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New era beckons for artisanal miners

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All eyes will be focused on the Zimbabwe Miners’ Federation (ZMF) annual general meeting and inaugural conference and exhibition, from September 10-11 in Gweru, to see how mining stakeholders intend to align artisanal and small-scale miners (ASM) in the mainstream economy.

As the artisanal and small-scale miners, service providers, stakeholders, policymakers and Chamber of Mines converge at the Gweru Business Convention Centre, the venue of the ZMF AGM and Exhibition Conference, they will all be aiming at “revolutionising the ASM sector through formalisation”.

The ASM sector has been a major contributor to the country’s total gold output, yet their operations have long been stigmatised and largely viewed as informal. According to Fidelity Printers and Refiners,  the ASM sector in 2018 produced 22 tonnes out of the total 34 tonnes produced, representing a 65 percent contribution.

“The Government acknowledges that the ASM sector has for long been disenfranchised due to stigmatisation of their operations, hence the need to align them in the mainstream economy,” reads a statement from ZMF.

It is against this background that the conference speakers, who will include industry leaders and experts, will provide new perspectives on main issues and concerns affecting the artisanal and small mining sector. The speakers will also share cutting edge content and insights on the mining landscape.

This year’s AGM will be held in collaboration with the Ministry of Mines and Mining Development. Speakers will be drawn from the ministries of Mines, Finance and Energy as well as from Fidelity Printers and Refiners, Chamber of Mines and the Minerals Marketing Corporation of Zimbabwe (MMCZ).

Meanwhile, the exhibition is an opportunity for the ASM sector to network and meet buyers and decision-makers from the mining industry. It is also a chance to engage with manufacturers, distributors and suppliers. — ZiMining

Fidelity needs to up its game

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The country’s legal gold buyer and exporter Fidelity Printers and Refineries’ gold buying prices are unarguably becoming competitive in the market, however, it is failing to attract more artisanal miners on board due to different reasons hence FPR should up it’s game, mining experts have said.

Rudairo Dickson Mapuranga

Speaking to Inside Mining Zimbabwe, the Deputy Minister of Mines and Mining Development Hon Polite Kambamura said that the gold buying firm is failing to create a mutual relationship with small scale and artisanal miners.

According to the Deputy Minister, the state-owned gold buying utility should find a way to make themselves visible to gold mining areas in order to save the miners’ time.

The minister also said that a nationwide presence is crucial to help the miner manage their money.

“It is crucial for Fidelity to be present to all the areas where mining is taking place in order to beat illegal buyers”

“In Makaha area in Mutoko, there is no gold buyer which means that the miner has to travel to Marondera to sale, which to some extent is not practical considering that some can only produce a gram,” said Hon Kambamura.

Supporting the same sentiment, former Zimbabwe Miners Federation Vice President, Engineer Chris Murove said that Fidelity should have a nationwide presence as this will positively impact on the miner’s cash flow management.

“Fidelity needs to have a nationwide presence as close to the miners as possible. This helps a miner’s cash flow management” said Engineer Murove.

Gold leakages in Zimbabwe have been so rampant and the police have been tirelessly working in conjunction with the Ministry of Mines, Fidelity and Zimbabwe Miners Federation to no avail.

Rumours have it that some oligarchs are involved in the smuggling of gold and these include the reserve bank bosses but nothing tangible has been put forward to prove that the reserve bank bosses are involved.

Lack of trust is causing low gold deliveries to FPR

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Economic experts have laid out that small scale and artisanal miners will not deliver their gold production to Fidelity Printers and Refineries due to lack of trust.

Rudairo Dickson Mapuranga

Speaking to Mining Zimbabwe an economic expert who refused to be quoted said that despite Fidelity paying miners money that is worth their production, most small scale and artisanal miners will not deliver their gold to the state gold buying utility because they don’t trust the current government.

According to her, both large scale and small scale miners are not delivering their full production of gold to Fidelity because they feel that the government might shift goal posts and resort to paying very little, unproportioned to their gold demand from miners using its delivery statistics.

“It all goes to trust, miners do not trust the current government, if they start delivering to Fidelity now, their full gold production will backfire in the near future”

“The government might pay less but demanding more… they will have the statistics” she said.

Commenting on the issue, a renowned geologist and mining expert Kennedy Mtetwa said that the lack of trust is brewed by the ministry of finance which changes policies willy nilly.

“Do you not see that the issue of trust emanates from the ministry of finance?” said Mtetwa.

When they were asked by Mining Zimbabwe to comment on the issue, Fidelity Printers could neither confirm nor deny the view but referred Mining Zimbabwe to the miners themselves to have more answers.

Gold delivery to Fidelity took a knock in the first half of the year compared to the same period last year despite the fact that Fidelity is offering competitive prices.

 

ZMF series, the court case that never ends

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Zimbabwe Miners Federation executive has won yet another Supreme Court appeal to cement their role at the helm of the organization at least for now.

Rudairo Dickson Mapuranga

On the 26th of March this year, Ms Henrietta Rushwaya through a High court ruling declared by High Court judge Justice  Nokuthula Moyo lost the presidency of the association after the judge declared that the results and proceedings of the elections which brought her to the helm of the small-scale miners’ body  are unenforceable.

Rushwaya, then immediately appealed to the Supreme Court against the High Court order which stripped her of the presidential post of the miner’s body .Rushwaya had initially lost the High Court ruling because the Zvishavane Mberengwa Miners Association who challenged her position as the president of the body had sited that, High Court judge Justice Nicholas Mathonsi had 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 Rushwaya.

After Rushwaya had appealed against the High Court ruling which stripped her of the presidency, Zvishavane Mberengwa Miners Association on April 16 2019, urgently appealed against the petition and Bulawayo High Court judge, Justice Martin Makonese dismissed the miners association’s urgent appeal as not urgent at all.

On 25 June, the Supreme Court then dismissed  Rushwaya’s appeal on sitting irregularities which meant that Rushwaya lost her presidency again.

She then quickly applied for reinstatement of the case which took some time and the debate of her as the legitimate president was always being thrown around in the miners ‘streets.

Yesterday, Rushwaya finally won the Supreme Court application for the reinstatement of their appeal. Their case is now reinstated and back on the Supreme Court roll and according to the laws of the land, this means that Rushwaya is still the president of the small scale miners body.

The ZMF court series is one of the best entertainment scene in the mining industry which miners cannot afford to miss.

The politics in the association has left many amazed and astonished but the situation remains the same to all the miners around Zimbabwe. ZMF is still in the hands of Rushwaya and she has soldiered on amidst all the turmoil in the smallscale miners body.

Prospect, ACM sign power supply deal

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AUSTRALIAN-listed mining group, Prospect Resources, has signed a power agreement with African Continental Minerals (ACM) for the supply of up to 20MW of electricity to its Arcadia lithium project, which is undergoing development.

In a statement, Prospect, whose lithium project is located on the outskirts of Harare, said: “In line with Prospect’s focus to develop the Arcadia lithium project, the agreement provides Prospect with power supply optionality for the project while also generating opportunities for additional services/projects, such as ACM’s coal-bed methane gas to power project, to be developed”.

The Memorandum of Understanding by the two companies is non-binding and sets out the key terms for subsequent formal off take agreement as the Arcadia Lithium project is developed. 

Prospect said the MoU’s key terms include an agreed term of five years from the commencement date (to be outlined in a definitive agreement) and minimum supply of 20 megawatts daily power to meet all of Arcadia’s power supply requirements (Arcadia’s peak power requirement is 16MW). Part of the agreement also provides an option for an additional 25MW of supply in the event of further expansion of the facility or downstream processing (Lithium Carbonate or Hydroxide plant).

At present, Premier said ACM holds two Special Grants containing a total 245 000 hectares and is awaiting the final approvals on a third asset. 

“All assets are covered by existing power lines ranging from 11kilovolts to 33kV. Drilling test and production wells will be placed within four to eight kilometres from power distribution lines. ACM possesses the vital technical industry experience to deliver a purpose-built power solution for Prospect,” said Premier.

It said ACM’s parent entity, Jacqueline Resources, has established a team of experienced experts on the ground in Zimbabwe headed by Mr Troy Wilson, a widely recognised coal-bed methane (“CBM”) expert, with over 20 years’ experience across exploration through to production.

“Jacqueline Resources’ team possesses global experience across de-gassings to energy projects in coal mining such as converting CBM gas to power, as well as Coal Seam Gas (“CSG”) projects. 

“Arcadia’s primary source of power supply is from the national electricity grid that is owned and operated by Zimbabwe Electricity Transmission and Distribution Company whose main power distribution lines runs adjacent to Arcadia, some 15km away.

“Prospect has secured Arcadia’s required supply at this interconnection.”

The MoU provides Arcadia with optionality for power supply and competitive tension for future supply agreements. In addition to the signing of the MoU, Prospect continues to consider alternative secondary power supply options including purchase of power from the Southern African Power Pool, a power purchase agreement with the existing Cahora Bassa Hydroelectric scheme or even the creation of a solar farm on site to ensure                                                               appropriate power solution with contingencies to support the development and operations of the Arcadia mine. 

The mining group looks forward to supporting additional power projects in the future. Its managing director Mr Sam Hosack was quoted as saying:

“The development of Arcadia creates opportunities for other investment and projects to either directly or indirectly benefit from the Project’s operations. Prospect is creating an ecosystem anchored by the Arcadia Mine. 

“This positive multiplier effect will boost investment in Zimbabwe and deliver a raft of benefits to the economy and the community”_The Chronicle

Venice mine takes part in community empowerment

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It is quite impressing that our mines are associating with the communities in which they operate in as a way of guaranteeing decent living conditions within the communities. Speaking to Mining Zimbabwe, Shawn Lavaia who is the safety, health and environment officer of Venice mine highlighted on the projects that they are doing for the community and what the mining company is looking forward to achieving. They are creating job opportunities for the locals, assisting the nearby police stations as well as assisting school children with scholarships.

Mirirai Melissa Ngoya

It is critical for a community to have decent roads, as such Mr Lavaia outlined that Venice mine has engaged in the road maintenance project in order to ensure accessibility as well as safety when travelling.

“the road maintenance from Empress Turn-off to Munyati river has been a successful project for the benefit of the community and the nation at large,” he said

The company has provided a platform for job creation where the locals are being included in the mining operations. Mr Lavaia said, “We draw our manpower labour force from the local community, thus employment creation.”

Considerably, Venice mine has also been active in helping other mines in times of tribulations as highlighted by Mr Lavaia.

“We assisted with fuel, labour and material at Cricket Mine disaster,” he said.

Recently, there has been a lot of criminal cases being reported in the area, hence Venice Mine has partnered with the local police station supporting them in seeing that there is no mineral violation within the area.

Mr Lavaia said “as a mine, we figured out that it is important to offer a helping hand to our community police force since they keep an eye on the mine as well as making sure that there is no mineral violations or any skirmishes within the community. Therefore, we decided to assist Battlefields Zimbabwe Republic Police Station with stationery. We also helped the Police with fuel and transport provisions in emergencies.”

Further, Venice mine highlighted that they are also concerned with good environmental services which the safety, health and environment officer applauded for. He indicated that they are offering mowing services to the local ZRP station as well as in schools around the community.

“We are doing mining operations related to that big Venice mine we used to have, but in real terms, we are still a small and struggling mine which we hope will stand on its feet in the near future. So far we cannot afford to start big projects but we hope that very soon we will reach that level.”

Mr Lavaia also emphasised on the projects which they intend to do in the community. Venice mine noticed that it is a requisite to have operational health care facilities in the area since health is the key factor to consider especially for the locals who reside in places where mining activities take place.

“We are looking forward to the opening of our clinic which will be operational in emergency cases, attending to everyone in the community as well as mine workers.”

“It is important to subsidise Domain Rural council clinic so that it improves its health services”

All in all, apart from producing the yellow mineral which is targeted towards the nation’s economic development, Venice mines is taking strides in developing the community in which it is operating in.

24 Challenges faced by Artisanal, small-medium scale miners in Zimbabwe

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The artisanal and small scale mining industry is on an upward trajectory in Zimbabwe and is estimated to be supporting over 1,5 million Zimbabweans. As a fairly new industry, it is faced with a myriad of challenges that can be overcome if proper solutions are put in place.

This article was written by a Small-scale miner highlighting the many challenges faced by small-scale and artisanal miners in Zimbabwe.

1. ELECTRIFICATION OF CLAIM/MINE

We understand the high cost involved in the daily operation of our mines due to the continuous request and purchase of cell batteries and head torches. Also the high cost of operating using a generator or fuel-driven machines. Electrifying mines will increase production and reduce the cost making our minerals competitive on the market, as well as saving the use of firewood. Sometimes as citizens we do have solutions but the wheels of government turn slowly to embrace ideas that can transform an industry like putting all small-scale mines under green energy, and solar energy stations.

2. EQUIPMENT AND MACHINERY

Zimbabwe local miners do have a mammoth task in acquiring machinery and equipment, as a lot of money is required hence the miner will be juggling between daily operations, government fees and charges, family and equipment. Miners are left with no option but to work within their means, resulting in failed targets, goals or below daily production. The end result will be an unsustainable mining operation.

3. MINING FIELD OFFICERS

Just like in agriculture, the growth of a sector or industry is achieved by a collective effort being government and the stakeholders. Artisanal miners would not grow as long as they don’t have government or Mines Ministry personnel to help them with mining and underground challenges they encounter on daily basis. With the background of poverty, lack of proper education and lack of employment most people find their way into mining but without the knowledge of the industry. The end result of this kind of venture is the loss of little saved finances, loss of lives, injuries, use of wrong mining methods, time wasted without production etc.

4. MINES or CLAIM FORTITURES

A lot of claims or mines are being lost to big guys with money regardless of the artisanal who invested their entire earnings on claims or mines. We call upon the government to set up a system whereby Ministries are interlinked or
connected. The need for the interlink is, to ease the renewal, gold or mineral sales, payments or registration, such that the process would be a one-stop-shop. What we propose is for example a gold miner, once he produces his gold and sells it to Fidelity Gold Refiners(FGR) all charges and costs to do with his mine or claim be deducted and forwarded onwards to relevant ministries and authorities. The invoices or receipts the miners get from Fidelity should be the only important documents miners should safeguard as records.

5. EXPLORATION OF CLAIMS/MINING AREAS

For the benefit of our country, the government through the Ministries should carry out exploration such that miners won’t waste resources in speculating. If a model from a country like Tanzania as presented at the ZMF summit on 21-22 March 2018, the government through the mining Association should carry out surveys and explorations for the artisanal and small to medium scale miners before they are given claims. Against this backdrop, a lot of hardworking and productive men and women will work tirelessly for their country to prosper. Let there be a scheme to assist in the exploration, there are machines which can be used like gold and reef detectors but to a small-scale miner, it’s costly hence the need for government to assist and recover its dues on sales.

6. INCLUSION OF CHIEFS

Chiefs should be included in the mines and minerals act as they also play a pivotal role in mining activities. By virtue of being the custodians or guardians of the whole mineral resource areas, nothing or no mining activities happen without their involvement and participation as evident by some requirements of the EIA.

7. FAST DEPLETABLE MINERALS

May these exclusively be reserved for locals or citizens, ie the likes of gemstones and alike minerals. If diamonds are reserved only for the government then, why not reserve the rest that the government doesn’t want for locals than to say it’s free for all foreigners and locals? The government must let foreigners be buyers and locals be producers or miners.

8. LICENCING OF GEMSTONE DEALERS OR AGENTS

The current position is that the government has no clear position on the gemstone trade only to say MMCZ is the sole marketing arm of the government. Having MMCZ as the sole arm of government a lot of trade opportunities are being lost, as already the department is overwhelmed with other minerals like chrome etc hence the need to
bring in local Zimbabwean players to facilitate the trade. As the gemstone dealers or agents are licensed, they will be able to issue legal documents or invoices which can be presented at points of exiting the country like airports and borders when a buyer intends to travel out of the country with the gemstones. The legal documents will indicate that the buyer had paid the full price inclusive of taxes and royalties to X agent or dealer whose document will be computed for cross-reference by the revenue collector.

9. ZIMRA’S DUTY ON MINING EQUIPMENT AND MACHINES

May our parliamentarians change the ZIMRA law or regulations and incorporate artisanal, small to medium-scale mining such that it may have promotions on mining equipment in such a way that duties and taxes are not
chargeable so as to grow the small-scale mining industry. The equipment should include the likes of jackhammers, underground head torches, ropes nylon and wire ropes, bits etc.

10. ROYALTIES AND LEVIES

May the government direct part of the royalties and levies collected to road rehabilitation, because in most areas where the minerals come from, the road network is in a very bad state. We all know once the minerals are finished, no mine or miner will ever come back to rehabilitate the roads for a loss.

11. HIGHWAYS AND TOLLGATES vs MIN OF HEALTH

May the government share the income generated by the highways and tollgates with the Ministry of Health as more and more casualties come from accidents and once at hospital patience are faced with a lack of medicine or
treatment. This facility will be able to assist or improve our health sector such that even miners who ply the roads get the best help on time and return back to work well and fit.

12. SYNERGIES WITHIN MINISTRIES AND GOVERNMENT DEPARTMENTS

We have noted the disengagement of ministries and departments in the industry whereby production can be
increased or improved. Giving some examples, the ministry of mines should work with the Ministry of Transport in such a way that all the mining dumps or waste will be used in road construction and maintenance. Mining pits that carry lots of groundwater can be used in agriculture for farming projects like fish farming, horticulture and many others. Miners drain a lot of underground water which is clean and EMA OR ZINWA can construct water bodies or dams where miners pump their wastewater which will be utilized by the farmers.

13. GOVERNANCE

Currently in Zimbabwe, there is no law which is specifically for small-scale mining, the same laws for mining apply to both small-scale, artisanal, and big mines. Having one shoe fits all principle cripples the operation of the small-scale mining sector as there are a lot of challenges faced, from the capital, equipment, labour, mine regularization, etc as all these are self-funded with no access to loans. There should be a law which protects small-scale miners, if endangered animal species have laws which protect them why not a sector or industry where human beings and families are concerned?

14. LACK OF INSTITUTIONS

The government is not doing enough in setting up essential institutions like schools, hospitals and shopping centres for small-scale miners to feel at home wherever they will be mining. The lack of these essential facilities will make miners abandon their families in search of mining fortunes thereby creating distant relationships with family and friends. Also, it’s a health hazard as miners do have a high chance of contracting deadly diseases.

15. LEGAL MATTERS

May government come up with a mining court/s where matters relating to mining are resolved effectively and fast as we have noted with great concern that, more cases end up taking more time to be resolved because the courts handling the cases will be overwhelmed with many other cases and are not versed with the industry.

16. LACK OF POLICY ON SECURITY IN THE MINING SECTOR

Small-scale miners have become a target of lazy people in the mining sector in form of robbers, murderers, thieves and rapists. As a country, we are now faced with a group or gangs of machete-wielding people who claim to be miners but in actual fact, are thieves and robbers. As we have noticed these gangs have become another force if not carefully dealt with, we are breeding terror groups to which the government at one point in time will have to face them in a fierce battle. It’s another guerilla war in the making. Currently, the police have no capacity nor chance to deal with these terror gangs. As a country, we are losing hard-working citizens day by day through machete inflicted deaths. There should be laws to protect miners from these groups. We would propose stiffer sentences on the perpetrators because if stock theft has not less than 9 years, why not protect human lives than animals. The perpetrators should be given hard labour in the mines to reduce our cost of production, as they will be working in
government mines like ZMDC, ZIMASCO, ZIMALLOYS, in the coal, chrome, limestone and other industrial minerals which are beneficial to various sectors. We also believe that if the presidential powers act incorporates this issue as a matter of urgency we hope sanity will prevail. These gangs are economic saboteurs. These gangs are the ones promoting heavy leakages as their loot or minerals will be sold to the highest bidder and with no trace.

17. FINANCE

Small-scale mining operations do require financing in order to succeed with better repayment rates and flexible terms and conditions. Most small scale miners resort to disposing of their assets and small savings in order to start up the mining operations. May the government through its institutions like NSSA whose monies are being looted by
thieves in authority be channelled to the miners who are currently contributing to the country’s financial basket.

18. VALUABLE MINERALS BEING WASTED.

We have noticed that valuable minerals are being wasted due to ignorance and lack of synergies between ministries, communities and mining associations. May we give an example of the current Norton – Bulawayo highway construction, we did notice that iron ore with 52.33%, red oxide ore with 19.68% iron (Tested by Department of metallurgy on the 6th of May 2019 certificate no. 000739C), Gold and 2 more other mineral ores which we could not identify due to lack of technical as well as technological support are being used as waste raw material in the
road works.

The second area of concern is the raw materials, river-sand being used by the Chinese tile factory. We believe most of our rivers consist of alluvial gold and other mineral elements. On the 9th of May 2016, just a paragraph in the Chronicle says “Excavation associated with the upgrading of the Kariba South power station along the shores of Lake Kariba led to the discovery of Gold & Platinum group of mineral deposits.

Discoveries were made during sand abstraction in Gache Gache. Our plea is, may the so-called raw materials from mining be extracted off the minerals before being used. Also, may the government allow knowledge transfer between the so-called technical people (surveyors, geologists etc) and the miners or associations in order to boost the Industry. Once miners are equipped they will be able to use the knowledge, in mining various minable minerals
like copper, manganese, gemstones, iron, tantalite etc.

19. LACK OF COMMUNITY DEVELOPMENT FROM FOREIGN INVESTORS OR MINES

From a community point of view, we were better off without these miners or so-called investors. They are busy looting our minerals and ores, giving far less or nothing to the community. Our people are suffering more day by day from lack of better roads being destroyed by miners, poor wages, salaries and working conditions when employed, lack of health facilities and schools while minerals worth billions of dollars are vanishing from our communities. Giving an example of Afrochine plying our communities in search of the much-needed chrome ores to feed their smelter but nothing has been done since their establishment to make our roads state of the art or just better so that when they leave, we have something to show for.

May the government push for a side by side community development with the investor during their business setup, rather than for them to prioritize their business and the community last, while they got the very minerals first from the community. A community master plan must be availed before any commencement of works.

20. LACK OF RESPECT TO OUR TRADITIONAL CULTURE AND VALUES.

Most of our foreign investors do lack respect for our traditional culture and values. May the responsible authorities enlighten them that we are a country rooted in our beliefs and values. We have places and areas which cannot be mined because of zviera and midzimu yedu but because it is investment, we noticed that most of the sacred areas are being penetrated by the so-called investors in the name of prospecting and exploration, later on, mining. A good example is the Chinese mining at Nharira hills. Our chiefs and local leaders have no value or meaning to the foreign investors.

21. EXCLUSIVE PROSPECTING ORDERS (E.P.O)

Since most Zimbabweans are readily geared to venture into mining, we believe these orders should not nor never be issued. Zimbabwe is open for business as the presidents’ mantra, but EPOs are closing down Zimbabwe’s business. The country has been prospected by these foreign investors for years now, what we require as a country is production. It is known the world over, that Zimbabwe has vast deposits of minerals like chrome, gold, lithium, tantalite, manganese, platinum etc, but year in and year out, the country is always being blanketed with EPOS.

22. LACK OF IMPROVEMENT ON THE DEPARTMENT OF METALLURGY

May the powers being, do visit the department and see for themselves that the department needs to be revamped or refurbished. As miners, when searching for investors, partners or markets we require credible test results that meet international standards. Please, we beg you, may something be done to improve the metallurgy department. We are issued with test results but due to their state, sometimes we doubt their accuracy.

23. MINER, FARMER DISPUTE.

We believe both parties play pivotal roles in our economy hence the need to look at this issue holistically. A farmer requires surface area for farming and a miner requires ground area for mining. As a country, we need to come up with models that are suitable and in tandem with the MINISTRY OF AGRICULTUREs farm zoning, that is, A1, A2 AND Commercial farm. As a suggestion, if per se, a miner wishes to register a mine or claim in a 20 hector farm size let him be allowed only 5 hectors surface area so that he spares more space for a farmer than to take up a big surface area which may not be used at all.

24. ISSUANCE OF SPECIAL GRANTS

May the government really be serious in this regards, if it requires the industry to grow. At this time and age, we expect and anticipate the smooth flow of the process but in the special grant process, it’s a nightmare, as we are advised that the board which does approvals seats once or twice a month and honestly for the whole country. This process brings about a window to corruption and injustice to locals as they will be spending more money in following up. In some cases, two years pass without even a response hence those with hard cash getting what they
wish. May something be done as a matter of urgency.


Written by Privelage Moyo. Moyo is a miner, a registered gemstone buyer and Chairman of Norton Miners Association. He writes in his personal capacity.

Govt gives up on 40-tonne gold target

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ZIMBABWE will not reach the targeted 40-tonne gold output this year after gold producers endured a subdued performance in the year to date due to power, fuel, foreign currency challenges and suspected smuggling.

This comes after gold producers managed to deliver just above 12 tonnes of gold during the first half of 2019 from 17,2 tonnes  extracted  during the same period last year.

Producers of the “yellow metal” now need to produce more than 27 tonnes during the second half of the season – which is traditionally the strongest half in the sector – to reach record deliveries. Experts however say this was now mission impossible given the circumstances on the ground.

Reserve Bank of Zimbabwe governor John Mangudya said given the power cuts and fuel shortages the target was not going to be met.

“This year, we had projected a gold output of between 35 tonnes and 40 tonnes of gold but with the current power, fuel and forex challenges the target may not be reached,” Mangudya said.

He said the economy has continued on a downward trajectory since the beginning of 2019 as gold exports plunged 31 percent to US$490 million during first six months of 2019 from US$715 million earned during the same period last year.

In February this year during the monetary Policy Presentation, the central bank pronounced that the gold miners were going to get 55 percent forex retention on cash basis with the balance given on local currency at the interbank rate of the day.

This was a significant decrease from 70 percent forex retention threshold which was given to small scale miners last year and this has created arbitrage opportunities for small miners.

The decrease in forex retention levels has led to suspected smuggling to neighbouring South Africa as cartels close to the corridors of power are offering gold producers 90 percent of forex. It is estimated that last year over 40 tonnes of gold were smuggled to
South Africa.

A ministry of Mines and Mining Development Ministry official who
declined to be named said: “It’s now official that we are not going to
reach 40 tonnes this year given the power and fuel situation in the
country.

“The Ministry will soon carry out a meeting as to what can be done to improve deliveries. With expected smuggling the country will lose more.

“Earlier this month even the Minister himself (Winston Chitando) believed that the 40 tonne mark is no longer possible.”

When contacted for comment Chitando asked for written questions which
he did not respond to at the time of going to print.

Gold is Zimbabwe’s highest forex earner contributing over 38 percent of total export earnings.

Government is targeting 100 tonnes of gold by 2023. Business Times

Filabusi woman raped in a disused mine

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A Filabusi woman was allegedly rapped in an abandoned mine which was about five metres deep by a gang of five suspected machete miners (Mashurugwi).

Kennedy Wonder Ndlovu (23) of Marumba B Village in Filabusi was not asked to plead when he appeared briefly before Gwanda magistrate, Miss Lerato Nyathi, facing a rape charge.

It is alleged that Ndlovu together with his gang ambushed a Filabusi couple who were coming from a night club and threatened the man who fled from the scene before Ndlovu raped her.

Ndlovu was not asked to plead and he was however, remanded in custody to September 9 for trial.

Prosecuting, Miss Ethel Mahachi said Ndlovu raped the woman on the 13th  of February   at around 3am whilst she was returning from the nightclub with her boyfriend.

“On 13 February at around 3AM, the complainant and her boyfriend left Sibiya Nightclub at Theleka Business Centre in Filabusi where they had been drinking and proceeded home. ’’

“After they had walked a distance of about 500 metres from the nightclub, they were approached by a group of five men who were flashing torches and Ndlovu was among them.’’

“Ndlovu produced a catapult and threatened to assault the complainant’s boyfriend who fled from the scene leaving his girlfriend behind. Ndlovu dragged the complainant into the bush for a distance of about 100 metres while his friends followed,’’ he said.

Ms Mahachi said Ndlovu pulled the complainant into a disused mine which was about five metres deep and raped her while his friends watched.

 She said when he was done, Ndlovu and his friends left and he left his catapult and a black hat at the scene.

Miss Mahachi said the complainant went back to the business centre where she sought assistance and the matter was reported to the police. The police visited the scene and recovered Ndlovu’s belongings. 

She said Ndlovu, who was on the run, was arrested on July 10.

Mawere accused Zim government of failure to honour property rights

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RENOWNED businessman and shareholder of African Associated Mines in Zimbabwe Mutumwa Mawere has accused the Zimbabwean government for its failure to honour property rights and he said that such practices chase away investors.

Rudairo Mapuranga

Commenting on his official Twitter blog, Mawere said that although Zimbabwean government is working on reviving the Shabanie Mashaba Mines which were under AA Mines, it is against the law of the land for the government to take that course of action before property ownership issues are addressed.

According to Mawere, the government’s zeal of pushing towards the opening of Shabanie Mashaba mines was an act of thievery and  they should never be congratulated for doing so.

“After reading the propaganda , some people may soon be persuaded to congratulate a thief for fixing a car the thief  damaged using public power and public funds” reads the tweet in part.

Mawere  is of the view that the laws of the land which allow the minister to take people’s properties is a direct insult to the ‘’open for business’’ mantra hence investors will not invest in Zimbabwe due to these issues.

“Let us understand what is at play here, imagine living in a country where the abuse of public power is a headline, would you feel secure let alone invest in such an ecosystem? Imagine a law that allows a Minister to divest and deprive you of your rights” said Mawere.

Mawere however admitted that the market for asbestos is available in the world but the country needs to address issues to do with property rights first.

“The market for asbestos exists but that would be a diversion from the core issue of property rights and the role of the government in undermining the rule of law” says the tweet.