Mining ZimbabweLatest Mining News, Policy and Industry Updates

The Sunday News

MINE workers are demanding a minimum US$200 per month as Covid-19 risk allowances arguing the mining sector is one of the key economic cogs not spared from the effects of the coronavirus pandemic.

The Zimbabwe Diamond and Allied Minerals Workers (ZDAMWU) general-secretary Justice Chinhema writing to National Employment Council for the Mining Industry Tuesday demanded that employees in the sector must be given Covid-19 risk allowances urgently.

“Mine industry workers have become foot soldiers of our country’s economy hence the government has declared the sector an essential service sector,” Chinhema said.

He said the disbursement of the monthly Covid-19 allowance must be treated as a matter of urgency.

“With the rise in reported cases of Covid-19 in Zimbabwe, reports from our members across the country and statistics confirming that most mines now have positive cases, it is high time as a sector we introduce Covid-19 allowance and massive tests across all mines to motivate workers to work under this difficult and hazardous environment and contain the ever increasing spread of Covid-19,” said Chinhema.

He said if the government’s US$12 billion mining economy was to be achieved, there was need to motivate workers in the sector.

“With the US$12 billion tag for the industry, workers need to be motivated than to work under protest. With the imminent 2021 first quarter wage negotiations, the mining industry having been accorded essential service status, it’s time we include the Covid-19 allowance over and above the minimum wage like what all other essential service providers are doing, the government included.”

Chinhema said mine workers were proposing a minimum of US$200 per month as Covid-19 allowance across the board subject to review from time to time.

“This is not about money but a risk allowance associated with the risk that is involved during a pandemic.

“Besides the allowance, workers are expecting a wage increase in the range of US$400 to US$600 equivalent or 100% US$. The prices of basic goods and services charged around the mining districts in Zimbabwe are mostly pegged in US$ especially districts that have no big supermarkets,” he said.

Chinhema added ZDAMWU was compiling statistics indicating the needs of an ordinary mine worker and his family including basic food items and social services.

“Any wage negotiations that do not use actuals as required for a worker to survive will not be accepted because it’s a slave wage. Mine workers have always said they deserve a wage that is in line with the actual value of minerals mined and in line to other regional scales.”

New Zimbabwe

Two mine workers have lost their lives in an accident which occurred along Angwa River in Hurungwe district, as mishaps involving small scale miners continue unabated.

Over the past few months, Zimbabwe has been experiencing mine accidents, mostly at illegally run small-scale mines that that have resulted in the death of several miners.

The accident along Angwa River was reported to the police and the other relevant authorities in the area including MP Hurungwe North, Ability Gandawa, who assisted with some funds to rescue some of the trapped bodies.

But, the accident, which happened in December 2020, was not reported to the Ministry of Mines and Mining Development, as players feared the mining area would come under government spotlight, insiders said this week.

The area is known for riverbed mining for close to two decades, despite government banning alluvial and riverbed mining several years ago.

A well-placed source and an eyewitness confirmed to Business Times during a visit to the accident site that the mine accident claimed two people.

But it was not yet clear if there were still more people trapped inside.

“Gandawa is aware of this incident and even reports were made to the police, but this matter was swept under the carpet for fear of spotlight because top people are protecting the place as they are doing alluvial

and riverbed mining,” a source told Business Times.

He added: “Top people in government and security services have been protecting this area to advance their alluvial gold mining activities and this case could not be reported.

Villagers were also gagged from reporting this matter hence the reason why it could not receive any publicity. No post-mortem was done and the two deceased who were brothers were buried just like that.”

The area is believed to have rich deposits of gold. It is estimated that lucky gold panners make close to US$500 per day.

Gandawa confirmed the mine accident.

“ZRP was made aware of the incident and they even attended the funeral. I would want to admit that the issue was never taken far,” Gandawa told Business Times.

Gandawa admitted the river has attracted a lot of mining interests despite the ban on riverbed gold mining.

Mines and Mining Development permanent secretary, Onismo Moyo, said the Provincial mining director, for Mashonaland West Province has not been made aware of the accident.

He promised to revert with facts.

He had, however, not done so by the time of going to print.

Zimbabwe Miners Federation spokesperson Dosman Mangisi said the association had not been notified of the accident and he would have to check with the miners on the ground and confirm. He had not done so by the time of going to press.

Since September last year, Zimbabwe experienced series of fatal accidents that have occurred mainly

at abandoned gold mines around the country, with more than a dozen people still trapped underground and unlikely to be retrieved alive.

In November last year six illegal miners, including four from one family, were trapped underground when a mine collapsed in Matshetshe, Esigodini, and Matabeleland South Province.

During the same month another mine disaster occurred at Ran Mine in Bindura, Mashonaland Central Province, resulting in at least 10 illegal gold miners trapped underground after a mine shaft collapse.

In December, three miners died when two ore wagons fell into an inclined mineshaft and crushed the miners at Kunyu mine, Mudzi in Mashonaland East Province.

Mines and Mining Development minister, Winston Chitando, has expressed concern over the rising number of mine accidents.

Business Times

Prospect Resources says it will forge ahead with its Arcadia Lithium project in Zimbabwe despite the country’s risk profile and has put in place measures to minimise potential impact of the sovereign risk.

Assays carried out last year have confirmed that Arcadia has the potential to be among few lithium mines in the world to supply premium priced spodumene and petalite used in the production glass and ceramics.

Zimbabwe’s sovereign risks relate particularly to illegal sanctions by western countries and huge external debt.

These have scared off some investors which views Zimbabwe as unsafe destination for investment.

The group incoming non-executive chairman Mr Mark Wheatley said they were excited by the prospect of “high purity products” from Arcadia, and have put in place measures to insulate themselves from sovereign risk in the country of operation.

“Prospect will provide customers diversity away from Australian supply, the ability to deliver high purity products and the upside of staged development with market expansion.” “The company has also developed strategies to manage Zimbabwe sovereign risks,” he said.

Prospect acquired its now flagship Arcadia Lithium project mid-2016. The project has a anticipated annual supply of up to 100 000 dmt per annum of ultra-low iron petalite concentrate.

The Australian firm is making headway towards bringing Arcadia to full production. By the close of 2019, the group had agreed with African financier Afreximbank, for the latter to arrange and syndicate a US$143 million project finance debt facility, with the bank providing US$75 million of the facility.

Afreximbank has extensive experience with Zimbabwe, and has been extending facilities to the country despite prevailing risks.

Prospect has also signed an MoU with Uranium One Group for potential offtake and equity investment.

Prospect sees immense value being derived from the quality of Arcadia’s output.

Said managing director Mr Sam Hosack last year:

“The opportunity for Prospect Resources to produce a technical grade ultra-low iron blended product of Arcadia spodumene and petalite, has the potential to deliver a fit for purpose product for glass ceramics customers and achieve higher sales prices across Arcadia’s lithium products.

“We expect such a move should provide a positive economic uplift, compared to simply selling the Arcadia spodumene to the chemical market.”

Meanwhile Mr Wheatley says he is excited at joining Prospect Resources.

“I am delighted to join Prospect as it seeks to develop the Arcadia Lithium Project. What attracted me to Prospect is the high calibre and experience of the management team, the quality of the Arcadia asset, the exposure to European markets, off-take relationships, and supportive major shareholders,” he said.

Mr Wheatley has over 15 years of director and chairman experience with exposure predominantly across gold, copper and uranium sectors.

He has previously held non-executive chairman positions with Norton Gold Fields, Xanadu Mines and Gold One International.

Mr Wheatley has also held a number of non-executive director roles including St Barbara and was a founding director of Uranium One Inc.

He is currently a non-executive director of Ora Banda Mining and Peninsula Energy.

His experience includes growth through the financing and development of projects, and he has been instrumental in a number of successful merger and acquisition transactions.

Wheatley holds a Bachelor of Engineering (Chemical Engineering) from the University of New South Wales and a Master of Business Administration from West Virginia University.

The Chronicle

For 62-year-old, Mr David Nhambinda, life has not been what he had hoped to experience on retirement after working for one of the biggest steel producers on the continent.

When he joined the now defunct, Zimbabwe Iron and Steel Company (Zisco), the company was the pride of Africa as it boasted of supplying almost every inch of steel in the region.

Working for such a company, Mr Nhambinda hoped that after retiring, he would enjoy his life as he watched his children and possibly grandchildren grow.

Life has however, turned for the worst for the pensioner who can hardly make ends meet.

Mr Nhambinda, together with his six children and wife, stay under squalid conditions in the dusty suburb of Torwood, Redcliff.

He is struggling to make ends meet and is relying on well-wishers and some of his children who are doing menial jobs as most of them failed to complete their education.

Operations at Ziscosteel suddenly took a tumble and things changed before the company closed down operations in 2008 at the height of hyperinflation.

The operational challenges resulted in the company failing to pay its workers as well as remit pensions.

Mr Nhambinda represents about 2 000 or so former Zisco workers who are wallowing in poverty due to the company’s demise.

Ziscosteel became incapacitated to remit both company and individual pensions contributions, leaving the retired workers in abject poverty.

In 2017, Government took over the Zisco debt and managed to pay former workers all their outstanding salaries.

Government also negotiated and made arrangements with the Zimbabwe Revenue Authority and local authorities that were owed by the steel manufacturing firm but the issue of pensioners could not be resolved.

The company which used to employ more than 5 000 workers during its peak in the late 1990s, is now defunct and has failed to pay pensions.

While some blame the demise of the company to mismanagement, some also blame it on the economic failures.

Zisco acting board chairman, Engineer Martin Manuhwa said the issue was giving him sleepless nights.

“The matter really concerns my board that some of our gallant former employees are facing serious difficulties.

“We are, however, in talks with relevant authorities so that the issue is resolved,” he said without shedding more light.

The Insurance and Pensions Commission (Ipec), recently gave the former workers a ray of hope, stating that they might start receiving their pensions anytime soon.

“Kindly note that the commission approved dissolution of Zisco pension fund since the fund was considered to be in an unsound financial condition.

“The advert that you referred to was published in compliance with Circular 10 of 2019, which governs the process of dissolving a fund. The call was for former workers to approach First Mutual and inspect a schedule that shows the amounts that are due and payable to them,” said Ipec pensions manager Ms Tariro Mateisanwa.
She said the authorities were in the final stages of valuation.

“Please note that payment of benefits is yet to commence as the fund is in the process of finalising its actuarial valuation.

“Once the valuation is finalised and submitted to Ipec, for assessment and approval, the fund will start paying benefits to members,” she said.

This comes as Ipec says about 50 000 pensioners could be wallowing in abject poverty while their unclaimed benefits amounting to $30 million lie idle at the pension benefit fund.

The country’s insurance and pensions’ regulator said this was largely due to financial illiteracy and lack of information by the pensioners.

The unclaimed benefits could be subjecting the aged to unwarranted poverty, a move that goes against the regulator’s mandate of enhancing economic wellbeing among the elderly and their dependents.

Labour expert Mr Japhet Moyo said there was need to formulate structures that monitor and make follow ups on such issues that are common across the country.

“This is a national issue and we need a holistic approach to tackle the problem. We have so many workers that are working for years but dying paupers.

“We might have the law but no one is there on policing and ensure that it is followed,” he said.

Going forward, Mr Moyo said Parliament should make follow-ups of such issues.

“For example, the Smith Commission was tasked to investigate how some moneys were rendered useless following inflation but no one bothered to look at the recommendations and the findings and let alone act on those recommendations,” he said.

The Chronicle