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Zimbabwe deadliest mine disaster turns 48

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Zimbabwe deadliest mine disaster turns 48

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

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

Kamandama

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

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

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

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

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

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

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

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

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

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

Fidelity agent Bank disowns illegal forex dealers

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Fidelity agent Bank disowns illegal forex dealers

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

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

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

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

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

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

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

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

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

Zim Morning Post

ZCDC repossessing vehicles from former bosses

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ZCDC repossessing vehicles from former bosses

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

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

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

Mpofu was subsequently cleared of the charges.

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

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

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

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

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

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

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

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

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

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

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

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

Business Times

Another accident at Vumbachikwe mine

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Another accident at Vumbachikwe mine

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

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

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

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

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

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

About Vumbachikwe Mine

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

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

 

 

Diamond discovery in Hurungwe a Hoax

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Diamond discovery in Hurungwe a Hoax

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

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

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

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

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

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

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

MashCentral Mines director in court for abuse of office

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MashCentral Mines director in court for abuse of office

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

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

He is expected back in court in a fortnight.

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

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

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

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

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

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

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

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

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

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

Gold Baron claims gun accidentally discharged

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Gold Baron claims gun accidentally discharged

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

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

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

He allegedly used a Voere 458 calibre rifle.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The Chronicle

Fidelity cash crisis continues, gold taskforce deployed

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Fidelity cash crisis continues, gold taskforce deployed

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

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

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

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

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

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

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

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

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

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

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

Forex increase to drive gold mines viability

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Forex increase to drive gold mines viability

Zimbabwe’s mines have hailed the decision by Fidelity Printers and Refiners (FPR) to increase the foreign currency retention threshold for gold miners as a step in the right direction and a development that will significantly enhance the viability of mines.

Chamber of Mines of Zimbabwe (CoMZ) chief executive Isaac Kwesu said in an interview that mining companies had been struggling with viability issues because of the mismatch between the exchange rate for the portion paid in local currency and actual costs.

Mr Kwesu’s comments come after FPR, a unit of the Reserve Bank of Zimbabwe and the sole authorised official buyer of gold, raised the foreign currency retention threshold for gold producers from 55 to 100 for small miners/buying agents and 70 for large scale producers.

Small-scale producers/buying agents and artisanal miners, who account for 60 percent of the country’s annual production would be paid in cash at a flat price of US$45 per gramme of gold, which authorities will discourage smuggling of the yellow metal.

“Small-scale gold buying agents will have to enter an agency agreement with FPR, which contract shall clearly spell out the terms and conditions under which the agents shall operate,” FRP general manager Fradreck Kunaka, said in a statement on the new framework.

Primary producers will, therefore, have the 70 percent of sales proceeds deposited into their Nostro account at the ruling exchange rate, currently fixed at $25 to US$1, while the balance will be paid in the reintroduced local currency, the Zimbabwe dollars.

Mr. Kwesu said the upward review of the retention thresholds was a step in the right direction, specifically the principle of adjusting the (forex) retention ratio for big producers to a 70-30 ratio. He, however, noted that there obviously were quite a number of other factors that had been negatively affecting operations.

“This was one of the biggest operations in the room and to a large extent it addresses the biggest challenge, which was affecting viability due to mismatch between the interbank and the actual cost of production.

“The actual ratio of actual cost had been more than double the interbank and so they had been struggling to fund the local input cost given that there were liquidating at $25 to US$1 when the actual cost twice or three times that 25 to 1 exchange rate,” he said.

The CoMZ chief executive said reviews on specific economic or industry policies must be done each time there is a change of circumstances to protect and support production, especially in critical sectors.

Zimbabwe’s gold output dipped to 1 464,3 kilogrammes in April compared to 2 126,35 kg a year earlier. During the period under review, small-scale gold miners produced 728,9 kilogrammes, while large-scale miners produced 735,4kg.

Zimbabwe targets 35 tonnes of production this year against 27 tonnes last year when earnings dropped to just about US$946 million.

Gold is Zimbabwe’s single largest foreign currency earner (US$1,3 billion in 2019), accounting for nearly 30 percent of total annual foreign currency earnings and together with platinum generate over 60 percent of annual mineral export earnings.

Zimbabwe has produced significant amounts of gold and production peaked in 1906 at about 30 tonnes and in 1999 at 27 tonnes. The industry has operated in leaps and bounds over the last 100 years.

Between 2000 and 2008, a sustained and broad-based decline in economic activities led to a cumulative decline of over 50 percent in gross domestic product, resulting in only 3,5 tonnes of gold being produced.

Under the Government’s vision to build a US$12 billion mining industry by 2023, the yellow metal is expected to generate the most revenue than all other minerals. It is expected to account for at least US$4 billion in annual exports.

The Government is pinning hopes on mining and farming to provide a quick-start to economic turnaround after years of decline, with the sectors also anticipated to play key roles towards Zimbabwe’s vision of an upper-middle-income country by 2030.

“The Zimbabwe Miners’ Federation (ZMF) would like to appreciate the recent review by FPR in the gold trading framework as announced through its press statement of May 26, 2020,” said ZMF president Ms Henrietta Rushwaya.

“The review provides for a flat price of US$45/ gramme delivered by small-scale producers and a 70/30 framework for large scale gold producers.

“ZMF is of the view that this review was invariably long overdue and is a relief from the 55/45 framework that prevailed prior to the new framework,” said Ms Rushwaya.

RBZ limits ZIPIT transactions to ZWL $20 000/day

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RBZ limits ZIPIT transactions to ZWL $20 000/day

THE Reserve Bank of Zimbabwe (RBZ)’s Financial Intelligence Unit (FIU) has directed all banks to review downwards Zipit transaction limits to ZWL$20 000 a day from ZWL$100 000 following abuse of the facility by illicit foreign currency dealers.

In a statement yesterday the Apex bank unit said it has directed Zimswitch, which operates the Zipit platform to immediately implement the new position.

“The FIU has noted that the existing Zipit transaction limits, which have no monthly cap are being misused, primarily for illicit foreign currency transactions.

“The current Zipit limits of ZWL$100 000 per day allow a customer (subject to any bank-specific limits) to move about ZWL$3 million per month, using a single account and much more if he or she is multi-banked and/or uses third party accounts,” said the FIU.

It said the above limits have been reached on account that “very few” individuals in the country earn over ZWL$100 000 a day.

“The limits have been arrived at cognisant of the reality that very few Zimbabweans earn more than ZWL$100 000 per day and those who do have other payment options available for higher value transactions,” said the FIU.

It said until such time when adequate safeguards are built into the Zipit system to minimise the money laundering risk, Zimswitch will continue to adhere to the prescribed daily and monthly limits of ZWL$20 000 and ZWL$100 000 respectively.

The FIU said it has noted Know Your Customer (KYC) shortcomings in the Zipit platform making it difficult for banks, regulators and law enforcement agencies to speedily identify counterparties to a transaction, or to identify multi-banked users. Recently the RBZ blocked mobile money agent accounts that were also being used to fuel speculative forex exchange rates, which have been blamed for driving inflation. Some errant Bureaux De Change operators have also paid a heavy penalty after the monetary authority cancelled their licences.

Chronicle

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