operations.

"It has never been our intention to revive all closed mines which are outside our stable but due to the strategic importance of some of the mines to the country's mining sector and economy in general, we have found it necessary to take them over.

"This prompted the corporation to engage in negotiations with the owners of the mines to take over the operations of the mines.

"We have been scouting for opportunities to find whether it was viable to take over the mines which were closed down and we are trying to evaluate old properties," said Mr Mubayiwa.

"We are currently conducting feasibility studies into some of the mines which do not belong to ZMDC and once the transfer of ownership is complete, we can now work towards reviving the operations."

Mr Mubayiwa said since the company embarked on the resuscitation of operations of mines under its stable, considerable progress had been achieved with mines which had been earmarked for rehabilitation being operational now.

Said Mr Mubayiwa: "At the moment we are in a positive direction and we have successfully re-opened Sabi Mine which was closed down in 1994."

Financial constraints have been a major setback at the State-run mining entity, as all its activities are internally funded.

As a result, the company failed to revitalise some of its closed mines and others operating below the capacity.

However, Mr Mubayiwa expressed optimism that all closed mines under its wing would be re-opened, adding that all projects initiated last year would be implemented by the end of this year. He also indicated that the company had no intention of reviving other mines including Mhangura which was closed down in 1994 owing to depleted reserves and flooding of its shafts.

The State-run mining entity has been allocated $3 billion of the $52,6 billion vote granted to the Ministry of Mines and Mining Development in the 2005 National Budget.

Although the allocation was inadequate, the ZMDC boss said the corporation would continue with its strategy to acquire big mining entities that have the potential of adding economic value to its existing portfolio.

Resultantly, the company has engaged foreign investors to inject capital to revitalise operations at the mines.

In the past, ZMDC has failed to recapitalise owing to viability problems and a crushing debt burden.

It was also hit by drastic falls in mineral prices on the international market.

Cost reduction measures were introduced in 1999 to counter the slip in the prices but failed to bear fruit because the corporation was already in a loss-making situation.

The country has been losing billions of dollars following the closure of the strategic mines due to inadequate funds for recapitalisation and shortage of foreign currency.

The mining sector contributes about four percent to the Gross Domestic Product and foreign currency generation from the mineral exports is expected to significantly increase this year due to changes in the national mine policy.

The recovery of the mining sector is mainly underpinned by significant increase in output of gold, nickel, platinum and palladium.




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Copyright 2005 The Herald. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com).
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What's happened to the MID price on this SP?

(IN CONNECTION WITH THIS ARTICLE, PERHAPS ONE SHOULD NOTE THAT 'BINDURA'IS OVER 200KM FROM 'INEZ')
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Freda Embarks On Expansion Drive

The Herald (Harare)
NEWS
June 6, 2005
Posted to the web June 6, 2005

By Walter Nyamukondiwa
Harare

GOLD producer Freda Rebecca Mine near Bindura has embarked on a multi-billion-dollar plant refurbishment, expansion and rehabilitation programme.

The initial phase, which involves new plant and equipment, is expected to gobble about US$8 million (about $75 billion).

In an interview last week, managing director Mr Fred Moyo said the investment was meant to boost the mine's operational capacity.

"We need to sort out the current problems we have and this involves introducing new equipment so that we can bring back our operating capacity," said Mr Moyo.

Until recently Zimbabwe's largest gold producer, Freda Rebecca has been teetering on the brink of collapse and is in urgent need of recapitalisation.

From a peak of about 250kg of gold every month, production has slumped over the years to between 100kg and 150kg a month.

Refurbishment of one of the plants will translate to a 5 percent recovery in output.

Mwana Africa Holdings, a South African-based mining giant, recently bought the mine from AngloGold Ashanti, a multinational company.

A mine rig has already been bought from Sweden and is expected in the country in August.

The company is currently engaged in negotiations with title-holders to expand its present sphere of operation.

"In the long term we want to expand on our mining deposits and we are engaged in negotiations with several companies, particularly Ran Mine where Globe and Phoenix is a title-holder," said Mr Moyo. The company was also in the process of finalising negotiations with financial companies on possible funding.

Commissioning of the Phoenix Prince East pit is at an advanced stage following successful negotiations with the relevant local authorities and Government.

Production is set to improve as the company plans to explore and commence extraction in identified targets within a 20km radius of the present location.

The company is facing several operational problems, notably the non-availability of foreign currency for the procurement of about 60 percent of inputs such as explosives, cyanide and filters, among others.

General manager Mr Ranganai Chinamatira believes the company could save the country billions of dollars if all inputs were readily available locally.

"The company stands to save about $6 billion for the production of about 100kg of gold if everything was available in the country.

"We are, however, very pleased with the support price for gold producers introduced by the Government," said Mr Chinamatira, referring to the recent hike from $130 000 per gramme to $175 000 per gramme announced by the Reserve Bank last month.




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Copyright 2005 The Herald. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com).
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No news over 2.5 monthes, not good enough for a supposed gold mining company ON AIM.

LONDON (AFX) - UK mining company African Gold PLC will be taken over by unlisted African peer Mwana Africa Holdings in the next few days, according to the Sunday Telegraph.

Citing sources close to the deal, the paper said the reverse takeover would create a group with a market capitalisation of 60 mln stg. African Gold is worth just 15 mln stg at current prices.