Mining ZimbabweLatest Mining News, Policy and Industry Updates

GOVERNMENT has threatened to unleash “special security operations” on artisanal gold miners destroying public infrastructure such as railway lines in search of the yellow metal.

This was announced yesterday by Information minister Monica Mutsvangwa during a post-Cabinet media briefing where she said artisanal miners had damaged railway tracks under by the Bulawayo-Beitbridge Railway (Pvt) Ltd.

“Government expresses grave concern at the threat of destruction of the country’s critical communications infrastructure and economic activities posed by the illegal and indiscriminate mining activities of illegal artisanal miners across all sectors of the economy.

“This follows presentation of a report on the matter by the Minister of Transport and Infrastructural Development (Felix Mhona), which was adopted by Cabinet.

“In the area operated by the Bulawayo-Beitbridge Railway (Pvt) Ltd, artisanal miners had dug pits within the three-metre radius of the railway line. This has the potential of weakening the railway infrastructure, leading to potential derailment and damage to the tracks.

“Cabinet approved the deployment of special security operations to deter artisanal mining activities along the Beitbridge-Bulawayo railway line,” she said.

Illegal gold miners have become the major suppliers of gold to the Fidelity Printers and Refiners, an arm of the central bank, and they are known for wantonly digging even underneath buildings for the precious metal.

Mutsvangwa also said government resolved to provide alternative accommodation to families in irregular settlements and those affected by recent hailstorms in Manicaland province’s Mutasa and Chipinge districts.

“Cabinet advises that the number of families residing in wetlands or in dysfunctional and irregular settlements which are in need of alternative accommodation stands at 31 257. Verification of affected households is ongoing.

“In the meantime, the provision of relief to distressed households in areas prone to flooding is underway, while the identification of safe places in all provinces is being carried out.

“The Department of Civil Protection is currently carrying out further assessments of the situation in co-operation with partners at the sub-national level in order to alleviate the suffering of our citizens,” she said.

NewsDay

ZIMBABWE’S largest platinum miner, Zimplats, recorded low output during the third quarter ended 31 March 2021 due to the temporary closure of operations at its Ngwarati Mine early this year.

In February, the mine was temporarily shut down after a portion of the high wall at Ngwarati Mine box cut subsided, fatally injuring an employee of a contractor operating at the mine.

In a statement accompanying financial results for the period under review, Implats, which owns Zimplats, said Ngwarati Mine was expected to return to full production at the end of 2021 financial year.

“As a result, tonnes mined, milled grade and process recoveries were all negatively affected during the quarter.

“Tonnes milled were stable at 1,7 million tonnes while the delivered mill grade declined by two percent.

“The ore mix impacted process recoveries and 6E (six elements) concentrate production fell by eight percent to 138 000 ounces,” it said.

The 6E comprises platinum, palladium, gold, rhodium, ruthenium and iridium. A furnace reline was completed during the period under review and matte production including concentrate sold to Impala Refining Services (IRS) of 137 000 ounces was 10 percent weaker than in the previous comparable period.

As Ngwarati Mine was temporarily shut down, production teams were transferred to Rukodzi, Bimha and Mupani mines and milled volumes supplemented by stockpiled development ore from Mupani Mine.

For the nine months ended 31 March 2021, the impact of challenges experienced at Zimplats was mitigated by strong operational delivery prior to the Ngwarati Mine incident.

“Mill throughput of 5,06 million tonnes declined marginally from 5,08 million tonnes, with grade and 6E concentrate production one percent and three percent weaker at 3,46 grammes per tonne and 435 000 ounces, respectively.

“6E matte production in the nine-month period increased by one percent to 425 000 ounces,” said Implats.

Meanwhile, the group said tonnes milled at its managed operations increased by four percent to 5,59 million tonnes during the quarter, with higher volumes reported at Impala Rustenburg, Impala Canada, and Marula.

“Milled grade was stable at 3,64g/t and improved recoveries and yield resulted in 6E concentrate production at managed operations rising six percent to 569 000 ounces.

“6E concentrate production from the joint ventures at Mimosa and Two Rivers increased by two percent to 135 000 ounces.

In the prior comparable period, the implementation of the Covid-19 lockdown in South Africa on March 25, last year was estimated to have resulted in a six percent reduction in reported milled tonnage from Impala Rustenburg, Marula and Two Rivers, equivalent to an estimated 26 000 ounces of 6E mine-to-market concentrate production foregone.

“In the quarter under review, mine-to-market 6E concentrate production improved by six percent or 37 000 ounces to 704 000 ounces, with only Zimplats reporting lower volumes as mining and processing efficiencies were impacted by the high wall subsidence at the Ngwarati Mine box cut.

“IRS 6E in concentrate receipts from third-party and toll customers declined by seven percent to 79 000 ounces resulting in gross group concentrate production rising by four percent to 783 000 ounces,” said Implats.

The Chronicle

 Evictions, court cases and demonstrations have been the major highlights of a raging and one of the longest civil matters in the country which has spanned for almost 17 years now.

Shabanie-Mashava Mines (SMM) Holdings has been embroiled in a nasty fight with its former workers over outstanding salaries and pension funds.

Mine authorities have tried to bulldoze and use their power to evict their workers and families of deceased former workers in a bid to evade paying millions of dollars which they owe them.

Court cases where evicted former workers would seek redemption are becoming the order of the day for the now defunct giant asbestos mining company.

Bills of unpaid salaries have ballooned and the loss-making company has failed to pay even a single cent to ex-employees who are demanding what they are owed.

The company, which once employed thousands of men and women in Mashava and Zvishavane, retrenched its workers when the country’s economy experienced perhaps its worst decline starting in the mid-2000s

Operations were scaled down since the market for asbestos became scarce and this caused a lot of financial damage to the company.

According to Zimbabwe Diamond and Allied Minerals Workers Union (ZDAMWU), 991 ex-employees are owed a total of US$17 676 537.50 while current workers are owed US$19 260 667.99 for the period spanning from January 2012 to November 2017.

Although there might not be consensus on the exact figures owed, it is a public secret that the company is sinking in debt and can no longer pay outstanding wages.

The skeletal staff which is running chrome mining activities at King Mine in Mashava are also crying foul over poor remuneration.

Some of the employees who are working as security guards are reportedly earning a paltry $5 000 per month.

How it started

SMM Holdings, which was majority-owned by businessman Mutumwa Mawere was forfeited seized but under controversial circumstances.

In 2004, the then Minister of Justice, Patrick Chinamasa invoked the ‘reconstruction law’ which stripped owners and shareholders of companies which owed the state.

The unfortunate turn of events saw the continuous demise of SMM Holdings, with Mutumwa Mawere losing his asbestos mining empire.

Mawere’s downfall saw the rise of Afarus Gwaradzimba who was appointed the company’s administrator after the enactment of the State Insolvent Companies Act (Chapter 24:27).

However, Gwaradzimba has faced a lot of backlash from former workers who are now demanding his head for worsening their living conditions.

Court cases

In a court application filled by ZDAMWU, workers demanded the unconditional removal of Gwaradzimba from the helm of SMM Holdings.

“Accordingly, the applicant contends that the 1^st respondent continues to hold the position of administrator unlawfully and therefore applies for his removal from the office of the administrator and for his immediate replacement with the proposed candidate on behalf of the workers who happen to be the single most significant creditor owed millions of US dollars,” reads part of the application.

Workers nominated Taurai Changwa, a seasoned judicial manager and corporate rescue practitioner, as Gwaradzimba’s replacement.

Final decision on the matter of Gwaradzimba’s removal and Changwa’s ascendancy, however, lies with the Minister of Mines and Mining Development, Winston Chitando.

Gwaradzimba was reportedly dismissed in 2006 by then Minister of Justice Patrick Chinamasa when a Zimbabwe Mining and Diamond Company (ZMDC) board chaired by Jerry Ndlovhu was appointed to run the administrative affairs of the company.

However, Gwaradzimba resurfaced a few months later to answer on the litigation which Mutumwa Mawere had started against SMM Holdings.

ZDAMWU secretary general Justice Chinhema told TellZim that their application was yet to be responded to and maintained that Gwaradzimba was supposed to leave office.

“Our position is that Gwaradzimba and the entire board are no longer serving the interests of the workers. We wrote an application to the Minister of Justice so we are waiting for him to respond. He was brought back to settle the workers dues and clear his name and his reappointment was just verbal, there is nothing legal in him maintaining the administrative position,” said Chinhema.

Evictions, victimisation and false promises

In the ensuing years after the company was seized, mine authorities have secured eviction orders on numerous occasions and families lost properties during evictions by the Messenger of Court since 2017.

In recent years, tens of families were evicted from mine houses at Gaths Mine but they vow to stay put until they get what they are owed.

Demonstrations by former workers and widows of ex-employees have been on the rise especially in Mashava where evictions are being carried out against the government’s directive.

In June 2018, demonstrators stormed King Mine offices days after President Emmerson Mnangagwa’s tour when authorities moved to fix potholes, painted the bus and a few buildings giving a false impression of life to the President.

Although a court order barring SMM Holdings from evicting ex-workers had been obtained, on March 24, 2020, police officers and some mine officials went on an eviction rampage leaving many families in the open.

Many families of deceased workers have failed to secure decent shelter after the evictions since Mashava has been the only home they have known.

TellZim is reliably informed that a few days ago since, a number of former workers were served with eviction notices although Gwaradzimba had assured them that no one was going to be evicted.

“Two days ago they came and served some of us with eviction notices but what confuses is if someone is doing this on their own or we are being lied to by Gwaradzimba. He promised us in the last meeting which he held with our representatives that no one was going to be evicted but what is happening on the ground is a different thing altogether,” said a former worker who is facing eviction.

When contacted for comment, Gwaradzimba professed ignorance demanding that the reporter furnishes him with names of the people who are initiating the eviction process.

“SMM Holdings is not serving anybody with eviction notices. You need to find the exact names of those people first then we talk from there and see if those people are representing the company. If there is something like that, it is not from SMM Holdings,” said Gwaradzimba.

In July 2018, the Minister of Mines and Mining Development Winston Chitando, blocked evictions of ex-workers from mine houses, a move which was seen as a political stance.

Speaking during a rally at Maglas Stadium in the run up to July 30, 2018 elections, Chitando assured widows and former workers that there were no longer going to be evictions and that they were going to get ownership of the houses.

“There is no employee who shall be evicted from the mine houses until we have completed the process that shall see current and former employees being given ownership of the houses once the program to sell the houses has been completed.

“The widows of former employees will not be evicted from the houses until that exercise has been completed,” said Chitando.

The eviction orders, which had been obtained in 2017, were put on hold for a moment but there was another crackdown on former workers in 2019.

Mine authorities are also sending letters to former workers which claim that they now owe the company for their prolonged stay in mine houses.

Government has remained silent after elections on the way forward concerning the welfare of SMM employees, therefore raising suspicions that the government stopped the evictions in 2018 to charm the families to vote for Zanu PF.

An end to this fiasco still remains so near yet so far, as former workers are demanding what they are owed but the company still maintains that some of the targeted families now owe them for overstaying in the houses.

With no long lasting solution to the debacle in sight, a crisis is definitely looming in Mashava especially in some areas where young children are now doing piece works for Great Zimbabwe University (GZU) students to sustain their families.

Some are now resorting to illegal gold panning and crime rate has been on the rise due to the high demand for the precious minerals.

Commercial sex activities are soaring with young girls from Gaths mine, King Mine and Temeraire engaging in immoral activities with makorokoza in exchange for money.

TellZim

Artisanal and small-scale mining (ASM) is a source of livelihood in Zimbabwe. It employs more than five hundred thousand workers directly and three million indirectly (Parliament Zimbabwe, 2017). However, ASM activities can damage the environment and pose health and safety risks to workers and surrounding communities. This could be attributed to poor mining and processing practices due to lack of technical knowledge.

Artisanal and small-scale miners (ASM) employ rudimentary mining methods and lack formal plans and procedures to guide their mining activities up to mine decommissioning. There are no efforts to rehabilitate mined areas. Poor mining practices include operating in shallow and highly unstable grounds, and depillaring abandoned mines. These mining practices have resulted in fatal accidents such as those reported at Globe and Phoenix Prince mine (Kwekwe), Task mine (Chegutu), and Ran mine (Bindura). Emergence preparedness and response in these accidents was considerably poor owing to low worker capacitation. Hazard identification, risk assessment and risk management are required to prevent occupational accidents.

Artisanal mining is regarded as an illegal activity in Zimbabwe (Mines and Minerals Act, 1996; Gold Trade Act, 2001; Parliament Zimbabwe, 2017). Lack of regulatory and policy framework and decent work principles prevents formalisation of this sector in Zimbabwe. This complicates improvements in safety standards, adherence to mining regulations and environmental performance.

Occupational Health and Safety (OHS) issues of ASMers are compromised. Working in confined places with poor ventilation using poor drilling technologies exposes ASMers to upper respiratory diseases such as silicosis. Injuries, fatalities and disabilities have been reported among this category of workers. Cases of HIV/AIDS and Sexually Transmitted Infections (STIs) are prominent due to inadequate f health facilities and low levels of awareness and risk perception. All these OHS and environmental issues discourage sustainability of mining operations.

An average of 60 workers die in the artisanal and small-scale mining (ASM) sector every year. Miners often suffer from occupational diseases such as pneumoconiosis and tuberculosis. Also work-related injuries, fatalities and disabilities occur from collapse of ground due to poor mine design and at times flooding, accidental detonation of explosives and inundation. Apart from devastating effects on workers, mining has environmental effects. For example, use of hazardous chemicals such as cyanide and mercury which often find their way into the aquatic environment, affects ecosystem health. Mining operations may leave behind degraded landscape.

It is consequently imperative to prevent incidents and occupational health problems in the mining communities and promote sustainable mining development. Management at ASM need to prioritise safety of workers and quality of the environment. As guided by Statutory Instrument (S.I) 109 (Mining (Management and Safety)), mine managers need to approve safety standards and enforce safe practices at mine sites. Mining teams should be dedicated to conducting mining responsibly to protect people, property and the environment. They should comply with applicable SHEQ laws and policies, Standard Operating Procedures (SOPs), SHEQ plans, and set SHEQ leading and lagging performance targets and indicators. Scheduled inspections, Task performance observations, SHEQ audits and risk assessments, and trainings are also helpful in strengthening and improving compliance with SHEQ requirements. The provision of SHEQ related information, and training ensures that all workers:

• are not injured or fall ill by the work they do.
• develop a positive SHEQ culture where they become second nature to everyone.
• find out how one could improve SHEQ issues and production in the confinement of mining costs.
• meet all relevant applicable legal SHEQ obligations.

Importance of safety, health, environment, and quality management issues

All workplaces have the legal obligations to conduct their production activities with safety in mind. Adherence to recommended SHEQ standards promotes environmental sustainability and ensures that everyone comes to work and goes back home safely every day. It means safe uninterrupted production. This is good to fend for one’s family. SHEQ standards and practices ensure that the social license will be intact throughout the mining life cycle. Safety management practices are a crucial component of the mining operations and are part of the three pillars where mining stands on, and these include production, cost, and safety.

 Three Pillars of mining

A mining operation generally rests on three interacting pillars: safety, production, and cost (Fig. 1).

Fig. 1. Three pillars of mining (Source: Zimbabwe Environmental Law Association)

The three pillars are the balancing factors at any mining operation. A safe production model ensures that the three pillars are balanced and there is no over emphasis of one of the pillars. Compromising safety will influence both production and cost. The three-pillar model suggests that putting more emphasis on production would mis-balance safety and this will have an overall cost overrun. The mismanagement in any of the pillars will result in over-expenditures through either loss in production, high emergency response costs, hospital bills or mine rehabilitation costs.

Safety, health, environment and quality management (SHEQ) practices

SHEQ practices foster safe production at a mine site. Priority should be put on factors that ensure a vibrant SHEQ practice in ASM sector. Sound SHEQ practices are comprise of standards, procedures, communication and compliance.

Standards and procedures

Standard operating procedures (SOPs) are essential to ensure that activities are governed by global SHEQ standards and legislation.  These include:

Communication

Communication means interactive dissemination of all SHEQ issues and performance standards with miners, management and other relevant stakeholders. Effective   communication is interactive, informative, positive and productive. Communicating OHS information effectively is crucial to prevent work-related diseases, injuries and fatalities. The message should get across to all miners. Communication is done through crew or toolbox meetings, work site visits, staff meetings, management review meetings and safety bulletin boards.

Compliance

Any effort to ensure a safe working environment requires stringent monitoring and enforcement. This may be done through:

• targeted and responsive inspections,
• SHEQ audits,
• a SHEQ strategy,
• disciplinary policy.

Source: ZELA

A MINE workers group has bemoaned the ushering in of Chinese nationals into the country’s investment space, insisting the Asians were among the worst employers ever seen.

In a statement to mark Workers Day weekend, Zimbabwe Diamond and Allied Minerals Workers Union General Secretary Justice Chinhema said the country’s Look East policy which ushered in Chinese investors into the country had brought its own nightmares.

Under then President Robert Mugabe, Zimbabwe turned to Asia for new allies after its western friends had deserted the Harare administration for alleged rights abuses, poll theft and high-level corruption.

Workers in the mining sector however feel the policy has brought more harm than good.

“We are not going to rest in fighting and confronting excessive exploitation of mine workers in Zimbabwe brought about by the Look East Policy,” Chinhema said.

“We are demanding serious investors in the mining sector; not some we currently have who are exploiting workers, looting our resources and destroying our ubuntu in communities that they are operating in.

“(An injury to one is an injury to all). Accidents are happening in Chinese owned mines and concealed against the mining safety and health regulations.

“This is a fight which we are not going to back down on, in demanding mine workers total emancipation.”

The union leader said mine workers had no cause to celebrate Workers’ Day because of their sorry circumstances.

“This day today is supposed to be a day in which workers must be celebrating being a worker, but looking around in our mining sector, there is nothing to smile about,” he said.

He added, “Mine workers today face a plethora of challenges which are well documented despite being a vital cog in our economy.

“They earn far less than their compatriots in the region. Mine workers have for a long time cried against slave wages which they are being given by their employers.

“Mine workers today, despite the sector being labour intensive, are working long hours under very difficult conditions.

“The workplace is no longer safe; several mines have collapsed, killing several workers and families losing their bread winners.

“While the employers are selling the minerals in foreign currency, most mine workers are not getting their salaries in that currency instead.

“Despite creaming outrageous profits for their various mining ventures, workers still at the end of the day receive slave wages,” he said.

Zdamwu said the union was not going to back down in demanding what was due to workers.

“Zdamwu will not tire in demanding what is due to the workers. As Zdamwu, we will not tire in demanding Covid-19 allowances for the workers, if essential services are being awarded Covid-19 allowances, our gallant mining sons and daughters are equally essential service providers who are entitled to at least US$200 Covid-19 allowances.

“If the bible encourages giving to Ceasar what is unto Ceasar, ZDAMWU encourages employers to give workers their dues. That is non-negotiable.

“This year our theme being ‘confronting excessive exploitation of mine workers in Zimbabwe brought by the Look East Policy, black and white cartel & looters towards our independence,” have come at an opportune moment when workers represented by ZDAMWU are fighting tooth and nail to reclaim their rights in the mining sector,” he said.