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RBZ asks mines to ramp up production

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RBZ asks mines to ramp up production

THE Reserve Bank of Zimbabwe (RBZ) has urged the mining sector to ramp up production in order to increase its contribution to the national fiscus.

The mining sector is viewed as a locomotive of Zimbabwe’s development agenda, contributing over 60% of export proceeds in the last three years buoyed by critical minerals such as gold (small-scale miners delivering over 60%), platinum group of metals, nickel and chrome.

At its peak in 1997-1998, the sector employed approximately 65 000 workers in primary activities. Addressing business delegates at a Professionals Business Association of Zimbabwe breakfast meeting in Bulawayo on Friday, RBZ deputy director for Bulawayo, Kasanda Sibanda, said there was need to deepen the mining sector to increase its contribution to the fiscus.

“Mining can support sustainable economic development when domestic firms become integrated into mining company value chains,” Sibanda said.

“The benefits of increased mining linkages include contributions to incomes, jobs, upgrading of the industrial base, formalisation of firms, and increased tax revenue. In Zimbabwe, there is need to deepen mining backward, forward and horizontal linkages in order for the sector to support broad-based economic development,” he said.

Sibanda said domestic suppliers to the mining sector should develop and improve capabilities to service the mining sector in terms of not only price but quality, timeliness of delivery, flexibility and ability to supply to scale.

He said mining was an important activity for Zimbabwe which has contributed immensely to growth in the country.

“Increased exploration is needed to attract foreign direct investment in the sector. Value addition and mining beneficiation is also critical to enhance the contribution of the sector in the economy,” he said.

 

Source: Newsday

Mining firms fingered in tax evasion

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Mining firms fingered in tax evasion

THE country could be losing millions in potential revenue through tax evasion among other underhand dealings involving players in the mining sector, according to the Zimbabwe Revenue Authority (Zimra). 

Although mining contributes nearly 60 percent of the country’s foreign currency earnings and employs thousands of people, the tax authority believes more revenue could be harnessed to finance national development if players in the sector were fully compliant with tax laws.

Speaking during a mining business breakfast meeting organised by the Professionals Business Association of Zimbabwe (Probaz) in Bulawayo last Friday, a Zimra official, Mr Harold Chipaza, said the tax authority was facing numerous challenges in taxing the mining sector. 

“We are facing challenges in taxing the mining sector. These include tax evasion where some players escape the tax liability through concealing, misrepresentation, fraud and other unscrupulous activities. 

“We also have a problem of base erosion and profit shifting, trade mispricing and false invoicing,” he said without revealing any  names.

In a bid to evade taxation, Mr Chipaza said some mining companies were deliberately thinly capitalised, a practice in which a parent company uses debt to invest in a subsidiary and strips profits through interest payments on a loan rather than repatriating these through a dividend. 

He said fraudulent behaviour was rife in some mining companies as evidenced by deletion and concealment of some critical records in order to evade tax. 

Mr Chipaza said some mining companies were dipping their hands in smuggling of goods so as to avoid tax. 

He said other challenges faced in taxing mining industries had to do with money laundering and the use of tax havens, which require concrete strategies in order to bring the culprits to account. 

The situation could be compounded by the proliferation of informal mining activities across the country, whose operations are difficult to track and often happen without records. 

During discussion, participants highlighted that the drop in official gold deliveries from 33 tonnes in 2018 to 27 tonnes in 2019, for instance, has more to do with underhand trading of the precious mineral and avoidance of official routes. 

However, Mr Chipaza said the tax authority has put in place measures to ensure voluntary compliance by revamping its client education initiatives and continuous improvement of the tax legal framework.

“We are also encouraging transparency and disclosure of tax information and publication of the contributions to the fiscus,” he said.

“We are improving our infrastructure and systems to assist clients to easily comply with tax laws. We are also doing tax investigations in order to plug malpractices.”

To buttress these measures, Mr Chipaza said Zimra has also entered into agreements on information sharing with other jurisdictions including cargo tracking, border patrols, post clearance and enforcement of audits, scanning and the whistle blower facility. 

During the discussion, participants stressed the need for policy makers to review the mining and taxation laws to weed out inconsistencies, harmonise and promote data-base linkages. Such efforts also require thorough consultation and reviews by key players. 

There is also need to fight corruption. The event was attended by mining executives, consultants, Zimra, Reserve Bank of Zimbabwe and Ministry of Mines and Mining Development officials.

 

Source: Chronicle

Diamond miners want salaries in US$

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Diamond miners want salaries in US$

THE Zimbabwe Diamond and Allied Minerals Workers’ Union (Zidamwu) has written to the government seeking to be allowed to bargain for salaries in line with the forex retention threshold.

In a letter to Finance minister Mthuli Ncube, Zidamwu general secretary Justice Chinhema said employers in the mining industry were retaining 55% forex after selling their minerals through Fidelity Printers and Refiners, but in return, paying workers 100% in local currency without indexing them to the interbank rates.

“Workers have been trying to engage individual employers as well as the Chamber of Mines through the National Employment Council to consider paying them salaries or wages in line with what they retain after selling what they mine without success citing that the law prohibits such bargaining because monetary authorities have directed them not to consider such arrangements,” the letter read in part.

“Workers are aware of the Finance Act and all its meaning, intention and objectives. It is from this background that workers seek to be exempted and be allowed to demand salaries or wages in line with what the employers are retaining.”

In the letter, Chinhema said besides it being unfair to the workers for employers to benefit alone, workers believe most of the money that the employers were retaining in United States dollars and cash in local currency was being channelled to the black market, where they get high premiums for Real Time Gross Settlement they then use to pay workers.

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Miner tortured, killed for stealing gold by boss

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Miner tortured, killed for stealing gold by boss

A miner tied to a tree and severely tortured by his boss for allegedly stealing gold died on Sunday, four days after he was returned to his family barely clinging to life.

Fabian Mabhungu, 24, was abducted together with his friend Lenny Hwehwe, 25, after their boss only named as ‘Dread’ claimed they had declared gold with a shortfall of 70 grams worth US$3,400 at a mine in Shurugwi.

The men were driven to a wooded area in Chirumanzu where they were tortured over two days, allegedly on the orders of their boss.

Mabhungu was stripped naked and tied to a tree with webbing. He was whipped, punched and kicked for several hours on end until he lost consciousness.

Hwehwe was also so severely beaten doctors fear he will require a catheter to pass urine for the rest of his life.

Assistant Inspector Ethel Mukwende of Midlands police said they had launched a murder investigation.

Hwehwe was discharged from hospital on Monday, and was due to give a statement to the police.

He told reporters: “I’m in pain. We were abducted and assaulted over missing gold by our boss. That’s all I can say now.”

He said they were abducted on February 25 and savagely beaten for the next two days until they were freed on Thursday, reportedly after police began questioning ‘Dread’.

Fabian’s aunt, Theresa Mabhugu, said ‘Dread’ and his savage enforcers wanted the two artisanal miners to admit to stealing the gold, and reveal where they hid it.

She said Fabian and Hwehwe were returned to them on Thursday and they took them to Gweru Provincial Hospital where her nephew succumbed to his injuries.

“We have been to the police to file a report and we are also awaiting a post-mortem report,” she said.

Brutality against artisanal miners by mine owners is a common occurrence around Zimbabwe.

Last year, police arrested Kadoma miner Litten Chikowore after video emerged on social media showing him repeatedly striking a hapless man with a truncheon next to what appears to be a mine shaft.

Source: online

Thermal Imaging Solutions

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Thermal Imaging Solutions

Hwange Colliery back to owners

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Hwange Colliery back to owners

Prolonged boardroom wrangles at Hwange Colliery Company (Hwange) took a fresh twist this week after it emerged the company will now be returned to its shareholders while former board members have bounced back following last week’s High Court ruling quashing the government’s decision to place the ailing coalminer on administration the Independent reported.

This came after Justice minister Ziyambi Ziyambi applied for High Court confirmation of his October 2018 reconstruction order issued in terms of the Reconstruction of State Indebted Insolvent Companies Act.

However, the Juliana Muskwe-chaired board which had ceased to exist by operation of law soon after the issuing of the order — contested the decision along with other shareholders, trustees, and creditors, arguing that Ziyambi had abused his powers.

High Court judge Justice David Mangota ruled that the order had clearly violated the concerned piece of legislation and was therefore null and void.

Board members argued that the reconstruction order was a ploy by Mines Minister Winston Chitando to remove them after they had initiated a forensic audit into the company.

Interestingly, the subsequent audit, by Ralph Bomment Greenacre and Reynolds, subsequently found that Chitando had allegedly orchestrated shady business dealings and presided over the misuse of a US$115,5 million loan at the troubled coal-mining giant during the time he served as board chair.

The audit says Chitando, in cahoots with senior executives, systematically manipulated and creamed off the company between 2016 and 2017. Lawyers representing Muskwe and her board yesterday, Chinyama Attorneys, wrote to Hwange administrator Bekithemba Moyo and his assistants Mutsa Mollie Jean Remba, managing partner of Dube, Manikai & Hwacha law firm, and Munashe Shava, a chief operating officer and project leader at Great Dyke Investments, advising them to immediately vacate office and pave way for the returning board.

“We act on behalf of the Juliana Muskwe board of directors, the board in place immediately before the reconstruction order of October 26, 2018, was issued. You may now be aware that the High Court of Zimbabwe dismissed the confirmation of the reconstruction order by the minister of Justice. The effect of the said judgment was to set aside the reconstruction order,” the letter reads.

“In the result, we kindly request you and your assistant administrators to immediately cease presiding over the affairs of Hwange Colliery Company. Such affairs now fall under the jurisdiction of the board of directors following the dismissal of the application for confirmation of the reconstruction order which appointed you. We advise that any transactions by you or any of your assistant administrators post the judgement of the High Court of Zimbabwe shall be illegal. Should you not vacate the office, you shall be in contempt of court,” the Muskwe board’s attorneys said.

“Yes, we have seen it (the letter), but do not worry about it. We will take guidance from the government. If the government decides to appeal, then the judgement will be suspended until after the appeal process. However, if the government does not appeal, then the company will be handed over to shareholders,” he said.

Key shareholder, British tycoon Nicholas Van Hoogstraten — who holds a 27% stake in the firm and had also challenged the administration order through his lawyer Thabani Mpofu — welcomed the decision, but remains wary of government domination.

Government, with 37%, is the biggest shareholder in the company.“Firstly, in order to play for time, the minister may appeal. Otherwise, yes, the company should be returned to the shareholders — therein lies the problem because the major shareholder, with 37%, is the government,” he said in responses e-mailed from his London base.

“As you well know, the only reason for the destruction of Hwange has been the long series of corrupt and incompetent directors and management appointed by government. It had been my hope, and expectation, that the new administration would deal correctly with these historic issues but, so far, there has been no sign of this.”

Chitando was evasive when contacted for comment. After repeated calls on his mobile phone went unanswered, the Zimbabwe Independent sent questions to him on WhatsApp, to which he only promised to respond, but never did.

“(I) will revert (back to you). Just seeing your message now,” he wrote back to the Independent on Tuesday night but did not do so. Subsequent calls were also ignored.

Ziyambi was also not answering calls.

Source: The Independent

Rushwaya creates a ZMF President interactive forum

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Rushwaya creates a ZMF President interactive forum

Zimbabwe Miners Federation President Ms. Henrietta Rushwaya has created an Interactive forum were miners can interact and share ideas with the ZMF President.

The Whatsapp forum created on Friday at 20:31 hrs was fully subscribed to a four hours after its formation.

Speaking to Mining Zimbabwe, Rushwaya said, “The purpose of the forum is to give people in and outside the mining industry the opportunity to interact and share ideas with The ZMF President. This will enable me to improve where I lack, develop and grow in the manner I execute my duties as your listening President”.

She touched on the need to link miners with recommended local service providers as a way of doing away with bogus suppliers.

“It’s our fervent wish as ZMF to also use this forum to link our miners with reputable service providers whom we have a working relationship with. Please note there are a lot of bogus suppliers these days.”

“We would like to encourage design and engineering of our own crushers that may not be hammermills nor stamp mills nor round mills but also to suit our levels of operations and say this crusher machine was designed in Zimbabwe by Danai for example. No Forex is needed if people come up with homegrown solutions”.

“There are lots of issues that need to be shared amongst the various mining players including:-

(1) Recognition of the sector can only be effective if the sector embraces all the players. For example, Engineers have innovative concepts/ innovations that they think can be further developed using our miners, instead of people importing hammer mills, Harare Institute of Technology (HIT) can produce those for the sector.

(2) We import transformers but at HIT 33kva transformers are available.

(3) Policy issues that we feel need to be addressed and redressed, Gold Trade Act, Use it or lose it needs to immediately come into effect especially given the currently ongoing (Chikorokoza Ngachipere) operation where illegal miners are being arrested for occupying mining areas that have not been utilised some of it since 1904. We need to engage the government and the Chamber of Mines regarding the above and a lasting solution is needed.

Rushwaya also spoke about naming and shaming deceitful people preying on the mining industry.

“As ZMF, we realised that there is an increase in a number of cases where people both local and foreign have been swindled of their hard-earned cash by unscrupulous elements on the pretext of claim identification, registration, pegging, etc. Kindly note that it is our duty as ZMF to guard against such malpractices and we shall name and shame the malcontents”.

The forum immediately ignited critical conversations that the President promptly responded to. Some of the issues raised were

“The real issues affecting miners today is the pricing model of our minerals and the participation of foreigners in small and medium scale mining”.

“What ZMF policy is on resource allocation, any percentages for People Living with Disabilities (PLWD)”

“Some Rural District Councils (RDC) charging miners sustainable amounts of over 200000rtgs” and much much more

Due to overwhelming response, Rushwaya announced on Saturday at seven am that she had created a second forum, which by the time of publishing this article the platform was almost full. We are going to be on Twitter, Facebook, Instagram, and YouTube by the end of the week she concluded.

 

 

Tunnel collapses at Mozambique ruby mine kill 11 illegal miners

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Tunnel collapses at Mozambique ruby mine kill 11 illegal miners

At least 11 illegal miners in northern Mozambique’s Montepuez ruby mine died following a series of tunnel collapses over three days.

The mine is 75% owned by the UK-based natural resources firm Gemfields.

According to Gemfields, approximately 800 artisanal miners entered Montepuez Ruby Mining (MRM)’s Maninge Nice 3 mining pit.

Despite repeated warnings from MRM staff, these illegal miners were seeking ruby-bearing gems and began undercutting the outer edge of the mining pit. This led to several ground collapse incidents, killing 11 artisanal miners over three days.

MRM personnel provided humanitarian aid where required, stated Gemfields.

BBC cited Ministry of Mineral Resources and Energy general inspector Obete Matine as saying that the walls of one tunnel had first collapsed at the Montepuez site, killing one man.

The other miners continued digging despite the tunnel collapse, resulting in the death of two more miners following a second collapse.

There were eight additional deaths as illegal mining operations were not suspended.

Matine added that most of the victims were young people appointed by smugglers to extract precious stones from the mineral-rich region.

Gemfields’ involvement in the 2009-discovered Montepuez deposits started in June 2011, as part of a deal between Gemfields and original titleholder Mwiriti, under which Gemfields acquired 75% of the mine.

In June 2019, an accident at a copper and cobalt mine owned by British-Swiss mining firm Glencore in the Democratic Republic of the Congo (DRC) killed 43 illegal miners.

In March 2018, Mustang Resources secured a mining concession for the Montepuez ruby project.

Woman suspected of having Corona virus tests negative

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Woman suspected of having Corona virus tests negative

Zimbabwe health authorities were investigating a suspected case of Coronavirus from a 27-year-old woman who arrived in the country from China on Tuesday.

The woman has been quarantined at the Wilkins Infectious disease hospital in Harare after arriving from Wuhan, through Guangzhou, China. According to a tweet released by Permanent Secretary of the Ministry of Health the woman has tested negative for the virus.

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Police arrest 240 illegal gold miners in Hwedza

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Police arrest 240 illegal gold miners in Hwedza

Police have arrested 240 illegal gold miners in Hwedza in a move to eliminate machete gangs and illegal gold miners under their recently launched operation code-named ‘Zero Tolerance to Machete Wilding Gangs and Chikorokoza’.

In a statement Assistance Commissioner (Crime/ Operations) Amon Ndou said this operation is targeting illegal gold miners and hooligans using machetes in robbery cases.

“Various Police departments are on the ground making sure that peace prevails in mining areas.

“Apparently more than 240 people were arrested on Thursday last week in Makaha area, Mudzi District in Mashonaland East Province,” he said.

He added “Those arrested included illegal vendors and the majority were illegal gold miners; illegal vendors had their wares confiscated and were made to pay fines.

“Those who were arrested for illegal panning of gold will appear in court soon facing criminal charges for prospecting for gold without licence.

“With respect to the arrests Police managed to recover various small scale mining equipment that include hammer mills, jack hammers, wheel barrows, shovels, generators and explosives among other things,” said Ndou.

Ndou warned people to desist from engaging in illegal mining activities for it is a criminal offence and the police will not hesitate to arrest anyone found committing such crime.

“This is an on-going operation and police will not retire until sanity prevails in and around such gold mining areas throughout the country,” he said.

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