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Zimbabwe suspends mobile money transactions

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Zimbabwe Government has suspended all monetary transactions on phone-based mobile money platforms as well as trading on the Zimbabwe Stock Exchange.

Announcing through the Ministry of information and Publicity twitter page government outlined that Measures are intended to deal with malpractices, criminality and economic sabotage.

https://twitter.com/MinOfInfoZW/status/1276566433288400897

Army terminates Chinese platinum deal

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The military is terminating its platinum mining deal with a Chinese firm to pave the way for new investors after over a decade of unfruitful engagement.

The development comes after Global Platinum (GPR) which was established in 2004 by the army and Chinese firm, Wanbao Rexco, has failed to mine a single ounce of the white metal from 520 million ounce platinum resources-rich mine along the Great Dyke area.

GPR technical manager Retired Brigadier General Livingstone Chineka told Business Times that the government is officially terminating the deal to pave way for other investors.

“We are fed up with Wanbao Rexco since they came here in 2004 employing their own people and exploiting the country’s platinum resources for absolutely nothing, we can’t accept that.

“We knew that there was nowhere we were going with that deal but Covid-19 has made them accept that the deal is no longer in 2020 as world economies continue to crash due to the effects of the epidemic. The position is that Wanbao is no longer part of GPR and we expect the new investors to come on board when the lockdown restrictions come to an end,” Chineka said.

The army-Chinese marriage has been rocky amid claims the foreign investor was allegedly fleecing off the locals. The dispute centres on allegations that the company only employed Chinese explorers to carry out pre-feasibility and feasibility studies at inflated prices. Wanbao has spent over US$80m in exploration and feasibility studies.

A recent audit also stoked suspicions after US$20m was unaccounted for. The Chinese company which was spending US$1m for maintenance has finally dumped the project due to viability challenges.

Chinese feasibility studies were said to cost more than what the local studies cost as the Asians wanted to take more money from the deal.

In January this year, the army and Chinese investors met VicePresident Chiwenga to plot the way forward for the platinum miner.

The parties agreed to work together but the situation did not take time as Covid-19 intensified in March and everything stopped.

GPR is said to have untapped platinum claims of 86,7km2 which is a way bigger than those of Ngezi, Mimosa and Unki mines combined.

Chineka said they were convinced that the argument about the project is not based on the economic viability of the project but completely driven by financial difficulties on the part of the Chinese partners.

He argued that the root of all their problems with their Chinese counterparts was the failure by Wanbao to respect and honour the local people as all personnel, materials came from China without any benefit to the local people.

He also said petty things like exercise books, tissues and all stationery came all from the Far East yet there are a lot of local companies and skilled workers who can do the job.

When contacted for comment Wanbao officials could not pick their mobile phones.

Zimbabwe holds one of the world’s largest known platinum deposits and has been pushing mining firms operating in the country to build refineries to stop the export of raw platinum ore to earn more foreign currency.

Business Times

 

Workers foil machete gang mine robbery, effect citizen arrest

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Five suspected machete gangs popularly known as Bhambadzi on Tuesday night invaded a mine in Collen Bawn Matabeleland South with an intent to steal gold ore.

By Dumisani Nyoni

Bush Park 10 mine owner Tichaona Muzenda told Mining Zimbabwe Magazine that one of his workers foiled the robbery by attacking the robbers with an axe.

The suspects tried to flee using a getaway car they had parked outside the mine but mine workers intercepted their car, overpowered them before effecting a citizen arrest, he added.

The two suspects, a man and woman, together with their getaway car were taken to Colleen Bawn Police Station.

The two have since appeared in court and were remanded in custody until next week while the other three suspects are still at large.

“We suspect they were trying to steal gold ore and money,” Muzenda said.

Zimbabwe Miners Federation Matabeleland South secretary-general, Philemon Mokuele said about 60 mine owners stormed the Colleen Bawn Police station after hearing that the police had wanted to release the suspects before doing thorough investigations.

He, however, said after engaging the police over the matter, the officer-in-charge handled the case “professionally, all our concerns were taken care of which convinced the magistrate that they deserve to be remanded in custody until next week whilst police will be searching for those who are still on the run.”

“We hope and trust that this case will be handled professionally and all culprits brought to book,” he said.

He hoped that all miners in the region will continue having that spirit of togetherness to fighting against violence in the mining sector.

“I wish all miners can continue having this spirit of working together in handling these issues because if we just leave everything to the police, it will be difficult for the police to handle these cases in a manner which will satisfy all of us but if we participate it will help us to end this terrorism by these machete guys,” he said.

ZELA Press Statement on the shooting of two miners at Reden Mine Gweru

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The Zimbabwe Environmental Law Association (ZELA) condemns the shooting of two gold mine workers, Wendy Chikwaira and Kennedy Tachiona by their Chinese Mine employer at Reden Mine in Gweru on the 21st of June 2020.

Video, audio and picture images of the shooting incident were widely circulated on social media. A dispute allegedly occurred over outstanding wages and working conditions at Reden Mine. The mine owner is said to have shot the two at point-blank range after they demanded their outstanding wages. Both workers sustained injuries, with one shot on the chin while the other who was shot in the leg and thigh remains in hospital. ZELA understands that the Chinese mine owner and manager was arrested and is being charged with attempted murder. The Chinese embassy reportedly issued a statement in support of investigations by law enforcement agencies which they said should be done transparently and openly. They further indicated that he has no links with the Chinese Embassy and Government.

To us, this incident is part of a systematic and widespread pattern of labour rights violations by Chinese companies and investors in the extractive sector. In many parts of Africa, including Zimbabwe, Chinese mining investors have exhibited a history of bad safety, health, environmental, labour and human rights standards. Poor working conditions at Chinese companies are an old problem that is increasing. Mineworkers at Chinese mines often work in very dangerous, harsh and life-threatening environments. Despite the hard work and toil, the workers share little of the profits made by the mine owners in wages, social protection and other benefits. A 2012 study by South Africa Resource Watch which investigated Chinese labour practices in Zimbabwe, Zambia, and the Democratic Republic of Congo revealed that Chinese companies have engaged in widespread labour abuses and have subjected local employees in the mining industry to harsh and unfair working conditions. The report revealed that most Chinese mining firms exceed statutory working hours of eight hours a day, requiring employees to work 12 to 18 hours and that at the Makwiro platinum concessions workers do not receive overtime for 12 hours on the job. Low and measly wages, poor recruitment policies, discrimination, victimisation, sexual abuse, unfair dismissals and general Chinese hostility towards trade unionism among a litany of other poor working conditions punctuate most Chinese owned businesses. A study by ZELA in 2015 at Anjin Investments in Marange profiled such problems http://www.zela.org/…/no-strings-attached-the-plight-of-wo…/ .

From a safety and health perspective, many Chinese companies have appalling housing and sanitation facilities. Provision of Personal Protective Equipment (PPE) is often intermittent while medical check-ups for workers as prescribed by the law are erratic or non-existent. As a result, workers are often exposed to disease-causing environmental, safety and health elements such as noise, dust and hazardous chemicals and substances. Mine accidents are also commonplace. From an environmental perspective, many Chinese companies start operations without conducting Environmental Impact Assessments (EIA) to identify and address any potential negative environmental and social impacts of mining operations on communities and workers as required by the law.
In the advent of COVID-19, some of the egregious violations of workers’ rights at Chinese mines in Zimbabwe were exposed in a recent Mining Sector Situational Report produced by ZELA http://www.zela.org/…/covid-19-mining-sector-situational-r…/.

The report noted a great deal of workers’ safety and health concerns and exposure to contracting and spreading COVID-19 at the following Chinese owned mining companies; Anjin Diamond Mine in Marange, Zimberly Investment Hwange, Hwange Coal Gasification Company, South Mining, Sunrise Chilota Cooperation PVT LTD and Dingmao and Longrui among many others. The main safety and health concerns included lack of adequate personal protective equipment, poor accommodation and transport facilities that did not provide room for the practice of social distancing, limited access to adequate and safe water and other sanitation facilities such as toilets. Workers are provided with substandard gloves, masks, safety shoes and work suits.

Apart from the poor working conditions at Chinese mines, what is also of concern to ZELA is that, based on the history of Anjin in Marange, little or no attention seems to be paid by Government on payment of taxes, royalties and gold production levels and contribution to the fiscus. There are also well-documented cases of Chinese nationals arrested for smuggling gold and wildlife products. Returns submitted to the Zimbabwe Revenue Authority (ZIMRA) and the Ministry of Mines by Chinese small scale and large-scale mining entities should be closely scrutinised.

The shooting incident at Reden Mine and many other incidences of mine worker abuse, discrimination and ill-treatment may also be an indication of the need for Zimbabwe to rethink and reimagine its political and economic engagements with the Chinese. Over the years Zimbabwe and China signed many investment and loan agreements for cooperation in the mining, agriculture, infrastructure and communication sectors. The incident, therefore, raises political and economic questions. Have the labour laws of Zimbabwe been suspended by the Chinese? What is the role of politics in all this? Are the authorities lowering the standards for the Chinese without effecting any legal changes? How can productivity and efficiency be improved without abusing workers at the mine? The Chinese seem to be taking advantage of the political and economic ties between Zimbabwe and China and Zimbabwe’s desperation for Foreign Direct Investment (FDI) to commit criminal acts, disregard labour laws, partake in illegal mining activities, engage in leakages of minerals and illegal trade of minerals and other natural resources.

Recommendations

The incident at Reden Mine and the increasing entrance of Chinese investors into Zimbabwe, calls for the institution of several administrative, practical changes and steps by Government and other stakeholders including the following;

• Due process should be followed in dealing with the attempted murder case against the Chinese mine owner without fear or favour.

• Chinese mining and natural resource extraction companies and operations should be closely monitored for compliance with labour, environment, worker safety and health laws and standards. Enhanced and improved joint mine monitoring visits should be conducted by the Zimbabwe Miners Federation (ZMF), the Chamber of Mines, Mine Workers Unions, National Social Security Authority (NSSA), Ministry of Mines, Ministry of Environment , Tourism and Hospitality Industry Ministry of Labour and Social Welfare and Ministry of Health and other interested parties such as civil society groups.

• Chinese mining companies and other investors should be required by law to adopt and apply business and human rights and responsible sourcing standards in the mining sector. They should also be guided by the United Nations Guiding Principles on Business and Human Rights (UNGPs).This will enable them to identify and take measures to address all the risks associated with their operations including safety, health, environment, labour and community impacts of mining operations.

• The Government of Zimbabwe through the Human Rights Commission should consider assessing working conditions under Chinese owned enterprises in Zimbabwe.

• Government should institute a quick assessment of mineral production statistics, tax payments and mineral export receipts by Chinese gold mining companies, including a quick check on gold supplies to Fidelity Printers and Refineries. Public disclosure of such information will be key for promoting transparency and accountability.

• The Mine Workers Unions must increase visits and monitoring trips to mining areas where Chinese companies are operating from and work closely with community-based groups to monitor the living and working conditions of mine workers and impact on communities.
“Environmental justice through sustainable and equitable utilisation of natural resources and environmental protection”


Bhekinkosi Nkomo stepping down as RioZim CEO

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RioZim Limited’s current Chief Executive Officer Mr. Bhekinkosi Nkomo whose term ends on the 30th of June, 2020, has decided to step down to pursue other career opportunities.

The Board of Directors of RioZim Limited announced the appointment of Mr Manit Mukesh Shah as Chief Executive Officer with effect from 1 July 2020.

Bhekinkosi Nkomo (Bheki) was appointed as CEO of RioZim Limited (Zimbabwe) on the 1st of July 2017. He is an alumni of the Harvard Business School after having successfully completed its Advanced Management Program (AMP) in Boston, Massachusetts. Bhekinkosi Nkomo is also a registered Chartered Accountant both in Zimbabwe and South Africa and holds a Bachelor of Commerce Accounting (Hons) Degree from the National University of Science and Technology (NUST), and a Bachelor of Accounting Science (Hons) Degree from University of South Africa (UNISA).

Bheki is a well-rounded senior executive who possesses a strong business and leadership record spanning over twenty years of experience. Prior to his elevation to the role of CEO, Bheki served with distinction as RioZim Limited’s Group Finance Director from 2015 to 2017, during which period he was instrumental in spearheading the implementation of the Group’s expansion strategy which resulted in the Group’s number of operating gold mines growing from one in 2012 to three by 2017 and gold production increasing by more than 350%.

Furthermore, Bheki played a key role in restructuring the Group’s debt which significantly improved the Company’s liquidity, capital structure, and operational efficiency. Bheki also has vast experience in the areas of finance, operations, and strategic planning. He has also served on various Boards. Currently, he serves on the Boards of RioZim Limited and its various subsidiaries and associates.

Bogus Mnangagwa daughter denied bail

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A Tynwald woman who masqueraded as President Emmerson Mnangagwa’s daughter and managed to defraud CBZ of US$37 000 plus interest, and also benefitted a gold claim from the Zimbabwe National Parks and Wildlife Authority has been denied bail.

The fake ‘First Daughter’ had been remanded in custody until June 23 facing two counts of fraud. Chikafu was further remanded in custody until July 8th, 2020 after attending a routine remand hearing at Rotten Row Magistrate Court.

The 44-year-old fraudster, Chirambe Chikafu who had four different ID cards and a fake address, says her real name is ‘Chantelle Chikafu Mnangagwa, and claims to be the daughter of the Zimbabwe leader’s elder brother, Partson Mnangagwa.

“According to Police investigations, accused has four IDs she was using including the name Chantelle Mnangagwa. She was also fined $6 000 on a previous conviction in Mount Darwin. She had given the police the address of 4099 Tynwald South in Harare, but she had left those premises three years ago.

Chikafu, who was facing a plethora of civil suits at the High Court, and had filed an urgent application to terminate the gold mining contract with ZimParks, was ambushed and arrested when she visited the ZimParks director-general on the 8th.

The accused, who still contends through her lawyers that she’s actually the president’s niece and Partson Mnangagwa’s daughter, told the court that a miner, John Maungwa caused her arrest, following misunderstandings on boundaries to their gold claims.

“There was a Government facility where youths would get loans during the time of former minister Saviour Kasukuwere.”

She obtained a loan and when she failed to pay the loan an agreement was made with Zimbabwe Asset Management Corporation. Later the loan was paid in full,” she said.

In 2010, Chikafu allegedly approached CBZ and tried to open an account using a defensive driving certificate as an identity.

The bank wanted a real ID and initially declined to let her open the account, but the now remanded female quadragenarian allegedly connived with a CBZ employee Lilian Mateta, who processed the account without the needed ID.

Using the name Chantelle Mnangagwa, Chikafu received a US$2 000 overdraft from the bank. It is the state’s case that in August 2011, the accused was lent another US$15 000 after submitting a Deed of Transfer she allegedly stole from her mother, Grace Chikafu.

On September 12, 2012, she received a US$20 000 loan and failed to repay accruing a US$88 775 debt in the process, including interests.

On November 19, 2019, Chikafu is said to have approached Nyasha Mutyambizi and passed herself as Chantelle Mnangagwa. She allegedly sought an agreement to mine in Umfurudzi Safari Area and tendered a fake ID.

The Parks and Wildlife Management reportedly consented and issued the agreement. With that piece of paper, she approached the Ministry of Mines and Mining Development seeking a special gold mining grant for 200 hectares in the reserved area.

The court also heard that the special grant was granted in December 2019 but it was later discovered that the mine site that was granted to her belonged to a one, John Maungwa.

Fuel prices increase by over 100% in local currency

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Fuel prices have been increased effective 24 June 2020. The Zimbabwe Energy Regulatory Authority (ZERA) published the new prices in both local currency and US dollars.

Petrol prices have gone up from $28,96 to $71,62 and diesel from $24,93 to $62,77.

Zimbabwe has been grappling is acute fuel shortage which was mainly attributed to the disparity between the local currency and us dollar. The increase is likely to see reduced fuel queues which were now the order of the day across the country.

The government removed the subsidy for fuel in an effort to improve supply which has seen an increase of over 100%.

Meanwhile, the government has authorised all fuel service stations to resume 24-hour operations as announced in a statement by Minister of Information and Publicity Mrs Monica Mutsvangwa.

 

ZMF requests a meeting with Chinese Embassy officials

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Zimbabwe’s largest mining body the Zimbabwe Miners Federation (ZMF) has requested a meeting with the Chinese Embassy officials.

In a statement, the ZMF requested the meeting to address issues concerning the ill-treatment of local workers at Chinese owned local mining operations.

The ZMF statement reads as below:

“Zimbabwe Miners Federation (ZMF) Executive and Management Board has received numerous complaints from the artisanal and small-scale miners alleging ill-treatment and harassment at most Chinese mining operations in the country.

Recently a report has come in of a shooting incident in Gweru at Reden Mine where a Chinese National shot and wounded two of his employees over salary/wage dispute.

In view of the above, we write kindly requesting to have a meeting with you on the 1st of July 2020 at your Embassy and see how best we can amicably resolve without conflict, issues and concerns raised by Zimbabwean Nationals employed at Chinese mining firms”.

This follows a shooting and injury of a mine worker by a Chinese employer Zhang Xuelin (41) of Reeden mine in Gweru. Xuelin has been remanded in custody to July 07th, 2020.

Chinese business community in Gweru today visited the family of Kennedy Tachiona who was shot three times in the legs by a manager at Reden Gold Mine in a pay dispute. Mine owners pledged compensation and also met Chief Gambiza of Chiwundura.

There is general discontent with the treatment of locals working at Chinese-owned mines in the country. More and more miners are calling for strict laws in monitoring Chinese-owned mines and also barring them from conducting Small-scale mining.

Chinese mine owners are commonly accused of ill-treating workers, not providing protective clothing or suitable accommodation.

Recently a ZELA report revealed that several Chinese-owned mining companies in Zimbabwe were reportedly not fully providing their employees with personal protective equipment (PPE) to protect them from COVID-19.

ZELA had prepared to file an urgent Court Chamber Application seeking an order compelling Chinese owed Zimberly Investment Hwange to provide workers with adequate safety, health, and sanitation facilities.

Zimbabwe Miners Federation is the brainchild of the Ministry of Mines and Mining Development whose birth was marked to represent and contribute to the development and growth of small-scale miners.

BREAKING: Chinese shooter remanded in custody

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The Chinese employer Zhang Xuelin (41) of Reeden mine who shot and injured an employee last Sunday has been remanded in custody to July 07th, 2020.

The shooting had calls for strict measures taken against Chinese employees who are well known for abusing workers.

Chinese Embassy called Zimbabwe’s law enforcement agencies to ensure justice is served.

In a statement, the Embassy said, “We are highly concerned about the case in which a Chinese employee of a private Chinese company near GWERU shot and injured a local employee due to a wage dispute yesterday. Although this is an isolated incident and the Embassy has no law enforcement authority over the enterprise, we firmly support Zimbabwe’s law enforcement agencies to transparently and openly investigate and handle the case in accordance with the law of Zimbabwe. Any possible illegal acts and persons who violate the law should not be shielded. China and Zimbabwe have long-standing friendship and cooperation. We call upon all relevant sides to safeguard it jealously and carefully”.

 

ZMF, Chinese Embassy release statements on Gweru shooting

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Zimbabwe Miners Federation and Chinese embassy released statements on the shooting incident at a Chinese owned mine in Midlands.

“Please be advised that Zimbabwe Miners Federation (ZMF) is making a follow up of an incident where a Chinese Mining owner shot two of his employees yesterday at Reden Mine in Gweru. ZMF is seized with this matter. A report on the analysis of the full findings of the incident will be unveiled to you in due course”.

Chinese national Zhang Xuelin (41) of Reeden mine shot and injured a worker in a wage dispute last Sunday. Zhang was arrested and is currently detained at Gweru Central Police station.

It is believed that Zhang is being charged for attempted murder and the matter is being investigated by ZRP Gweru Rural CR74/06/2020.

Chinese Embassy called for the law to take its course.

In a statement the Embassy said, “We are highly concerned about the case in which a Chinese employee of a private Chinese company near GWERU shot and injured a local employee due to a wage dispute yesterday. Although this is an isolated incident and the Embassy has no law enforcement authority over the enterprise, we firmly support Zimbabwe’s law enforcement agencies to transparently and openly investigate and handle the case in accordance with the law of Zimbabwe. Any possible illegal acts and persons who violate the law should not be shielded. China and Zimbabwe have long-standing friendship and cooperation. We call upon all relevant sides to safeguard it jealously and carefully”.