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Mining workers should be given US$790 per month

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Mining workers should be given US$790 per month

Zdamwu general-secretary Justice Chinhema told NewsDay Business that mining workers should be given US$790 per month as salary, and not the ZWL$486 they are currently getting.

THE Zimbabwe Diamond and Allied Minerals Workers’ Union (Zdamwu) says workers in the mining sector should be paid in United States dollars since the sector is one of the top foreign currency earners in the country.

“If you go around Zimbabwe, the mining industry is one of the lowest paying industries despite us producing the foreign currency which government is crying for,” he said.

“This 80% increase is nothing to us. The mining industry must pay equivalent to what the employers are retaining from the Reserve Bank of Zimbabwe after selling the gold to Fidelity (Printers and Refiners).”

Workers in the mining industry were recently awarded an 80% salary increment following collective bargaining agreement between the National Employment Council (NEC) for Mining Industry and unions.

But Chinhema said a number of mining companies had approached NEC asking for exemptions.

“So, we are saying the minimum wage of the mining industry must be commensurate to the mineral that we are mining. It must also reflect, if the employer is retaining 80% in US$, that should also be the salary and the minimum wage must be in line with the poverty datum line, which is US$790 (and) not ZWL$486,” he said.

“We are not in agreement with ZWL$486. The 80% increment that came through NEC is not a proper wage to an employee with a family of five.

“So the mining workers must be earning US$ component equivalent to what the employer retains after selling their minerals. That’s the benchmark we are talking about and it should be US$790, which is the poverty datum line from the central statistics agency.”

Chinhema said working conditions in the sector were poor.

“This is slavery and mining industry employers are enjoying free labour because salaries that they are paying are pathetic,” he said.

“Remember, mines are found in the remote areas of this country. Basic commodities in those areas are pegged at three or five times what they cost in cities like Bulawayo and Harare. That ZWL$486 is not even equivalent to the ZWL$486 being earned by a person living in Harare because they are in remote areas. The prices there (remote areas) are double.”_NewsDay

Murowa brightens diamonds prospects for Chivi

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Murowa brightens diamonds prospects for Chivi

A small camp has been growing by the month, from about 10 employees in March last year and now the number has swelled to an estimated 60 workers.

Sese Growth Point, some 52km South West of Masvingo in Chivi District may never be the same again as Murowa Diamonds, a subsidiary of Rio Tinto intensifies exploration for the world’s most precious stone; the diamond.
Villagers are already preparing for the worst; pressure groups have been formed and human rights organisations invited to Ward 20 in Chivi as conflict between industry and people heightens.

“Heavy equipment has been rolling in and the number of workers employed at the exploration site growing. While people here generally welcomed the development, there are many fears,” said Ward 20 Councillor Alec Nhundu.
On May 23, 2019, the Zimbabwe Environmental Lawyers’ Association (ZELA) the Zimbabwe Coalition on Land and Development (ZimCold) and Zimbabwe Council of Churches (ZCC) converged at Sese on the invitation of Sese Community Trust to hold a District Alternative Mining Indaba pertaining to the new mining venture.

An estimated 400 villagers attended the Indaba and raised many issues concerning the emerging mine.
Their worst fear is that thousands of them are going to be evicted to allow Murowa Diamonds to open the mine. Already two villagers, Emmanuel Chingava and Susan Makusha have had their fields sealed off for periods of up to five months to allow exploration work to be carried out.

Exploration work in the area was started by Rio Tinto in 2000 and no progress was made thereafter. A document seen by The Mirror at the workshop indicates that Murowa Diamonds returned to resuscitate exploration after President Mnangagwa threatened to withdraw mining claims that are lying idle.

Murowa Diamonds has since indicated that it is looking at investing US$25 million into a new mine and Nhundu said that at least six villages namely Zhara, Charumengwe, Tavagadza, Zimuto, Mazvihwa, and Gondovori with more than 550 households are inside the pegged exploration area and these are facing serious prospects of eviction.
Farai Mujeni from ZELA, who chaired the workshop, reiterated the villagers’ appreciation of the new investment. He however, said that there were serious concerns on a number of issues which they wanted addressed.

Villagers are getting anxious on where they will go and their compensation if they are to be displaced. There is a lot of fear of a repeat of Chingwizi where thousands of villagers were removed from the south eastern tip of Chivi District without compensation and dumped in an inhabitable place in Chingwizi where they live in tents without schools, clean water or decent toilets.

The Chingwizi families were evicted after the construction of the vast Tugwi – Mukosi Dam.
None of the officials from Murowa Diamonds attended the District Indaba and this did not go down well with some villagers.

Nyaradzo Mutonhori a lawyer from ZELA condemned the absence of Murowa Diamonds at the important mining indaba. She said that by shunning the meeting after receiving an invitation, the company was actually in breach of Social License Operate; where there is need for openness and transparency between investor and community.

“These companies breach what is termed Social License Operate in the Constitution which is a call for openness and transparency between the investor and the community,” said Mutonhori.

Mutonhori also said that it will be amiss in view of the policy of devolution to resettle the villagers outside Chivi because then it will not be possible for them to enjoy their native resources.

“You can’t enjoy your native resources after being relocated from Chivi to a faraway place like Marondera, devolution becomes irrelevant,” she said.

So far exploration has disrupted a lot of activities in the area. Conducting lessons at Danhamombe High School has become difficult as exploration and drilling is taking place inside the school yard. The meeting heard that the pass rate at the school has gone down due to the poor learning environment.

Girls from the school are falling in love with the miners and the meeting was told that at one time two upper sixth girls fought over a man employed by the mine.

Villagers also complained that the mine was depleting water sources for their domestic animals and called on Murowa which has so far drilled six boreholes to sink more. They also wanted respect for their relatives’ graves, sacred places and the cultures of the area.

They called on the mine to maintain the roads which are being damaged by heavy vehicles.

The Indaba also discussed the mining sector and mining sector reforms in Zimbabwe, analysed the impact of the project on the area and attempted to establish if the Environmental Impact Assessment was done.

At the end of the Indaba, a declaration of issues was raised and this will be brought to the Provincial Alternative Indaba that will be held in Kadoma in July and the issues from Kadoma will be taken to the National Alternative Mining Indaba to be held in Bulawayo between September and November this year and then all issues will be taken to Government.

ZIMCOLD’s  Tendai Bhobho, ZCC’s Methodist Pastor, Admire Mutizwa said they would like to see all processes prevailing in harmony.

Chief Chipindu said Murowa Diamonds was still doing its exploration work and allayed fears in some quarters that the company was already mining and selling diamonds._Masvingo Mirror

AMWUZ raises concern over Chinese’s growing labour violation

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AMWUZ raises concern over Chinese’s growing labour violation

 

The Associated Mine Workers Union of Zimbabwe (AMWUZ) has raised concern over the growing labour violations, which include beating up of employees and long working hours without compensation being perpetrated by Chinese investors.

Speaking during the 47th anniversary of Kamandama Mine disaster which claimed 427 lives on June 6, 1972, AMWUZ president Edward Ruzive bemoaned the plight of workers at the hands of Chinese investors and urged the government to act against such violations.

“Associated Mine Workers’ Union of Zimbabwe fully embraces the vision 2030 that of a middle-income society come 2030. However, the calibre of investors we have, particularly the Chinese investors, who when you engage to discuss issues they pretend they do not understand English, they do not give workers payslips. They make workers work long hours without [compensation] and, at times, they beat up workers,” he said.

He called on government to also act in ensuring workers accessed personal protective equipment (PPE) while urging authorities to enforce labour laws.

“They don’t provide the necessary PPE for workers. We are also appealing to government to exhort all investors to follow the rules and regulations of this country in whatever sector they invest in,” Ruzive said.

He called for the review of mine workers’ salaries in line with the poverty datum line (PDL) and said employers should pay in United States dollars.

“The issue of a living wage for the mining industry is now a buzzword. All workers are clamouring for a salary that must be paid in US dollars. The PDL currently stands at US$700 for a family of five. The rise in fuel, which has always been a cost driver, saw the prices of goods and services going northwards,” the mine workers boss said.

He saluted the 427 miners who died following a methane gas explosion that ripped through Kamandama Mineshaft.

The union also donated $1 000 towards the Kamandama Memorial Fund, a fund that was put in place to assist in looking after the deceased miners’ surviving widows and their dependents.

A fundraising golf tournament held on the eve of the commemorations raised $30 000._NewsDay

Prospects targets additional funds for Arcadia project

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Prospects targets additional funds for Arcadia project

PROSPECT Resources (Prospect) says it expects that additional funds will need to be raised prior to completion of any project finance discussions for the Arcadia lithium project in Zimbabwe.

According to a market report issued by the company, as of 31 March 2019, Prospect’s cash balance was at A$2.97 million. Reports have it that Prospect needed $165 million to begin the construction of its Arcadia Lithium project mine plant.
Prospect according to the report is considering to sale 115 million unlisted options exercisable at 1.5 cents to expire on June 15, the mining firm believes that it will get up to A$1 725 000 from the exercise to boost its funds.

“Prospect has 115 million unlisted options exercisable at 1.5 cents which are due to expire on 15 June 2019 (‘Options’). Total funds that may be raised from the exercise of the Options is up to A$1,725,000 (if all Options were to be exercised). The options are held by certain directors, employees and former employees of Prospect. The Company believes that there is a reasonable prospect that some or all of the Options will be exercised” reads the report.

Under the terms of the Options, Prospect is required to apply for quotation of any shares issued pursuant to the exercise of the Options, this, in turn, requires that the shares be freely tradeable. Prospect intends to lodge a ‘cleansing statement’ (as contemplated by section 708A(5) of the Corporations Act 2001 (Cth)) in the event of the issue of shares on exercise of the Options. In any such cleansing, statement Prospect will be required to confirm that there is no excluded information of the type referred to in Sections 708A(7) and 708A(8) of the Corporations Act.

Prospect also intends to engage in discussions in respect of a potential placement of shares. Any shares issued under the placement would be issued without disclosure to investors under Part 6D.2 of the Corporations Act.

The report also outlined that Prospects is engaged in numerous discussion in order to source funds to undertake the posed biggest lithium project in the world, Prospect also reported that engagements are heading towards their completion.

“Prospect is in ongoing discussions with a number of entities, including African development banks and institutions, and a European family office consortium regarding the possible project financing of Arcadia. These discussions are at various stages of maturity and contemplate a variety of structures from traditional debt and equity financing through to 100% debt financing” reads the report.

According to the report, The Company has received a draft commitment letter from a potential debt arranger/financier to provide project finance funding for Arcadia. However, at this stage, the Company believes the proposal is incomplete and requires further development and clarification before the Company can continue to progress discussions on that draft document. The Company continues to actively negotiate with this debt arranger/ financier and others.

ZMF paves way for easy fuel access to small scale miners

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ZMF paves way for easy fuel access to small scale miners

LAST Friday Zimbabwe miners federation joined hands with Metbank together with Glow petroleum at The Harare International Conference Center in a deal to provide small scale and artisanal miners with cheap and easy access of fuel.

By Mirirai Ngoya

Fuel pricing for small scale and artisanal miners have been reduced due to the partnership with Metbank and Glow petroleum. President of ZMF Ms Henrietta Rushwaya said “fuel from all glow petroleum station to miners will be saved at 1 USD per litre”
“We did this as ZMF board members to make mining easy for our indigenous miners” she added.

Small scale and artisanal miners despite the fuel challenges they have been facing, they contribute a lot of foreign currency for the nation that is the reason why we engaged into this deal to make mining easy since it contributes a lot to the nation.

“Despite fuel challenges Miners have been facing, they have generated 60% of the total gold production from October 2018 up to today’s date, “said ZMF president Ms Henrietta Rushwaya.
As such, “ZMF board members we engaged into a five-year deal partnership with Glow petroleum to make work easy for our miners” said Rushwaya.

Glow petroleum is an indigenous fuel company which has taken a step further in mining matters by making fuel distributions easy for the miner.

Mr Chinhara indicates that “glow petroleum is an indigenous fuel supplier and we have built fuel supply stations in 8 regions were our mining activities are taking place in Zimbabwe.”
Small scale and artisanal, miners are the most to producers of foreign currency as such, Glow petroleum will reserve fuel for you so that you get your fuel on time to make work easy “added Aaron Chinhara.

This fuel pricing and easy access will only be for small scale and artisanal miners who are registered and have a Metbank card.
Sarah Tembedza director from the consumer bank said “as Metbank our commitment is to make work easy for our miners, by helping them to open a nostro account which they will produce to avoid queuing at glow petroleum stations”
“you also need to be a registered member with the ZMF for you to enjoy this beautiful promotion”

Diamond Firm Sues gvt, instructs Sherrif to seize diamonds

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Diamond Firm Sues gvt, instructs Sherrif to seize diamonds

Pure Diam DMCC, whose mining licence was terminated by the government in 2016, paving way for the formation of the Zimbabwe Consolidated Diamond Company (ZCDC), has instructed the High Court Sheriff to seize diamonds owned by the state-run entity in a bid to recover over US$14 million, the Zimbabwe Independent has learnt.

This follows an October 11 2018 High Court ruling in favour of Pure Diam instructing the ZCDC to pay the Asian diamond miner “US$14 055 312,00 inclusive of interest accrued till 30 April 2018.”

The state-run mining firm is also liable to pay an additional US$561 371 to Pure Diam “being further interest at the rate of 5% per annum from 1 May 2018 to date of payment in full”.

Held under case number HC4899/18 and heard by Justice Munangati Manongwa, the Zimbabwe Mining Development Corporation (ZMDC), which entered into a mining joint venture with Pure Diam in 2010, was cited as the first defendant while the ZCDC is the second defendant.

Prior to the cancellation of its licence, Pure Diam was operating under Diamond Mining Corporation (DMC) in partnership with ZMDC.

In 2010, Pure Diam extended a loan of US$8 million to DMC, while its shareholding value stood at US$10,9 million in the joint venture.

However, in 2016, the government revoked Pure Diam’s licence along with those of other players operating in Chiadzwa before the mining firm had recouped its investment capital in Zimbabwe, resulting in the dispute.

According to the letter addressed to the High Court sheriff dated 27 May 2019 seen by the Independent, lawyers representing Pure Diam are pushing to attach diamonds owned by the ZCDC kept at the Minerals Marketing Corporation of Zimbabwe (MMCZ) premises in a bid to recover over US$14 million from the state-run miner.

Pure Diam approached the Sheriff after the ZCDC failed to comply with the High Court ruling. Before the latest instruction to the High Court sheriff, Pure Diam had also sought to attach two properties owned by the ZCDC.

“You would recall that we previously instructed you to attach the two judgment debtors’ movable assets at their offices, being 80 Mutare Road Msasa, Harare and 35-37 Cosham Road Borrowdale, Harare, respectively,” part of the letter of instruction to the High Court Sheriff reads.

“We advise that both the judgment debtors in the above matter have failed to liquidate the judgment debt in full and in the circumstances we have been instructed to attach further assets belonging to the Zimbabwe Consolidated Diamond Company.

“We therefore instruct that you further attend to the MMCZ building at Number 80 Msasa Road Mutare and attach the judgment’s debtors assets being diamonds which are kept in the vault room.”

Lawyers representing Pure Diam, Gill Godlonton and Gerrans, also instructed the Sheriff to advise the ZCDC against auctioning or moving the “diamonds from the vault until the judgment debt has been fully satisfied”.

The High Court sheriff was also ordered to record the carats of all the attached diamonds and package numbers.

The sheriff has, however, not yet attached the diamonds. Source: Zimbabwe Independent

Chamber of Mines elects first female President

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Chamber of Mines elects first female President

Mimosa head of corporate affairs Elizabeth Nerwande has been appointed the president of the Zimbabwe Chamber of Mines, making her the first woman to hold that office in a field dominated by men.

She was elected to lead the mining body at the chamber’s annual conference which was held in Victoria Falls recently.

Nerwande has previously served as the chamber’s vice-president. She was the executive director of the Consumer Council of Zimbabwe (CCZ) from 1999 to 2003, chief executive of Zimbabwe’s trade promotion body, Zimtrade, from 2004 to 2006.

Her appointment marks a significant turn in the country’s history where women are still relegated to menial roles.
A 2018 survey by our sister paper, Zimbabwe Independent, which analysed listed companies, revealed that the apex of corporate Zimbabwe was still a male-dominated arena, a worrying trend, considering that women constitute 52% of the country’s population.

Out of the 500 board members that oversee the 61 companies listed on the Zimbabwe Stock Exchange, only 80 are women. Of that number, 13 women occupy executive roles.

The numbers clearly illustrate how men still control the apex of corporate Zimbabwe, with just 80 women (16%) occupying seats on boards of listed companies.

Only 13 women (10,8 %) have an executive role. Shockingly, some of the companies do not have a single woman on their boards, a grave concern given the fact that women constitute 52% of the country’s population.

Source: Newsday

Hwange Power Station under threat

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Hwange Power Station under threat

THE skewed pricing structure and the acute foreign currency shortages in the market have crippled the operations of coal miners, lowered production and could lead to a shut down of operations, businessdigest has learnt.

The developments could also severely reduce the power output at Hwange Power Station.

This comes at a time the mining sector has been hard hit by a number of challenges which include foreign currency shortages, power outages and inadequate capital.

Makomo Resources director and Coal Producers Association chairperson Raymond Mutokonyi warned that if the issue is not addressed, it could result in Hwange Power Station failing to generate electricity.

“The coal mining sector is definitely under threat due to the capacity constraints. It is only a matter of time. We risk having Hwange shutting down because of the inadequate stock they have,” Mutokonyi said.

As of Tuesday this week, he said, Hwange Power Station had only 94 000 tonnes out of a required minimum stock of 200 000 tonnes in stocks, representing only 20 days cover. He said if Hwange put its Unit 5 into operation, then that cover could be reduced to less than 10 days.

“Unless some of these issues are looked at properly, there is a real possibility of a blackout,” Mutokonyi warned.

He said there has been a decline in the production of coal due to various challenges such as the ineffective pricing model at which producers sell their coal to the Zimbabwe Power Company, a subsidiary of Zesa Holdings.

“Over time, we have seen the decline in production capacity at the coal mines because of obviously the challenges in the economy, but primarily because of the payment structure of coal,” Mutokonyi said. “The running price of coal at the moment was last set in 2011 and has not been reviewed since then. The position of the Zimbabwe Power Company is that they cannot review the price without an increase in the power tariff which unfortunately has not been awarded.”

He said they are currently being paid the equivalent of US$16 per tonne which falls far short of the price of between US$33 to US$35 per tonne it needs to remain viable.

Mutokonyi said the three coal mining companies namely Hwange Colliery, Zambezi Gas and Makomo Resources are hard hit by the fuel shortages in the country. He said the three mining companies need about 1,5 million litres of diesel a month for its operations mainly for its earth moving machinery.

He said the situation is aggravated by the shortage of foreign currency which is needed to buy spares and explosives as well as AN fertilizer. He pointed out that while the fertilizer is available, it can only be made available from bonded warehouses and can only be accessed by paying for the commodity in foreign currency. As a result, the association has requested that ZPC pays partly in foreign currency for the coal it produces to capacitate them and acquire equipment.

Mutokonyi bemoaned the foreign currency retention threshold set by the Reserve Bank of Zimbabwe which currently stands at 50%. He said they need a foreign currency threshold of at least 80%.

He said his company has now resorted to the pre-payment system in order to remain viable given the volatile nature of the economy. Source: Zimbabwe Independent

Chrome smuggling rejudicing the state of millions

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Chrome smuggling rejudicing the state of millions

A complex syndicate involving some Chinese nationals and senior government officials is at the centre of  chrome smuggling in Zimbabwe through under declaration of volumes, which have prejudiced the state of millions of dollars in taxes and mining fees.

Chrome is one of the country’s main mineral exports after gold, Platinum Group Metals and diamonds.

Information gathered by this paper shows that some large scale chrome miners are working with officials from the Zimbabwe Revenue Authority (Zimra) and Minerals Marketing Corporation of Zimbabwe (MMCZ) in facilitating under-declared ore beyond the country’s borders before shipment to target markets such as China and India.

The chrome that is being declared at various weigh bridges owned by MMCZ across the country does not tally with the volumes of chrome exported through the borders and the state-owned minerals marketer recently received reports of a possible rampant smuggling of chrome through under-declaration.

“The country has been losing millions through this cartel of chrome smugglers who are working with Zimra and MMCZ officials. This has been going on for some time but no concrete action has been taken to monitor how much chrome goes through weigh bridges and how much is then declared to the Reserve Bank of Zimbabwe through CD1 forms,” the source said.

“MMCZ just recently received reports of chrome that was being smuggled through the border especially the Forbes Border Post. This cartel has mainly been driven by Chinese that are into small scale chrome mining.”

The involvement of the Chinese in smuggling is a stab in the back for Zimbabwe which has rolled out a red carpet for the Asian giant under the guise of it being an all-weather friend.

The continued smuggling of chrome has pushed MMCZ to set up more weigh bridges across the country to curb this scourge which also involves senior bureaucrats.

Mines and Mining Development Minister Winston Chitando said he had not yet received a report on smuggling but urged those with information to come forward.

Chitando’s comment comes despite recent reports that a Mutare-based official was in February arrested on allegations of attempting to facilitate the smuggling of a truckload of chrome ore to Mozambique. The chrome intercepted had a value of roughly US$25 000.

“My office has not yet received a report on chrome smuggling but I urge those with information to come forward,” Chitando said. MMCZ could not comment on the matter.

“Even more pressing is the predatory domestic chrome buying which is taking place across our great Dyke.  Foreign based companies have opened local companies here in Zimbabwe to buy chrome locally and have abused our system by operating as a cartel to force prices as low as $15 USD per tonne.  For reference the export price of chrome ore is $80USD per tonne,” said Zimbabwe Chrome Miners Association executive member Masango Mahlahla.
He said the chrome buying cartels are effectively taking all of the profits from mining chrome out of Zimbabwe and leaving small scale chrome miners heavily under capitalized.
“The predatory low chrome buying prices result in low taxes due to government as taxes are calculated based on the buying price.
“This comes at a bad time for our mining industry as well as our government, as our nation needs to generate more revenues in foreign currency.  At the moment these foreign based companies operating as cartels are selling their foreign currency on the parallel market and purchasing chrome in Rtgs at predatory prices,” said Mahlahla.

On the side of Zimra, its officials are accused of being complicit in carrying out export duties while issuing fraudulent bills of entry.

A World Bank report, The Changing Wealth of Nations 2018, documents Africa’s impoverishment by the rampant extraction of minerals, oil and gas.

In the report, the bank concludes that sub-Saharan Africa loses about US$100bn worth of adjusted net savings annually through massive looting of minerals.

It said “the only region with periods of negative levels — averaging negative three percent of gross national income over the past decade — suggesting that its development policies are not yet sufficiently promoting sustainable economic growth and clearly, natural resource depletion remains one of the key drivers of negative adjusted net
savings in the region”.

SOURCE: Business Times

Zvishavane fugitive gold panner up for murder

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Zvishavane fugitive gold panner up for murder

Prosper Zindiro, whose age was not given in State papers, appeared before Shurugwi magistrate Sithabile Zungula facing one count of murder after he allegedly killed Terrence Mhere and went on the run.

A GOLD panner from Zvishavane, who has been on the run after allegedly killing a man in Shurugwi in January, appeared in court on Friday facing murder allegations.

He was not asked to plead and was remanded in custody.

The court heard that on a date unknown, but sometime in January this year, Zindiro and his three accomplices, Breadwinner Mudzingwa, Lloyd Jinja and Darlington Mangoma, who are all still at large, went to Chimona Mine in Shurugwi armed with machetes, okapi knives and a whip made of barbed wire.

The four met Mhere and demanded gold from him and when deceased told them he did not have the mineral, a misunderstanding arose.

The gang, the court heard, assaulted Mhere with machetes before stabbing him several times all over the body and left him lying lifeless.

Zindiro was arrested last week.

Bertha Bore prosecuted.

NewsDay

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