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Covid-19 hits Hwange mining firm

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A mining firm based in Hwange has become the latest to be hit by the ravaging Covid-19 pandemic after 25 employees tested positive, the Ministry of Health and Child Care said on Saturday.

The cases, accounted for the 46 new cases that Zimbabwe recorded in the past two days, to take the country’s overall tally of confirmed infection cases to 38 064.

“The 18 cases from Matabeleland North are all from a mining company in Hwange and the outbreak is localised,” the health ministry said, without identifying the firm.

Amid fears of a potential third wave, the country has in the past two weeks seen a trend of institutions, especially schools recording high cases of infections.

Most of the cases have however been mild and were immediately contained.

The new cases come as President Emmerson Mnangagwa has appealed to schools and businesses to continue following laid down Covid-19 protocols to avoid the spread of the virus.

Government last month re-opened the economy after a hard lockdown that was aimed at containing the spread of the killer respiratory disease, which has since last March claimed 1 556 lives.

Mining companies were however not affected by the lockdown as they were designated essential services and were allowed to continue operating.

Zimbabwe is already undertaking a Covid-19 vaccination programme since mid-February and slightly over 300 000 have so far been inoculated.

New Ziana

Major govt deals must be publicised

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LAST month, the government signed the Petroleum Exploration Development and Production Agreement (PEDPA) with Invictus Energy, which has been exploring for oil and gas reserves in Muzarabani, Mashonaland Central province.

The agreement marked an important step towards the sinking of the first test wells to see what exactly lies underground.

But something was amiss.

Both parties surely know the right thing to do, and if they forgot that resource exploitation issues require high levels of transparency, we take this opportunity to remind them. Invictus, the Australian miners, who are undertaking the exploration, are bound by transparency regulations as demanded by the Australian Stock Exchange where it is listed, while the Zimbabwean government knows that it must take everyone on board to avoid lack of stakeholder buy-in as this important deal progresses.

But none of the parties took the important step of disclosing exactly what they agreed on and what’s in it for the people of Zimbabwe, especially villagers in Muzarabani.

This is potentially a spot of potential conflict between government and the community, and the community and Invictus if the agreement is not made public.

Invictus has already indicated that the claims that oil or gas, to the extent never seen on the continent before, could be lying untapped underneath the earth’s crust and the people are waiting with bated breath.

That is why it is important for this agreement to be publicised and even provided to people in Muzarabani in print to apprise villagers on what government is planning about the resource, and how they stand to benefit.

Anything short of this would not be good enough.

It will be another way of government telling Zimbabweans that what lies underneath the earth’s crust is not theirs, but a preserve of the elite.

Zimbabweans need no reminding about what happens when people are excluded from participating in the exploitation of natural resources found in their localities.

The bloodshed that took place at Marange diamond fields is one such example, and the ongoing tug-of-war between police and gold panners is yet another.

The last thing Zimbabweans expect is to wake up one morning to witness oil oozing out and be told that it has already been mortgaged. We urge government to do the right thing, which is exercising transparency. Even if it is not found, the people must be fully informed to understand that there is nothing to expect from Muzarabani.

NewsDay (Opion)

ZMF to hold elections as tenure of office expires

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Zimbabwe’s umbrella body which represents small-scale and artisanal miners, the Zimbabwe Miners Federation (ZMF) has set the dates for General Council and regional reps elections.

Rudairo Mapuranga

According to ZMF Chief Executive Officer, Mr. Wellington Takavarasha the office of the current executive and general councilors will expire on the 14th June 2021 paving way for elections from the 28th of May to the 1st of June 2021 which will be presided over by the National Executive.

“The tenure of office for the current National Executive, General Council Chairman, General Council Secretary, and Regional Representatives expires on 14 June 2021. ZMF will hold the Provincial Council Elections from the 28th of May to 01 June 2021. This is in accordance with Article 19.7.3 of the ZMF Constitution which states that;

“There shall be elected at a Provincial Conference specifically convened for that purpose which shall be presided over by the National Executive,” he said.

The positions being contested for are;

  • Chairperson
  • Vice-Chairperson
  • Secretary
  • Treasurer
  • Secretary for Women Affairs
  • Secretary for Youth
  • Secretary for the Disabled
  • Secretary for Minerals
  • Secretary for war-veterans

Zimbabwe Miners Federation (ZMF)

The Zimbabwe Miners Federation (ZMF) is a government initiative to effect sustainable growth and meaningful transformation of the artisanal and small-scale mining industry. Its current President is Ms Henrietta Rushwaya. ZMF is Zimbabwe’s largest mining body with over 1.5 million members, that contribute an annual average of 60% of the total gold deliveries to Fidelity Printers and Refiners (FPR) the country’s sole gold buyer.

Diamond stash worth billions sold off after demand roars back

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The diamond industry’s collapse last year left the biggest producers with billions of dollars of uncut gems stashed away in safes. Now, in a matter of months, they’ve suddenly found buyers.

The huge stockpile was built up when the diamond world came to a standstill during the height of the pandemic, stoking fears that gems amassed by the biggest miners could hurt the sector for years. But rampant demand from the middlemen who cut, polish and trade stones has all but wiped out the stash — and remarkably as top producers De Beers and Alrosa PJSC raised prices.
It’s been a rapid turnaround as cutting centers in India and Antwerp rushed to replenish supplies they’d been unable to buy during the worst of the crisis. At the same time, demand jumped amid surprisingly good festive sales, with consumers unable to book vacations spending more on luxuries such as gems.

De Beers this week said it sold 13.5 million carats of diamonds in the first quarter, almost double the amount it mined in the period, signaling stock drawdowns. While the No. 1 miner doesn’t report inventories, it indicated to customers in recent weeks that stockpiles have returned to normal levels, according to people familiar with the matter who asked not to be identified. The company declined to comment.

Russian miner Alrosa’s inventories tumbled about 60% in six months to 12.8 million carats by the end of March, the lowest in almost three years.

Managing supply has been a headache for the sector ever since De Beers ended its monopoly around the turn of the century. Inventories ballooned during the 2008-09 financial crisis and again in 2013, and each time subsequent stockpile sales saw polished gems build up, putting huge pressure on the industry’s midstream.

THE BIG QUESTION IS WHETHER THE INDUSTRY WILL BE DISCIPLINED ENOUGH NOT TO SELL TOO MUCH TOO SOON

Yet the top miners have been able to raise prices this time round, after significantly cutting production last year and buoyed by renewed demand from manufacturers and traders. De Beers has been hiking prices since the end of last year, back to pre-coronavirus levels. It sold more than $1.6 billion in rough gems in its first three sales of 2021, the most since 2018.

“Alrosa and De Beers have managed to clear the excess inventories built over the course of 2020 and without hurting polished-diamond pricing that continues to advance,” Liberum Capital analyst Ben Davis said. “This bodes very well for the remainder of the year to clear that much stock in such a short space of time.”

There are still plenty of risks. The start of the year is typically busiest because of restocking, and any slowing in sales will pressure prices again.

In India, the industry’s factory engine room remains vulnerable to a ferocious new coronavirus wave. Concerns are mounting that local production won’t be able to meet demand from key Chinese and U.S. retailers, and some manufacturing has already been curtailed, according to people familiar with the matter. That could create shortages, but may also cut rough-diamond demand.

While the speed of the stockpile drawdown caught many by surprise, the big question is whether the industry will be disciplined enough not to sell too much too soon.

“The industry has to use supply and pricing in tandem,” said Anish Aggarwal, a partner at adviser Gemdax. “That’s been the big takeaway from this crisis.”

Bloomberg News(By Thomas Biesheuvel)

Dinson Colliery commences coke production

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DINSON Colliery Company has started heating up its furnace in preparation for the start of metallurgical coke production next month at the US$30 million plant.

A subsidiary of Chinese-owned steelmaker, Tsingshan Holding Group, Dinson Colliery Company is one of the nine new coal mines and coking plants that were visited by President Mnangagwa in July last year and is set to become the largest and most advanced coke oven in Zimbabwe.

The country expects to be a net exporter of power by 2023 through contribution of coal mining, coke production and energy generation capital projects mainly situated in Hwange, Matabeleland North.

Construction of plants at Dinson Colliery Company is in two phases and about US$30 million has been invested in the first phase with the same amount set aside for Phase Two.

The company started building its plant in 2019 but progress was stalled by the outbreak of Covid-19 until the Government engaged its Chinese counterparts to facilitate the return of experts who had been locked in the Asian country to complete the projects.

A visit by a news crew to the plant located on the foot of a nearby plateau between Dinde and Lukosi about 20km outside Hwange town on Friday, showed that significant progress had been made as workmen were making final touches on the plant.

Besides its core coke making business, Dinson Colliery has added a spectacular sight as its modern administration buildings and plant suddenly crop up from within huts to welcome travellers into Hwange.

In an interview, the company’s administration manager, Mr Steven Xing, said the first phase will see 200 000 tonnes of coke being produced per year, with production sent to double after completion of the second phase next year.

“Our plant started July 2019 and we are almost done as we have already started to hit our furnace. Our plan is that by end of next month we start to produce coke and our capacity will be 200 000 tonnes for phase one,” said Mr Xing.

He said production would rise to 500 000 tonnes per year after completion of Phase Two. The company’s core product is coke while tar and other chemicals will also be produced in due course.

Xing said Dinson Colliery will be getting its supplies locally in Hwange from Zambezi Gas, Hwange Colliery and some Chinese companies. He said part of products will be sold to sister company Afrochine in Selous with some being exported outside the country.

Dinson Colliery employs about 50 Chinese experts and 230 locals in various departments. On Friday the company partnered Green Shango Environment Trust to plant citrus and exotic trees within its premises as part of its corporate social responsibility and commitment to reclaiming land to protect the environment form degradation.

 

Business Weekly

HWANGE Colliery to revive coke oven battery, gas plant

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HWANGE Colliery Company Limited (HCCL) says plans are underway to refurbish and re-commission its defunct coke oven battery and gas plant as part of the company’s turnaround strategy.

The giant colliery hopes to consolidate its recovery mode through production of high value products with coking coal and gas being key for top-end domestic market and exportation to lucrative regional and international clients.

The collapse of Hwange Colliery’s coke battery in recent years had seen several new players invading the field, which means the company will now have to compete for supplies to key markets.

To buttress the rebound mode, which is evidenced by steady improvement in monthly output in 2020, HCCL has invited tenders from interested bidders to undertake the refurbishment of the coke battery and gas plant.

“As part of its turnaround plan, Hwange Colliery Company Limited intends to: 1. refurbish and commission the mothballed coke oven battery and coke oven gas plant and restore the coke oven gas supply pipe to Hwange Power Station, 2. Build a new recovery type coke oven battery on a design, procure, construct and commission basis,” said the firm in a public tender invitation notice.

“Hwange Colliery Company Limited, therefore, invites separate bids from capable bidders in respect of items 1 and 2 above.”

The company has said interested bidders should demonstrate financial and technical capabilities and expertise to provide the required services relating to construction of recovery type of coke oven batteries or similar plant and equipment.

Located in Matabeleland North province, HCCL is a public listed company operating in the business of exploring, mining, processing and marketing of coal, coke and related products.

Due to its strategic importance in the energy and power development sector, the Government rescued the firm from collapse by putting it under temporary administration in 2018. Prior to this, HCCL was in a state of collapse as creditors were swooping on it through a string of litigations. Workers had also gone for several months without pay.

During a visit to the mine by President Mnangagwa last year in July, acting managing director, Dr Charles Zinyemba, paid tribute to the Government for rescuing this company by putting it under administration.

With the interventions being implemented under the guidance of the Government, Dr Zinyemba has said production was expected to rise above 225 000 tonnes per month with plans to ramp it up even further.

HCCL has three mines, one underground mine and two open cast mines. These are underground Three Main Mine and two open cast mines, JKL and Chaba.

The three coal mine reserves are projected to last about 40 years at current mining rate, which could be reduced to 20 years should plans to increase underground mining sections to three succeed.

The coal sector is critical in achieving the US$12 billion mining sector milestone by 2023.

Business Weekly

Man Kills Brother Over 0.02 Grammes Of Gold

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A NYANGA man reportedly assaulted his brother to death over 0.02 grammes of gold which the siblings had panned in neighbouring Mozambique.

Police have confirmed the incident.

Manicaland provincial deputy police spokesperson Inspector Luxson Chananda said last week, Samuel Sokiri (27), Simudzai Sokiri (31), Freddy Mukonowamwere and Alois Nyamatanga were drinking opaque beer at Chimusasa Business Centre.

They later decided to go home and retire for the night.

However, on their way home, the suspect, Samuel Sokiri had a dispute with his brother Simudzai over 0.02 grammes of gold they had panned in Nyamutombwe area, Mozambique.

The two exchanged harsh words over the issue until the argument degenerated into a fist fight.

Mukonowamwere tried to restrain them but failed.

“The suspect started assaulting Simudzai with fists and he fell on the ground and became unconscious,” said Chananda.

Samuel then left the scene together with Mukonowamwere and Nyamatanga leaving the now deceased lying on the ground unconscious and proceeded home.

“The deceased was spotted by Chimusasa Kembo (67) who was coming from Chimusasa Business Centre. The deceased had some head and face injuries,” Chananda added.

Kembo rushed to Samuel’s home and informed him Samuel and his wife that Simudzai was in great pain.

Samuel’s wife Nyarai Nyamuwe rushed home and managed to assist Simudzai to reach his home.

However, Simudzai succumbed to the injuries the following day and Kembo reported the matter at Ruwangwe Police station who attended the scene leading to the arrest of Samuel.

Chananda urged members of the public to seek counselling whenever they found themselves in disputes with other parties.

“People should solve their problems amicably rather than taking law into their own hands,” he said.

NewZimbabwe

Fidelity official gold buying prices Tuesday 27 April 2021

Fidelity Printers and Refiners (FPR) official gold buying prices Tuesday 27 April 2021

SG 90% AND ABOVE $51 027.93/kg
SG ABOVE 85% BUT BELOW 90% $50 172.71/kg
SG ABOVE 80% BUT BELOW 85% $49 032.42/kg
SG ABOVE 75% BUT BELOW 80% $48 462.28/kg
SAMPLE BELOW 10g BUT ABOVE 5g  $49 602.57/kg
FIRE ASSAY CASH $51 313.00/kg

Cash available. Fidelity Printers and Refiners prices will be changing daily in relation to world market prices.

Contact FPR

No. 1 George Drive, Msasa, Harare, Email: [email protected], Telephone: +263 242-486670, +263 242-486694, +263 242-487131, +263 242-447810-5

Govt must not worship capital at the expense of human rights

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THE public spat between government and villagers in the Dinde area of Hwange over the disputed coal-mining project run by Chinese miners makes sad reading and once again shows ZANU PF’s tendency to ride roughshod over the rights of citizens it purports to safeguard.

The project, run by Chinese firm Beifa Investments (Pvt) Ltd, has been failing to take off the ground since 2019 owing to resistance from villagers who fear the coal-mining venture would eventually displace them from their ancestral land.

But Matabeleland North Provincial Affairs minister Richard Moyo had the guts to tell the jittery villagers that the project would go ahead with or without their consent, saying those who dare resist would face the full wrath of the law. His argument was that the project is of national importance as it seeks to generate employment as well as electricity for the country.

The Zanu PF honcho added that government would not hesitate to deploy armed police to “protect” the investor.  But the question is: if the villagers don’t see value in the project why should government bureaucrats foist it down their throats?

The development comes shortly after attempts by government to evict more than 12 000 families from Chilonga area in  Chiredzi  to make way  for a lucerne farming project run by a private dairy company faced similar resistance.  Even though the villagers have resisted the move, it appears  the second republic is determined to forge ahead with the project as it seemingly respects capital more than citizens’ rights.

While we have no problem with investment coming into the country especially at a time when the country is facing an economic crisis characterised by skyrocketing cost of living, three digit inflation, massive retrenchments and industrial capacity utilisation of less than 50%. However, investments must not come at the expense of the livelihoods of the same communities they are supposed to serve.

The crass and heartless treatment of the villagers  by government when investors move into an area is self-defeating as the very people who are supposed to be the major beneficiaries of the investment end up being the major victims of the same.

Reports of  graves being desecrated in the name of investment as well as attempts to  have investors carry out mining activities in wildlife conservancies smacks of desperation by a cash-strapped regime.

As the Centre for Natural Resources Governance director Farai Maguwu observed: “Not a single community affected by mining is smiling in Zimbabwe, but the rich and powerful are ready even to spill blood to impose organised criminal gangs on communities. Any project or investor that is imposed on a community will not benefit that community. It is organised crime and will benefit criminal networks. Dinde is a replay of Marange (diamond fields).”

 

NewsDay

Mine workers demand US$600 living wage

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THE Zimbabwe Diamond Allied and Minerals Workers Union (ZDAMWU) has demanded wage reviews between US$400 and US$600 for mine workers and expressed concern over the delay by employers to pay salary arrears at a time when second quarter wage negotiations should have been concluded.

ZDAMWU secretary-general Justice Chinhema said the second-quarter wage negotiations were underway at a time when most mines had failed to pay first-quarter salary arrears.

“The reason for this travesty of justice on mine workers is because the first negotiations were concluded late in March when the payroll had already been processed. It is disturbing to note that some mines are already applying for exemptions not to backdate the salaries,” Chinhema said.

He said some mine workers’ unions were also shortchanging the workers in their negotiations on wage increases at the National Employment Council.

“It is a known fact that workers are expecting a second-quarter increase effective on April 1, but 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 their back pays are fast fading.

“Our resolution as ZDAMWU is that as long as the mining sector is still paying these slave wages, workers will not rest. As mine worker representatives we are not going to tire in pushing for a living wage in the range of US$400 to US$600.

“In addition, mine workers are also so disappointed by the failure to consider the COVID-19 allowances where the sector was the only industry that remained on the ground and sustained other sectors during the lockdowns,” he said. Chinhema said his union was encouraging workers’ committees to bargain at works council level as waiting for the NEC was not helping.

 

NewsDay