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Gold buyer loses US$45k to fake gold dealers

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Gold buyer loses US$45k to fake gold dealers

A HARARE businessman was allegedly duped of US$45 000 after being sold fake gold.

Three men — Stephen Mhumbwe, Louis Mudzongo and Mike Tafira — appeared before Harare magistrate Mr Dennis Mangosi on Thurday and were remanded out of custody to June 2. It is the State’s case that the trio connived and duped businessman only identified as Mr Mashiri who is a registered gold buyer and sold him what later turned out to be fake gold. 

It is alleged that Mudzongo was approached by Tafira who told him that he had some people selling gold in Ngezi and were looking for a buyer. Mudzongo reportedly engaged Mhumbwe to look for a buyer. Mhumbwe allegedly approached Mr Mashiri and convinced him that he had a brother, Mudzongo, who was selling gold and Mashiri got interested

It is the State’s case that Mashiri was later linked to a person only known as Mashonganyika who was reported to have the gold. 

Mhumbwe accompanied Mr Mashiri to meet Mashonganyika who was in the company of one Jena and T-One where the transaction was conducted after Mashiri was convinced that it was genuine and paid US$45 000 through Mhumbwe.

Later on, Mashiri discovered that it was not gold and that he had been defrauded prompting him to make a police report.

No recoveries were made as the trio became evasive.

Lancelot Mutsokoti prosecuted.

Masvingo Mines office in corruption saga

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Masvingo Mines office in corruption saga

The Masvingo Provincial Mining office has been hit by corruption allegations with the Mining Engineering, Geology, and Survey departments sucked in what could be a criminal cartel meant to defraud miners of their mining rights.

Rudairo Mapuranga

The allegations of air pegging, backdating of applications, and double allocation of claims in the province have been labeled a sole creation of the Ministry’s deep-rooted cartel which is meant to defraud miners the chance to enjoy the country’s resources.

It is alleged that the mining engineering department led by Engineer Claud Shonhai with the blessings of the Provincial Mines Director is leading the cartel which works with Geologist Malunga and from Survey Chikoto.

The cartel is allegedly working to dispossess a Chrome mine claim with over 50 percent chrome samples prospected by TSMG mining syndicate in Chiremwaremwa Chegwite to give to Zimplats Geologist Tendai Manyange.

The saga

It is alleged that TSMG Mining syndicate sought pegging services to peg a chrome claim in Chegwite through Masvingo Mines Geologist named Malunga. Upon finding that the area was chrome rich TSMG Mining syndicate claims Malunga allegedly informed his colleagues to craft stories and excuses meant to deprive the TSMG of their right to own the claim legally.

It is said that the syndicate (TSMG) was initially advised that the area was free to peg, however after submission of notification and registration fee through the help of an approved Prospector named Tinashe (whose work was a reference from Engineer Claud Shonhai) the syndicate was told that the area was under Save conservative when the syndicate questioned the truth of the Ministry’s position, goal posts were shifted that the area was under ZMDC.

It is alleged that Chikoto and Shonhai then went to one of the TSMG director’s father and convinced him to partner with them to form a syndicate and peg the area. The story is that the officials of the Mines Ministry initially wanted to give the area to Tendai Manyange whose prospecting license application was done by Malunga.

Things done wrong

Malunga who is a permanent employee of the Ministry of Mines and Mining Development acted as a prospector when he pegged for TSMG Mining syndicate in Chegwite.

According to the Prospector Tinashe, Malunga used his GPS equipment to take coordinates and collected prospecting or pegging and consultancy fees from TSMG syndicate this he did in Tinashe’s name since he’s an approved prospector. It is also alleged that TSMG syndicate was ordered to work with Tinashe by Engineer Shonhai against their rights to choose a prospector of their choice.

It is alleged that Manyange used one of the Mines officials to get a prospecting license instead of a consultant company, TSMG Mining syndicate believes that Shonhai was used to get the prospecting license. Tinashe admitted that he received  Manyange’s prospecting license from Malunga to peg him a claim.

However Manyange said he does not know anything regarding prospecting in Masvingo, he said he had never been anywhere outside Kadoma for a very long time.

“I stay in Ngezi work here and literally have been here for the past year and a half ever since lockdown. The only Ministry point I have set foot at is the Ministry of Lands in pursuit of my farming papers otherwise I still think you have the wrong person,” he said.

Shonhai did not answer the questions sent by Mining Zimbabwe, Malunga and Chikoto’s phones went unanswered.

Second quarter wage negotiations long overdue – ZDAMWU

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Second quarter wage negotiations long overdue – ZDAMWU

ZDAWU press release

The Zimbabwe Diamond Allied and Minerals Workers Union (ZDAMWU) is worried about delays or unwillingness by concerned parties to conclude 2nd quarter wage negotiations. The negotiations are long overdue.

The 2nd quarter wage negotiations are coming against the backdrop where every mine have practically failed to pay the  January February back pays. The reason for this travesty of justice on mine workers is because the 1st negotiations were concluded late that is  in March when the March payroll was already being processed.

It is disturbing to note that some mines are already applying for exemptions not to pay the back pays.

The reason why we are having these challenges is because of the connivance between  AMWUZ and their handlers (Chamber of Mines) to short change the workers as they are waiting  to hear a new wage increase from NEC.

Cry the beloved workers. It is a known fact that workers are expecting  a second quarter increase effective on the 1st of April.

Hope is fast fading for mine workers, considering that April is coming to an end and there has been no sitting. Chances of workers receiving the back pays are fast fading.

A critical question is that why didn’t the negotiators  a dollar value increase in March  when they signed the 1st quarter.

A normal and an effective trade union should have pushed the Employers Chamber of mines to agree on a dollar value increase for the 2nd quarter since the 1st quarter was complicated  last month March  so as to avoid this unnecessary claim of back pay each time wages are increased.

Who is benefiting from this unreasonable approach to issues of bread and butter?

Maybe it’s  because our friends in AMWUZ get seating allowances for every seating they attend.

Our resolution as ZDAMWU is that as long  as the mining  sector is still paying these  slave wage, workers will not rest.

As mine worker representatives we are not going to tire in pushing for a living wage in the range of USD$ 400-600.

In addition, mine workers are also so disappointed by the failure to consider the  Covid-19 allowances were the sector was the only industry that remained on the ground and sustained other sectors during the lockdowns.

It’s sad the parties to the negotiating table don’t consider these facts.

As a people-centred union we are going to continue capacitating our members through trainings which are currently underway, as we are giving workers skills to bargain at works council level.

We are also encouraging workers committees to take the bargaining to works council as waiting  for  NEC will not help them as well.

It’s better to get an increment now than waiting for a back pay.

SMM investment capital looted

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SMM investment capital looted

As much as US$16 million was allegedly looted from SMM Holdings after administrator Afaras Gwarazimba lost control of the company to the State-owned mining entity, Zimbabwe Mining Development Corporation about 10 years ago.

SMM, formerly owned by businessman Mutumwa Mawere was placed under reconstruction in terms of Presidential Powers (Temporary Measures) (Reconstruction of State-Indebted Insolvent Companies Act) on September 16, 2004.

Government, through ZMDC took over the management of SMM in 2011 and reportedly injected US$16 million which, Gwaradzimba intimated in a recent meeting with employees, was stolen because he had lost control of the company.

The latest revelations are in an application by SMM workers through the Zimbabwe Diamond and Allied Minerals Workers Union to the Minister of Legal, Justice and Parliamentary Affairs Ziyambi Ziyambi seeking removal of Gwaradzimba.

Employees of SMM, the parent company of Shabanie and Gaths mines claim Gwaradzimba continued stay in office is illegal. In terms of the Act, Ziyambi is empowered to vary the reconstruction order by removing Gwaradzimba and any other person appointed to assist him. But this will need the High Court confirmation.

The workers claim Gwaradzimba, in a meeting held on March 8 this year intimated his continued stay in office was illegal as he was, at some stage, relieved of his administrative duties after the management of the company was transferred from Ministry of Justice to ZMDC under Mines and Mining Development Ministry.

He was to be re-appointed informally by a Cabinet Committee handling the SMM portfolio.

Gwaradzimba and SMM are being cited as first and second respondents respectively.

According to the application, Gwaradzimba was relegated to only deal with litigation brought against SMM by Mawere. 

“The 1st respondent stated in our meeting that the ZMDC board had a US$16 million capital injection from the Government but it was squandered because he had no control over the company or funds,” read part of the application, now before Minister Ziyambi Ziyambi.

When he was “informally” reinstated, Gwaradzimba is said to have indicated that despite the capital injection, the company found itself in financial challenges, “having wasted investment capital on purchases of motor vehicles” and salaries.

Gwaradzimba also alleged late former president Robert Mugabe rejected the investor he had secured and directed the company removed from the Minister of Justice, then under Patrick Chinamasa to Ministry of Mines under Obert Mpofu.

Nearly 1000 ex-employees are owed US$17,6 million. The company is also said to have outstanding obligations amounting to about US$3,4 million to the Mining Industry and Pension Funds and US$2,7 million to National Social Security Authority.

Asset stripping

The workers have also alleged Gwaradzimba was converting SMM mining leases into residential stands. It is further alleged that he has already raised US$50 million through a deal struck with a local bank involving disposal of land under mining leases.

“He divulged that he is converting mining leases belonging to second respondent into residential stands….he claims he wants to (use the funds) to service  what is owed to employees.

“These actions amounts to asset stripping. The obvious and natural consequences is that this undermines the viability of second respondent as a going concern.

“Effectively, first respondent has abandoned his primary duty of securing investors to resuscitate second respondent and then service the company’s debts.

Waning revival prospects

While the revival of Shabanie and Gaths mines remain a priority, some experts believe resuscitating the two mines might not make economic sense given high levels of structural weaknesses, huge capital outlay needed and low global demand of the fibre.

Instead, Government might need to concentrate on the dumps for the local market as challenges on the ground are clear that reviving the mines might not be feasible.

Some investors have been previously linked to the resuscitation of the mines over the past few years, but there hasn’t been much achieved in the regard. According to SMM, about US$120 million is needed to revive the two mines. Mining experts say that after the mines ceased operations, there was no proper care and maintenance, resulting in both mines flooding, thus submerging equipment.

The experts also said the mines have suffered fatal geotechnical failures such as roof collapses which makes it difficult “if not impossible” to access critical mining levels.

Similarly flooding may cause rock strata stability challenges, which calls for huge capital to reopen the mines.

The top three levels of Gaths mines are said to have collapsed due to flooding of the mines.

Compounding challenges related to the re-opening of the mines is that potential investors may not be keen to go into asbestos on the back of the lobby to ban the mineral.

Health authorities around the world have long advocated against the use of asbestos, saying it posed health risks when the silky fibres that make up the mineral get into the air that people breathe. When inhaled in significant quantities, asbestos fibres can cause a scarring of the lungs that impedes breathing; mesothelioma, a rare cancer of the lining of the chest or abdominal cavity; and lung cancer.

Asbestos, which is widely used in the construction and other industries has been banned in many developed countries, including the European Union. In some countries, such as Canada its use is strictly controlled through the laws, according to reports.

Business Weekly

Umguza small-scale miners cry foul over double pegging

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Umguza small-scale miners cry foul over double pegging

ARTISANAL and small-scale miners in Umguza District, Matabeleland North have raised concern over double pegging of mining claims.

Speaking on the sidelines of the Umguza Miners Association revival meeting last week, the newly-appointed Umguza Miners Association chairman, Mr Themba Tshuma said there has been a growing number of mining claims that have been double pegged. He said a miner who had all the documents and had his claim pegged in 2004 clashed with a person who later on brought papers dating back to 1994, claiming to be the rightful owner of the pegged area.

“What usually happens is that when you start making money, you start to see well-financed people coming with documents which state that they also pegged the same area in the 1990s. What will be surprising is that you would have been mining at the place for six years. You then ask yourself where were those people before you unearthed more gold in the place?”

He also noted that the Ministry of Mines and Mining Development office in the province was failing to address the issue. However, the provincial mining director for Matabeleland North Mr Farayi Ngulube said the issue of double-pegging was not peculiar to Umguza District.

“It’s inevitable in most cases because either there will be human error or the cause will have to do with the state of our maps that are torn, tattered and most likely now invisible due to being handled countless times over the years. So there is a need for new maps and putting the cadastre system into use to address these issues,” said Mr Ngulube.

Commenting on the issue of double pegging, Parliamentary Portfolio Committee on Mines and Mining Development chairperson Mr Edmond Mkaratigwa said the case of double pegging in Matabeleland North was a tip of the iceberg regarding what was prevailing in the country.

“Our pegging system has been mostly manual in terms of boundaries and that is why we have always been making a lot of noise for the introduction of the electronic mining cadastre system and the process is moving, although not as fast as we anticipated. As a committee we have recommended the speeding up of the implementation of the cadastre system in the country,” said Mr Mkaratigwa.

 

The Sunday News

Machete gang hits Gwanda Mine

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Machete gang hits Gwanda Mine

A gang armed with machetes and axes raided Dubane Mine in Gwanda and got away with R700, police have confirmed.

Matabeleland South police spokesperson Inspector Loveness Mangena confirmed the incident that happened around 8.30 pm last Wednesday. She said the seven men arrived at the mine and found two workers, Lastboy Ndlovu (21) and Prince Ncube (27). They then demanded money from the workers while threatening to axe them.

Insp Mangena said the two were saved by villagers staying close by who managed to help apprehend three of the gang members while the other four got away with R700 taken from the workers.

“The case was reported to the police the very same day and three accused men were arrested. These being Steven Moyo (37) from Guyu under Chief Marupi, Richard Mangena (31) from under Chief Mathema in Gwanda and Melusi Nyoni (18) from Guyu. Society must emulate what these villagers did as they worked hand in glove with the police in apprehending the robbers,” said Insp Mangena.

She, however, warned members of the public that if they are raided by armed gangs, they must not fight back, adding that businesses such as mines should also improve security to protect their properties.

The Sunday News

Blanket Mine targets 80k ounces by 2022

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Blanket Mine targets 80k ounces by 2022

CALEDONIA Mining Corporation remains optimistic that its gold-producing concern, Blanket Mine in Matabeleland South will surpass its annual 60 000 ounces target for the year, setting a record high production rate in years.

Buoyed by its new central shaft at the mine, Caledonia has a production outlook that could bring out 80 000 ounces of the yellow metal by end of 2022. In the first three months of the year, company results point out that Blanket Mine produced 13 197 ounces. Although the figure was shy of the initial target, it was proof that more gold could have been mined had it not been for the abundant rains that caused production shifts in the quarter.

“A total of 13 197 ounces of gold were produced during the quarter. Caledonia remains on track to hit its production guidance of between 61 000 to 67 000 ounces for the full year,” the company announced in its first-quarter results that ended on 31 March.

Although the first-quarter production was lower than that of last year, the firm’s group chief executive officer Mr Steve Curtis said prospects of achieving set goals were high.

“Production in the first-quarter of 2021 was slightly below our target and below the comparable quarter in 2020 albeit at a level which allows us to maintain our 2021 production guidance of 61 000 to 67 000 ounces for the full year. Gold production has often been lower in the first-quarter of each year and increases in the following quarters.

The rainy season this year saw unprecedented rainfall causing flooding at the mine and resulted in several lost shifts during the period.”

The new central shaft started to be fully operational in the first week of April.

“These temporary issues have now been rectified and with the central shaft now operational we remain on track to hit our 80 000-ounce target in 2022,” Mr Curtis noted in the quarterly update.

Mr Curtis said previously Blanket Mine had a myriad of constraints emanating from weak shaft mechanisms that stalled production. The central shaft was seen as the best way for the mine to boost production as the shaft has the capacity to lift both rock, material and manpower.

Mr Curtis said funds for the shaft, which was done in six years, were sourced from Blanket Mine’s local earnings as the concern made a commitment to bankroll the project.

“This has been an owner-funded and built project by the Blanket team and I would like to thank everyone for their hard work and especially for achieving the completion of the shaft without any serious accidents, recording only two lost-time injuries.”

Caledonia Mining Corporation’s commitment to invest more in the mining portfolio was emphasised by the chief financial officer and director, Mr Mark Learmonth in South Africa recently. He told a grouping of investors that the country has a stable and peaceful business operating environment. Meanwhile, the Reserve Bank of Zimbabwe has said gold deliveries for the first-quarter of the year went under by 30 percent. The months of January and February recorded low volumes with large-scale miners and the small-scale sector lamenting flooding caused by the rains. It was only in March, when the rain subsided that gold deliveries to Fidelity Printers and Refiners picked up to 54,7 percent.

The Sunday News

Peggers bemoan Ministry of Mines slow service

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Peggers bemoan Ministry of Mines slow service

Prospectors popularly referred to as “Peggers” on Wednesday expressed their displeasure at the Mines and Mining Development Ministry’s slow service which makes it difficult for them to conduct work progressively.

By Shantel Chisango

Addressing their concerns to the ZMF board at a Prospector’s Breakfast meeting held in Msasa, peggers were consistent in stating that mines Ministry services are poor and very slow when it comes to issuing Mining Titles.

“Mines Ministry is not efficient when it comes to the issuing of claims certificates, and this disadvantages us as peggers because delays in claims certificates infuriate our clients and usually create disputes,” stated peggers.

Furthermore, peggers said the Mines Ministry is at times an unreliable source when providing information on claims that have forfeited which results in the double allocation of claims, the end result being unending disputes between miners and peggers.

Adding on, the Secretary-General of Zimbabwe Prospectors Association (ZPA), Mr. Timothy Chizuzu said there is a need to engage the Mines and Mining Development Minister to discuss the problems being faced by peggers.

“We need a one-on-one meeting with the Mines Minister to discuss the problems we are facing because communicating through social media is not diplomatic in solving these issues,” said Chizuzu.

Minister on Mining disputes

Speaking at a function held earlier this year responding to the question on mining disputes, the Minister of Mines and Mining Development Hon Winston Chitando pointed out that the cadastre system will be a solution to the problem of land disputes in the mining sector.

“The cadastre system which is now being worked on will take care of most of the disputes so that there is no double allocation of claims,” said Chitando.

The Minister announced that the equipment for the implementation of the cadastre system will be in the country by June 2021.

Bravura Zimbabwe to settle Zim concession dispute

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Bravura Zimbabwe to settle Zim concession dispute

Bravura Zimbabwe, which is exploring for platinum in the Serui concession in Selous, Mashonaland West Province, has agreed to help the government pay a US$15m settlement to South African-based Amari Platinum, the previous holder of the concession who has battled the government in international courts, it has been learnt.

Bravura is owned by the Nigerian billionaire, Benedict Peters.

In 2011, the Ministry of Mines and Mining Development cancelled Amari’s right to operate the Serui concession after the company had spent millions of dollars exploring it and identifying an economically viable resource of 18 million ounces of platinum.

Bravura Zimbabwe (Pvt) Limited then signed a platinum mining project agreement with the Government of Zimbabwe  in 2019 at a function that was presided over by President  Emmerson Mnangagwa

Amari, which had signed a joint venture agreement with the State-owned Zimbabwe Mining Development Corporation, initially sued for $500m.

But after years of litigation, Amari has now settled for $15m, government sources said.

It is understood that President Mnangagwa’s administration approached Bravura, the new holders of the Serui concession, to pay the settlement.

“Bravura will pay the money to the government, which will settle with Amari. But the payment is conditional on Bravura finishing its exploration and quantifying the economic resource,” a government source who is privy to the agreement said.

The agreement could help end the long running dispute between Zimbabwe and Amari, which had further damaged the country’s image abroad as a violator of property rights.

Mines Minister Winston Chitando and Bravura’s country manager Lionel Mhlanga did not immediately respond to questions sent to them.

In November last year, Bravura said it had raised US$1bn to develop its platinum mine and then set an ambitious target to start mine construction within 18 months.

Some industry experts, however, remain skeptical about Bravura’s mining credentials as the company has no expertise in platinum mining.

Moreover, developing the mine will be no easy task. The platinum group metals deposits at Hartley have in the past proved too complex to mine, even for experienced miners.

Despite his financial acumen in Africa, Peters was forced to flee his native Nigeria and now lives in Ghana after reports of his improper financial conduct emerged in Africa’s populous country.

Last month, Nigeria’s Centre for Social Justice, Equity And Transparency (CESJET) asked the country’s Economic and Financial Crimes Commission (EFCC) to arrest and prosecute Peters over allegations bordering on conspiracy, fraud, tax evasion, corruption and money laundering.

Peters, who is chairman of the Aiteo Group of Companies, the largest domestic oil producer in Nigeria, denies the charges and alleges a political plot by his rivals.

Peters’ Aiteo was investigated on charges relating to asset transfers by EFCC and was cleared in 2017.

That same year, a court also cleared Peters on allegations of bribery and money laundering.

He won a court order in 2018 to have the EFCC remove his name from a ‘wanted list’.

His entrance into Zimbabwe’s mining sector comes at a critical time when the country is in desperate need of foreign investment to stem decades of economic decay. Some experts, who spoke to this publication this week, hope his fraud and corruption allegations will not follow him to Zimbabwe.

Zimbabwe’s frantic crave for foreign investment has often exposed the country to dubious investors who manipulate political connections to secure mining concessions for speculative purposes, analysts said.

“After the fraud and corruption allegations in Nigeria, the first test in Zimbabwe would be if he can honour the deal to settle Amari. From there, he would need to quickly move into production if he is to establish himself as a serious investor in Zimbabwe. In the last few years, we have seen just too many speculative investors, some using political connections to plunder our resources,” a local mining consultant who preferred  anonymity said.

Government recently announced that it was in the process of repossessing at least 213 mining concessions that are lying idle because they were being used for speculative purposes.

Zimbabwe has the second largest known reserves of platinum group metals after South Africa but new investments into the sector have been hamstrung largely by corruption and inconsistent policies.

 

Business Times

Prospectors to interface with Mines Minister

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Prospectors to interface with Mines Minister

Zimbabwe Prospectors Association (ZPA) will engage with the Minister of Mines and Mining Development Hon Winston Chitando on issues of development and growth of the mining industry to achieve the President’s US$12 Billion mining target by 2023.

Rudairo Mapuranga

Speaking at Zimbabwe Miners Federation (ZMF) AND approved prospectors Breakfast meeting held in Msasa on Wednesday, ZPA Secretary-General Mr. Timothy Chizuzu said it was of importance for prospectors to meet and engage the minister with regards to the challenges faced by prospectors which are usually a creation of the Mines Ministry officials.

The ZPA Secretary-General said engaging the Minister in a civilized matter was important to address issues affecting miners and prospectors as this would result in the sharing of ideas to solve the problem.

“On issues of development, we need to engage than being radical because solving a problem needs sharing of ideas,” Chizuzu said.

Speaking at the same event ZPA chairperson Mr. Frank Chatyoka said meeting the Minister was important for prospectors as this will help them register their concerns with the Minister regarding the Mines and Mineral bill.

“We just want to register our concerns on the bill and to share notes on the concerns of prospectors regarding the bill,” Said Chatyoka.

The meeting will be done prior to the proposed all stakeholder’s consultation regarding the bill, the Parliamentary portfolio committee on mines chairperson Edmond Mukaratigwa has repeatedly said that after the bill has been finalized it would be subjected to stakeholder scrutiny, through public consultations.

The call by prospectors to engage the Minister was applauded by ZMF President Ms. Henrietta Rushwaya saying that it was important for stakeholders to come up with solutions to the Minister that the US$12 BILLION target can be achieved.

“The next meeting, we will be with the Minister, let us provide solutions than to always cry and criticize,” Rushwaya said.

The initial Mines and Minerals Amendment Bill was passed by Parliament, but President Mnangagwa declined to assent it and referred it back to Parliament.

The signing of the bill into law is seen by experts as critical to the attainment of the US$12 billion annual revenue by 2023.

Minister Chitando recently said that the mining sector is on track to meet the target and the ministry is presently carrying out an assessment of the performance of the industry since the launch of the roadmap in 2019, which is set to be released at the end of this quarter.

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