Home Blog Page 622

Applications for gemstone dealing rejected

TEPE
-
0
Applications for gemstone dealing rejected

Most (if not all) Applications for the buying and selling gemstones on behalf of the MMCZ were unsuccessful mainly due to potential dealers not being able to meet the financial requirements. This was confirmed by those who were called to a meeting by the institution.

Interested individuals warmed up to the idea and saw it as the opening up the gemstone buying and selling market. MMCZ had invited interested citizens to be agents who will buy and sell gemstones on behalf of the Corporation. The move which aims at bringing in transparency and curbing corruption in the gemstone market had attracted the attention of Miners and Zimbabwean citizens from all walks of life.

Although the exact financial requirements have not been made public indicators are small-scale miners who are the primary gemstone producers are highly unlikely to qualify as they had taken the most interest in gemstone dealing.

Many African countries openly deal in Gemstones without stringent requirements creating opportunities for the citizenry. Below is an example of children selling their stones at an open market in Mozambique. 

 

The following was the Invitation by MMCZ to local gemstone marketers.

Interested Zimbabwean citizens (individuals and Corporates) are invited to submit an expression of interest to be considered and licensed as MMCZ sub-agents to purchase colored gemstones around the country and selling same through the Corporation as per MMCZ act chapter 21:04 MMCZ Gemstones sub agents are appointed in terms of SI 256 of 2019. The function of an MMCZ gemstone sub-agents is to buy colored gemstones from small scale miners within Special Grants as defined in the SI 256 of 2019 and sell the colored gemstones through Minerals Marketing Corporation of Zimbabwe.

Terms of reference of the MMCZ Gemstones Sub-agents:

1. The MMCZ Gemstone Sub-agent shall keep in the prescribed form a register in which he/she shall enter, in respect of the colored gemstones dealing, such details relating to-

(a) the amount thereof purchased during the month

(b) the amount thereof held by him/her at the end of the preceding month

(c) the date of transaction

(d) the name and address of the other party to the transportation

(e) the nature and mass of the colored gemstones involved

(f) the price, if any paid or received

2. The MMCZ Gemstone Subagent shall later than the tenth day of each month submit monthly returns to MMCZ in the prescribed format in respect of gemstones purchased in the prior month.

3. If the MMCZ Gemstone Subagent is in possession of colored gemstones in excess of what is recorded in his/her register in terms of SI 256 of 2019 he/she shall be deemed to be in unlawful possession of such excess unless he proves to the contrary

4. An MMCZ Gemstone Subagent shall be obliged to sell whatever he/she would have acquired as per Minerals Marketing Corporation of Zimbabwe (MMCZ) act Chapter 21.04

5. Any person who contravenes subsection (1) shall have their licenses canceled.

To be considered for selection, prospective citizens must meet the following criteria:-

1. Must be Zimbabwean Citizen (individual or Corporate)

2. Have sufficient knowledge of gemstones e.g identifying, grading and pricing.

3. Ability to self-fund operations (proof of funds)

4. No criminal record- police clearance

5. An adequate understanding of the Mines and Minerals Act and MMCZ Act

6. Proof of resident/ secure offices.

Afrochine pays Oliken for Chrome mined by a middle aged couple, couple seeks justice

TEPE
-
0
Afrochine pays Oliken for Chrome mined by a middle aged couple, couple seeks justice

A middle-aged couple allocated chrome claims by an Afrochine agent lost over 20 tonnes of Chrome to Oliken (Pvt) ltd a Kwekwe based company which claims the couple was stealing the chrome from their site.

The Couple, Mr. and Mrs. Kanengoni first approached Afrochine to seek tributaries. Afrochine then directed the couple to an agent who was in charge of allocating claims on their behalf for tributary mining. The couple was allocated claims they should work on then proceeded to start mining. After mining over they contacted Afrochine who in turn sent inspectors and a truck to collect chrome. The couple got paid and continued working as usual.

“We approached Afrochine and were directed to an agent who gave us claims to work on. We produced chrome, Afrochine inspectors came graded our product and were paid per grade as usual”

This continued as usual with the couple smiling to the bank.

A dispute arose when the couple had spent three months mining and pilling chrome then raised over 20 tonnes of chrome followed the usual procedure. The Afrochine representative by the name of Mlaudzi inspected the chrome and a truck came and collected. To their surprise the next day a man called and claimed the Kanengonis’ had been stealing chrome from Olikem claims. Afrochine then proceeded to pay the Olikem instead of the couple without any consultations or any form of explanation. The Kanengonis only got to find out about this when they made payment follow up.

“To our surprise, a man called claiming we were stealing chrome from his company’s claims. We were shocked when we made a payment follow up that the man’s company (Olikem) had been paid. We protested to Afrochine why this was as we had never been summoned and the complainant to clarify the whole issue” said Mrs. Kanengoni “It was unbelievable as we did not just start mining from nowhere but an Afrochine agent had given us the claims on behalf of Afrochine. How is it that we mine for three straight months no one approaches us but when we submit chrome we are informed we had been stealing?”

This reporter then contacted Mr. Mugwaku the Oliken manager who said it was he who discovered the theft.

“My brother I intercepted a truck loading chrome and demanded Afrochine pays for the chrome that was being stolen from us” He said. When asked if Olikem had approached the “illegal miners” or taken any measures of stopping “the theft” or involve the Police like ZIMASCO had previously done he said,” No we have not since this is the first time this had happened”

The couple disputes that the Oliken manager had ever approached them or let alone been on site.

“Afrochine despite having given us the claims decided to pay someone else and imagine how difficult this was on us after putting in the time and labor then someone else got the payment. We have never seen this Mugwaku guy at the site. Our daughter’s dowry had just been paid and we used that money as capital”, The distraught Mrs. Kanengoni said. “If we can at least get the money we used for operations and labor it is better rather than lose everything to something that’s not of our own making”.

Afrochine then insisted we meet with the Oliken people and advised we go to their offices to get the matter sorted. Mr. Kanengoni went to the said place and could not find anyone and some people they said they should approach were non-existent.

“My husband went to the said place but could not get anyone. People who were in the area told me the office was hardly operational. We tried calling but only got excuse after excuse. When I called the manager he said he doesn’t know about us why should he entertain us. He insists we get our money where we delivered our chrome and stop bothering him. The Oliken manager is always rude but when Afrochine calls him in our presence he sounds sincere and acts as if he wants to resolve the issue when he does not. We never just walked on to the claims but were allocated by an Afrochine representative on their behalf, this is so unfair”.

The couple approached the Police who in turn accused the couple of stealing, threatened them with arrest to which the couple explained how they been allocated the place. The Police then advised them to find a solution with Oliken and Afrochine.

Oliken is currently not mining anywhere in the area as the manager admitted and the couple is suspicious this might be a syndicate between Afrochine employees and some unscrupulous characters using people to work and producing minerals then someone claims the product is from their mine then gets paid for it.

The Oliken manager said the couple should approach them so that they can reach an amicable solution.

The middle-aged couple resorted to approaching Norton miners Association who tried in vain to get the issue sorted as their messages were ignored. Messages sent to Afrochine Manager Mr. Ben by this publication and Norton Miners Association went unanswered.

This article first appeared in the March 2020 Issue of the Mining Zimbabwe Magazine

STATEMENT: Creation of currency stabilisation task force

TEPE
-
0
STATEMENT: Creation of currency stabilisation task force

Minister of Finance today addressed the country today against a background of recent exchange rate volatility, which has translated into unsustainable levels of inflation. In this regard, he said, the Government is taking measures to stabilise the exchange rate and top bring down inflation to sustainable levels in order to achieve macro-economic stability.

By the time of writting this post the Parrarel market rate was at 1us$ to 40zwl

See the full statement below

PRESS STATEMENT FX.pdf

 

Legal wrangle stalls Kamativi project

TEPE
-
0
Legal wrangle stalls Kamativi project

THE US$1,4 billion lithium mining project in Matabeleland North faces a fresh hurdle after Beijing Pinchang approached the Supreme Court challenging a recent High Court ruling granting the Zimbabwe Lithium Company mining rights of the tailings dump in Kamativi.

The Zimbabwe Lithium Company was involved in a legal battle two years ago over mining rights at the tailings dump at Kamativi with Beijing Pinchang, a Chinese firm, which in recent years expressed interest in reviving operations at the defunct tin mine. The dispute delayed activity towards re-opening of the mine.

The matter was heard at the High Court in Harare under case number HC8070/18 and in January this year, the High Court ruled in favour of Zimbabwe Lithium Company over mining rights at the tailings dump, paving way for the firm to begin processes to re-open the mine.

Zimbabwe Lithium Company, through its wholly-owned subsidiary, Jimbata, had targeted to resume production at the mine last year but the deadline was missed because of the legal battle.

In an interview yesterday, Jimbata managing director, Mr John McTaggart, said the agreement between his organisation and Government gives them the sole rights to the tailings dump.

“We have another issue with the Chinese (Beijing Pinchang). They are now trying to take the dump back from us again. They have now appealed to the Supreme Court. All this happening is delaying investment and employment.

“We have got 250 people that we need to employ and it’s also against the ‘Open for Business’ mantra by the President (Mnangagwa). So, it’s a real problem,” he said.

Beijing Pinchang has approached the Supreme Court under case number SC75/20, challenging the High Court ruling granted in favour of Zimbabwe Lithium Company.

Following the High Court ruling, the lithium miner intended to install a US$10 million main plant between June and July this year prior to the establishment of a pilot plant, which was being imported from South Africa as the company sought to resuscitate operations at Kamativi.

About 250 people were expected to be employed under the first phase of the project. Before starting operations, the company had pledged to rehabilitate the road network to the mine as well as upgrade power infrastructure.

In March 2018, Jimbata undertook an evaluation exercise that entailed drilling holes to depths of 1 500 metres as well as sampling to determine the lithium resource in the tailings dumps at the disused mine. 

The results were then used for production of the NI 43-101 Compliant Resource Estimate for the Kamativi Tailings Project. In line with the Government’s call for beneficiation of mineral resources, Jimbata was also looking at beneficiating spodumene to lithium carbonate.

Kamativi Mine, which was wholly owned by the Zimbabwe Mining Development Corporation (ZMDC), was closed in 1994 due to the depressed international prices of tin.

Source: Chronicle

ZMDC has since partnered Jimbata to revive operations at the mine and focus is on producing lithium. Government has said up to seven minerals can be extracted at Kamativi after geologists confirmed a rich mix of deposits.

Lithium production is fast emerging as a potential game changer for Zimbabwe’s mining industry and economy at large as foreign investors have shown commitment towards the exploitation of the mineral.

Zimbabwe is endowed with vast lithium deposits but production is still lagging behind other global producers of the mineral, with only one company Bikita Minerals, presently producing while a similar mining project, Arcadia Lithium project is being developed by Prospect Resources in Goromonzi.

Source: Chronicle

RBZ asks mines to ramp up production

TEPE
-
0
RBZ asks mines to ramp up production

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

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

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

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

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

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

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

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

 

Source: Newsday

Mining firms fingered in tax evasion

TEPE
-
0
Mining firms fingered in tax evasion

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

Source: Chronicle

Diamond miners want salaries in US$

TEPE
-
0
Diamond miners want salaries in US$

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

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

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

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

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

newsday

Miner tortured, killed for stealing gold by boss

TEPE
-
0
Miner tortured, killed for stealing gold by boss

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Source: online

Thermal Imaging Solutions

TEPE
-
0
Thermal Imaging Solutions

Hwange Colliery back to owners

TEPE
-
0
Hwange Colliery back to owners

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Ziyambi was also not answering calls.

Source: The Independent

1...621622623...739Page 622 of 739