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VI holdings GDI Exit: Time to remodel the Darwendale Platinum project

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In light of VI holdings’ exit from the Great Dyke Investments, there is a need to remodel the project technically and financially and to look for partners in the European and eastern bloc with the financial muscle to back the project to fruition, an expert has said.

Prince Sunduzani

Russia’s Vi Holdings exited from Great Dyke Investments, leaving the future of what is supposed to be Zimbabwe’s biggest platinum project at risk.

According to reports, the state mining vehicle, Kuvimba Mining House Ltd, is taking over the 50% shareholding in a platinum project owned by Russia’s Vi Holding NV and plans to make further mining acquisitions.

The exit of Vi Holding from Darwendale Platinum, which would cost about $3 billion to develop and become Zimbabwe’s biggest platinum mine, brings to an end 16-years of Russian involvement in the project.

According to Mining expert and former Chairperson of the Institute Of Mining Research at the University of Zimbabwe Professor Lyman Mlambo, the exit of Vi Holdings from GDI implies further financial woes for GDI and there is a need for a pragmatic solution to the project which will include scaling the project to manage costs.

He said the leaving of  VI holdings might affect the USD3 billion platinum sector contribution to the USD12 billion mining industry target by 2023 as it is anchored on big projects such as GDI and others like Karo Resources.

“Obviously GDI will have to be remodelled both technically (mining and processing methods) and financially so that the costs for development, mining, processing and other costs including logistics and marketing become lower. That would also mean scaling down the whole project. GDI was expected to reach full throttle in 2023 (according to the original plan) at which point its operations would result in almost doubling the whole platinum sector’s production and employment levels as it intends to produce more than 800,000 ounces and employ about 8,000 people. This is obviously no longer possible as it stands, and targets and deadlines are going to be further missed,” he said.

Professor Mlambo noted the need to fill the financial gap as Kuvimba might not have the financial muscle to back a project of such magnitude.

GDI had planned to mine the first ore in 2021 and at its peak produce 860 000 ounces of platinum. This would have made it the biggest mining venture in Zimbabwe.

It missed a series of fundraising deadlines, and the collapse of funding proposals under sanctions on Russia put on a lid on the project.

In 2020, GDI announced that the African Export-Import Bank (Afreximbank), the lead arranger for project funding, had completed due diligence on the project, allowing the company to start raising capital.

“I think we need to seriously market the project to other countries in the eastern bloc and some European countries that have warmed up to Zimbabwe in the hope of getting another big partner. The funding gap needs to be filled and as I said, Kuvimba or any local investor cannot do that. It could help if the project could also be made transparent in terms of the beneficial owners, the original terms of the agreement, etc in order to allay fears which have repelled the interest of big close companies such as Implats (in SA) in the past,” Mlambo concluded.

Small scale miners could lean on big scale miners

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THE Zimbabwe Miners Federation (ZMF) says cooperation between large and small-scale miners will go a long way in boosting output and the mining industry’s overall contribution to the economy.

The mining industry is one of the major economic centerpieces expected to drive the country towards an upper middle income economy status by 2030.

It is against this background that the Government envisions a US$12 billion mining industry by next year buoyed by minerals such as gold, platinum, diamond, chrome ferrochrome, chrome and lithium.

Last year, the mining industry earned the country US$5,2 billion up from US$2,7 billion in 2017 and the figure this year is projected to reach US$8 billion.

Addressing delegates at the just ended Chamber of Mines of Zimbabwe (CoMZ) annual conference in Victoria Falls, ZMF president Ms Henrietta Rushwaya whose organisation represents the interest of artisanal and small-scale miners said: “In many parts of the world, artisanal and small-scale miners (ASM), and large scale miners (LSM) operate in neighbouring concessions and sometimes on the same.

“ASM activities are increasingly in contact with LSM operations, making the probability for conflict— as well as the potential opportunity for cooperation between the two—greater than ever before.”

Responding to questions from this paper following her presentation at the CoMZ conference, Ms Rushwaya said their relationship with LSM was cordial, adding that ASM have a lot to learn from the primary producer.

“Cooperation between the two entities will go a long way in ensuring that the sector increases from the current 3,4 percent growth and will also go beyond the US$5,2 billion mineral exports which make 83 percent of the country’s total national exports.

“We have a lot to learn from the LSM especially when it comes to corporate governance, skills transfer, health and safety just to mention a few,” she said.

“We need to enter into tribute agreements with tittle holders in order to mine at their designated claims; we also need to tap into their experience and expertise when it comes to health and safety and this is only achieved through identification and minimisation of hazards that include environmental and equipment based factors.”

Of late, some miners affiliated to ZMF lost their lives following an accident at a mine in Gwanda, Matabeleland South province.

“Recently, we had an accident which claimed seven lives at Rany mine and the Duration Gold Mine (Vumbachikwe) highly skilled Proto Team risked their lives by going down 240 metres to recover the bodies.

“Such efforts are applaudable and show a sense of unity of purpose. As part of formalization the LSM will also train our ASM members on various mining aspects as part of skills transfer.

At the CoMZ conference, the ZMF president highlighted that the major challenges hindering sustainable mining activities by artisanal and small-scale miners include lack of financial and technical resources.

She said ASM find it difficult to meet the criteria for loan facility or overdrafts adding that players in the sector were also constrained by lack of formalisation.

And this limited ASM potential to effectively participate in the mainstream economy. Other setbacks are to do with lack of geological information, marketing barriers, unskilled labour force and the use of rudimentary tools.

As part of ZMF’s strategy to uplift artisanal and small-scale miners, Ms Rushwaya said her federation was going ahead with strategic partnerships with local and foreign investors as well as creating a Special Purpose Vehicle to run with ASM projects.

In April this year, ZMF, which is a non-profit-making organisation, announced the establishment of an independent company, FS Mining (Pvt) Ltd, to run and manage its projects.

FS Mining, which is a Special Purpose Vehicle, will be running and managing ZMF projects particularly in relation to issues to do with investment protection and funding programmes for small-scale miners.

The small-scale mining industry has been recognized by the Government as a critical sector that was contributing significantly to the development of the economy.

Last year, Zimbabwe’s total gold deliveries reached 29,6 tonnes from which over 18 tonnes was the contribution by players in the small-scale mining industry.

 

Business Weekly

Coal supply under threat amid viability challenges

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As Zimbabwe prepares to commission two electricity generators at the Hwange thermal plant in the next few months, concerns have been raised over the capacity of coal producers to adequately meet demand in light of unviable coal prices.

The first unit is expected to be commissioned in November this year, six months after the initial target as COVID-19 induced disruptions delayed the delivery of some of the equipment. The second will come on line during the first quarter of 2023.

The two units, with a combined production capacity of 600 megawatts (MW), almost 65 percent of the existing capacity are expected to significantly reduce power rationing.

Zimbabwe contracted China’s Sino Hydro to build two more units at Hwange for US$1,4 billion.

The coming on-stream of the new units will push demand for coal up with analysts and industry players raising concerns over the capacity of miners to produce enough.

The price of coal is currently pegged at US$29 per tonne and is paid in local currency using the interbank rate. With most production inputs, such as explosives, fuels, and consumables being paid in US dollars, the price has become unviable.

“The issue of the viability of the coal producers is critical otherwise we will end up having the idle capacity (of the power plant),” said a senior executive of a coal mining company, who declined to be named because is not allowed to talk to the press.

“Most of our expenses are in US dollars, fuels, consumables, and now labour but we are paid in local currency at the interbank rate, which is significantly lower than the widely used parallel market exchange rate. We have the capacity but with the current pricing structure, that capacity will be not fully realized,” the executive added.

Hwange power plant consumes about 90 percent of locally produced coal. Makomo Resources, Hwange Colliery Company Ltd (HCCL) and Zambezi Gas are major suppliers of coal to the power plant. Apart from Zambezi Gas, Makomo, currently under judicial management and HCCL have of late been facing operational challenges

In 2020, Government set aside an agreement requiring ZESA to pay half of the coal supplies in foreign currency. The power utility and coal miners had agreed that 50 percent of coal be paid in foreign currency to support the miners, which needed hard currency to sustain operations in light of forex shortages that were prevailing at the time.

ZESA is being paid in foreign currency by some exporters, particularly mining companies and the deal entailed coal miners be partly paid in forex to support operations.

This relates to continuous recapitalization and procurement of spares, fuel, and consumables.

“ZESA is paying foreign currency to import power but it can’t pay local coal producers viable prices,” Carlos Tadya, an analyst with a local research firm said. “The authorities should start dealing with the price issue so that we can fully realize the impact of the new units.”

Energy and Power Development permanent secretary Engineer Gloria Magombo did not immediately respond to messages seeking comment on Tuesday.

 

Business weekly

COMMENT: Kamandama sad chapter must never be forgotten

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Following the worst mine disaster in the country’s history, 50 years ago, Hwange Colliery Company (HCC) has remained true to its “reputation repair strategies” which include compensation and commemorations held to honour the miners on June 6 every year.

As scholar Steven Van Hook said in a 2010 publication, a crisis can be turned into an opportunity for good public relations.

A total of 427 miners died following a series of underground gas explosions while in a 5kmtunnel shaft at the then Wankie Colliery’s Number 2 shaft known as Kamandama.

It is a disaster that is difficult to forget.

However, 50 years is a very long time. Companies can easily forget or lose the historical significance of post crisis management.

The Kamandama Mine disaster commemorations held on Monday proved that while HCC has been holding commemorations consistently, the company according to widows “only remembers us once a year”.

Speaking to our news crew, Ms Senzeni Phiri, who lost her husband when her son, Mr Tapedza Makava was only two years old, said: “Before this day, we did not get anything, the company just gave us money every June, the last amount was $20 000.

“Other things we get once in a while include pots, plates and cups.”

Mr Makava added: “I struggled with my education because my mother wasn’t employed. In fact, I was a beneficiary of the Kamandama Mine disaster until the age 18 years after which my mother had to struggle with my education.”

Mr Hilton Papenfus, whose father was a manager at HCC when the explosions killed him, said: “I came here with my wife Gillian, my sister who was 12 years when the incident struck and my son.

We come all the way from South Africa to remember my father.

It is a way of reconnecting with my father and making sure we do not forget him.

Let us continue doing this so that future generations do not forget.”

These are real victims of the Kamandama Mine disaster.

For 50 years, they have carried the wounds of losing bread winners.

They have had to eat, sleep, dress, go to school and access medical care without their fathers and husbands.

Their cry for monthly allowances or increase in the annual payment is not unreasonable.

These widows must be remembered everyday and not for only one day.

Because the crisis is national, Government can assist where it can.

For example, the widows can get farms.

Indeed, HCC has done well to continue with commemorations for 50 years.

We must never forget Kamandama!

Zimbabwe’s story is incomplete without mention of this sad chapter in our history.

 

The Chronicle

Russian investor quits Darwendale platinum project as Ukraine sanctions end funding push

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Russia’s Vi Holdings says it has exited from Great Dyke Investments (GDI), leaving the futute of what is supposed to be Zimbabwe’s biggest platinum project at risk.

Vi Holdings is ceding its 47.8% stake to its local partners, Kuvimba Mining House and Fossil, according to Vi Holdings representative Igor Higer.

In a statement, GDI said its decision to exit the project is “in connection with the global sanctions of Western countries against Russia, which naturally also applies to Russian investments abroad”. Leaving GDI would “create favourable conditions for further development of the project”, the company said.

Russia’s involvement in Ukraine had made GDI’s already tough fundraising mission impossible.

GDI had planned to mine the first ore in 2021 and at its peak produce 860,000 ounces of platinum. This would have made it the biggest mining venture in Zimbabwe.

However, GDI saw a series of missed fundraising deadlines, and the collapse of funding proposals under sanctions on Russia put on a lid on the project.

In 2020, GDI announced that the African Export-Import Bank (Afreximbank), the lead arranger for project funding, had completed due diligence on the project, allowing the company to start raising capital.

But GDI Chief Executive Officer Alex Ivanov said coronavirus delayed project fundraising, which was originally due to be completed in 2021. Financing of a US$665 million first phase development was pushed to the first quarter of 2021.

In December 2020, in a bid to raise capital, GDI sold a 4.4% stake for US$30 million to Fossil Mines as COVID-19 disrupted fundraising.

That sale valued GDI at US$680 million.

Vi Holding, owned by Russia’s Vitaliy Machitskiy, has had to carry the burden of exploration alone, spending US$100 million on pre-development.

Needing funding, GDI reportedly tried to sell the project to Implats, which runs Zimplats. But Implats turned down the offer over concerns about the ownership of GDI, especially the involvement of Kuvimba.

Sanctions on Russian businesses over Ukraine made GDI’s efforts to raise capital even harder. Russian companies are no longer able to raise capital in London or New York, making Afreximbank’s task virtually impossible.

Signs that funding was hard to get showed as work stalled at the site, and the company started to seek out cheaper ways to develop the mine.

Kuvimba CEO Simba Chinyemba recently said the strategy for the project has had to change.

“The original project was modelled on the possibility of underground mining,” Chinyemba said.  “After further exploration and analysis common to projects such as this, it is now believed that the orebody may be more amenable to an open-pit project. GDI is thus remodelling the whole Darwendale project in order to take this into account.”

Russia sanctions: local impact

The failure of GDI is a major knock for Zimbabwe, which has placed mining at the centre of efforts to end the economic crisis.

Sanctions on Russia, which also ban Russian companies and businesspeople from moving money through UK banks, may also affect investment plans by Alrosa. The world’s biggest diamond company is currently exploring diamonds in Zimbabwe.

Alrosa signed an agreement in 2019 with the state-owned Zimbabwe Consolidated Diamond Company (ZCDC) to jointly explore for diamonds in Zimbabwe. It has 35 prospecting special grants. It is now also under US sanctions.

Alrosa plans to invest at least US$9 million each year in greenfield exploration and assessing the diamond content of any kimberlite pipes that are discovered.

Zarubezhgeologiya, the operation of the international projects of Russian state company Rosgeo, might be brought in to work on the geological mapping of Zimbabwe.

 

Newzwire

Govt moves to plug mineral smuggling

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GOVERNMENT has set up an inter-ministerial team to oversee the improvement of security systems at ports of entry to curb mineral smuggling, Mines and Mining Development deputy minister Polite Kambamura has said.

A 2019 report by the International Crisis Group estimated that the country was losing around US$1,5 billion a year through the smuggling of gold, mainly to Dubai and other countries.

Black market sales of minerals are currently rife because Reserve Bank of Zimbabwe (RBZ) prices are lower than those being offered by illegal foreign dealers.

“The issue of mineral smuggling is one other area that the ministry is working on together with other government ministries and departments. An inter-ministerial team was set up to see that we plug all our ports of exit and entrance so that we improve security systems at those ports and also curb or minimise mineral leakages.

“Government is also working together with miners to improve mineral prices in the gold sector. I think you may be aware that government put a plethora of incentives to the sector to encourage the miners to deliver their gold to government and we have seen this move bearing results as evidenced by the increase of gold deliveries to Fidelity gold refineries from late last year to early this year,” Kambamura said.

In his 2022 national budget statement, Finance minister Mthuli Ncube said the country would ensure the US$12 billion mining industry was achieved by 2023.

The US$12 billion mining industry represents a 344% increase from the US$2,7 billion registered in 2017. The growth of a multi-billion-dollar industry will be driven by gold, platinum, diamond, chrome, iron ore, coal, lithium, and other strategic minerals.

Gold exports are expected to reach US$4 billion while platinum exports are seen at US$3 billion. Diamonds are expected to generate US$1 billion while chrome, nickel, and steel will also realise US$1 billion.

In support of this, a total of $3 billion was allocated to the Mines ministry for the implementation of the sector’s programmes and activities such as the amendment of the Mines and Minerals Act and operationalisation of the Cadastre System, among
others.

Kambamura also said government had put in place mechanisms to ensure that proceeds from the mining sector benefited the nation.

“Minerals that we sell all go through government departments, for example, all other minerals except gold are marketed and sold through the Minerals and Marketing Corporation of Zimbabwe (MMCZ) and this is where we manage all the revenue, this is where government gets its royalties to the Ministry of Finance through MMCZ and for gold we sell through fidelity that is RBZ and to this effect the royalties from all mining operations are then channelled to the fiscus and budgeted or put into the mainstream of the economy.”

He added: “So this is one other way that government is doing to make sure that proceeds from the mining sector benefit all citizens. Projects that will be done under government using these monies will benefit everyone. There is an issue of community share ownership schemes or corporate social responsibility where government urges all mining companies to do community projects for the benefit of locals and other Zimbabweans at large. So, people or citizens, Zimbabweans, should benefit from what government is doing to see that all mining revenue is put back into the
economy.”

 

Newsday

Power imports gobble US$1,2bn+in 10 years…a case for supporting local IPPs

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ZIMBABWE has paid an excess of US$1,2 billion towards power imports in the last 10 years amid calls by the power utility, Zesa, for Government to consider channelling these resources to facilitate the offtake of new energy projects by local Independent Power Producers (IPPS).

While IPPs play a progressive role in boosting electricity supplies in many countries, Energy and Power Development Minister, Soda Zhemu, is on record saying in Zimbabwe most of the planned IPPs investments have failed to take off due to funding constraints as players fail to get suitors.

Since 2010, the Zimbabwe Energy Regulatory Authority (Zera) has licensed over 70 IPPs to establish electricity generation plants across the country, with estimated output of over 6 000MW combined.

However, a few small projects are operational and only producing little at a time the country is experiencing serious electricity deficit.

In the absence of IPPs, Zimbabwe’s power generation is currently at 1 300MW, mainly from the Zimbabwe Power Company (ZPC), which is the major producer, with demand hovering at average 1 750MW, according to official statistics.

The service gap has resulted in continued power cuts, which industry leaders partly blame for frustrating production amid costly imports from regional producers, which drain scarce forex resources from the economy.

The power imports are mainly sourced from regional state-owned utilities and IPPs.

“In the past 10 years alone, we have paid excess of US$1,2 billion in power imports and last year we used up to US$224 million,” Zesa internal consultant responsible for international business, Engineer Cletus Nyachowe, said in an interview.

“As Zesa we have been saying these power imports are not only coming from utilities in the region but particularly from IPPS in other countries.

“Our argument is that why can’t we channel these resources to our own local IPPs? And if we can do that to our own producers, there will be huge impact as they would generate and supply power locally.”

Eng Nyachowe, who represented Zesa executive chairman, Dr Sydney Gata, during last week’s Chamber of Mines of Zimbabwe Conference in Victoria Falls, earlier told delegates that the successful growth of the IPPs sector requires policy fine-tuning, which the Government has pledged to address.

“Under NDS1 (National Development Strategy) IPPs are expected to generate 500MW by 2025 and the Government is looking into this to give investors assurance.

“Most of these IPPs have signed power purchase agreements with the ZEDTC (Zimbabwe Electricity Distribution and Transmission Company) in US-dollars but the actual payments are in RTGS terms at the prevailing exchange rate,” said Dr Nyachowe.

“This has become a major challenge as to why these projects are not taking off and the Government is addressing that.

We appeal to the Government to speed up this policy issue on this matter so as to unlock wider potential from the IPPs.”

The engineer said the full-scale operations of IPPs would not only help ease power supply burden from Zesa, but impact positively on the regionally starved grid.

He said the power utility also stands to benefit more from such projects as the sole provider of transmission infrastructure.

In line with Vision 2030, Government has mandated IPPS to contribute close to 40 percent of the targeted 11 500MW that the country needs in order to attain an upper middle-income economy status where electricity, among other services, should be readily available and accessible to all citizens.

Meanwhile, the Government has outlined a comprehensive roadmap to tame power generation/supply deficit so as to bolster efficient industry operations as well as facilitating speedy connection of 305 000 backlog of domestic customers.

The measures include life extension and rehabilitation of ageing thermal plants, speeding up completion of the 600MW Hwange Units 7 and 8 expansion and securing more imports as a stopgap solution.

 

The Chronicle

Fossil Mines wins race to take over Lafarge Cement

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Holcim is selling its Zimbabwe unit Lafarge to Fossil Mines, as part of its global asset sale.

Fossil Mining is run by Obey Chimuka, a long-time associate of businessman Kuda Tagwirei, and is part of a group that has recently won a string of government infrastructure contracts.

“Further to the cautionary announcement dated 31 May 2022, shareholders and members of the investing public are advised that Associated International Cement Limited, a member of the Holcim group, has entered into a binding agreement for the sale of its 76.45% stake in Lafarge Cement Zimbabwe Limited to Fossil Mines (Private) Limited,” Lafarge said in notice.

Fossil beat off interest from other bidders, among them Huaxin, the Chinese cement company that had looked like a favourite for the stake after it recently bought Lafarge’s business units in Malawi and Zambia.

Apart from selling off some of its assets in Southern Africa, Holcim has recently also sold part of its Ghana business and disposed of its Brazil unit for US$1 billion.

Lafarge did not give details on the value of the Fossil deal.

Taking over Lafarge is a major coup for Fossil Mining, which has no track record in manufacturing.

Last year, Fossil bought a 4.4% stake in Great Dyke Investments for US$30 million, partnering with Kuvimba Mining House and Russia’s Vi Holdings in the platinum venture. The Russian company has now ceded its stake to Kuvimba.

Fossil Contracting is one of five contractors working on the Beitbridge Highway, and is part of a consortium that was awarded a contract to build the Mbudzi interchange in Harare.

Concrete mix

Lafarge has had mixed fortunes over the past year.

Rising demand for construction saw Lafarge lay out a US$25 million expansion. But the company also faced rising costs, while a roof collapse at its factory stopped cement production between October and February.

This led to what the company reported recently were “significant liquidity challenges that hindered (Lafarge) from fully meeting its cash obligations” and caused “unplanned downtime and, in some cases, the shortage of materials to keep the plant running”.

Last April, Lafarge commissioned a new US$2.8m dry mortar plant, which increased output of dry mortar products – such as adhesives and agricultural lime – from just 7,000 tonnes per year to 100,000 tonnes annually, equal to national demand.

The company is close to commissioning a new Vertical Cement Mill plant, which will more than double Lafarge’s annual cement milling capacity to one million tonnes.

 

Newzwire

ZIF seeks mines partnership to trim imports

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PLAYERS in the metal foundries sector are keen to work closely with the mining industry to enhance production and help the economy to substitute imports through domestic supplies.

Given that the mining sector is among the top importers of finished industrial engineering products and metal components, the Zimbabwe Institute of Foundries (ZIF) says it is ready to work with local companies to scale up local supplies to meet the needs of the extractive sector.

ZIF president, Mr Itai Zaba, said mines were largely sourcing their metal casting materials from abroad and yet these could be made by local foundries.

“It’s important for the Chamber of Mines and the ZIF to have discourse on these and agree on a programme for import substitution,” he said.

Mr Zaba said the foundry industry has been experiencing shortage of raw material amid high production costs, which has tended to push the sector’s price competitiveness downwards.

With limited capacity, local foundry players end up failing to meet demand from the market resulting in some operators seeking imports from other countries.

ZIF has been lobbying the Government to ban the export of scrap metal saying this was a major source of their raw material since the demise of the giant metal producer, the Zimbabwe Iron and Steel Company (Zisco) in 2008.

Mr Zaba said the mining sector produces a lot of scrap metal during maintenance works hence the need to seal a working partnership to facilitate channelling of scrap metal from mines to local foundries.

He said this will assist in revitalising the local metal foundry value chain.

“This scrap, through the tender system at the mines, ends up with middlemen merchandisers who then either resell it to the foundry industry at extremely high prices or export it,” said Mr Zaba.

“A relationship between the Chamber of Mines and ZIF will enable access to reasonably priced scrap and this will reduce pressure on the foundries charging high prices.”

Mr Zaba said the metal foundry sector’s production could increase capacity utilisation faster if supplied with adequate stocks of scrap metal.

“Zimbabwe will also benefit because the enhanced capacity utilisation and competitive pricing will be exploited for increased exports, thus helping to generate increased forex inflows,” he said.

“The forex expenditure reduction effect of import substitution, will also add on to the effect of increased generation through more exports.”

In its resolutions for 2022, ZIF said it was targeting to increase capacity utilisation from 40 percent in 2021 to at least 80 percent.

 

The Chronicle

50 years on: Kamandama Mine disaster victims remembered

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SOUTH Africa-based Mr Hilton Papenfus whose father was a manager at Hwange Colliery Company when a string of underground gas explosions killed 427 miners, his parent included, was in the mining town yesterday on a day of remembrance.

They died in a 5km-tunnel shaft at the then Wankie Colliery’s Number 2 shaft known as Kamandama.

Yesterday marked exactly 50 years since the Kamandama Mine disaster.

It remains the worst mine disaster in the country’s history and every June 6, commemorations are held to honour the miners.

Mines and Mining Development Minister Winston Chitando, Matabeleland North Provincial Affairs and Devolution Minister Richard Moyo, mine workers, local chiefs and security officers also attended the meeting.

Mr Papenfus told Chronicle that his father died at the age of 40 and he received the sad news
when he was at Plumtree High School doing Form One. “I came here with my wife Gillian, my sister who was 12 years when the incident struck and my son.

We came all the way from South Africa to remember my father.

It is a way of reconnecting with my father and making sure we do not forget him.

Let us continue doing this so that future generations do not forget,” he said.
Mr Papenfus said this has to be a legacy for the mining industry.

“We were lucky in that our mother was employed otherwise we were not going to survive.

We never received any cash injection from the company,” said Mr Papenfus.

Speaking during the commemorations, Minister Chitando said Government has come up with a raft of mining initiatives which are supposed to be followed by all mining companies to avert disasters.

Mines and Mining Development Minister Winston Chitando

“Responsible mining initiatives mean all mining activities should conform to the laws of the country.

In observing the laws of the country, this also includes observing responsible mining, which entails observance of the highest standards of safety,” he said.

“We want to ensure that we do not have any mining disasters in our mining activities and good environmental practices in the extraction of all minerals.”

Minister Chitando said the initiative also demanded observance of migration laws, paying taxes, production through recognized channels, and ensuring paying workers according to the stipulated rates set by the National Employment Council.

He said the safety initiatives should be extended to all other sub sectors in the mining sector.

Minister Chitando lauded Hwange Colliery Company for maintaining high safety standards in mining through investing in advanced technology.

“Hwange Colliery Company has implemented a lot of world class safety standards which they should continue to improve.

Since the Kamandama Mine disaster, the company has since re-examined the way it operates by making sure that particular attention is made on safety,” he said.

Minister Chitando said the coal mining sector plays a critical role in the development of the country.

“His Excellency, President Mnangagwa came up with the 2030 vision to ensure that Zimbabwe becomes an upper-middle income economy and this entails various sectors contributing towards this vision.

Zimbabwe is on course to achieve the US$12 billion mining industry target by 2023 from a base of US$2,7 billion in 2018,” he said.

“At the base of the onset of the US$12 billion, coke which was being produced in the country was about 280 000 tonnes per annum tonnes and now we are producing 2 million tonnes per annum.

This is premised on the new power stations coming in at Hwange Power Station including additional power stations to be established in the Hwange and Binga areas.”

Hwange Colliery Company administrator Engineer Dale Sibanda said the mine has committed itself towards improving the safety of miners through investing in technology that meets international standards.

“Hwange Colliery Company is in a position to monitor its mine safety procedures as a way to mitigate any disasters that may occur.

Since the disaster, the company has been investing in advanced technology to ensure that the utmost safety standards are adhered to,” he said.

“We have since abandoned the drill and blast method of underground mining for secure equipment such as the continuous miner.

We also observe high standards of safety during underground operations such as disallowing the use of contraband or use match sticks.”

During the commemorations, widows who were clad in tailor-made attire emblazoned with Hwange Colliery Company logos, released white balloons into the air, symbolising their departed loved ones.

In interviews, the widows said the company only remembers them during the annual commemorations.

Other things we get once in a while include pots, plates and cups,” said Ms Senzeni Phiri.

Ms Phiri, who lost her husband when her son, Mr Tapedza Makava was only two years old, said her wish was for the company to either give them monthly allowances or increase the annual payment figure.

Mr Makava said he only learnt that his father was a victim of the disaster when was in Grade Four.

He appealed to the coal mining company to increase his mother’s allowances

“I struggled with my education because my mother wasn’t employed.

In fact, I was a beneficiary of the Kamandama Mine disaster until the age 18 years after which my mother had to struggle with my education,” he said.

 

The Chronicle