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Mining communities need Covid-19 support

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MINING communities are also exposed to the COVID 19 pandemic and need social safety nets in the form of financial support and personal protective clothing (PPE), the Zimbabwe Environmental Law Association (ZELA) has said.

STAFF WRITER

In an interview with Mining Zimbabwe, Mutuso Dhliwayo the ZELA executive director said a recent study by his organisation (ZELA) has revealed that the livelihoods of people that live in mineral resource-rich communities are threatened as there is inadequate assistance given to them from the resources mobilized to combat COVID 19 despite them living in resource-rich areas.

These include financial bailout packages from the government as well as mining companies extracting mineral resources from their communities.

For instance, apart from environmental degradation that mining activities can cause to their communities, people living in such areas can be susceptible to dust and other finely powdered materials which can lead to respiratory illnesses to miners and mining communities, hence the need for adequate support and preventative measures during the COVID 19 period.

“We have been to Marange communities which is a place blessed with diamond resources, but people are struggling there in terms of adapting to the COVID 19 pandemic because they are not getting any financial and other support,” Dhliwayo said.

“At Arda Transau where people displaced from diamond mining areas were relocated they did not have running water and electricity despite that water is pivotal to combat COVID 19.  We are talking of a pandemic where effective hand washing using clean water is emphasized, but it was not available at Arda Transau,” he said.

ZELA had to get a Court Order granted last week to compel the Zimbabwe Electricity Supply Authority and the Zimbabwe National Water Authority (ZINWA) to reconnect electricity and water to ensure supplies for the community.

“We need the country to be able to use mining revenues to mitigate the pandemic and those communities in mining areas should benefit.  The mineral resources should do a lot in terms of assisting communities during disasters such as COVID 19 as part of corporate social responsibility,” he said.

Dhliwayo said a good approach would be for the government to come up with policies such as Community Share Ownership Trusts (CSOTs).  The aspect of CSOTs had all along been included in the Indigenisation law were businesses extracting minerals were supposed to avail 10 percent of shares to CSOTs.

“There is need for policies that ensure that CSOTs get percentage shares.  Unfortunately, that has been repealed from the Indigenisation law through amendments to the Finance Act.  If mining communities can get money from CSOTs, they will be able to manage those resources to use them in times of disasters such as COVID 19.  These pandemics or natural disasters might be on-going or recur, but if we manage our natural resources like minerals well we will be able to provide social safety nets for communities,” Dhliwayo said.

Last year, former Minister of Industry, Mangaliso Ndlovu told Parliament that after the amendments on the Finance Act, it will no longer be mandatory for investors in the mineral or other natural resource extractive industries to remit 10 percent of shares to CSOTs.

Ndlovu said even with the Indigenisation regulations in place, there was no adherence to supporting CSOTs as companies only paid US$39 million to CSOTs against assurances they had made to pay US$129 million.

Dhliwayo said there is a need for transparency and openness on mineral revenues so that the country’s resources can cushion mining communities and the country at large during disasters such as COVID 19.

Centre for Alternative Development coordinator Melania Chiponda said good corporate social responsibility by mining companies towards communities can actually generate social acceptance of their mining activities.

Chiponda said women living in mining communities were the worst affected by the COVID 19 lockdown and needed urgent financial and social support.

“Women in the mining sector are disproportionately affected by the COVID 19 lockdown and the pandemic in general.  Firstly; because a lot of the women’s livelihoods depend on the informal mining activities.   Therefore, the ‘shutting down’ of their places of work has resulted in increases in poverty levels.  They need financial support during the lockdown period,” Chiponda said.

She said since most mining activities take place in rural areas, other problems that women in mining communities suffered include transport to get to healthcare centres where they can get medication and healthcare facilities.

While more assistance is needed for mining communities, a recent report by ZELA on COVID 19 Mining Sector and Communities Situational Report stated that some mining companies such as UNKI Mine in Shurugwi, Mimosa Mines, Zimplats, Blanket Mine, South Mining and the Chamber of Mines have given financial and other support in kind to government and their communities as assistance to prevent against COVID 19.

In their recommendations, ZELA said ‘mining companies must extend their corporate social responsibility activities and assistance on COVID 19 to mining communities in which they are operating from and where some of their workers might be living.  Help must be given to the local hospitals and clinics in the form of equipment, PPEs, and other resources so that the local clinics have the capacity to prevent and contain the virus’.


This article first appearedin the June 2020 Issue of Mining Zimbabwe

Chinese firm stalling US$1,4 billion Lithium project

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Zimbabwe Lithium Company is suing a Chinese firm, Beijing Pinchang for stalling progress on the development of US$1,4 billion lithium project in Kamativi, Matabeleland North province.

In 2018, Zimbabwe Lithium Company was involved in a legal wrangle with Beijing Pinchang over mining rights at the tailings dump in Kamativi.

The Chinese company had shown interest in taking over operations at Kamativi after the suspension of operations at Kamativi Tin Mine by the Zimbabwe Mining Development Corporation (ZMDC) in 1994 due to subdued international prices of tin.

But the Zimbabwe Lithium Company argued that through an agreement their subsidiary, Jimbata has with ZMDC,  that gives the lithium producer mining rights to the tailings dump.

Jimbata had projected to resume operations at Kamativi last year but the deadline had been missed on account of the legal battle.

Jimbata managing director Mr. John McTaggart said:

“We are suing the Chinese firm in the Supreme Court. We are taking them in the Supreme Court for having prejudiced ourselves and Zimbabwe from going forward with this project.”

Early this year, the High Court ruled in favour of Zimbabwe Lithium Company over mining rights at the tailings dump, further consolidating the firm’s initiatives to re-open the mine.

Meanwhile, Mr. McTaggart said they had started the process of importing a pilot concentrate plant from South Africa before the main plant worth US$10 million is installed at the mining site.

“We haven’t started production as yet mainly because of Covid-19. We are unable to import the pilot plant and soon as we start having things moving across the border, we’re ready to go,” he said.

It is envisaged that 250 people will be employed under the first phase of the project while thousands of other jobs would be created across the downstream industry.

In March 2018, Jimbata embarked on an evaluation exercise drilling holes to depths of 1 500 metres and sampling to ascertain the lithium resource in the tailings dumps at the defunct mine.

The results were used for the production of the NI 43-101 Compliant Resource Estimate for the Kamativi Tailings Project.

Jimbata is also looking at beneficiating spodumene to lithium carbonate.

Of late, lithium production is fast surfacing as a potential game-changer for the local mining sector with investors showing determination towards the exploitation of the resource.


This article first appeared in the Mining Zimbabwe June 2020 Issue

Zimbabwe deadliest mine disaster turns 48

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Today marks 48 years after the Kamandama disaster at Hwange Colliery mine that claimed 427 lives when a series of explosions occurred underground.

The disaster remains the deadliest mine accident to date in the country’s history.

Kamandama

The disaster took place at the Wankie No.2 Colliery in Hwange, in the province of Matabeleland North, when several gas explosions ripped through the mine. It was initially believed that 468 miners were trapped, but the number was lowered after the owners at the time found a number of people had not shown up for work.

Eight men were pulled alive from the mine after the initial explosions. Two new explosions on 7 June of 1972 poured clouds of poisonous gas into the 4.8 kilometres of tunnels, making further rescue attempts impossible.

On 9 June 1972, the general manager of the Wankie (Hwange) colliery, Gordon Livingstone-Blevins, decided to leave the 424 bodies where they were. Three bodies had been recovered after the initial explosions. A mass memorial service took place on 11 June at a nearby football stadium, where a crowd of about 5,000 people paid tribute. “This has cast a gloom over the whole country,” Rhodesian Prime Minister 1972 Ian Smith said during the service.

The Kamandama accident claimed 391 men from different Southern African countries and 36 Europeans.

1. 1 from Botswana
2. 13 from Namibia
3. 30 from Tanzania
4. 37 from Malawi
5. 52 from Mozambique
6. 91 from Zambia
7. 167 from Zimbabwe.

Hwange Colliery Company Limited indicated in a statement this year’s event, scheduled to be staged yesterday and today, has been shelved due to the outbreak of the coronavirus pandemic.

“As the public is well aware that the COVID-19 pandemic has ravaged not only Zimbabwe but the world at large, thereby disrupting the normal functioning of the community at large.

“This deadly virus has necessitated the need for social distancing; this requires us as organisations to adhere to Government regulations limiting gatherings in an effort to stop the spread of the disease.

“In light of this, (the) Hwange Colliery Company Limited will not be conducting the Kamandama Golf tournament together with the memorial which is normally held annually on the 5th and 6th of June respectively,” HCCL said in the statement yesterday.

The company, however, said they will continue with their philanthropic efforts to ensure the surviving spouses (widows) of the miners, who were killed in the 1972 disaster, are well taken care of “especially in these trying times”.

Fidelity agent Bank disowns illegal forex dealers

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Fidelity Printers and Refiners agent bank, ZB Bank has castigated as impostors some illicit foreign currency dealers who are claiming to be buying foreign currency on behalf of the bank.

In a press statement released Thursday afternoon, the ZB chief executive Ron Mutandagayi said the bank was concerned at the claim by the purported agents, saying it only conducted foreign exchange transactions at official exchange rates.

“ZB Financial Holdings Limited has noted with concern some social media posts alleging that there are “agents” who are conducting illicit foreign currency transactions on the parallel market, representing ZB Bank or on behalf of ZB Bank.

“We would like to unequivocally inform our valued customers and the public in general that there allegations are false and malicious.

“The ZB Bank conducts all its foreign currency transactions at the official exchange rates, which we publish at our branches and on our website,” ZB Bank said in a statement.

Mutandangayi further said any irregular transactions should be reported to the authorities so that justice could take its course.

The Press statement by ZB Bank comes after President Emmerson Mnangagwa told members of the Political Actors Dialogue that there were some banks which were withholding cash from withdrawers to release it on the black market.

“Banks have been stashing foreign currency which is then used on the market to spike exchange rates and prices,” Mnangagwa said.

The government appears to have failed to control the black market exchange rate, with some activists accusing its officials of fronting the black market rate in connivance with bank officials.

Zim Morning Post

ZCDC repossessing vehicles from former bosses

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The Zimbabwe Consolidated Diamond Company (ZCDC) is repossessing luxury vehicles worth US$2m from its former executives as the diamond miner moves to reclaim its assets.

The vehicles were controversially bought in 2018 despite a directive by President Emmerson Mnangagwa for government and all parastatals to cut on spending.

The top executives including former chief executive Moris Mpofu were dismissed over corruption allegations.

Mpofu was subsequently cleared of the charges.

“The actual dismissing letter involved surrendering company property and those vehicles were part of the company property.

The dismissal letters were clear and some of those vehicles have since been recovered,” said a source close to developments.

Contacted for comment, ZCDC spokesperson Sugar Chagonda promised to come back with a response but could not respond by the time of going to print.

ZCDC’s multi-million-dollar vehicle purchase was made using part of the US$80m investment by the government into the diamond producer. ZCDC at the time said it desperately needed to build capacity and to enable the exploration and mining of conglomerates.

The US$80m came after the diamond producer benefited from a US$35m PTA Bank facility. Similar questionable moves around vehicle procurement and expenses have been made at the Ministry of Mines and Mining Development where at least US$1.2m is being blown on vehicle hiring annually for directors.

The latest move comes as ZCDC is currently undergoing a forensic audit aimed at ensuring transparency at the state diamond miner. The diamond producer has been running under the stewardship of Roberto De Pretto in an acting capacity while the board was in the process of searching for a new CEO.

This came after the company fired seven executives last year including then CEO Moris Mpofu as it moved to rebuild public and market confidence following allegations of rampant corruption and abuse of office by the executive team.

Last month, the ZCDC board resigned en masse in alleged protest over the government’s decision to award part of Chiadzwa diamond fields to Chinese firm, Anjin, citing lack of consultation. The former board consisted of Killian Ukama (chairman), Ellah Muchemwa, Elizabeth Nerwande Chibanda, Zenzo Nsimbi, Esau Chiadzwa, Alexander Mukwekwezeke, and Niya Mtombeni.

The debt-ridden ZCDC has been haunted by scandals and under-performance ever since its formation leading to perennial losses of more than US$50m in the period between April 2015 and May 2016 alone. According to the AMG Global audit report on the diamond firm, the company has been operating at a loss since its inception in 2015.

At its peak in 2012, Zimbabwe produced 12m carats, but in 2018 production was low to 2.8m carats.

Zimbabwe is believed to have the potential to account for 25% of the global diamond production and it is targeting to expand its diamond industry to 10m carats by 2023.

ZCDC was formed in March 2015 after a government decree to consolidate all diamond mining companies in Zimbabwe to form a wholly-owned State firm.

Business Times

Another accident at Vumbachikwe mine

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There has been another accident at Vumbachikwe Mine. Reports say a Skip derailed and threw a worker out breaking both his legs in the process.

Sources say the worker was tipped from the Skip on the same spot another worker lost his life in May of this year.

It is not clear if there were any mine inspections done prior to the accident or if the mine’s hoisting systems are serviced regularly.

Mine skips act as shaft conveyors for transporting gathered ore from underground to the surface. This equipment is also used for transferring waste rock and debris for disposal.

The injured worker is reportedly receiving medical treatment at Materdei Hospital in Bulawayo.

Efforts to get comments from Mr. Mlazi the mine manager were fruitless as he did not respond to messages and his phone was not going through.

About Vumbachikwe Mine

Vumbachikwe Mining Company is an African resources company established in March 1980. The company was formed through a reverse takeover of Rhodesian Gold plc, Rhodesian gold exploration and mining company, by a privately held mining company, Vumbachikwe Mining Company Holdings (Pvt) Limited.

With operations and exploration activities in Zimbabwe, and a broad range of exploration and development projects in the African region, the asset base is diverse — gold, nickel, copper, zinc, cobalt and, more recently, diamonds and oil and gas. The company intends to pursue further mining opportunities across the African continent, both independently and, where appropriate, in partnership with other stakeholders.

 

 

Diamond discovery in Hurungwe a Hoax

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The alleged Diamond discovery in Hurungwe is a Hoax.  Exactly a week ago a Whatsapp group “Ngoda PaZimbabwe” was formed alleging there was a diamond discovered in the Chidamoyo Hurungwe area.

The Whatsapp group quickly gained traction with many miners joining in asking for directions to the said area. A group link was shared on various Mining Platforms.

Mining Zimbabwe contacted some of the admins who said they also just heard and were preparing to travel to the said destination. It turns out the information was untrue.

A miner confronted the person who sent created the message and said,” This hoax was sent by a guy at Zvipani township and when I confronted on his inbox, he openly told me that, regai vanhu vauye timbotengerwawo (let people come and buy from us). He’s a businessman”.

Mining Zimbabwe tried to contact the Whatsapp group creator but his number has been unreachable.

Zimbabwe Miners Federation’s Mashonaland West chairperson Chiedza Chipangura was unavailable for comment as her phone went to voicemail.

Hurungwe has vast mineral resources including Amethyst, Beryl, Coal, Copper, Cordierite, Diatomite, Emerald, Garnet, Graphite, Gold, Kainite, Limestone, Mica, Sillimanite, Tantalum, Tin, Topaz, Tungsten, and Tungsten.

MashCentral Mines director in court for abuse of office

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Mashonaland Central’s provincial Mines and Mining Development director Tariro Ndlovu yesterday appeared in court on abuse of office charges after he recommended the issuance of a special mining permit to an imposter who was using President Mnangagwa’s name.

Ndlovu (30) appeared before provincial magistrate Mr. Tinashe Ndokera, who remanded him on free bail.

He is expected back in court in a fortnight.

Ndlovu was ordered to report at CID Bindura every Friday, to reside at his Cleverhill home in Bindura and not to interfere with witnesses.

The court heard that Ndlovu’s duties included recommending mining certificates to the permanent secretary in the Mines and Mining Development Ministry.

Sometime in 2016, Parks and Wildlife Management Authority (ZimParks) requested the Ministry of Mines and Mining Development to move a miner, Mr John Maungwa, from the southern region of Umfurudzi Game Park to the northern region. The move was to pave way for the animal restocking programme.

The ministry responded and removed Mr Maungwa’s two mines, Wickman 22 and Wickman 23, to a forfeited mine in the northern region.

The court heard that Mr Maungwa was issued with a new certificate number 28647 and his records were upgraded.

It is alleged that in 2019, an imposter calling herself Chantelle Mnangagwa applied for a special grant mining certificate.

She had a diagram with coordinates that encroached into Wickman 23 belonging to Mr. Maungwa.

Ndlovu allegedly connived with Mangwiro Sibanda to peg the special grant on Wickman 23. The court heard that Ndlovu was aware of the existence of Wickman 23.

He allegedly acted contrary and inconsistent with his duties and recommended the issuance of a special grant to the permanent secretary. It is alleged that Ndlovu’s actions showed favour to the imposter at the prejudice of Mr. Maungwa.

Acting on the recommendation, the permanent secretary issued a special grant permit number 7580 in Chantelle’s name.

Gold Baron claims gun accidentally discharged

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THE trial of gold dealer Baron Dube who allegedly shot and killed a member of a rival mining gang in Esigodini following a dispute, resumed yesterday at the Bulawayo High Court with the accused person trying to exonerate himself by claiming the firearm accidentally discharged.

Dube (44) of Habane Extension township appeared before Bulawayo High Court judge Justice Maxwell Takuva facing murder charges in connection with the death of Prince Antony Bvundura (22).

Dube, who is out on $2 000 bail, allegedly fatally shot Bvundura in September 2018 in the heat of a fight over a mining claim at Block 13 Atlas Mine in Esigodini.

He allegedly used a Voere 458 calibre rifle.

The shooting happened at a mine belonging to Mr. Tendai Musanangura and Dube said Mr. Musangangura had granted him the authority to occupy it. Mr. Musanangura however denied granting the authority.

Dube, who is being represented by Mr. Leopold Mudisi of Mutendi, Mudisi and Shumba Legal Practitioners, yesterday took to the witness stand and told the court that the firearm accidentally discharged after he stepped on a rock and fell down while fleeing from a mob, which was throwing stones at him while baying for his blood.

“I fell down while trying to run away from the illegal gold panners who were chasing me and in the process, the revolver, which was stashed in my shorts accidentally discharged after I fell into a pit. I didn’t realise that I shot a person until the following day when I was approached by police while trying to fill up the pits, which had been dug by the illegal gold panners,” he said.

Dube denied that he opened fire at his rivals during violent skirmishes, claiming he was the victim. He also denied that there was a gold rush at the mine.

“I was fleeing from the illegal gold panners who were conducting illegal mining activities at the mine which I was assigned to occupy by the owner,” he said.

Under cross-examination, Dube failed to justify why he had to arm himself since he purported that his intention was not to fight anyone.

Upon his arrest, he was found with a gun loaded with seven rounds of ammunition.

The prosecutor, Mrs. Sifiso Ndlovu-Sibanda said on September 26 in 2018, the deceased went to work at Block 13 Atlas Mine in Esigodini in the company of his workmates. On the same day, Dube arranged a gang of about 20 people so that they could disperse everyone and take over the mine where there was a gold rush.

“At about 11 PM, the accused person armed himself with two guns, a revolver and a rifle and his accomplices were carrying machetes, axes, shovels and picks. He drove to the mine in his Toyota Land cruiser with his gang and on arrival at the mine, he chased away all miners, claiming he had been granted authority to operate at the mine by the owner,” said Mrs. Ndlovu-Sibanda.

The court heard that the deceased, who was part of a group of miners fleeing during the skirmishes, was shot and he died on the spot.

According to the post mortem results, the cause of death was a gunshot wound, heart destruction and hypovolemic shock.

A State witness, Mr. Mkhululi Sibanda, in his testimony last year, told the court that Dube and his hired thugs chased away everyone at the mine, claiming the area was his.

Mr. Musanangura also denied giving Dube permission to enter his mining area when he took to the witness stand at the commencement of the trial in November last year.

The trial continues on June 22 with two defence witnesses expected to take to the witness stand.

The Chronicle

Fidelity cash crisis continues, gold taskforce deployed

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Gold submissions to Fidelity Printers and Refiners could further dwindle as the sole buyer has been out of cash at its various centres across the country for days.

The country’s sole gold buyer is currently going through turbulent times as it is failing to import cash because of imposed global travel restrictions due to the Coronavirus Covid-19 pandemic.

Currently, Fidelity is reportedly placing gold miners who submit their precious mineral on waiting lists until cash is available for collection a development that will likely result in more miners particularly the ASM, shunning the country’s sole gold buyer for illegal markets.

A gold miner reported on mining Zimbabwe’s Facebook page that she has been waiting for payment for a week and still yet to be paid.

“There is no cash, I have been waiting a week now,” she said.

This is a catalyst for a looming disaster as it’s most probable miners will turn elsewhere for gold payments or completely halt operations.

A Bindura based miner said mining is his livelihood stopping was not an option so he will do all it takes to survive.

“Life has to go on we can’t keep waiting for Fidelity to put its house in order”, said the miner. “It is not their fault but we also have to survive, buy equipment and pay workers. Currently, Fidelity doesn’t have money so we do what we have to”, the miner concluded.

The miner had been to Fidelity and was informed there was no cash.

Meanwhile, sources reported that the sole buyer has dispatched the Gold Mobilisation Task Force to inspect gold miners submissions as miners are reluctant to submit due to lack of cash.

The national task force is a collaborative effort that involves the country’s security apparatus and the Ministry of Mines and its primary mandate is to make sure that all gold produced in the country is delivered to FPR.