21.3 C
Harare
Home Blog Page 620

Power clinging seed in ZMF shambles

0

The high court of Zimbabwe recently announced that the elections that brought Henrietta Rushwaya to the helm of Zimbabwe Miners Federation (ZMF) were questionable. However counter accusations are rife amongst miners that they are the rightful owners of ZMF and their decision to support Rushwaya can not be subverted by one Association out of the Current 50 affiliates. Furthermore the issue of the old executives continued efforts to cling on to power even after 15 years has been exposed as questionable on different avenues.

Reports show that in early May 2018, small scale miners under ZMF petitioned a letter to the Minister of Mines and Mining Development Winston Chitando to call for elections to usher in a new leadership and replace the old one, whose term of office had expired on the 26th of April 2018 the same year.

The then ZMF president Ishmael Kaguru responded to the outcry of miners saying that it was wrong for the federation’s membership to insinuate that he is clinging on to power, he also said that his leadership was willing to hold elections but was tied up due to lack of funds.

Old Executives continued efforts to cling on to power even after 15 years has been exposed and is questionable on different avenues.

Miners were also accusing the old executive of clinging to power in 2015 unscrupulously without the grace of all interested parties, one miner said that the elections were done Nicodemusly.

A group of ZMF members claim that towards the end of 2017, some members sought the executive to hold elections so that when their term ended, those elected would quickly take over. However the executive was so reluctant to hold elections until their term expired.

According to one member of ZMF who refused to be named, the elections were later funded by the miners who were clamoring for change.

“Miners pushed for the June 2018 elections themselves because they were tired of the old serving and incompetent executive who’s fifteen year tenure had seen the miners remain stagnant” he said.

However, according to some members of the new Executive, the former executives sought to disrupt the newly elected Executives by filing the court application seeking to nullify the election.

“It was later discovered that while Miners were attending the election process an aggrieved official of the Zvishavane/ Mberengwa Miners Association who had subsequently lost the Chairmanship position during the election process had filed a High Court application which was to be  heard on the 14th of June, 2018” they said.

The group of miners under the banner Zvishavane – Mberengwa Miners’ Association (ZMMA) accused Rushwaya of attempting to take over the leadership of ZMF through unorthodox means. They filed an application at the High Court seeking an order to block the holding of the elections and to have them indefinitely rescheduled arguing that Ms Rushwaya wanted to usurp ZMF leadership through unconstitutional means.

According to one member of Zimbabwe Artisanal and Small scale Miners Council (ZASMC) the old executive was seeking to make things right rather than returning and clinging to power.

“Our understanding of the Kaguru led Executive is that they are not clinging to power but they want things to be done correctly and according to the ZMF constitution” he said.

The ZASMC Executive Member went on to say that the old council want only 14 associations to convene a General Council meeting and plan for the next election.

“They want the 14 affiliates as of prior to June 2018 to convene a general council meeting and put a roadmap leading fresh and fair elections. They are aware that their term expired but they just want fairness” he said.

However, his view did not go down well with some members of the new Executive who labeled the former Executive’s plans as a shameless example of self-interest and a way of seeking to return to power at all costs.

“The whole ZMF comprised of 30 affiliated associations at the time of voting as Miners came from all provinces during the period leading up to elections  to oust the old executive, why would they want to elect the New Executive without the grace of other associations they queried? The New Executives cited that it was concerning that out of the 30 associations that participated in the election only the complainants association deemed the election not above board yet the constitution clearly states that the General Council which is made up of all 30 Associations votes in Executives and has final say on ZMF Business so how can one association attempt to hold the Federation hostage under the old Executive whom we voted out” they said.

The ZASMC Executive Member also said that it is vital for only associations who were affiliated without controversy to hold elections.

“The 14 associations that were affiliated according to the old executive records should be the only participants and their claim makes sense in that the Rushwaya Executive actually created fictitious associations and paid for them in order for them to be voted in. There is proof that someone paid for some associations but we are saying with or without those associations the general council as the supreme body must now maintain its integrity by  being transparent” he said.

However, new the executive slammed for being absolute in the name of holding the constitutionalism.

“The issue at hand is that due to the unpopularity of the old executive there were payments and affiliations recorded in the time frame leading up to the elections as Miners made a consolidated effort to oust the old executive it is necessary to make note Ministry officials were present to oversee the numbers in attendance and registers are available for assessment. Even as we speak ZMF membership has risen to 50 affiliate associations. Are we then saying only the voice of 14 miner associations out of 50 associations will participate and be heard? And the forever dominant question remains why did members of the Old Executive Grace the elections if they were not above board to date we are yet to get a proper response to this question” they declared.

Another Executive pointed out that a the Rushwaya led executive had decided to form a new organisation prior to the release of the court order as they were encountering numerous challenges using the ZMF Banner and upon the decision to on board unregistered miners, change of constitution would be required and the Federation needed to take a new direction including encompassing other minerals primarily base minerals and semi precious who have active representatives championing their challenges within the Federation Structures. In light of the current situation Miners would prefer a new direction.

ZMF advocate   said that, the federation is just a federation which is formed in terms of its constitution and there is nothing that stops anyone in Zimbabwe from forming an organisation using its own constitution and their own trust and miners are free to do that.

Tapson Dzvetero also said that, it was premature for Kaguru’s executive to celebrate as the matter was subject to litigation.

“The matter is still subject to litigation because there has been an appeal that has been lodged against that order. So it is still sub judice and it is premature for you to say they have lost when there is still an appeal which is pending. The effect of the appeal is to suspend the effect of the order that they are currently in possession. So you have to await the decision of the Supreme Court on the issue, Meanwhile there is nothing to stop the formation of a new organisation” he said.

According to one member of the new executive, miners reserve the right to affiliate to whomever they wish and the organisation with the largest number of affiliates should be the rightful voice of the Miners.

“Many miners were no longer keen to affiliate with ZMF old executive due to the numerous shenanigans and unscrupulous activities that were taking place this is a well known fact in mining circles and communities. It appears as though the Supreme Court will decide on the ZMF issue however Miners will be free to unite under which ever organisation they choose to continue advocating for sector changes and advancement” she said.

Rushwaya challenges high court order

0

ZIMBABWE Miners’ Federation (ZMF) president, Ms Henrietta Rushwaya, has appealed to the Supreme Court against a recent High Court order which stripped her of the presidency of the small-scale miners’ body.

Ms Rushwaya lost the presidency of the association after the High Court declared the results and proceedings of the elections, which brought her to the helm of the small-scale miners’ body, invalid.

She was elected ZMF president in June last year but a group of small-scale miners under the Zvishavane-Mberengwa Miners’ Association (ZMMA), challenged her election at the High Court.

In a case filed at the High Court in Bulawayo under case number 1652/18, the miners accused Ms Rushwaya of using “unorthodox” means to take over the ZMF leadership.

They sought the High Court order to block the holding of the elections and to have them indefinitely rescheduled arguing that Ms Rushwaya wanted to seize ZMF leadership through unconstitutional means.

High Court judge Justice Nicholas Mathonsi granted a provisional order suspending the holding of elections on June 14, 2018 but the federation went ahead with the elections, which were won by Ms Rushwaya. The old ZMF executive led by Mr Ishmael Kaguru boycotted the elections.

Through her lawyers, Antonio and Dzvetero legal practitioners, Ms Rushwaya filed an appeal at the Supreme Court stating that:

“The appeal be allowed. That the operational part of the court a quo’s order be substituted with the following:

“That the provisional order granted by this court on the 14th of June and be is hereby dismissed with costs”.

Among others, Ms Rushwaya’s lawyers argued that this was on the grounds that the court ‘erred at law and grossly misdirected itself’ on the issue of locus standi in failing to find and discounting that the deponents to the appellant’s founding papers were properly before the Court.

“The court a quo erred at law and grossly misdirected itself in failing to find as it ought to have done that capacity to depose to an affidavit is determined by one’s ability to swear positively to the facts.

“The court a quo erred at law and grossly misdirected itself in failing to find as it ought to have done that there was material non joinder of parties as occasioned by respondent’s failure to cite the parties to which aspersions were cast upon thereby denying such parties an opportunity to be heard,” her lawyers argued.

Bulawayo High Court judge, Justice Nokuthula Moyo, in her ruling last week, said:

“The court, being a court of law, cannot embrace a willy-nilly departure from one’s constitutional dictates. Not only is adherence to one’s constitution good for law and order, but it is also a good corporate governance principle. 

“The reason why there is a constitution in the first place is so that the association or organisation operates within the confines of good order to avoid chaos.”

She said the court could not encourage organisations to breach their own constitutions and do as they please and thus the court cannot lend a hand to allow an unlawfulness to prevail._The Chronicle

Caledonia declares quarterly dividend of 6.875 cents per share

0

Rudairo Mapuranga

The body of directors Caledonia Mining Corporation on Tuesday  declared a dividend of six and seven United States cents (USD 0.06875) on each of the company’s common shares.

According to its press release, the relevant dates relating to the dividend are, on April 11 2019 ex-dividend date, April 12 will be Record date and then on April 26 will be dividend cheque mailing date.

“Shareholders and depositary interest holders in Canada and the UK will be paid in Canadian Dollars and Sterling respectively. The Canadian Dollar and Sterling dividend payments will be calculated using the relevant Bank of Canada exchange rates on the record date” reads the press release.

Caledonia’s strategy to maximise shareholder value includes a quarterly dividend policy which the board of directors adopted in 2014. It is expected that the current dividend of twenty-seven and a half United States cents per annum, paid in equal quarterly instalments, will be maintained.

In November 2018, Caledonia announced that it had signed a legally binding sale agreement to increase its holding in Blanket Mine to 64%, subject to receipt of, amongst other things, regulatory approvals. Caledonia’s shares are listed on the NYSE American (symbol: CMCL) and on the Toronto Stock Exchange (symbol: CAL) and depositary interests representing the shares are traded on London’s AIM (symbol: CMCL).

Blanket Mine plans to increase production from 54,511 ounces of gold in 2018 to approximately 75,000 ounces in 2021 and approximately 80,000 ounces in 2022; Blanket Mine’s target production for 2019 is between 53,000 and 56,000 ounces. Caledonia expects to publish its results for the quarter to March 31, 2019 on or around May 14, 2019.

Gold steadies as dip in dollar offsets rising equities

0

Gold prices  steady on Wednesday as a weaker dollar offset pressure on the metal, which recovered from a four-week low in the previous session, while a rally in equities to multi-month highs capped bullion’s safe-haven demand.

Spot gold was flat at $1,292.48 per ounce as of 0354 GMT, having touched its lowest level since March 7 at $1,284.76 in the previous session. U.S. gold futures firmed 0.1 percent at $1,296.90 an ounce.

“There won’t be much movement in gold prices as stocks have gone up to their highs in Asia and investors are not seeing gold as a good safe-haven,” said Brian Lan, managing director at dealer GoldSilver Central in Singapore.

Asian shares climbed to seven-month highs as investors lapped up signs of progress in U.S.-China trade talks and brisk economic data.

Markets drew hope from White House economic adviser Larry Kudlow, who on Tuesday said the two countries “expect to make more headway” in trade talks this week.

U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin are due to resume talks with Chinese vice premier Liu He later on Wednesday.

The dollar index which had secured preference over gold on the backdrop of U.S.-China trade tensions, was weaker about 0.2 percent, after climbing a 3-1/2-week peak in the previous day.

A weaker dollar tends to make gold cheaper for holders of other currencies.

The market is also closely following developments around Britain’s departure from the European Union. Prime Minister Theresa May said on Tuesday she would seek another Brexit delay to agree an EU divorce deal with the opposition Labour leader.

“Brexit is approaching some conclusion; in the least, this should weaken the dollar against both the sterling and the euro and perhaps give gold a bit of a lift,” INTL FCStone analyst Edward Meir wrote in a note.

Signifying investor sentiment toward bullion, holdings in the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, fell to their lowest since March 8 at 768.10 tonnes on Tuesday.

Among other precious metals, spot palladium was up 0.4 percent at $1,434.55 an ounce.

Silver gained 0.3 percent to $15.16 per ounce having touched its lowest level since late December at $14.90 in the previous session, while platinum rose 1.1 percent to $851.15._Reuters

Gold miners ordered to pay rates in forex

0

BUBI Rural District Council (RDC) is now demanding that mining companies operating in the gold rich area pay 55 percent of their rates in foreign currency as they partially earn forex.

The council says the new development is in line with Government’s Monetary Policy which stated that mining companies would receive 55 percent of their revenues in foreign currency with 45 percent in RTGS dollars.

Bubi RDC chief executive officer Mr Patson Mlilo said the local authority held a full council meeting last Wednesday, which resolved that mining companies should partially pay in forex to council. 

“For the mining companies, we are saying that they get 55 percent of their revenues in US dollar and 45 percent in bond. So, the same proportion should be used to pay the local authority’s taxes,” he said.

Mr Mlilo said partial payment of bills in foreign currency would help improve service delivery in the district.

“For instance, if a motorised grader develops a mechanical fault, it takes very long to fix it. So if you have foreign currency in your bank account, it makes it easy to procure parts. Even in purchasing fuel, we have been using coupons but each time you get to a service station they might tell you that there is no fuel but when you have forex it is easily accessible and does not stall service delivery,” he said.

Mr Mlilo said the council would hold a meeting with the involved companies next week to update them about the new developments.

He said Bubi RDC was still consulting with its stakeholders on how they can clear their $3 million arrears. 

In the Wednesday full council meeting, Mr Mlilo said the council officials had proposed a 50 percent debt clearance incentive for individuals who pay their bills within a stipulated period.

“However, the councillors proposed that they first consult the community on how this should be implemented. 

“So, we will make the final decision after the councillors have concluded their community consultation meetings on the said subject,” he said._The Chronicle

Uganda seeks again to redevelop defunct Kilembe copper mine

0

The Uganda government is making another attempt to reopen a defunct copper mine estimated to contain 4 million tonnes of ore, it said on Tuesday, and several international firms have expressed interest in the project.

Once a major producer of copper and cobalt, Kilembe was abandoned by Canadian firm Falconbridge in the 1970s when Uganda’s economy stagnated under the erratic leadership of dictator Idi Amin Dada.

More than 20 companies had expressed interest in the tender — Evelyn Anite, the state minister for investment and privatisation

Previous government efforts to revive the mine, near Uganda’s border with the Democratic Republic of Congo, were stymied by a downturn in the commodities market and a failed 2013 deal with a Chinese investor, eventually cancelled after years of slow progress and missed targets.

The ore in Kilembe mine is estimated to be 1.98 percent pure copper and 0.17 percent cobalt, Uganda’s Department of Geological Survey and Mines said.

More than 20 companies had expressed interest in the tender, Evelyn Anite, the state minister for investment and privatisation, told Reuters.

Jennifer Hinton, director for East African operations at Canadian miner M2 Cobalt Corp, told Reuters it was one of the firms that had jointly expressed interest in the mine, along with partner Australia’s Jervois Mining Ltd.

M2 already owns 2,400 square kilometres of exploration acreage in Uganda, some near the Kilembe Mines.

“The Kilembe Mine was historically a significant copper producer, and the best place to find more copper is around a copper mine,” said Hinton. “With serious investment in the right modern exploration techniques we believe the potential for discovery of new deposits is high.”

The government decided to redevelop the Kilembe Mine, which sits on the foothills of the ice-capped Rwenzori mountains, in a cabinet meeting on Monday. The redevelopment would include “further mineral exploration to add to the known reserve base,” a government statement said._Reuters

Iron ore prices shift structurally higher on Vale woes

0

Iron ore prices in China reached a record high on Tuesday as market participants wrestled two dilemmas, namely the likely temporary weather-related disruptions from Australia and the rather more serious safety outages in Brazil.

A major tropical cyclone hitting the main producing and shipping areas in the world’s largest iron ore miner was always likely to boost prices, and indeed, markets largely responded as expected.

Iron ore exports from Brazil dropped to 23.3 million tonnes in March, according to Refinitiv, which was the lowest since the data started to be compiled in January 2015

Iron ore futures on the Dalian Commodity Exchange rose 4.2 percent on Tuesday to reach 665.5 yuan ($99) a tonne, the most since the contract starting trading in 2013.

Spot 62-percent iron ore for delivery to China, as assessed by Argus Media, was at $88.50 a tonne on Monday, close to the two-year peak of $90.75 reached on Feb. 11, shortly after the fatal tailings dam collapse at a mine operated by Brazil’s Vale SA.

Tropical Cyclone Veronica will knock about 6 million to 8 million tonnes out of BHP Group’s production in Western Australia state, the world’s third-largest iron ore miner said on Tuesday.

This represents about 2.8 percent of the company’s 2018 production, and it was a similar story at Rio Tinto, with Australia’s top iron ore producer saying it expected to lose about 14 million tonnes of output, or about 4 percent of its 2018 total.

The impact of the storm could be seen in Australia’s iron ore shipments in March, which dropped to a three-year low of 57.5 million tonnes, according to vessel-tracking and port data compiled by Refinitiv. February exports were 68 million tonnes.

The loss of these exports came just at a time when the market was having to reassess the longer-term impact of Vale’s safety issues.

The Brazilian producer on Monday said it failed to obtain stability certificates for 13 dams under review following the rupture of another dam in January that killed hundreds.

The latest safety concerns came after the world’s largest iron ore miner said last week it expects to sell 75 million tonnes less than planned this year following the dam burst and heightened security concerns over its tailing ponds.

Iron ore exports from Brazil dropped to 23.3 million tonnes in March, according to Refinitiv, which was the lowest since the data started to be compiled in January 2015.

While it’s possible that Australia’s major producers could ramp up production over the rest of 2019 and recover some of the lost tonnes, the reality facing iron ore consumers is that the market is going to be tighter than they expected, and probably for longer than they expected.

Structural shift?

Weather-related disruptions may cause a short price spike, but the safety issues for Vale have morphed from being a temporary concern into something that appears almost structural.

An iron ore mining executive, speaking under Chatham House rules at the Mines and Money Asia conference on Tuesday, said the entire nature of Vale as a business looks to be changing.

“It will become effectively an entity controlled by the state that uses the cash generated to fund claims against it,” the executive said.

That may perhaps be an overly harsh assessment, but the deeper point is that Vale’s safety issues and its role in the community are likely to become much more of a focus for the Brazilian miner.

The best hope for additional iron ore supply for China lies in the still high inventories at ports, with 147.6 million tonnes reported as of the end of last week

This means the supply gap in iron ore will have to be met by other producers, but it may be the case that this can’t be ramped up quickly.

South Africa, the world’s third-largest supplier to the seaborne iron ore market, boosted exports in March to 5.2 million tonnes from 4.9 million in February and 5 million in January, but this is a relative spit in the bucket.

India’s exports also almost doubled in March, but only to 1.3 million tonnes, while Iran is still a marginal player in the seaborne market.

The best hope for additional iron ore supply for China lies in the still high inventories at ports, with 147.6 million tonnes reported as of the end of last week.

Running down the inventories may help steel mills source supplies, but it will do little to alleviate price pressures.

Iron ore has swung from being a demand-driven market to a supply-driven one, and until Vale gets fully back on its feet, it may remain as such._Reuters

Total launches full-field production on Angola ’ s Kaombo

0

French oil major Total said it started up production on the Kaombo Sul project located off the coast of Angola, in
a deal that should lift Total’s general production capacities.

Kaombo Sul will add 115,000 barrels of oil per day (bopd) and bring the overall production capacity to 230,000 bopd, equivalent to 15 percent of the country’s production, Total said in a statement on Tuesday.

“Its start-up will contribute to the Group’s cash flow and production growth in 2019 and beyond,” said Arnaud Breuillac, President of Exploration & Production at Total, as he commented on the Kaombo Sul project._African Mining Market

ZASMF LAUNCH postponed again

0

The official launch of the Zimbabwe Artisanal and Small Scale Miners Federation (ZASMF) which was supposed to be held on Thursday, postponed to a later date, this is according to a statement released by the acting ZASMF body.

“There has been a new development on Thursday’s program. Due to circumstances beyond our control we have been asked to move the dates for our launch to a later date. This is due to the nature of the busy schedule of our guest of Honor who would want to be with us on the day of the launch, as they have a busy schedule but have expressed interest in being present on this big day.

We will advise of the new dates in due course. Any inconvenience caused is sincerely regretted” reads the statement.

Gold hits 3-week low as easing growth woes lift equities

0

Gold prices slipped to a more than three-week low on Tuesday as waning global economic slowdown concerns dented the precious metal’s safe-haven appeal and lifted equities to multi-month highs.

Spot gold was down 0.1 percent at $1,286.82 per ounce by 0524 GMT, having touched its lowest since March 7 at $1,284.76 earlier in the session.

U.S. gold futures fell about 0.3 percent to $1,291.

“Concerns we saw emerge in the past few weeks around economic growth has certainly eased and that shift (in sentiment) in the past day or two resulted in little bit of selling in gold market,” ANZ analyst Daniel Hynes said.

“Most of the global growth is coming from China and the (Chinese) data over the weekend eased those concerns.”

Strong manufacturing data from the United States and China triggered a massive sell-off in the U.S. bond market on Monday, which in-turn lifted Asian equities to seven-month highs.

Following upbeat factory activity data from China released on Sunday, a private business survey on Monday showed that the manufacturing sector unexpectedly returned to growth for the first time in four months in March.

This was followed by a better-than-expected U.S. manufacturing report which showed that activity rebounded a bit more than expected in March.

Market participants are now looking ahead to the U.S. non-farm payroll data, due this Friday, for more details on the economy’s performance.

Investors are also keeping a close watch on the Sino-U.S. trade negotiations, set to resume later this week in Washington with a Chinese delegation led by Vice Premier Liu He.

Strong payroll data tends to boost the dollar, while any positive developments from the trade talks would further increase investors’ appetite for riskier assets, both negative for gold.

The dollar index, which tracks the U.S. unit against key rivals, was trading close to a three-week high posted on Monday. A stronger dollar makes gold expensive for holders of other currencies.

Indicating investor sentiment for bullion, holdings in the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, fell 1.5 percent on Monday, its biggest one-day percentage decline in a month.

On the technical front, $1,275 to $1,280 an ounce level remains the key longer-term support for gold, according to an OANDA note.

Among other precious metals, spot palladium was down 0.4 percent at $1,414.11 an ounce, after rising the most since late February in the previous session.

Silver slipped 0.3 percent to $15.06 an ounce, while platinum gained 0.2 percent to $849.47 an ounce._Reuters

error: Content is protected !!