Mining ZimbabweLatest Mining News, Policy and Industry Updates

VIOLENCE erupted on Wednesday last week at Dandi 5 gold mine in Matobo, Matabeleland South province, after people suspected to be from Harare invaded the mine.

The gang reportedly used machetes and unidentified weapons to drive out workers from the mine.

Confirming the incident, mine owner Ndodana Moyo told Southern Eye that: “The gang came all the way from Harare with fake papers claiming ownership of the mine. They claimed to be the rightful owners of the mine.

Moyo said they were reclaiming ownership of the mine following the skirmishes, adding that a similar incident happened in 2019 when another group of people tried to invade the mine.

Contacted for comment, Mines ministry deputy director Brian Mtewa said: “I am not aware of the issue, I am yet to receive anything.”

Matabeleland South police spokesperson Inspector Loveness Mangena also said she had not yet been notified about the incident.

“I will contact Matopo police to find out if there has been such a case recorded because normally, such cases would have been reported (already),” she said.

According to a report from the International Crisis Group, violence associated with Zimbabwe’s gold mining sector killed hundreds of people in 2019 and early 2020.

The violence stemmed from miners fighting over gold or gangs robbing miners at gunpoint.

Newsday

RAN Mines Private Limited, a gold asset that has been at the centre of a protracted dispute between Zimbabwean investors, lurched into fresh controversy last month after winning a High Court case giving it a nod to evict retrenched workers out of its compound.

The 123-year old Bindura-based operation closed in 1999.

However, it is being brought back to operation by investors led by leading human resources executive Jack Murehwa.

Fighting over the asset reached a tipping point late last year when G&P Industries said it was pressing ahead  with plans to extract its first bullion at the mine in 22 years.

Blackgate warned that sinking shafts at the operation was illegal until the government makes a determination over ownership of the mine, which hit headlines in 2020, when 30 artisanal miners perished under its flooded shafts.

Documents obtained by the Zimbabwe Independent indicated that on March 21, Munyeza escalated her battle to Chief Justice Luke Malaba, seeking his urgent intervention.

She has previously written to President Emmerson Mnangagwa, the Zimbabwe Anti-Corruption Commission (Zacc) and the Ministry of Mines and Mining Development seeking a resolution to the dispute.

But around the time she approached the chief justice, her rivals were moving to evict former workers out of its compound.

Rights groups and ruling Zanu PF estimates show that up to 500 families have been affected by the evictions, although the court case listed 18 representatives of the former workers.

“Despite demand, it is alleged the 18 defendants refused to vacate the mine houses,” High Court papers, seen by the Independent in a case filed by Blackgate, point out.

“The defendants (former workers) failed to discharge the onus upon them to show an entitlement to continue holding on to the houses.

“The defendants and all persons claiming occupation through them and of all other persons in use, possession and control of any part of the Ran Mine compound without the consent of Ran Mine shall forthwith vacate the compound,” High Court judge Justice Jacob Manzunzu ruled on March 7.

The ruling, which attracted a rebuke from the Zimbabwe Lawyers for Human Rights Organisation further states: “ Failing vacation, the Sheriff, with the assistance of the Zimbabwe Republic Police if necessary, is authorised to eject the defendants and all persons claiming occupation through them and of all other persons in use, possession and control of any part of the Ran Mine compound without consent of the plaintiff…”

But before the messenger of court moved to effect the court order, ruling Zanu PF officials are said to have negotiated for a grace period.

The former workers’ plan collapsed after former colleagues testified against them, saying the correct position was that they had been retrenched and paid a ZW$5 000 relocation package in 1999.

A tussle over houses played out as Blackgate mounted its appeal to Malaba.

“This (mining) is all happening under the supervision of the Ministry of Mines as they have allowed them to continue mining on and establishing a mining processing plant on the disputed claims,” Munyeza wrote in a letter to Malaba dated March 21, 2022.

“We still wonder how they accessed the permission and paperwork to construct a mining processing plant on disputed claims as well as how they are selling their gold output to Fidelity Printers and Refiners.

“Mr. Jackson Peterson Murehwa has been bragging that he has an “iron claw” on the Ministry of Mines and Mining Development and the Judiciary wrapped around his finger, which implies that he is undermining the judicial foundations in legislation enshrined in the constitution of Zimbabwe, which is in tandem to committing intentional malicious treason.

“The commencement and initialisation of these criminal case investigation proceedings were informed by over a decade long legal tug of war that has been characterised by relentless blatant acts of corruption, fraud, forgery, collusion and connivance between the Ministry of Mines and Mining Development and the 2nd and 3rd Respondents under HC CASE NO. 6425 and HC 4431/20 &SC 296/11.

“They have been using this purported allegiance to the Highest Office of the land in order to circumvent legislation stipulated in the Mines and Minerals Act for them to corruptly benefit from illegal ownership of the mining claims,” she alleged in the letter.

The chief justice turned down the request to intervene, while Murehwa had not responded to Blackgate’s allegations at the time of publishing.

“Regrettably the Office of the chief justice has no power to interfere in litigation pending before a court on behalf of one of the parties,” Malaba said in his response in a letter dated March 25, 2022.

“Further, the Constitution mandates all judicial officers independently apply the law, impartially, expeditiously and without fear, favour and prejudice.

“This is how the chief justice expects the matter to be dealt with by the respective court,” he said.

Contacted for comment, deputy Mines minister Polite Kambamura said: “Can you refer to the provincial mining director Mashonaland Central with regard to that, if there is a dispute”.

The independent 

A MINISTRY of Mines and Mining Development probe into diamond exploration of big multinationals in the 1990s exposed shocking evidence of plunder. The big resources outfit, spirited away substantial tonnes of diamonds to South Africa, claiming that its shipments were only samples that were going to laboratories for studies.

It is difficult to tell how much Zimbabwe may have lost in the process. But government claimed that the figure ran into multiple millions of United States dollars.

At one point, government threatened to sue, but the hype fizzled out. The important thing was that there was a quick response.

This was important because as analysts said this week, exploration is a vital part of the resources sector which should not be left to private companies alone. Exploration gives a country the extent of its endowment. Exploration leads to knowledge and understanding.

Exploration is an important step in finding minerals so they can be potentially mined. Demand for minerals is increasing. For example, the world needs more lithium to manufacture batteries for electric cars, which are now in high demand.

This demand is helping drive an increase in exploration across the world, especially as new inventions bring demand for new minerals. Unfortunately, Chidhakwa’s dream died the moment governments changed in 2017, with focus now shifting to other issues.

But by so doing, Zimbabwe is making a huge mistake, a mistake that the country has lived with for four decades. By dropping the idea of an exploration company, the country is continuing to hand the stewardship of its resources to foreign firms, which will explore and use the data as they see fit. This week, there were concerns that exploration being carried out by multinationals cannot be trusted because they tend to use the data for their benefit. These reports are correct.

But improvements in knowledge for analysing reports and giving accurate feedback to government about the resources map must also be prioritised.

Already, there have been reports that data from many years of exploration in the past century is available, but it cannot be found. If government had taken the lead from 1980 to carry out its own exploration, the result would be different today.

This is why the push by tax experts this week to reactivate plans to establish a public exploration firm must be taken seriously.

The experts are worried that plunder and pillage may continue until the resource administration regime is strengthened. They are very correct. Zimbabwe’s wealth must be used to benefit its citizens, and those investors, who exploit minerals in a fair manner.

The time to act is now.

The Independent 

The Minerals Marketing Corporation of Zimbabwe (MMCZ) is targeting to rake in US$50 million from the gemstones industry by the end of this year, a feat to be achieved through bringing in gemstones from producing communities into the formal economy, an official has revealed.

Prince Sunduzani

The entity, responsible for the marketing and sale of minerals in the country, says it has initiated a mop-up exercise of the precious stones, which are believed to be in abundance in the mining communities.

The resources of semi precious stones in Zimbabwe are estimated to be vast their total value is estimated at $20 billion.

The country hosts about 33 different types of semi-precious minerals. The minerals are under-explored, so the estimated number of the types and value would be way below the actual.

These minerals are easily found mined, sometimes just collected or picked in the fields.

Mining of semi-precious stones in Zimbabwe is dominated by Artisanal Miners who sell informally to foreign dealers, mainly the Congolese, Mozambicans, Pakistanis, Indians and Chinese who come to their mining sites, some of whom are cartels.

Miners do not appreciate the value of these minerals hence they sell them cheaply to these dealers

As part of its drive to attain the $50 million figure, MMCZ is going to set up mineral buying centres in gemstone mining communities to sweep gemstones within the producing communities, which have been slipping into the hands of these illicit traders who have been undercharging mining communities.

Speaking in an interview on the side lines of the gemstones industry awareness workshop held at a local Hotel in Harare, MMCZ deputy general Manager-Marketing Mr Masimba Chandavengerwa said the company is putting in enacting measures to meet this monumental target.

He said, “We are focusing on buying from producing provinces. Our focus now is to go out there. We have been allowed by the ministry to go and mop up all the gemstones that are out there,

“We think that with proper education, most of the people who are holding on to the gemstones will see the benefit of coming to the formal channel, which is MMCZ.

Mr Chanda said the target was achievable, given the number of gemstones that the country is losing through the informal market.

He called on Gemstone stakeholders to draft an action plan to catalyse this process so that the country does not continue losing through illicit financial gemstone trade and overnight sales.

Low quantities of semi precious stones are coming to MMCZ, the corporation had in the past not been serious about their marketing as it is not viable to organize small consignments.

Speaking at the same event, Zimbabwe Miners Federation CEO Mr Wellington Takavarasha challenged the MMCZ to offer competitive prices to encourage individuals to sell through o formal channels.

He said MMCZ’s pricing system was one of the reasons why Miners were choosing the informal route, thus defrauding the country of much-needed gemstone revenue.

Takavarasha also urged the government to enhance the value addition of the gemstones and design laws that enhance gemstone mining, as the sector is being under utilised.

“Miners have complained about the MMCZ pricing system. People have come up with their gemstones and say the value that is being given by MMCZ does not tally with international world market standards. So as a result, people then go into illicit trade. There is also inadequate legislation and limited accountability,” he said.