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Mthuli’s Eiti move supported by the mining community

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Mthuli’s Eiti move supported by the mining community

Finance and Economic Development Minister Professor Mthuli Ncube’s move for Zimbabwe to join the Extractive Industries Transparent Initiative (EITI) has been supported by both the mining and business community as a noble move that has the capacity to bring transparency in the mining sector.

Rudairo Dickson Mapuranga 

Professor Ncube last year in his 2020 budget presentation in the National Assembly said that his ministry will allocate resources to ensure that Zimbabwe joins the EITI at the annual Mining Indaba which will take place this month.

The move by Ncube has reportedly received criticism from other cabinet ministers who referred to it as an unpatriotic move that will destabilize the economic independence of Zimbabwe by involving western tools and organisations to monitor the movement of our natural resources.

The criticism by cabinet ministers to the Finance Minister is believed to have emanated from the fact that EITI’s establishment was overseen by the former British Prime Minister Tony Blair in an endeavor to address key governance issues in the extractive sectors. The cabinet ministers are therefore against the idea of Zimbabwe joining EITI because it is a western initiative.

However, stakeholders in the mining sector believe that it is fairly good for the country to join the EITI in order to bring in global standards that promote the open and accountable management of oil, gas and mineral resources. Zimbabwe Miners Federation Spokesperson Dosman Mangisi could not comment much to the idea of Zimbabwe joining EITI. Mangisi could just praise it and expressed that it was good for Zimbabwe to join the initiative.

“it is a good move” said Mangisi.

The mining community also slammed those who were against the idea of Zimbabwe joining EITI as a section of people who are corrupt and are therefore allergic to any idea that seeks about bringing in transparency to the mining community.

According to Renowned Geologist Kennedy Mtetwa, it is very absurd for any person wanting to hide public funds from the public and blocking a move that seeks to bring in transparency. Mtetwa said that it can only be corrupt individuals that want to hide public funds for personal gain that would block such a move.

“You must ask why any person is against transparency? What kind of person wants to hide public funds? What do you call such people? In short, they are corrupt” said Mtetwa.

Former president of the Confederation of Zimbabwe Industries (CZI) Sifelani Jabangwe said that it is of extreme importance for the country to join the EITI because it will benefit the government against unscrupulous businesses that have a tendency of not declaring their mineral production in full.

Jabangwe also said that joining EITI can help the country to know how much the government uses mining revenues because it has been a problem and no one knows what really happens to the funds Zimbabwe is getting from mining production.

“I am in full support of it for as long as it increases disclosure by mining companies of value being obtained from a country. For us I don’t think the major problem is with how our government utilises the revenues but it’s that of too much being siphoned out from the country” Jabangwe said.

The former CZI president also said that for Zimbabwe to join EITI, it will be of benefit to the citizens of Zimbabwe and also the government through a more transparent revenue declaration by mining firms and the government will then demonstrate its mandate by using the revenue for the good of the citizens of this country.

“The government has to also demonstrate it is using the returns from mining for the good of the citizens particularly those in the vicinity of the minerals.  So it will benefit the government from more transparent revenue declaration by major mines but ultimately should benefit the citizens” the former CZI president Sifelani Jabangwe said.

However, it should be noted that the idea of bringing transparency in the mining sector in Zimbabwe and Africa as a whole can also be done by Africa creating a similar organization like EITI in order for the continent to protect itself from imperial fears that are associated with EITI.

About EITI

The Extractive Industries Transparency Initiative (EITI) is the global standard to promote the open and accountable management of oil, gas and mineral resources.

Guided by the belief that a country’s natural resources belong to its citizens, the EITI has established a global standard to promote the open and accountable management of oil, gas and mineral resources. The EITI Standard requires the disclosure of information along the extractive industry value chain from the point of extraction, to how revenues make their way through the government, and how they benefit the public. By doing so, the EITI seeks to strengthen public and corporate governance, promote understanding of natural resource management, and provide the data to inform reforms for greater transparency and accountability in the extractives sector. In each of the 52 implementing countries, the EITI is supported by a coalition of government, companies, and civil society.

The EITI Standard requires information along the extractive industry value chain from the point of extraction, to how the revenue makes its way through the government, to how it benefits the public. This includes how licenses and contracts are allocated and registered, who are the beneficial owners of those operations, what are the fiscal and legal arrangements, how much is produced, how much is paid, where are those revenues allocated, and what is the contribution to the economy, including employment.

This article first appeared in the February 2020 issue of the Mining Zimbabwe Magazine

 

What needs to be done to improve ASM in Zimbabwe

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What needs to be done to improve ASM in Zimbabwe

In many parts of the world, artisanal or small-scale mining (ASM) activities are at least as important as large-scale mining activities, particularly in terms of the numbers of people employed. ASM can play a crucial role in poverty alleviation and rural development. Most of those involved are poor and mining represents the most promising, if not the only, income opportunity available.

By Canaan Joseph Saurombe

In Zimbabwe today ASM has become a poverty alleviation scheme to many. Following the droughts and high input costs in farming most communities have resorted to Artisanal mining (Chikorokoza). However, the sector is perhaps better known for its high environmental costs and poor health and safety record.

Many continue to view it as dirty, unprofitable and fundamentally unsustainable. Whether or not the sector is a net contributor to sustainable development, the fact remains that small-scale and artisanal mining activities will continue for at least as long as poverty makes them necessary. It is therefore essential to maximize the benefits brought and enabled by small-scale mining and to mitigate the costs.

Broadly speaking, artisanal and small-scale mining refers to mining by individuals, groups, families or cooperatives with minimal or no mechanization, often in the informal (illegal) sector of the market.

The following criteria are most often used to define:

  • production volume
  • number of people per productive unit, intensity (volume) of capital employed, labour productivity
  • size of mine claim
  • quantity of reserves
  • sales volume
  • operational continuity
  • operational reliability
  • duration of the mining cycle)

The local definitions vary from country to country according to the macroeconomic situation, the geological framework, the mining history, and the legal conditions.

In Zimbabwe, the macroeconomic situation requires mineral production in order to generate foreign income. The geological framework supports that most mineral resources in Zimbabwe are more amenable to small scale mining than the conglomerate mining and the legal conditions have been putting a thrust towards formalization of the sector since last year.

EMR  (2014)  defines an artisanal miner as ‘a miner who carries out mining activities using approved tools and employs up to  50  people. These include government-registered groups or syndicates or co-operatives.  In particular, artisanal miners engaged in alluvial mining are not permitted to use mechanized equipment or motor-powered equipment (excavators, dredges, James tables, generators, and earth-moving equipment such as front end loaders and bulldozers). Thus,  the official distinction between artisanal miners and small-scale miners in Zimbabwe is based on the scale of operation and degree of mechanisation.  The law expects both categories of miners to be registered.  However, in reality, small-scale miners are generally registered whereas many artisanal miners operate illegally.  If the distinction is based solely on whether or not one is registered, there would be a problem of classifying registered  ‘small-scale’ miners who use ‘artisanal’ (un-mechanised) mining methods. At the local level,  the  ASM sector is subject to rural district councils act (chapter 29:13)  that empowers the local council to impose a land development levy on any rural landowners including miners that fall within the council‘s jurisdiction. In addition, the miners need to have an environmental impact assessment (EIA) approved by the Environmental Management  Agency  (EMA). Renewal of mining licenses is dependent on the miner’s reclamation of land degraded by their mining activities.

Nevertheless, ASM is characterized by a number of conditions:

  • Lack of or limited use of mechanization, and a lot of physically demanding work
  • Low level of occupational safety and health care
  • Poor qualification of personnel at all levels of the operation
  • Inefficiency in exploitation and processing of mineral production (low recovery value)
  • The exploitation of marginal and/or very small deposits, which are not economically exploitable by mechanized mining
  • Low level of productivity
  • Low level of salaries and income
  • Periodic operation by local peasants by season or according to the market price development
  • Lack of social security
  • Insufficient consideration of environmental issues
  • Chronic lack of working and investment capital

 

A  benchmark  ASM  support regime should ‘ensure that the ASM does not, in the long run, produce any harm to the communities but induces positive elements for poverty reduction and sustainable development’  (hentschel et al. 2002:  16).  In order to achieve this, there’s a need to address ASM issues that are aforementioned. All these issues can be grouped into legislation, environmental, technical, marketing, financial, policy and value addition issues.

The only way issues can be addressed with diligence is through government-stakeholder collaboration as well as support through relevant Associations.

Mining Policy and legislation are influenced by the government but put in use by participants. A consistent policy regime is a prerequisite for a sustainable ASM sector which contributes to poverty alleviation and rural development. Good policies motivate players to produce, formalize, develop and engage in Community Social Responsibility (CSR). Policies can be enacted which subsidizes the cost for miners who engage in social responsibilities and rural development. For instance deduction in tax percentage to all cooperates or miners who join hands in observing CSR, such as, construction of roads, schools, donations, etc. An increase in mineral production within an area should equate to an increase in the area’s development and improvement of livelihood. Other ways to improve to favorable mining policy and legislation are:

  • availability of demand-oriented services  (technical,  legal,  socio-economic and environmental).
  • incentives for formal (legal)  ASM e.g. import duty exemptions, taxation relief to upcoming  ASM  companies,  improved access to finance/  credit,  and access to free markets.
  • harmonization of government departments and other stakeholder institutions into the ASM sector policy administration and implementation.  In  Zimbabwe, this is particularly important where a multiplicity of agencies separately seek to collect fees from and regulate,  ASM activities.
  • a transparent and appropriate legal framework.
  • strict monitoring of compliance with the legal framework and penalties against violations.

Technology, in general, is not being practicalised in the sector. Under normal circumstances, the small scale has to be the breeding ground of innovation and the digital revolution. Many ASM enterprises use basic tools for mining, ore handling, and mineral processing, leading to strenuous chores of low productivity.  Appropriate ASM  technological interventions can enhance the economic sustainability of such ventures without compromising on their environmental sustainability.  Filling this technological gap is one way of transforming artisanal mining into vibrant small scale mining ventures.  Similarly, it is possible to upscale from small-scale mining to medium-scale mining by upgrading the operational environment,  including technology/ equipment which is basically showing good business ethics. The idea is to start small with the aim to grow big. Starting with hand tools is ideal but there comes a time when the need arises to upgrade both extraction and processing equipment in order to maintain or increase recovery. For instance, a miner can start well with hand tools only but a time comes when they have to go beyond 30m to maintain tonnage at the same time chemical processing will come to be of need to deal with sulphides, oxides and/ or other additives. Therefore, a good ASM miner has to be business-minded and prepare for the future before odds change.

Tenure and formalisation has always been a complex challenge in the Zimbabwean ASM sector. Many  ASM  activities  are informal and some prefer to remain informal for a number of reasons:

  • lack of incentives to legalise,
  • Bureaucratic procedures and heavy fees to become and remain legal,
  • lack of capacity of the government to enforce penalties, and
  • Non-provision of benefits which should be associated with legalising activities.

A  supportive  ASM  regime should encourage and incentivise legalization or formalisation of  ASM.  To this end,  governments should develop objective, consistent,  transparent and non-discriminatory regulatory mechanisms, which offer easy access to mining titles and legal production. An ordinary miner from the deepest corner of Zimbabwe might not find time and resources to visit a mining office in the city, where they are sometimes tossed from one office to another. Registration procedures should be made easy to follow and at least compiled in one office. The Government through the Ministry of Mines has to accept the efficiency of computerizing information and going paperless, countless times miners register their mines only to be approached by officials later with information that the same mine is under someone else’s tenure. This corrupt and misusing of office has been ongoing and most miners prefer to work on their mines without grabbing the attention of the mines and mining development officials. For us to have a good ASM system every miner deserves a chance to explore and to be respected over their land as long as they are following all the policies required of them to follow.

Technical support in ASM is vital yet it is missing in most ASM mines in Zimbabwe. According to Hentschel et al. (2002),  most ASM  problems are technical and require appropriate technical solutions implemented in an integral approach.

The technical solutions have to be commensurate with the economic potential of the target group and need to be accompanied by education and training, and be affordably replicable. There is a serious lack of knowledge in the ASM sector and valuable mineral is being lost to waste due to this problem. The mining process is very sensitive from exploration up to production, slight misinformation leads to a huge loss. Most ASM mines are losing precious minerals in processing plants because they don’t understand the importance of metallurgical test work and process selections. We can only have a productive and sustainable ASM sector if we employ the right people with the right skill sets. This shouldn’t be a problem especially in Zimbabwe where we have many young technical people who are energetic and highly skilled.

Social support Traditionally,  support to the  ASM sector has largely been technical and financial, and rarely social.  Supporting the  ASM sector through the provision of health and social insurance cover is likely to become an important yardstick against which to judge how fairly a country treats its ASM workforce. There’s need to carry out vigorous campaigns across mining and herding areas,  raising awareness of the need for insurance cover among herders and ASM  workers, and assisting them to obtain insurance cover on negotiated terms. This shows that a nation recognise the ASM sector not just benefiting from its production. Where there is social support, there is motivation and where there is motivation, there is production and good workmanship.

Environment, health, and safety are very important in any industry, whenever we talk about production it is important we also talk about the environmental impact caused and health or life affected. Small-scale mining generally has a greater environmental impact per unit output compared to large-scale mining. The environmental problems associated with ASM  include mercury pollution, cyanide pollution, acid mine drainage,  river siltation,  erosion and deforestation, landscape destruction and cultural damage. Governments are expected to enforce legislation to protect the environment and the health of communities and miners, but legislation and enforcement alone are not enough. A  realistically supportive ASM  regime should couple enforcements with awareness campaigns about the risks of unsafe work practices, and to proffer safer alternatives compatible with local cultural, social and economic norms.  In Zimbabwe, the cost of environmental compliance, administered via the environmental management agency (EMA), is beyond the reach of many  ASM workers who are already burdened with a plethora of other licensing fees from several other agencies/ government departments.

 

Minerals marketing has always been a challenge, especially in the gemstones sector. Typical market problems in the ASM sector include lack of direct markets  (going through intermediaries),  stringent market regulations and illicit trading  (largely due to poor government policies).  Decentralisation of markets helps curb illicit dealings by cutting off unnecessary exploitative intermediaries, who are the main culprits in smuggling,  while at the same time ensuring that miners get higher profits for their produce.  Profit margins can also be increased by assisting the ASM sector to establish local processing industries that add value to mining products. A benchmark ASM  support regime promotes fair trade initiatives that give miners the opportunity of trading their produce under the best selling terms and conditions.

In every jurisdiction, the government sets laws and regulations to govern the way things are done. It’s through partnerships and associations that people respond to set laws in a way to try and relate them to practical tasks. All the above-stated frameworks can be well implemented to support a productive and sustainable small scale-ASM sector. This is the reason why we form Associations like Core Miners Association (CMA) to exhibit a standard operation of a proper small scale mine. It takes proper planning, resource allocation, organizing and controlling to produce efficiently and effectively in the mining sector.

Canaan Joesph Saurombe is the founding chairperson of Core Miners Association, he writes in his personal capacity, can be contacted at [email protected]

This article first appeared in the February 2020 issue of the Mining Zimbabwe magazine

Caledonia receives a generating license for solar project

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Caledonia receives a generating license for solar project

Caledonia has received a generating license for the proposed 18MW solar project to supply Blanket mine. The miner is currently evaluating tenders received to build the project. In the meantime, they are working on clearing the 38 hectares (approx. 94 acres) site for the project.

More to follow…..

 

 

How young women can be incorporated into small scale mining

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How young women can be incorporated into small scale mining

The ailing economy and the unrestrained rise of poverty saw a great number of women finding their way into mining and as the economic conditions continue to take a turn for the worst a lot more women are getting involved in the mining industry.

By Sharon Tsuro

However, due to the various obstacles, women are struggling to be accepted into the sector. Their challenges revolve around societal opinions on gender equality, exploitation, lack of financial capital, equipment and tools, legal and policy restrictions and lack of adequate support from the government. In an era where Zimbabwean women in their numbers are getting relevant training in the mining sector, this article serves to discuss ways in which young technical women can be incorporated into the industry.

The patriarchal nature of the Zimbabwean society demeans the mindset, physique and general capability of a woman. According to Dreschler (2001), cultural barriers impose a heavy burden on women, as a result, limiting their mobility and ability to start up and run their own businesses. They are generally believed to be the weaker sex but the question one would be prompted to ask is, what kind of strength does one need to make it in the mining industry and what evidence is there to prove that women do not have what it takes to survive in the industry? Women now constitute approximately fifty percent of small-scale miners in Zimbabwe (Dreschler; Hoardly and Limpitlaw, 2004). The likes of Mrs. Evans Majola (Founder of Mthandazo Women’s Mining Centre in Collen Bawn Gwanda) and Mrs. Sthembile Ndlovu (Chairperson) are examples of women who are making it in mining.

Henceforth it is of paramount essence to educate society and make them believe that women are capable and can be trusted to do well in the mining industry. This can be done through social media platforms, national television, newspapers, and magazines. The society needs to get used to the fact that it is not an inconvenience or an anomaly to have women working in the mines. Accepting women in the industry actually guarantee economic growth and help alleviate poverty.

It is commendable that the government allowed small scale miners to sell to Fidelity Printers. In 2016, they set up a loan facility to anchor the production of gold by artisanal miners (The Gold Development Initiative Fund). Sadly, the government served only twenty-million out of the one hundred and fifty million fund for the female miners. This included money for training at Zimbabwe School of mines. This goes on to show that even the government has little confidence in women who are in the mining industry. There is a lot more that the government can do to support young women in the mining sector. In an interview done by the Global Press Journal, a spokesperson for Fidelity Printers said distribution of funds had been poor and only ten percent of the twenty million had been given out at that time. The authorities need to start supporting women not only theoretically because they are also the future of this nation and thus, but they should also be given enough resources that will enable them to compliment the men in resuscitating the economy through the exploitation of minerals.

The exploitation of women by men in the mining sector needs to stop. In as much as women may want to be included in the mines, no living being can tolerate abuse especially if it’s gender-based. Women have complained of being sexually assaulted by men who only see objects meant to satisfy their physical needs whenever they feel like. In other instances, women are forced to surrender the proceeds of their labor to men who bully them around. According to Sophia Takuva (Secretary of the Zvishavane Women Miners Association), Amid all the talk of land plots, machinery and earnings at ZWMA, there is always an unspoken problem that haunts the discussions in the group. Women are harassed and abused by men at all stages of the mining process. She said, “Many women we know have experienced it, its just one of those things that are difficult to talk about.” In order to make the mining industry a better place for the women, stern measures should be put in place to discipline offenders and women should be encouraged to speak up about abuse. Women need to know that the mining industry is not a male territory and that they have rights.

After graduating, young women can only dream of getting employed let alone start their own mining businesses. The lack of financial capital is the deadlock to the brilliant minds of these women. This has been worsened by their subordinate position in society. Financial institutions are allowed to give out loans to everyone regardless of gender but women still remain victims of distrust. According to (Maramba 1998), most financial institutions will not grant loans to women unless the husband supports the application. This proves to be very hard on the young technical women who would have finished their courses but are either unemployed, don’t have assets to use as collateral or are single. Women need more organizations that will have enough confidence in women to be able to fund them.

The legal and policy measures are a stumbling block for women who would wish to penetrate the mineral exploiting department. The process of acquiring a mining license is not inclusive and it takes way too long. There have been complaints of women who wait for years before they can start working legally. Some of the costs needed to acquire the necessary documentation are way too steep. In order to curb this, the Mines and Mining Development Ministry needs to make the process faster and easier for those that want to invest in Zimbabwe’s mining industry.

In a nutshell, young technical women need a society, government, and financial institutions that believe that they are more than capable of working with men in the mining sector. The media is a major source of definitions and images of social reality (McQuail1994:1), therefore it should be used to change archaic beliefs about what women can and can’t do. Given a fair chance woman can help create a better Zimbabwe.

Written by Sharon Tsuro. Sharon is a Metallurgy graduate from the Zimbabwe School of Mines and she
writes in her own capacity. She can be contacted via email on [email protected]

Artisanal Mining poverty driven – Maguwu

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Artisanal Mining poverty driven – Maguwu

CNRG director Farai Maguwu says artisanal mining in the country is a poverty-driven crisis and there is need for government to offer alternative livelihood options to local communities to stop the illicit trade.

The Centre for Natural Resources Governance (CNRG) director said people in communities were living miserable lives hence their decision to venture into risky artisanal mining.

However, the trade has seen police officers besiege gold mining areas hunting down the informal miners following a rise in machete attacks across the country.

Last week, armed police raided the gold-rich area of Penhalonga, northwest of Mutare where they arrested 186 illegal miners.

Police said the operation was meant to flush out illegal miners, sex workers, drug paddlers, and illegal shop operators who are reported to be fuelling illegal gold panning activities.

However, Maguwu said there was a need to find a holistic approach to stop artisanal mining.

“A holistic approach is needed. Artisanal mining is a poverty-driven issue. In Zimbabwe, it has been exacerbated by climate change and high unemployment,” he said.

Without offering alternative and sustainable livelihood options, Maguwu said the illegal panners will be back in the pits the moment they are released from custody.

“Government should proffer solutions and alternatives. Without offering alternative and sustainable livelihood options, they will be back in the pits the moment they are released,” he said.

Artisanal miners who managed to escape the police dragnet and spoke to this publication after the police operation said without an alternative livelihood option, they would continue to risk their lives by digging for gold ore in the pits and disused shafts in Penhalonga.

“We have families to feed, so the government should give us an option. We want the government to formalise artisanal mining so that we can eke out a living from our natural resources,” said Mike Rondozai, 34.

Richard Maruta, 43, weighed in, saying most of the artisanal miners were retrenched at a local mine and they no longer have any source of income instead of illegal mining.

“All the local mining companies that have capacity to provide employment closed long back. We are now destitute in our own land, but we are humans and we need to survive,” Maruta.

DTZ -Ozgeo mine was closed in November 2013 following a government directive to shut down all alluvial gold mining operations in the country that were mining along river beds while Redwing Mine also put a lid to its operations citing viability challenges. Both mines are in Penhalonga.

About CNRG

CNRG Exists To Ensure Natural Resources Are A Blessing And Not A Curse To The Host Communities. The Extractive Sector, Whilst Viewed As A Boom By Government And Corporations, Is In Reality Doom To Most Communities Who Have Fallen Victim To The Paradox Of Plenty. Mining Has Led To Somatic Violence, Deleterious Psychosocial And Health Impacts On Communities, Especially Women And Children. It Is Harmful To The Environment Especially Where There Are No Tight Regulations To Reduce Environmental Impacts Of Extractive Industries. The Government Of Zimbabwe Acknowledges That The Extractive Sector Is The Chief Architect Of Illicit Financial Flows From The Country.

NewZimbabwe

Amplats CEO resigns

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Amplats CEO resigns

THE CEO of Anglo American Platinum (Amplats) parent company for Zimbabwe Platinum miner Unki Mr CHRIS Griffith, called time on his seven-year stint as CEO of the firm saying it had represented “the pinnacle” of his career.

His resignation is effective April 2020.

“After more than seven years at the helm, and given all that we as a team have achieved, this is now the natural time for the next generation of leadership to take this business forward and deliver further value,” he said in a statement.

Amplats said Griffiths’ replacement would be an internal appointment.

Griffiths goes out on a high after taking over at Amplats during a period of restructuring and plummeting platinum prices.

During this period, Griffiths famously clashed with former mines minister, Susan Shabangu, who reacted angrily to the firm’s plan to cut 400,000 ounces of platinum production, potentially affecting 14,000 jobs. She threatened to withdraw Amplats’ mining licence, but the restructure proceeded in any event.

Today, the company’s shares are more than 200% stronger than in 2013, assisted by sky-high pricing for palladium and rhodium in particular.

In February 2019, Amplats approved a R11,25/share payout, its largest in 10 years having resumed the dividend and hiking the payout ratio to 40% of earnings. This payout was dwarfed, however, by the firm’s 2019 performance, announced today, in which Amplats unveiled a final dividend of R11.2bn and a special dividend of R25/share – its first since 2001 – taking the total dividend to R14.2bn equal to R52.60/share.

This was on the back of a doubling in EBITDA to R30bn year-on-year. Net cash was R17.3bn. Headline earnings came in at R18.6bn, an increase year on year of 145%. Headline share earnings were R70.87/share.

The improvement, as stated previously in Amplats’ trading statement, was partly based on a 36% improvement in PGM prices. The other major highlight of the 12 month period was that it occurred without a single fatality.

Asked to comment on his decision to resign, Griffith said: “I’ve done what needed to be done for the company. It has got good momentum and this is not the peak, but it is a good time for succession.

“I will look for the next challenge. I believe I have got the energy and potential and perhaps I will look for something different.”

His decision to step down – about which he had been considering “for a little while” did not presage a switch in company strategy, or disagreement with the major shareholder, Anglo American. “It does not signal major change in strategy at all. I’m 55 years old. I think I’ve got one or two positions left in me so you don’t need to scratch for an ulterior motive.”

Source: Mining MX

How to protect your mine from machete gangs

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How to protect your mine from machete gangs

Machete gangs have wreaked havoc in the small scale mining industry and in rare reported cases have small-scale miners succeeded in foiling machete gang’s attacks.

Ongoing blitz from the Police has had machete gang leaders going underground in fear of the long arm of the law making the industry much much safer. A Kadoma menace machete gang known as Ziga went viral early this year with the gang showing off their small loot armed to the teeth with machetes, swords, and knives on video. The video got over 13 000 views on the Mining Zimbabwe YouTube channel. The fearsome video attracted attention from the Police, saw the gang leader getting arrested in Rushinga 385km away a few hours after it surfaced.

Small-scale miners definitely need to boost their security in order to minimise the risk of getting easily robbed by the so-called Machete gangs or Mashurugwi as they are popularly known countrywide. The gold they steal is believed to be smuggled into South Africa where the precious commodity fetches a higher price and is paid in a more preferred currency to our local dollar.

Below are some of the methods to safe­guard your mining claims.

 1 Your production should be your secret

Retired Chief Inspector Elia Sungiso said that “Machete gangs” are not prophets. They are fed with information from within for them to strike. Their modus operandi is they get tipped on mining claims performing well and they ask for names for easy access to the target site. Suspects in such cases are disgruntled workers working at target mines who will, in turn, be given a “cut” (share of the loot). It is highly advisable that mine owners vet their workers and pay decent rates. They should also inform workers on the dangers and risks of discussing mine performance out­side work zone.

  1. Secure your claims (fencing)

Miners should make it a habit of fencing their operations and control access to their operations. It takes seconds for machete gangs to access open operations and fighting them off is usually impossible as they pounce unannounced and in large numbers. Should there be no security guards available resting mineworkers can take turns to monitor entry points.

 3.Install CCTV

Miners can install a cheap CCTV system to monitor their operations and entry points. In this digital age, CCTV can be monitored remotely on multiple devices. An example is before allowing access to unfamiliar faces at entry points the site manager, foreman or owner can log onto the CCTV and check if they know whoever is at the gates. If they sense trouble they can raise alarm. In case perpetrators breach perimeter fence undetected CCTV can help identify the suspects after they are gone. All this can cost under US$300.

 4. Pay fair wages and treat workers well

It’s a well know secret that machete gangs get their information from within the targeted operations. The information usually comes from disgruntled workers who will get paid a commission or “cut” for snitching. Some mine owners from all races are known to ill-treat their workers with a number of It’s a well know secret that machete gangs get their information from within the targeted operations. The information usually comes from disgruntled workers who will get paid a commission or “cut” for snitching. Some mine owners from all races are known to ill-treat their workers with a number of videos online of miners physically assault­ing workers. This is an excellent recipy for having workers trading inside information.

 

  1. Hire a security company

Miners should hire armed guards who have training in unarmed defence patrolling their areas. The upside of Zimbabwean security companies is the law clearly stipulates they should only be owned by ex-servicemen/ women from the Police, Army or Prison service meaning a security company’s guards can be adequately trained.

On request, Security companies can provide experienced armed personnel who usually succeed in apprehending trespassing elements. Those employed as Guards should have a clean criminal record, vetted by the Police.

 

  1. Unknown vehicles with lots of people is a sign of danger. Create relationships with local communities, headmen etc

Mines are usually located in remote areas. It is an added advantage to have miners familiarise themselves with villagers and village heads and exchange contact numbers. It is highly important to know who’s who as it may be an ordinary villager that may be able to raise alarm when you cannot. The more villagers are familiar with operating miners in their areas the easier it is to notice unfamiliar vehicles and faces. A good example is in the Mukaradzi area where a machete gang was apprehended after miners and locals in the area got suspicious seeing an unfamiliar vehicle and unfamiliar faces prompting the miners to seek Police assistance.

  1. Be familiar with your local Police and Emergency hotlines and local miners WhatsApp  groups

In case of suspicion, the Police are the quickest way to stop a machete attack. These days the Police have WhatsApp hot­lines it is highly advisable for anyone venturing into mining to ensure they have contacts to their nearest police station and join local miners’ WhatsApp groups. This makes it easy for Police to pinpoint the location of a distress signal and easy assistance from local miners.

Mount Darwin Police stopped an almost machete victim mine after a quick tip-off. Police responded swiftly, searched the gang of eight and four machetes, four okapi knives were discovered in the boot of a Toyota Wish vehicle they were using. On further interrogation, the gang confessed to being behind the spate of attacks in Shamva, Mazowe and behind the stabbing of soldiers in Bindura. The gang was jailed.

  1. In case of attack stay calm usually, you are out-numbered

Machete-wielding criminals as we saw with the Ziga machete gang who numbered over 40 outnumber small-scale miners at even the largest operation. If you are outnumbered and not armed it is highly advisable to comply with the gangs.

 

  1. Only Hire vetted workers

With the spate of robberies that escalated last year it is important to hire people with a clean criminal record.

Workers should have fingerprints vetted by the Police, produce ID copy and have traceable references. This is a process that the majority of ASM take for granted however with the spat of robberies happening it is of paramount importance that you trust who works for you.

 

  1. Avoid working at night

Its common knowledge that evil lurks at night. If you do not have adequate security and lighting working at night increases risk.

Written by Chief Inspector E. Sungiso (retired). He has trained thousands of Police recruits who graduated into full-time servicemen and women. He can be contacted on [email protected]

This article first appeared in the Mining Zimbabwe Magazine February 2020 issue

ASM to benefit from GDI training school

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ASM to benefit from GDI training school

Great Dyke Investments is in the process of setting up a training school for Artisanal Small Scale Miners at the Darwendale Integrated Platinum Group Metals (PGM) Project.

The school according to the officials will provide training to ASM on how to properly conduct mining. See video below:

 

EMA speaks on Great Dyke Investments Platinum project

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EMA speaks on Great Dyke Investments Platinum project

EMA speaks on Great Dyke Investments project, the Darwendale Integrated Platinum Group Metals in Norton, Zimbabwe. The Great Dyke Investments mine is expected to be the biggest Platinum miner in Zimbabwe in a few years to come.

About Darwendale Integrated Platinum Group Metals

Darwendale Integrated Platinum Group Metals (PGM) Project is operated by Great Dyke Investments (Pvt) Ltd, a joint venture established on a 50/50 basis between Russian AO Afromet and the Zimbabwean company.

Darwendale deposit is a part of the Great Dyke in the Republic of Zimbabwe, one of the world’s largest systems of PGM mineralization with shallow dipping of ore bodies. Total resources of the deposit amount 50 mln oz (1,550 t) of PGMs, of which 17.6 mln oz (550 t) have been thoroughly explored and confirmed according to JORC standards.

The Project is earmarked high priority for state and economic relationship between Russia and Zimbabwe. The Intergovernmental agreement has been signed in support of the Project by both Russian and Zimbabwean governments. Moreover, the Special mining lease and the National project status have been granted to Project which fix significant preferences and benefits in accordance with the Zimbabwean law.

Ziyambi fails to justify Hwange Colliery reconstruction, bid dismissed

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Ziyambi fails to justify Hwange Colliery reconstruction, bid dismissed

Justice Minister Ziyambi Ziyambi’s bid to put Hwange Colliery under reconstruction hit a snag after the High Court dismissed the move.

Justice David Mangota ruled that Ziyambi failed to justify his move given that a scheme of arrangement which was ratified by the government and other shareholders with a view to salvaging the coal mining firm from collapse, was still operational.

Ziyambi approached the court with the application without consulting other shareholders, saying the problems afflicting the company needed swift action to avert possible liquidation.

In 2018, Ziyambi told the Parliamentary Portfolio Committee on Mines chaired by Norton legislator Temba Mliswa that the company owed government $150 million and had posted a $23 million loss in the half year to June of the same year.

He then said as Justice minister, the law empowered him to put any company under reconstruction without consulting other shareholders if necessary. But his move was opposed by a trustee of the debenture holders of Hwange and chairman of the court-sanctioned scheme of arrangement, Andrew Lawson and a legal entity called Messina Investments.

Lawson and Messina submitted before Justice Mangota that the reconstruction order sought by Ziyambi was nothing, but a weapon which Mines minister Winston Chitando, had hatched to remove them from Hwange’s board after they had proposed to conduct a forensic audit of its operations.

Lawson and Messina claimed, government through Ziyambi’s sought order, was to run Hwange alone to the exclusion of its other co-owners and as such the application was ill-conceived.

In his lengthy judgment delivered on February 12, Justice Mangota said: “In the absence of a written report from, or by, the Mines and Mining Development ministry, therefore, the minister appears to have issued the order out of nothing.”

Justice Mangota said Ziyambi ought to have proved what he claimed to have been in existence when he issued the reconstruction order.

“He makes allegations about Hwange’s unwholesome circumstances. He should prove what he claims to have been in existence when he issued the order. His failure to prove the presence, in his mind, of the matters which are mentioned in section 4(1) of the Reconstruction Act places his application for confirmation of the order in serious jeopardy,” Justice Mangota said.

In his submission, Ziyambi had presented that his decision was based on section 4(1)(e) of the Reconstruction Act, adding that: “It stipulates that when you do that, you have to inform shareholders and that if in the opinion of the minister it is necessary to avert further harm to creditors of the company, then the minister can take action to put the company under reconstruction without affording shareholders a chance to respond, and I decided to do that at that stage.”

But Justice Mangota ruled against him saying: “The application, it has already been shown, hangs on nothing, the order which the minister issued is premised on nothing. The report of the administrator which was made in glowing terms cannot justify confirmation of the order the issuance of which was/is based on nothing.”

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