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Six International Workers’ Unions to Grace ZDAMWU Congress

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Six International Workers’ Unions to Grace ZDAMWU Congress

Six international workers’ unions are set to attend the Zimbabwe Diamond and Allied Minerals Workers Union (ZDAMWU) Congress to show support and solidarity for the plight of mine workers in Zimbabwe, ZDAMWU General Secretary Justice Chinhema has said.

By Rudairo Mapuranga

According to Chinhema, preparations for the Congress are ongoing, and 250 members of the Union from all mines in Zimbabwe have already confirmed their attendance.

Chinhema said the Mine Workers Union of Zambia, National Union of Mineworkers from South Africa, Ghana Mine Workers Union, Egypt Mine Workers Union, and IndustriAll Global Union will grace the event, each bringing two representatives.

“Preparations for the Congress are ongoing, and we can confirm that 250 members of the Union from all mines will attend. We will also have the following unions represented by their President and General Secretary:

1. Mine Workers Union of Zambia
2. National Union of Mineworkers – South Africa
3. Namibia Mine Workers Union
4. Botswana Mine Workers Union
5. Ghana Mine Workers Union
6. Egypt Mine Workers Union
7. IndustriAll Global Union

Each of the above unions is sending two representatives,” Chinhema said.

According to Chinhema, ZDAMWU has invited the Ministry of Labour to be the guest of honour at the event, having already written a letter to the Ministry.

He said the Mayor of Bulawayo, where the Congress will take place, is also expected to attend and grace the event.

“We have invited the Minister of Labour, who generally will be the guest of honour – they are yet to respond. We have invited the Mayor of Bulawayo. Dr. Kanyenze is coming to make a presentation on the Compensation Framework for Loss of Pension Value,” he said.

Chinhema said ZDAMWU was seeking partnerships with any organization that provides services to mine workers in Zimbabwe.

“We are also seeking partnerships with any organization that provides services to mine workers,” he said.

The 2nd Congress for the Zimbabwe Diamond and Allied Minerals Workers Union will be held from August 29-31, 2024, in Bulawayo at KHUMALO HOTEL under the theme, “PROMOTING INCLUSIVE BUILDING UNION POWER TOWARDS UNLOCKING JOB SECURITY AND TRANSFORMATION.”

Mining Industry Workers Get Reprieve, but the War Over Wages Is Yet to Be Won

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Mining Industry Workers Get Reprieve, but the War Over Wages Is Yet to Be Won

Local mine workers received a reprieve last week as the High Court nullified the National Employment Council (NEC) Mining Industry Constitution in a landmark ruling that stated the council’s agreement on salaries and wages was null and void.

By Ryan Chigoche

The news was received across the mining sector with much jubilation as it allows workers to bargain for higher salaries. However, it is a battle won, with the war far from being over.

Representatives of the mining workers argued that there were no consultations with other sector trade unions, which were excluded from the decision-making process dominated by the Associated Mine Workers Union of Zimbabwe (amwuz). The latter has long been accused of sidelining submissions from other trade unions, as they have always aligned with the NEC.

The collective bargaining agreement for the compensation rates for the year 2024 was reached on June 18 of this year, and the now-void constitution was signed on February 26. According to the now-nullified compensation rate document, the highest-paying grade in the mining business would get US$535, while the lowest salary to be paid in US dollars would be US$230.

The mining industry NEC published the proposed structure in March of this year, which impacted employees in grades 1 through 13. The Zimbabwean Chamber of Mines and the Associated Mine Workers Union of Zimbabwe agreed with the NEC’s suggested structure.

The increment as per the NEC circular was just a mere US$14 for the period that extends from January 1 to December 31, 2024, despite the sector wages having been last reviewed in March 2023.

The salary increment fell short of the Poverty Datum Line, which currently stands at US$575 as the cost of goods and services has been on the rise in Zimbabwe, despite the introduction of a new currency—a trend that accelerated at the beginning of 2024.

Mine workers, who argue that their interests were not represented in the talks, are holding out for a minimum wage of US$600, all payable in US dollars, calling on individual companies to pay their workers realistic wages.

Following this latest ruling, it remains to be seen whether the NEC will be forced to go back to the negotiation table and offer more realistic wages in line with the expectations of the mine workers, resulting in a win of the war for the former.

Low wages in Zimbabwe’s mining sector have been a persistent issue, despite the massive wealth the industry generates.

When global prices for key minerals like gold, platinum, and diamonds decline, mining companies often cut costs, including workers’ wages, to maintain profitability. However, when the prices firm, wages are not immediately reviewed. This cost-cutting persists even though the sector produces significant wealth, leading to a stark disparity between the industry’s earnings and the compensation received by its workforce. Consequently, miners, who play a crucial role in extracting valuable resources, frequently face financial hardships, highlighting a broader issue of inequitable wealth distribution within the sector.

The mining sector accounts for about 15% of the country’s gross domestic product (GDP) and 80% of national exports. Gold dominates as Zimbabwe’s single biggest export, accounting for 24%, followed by mineral mattes, an intermediate product (including the large exports of platinum group metals), accounting for 18.3% of the total value of goods exported.

Zimbabwe gold buying prices per gram 25 July 2024

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Zimbabwe gold buying prices per gram 25 July 2024

Fidelity Gold Refinery (FGR) official gold buying prices/ gram. See the Zimbabwe gold buying prices per gram today 25 July 2024.

SG 90% and ABOVE US$73.56/g
SG ABOVE 85% BUT BELOW 90% US$72.79g
SG ABOVE 80% BUT BELOW 85% US$72.01/g
SG ABOVE 75% BUT BELOW 80% US$71.23/g
SAMPLE BELOW 10g BUT ABOVE 5g US$70.06g

Fire Assay CASH $73.95/g

NB: Fire Assay cash price is for gold above 100gs, no sample is deducted.
For the Fire Assay Transfer price, a sample of not more than 10g is deducted
A 2% royalty is charged on all deposits (Small-scale miners)
A 5% royalty is set for Primary Producers

Cash available. Fidelity Gold Refinery prices will be changing daily to match world market prices.

ZCDC Settles Outstanding Taxes After US$1.73 Million Penalty

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ZCDC Settles Outstanding Taxes After US$1.73 Million Penalty

The Zimbabwe Consolidated Diamond Company (ZCDC) was hit with a US$1.73 million penalty for delays in settling its tax obligations to the Zimbabwe Revenue Authority (ZIMRA).

By Patricia Rwafa

The company blamed cash flow problems for the late payments but has since reached an agreement with ZIMRA and obtained a tax clearance certificate for 2023.

Findings by Acting Auditor-General Rheah Kujinga in her Value for Money Audit Report on ZCDC audits for the year ending December 31, 2022, showed the big miner veered into ZIMRA’s crosshairs after failing to submit Transfer Pricing Returns, which were due on April 30, 2022.

According to the audit, ZCDC further fuelled ZIMRA’s pursuit of delinquency after failing to pay Value Added Tax and Income Tax on time.

Official reports showed this week that ZCDC was slapped with US$1.73 million in penalties after delaying the remittance of taxes two years ago.

Acting Auditor-General Rheah Kujinga said,

“The company’s bank accounts were garnished and the charge amounted to US$1.73 million and ZW$920 million for non-compliance. The company was not generating enough revenue during the year under review. As a result, it was not remitting Value Added Tax and Income Tax on time.”

ZCDC management confirmed the firm was navigating through a dire cash-flow crisis during the period but reached out to ZIMRA to present its case.

“The late payment of taxes during the year was mainly due to cash-flow challenges, which the company faced in 2022,” management said in response to the AG’s report. “However, during this period, management was engaging ZIMRA on a regular basis, through official payment plans for overdue taxes.”

The report noted that as a result of these engagements, the company was issued a tax clearance certificate for the full year of 2023.

ZINIRE to Engage ASM on Reducing FoG Accidents

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ZINIRE to Engage ASM on Reducing FoG Accidents

The Zimbabwe National Institute of Rock Engineering (ZINIRE) plans to engage with the Zimbabwe Miners Federation (ZMF) to apply rock engineering solutions aimed at reducing Fall of Ground (FoG) accidents in the sector.

By Rudairo Mapuranga

FoG accidents account for 20% of all mining accidents in Zimbabwe occurring within the Artisanal and Small-scale mining (ASM) industry. This highlights the urgent need for targeted interventions to address safety concerns in this sector.

Speaking to Mining Zimbabwe, ZINIRE President Renias Tirivabaya stated that his organization has identified a significant challenge within the ASM sector related to the lack of proper surveying. As a result, they plan to meet with the ZMF, the umbrella body representing millions in the ASM sector, for an engagement program to address FoG accidents.

“But one important thing is to have engagement. We are going to thoroughly pursue engagement with the small-scale mining community through the Zimbabwe Miners Federation so that they engage their members in applying the right principles in mining and practice.

“The challenge with small-scale miners is how they are mining. We have multiple pits on the same reef, which are not coordinated or surveyed, resulting in people mining into each other. This leads to incidents like the one the guest of honour mentioned, accounting for about 22% of the fatalities,” he said.

Tirivabaya also mentioned that ZINIRE would engage the Zimbabwe School of Mines to develop a program on shaft timbering for ASM.

“We also need to look at how we can assist them, mainly in shaft timbering, to protect the accesses. Many accidents are due to a lack of access after an incident, such as a shaft collapse. We are considering partnering with the School of Mines, which has started the Shaft Timbermen’s Diploma. However, we could also look at something less extensive, like an awareness campaign, to encourage miners to learn the basics of shaft timbering. This would help protect the accesses, which are a major cause of fatalities because people can’t be rescued if the accesses are not up to spec,” the ZINIRE President said.

Zimbabwe gold buying prices per gram 24 July 2024

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Zimbabwe gold buying prices per gram 24 July 2024

Fidelity Gold Refinery (FGR) official gold buying prices/ gram. See the Zimbabwe gold buying prices per gram today 24 July 2024.

SG 90% and ABOVE US$73.01/g
SG ABOVE 85% BUT BELOW 90% US$72.23g
SG ABOVE 80% BUT BELOW 85% US$71.46/g
SG ABOVE 75% BUT BELOW 80% US$70.69/g
SAMPLE BELOW 10g BUT ABOVE 5g US$69.53g

Fire Assay CASH $73.39/g

NB: Fire Assay cash price is for gold above 100gs, no sample is deducted.
For the Fire Assay Transfer price, a sample of not more than 10g is deducted
A 2% royalty is charged on all deposits (Small-scale miners)
A 5% royalty is set for Primary Producers

Cash available. Fidelity Gold Refinery prices will be changing daily to match world market prices.

ZINIRE Symposium Highlights Collaboration Between Students and Solution Providers in Rock Engineering

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ZINIRE Symposium Highlights Collaboration Between Students and Solution Providers in Rock Engineering

At the Zimbabwe National Institute of Rock Engineering’s (ZINIRE) Annual General Meeting (AGM) and Symposium held at the School of Mines in Bulawayo on Saturday, Vice President Omberai Mandingaisa emphasized the crucial need for collaboration between industry solution providers and students.

By Rudairo Mapuranga

Mandingaisa urged solution providers to consider their role in educating and preparing young engineers, highlighting the importance of providing platforms for upcoming rock engineers to understand industry products and developments.

Speaking at ZINIRE’s Annual General Meeting (AGM) and Symposium at the School of Mines in Bulawayo on Saturday, Mandingaisa highlighted the critical need for collaboration, urging solution providers to consider how they could contribute to educating and preparing young Engineers.

“We need to bring these upcoming rock engineers to a platform where they understand these products,” Mandingaisa said.

“My challenge to you is, what are you going to do? What is the art of the possible? How can you help these youngsters understand the products, the development, and your line of thinking?” he said.

Mandingaisa stressed the importance of passing on knowledge and experience to the younger generation, noting that Gen Z’s innate technological skills have the potential to revolutionize the industry if given the right guidance and opportunities.

“We need to impart the knowledge we’ve got, our line of thinking, so they can mix it with the technology they know and make the next generation of products,” he said.

Ope Muranda, the Vice President of the Association of Junior Mining Professionals of Zimbabwe (AJMPZ), echoed these sentiments in his speech. He outlined the strong benefits of collaboration between academics and industry professionals, emphasizing how it can bridge the gap between theory and practice.

“The collaboration between academics and industry professionals has a strong benefit to both the present and the future of rock engineering,” Muranda said. “Innovative solutions and improvements in the practice of rock engineering are the most likely outcomes from these collaborative efforts since most of the effort is centered on improving the efficiency of industrial projects.”

Muranda stressed that such collaborations force academics to maintain a strong connection to practical applications of their work, keeping them current with industry trends. Meanwhile, industry professionals benefit from learning about the latest research findings. This exchange of knowledge, experience, and ideas is crucial for developing innovative solutions and best practices.

“Internships and job placements can help students develop professional skills and industry networks, transitioning from theory to practical applications,” Muranda added. “This gives the industry an opportunity to gain access to fresh talent and potential future employees.”

Muranda also highlighted the importance of collaborative or industry-funded research projects. These projects can accelerate the development and implementation of new technologies in rock engineering, providing academics with funding and resources that might otherwise be unavailable. In turn, the industry can directly influence research priorities, benefiting from the results of these projects.

The symposium concluded with a call to action for all participants to actively engage in fostering these collaborations, ensuring that the future of rock engineering in Zimbabwe is bright and innovative.

ZINIRE held its Annual General Meeting (AGM) and Symposium at the School of Mines in Bulawayo on the 20th of July, emphasizing the importance of collaboration between students and industry solution providers in rock engineering.

The symposium was a significant gathering for the rock engineering community, bringing together professionals, academics, and students to discuss the future of the industry in Zimbabwe.

Ten Strategies Employed by the Ministry of Mines to Achieve Vision 2030

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Ten Strategies Employed by the Ministry of Mines to Achieve Vision 2030

The Ministry of Mines and Mining Development, in its quest to achieve the targets set under the National Development Strategy-1 (NDS1) and ultimately Vision 2030, has outlined several strategies aimed at elevating Zimbabwe’s mining sector to world-class standards.

By Rudairo Mapuranga

Zimbabwe is confident that, supported by NDS1, it will achieve an upper middle-income economy by 2030, with mining being a top priority. According to the Minister of Mines and Mining Development, Hon. Winston Chitando, the following strategies are key to realizing the mining sector’s outcomes:

1. Amendment of Mining Legislation

The Ministry is amending the Mines and Minerals Act, the Gold Trade Act, and the Precious Stones Trade Act. Following an adverse report from Parliament regarding the Mines and Minerals Bill in 2023, necessary adjustments have been made, and the Bill is now with the Office of the Attorney-General, awaiting gazetting. Further legislative reviews are planned for 2025.

2. Mineral Exploration and Development

The Ministry promotes exploration activities to discover new mineral deposits and expand the country’s mineral resource base through targeted geological surveys, private sector incentives, and a comprehensive geological database. These efforts have led to increased mineral production since 2018. The Mining Promotion Corporation is also being capacitated for exploration and development.

3. Computerised Mining Cadastre Information Management System

The pilot center for the Computerised Mining Cadastre Information Management System in Manicaland is at an advanced stage, with data being uploaded and cleaned in consultation with the contractor, preparing for rollout to all eight mining provinces.

4. Beneficiation and Value Addition

The Ministry is increasing local processing and beneficiation of minerals, implementing value addition policies such as banning the export of chrome ore, concentrates, and lithium ore (Ref: S.I. 213 of 2022, SI 123 of 2023, and SI 57 of 2023). The Gemmology Centre in Manicaland will serve as a training center for the value addition of precious stones and gemstones.

5. ‘Use It or Lose It’ Principle

To optimize mining production and encourage responsible resource management, the Ministry mandates that mining title holders must demonstrate progress and production or risk losing their titles. Provincial Mining Directors update the database on mining title utilization levels.

6. Enhancing Investment in the Mining Value Chain

Since 2018, the Ministry has facilitated new mines, expanded existing projects, and revived closed ones, including Eureka Gold Mine, Kamativi Lithium Mine, Dinson Iron and Steel Company (DISCO) mine, and Mucheso Coal Mine. This aims to make the mining sector a preferred destination for investors, contributing to economic growth, social development, and environmental sustainability.

7. Formulation of Minerals Development Policies

The Ministry is crafting the Minerals Development Policy, Artisanal Small-Scale Gold Mining (ASGM) Strategy, and the Value Addition and Beneficiation Strategy. Stakeholder consultations have been conducted in all provinces, and feedback is being incorporated into draft policies to improve mining sector governance.

8. Capacitation of Small-Scale Miners

The Ministry is establishing Gold Service Centers to offer technical services, milling services, and markets for gold produced by small-scale miners. The Mining Industry Loan Fund (MILF) provides financial assistance and equipment. Additionally, the Ministry conducts Safety, Health, and Environmental (SHE) awareness campaigns and offers technical services. The Zimbabwe School of Mines offers tailored courses for artisanal small-scale miners.

9. Enforcement of Responsible Mining

The Ministry’s Responsible Mining Initiative promotes sustainable and responsible practices. Last year, 422 mines were audited across all eight mining provinces. The second Responsible Mining Audit has been launched with the participation of twelve Ministries, Departments, and Agencies (MDAs).

10. Annual Review of Strategies

The Ministry will continue to review these strategies annually to ensure alignment with the goal of growing the mining industry. Despite challenges such as fluctuating global commodity prices, high operating costs, and a skills shortage, the sector is poised for significant growth, offering opportunities for innovation and sustainable development that can drive inclusive development and poverty alleviation.

Zimplats’ Appeal Against ZIMRA’s 60/40 Apportionment Method Dismissed with Costs

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Zimplats’ Appeal Against ZIMRA’s 60/40 Apportionment Method Dismissed with Costs

The Supreme Court of Zimbabwe has dismissed an appeal by Zimbabwe Platinum Mines (Pvt) Ltd (Zimplats) against the Zimbabwe Revenue Authority (ZIMRA), in which Zimplats sought a declaratory order to validate its method of calculating income tax liabilities. Zimplats contended that its interpretation of Public Notices 36 and 57 of 2021, alongside the Finance and Income Tax Acts, was correct.

By Rudairo Mapuranga

The mining giant aimed to determine its tax liabilities by deducting expenses in the currency they were incurred—USD expenses from USD income, and ZWL expenses from ZWL income.

However, ZIMRA’s interpretation, which was upheld by the High Court and later affirmed by the Supreme Court, required a 60:40 apportionment ratio for splitting foreign and local currency expenses, reflecting the mixed nature of Zimplats’ revenue streams.

Zimplats operates under a General Mining Lease and conducts its business in both USD and ZWL, generating income from exports and local sales. The mining company initially functioned under a Special Mining Lease (SML), which mandated tax payments in USD. The shift to a General Mining Lease subjected Zimplats to the general tax provisions of the Income Tax Act.

Zimplats challenged ZIMRA’s requirement that expenses be apportioned between USD and ZWL in a 60:40 ratio. The company argued that this method was incorrect and that its proposed calculation, which directly matched expenses and income in their respective currencies, should be accepted. ZIMRA, however, maintained that the apportionment was fair and legally sound, as dictated by section 4A (10) of the Finance Act.

The High Court initially dismissed Zimplats’ application, prompting the appeal to the Supreme Court. The appellate court upheld the lower court’s decision, affirming that ZIMRA’s apportionment method complied with the legal requirements. The Supreme Court emphasized the need to match income and expenses in their respective currencies before making deductions, reinforcing the principle established in previous rulings such as Delta Beverages (Pvt) Ltd vs ZIMRA.

The Supreme Court ruled that ZIMRA’s Public Notices have legal force and that the 60:40 ratio for splitting expenses accurately reflected the mixed-currency nature of Zimplats’ operations. The court found no fault in ZIMRA’s interpretation and application of the relevant tax laws, stating that the apportionment method was fair and consistent with the legislative intent.

This decision has significant implications for Zimbabwe’s mining sector, particularly for companies operating in a dual-currency environment. By affirming ZIMRA’s method of apportioning expenses and income, the ruling provides clarity on how taxable income should be computed, ensuring consistency across the industry.

ZINIRE Annual General Meeting (AGM) and Symposium hailed

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ZINIRE Annual General Meeting (AGM) and Symposium hailed

International companies attending the Zimbabwe National Institute of Rock Engineering (ZINIRE) Annual General Meeting (AGM) and Symposium at the School of Mines in Bulawayo on Saturday commended the institute for offering a platform that effectively showcases their products in Zimbabwe.

By Rudairo Mapuranga

Nine international companies attended the ZINIRE AGM and Symposium, making it one of the most significant mining gatherings attended by international companies in Zimbabwe.

The companies also appreciated ZINIRE for highlighting notable solutions needed to ensure the continued growth of the rock mechanical engineering sector.

Speaking to Mining Zimbabwe on the sidelines of the ZINIRE AGM and Symposium, Vincent De Lange from Elbroc Mining Products said the ZINIRE event offers a chance for networking and enables international companies to establish a footprint in Zimbabwe’s rock engineering solutions industry.

“The main benefit for me is meeting old friends from Zimbabwe, including rock engineers, mine managers, and suppliers. In mining, relationships are crucial. Without them, you’ll never survive.

“We need to re-establish our footprint as Elbroc Mining Products in Zimbabwe because we have the best products in the market when it comes to hydraulic props, which we manufacture in South Africa. We belong to the Royal Bafokeng Holdings Group,” Vincent said.

Keagan Carlisle of Groundwork Consulting, also speaking to Mining Zimbabwe, said the AGM has benefited his company by identifying the solutions needed in Zimbabwe’s mining industry and how it can break into the market.

“It gives us a chance to get exposure to what’s happening here in Zimbabwe. It gives us a chance to get a feel for what the mining companies here in Zimbabwe are doing, understanding their needs and wants. So yeah, it is absolutely valuable for us to be here,” he said.

Mr. Frans Cronje, Export Sales Manager for RSC Ekusasa Mining, said the ZINIRE AGM has always been fruitful, and his company has been attending for several years.

“It was a very fruitful meeting in Zimbabwe. I’ve been coming here for many years, and I think suppliers need to support this function and this fraternity. Yes, if I get the opportunity to come again, I will,” he said.

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