Premier in talks to install additional Spodumene Float Plant at Zulu

PREMIER African Minerals Limited has entered early discussions with a Chinese engineering, procurement and construction management (EPCM) company regarding payment options for the potential installation of an additional spodumene float plant at the Zulu Lithium and Tantalum Project.

This move comes as the lithium mining firm explores strategic options for the Zulu lithium plant at Fort Rixon, Matabeleland South.

In a recent update, Premier indicated it is considering multiple approaches to maximise the Zulu project’s potential, including the sale of the entire plant, a partial sale, or forming a joint venture. The company emphasised the importance of supporting ongoing operations at both Premier and Zulu while evaluating the best path forward.

One of the possible strategies being examined is the installation of a second spodumene float plant. This would involve increasing the throughput beyond the original design capacity to match the surplus cleaner cell capacity, which could significantly enhance production output.

“At the same time, the company is in negotiations that may result in direct investment into Zulu. The company is also happy to advice that it is also in early discussions regarding payment options with a Chinese Engineering, Procurement and Construction Management company that could potentially install an additional spodumene float plant at Zulu,” said Premier African Minerals Limited in a statement.

Premier’s chief executive officer, Mr George Roach, expressed optimism about the ongoing developments.

“We are making progress, and I expect a resolution to this final problem, after which we do expect to produce at grade and design recovery. The alternatives set out above are under active negotiation and a satisfactory outcome should result,” said Mr. Roach.

Last week, Premier was in the market to raise approximately £550 000 at an issue price of 0.0315 pence per new ordinary share, as it seeks to fund its strategic initiatives.

Premier African Minerals is a diversified mining and resource development company with a strong focus on Southern Africa. The company’s portfolio includes the RHA Tungsten and Zulu Lithium projects in Zimbabwe, as well as lithium and gold projects in Mozambique. Its projects span the spectrum from near-term production to grassroots exploration.-chroncile

IPEC: 68% of pensions sector compliant with statutory reporting; looks at re-adoption of IAS 29

BULAWAYO – The Insurance and Pensions Commission (IPEC) has highlighted the urgent need for pension funds to tackle compliance issues, particularly in statutory reporting. The commission also indicated that the sector must re-adopt IAS 29 following the recent devaluation of the local currency since its recalibration in April.

IPEC reports that overall compliance in the industry stands at 68%, with notable challenges in several areas: unclaimed benefits at 49%, submission of statutory reports at 61%, and corporate governance compliance at 64%. The investment framework shows a compliance rate of 71%, while contribution remittance is at 76%, and compliance with the expenses framework is at 83.3%.

Cuthbert Munjoma, IPEC’s Pensions Director, addressed the ZAPF Principal Officer’s convention in Bulawayo, stating that despite technological advancements, many funds still face issues with data integrity. This has led to calls for a unified IT system to enhance operational efficiency across the industry. The high costs of imported systems have further complicated compliance efforts, prompting discussions on establishing a national infrastructure for pension fund management.

A significant concern raised was the qualifications of Board of Funds (BOF) members. Munjoma indicated that 18% of BOF members do not possess the required Certificate of Proficiency (COP), raising concerns about their governance capabilities.

Additionally, 37% of BOF members have served for over ten years, which may impede the board’s ability to adapt to evolving regulations and industry standards. To address these challenges, IPEC proposed implementing term limits for BOF members, capping their tenure at ten years to foster fresh perspectives and ensure compliance with disqualification provisions.

IPEC also underscored the importance of timely and accurate statutory reporting. Munjoma outlined the penalties for non-compliance, which include financial repercussions for boards that fail to meet reporting deadlines. This emphasis on accountability highlights the necessity for pension funds to prioritise transparency and adherence to regulatory requirements.

In terms of investment strategies, IPEC stressed the need for board oversight of offshore investments, although uptake has been low, with only one registered offshore investment. Munjoma emphasised the importance of registering fund assets in the fund’s name and monitoring foreign exchange income to ensure regulatory compliance.

The management of concentration risk was also a key topic, with calls for diversification to mitigate potential losses from specific investments, particularly noting the current concentration risk in renewable energy. “The industry should also consider other offtakers,” he advised.

Munjoma reiterated the critical role of effective leadership in enhancing member outcomes. He announced that IPEC plans to issue a revised Risk and Corporate Governance Directive for the pensions industry, aligning all fund rules with new regulations. Stakeholders can expect strategic focus areas for 2025 to be shared before the year ends, reflecting a proactive approach to addressing emerging challenges in the sector.

Munjoma also mentioned ongoing engagements with the accounting regulator PAAB regarding the adoption of IFRS standards for the industry, despite previous objections. “Recent developments indicate a need to revisit this. Through our discussions with PAAB, we are emphasising the necessity for the sector to re-adopt IAS 29 and the changes to IAS 21, with plans for consultations on revising pension funds’ financial reporting before the year ends.”

IAS 21 is set to take effect on or after January 1, 2025, with earlier application permitted, and these changes are expected to improve fair value measurement practices going forward.-finx