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Discipline, consistency and alignment in the Mining Sector

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Mining is the linchpin of the Zimbabwean economy. It is positioned there through the National Vision 2030. Discipline, consistency and alignment are critical as we are poising ourselves for growth as a country.

Edmond Mkaratigwa

One area that Zimbabwe needs to continue tackling and mastering is the discipline in policy consistency and in maintaining scaled-up energy for legal, policy and practice alignment to the national vision.

The main glue to the achievement of those aspects is the availability of a definable national ideology. Critically a definable national ideology cannot be overemphasized as it casts the line to be towed, of-course within the confines of national statutes, conditions and feasibilities. The world is a hotchpotch of ideas (both new and old) and countries are not spared from the confusion associated with the different perspectives, their attractiveness mainly due to availability of funding and acceptability into the “league of smarter nations”, yet the country must choose that which works most for itself before such adaptations, and for its political, economic, social, technological and environmental sustainability and posterity agendas. This article in that line of thinking raises debate on why national legal and policy frameworks are sometimes inconsistent, lacking timely alignment particularly with a special focus on specific mining areas and, lacking the discipline to keep the policies and practices legally and administratively stable. Focus is given to riverbed mining as an example.

In Zimbabwe, riverbed mining was recently banned by the government. Riverbed mining spans from alluvial and eluvial, to diluvial mining. Riverbed mining has existed in the country for many years and flip floppingly, it has been legalized, illegalized and both legalized and illegalized. The current scenario is the latter.

Existing legal and policy positions allow riverbed mining only in Save and Angwa Rivers. Without adequate data to substantiate the claim by environmentalists that only Save and Angwa Rivers are mature enough to sustain riverbed mining, the main idea is whether the country should accept every new idea that comes without giving adequate thought to the broader national impact of the move to national sustainability. Another view is whether the oscillations backwards and forwards will not continue into the near future, creating a negative atmosphere of inconsistency, indiscipline and endless legal and policy recalibrations.

Indeed, riverbed mining has got many merits and demerits to environmentalists and other livelihoods sustainability options but the argument superior to those two is whether those considerations will significantly feed into the national vision 2030. Zimbabwe has boasted of gold deposits and sometimes these deposits are in our rivers which will finally deposit the minerals into the oceans. Current gold production levels have been going down, partly due to increased restricted mining areas. Particularly, responsible mining is critical to balance between mineral production, mitigation of adverse impact on the environment and how the mining operations can help towards achieving the national vision 2030.

What is even more important is the national strategy and methodology adopted towards the vision. Definitely in that regard, in the short to medium terms, the country needs money to transform and position itself on the best pedestal for growth through industrialization which all needs funding. The country has opened itself for business investment from about and far and has to also lead in its quest to achieve its vision by adequate facilitation that requires measured and well-thought-out strategies, cooperation and unity of purpose.

Whereas riverbed mining is becoming more preferable by many local and foreign investors due to the simplicity of alluvial over reef mining methods involved, it is important to strengthen monitoring of operations while avoiding moving forwards and backwards without adequate justification. The main motivations are two-fold. Firstly, the gold that is yielded, and secondly, the de-siltation that occurs leaving the river able to hold huge volumes of water for livestock, human use and agricultural activities all along the stretch of the river. The river’s ecosystem will once again grow back. Currently, large swathes of rivers are dry during the dry season and hence being unable to sustain the communities that live along the river or the associatory ecosystem. Once desilted, the river will be able to store accessible water.  Green-belts will possibly be created, from which serious agricultural activities can be done.

River sand mining is a big issue in many countries including India and sand abstraction is now believed to be at a faster scale when compared to the natural development process of sand particles in the rivers. Given the continued high demand for sand in the construction industry, a framework has to be developed for sustainable abstraction than to simply ban sand abstraction completely, especially in a developing country. The same applies to the Zimbabwean context with regards to the many forms of mining. The country needs to be led by its ideology and vision, and all influences that come along should not detract the country from its main objectives. The existence of advocacy is critical in all societies and these advocates should also understand and support the national thrust and help craft frameworks that can be implemented in phases, and incorporating the advocates’ ideas which are normally international, without fully throwing off the gauntlet.

In ending, advocates who normally overly get to be dogmatic about ideas may not be as constructive, in the current Zimbabwe that requires more of a middle-of-the-road approach to its development. Investors in their various classes are coming-up in different forms and with different areas of interest, but certain areas like riverbed mining can be made acceptable with particular conditions for example where small-scale miners are concerned. The fact that Angwa and Save Rivers have been left for riverbed mining is also a good case study for the broader riverbed mining sustainability in the country and that should not just be a matter of stopping its existence. It only confuses when this kind of mining is again opened within a short space of time from the last ban as that reflects poor discipline, consistency and alignment of the national policy and legal frameworks to the national vision and ideology.

On the other hand, Angwa and Save rivers are not as prolific when it comes to riverbed gold mining.  The mining sector to a larger extent demands high capital investment and may involve long-term investment planning hence the need to ensure the maintenance of policy, legislative and administrative discipline, consistency and alignment in our unwavering move towards attracting national investment and achievement of vision 2030. Lack of discipline, consistency and alignment which are keys to national development, can keep the country engulfed in corruption, over-bureaucratization that breeds corruption, as well as subsequent nepotistic over meritocratic tendencies. Nepotistic approaches can lead to targeted flexing of particular policies and laws; a practice that the government has moved away from and strongly condemns.


[Edmond Mkaratigwa (Ph.D. Candidate of Energy Innovation and Sustainability; holder of an MBA in Energy and Sustainability and Chairperson of the Parliamentary Portfolio Committee on Mines and Mining Development. The article is personal and independent from positions associated with the author)].

Chimona invests US$500 000 in Bubi

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MIDLANDS-based, Chimona Mining Company, has spread its wings to Bubi District in Matabeleland North where it has acquired new gold mining rights and will be setting up a processing centre under a US$500 000 investment.

The venture is expected to create more job opportunities and promote formalisation of artisanal mining activities in Bubi, which is one of the gold-rich districts in the country.

Speaking during a recent familiarisation tour of the new mine in the Inyathi area, Matabeleland North proportional representation legislator, Honourable Elizabeth Masuku, called on mining communities to play their role in economic transformation.

She said Chimona was an established indigenous gold and quarry mining firm and that the gold resource in the Bubi community presents a huge opportunity for locals to participate in building the economy towards an upper-middle-income status by 2030.  

Hon Masuku said Ward 12 communities, where the mine is being situated, should join hands with mining investors in their areas so as to derive maximum benefits such as employment and other downstream enterprise developments.

“It’s my greatest pleasure to grace this familiarisation meeting with Chimona Mining Company, which I am proud of because it is our own Zimbabwean mining company,” she said.

“It’s clear that the company is championing Vision 2030, which was unveiled by our President of the Republic of Zimbabwe, His Excellency Honourable Emmerson Mnangagwa. I foresee huge economic activity around Inyathi.

“There is a need to set up horticulture gardens here as workers around this place will need vegetables and many agro-foods, retailing, and many other economic activities.

“As the company grows, let’s also grow economically. I am well informed that the mining company has pledged to assist women and youths in mining groups around the district with mining equipment. Let’s embrace that and grow ourselves.”

The managing director of Chimona Mining Company, Mr Marufu Sithole, explained the company’s mission and strategic objectives, which he said were anchored on inclusive development. He said while his company began in the Midlands province, they were delighted to spread wings to Matabeleland.

“We are here as Chimona Mining Company to unveil ourselves to you the community around here. We have acquired mining rights and we are a company that believes in Zimbabwe’s economic agendas,” he said.

“We mine in communities and we seek to also empower the very same communities. We will employ the local people, assist syndicates and small-scale miners that may need assistance. We drive to help the mining sector meet its US$12 billion target by 2023 and also to raise impetus towards Vision 2030.

“We want to drive this target and vision through mining communities. We want to see life through mining. I urge you all to brace up for this.”

Mr Sithole is the first vice president of the Zimbabwe Miners Federation, an umbrella body for all small-scale miners in the country. 

The mining sector is one of the key pillars of Zimbabwe’s economy and is expected to realise up to US$12 billion milestone earnings by 2023. 

A number of mining investment projects are at different stages of implementation covering a diversity of key mineral exploits, which should feed into the US$12 billion milestone.

The event was attended by Lupane East legislator, Bongani Dube, who is a member of the Parliamentary Portfolio Committee of Mines and Energy, ZMF officials and community leaders.

Caledonia Mining over the moon about debut GDXJ Index inclusion

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Caledonia Mining Chief Executive Officer (CEO) Steve Curtis has expressed his joy on the company’s inclusion on the Global Junior Gold Miners Index (GDXJ) for the first time following the GDXJ Index’s first quarter 2021 review.

By Shantel Chisango 

Mr. Curtis said the inclusion of the company in the GDXJ Index is a huge step in raising the company’s profile among investors.

“I am delighted with our imminent inclusion in the GDXJ Index. The listing of our shares on the New York Stock Exchange (NYSE) American has increased our liquidity significantly and our inclusion on the Index should further raise our profile among retail and institutional investors.”

He further added that the addition of the company to the Index has come at an excellent time especially with the commissioning of the Central Shaft to be completed in the first quarter of this year.

“The addition of Caledonia to the Index will be an important milestone for our business and will come at an exciting time for the Company with the commissioning of Central Shaft due to be completed in the first quarter of this year.”
The GDXJ Index forms the basis of various passive gold sector investment funds in the North American market, the most significant being the $5.2 billion VanEck Vectors Junior Gold Miners ETF.
The addition of Caledonia to the Index will occur on Friday, March 19, 2021.

The VanEck Vectors Gold Miners (GDX) exchange-traded fund (ETF) is the most liquid vehicle for investors and traders to gain exposure to gold mining companies. The ETF was established in 2006 by VanEck in the midst of gold’s bull market as securities were created to satiate the appetite of precious metals investors.

Fradreck Kunaka leaving Fidelity

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Fidelity Printers and Refiners (FPR) general manager, Fradreck Kunaka, is leaving Zimbabwe’s sole buyer, refiner, and exporter of gold, at the end of this month after six years at the helm, a local publication revealed.

Well-placed sources at FPR, a subsidiary of the Reserve Bank of Zimbabwe (RBZ), this week said his departure after 20 years of service, six of which as general manager of FPR, was part of an internal overhaul at the soon to be restructured company to create two units—gold refining and printing and minting.

The central bank will wholly own the printing and minting business and retain 40% shareholding in the refining entity.

Using a three-year average delivery of gold to Fidelity Printers, the central bank will offer 50% shareholding in FPR to the large-scale gold producers, 3% to major FPR gold buying agents and the balance of 7% to the small-scale producers through their representative bodies.

Kunaka’s replacement was, however, not immediately clear by the time of going to print.

Contacted for comment by Business Times, Kunaka confirmed that he will be leaving his position at the end of this month.

His departure followed a steady build-up of mounting pressure for him to step aside following the government’s decision to unbundle FPR.

“There’s always time for everything in life. My curtain at Fidelity is coming down at the end of the month [March] after a good long relationship with the company,” Kunaka said.

He added: “The unbundling issue at Fidelity is one of the major reasons for me leaving the company as new shareholders come in with their new employees who they think can further their agenda.

“This came at an opportune moment as my tenure as the general manager was coming to an end and I saw it wise to leave the company.

“I did all I could to serve the gold buying company [FPR] but everything has to end like now. We never know, the new management may take the company to even greater heights than we did. We leave them to their business and will be helping from the sidelines and whenever necessary.”

The RBZ is planning to end the gold monopoly by FPR, which has seen it being the country’s only buyer, refiner and exporter of gold for more than 40 years.

The monopoly, however, has been criticised by some who were seeking to invest in Zimbabwe’s gold sector.

RBZ is expecting that the gold producers’ compliance levels in the trading of gold will significantly increase due to the fact that gold dealers will be part of the decision-making process in gold trading.

The privatisation of FPR comes after lobbying from some players in the mining business.

Given the developments, well-placed sources told Business Times that Kunaka was expected to leave his position as it had become untenable.

Other sources told this publication that the tide finally turned following FPR’s failure to pay miners, resulting in them smuggling the yellow metal to alternative markets.

Zimbabwe has been losing at least US$100m worth of gold every month due to smuggling, according to Home Affairs Minister, Kazembe Kazembe.

There have also been unfriendly policies, which have resulted in unsatisfactory deliveries to FPR.

Last year, about 19.1 tonnes of gold was delivered to FPR from a target of 28 tonnes.

Zimbabwe could have missed out on gains it could have harvested from record-high gold prices of US$2, 070 in November 2020.

Government investigating unfair chrome claim allocations

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The government is investigating unfair chrome claim allocations, Mines and Mining Development Minister Winston Chitando has said.

Chitando was responding to questions from miners at a Zimbabwe Miners Federation (ZMF) event held on Wednesday at Rainbow Towers in Harare. The Minister revealed that an inter-ministerial committee was formed to investigate the unfair allocation of claims ceded to the government.

“Zim Alloys, ZIMASCO had claims ceded to the government. On these claims, they were tributary miners working and producing chrome for over 15 years. When these were ceded, the miners were given the notice to vacate after other miners rushed to peg the same claims. We have created an inter Ministerial committee to investigate this unfair allocation of chrome claims. The investigations will be on a case by case basis and I’m confident we can conclude this by year-end,” Chitando said.

Chitando yesterday addressed miners at the ZMF Stakeholders Special meeting and hailed the organisation for taking a more formalised approach to doing business.

He touched on pressing issues in the mining industry including Mining title allocation, the 23 Billion dollar Industry, the gemstone sector, the cadastre system, disputes and many more.

The Minister received a standing ovation after the address and it was quite evident he had hit the right notes.

 

Government moves to speed up mining title allocation

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The government through the Mines and Mining Development Ministry (MMMD) is moving to speed up mining title allocations a cabinet Minister has said.

This was revealed by Minister of Mines and Mining Development of the Republic of Zimbabwe Honourable Winston Chitando at a Zimbabwe Miners Federation (ZMF) function held in Harare yesterday.

Chitando admitted that the Ministry was overwhelmed by ballooning mining title applications which traditionally numbered 2000 – 3000 per year to which it now ranges to around 14 000 applications.

“Mining Title applications were traditionally around 2000 per year but now the number has drastically increased,” said the Minister.

Chitando also said the Ministry was allocated new vehicles to complement efforts to speed up Mining title allocation.

Answering the question on mining disputes, the minister pointed out that the country will be soon introducing a cadastre system which is 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 said the Cadastre equipment will be in the country by June of this year.

Mining Title issuance has been a hot issue in the Zimbabwe mining industry with some miners claiming to have applied for titles as far back as 2012 but nothing has materialised even after reapplying.

Cadastre system equipment to be in the country by June, Chitando

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Mines and Mining Development Minister, Honorable Winston Chitando has said that the equipment for the implementation of the cadastre system will be in the country by June 2021.

Speaking at a Zimbabwe Miners Federation( ZMF) event at Rainbow Towers, Chitando said regardless of the mishap that transpired last year when the cadastre was to be released, there is currently a transparent commitment towards the release of the cadastre system.

“There was a delay but the most important thing is there is a very clear path going into donating towards the cadastre system,” the minister said.

Answering the question on mining disputes, the minister 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.

Moreso, Chitando mentioned that economic transformation in the country will not happen overnight, rather it is a process that needs commitment.

“Economic transformation is a journey, a process, but the most important thing is to follow the process. Once started, once followed, we will definitely go there.”

During the meeting, Chitando mentioned that ZMF and the Chamber of Mines are crucial in making the 12 billion mining industry achievable by the year 2023.

A Cadastre is normally a parcel-based, and up-to-date land information system containing a record of interests in land (e.g. rights, restrictions, and responsibilities).

Peter Dale and John McLaughlin (2000) say that in most countries, legal systems have developed around the original administrative systems and use the cadastre to define the dimensions and location of land parcels described in legal documentation.

The cadastre is a fundamental source of data in disputes and lawsuits between landowners. Land registration and cadastre are both types of land recording and complement each other. (Jo Henssen, Basic Principles of the Main Cadastral Systems in the World).

Notorious Chinese man Zhu cheating locals out of gemstones

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A Chinese man known as Mr. Zhu is allegedly reported to be cruelly cheating locals out of gemstones and hurriedly pegging claims where the locals would have been working on.

A Mr. Mberikwazvo approached Mining Zimbabwe after reading a story we published yesterday of a man who got two loaves and Super as a token of appreciation and confirmed he knew Honamombe and he himself was a victim of Zhu’s shenanigans.

Mberikwazvo alleged that Zhu is a gemstone buyer who is usually approached by local gemstone miners and dealers. Mberikwazvo said to ensure he tricks the seller he buys a small quantity at a ridiculous amount and rejects the rest of the stones. He then tells the seller to show him the location of the stones so that he can show the seller the correct stones he prefers.

“I went to Zhou’s home at Philadelphia flats in Borrowdale with clear and specimen quartz gemstones. He then purchased a kg at $3 which was only a disguise to make me think he was a genuinely interested dealer. Zhou then said we should go to the mine location at Tsanzaguru in Rusape after expressing interest in buying more. He bought me sadza, chicken and a beverage then we went to the mine site”.

When we got to the mine site he rejected all stones saying NO GUDHA (no good), RUBBISH,” said the Mberikwazvo.

Mberikwazvo then left the mine in the company of Zhou late and his driver known as Tino the same afternoon only to hear that Zhu was seen at the very mine at 6 am the following morning.

Zhu struck once again buying a truck full of the quartz from the people at the mine excluding Mberikwazvo at a paltry US$20.

Zhu suspected to be an ex-Army officer evidenced by the uniform he wears is reported to use the same modus operandi on seemingly uninformed locals.

Zhu reportedly travels around in the company of his driver known as Tino.

Mining Zimbabwe sent Zhu a message for his comment but until the time of publishing, he had not responded.

Rushwaya donates compressors, says mechanisation a major huddle

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Zimbabwe Miners Federation (ZMF) President Ms. Henrietta Rushwaya said the main huddle in the Artisanal Small-scale Mining (ASM) sector is the lack of mechanization and has therefore promised to assist miners without equipment.

By Shantel Chisango

Speaking at a ZMF meeting held on Tuesday at Rainbow Towers, Rushwaya said lack of mechanization remains a huge challenge in the sector.

“Mechanisation remains an issue of huge concern in the small scale industry.” she lamented.

Rushwaya went on to donate compressors to several miners which include Mberengwa Miners Trust, Guinea Fowl Mines Trust, Great Zimbabwe Miners Trust and urged miners to up their game in order to contribute to the 23 Billion Mining Industry by 2023.

She further urged miners who need assistance with equipment to approach the ZMF so that they may be assisted where possible.

However, Rushwaya emphasised the importance of organizing groups in their constituencies which encompass every miner that needs assistance so that it makes work easier for the ZMF.

Furthermore, she stated that Exclusive Prospecting Orders (EPOs) remain a constraint to miners, especially in Matebeleland areas.

She mentioned that most miners in Matebeleland do not have any land to mine because of prohibitive EPOs.

In a move meant to push the ZMF towards a more business approach, yesterday saw the Federation amending part of its constitution in an event attended by General Council and Executive members from across the country.

BREAKING: ZMF amends constitution

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The Zimbabwe Miners Federation (ZMF) has amended its constitution at a meeting held at Rainbow Towers (formerly Sheraton) attended by General Council and the Executive Members.

Below are some of the resolutions:-

Executive Membership: Tenure has been adjusted from 3 to 5 years concluding with the end of the annual General Council Meeting of The Federation. Upon the expiry of such period, such member shall automatically retire from office and shall be eligible for nomination and re-election as a member of the Executive provided that he retains his qualification.

Vice President: The Federation will now have a single Vice President.

Regional reps: Ammended to eight from the previous seven representatives.

PLWD: Amended to include the Secretary for the Disabled in The National Executive after complaints that the disabled felt segregated.

More to follow…