Mining ZimbabweLatest Mining News, Policy and Industry Updates

The government has issued a six-month ultimatum to all granite mining companies to come up with a beneficiation plan or risk losing their trading licences.

There are several mining companies extracting granite in Mutoko district in Mashonaland East and Mt Darwin district in Mashonaland Central Province.

The mining companies, however, are exporting granite in its raw form.

Minerals Marketing Corporation of Zimbabwe (MMCZ) general manager, Tongai Muzenda told Business Times that granite miners were seized with the matter as they scramble to save their operations as the government is seriously considering banning exports of unbeneficiated granite.

It is understood that the Presidium has since instructed the Ministry of Industry and Commerce to work on regulations banning exports of unprocessed granite.

Muzenda said MMCZ was also exerting pressure on granite miners to beneficiate their product before exporting as the government’s minerals marketing arm targets maximum foreign currency earnings from granite sales.

“Each and every producer must come up with a beneficiation plan. Most of them have already provided plans. Some are still looking for funding while others have already secured the required funds to set up beneficiation facilities,” Muzenda said.

He added: “Some are complaining that they are failing to secure land to set up the facilities. Government has come in and informed us that they will stop issuing licences on raw export of granite. All of them were given a six months ultimatum to come up with a plan.”

Granite contributes about 1.6% of Zimbabwe’s total exports.

According to official data obtained from MMCZ, 98% of the mined granite is exported to Italy, South Africa, Germany, Spain, United Kingdom, China, Japan, Malaysia, Singapore, Argentina, the United States, and Canada

In general, a 1-square-meter (10.8-square-foot) slab of raw granite that is 8 millimetres thick (31 inches) sells for US$50 to US$60. It is usually more expensive to buy black granite that is processed and polished in Zimbabwe than to buy slabs that are processed and polished elsewhere because the equipment used elsewhere is more efficient, according to experts.

In 2018, Finance and Economic Development Minister Mthuli Ncube instituted a 5% tax on the sale of all raw granite, to encourage local beneficiation and value addition.

However, some buyers are said to be wary of black granite that comes in any form that is not raw as some sellers have a tendency of using artificial hardeners which leads to cracking of the stone over time.

According to the Global Press Journal, mostly Mutoko granite was used in the construction of the US$82m Royal Danish Library in Copenhagen, Denmark, which measures 21 500m2.

The stone was reportedly supplied by an Italian company at a cost of US$9.12m in 2009 but the local authority got less than US$45 000 in tax royalties.

Business Times

The Government is crafting a strategy to improve gemstones production in the country as Zimbabwe seeks to benefit more from its mineral resources, a Cabinet minister has said.

“In July, we will be laying out a gemstones development plan expected to improve gemstones production in Zimbabwe,” Mines and Mining Development Minister, Winston Chitando.

Sandawana Mine in Mberengwa District, Midlands Province, used to be a big producer of gemstones such as emeralds in Zimbabwe but ceased operations in 2012.

It is estimated that there are also about 36 semi-precious minerals that include goshenite, alexandrite, chrysoberyl, iolite, emeralds and tourmaline, which are largely found in Karoi, Hurungwe, Mutoko, Mt Darwin, Zvishavane, Mutare, Rusape, and Odzi.

Analysts say the minerals could significantly help heal the frail economy, if harnessed productively.

The Government through the Minerals Marketing Corporation (MMCZ) has since liberalised gemstones trading by allowing individuals and corporates to participate in the buying and selling of the semi-precious stones as agents of the MMCZ.

A legal framework to empower small-scale miners to extract and trade in semi-precious gemstones was put in place in 2019, a move meant to boost the gemstones output.

However,  MMCZ  general manager, Tongai Muzenda, in December last year, expressed disquiet following revelations that  international buyers and local players  established a cartel which was conniving to bleed the government of millions of dollars.

Muzenda said there was rampant theft and illegal export of the country’s gemstones.

Consequently, the smuggling has jolted the government into action.

There are now plans to regulate the sector by issuing licenses to firms and small-scale buyers for purchasing gemstones.

Muzenda said the value of the country’s gemstone resources is estimated to be valued at US$20bn and the gemstones have the capability to overtake diamonds in revenue generation, if proper management was put in place.

MMCZ noted that some firms and individuals were mining and trading the gemstones without going through the normal processes that will ensure the country benefits.

MMCZ has now invited individuals and corporates to be considered as MMCZ sub-agents.

“Interested Zimbabwean citizens (individuals and corporates) are invited to submit expression of interest to be considered and licenced as MMCZ sub-agents to purchase coloured gemstones around the country and selling same through the corporation as per MMCZ Act, Chapter 21:04,” MMCZ said in a notice this week.

Business Times

POLICE in Chinhoyi have arrested two men for allegedly beating to death, a suspected gold panner early Tuesday morning.

Mashonaland West police spokesperson, Inspector Margaret Chitove confirmed  the death of John Fundo (25) of 2011 Destiny suburb, Chinhoyi.

Said Chitove; “On 15 June at around 0630 hours, residents of Ruvimbo Phase 2 discovered a man who was having difficulty in breathing in an unfinished house at Stand Number 9378 Ruvimbo Phase 2.

“An informant contacted Chemagamba police and together with CID (Criminal Investigations Department) officers attended the scene and found the man already dead.”

The now deceased had three deep wounds on the head and bruises all over his body.

Police then carried out preliminary investigations in the area, which established that at around 3 am the same morning, four men, including the arrested pair of Mashove and Matoro, who all reside at 8526 Ruvimbo Phase 1, were seen bashing the now deceased.

The motive of the murder remains unclear with some sources claiming Fundo was killed by his colleagues in a row over proceeds from illegal gold mining activities.

A manhunt has since been launched to account for the other two murder suspects whose identities were not released.

Police appealed to the public to observe the sanctity of life and desist from meting out instant justice on suspected criminals, but to hand them over to law enforcement agents for the law to take its course.

“We continue to urge members of the public to value human life and not to take the law into their own hands as they will end up committing crimes themselves,” said Chitove.

NewZimbabwe

Chinese investment in Africa has helped spark economic growth and improve social outcomes across the continent. Yet Chinese projects often seem to go hand-in-hand with civil protests. We wanted to find out whether these were isolated incidents or signalled broader discontent among the population.

In new research, we show that regions hosting Chinese-led projects are more likely to experience protests.

China’s financial involvement on the continent has grown dramatically since the launch of the forum on China-Africa co-operation (Focac) in 2000 and the China-Africa development fund in 2006. Today, China is Africa’s largest trading partner. China also spent an estimated US$350 billion (£250 million) on development programmes on the continent between 2000 and 2014 (the most recent data), on a par with what the US spent in the same period.

The social, economic and political implications of this vast investment are subject to much controversy. Western countries are critical of China’s attempt to gain “soft power” (gaining economic and cultural power without coercion) on the continent, saying it might undermine good governance and human rights. But what do African citizens think about China’s impact on their lives?

Don’t let yourself be misled. Understand issues with help from experts.

It is easy to find evidence of protests against Chinese projects and investments.

In the Kenyan archipelago of Lamu, for instance, residents and local businesses recently managed to block a proposed Chinese coal power plant, which they said would hurt the local tourism industry.

People in the Gambia have protested against Chinese fish factories, which have drained waste into nearby wildlife reserves, hurting the local fish industry and the environment.

In 2012, Zambian workers protested against low pay and hazardous working conditions at Chinese-run mines and even killed a Chinese manager.

Of course, these are just a few examples from across a huge continent — we wanted to explore whether there is a systematic link between Chinese projects and civil protests.

To do this, we used a global database on local protests that located around 125 000 protests across Africa and combined it with data on the location of Chinese projects across the continent.

We did find out that areas with more Chinese projects were more likely to experience protests.

We also found that the type of project and its location matter. For instance, energy projects, often hydropower, are generally far away from towns and cities.

By contrast, big infrastructural projects could be more likely to promote public demonstrations because they have visible effects on local and regional activities.

Perceptions, influence and trust in governments

There are a couple of potential explanations for this link between projects and protests.

First, we know from previous research that, compared with World Bank aid, Chinese finance is prone to being used by local elites to pursue their own interests and obtain many of the benefits, perhaps because of a lack of transparency in loan conditions, or because of China’s principle of not interfering in domestic affairs when granting loans, which gives local political leaders more power to allocate resources to projects.

All this can lower citizens’ trust in government institutions.

When people lose trust in institutions, they may prefer protesting to voting.

Our analysis confirms that areas with a larger number of Chinese projects do see lowered trust in local government.

Second, using data from the Afrobarometer, which surveys Africans on their view on democracy, governance and other issues, we observe a growing sense of China’s rising domestic economic influence among citizens who are more strongly exposed to Chinese projects.

This perception can stir protests when citizens feel that the economic changes are serving Chinese rather than domestic interests.

But under what circumstances will citizens’ grievances and distrust effectively result in protests?

Almost unsurprisingly, and reminiscent of the Arab spring, we find that improved mobile connectivity may have played an important role in helping citizens to co-ordinate.

Protests are an interesting way to explore how African citizens are responding to Chinese investment.

A direct and legitimate form of political participation, protests, can draw attention to grievances and demand accountability from governments.

Our study shows a systematic link between Chinese projects and the occurrence of protests.

NewsDay