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Extractive sector important towards the development of Zim

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Extractive sector important towards the development of Zim

Regional Governance, Research and Policy Officer at Southern Africa Resource Watch (SARW) Veronica Zano has stressed the importance of managing the extractive sector saying they contribute heavily to the economic development of the country.

Shantel Chisango

Speaking at the Zimbabwe Multi-Stakeholder Debt Conference held at the Rainbow Towers today, she added that if governed properly, they can play a vital role in the eradication of poverty, especially in developing countries.

“Minerals have immense potential to drive growth, support, sustainable development, and reduce poverty in developing countries,” she said.

Zano went on to say that it is high time that the country realizes how it can take advantage of the mineral resources it is endowed with to help in the development of the economy, as well as for settling public debts.

“There is, therefore, a need to identify how Zimbabwe’s extractive sector can be an engine for sustainable development and more importantly the addressing the country’s huge public debt deficit,” added Zano.

It is however important to note that the mining sector alone cannot strengthen and properly be the only catalyst in developing the country, but there must be efforts by the government to push other sectors in strengthening the economy.

“Mining on itself can never catapult the nation to the developments that it wants, on its own, but there should be efforts by the government to ensure that resources underpin development from other economies,” said Veronica.

During the meeting, she mentioned that the mining sector is a volatile place where prices can sky-rocket, and at the same time can fall abruptly, hence the country’s sheer value of extractive industry being infested with many challenges.

“Zimbabwe’s sheer value of the extractive industry has been riddled with a lot of challenges which include not always being able to collect appropriate levels of revenues, and illicit financial flows.”

Muzarabani oil company nominated Africa’s oil and energy awards

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Muzarabani oil company nominated Africa’s oil and energy awards

Australian Stock Exchange-listed oil and gas exploration firm with operations in Muzabani, Mashonaland Central, Invictus Energy Ltd has been nominated for Best Independent player in Africa for the Big 5 Board Awards at the Africa E&P Summit and Exhibition.

Rudairo Mapuranga

The Big Five Board Awards are the longest-standing awards for Africa’s oil and gas industry. Awarded since 1996 and with over 150 recipients to date, the Big Five Board Awards enter an incredible 25th year. The winners will be revealed at the Big Five Board Awards ceremony as the finale of the Africa E&P Summit. The awards ceremony celebrates the best individuals and companies active in Africa’s oil & gas sector. There are five award categories within the Big Five Board Awards and a special category for Africa’s Oil Legend.

Award Categories

  • Distinguished Individual Contribution to the African Industry
  • Corporate Contribution to African Petroleum & Excellence
  • Africa’s Independent Player of the Year
  • Service & Supply Company of the Year
  • African National Oil Company of the Year
  • Africa’s Oil Legend Award

The Africa E&P Summit brings together Africa’s upstream industry for a unique event shaped for companies active in Africa’s oil and energy game and provides unrivalled insight into the Continent’s fast-changing exploration and energy horizon. The Africa E&P Summit will be a hybrid event, encompassing an in-person conference in London in which an online audience also participates.

Govt finally address Chinese mine saga in Uzumba

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Govt finally address Chinese mine saga in Uzumba

Top government and ZANU PF officials recently visited Kaseke village in Uzumba on a fact-finding mission after a Chinese mining company reportedly took over an entire village to extract black granite.

Vongai Mbara

The delegation included Local Government minister July Moyo, Mashonaland East Provincial Affairs minister Apolonia Munzverengwi, Mines deputy minister Polite Kambamura, Zanu PF acting Mashonaland East provincial chairperson Michael Madanha, the area’s traditional leader Chief Nyajina and Uzumba legislator Simbaneuta Mudarikwa, among others.

During the briefing, village leaders, Chief Nyajina and Mudarikwa accused provincial mines officers of being “reckless” in granting Heijin Mining Company the nod to operate in the area without following due procedure.

The mines officers had earlier submitted that at least 20 households would be affected by the Chinese miner’s activities.

This angered Chief Nyajina, who accused the mines officers of misrepresenting facts to the delegation.

He said the number of affected households was more than 70.

Speaking to journalists in Uzumba, Kambamura admitted that some loopholes led to the pegging of the mine on the village.

“We travelled here to hear the complaints from the villagers and that there were some irregularities in the way the claims were pegged. Miners operating here did not do enough consultations, so we have taken note of the grievances,” he said.

“We are going to invite the miners and our officials who are working in this province to come to the ministry and explain what actually transpired in the issuance of those licences.”

Heijin Mining Company has pegged the whole of Kaseke Village to extract the black granite from two nearby mountains.

The move has, however, faced resistance from the villagers and traditional leaders who have since approached the government to stop the operations.

The villagers, through the Zimbabwe Lawyers for Human Rights, are demanding that the provincial offices furnish them with the company’s prospecting licence and the Environmental Impact Assessment certificate, arguing that the mine was established without their consent.

MMCZ, ZCDC fight over diamond deal

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MMCZ, ZCDC fight over diamond deal

Chaos has erupted in a fierce fight over the choice of a partner in the proposed diamond value addition project between State-owned diamond miner, the Zimbabwe Consolidated Diamond Company (ZCDC), and Minerals Marketing Corporation of Zimbabwe (MMCZ). 

Vongai Mbara

According to the deal, which was approved by Cabinet, a venture capital agreement would be signed between the partner and MMCZ, an exclusive agent for marketing and selling of all the minerals mined in Zimbabwe except silver and gold.  

However, ZCDC, which was formed in 2015 after the government consolidated all diamond mining companies in Chiadzwa district in Manicaland, wants to be consulted on the process to engage a partner. 

ZCDC has since written to MMCZ to stop the tender process. 

Sources told a local publication Business Times that the move by ZCDC has since forced MMCZ to halt the process to engage partners, with one of them said to be a diamond buyer with facilities in Milton Park, Harare. 

It is understood that some government officials and ZCDC are not comfortable with the possibility of engaging this diamond buyer who has been subject to various allegations of collusion and rigging of diamond tenders. 

“The two organizations (MMCZ and ZCDC) were mandated by the Cabinet to venture into diamond value addition collaboratively. They were supposed to consult in the event of any need to engage a partner in diamond value addition. But MMCZ had already moved with the process without consulting ZCDC who are the miners of the diamonds,” one source said. 

All efforts to get a comment from ZCDC chief executive officer, Mark Mabhudhu, were futile. 

Contacted for a comment MMCZ general manager, Tongai Muzenda said: “We are moving ahead with the project and there has been serious interest from prospective investors towards the project.” 

According to a Government Gazette General Notice 320 of 2021, MMCZ is looking at providing venture capital to an identified partner for diamond processing in line with the corporation’s “strategic initiatives towards increased value addition and foreign currency generation”. 

The latest friction comes after concerns were raised in March this year that a diamond syndicate composed of ZCDC evaluators and MMCZ was accused of possible price collusion with buyers. 

There were officials who have been leaking diamond prices to prospective diamond buyers which eliminated all competition in diamond buying as there are growing concerns that only one diamond buyer of Lebanese origin has been buying the bulk of the diamonds. 

As of 2018, the government has introduced online diamond sales in a bid to promote transparency and the ease of doing business. 

According to Mines and Mining Minister Winston Chitando, the implementation of the Zimbabwe Electronic Diamond Trading System was supposed to augur well for future diamond sales and supported the ease of doing business mantra. 

The system was also meant to ensure that the sale of diamonds through the MMCZ was in line with global best practices. 

But despite the auction system, this publication is reliably informed that there has been collusion as one buyer has managed to enjoy the monopoly of buying all the parcels. 

Controversy has followed the diamond trading industry in Zimbabwe like a shadow. 

In 2019, a Lebanese diamond dealer Hussein Robai was deported from Zimbabwe over illegal diamond dealing working in cahoots with former ZCDC executives. 

The deportation of Robai came after there were consented efforts by some officials at the Foreign Affairs ministry and ZCDC to protect the Lebanese who was only deported eventually through the intervention of state security services. 

The Department of Immigration deported Robai over his previous illegal diamond dealing convictions in India allegations and has been allegedly behind a spate of illegal diamond smuggling in the country. 

In September 2008, Hussein and Yusuf Ossely were arrested in India with rough diamonds worth an estimated value of US$900 000. They were later sentenced to four years in prison for trading in conflict diamonds. The duo was allowed to operate in Zimbabwe despite the conviction.

China to stop funding coal projects abroad

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China to stop funding coal projects abroad

President of the People’s Republic of China Xi Jinping yesterday pledged to end all coal-fired power projects abroad.

Shantel Tyne Chisango

The Republic of China has been investing in coal-fired power projects in Zimbabwe, the Lusulu 1 Binga Cola plant, and also including the Sengwa Coal plant which was recently stopped due to the Bank of China which had withdrawn its financial support.

In pursuit towards carbon dioxide emission before 2030, while achieving carbon neutrality before 2060, China hence proposed to stop all coal-fired projects investments outside China.

On the same note, China promised to continue supporting developing countries developing green and low-carbon energy.

Xi Jinping further stated the importance of achieving economic development globally and ensuring that global development is made a priority.

“We need to put development high on the global macro policy agenda, strengthen policy coordination among major economies, and ensure policy continuity, consistency and sustainability,” said Jinping.

Currently looking at Zimbabwe, it is quite clear that the country relies heavily on coal for the production of electricity, so the move by China to stop all fundings abroad will cripple the sector considering that China is one of the biggest investors in the country.

Zimbabwe’s coal industry has existed for a century, and the country possesses 10.6 billion to 26 billion tons in reserve which is enough to last another 100 years.

In addition to the facility scheduled for Gokwe, Zimbabwe has four coal-fired power plants — in Harare, Munyati, Bulawayo and Hwange towns.

South Mining, HLB build a US$100 000 library

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South Mining, HLB build a US$100 000 library

HWANGE Local Board (HLB) has partnered with South Mining (Pvt) Limited to construct a state-of-the-art public library at an estimated cost of US$100 000 with the aim of improving education standards in the district. This was revealed in the council’s latest report.

Hwange chairperson Nqobile Ocean Mabhena said the construction of the public library was part of the local authority’s strategy to create synergies with private players for the development of the district.

He said they entered into a public-private partnership arrangement with South Mining for the construction of the library.

Mabhena, however, said owing to the prevailing economic challenges the council was financially constrained to carry out some of the projects.

“We have to resort to alternative models of funding to embark on some of the projects and one such way is venturing into partnerships with private players,” he said.

The library, he said, was expected to be technologically a modern facility.

“The library won’t be your traditional type of building filled with stacks of books and resources. Apart from offering a wide range of books, it will consist of electronic resources such as computers and Wi-Fi, encouraging users to do more in terms of research. Over and above that, we expect it to be a relational library where people meet and interact,” he said.

Mabhena said the library would play a pivotal role in improving the pass rate in Hwange district.

“Hwange district has always had the highest pass rate in the province but there is a need to improve nationally and I believe this library can play a part in that,” he said.

South Mining representative Charles Muchabaiwa said the construction of the public library in Empumalanga high-density suburb was expected to be complete before the end of the year.

He said the move was part of the coke processing company’s social corporate responsibility.

“We are looking at investing about US$100 000 towards the construction of an upmarket library including purchasing of related ancillary equipment to be used there such as computers and furniture,” he said.

“Construction of the library is one of the many ways of ploughing back to the community from which we operate. This library won’t be your traditional form of a library but it will be highly technological.”

The company has already cleared and fenced off the area designated for the construction of the library.

Newsday

Afrochine pursues better health standards for its workforce

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Afrochine pursues better health standards for its workforce

Afrochine, Zimbabwe’s largest chrome smelting operation, is in pursuit of maintaining superior health standards for all its staff.

Shantel Chisango

Last week, the company embarked on medical examinations on all of its employees at Selous, where two medical doctors and X-ray personnel were stationed.

The endeavour followed the company’s vaccination campaign, in which employees and their families were inoculated against illnesses.

Afrochine said the company’s goal is not to be the best only in the market, but also in aspects to do with the community, health, safety, and quality.

“We strive to be leaders not just in industry but also in community, health, safety and quality,” said Afrochine in a statement.

Afrochine Smelting (Pvt) Ltd was established in 2012 and is a subsidiary of China’s second-biggest stainless steel products manufacturer Tsingshan Group.

The company is currently setting up a state of the art ferrochrome smelting plant in Selous.

Afrochine Smelting P/L accomplished the construction of 2 x 16.5MVA smelters with a capacity to produce 50,000 metric tons of ferrochrome per year, as the first phase of the project.

These smelters are being constructed in Selous, which is located about 80km from the capital Harare. The total investment on the first phase is in the region of USD 25 million. The project will consume 120,000 metric tons of chrome ore and 24,000 metric tons of coke per year.

Chinese company apologises for mining without traditional blessings

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Chinese company apologises for mining without traditional blessings

A Chinese diamond company, Anjin Investment, which resumed operations early this year, has publicly apologised to Headman Chiadzwa for resuming operations without a paying courtesy call to the traditional leader first.

Vongai Mbara

Speaking at Headman Chiadzwa’s compound last week,  Anjin human resources manager Amon Mhlanga apologized for the company’s resuming operations without paying a courtesy call to the traditional leader as per traditional protocols.

“We would like to apologise to Headman Chiadzwa for our failure to pay a courtesy call when we came back to mine in his area. We are very sorry and we admit that we erred. We did not follow the protocol to visit the headman and advise him of our presence in his area,” said Mhlanga.

The meeting was held in conjunction with a visit by the Parliamentary Portfolio Committee on Mines and Mining Development led by Hon Edmond Mukaratigwa.

Present at Headman Chiadzwa’s homestead were community-based, and civil society organisations among other stakeholders.

Mhlanga went on to advise the community that their company was no longer involved in human rights violations.

“We know there are legacy issues but we promise you to resolve some of the outstanding issues. Our company is not yet financially strong like ZCDC (Zimbabwe Consolidated Diamond Company). We are still trying to make things work but definitely, we will attend to community issues,” Mhlanga concluded.

He promised to engage his Chinese counterparts on the issue of respecting local cultures and observing human rights.

Illegal mining Increase GBV and Child pregnancy in Esigodini

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Illegal mining Increase GBV and Child pregnancy in Esigodini

Illegal mining activities in Matebeleland South’s Esigodini area have led to increased Gender-Based Violence, GBV cases as well as child pregnancy.

Vongai Mbara

Bulawayo based Women Institute for leadership, WILD had a meeting with Esigodini residents where these issues were raised.

“The purpose of the meeting was to educate Habane (township) residents on GBV and how as citizens we can mitigate against this pandemic.” WILD communications officer, Bridget Ndlovu said.

“Over the years, residents in Habane have been sharing that there is a rise in GBV with many young girls becoming victims of GBV.

“We thought it is necessary that we engage residents and try to raise awareness on this important issue, particularly for women and men. We invited men because it is important to have them so that we can eradicate this GBV.”

Habane councillor, Patson Sibanda said GBV cases were not being properly handled in Esidodini due to the pandemic.

“Some of the cases were not effectively attended to but as the lockdown is easing up, some of these cases are now being taken care of and referred to the police,” Sibanda said.

“The most serious issue is the girl child and this lockdown has given them free time to roam around and some of them have been impregnated. We are emphasizing parents not to shun those little girls that are pregnant, they should go to school as it is their right.

Sibanda said residents were worried that artisanal miners were being linked to these GBV cases and exploitation.

“These illegal miners have money and they are manipulating young girls. There is also the issue of overcrowding in houses due to the influx of these illegal miners,” he said.

Esigodini Residents Association chairperson Gift Ndleya said many schoolgirls were being impregnated by illegal miners.

“Esigodini is a place where there is money due to mining activities,” Ndleya said.

“If only government can help us, we are not saying we do not want outsiders but what is happening here is out of hand.

“Our children are being abused and this affects their future. Many of these children are now pregnant or are now someone’s wife at a young age. Children should not be made to work as breadwinners when parents are there. They have to go to school. Parents should also educate their children on issues of GBV.”

Plan International Zimbabwe representative Faithful Mangena said some parents were concealing their children’s pregnancies.

“Some parents do not care about the future of their children. When the perpetrator is a relative, most of these cases are being hidden.

“Families wanting to protect their family names, hide those issues and that affects the confidence of girls at school. Parents also fail to educate their children on reproductive health and rights.

Mining corporations must invest in community development

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Mining corporations must invest in community development

Marange community is urging mining corporations to make them beneficiaries of the minerals they extract from their land.

By Shantel Chisango

A resident of the Marange community, Billian Matambo, stressed the necessity of being made benefactors of mineral extraction, saying that infrastructural development by mining companies is vital.

“We need permanent structures built by mining companies that are mining from our community,” said Matambo.

He further went on to emphasise the importance of community development by mining companies saying diamonds are non-renewable hence the need to develop vicinities while exploring minerals.

Adding on, Matambo said that diamonds are non-renewable minerals, that is why communities are urging companies to develop their land.

“Modern schools, better roads, bridges, and modern hospitals must be established so that when the mining companies are gone, we can have something tangible that will be of benefit to us,” he added.

Mining companies continue to enter remote communities to search for exploitable mineral reserves and most of these frontier locations are home to indigenous, poor and vulnerable people.

Sarin (2006) says mining may have the potential to have positive development impacts, but companies can inadvertently or carelessly exacerbate an already poor situation for some community members, particularly those with the least resources.

Adding to people’s vulnerability is the fact that the legal frameworks of many mining frontiers fail to adequately protect civil rights or are ineffective, corrupt or not trusted.

The International Council on Mining and Metals (ICMM),  concludes that governance weakness, particularly at the sub-national level, is the main factor limiting positive development impacts from mining companies, (McPhail, 2008).

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