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Task Mine families feel let down as exhumation efforts are halted

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Task Mine families feel let down as exhumation efforts are halted

Rescuers at Task Mine have been ordered to stop exhumation efforts to allow the Mines Ministry experts to investigate the challenges associated with the collapsed mine as well as coming up with solutions to make the mine safe for working once more.

By Shantel Chisango

Speaking to Mining Zimbabwe, Chairman of the Mines Portfolio Committee, Honorable Edmond Mkaratigwa said the rescuers at Task Mine in Chegutu were instructed by the DA with instruction from Mines Ministry to cease the exhumation process so the ministry can take safety precautions with regards to the place.

“Task Mine was sealed so as to give time to the Ministry to investigate the problem and have mechanisms put in place so that detected hazards be addressed hence making the environment safe for working again,” said Hon Mkaratigwa.

He further added that it would be absurd to let miners continue operating considering the fact that the mine just collapsed a few months ago.

“It is inhumane to allow people to work in a situation in which some are trapped and still being rescued. Psychologically it must be traumatising,” said Mkaratigwa.

The halting of Task Mine operations has caused untold suffering among the parents of the people who died in the collapse.

Speaking to one of the parents whose child was the only one the rescuers managed to retrieve from the collapse, Mr Gwatidzo lamented that they are shocked by the halting of the rescue mission because they were expecting the rest of the bodies to be exhumed as soon as possible since one was recently found.

“I want the public to know that as parents we are not happy with what the Ministry has done since we were close to exhuming all the bodies before the Ministry ordered the halt.”

He further added that the Mines Ministry and Task Mine were reluctant in offering help and from day one the parents have been funding the operations to make progress.

“We have been asking for help but surprisingly all government sectors have never supported us.

“Since day one there was no seriousness in taking this as an emergency from CTTU, Task, Mines and the Government itself. This is my biggest concern because this work was not supposed to take such long but there was no support at all. Stakeholders and well-wishers “vakatiregerera veduwe” (Neglected us) until now we are crying for support. Does it mean if someone doesn’t have an office (he) is not a human being that is not worth listening to”.

On the 8th of September 2020, five miners got trapped underground after the shaft they were working on collapsed. One of the miners’ body was exhumed last week and subsequently buried a day after.

Mines Minister Winston Chitando is reported to have only visited the accident scene once.

ZMF’s plans to assist hit a snag after the arrest of its leader on allegations of attempted smuggling. Sources say that Rushwaya donated a substantial amount of money when she visited the site less than a month ago and had plans drum up support to fast track the rescue efforts. The ZMF interim leader has since remained mum on the issue.

Ziyambi in gold mine scandal

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Ziyambi in gold mine scandal

Justice minister Ziyambi Ziyambi has been sucked into a gold mine ownership wrangle in Chegutu amid reports he could have abused his office to arm-twist the David Whitehead Textiles Ltd judicial manager Knowledge Hofisi to grant him a mining consent letter, Newsday reports.

This followed reports that Hofisi had initially offered a consent letter to another mining syndicate, Zuvarabuda Empowerment Trust.

According to documents at hand, Zuvarabuda was granted permission to create a special purpose vehicle with David Whitehead and Chegutu Municipality for the Mines and Mining Development ministry to grant them a special mining grant.

In a letter dated September 21, 2020, addressed to Zuvarabuda directors, Hofisi wrote: “In our view, to ensure the smooth revival of the company, it is necessary to consent to mining activities as we did in November 2019. This will be mutually beneficial.

“We are, therefore, going to authorise David Whitehead to mine jointly with the Municipality of Chegutu and Zuvarabuda.”

Impeccable sources however, last week claimed Ziyambi had allegedly armtwisted Hofisi to issue another letter on November 5, 2020, to a mining syndicate, Tusk Mining, in which he has interests.

“We have information that Ziyambi is working with Dexter Nduna and Vengai Musengi under Tusk Mining Syndicate. We were shocked to see another letter of consent from Hofisi which also gives Tusk Mining permission to form a special purpose vehicle with David Whitehead,” the source said.

But Hofisi yesterday said: “I am not in office, if we can meet tomorrow (today)… If you can read the letter you are referring to, it can be an internal document consulting one of our directors not those at Zuvarabuda, but the new investor.”

Hofisi also dismissed allegations that he had been armtwisted by Ziyambi, saying: “Our office operates as independent and whatever decisions we make they are independent decisions. So Minister Ziyambi is not involved. What I know is that there might be two groups that want to be given attention on the issue that you are talking about”.

Contacted for a comment, Ziyambi denied any knowledge of the November 5, 2020 letter giving his syndicate permission over the David Whitehead gold claims.

“No comment, bring the documents to me. That is my comment,” Ziyambi curtly said.

The sources, however, alleged that initially Ziyambi, Nduna and Musengi submitted an application to Hofisi under the name NVZ syndicate which was turned down because it had no supporting documents.

“NVZ (initials for their names) syndicate failed to provide all the requisite documents to be awarded a consent letter. It was at this juncture that they thought of seeking a consent letter under Tusk Mining Syndicate,” the source added.

Hofisi, as the judicial manager for David Whitehead, had to consent to all mining operations that would take place on the privately-owned land.

The sources said the gold-rich area had potential to produce between four to six kilogrammes of gold per tonne.

Ironically, the Chegutu West legislator Nduna, who was until recently Ziyambi’s deputy in Zanu PF Mashonaland West province, was demoted to a mere card-carrying member for the next 12 months while Musengi is the province’s youth chair. Ziyambi has recently been in the eye of a storm, over his nasty divorce with wife Florence, a legal adviser in the Office of the President and Cabinet.

In recent weeks, Mashonaland West and Central provinces have seen a massive gold rush with people from all over the country converging to carry out artisanal gold mining operations.

Only last week, police had to deploy anti-riot police in Mazowe after it emerged that artisanal miners were taking over the Mazowe range.

NewsDay

Zimbabwe anchors US$12 billion industry on type 2 diamond

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Zimbabwe anchors US$12 billion industry on type 2 diamond

The government yesterday said it would anchor its US$12 billion mining industry economy on a rare and more expensive type two diamond set to be mined in its Malipati Diamond Projects in Matabeleland South and Masvingo provinces.

This was revealed yesterday by Mines minister Winston Chitando during a tour of Malipati Diamond Projects in Beitbridge.

The project was set up by Alrosa, a Russian diamond giant and the Zimbabwe Consolidated Diamond Company (ZCDC).

As a result, a diamond exploration camp is to be set up 80km north of Beitbridge and is envisaged to contribute US$1 billion to the mining industry.

Chitando said the diamond exploration camp would precede a large diamond mine that is expected to be established in Beitbridge, where kimberlite diamonds will be extracted.

He said the joint venture between Alrosa and ZCDC was expected to play a key role in the realisation of the US$12 billion mining industry target by 2030.

“The Malipati Diamond joint venture between Alrosa and ZCDC follows a government-to-government agreement between Zimbabwe and Russia. Alrosa is a known diamond giant. This will play a key role in the 2023 vision and at large the 2030 middle-income economy envisioned by his Excellency President (Emmerson) Mnangagwa,” Chitando said.

“The type two diamonds are nitrogen-free and attract a good price. We expect to make it to our 10 million carats target from a total of 40 special grants that we have,” he said.

Alrosa will have a 70% stake while ZCDC will have 30% shareholding.

Chitando said the development had been made possible by the amendment of the Indigenisation Act, which stipulated a 51:49 shareholding between locals and foreign investors which did not attract investment.

ZCDC board chairman Wellington Pasipamire said the type two diamonds fetched more on the market compared to other diamonds owing to their good quality.

Alrosa is the world’s biggest diamond producer, contributing 26% of world diamonds.

Chitando said the new diamond fields would create employment, adding that the Russians were in the process of installing a sophisticated automated washing plant that was being put in place by engineers from their country.

He said work on the new diamond plant had been stalled by COVID-19. NewsDay

Gold detectors under scrutiny

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Gold detectors under scrutiny

The Portfolio Committee on Mines and Mining Development chaired by Honourable Edmond Mkaratigwa has tabled a work plan to conduct a study on how environmental degradation behaviours including the use of gold detectors have impacted the environment across the country.

Of late, concerns have been raised that the environment in most mining regions, particularly those where alluvial gold operations are being undertaken by both primary and secondary producers have been extensively damaged.

Responding to written questions from Mining Zimbabwe, Honourable Mkaratigwa said:

“We recently resolved to engage with the Portfolio Committee on the environment to identify areas of synergy and overlap.

“However, we have also been disturbed by Covid as we have on our work plan a scheduled visit to sampled areas throughout the country with regard to environmental degradation and mining.

“The committee decided to broaden the study so that it encompasses the use of detectors and any other environmental degrading behaviours in their broadness for the purpose of achieving sustainability.”

He said the report with findings and recommendations would be tabled and debated accordingly in Parliament.
Among other environmental hazards, small-scale gold miners across the country were using harmful substances such as mercury to process gold.

It is against this background that the government through the Institute of Mining Research at the University of Zimbabwe was seized with research to establish how best the country can eliminate mercury use in gold processing by small-scale miners.

At present, Zimbabwe is among many countries that are yet to ratify the Minamata Convention of 2013 which places a ban on the use of mercury given the hazards it poses to human life and the environment.

The country has over five million artisanal and small-scale scale miners dotted across the seven gold mining regions namely Matabeleland South, Midlands, Matabeleland North, Mashonaland Central, Mashonaland East, Masvingo and Manicaland.

Gold is one of Zimbabwe’s major foreign currency earners accounting for between 60% and 70% export receipts that come through the mining sector.

Sanyati miners propose USD1500 RDC tax

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Sanyati miners propose USD1500 RDC tax

Yesterday Kadoma Miners Association and other miners operating in Sanyati District proposed USD 1500 in local authority levies, at the Sanyati Rural District Council budget consultations in Kadoma.

The council was proposing for the miners to pay USD 11 000 annually per unit, the Rural Councils Act defines a unit as an operation employing between 5 and 100 workers, thereafter every 50 people make another unit.

Sanyati Rural District Council did not clearly differentiate artisanal miners from large scale miners, the council proposed to levy artisanal miners at the same rate as miners.

Small-scale and artisanal miners (ASM) who attended the council meeting pointed out that the council was charging from thin air for the sake of meeting their financial obligations without taking into consideration how miners operate.

According to Zimbabwe Miners Federation ZMF) Mashonaland West province Chairperson Ms. Chiedza Chipangura, the council was not considering levying other miners in the area other than gold miners and have no database of miners operating in the area.

“Focus was just on gold miners only, the council was not aware of any base mineral miners in their area of jurisdiction therefore they had no proposal at hand for other minerals,” Chipangura said.

Council levies are used for, servicing of roads, construction of clinics, procurement of automated water browser, tipper truck.

The council has leasing facilities for tipper trucks, TLB and tractors which miners can hire at fees way lower than the private players.

Council has plots, business and residential stands for sale. Miners can register on the waiting list to be considered for investing in the same.

Other levies for rural district councils

USD24 000 for Chaminuka Rural District Council, USD 10 000 for Pfura RDC, in Chegutu its USD 1137.64 and in Ngezi USD 6000 per annum.

MMCZ to train small-scale miners REGISTER NOW

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MMCZ to train small-scale miners REGISTER NOW

Minerals Marketing Corporation of Zimbabwe (MMCZ) is in a bid to build capacity for artisanal and small scale miners from 16 to 20 November 2020 the state institution said in a press statement.

BY PRECIOUS CHIKURUWO.

The MMCZ will be hosting training for stakeholders from 16 to 20 November 2020 in the Karoi, Zvishavane, Gweru and Harare areas.

The training will be focusing on financial management, safety and health, mining as a business and environmental management.

The current discourse on small-scale mining in Zimbabwe has predominantly been a characterization of the current state of the sector.

The sector has remained of great economic importance since the pre-colonial times, especially in terms of its contribution to national output, employment, and poverty alleviation, from the efforts of pre-colonial small-scale miners several of the larger mines have developed.

However, its contribution to regional development has been limited.

Interested miners are required to register by sending the details below to WhatsApp number 078 440 2103 or email [email protected]

Name and surname, gender and province, the deadline for the registration are 10 November 2020 by 16:30. Miners to register after the deadline will not be considered.

See doc Training for small scale miners

Fidelity official gold buying prices Monday 9 November 2020

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Fidelity official gold buying prices Monday 9 November 2020

Fidelity Printers and Refiners (FPR) official gold buying prices Monday 9 November 2020

SG 90% AND ABOVE $55.84/g
SG ABOVE 85% BUT BELOW 90% $54.91/g
SG ABOVE 80% BUT BELOW 85% $53.66/g
SG ABOVE 75% BUT BELOW 80% $53.03/g
SAMPLE BELOW 10g BUT ABOVE 5g $54.28/g

FIRE ASSAY CASH to $56.15/g

 

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

Gold buying permits cancellation, is there a solution in sight

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Gold buying permits cancellation, is there a solution in sight

A local publication last week wrote an article alleging security service chiefs were concerned about the rampant gold smuggling from the country and had resolved that several licences will be cancelled and stakeholders will be vetted before another certificate is issued,” the publication said.

Whilst it is commendable that service chiefs are concerned about leakage questions Mining Zimbabwe has always raised arise once more.

Is a license cancellation the solution? Will the buyers then stop operating or will continue buying but without the required paperwork? Who will replace the void left by the buyers? Will Fidelity Printers and Refiners (FPR) increase its footprint in the country? 

Fidelity needs to be fully capacitated

Currently, Fidelity Printers and Refiners (FPR) website lists 11 branches outside Harare in Bulawayo, Gwanda, Kadoma, Mutare, Bindura, Gweru, Kwekwe, Zvishavane, Chinhoyi, Filabusi and Masvingo.

In an interview last year with the deputy Mines and Mining Development Minister Hon Polite Kambamura he stressed the need for a gold buying entity to create a mutual relationship with small-scale and artisanal miners.

According to the Deputy Minister, the state-owned gold buying utility should find a way to make themselves visible in gold mining areas in order to save the miners’ time.

“It is crucial for Fidelity to be present in all the areas where mining is taking place in order to beat illegal buyers”

“In Makaha area in Mutoko, there is no gold buyer which means that the miner has to travel to Marondera to sell, which to some extent is not practical considering that some can only produce a gram,” said the Honorable Deputy Minister.

In this case should buyers permits be suspended, a Norton miner will have to travel about 100km to Fidelity Printers and Refiners (FPR) Kadoma. The journey is time-consuming and miners will not be comfortable travelling such long distances daily to sell a few grams. Fidelity is also known not to buy anything less than 5 grammes meaning those with less will have to still find alternative markets.

Better long term solution

Possession of a License, Location and the availability of cash is a magnet that will almost guarantee Zimbabwe of higher gold submission from miners.

A fully capacitated Fidelity and an end to its monopoly is part of a long term solution to challenges currently faced in the gold mining industry. Fidelity Printers and Refiners (FPR) branches should be in each and every town where there is gold production and the government should ensure that the sole buyer never ever runs out of cash.

It is mind-boggling that a Gold rich area like Chegutu does not have a Fidelity branch and also Zimbabwe only has 11 branches of Fidelity in a country where gold is found in every district.

It is also highly unlikely that miners will bother going to the sole buyer if they will not be paid immediately after submitting their gold. It is also unlikely that unregistered miners, who apparently account for the bulk of ASM, will submit their gold to Fidelity for fear of victimization and arrest.

The ban or suspension of gold buying permits will automatically convert the former holders to official illegal buyers as there is no immediate solution to replace those who fail the vetting process. Fidelity like the Post Office needs to be everywhere and in the words of one of the most respected Zimbabwe Miners Engineer Chris Murove:-

“Fidelity needs to have a nationwide presence as close to the miners as possible. This helps a miner’s cash flow management” said Engineer Murove.

Deliveries to the country’s sole buyer Fidelity Printers and Refiners (FPR) have drastically reduced and smuggling is suspected to be the chief culprit. Fidelity Printers and Refiners (FPR) officials have denied knowledge of gold buying permits getting cancelled but should the permits be cancelled if there is no increase in buying centres we are just creating a new problem.

Experts warn of more trouble for mines

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Experts warn of more trouble for mines

Mining industry experts have warned that the sector will remain in the doldrums even after its executives gave it a clean bill of health in a Chamber of Mines of Zimbabwe (CoMZ) report released last week.

The CoMZ’s State of the Mining Industry survey said the industry’s captains were confident the sector was poised for growth in 2021.

It said capacity utilisation in the industry would rise to 80% in 2021, from 61% this year, while the gold output would increase by 32% to 33 tonnes.

But the analysts said the industry would remain under threat from foreign currency shortages, the effects of the Covid-19 scourge, capital constraints, infrastructure deficits and the power crisis.

They were also worried about Zimbabwe’s unstable policy environment.

Economists also said the 30% foreign currency retained by the central bank from exports would remain a drawback for mines while a directive that they must liquidate the forex within two months would continue to affect operations.

Gold miners have also been affected by delays in payments from the state-run Fidelity Printers and Refiners (FPR), which has always disrupted cashflows.

Market analyst Evonia Muzondo said projections for mining sector growth were over-ambitious.

“They appear to have not factored in Covid-19,” she told Standardbusiness.

“The mining sector faced challenges even before the onset of Covid-19.

“Retention levels are very low, big mines such as RioZim witnessed huge payment disruptions as they were not paid timeously.”

RioZim, one of the country’s largest gold producers, has warned against delays by the central bank in releasing foreign currency for exports.

“The delays on the payment of the company’s gold receipts by the Reserve Bank of Zimbabwe (RBZ) carried on throughout the quarter which severely strained the working capital and cash flows of the group and greatly hampered production,” RioZim said in a third-quarter trading update last week.

Muzondo added: “Yes, the economy has opened up, but there are issues that were there even before Covid-19 and they haven’t been fixed.

“Issues like electricity and retention levels are increasing side-marketing. In the gold sector, miners are only allowed to sell to FPR.

“These issues have been coming up and it appears the (Mines) ministry is brushing them aside.

“It is not just the price of minerals on the global market that determines the performance of the sector,” she noted.

Economist Persistence Gwanyaya said in the absence of reforms, the sector may miss its target to achieve a US$12 billion mining industry by 2023.

“I am not sure the 2023 target of a US$12 billion sector is achievable. Gold is being smuggled,” Gwanyanya said.

“It becomes more realistic if we focus our efforts on stability which is the way to deal with other nefarious issues like smuggling.

“It’s not about production, because the production is there but that gold is not being sold under formal channels.

“What we need to do is address housekeeping issues to make sure the formal channels are used for all trading in minerals,” Gwanyanya added.

Parliamentary portfolio committee on mines and energy chairperson Edmond Mkaratigwa said the mining sector remained vulnerable.

Zimbabwe National Chamber of Commerce CEO Chris Mugaga agreed that the mining sector was in trouble.

“You are continuously milking the same cow, it’s an economy that has two or three industries working,” Mugaga added.

The Standard

Chitando hails Bravura

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Chitando hails Bravura

Minister of Mines and Mining Development Winston Chitando has hailed emerging platinum giant, Bravura Consortium, for investing US$50 million in exploration and state-of-the-art equipment ahead of the commissioning of its US$1 billion venture in Selous.

Minister Chitando and his deputy Polite Kambamura on Friday toured Bravura mining premises to assess progress at the site.

Bravura is still at the exploration stage and is expecting to open its first box-cut, which is the first step in mining excavation, by mid next year. Minister Chitando said he was impressed with the rate at which Bravura was conducting its operations despite delays caused by Covid-19.

“I am extremely impressed with what we have seen and what we have heard. We signed an agreement mid last year and the progress we have seen is impressive. They are undertaking exploration to confirm the resource and enable mining to take place.

“Bravura is taking the project seriously. Investing in state-of-the-art rigs and equipment shows commitment. We look forward to the groundbreaking ceremony and I will extend an invitation to His Excellency, President Mnangagwa,” he said.

Minister Chitando said the project was in line with President Mnangagwa’s vision of creating a US$12 billion mining industry by 2030.

Deputy Minister Kambamura thanked Bravura for its efforts to expand the mining sector in the country.

“A historic agreement was signed at Robert Mugabe International Airport. No other agreement has been signed at the airport before. We are so excited and are expecting to come for the groundbreaking ceremony,” he said.

Bravura country director Mr Lionel Mhlanga said they were working tirelessly to reach their goal of starting mining by mid next year.

“Where we are today is a culmination of an agreement that was signed between ourselves, Minister Chitando and our chief executive, Mr Benedict Peters, in June of 2019. That groundbreaking ceremony, which was also overseen by His Excellency, culminated in exploration and a special grant granted to us in July of last year. We immediately hit the ground running, barring delays that were inevitable due to the outbreak of the Covid-19 pandemic. However, we have managed to start work. We are doing exploration and finding the resources.

“We are still to qualify the resources so that we can take this project to the next stage. Our group has availed US$1 billion from in-house sources for the development of this magnanimous project and we are very pleased that we are working here non-stop.” – Sunday Mail

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