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Rushwaya led executive pushes ZMF to another level

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Zimbabwe Miners Federation which last week announced a deal with Glow Petroleum to ease fuel problems for the miner, has once again announced a partnership with the country’s sole gold buyer and exporter, Fidelity Printers and Refiners (FPR), to ensure that miners realise the true value of their gold production, at a meeting held yesterday at the Rainbow Towers in Harare.

Rudairo Dickson Mapuranga

Gold producers have been advocating for 90 to 100 per cent foreign currency retention threshold from Fidelity Printers and Refiners since the 55 per cent they are receiving currently is not viable for production.

However, the partnership between ZMF and FPR will benefit gold producers as the two parties will ensure according to both ZMF president Henrietta Rushwaya and FPR General Manager Fradreck Kunaka that the miners realise the true value of their gold production.

According to the Fidelity Printers and Refiners General Manager, the two parties will set up a committee to set up the right price that will be viable for the miners, the committee according to Mr Kunaka will also look at the operation cost of the small scale miners so as to come up with prices that are viable for them.
Mr Kunaka also added saying that the partnership between FPR and ZMF will ensure that miners realise the true value of their production.

“What is important is that the miner feels the value of the commodity which they would have delivered to Fidelity,” he said.

Henrietta Rushwaya added saying that the Federation will continue to engage the government with regard to 55 per cent forex retention, however also taking cognisant of the challenges that the government is experiencing concerning the issues of foreign currency.

“If we properly come up with a sound request, the government will reconsider its position, but it’s not a question of just going to the government to say we want 80, 90 foreign currency retention,” she said.

The Zimbabwe Miners Federation is the brainchild of the Ministry of Mines and Mining Development whose birth was marked to represent and contribute to the development and growth of small scale miners.

Zimbabwean miner murdered in SA

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A South African popular news website reported that Zimbabwean national Frank Joe Moyo, who was allegedly linked to illegal mining, was murdered on Tuesday evening in Limpopo in South Africa.

Police spokesperson Col Moatshe Ngoepe said Moyo was shot dead at about 7.30pm in Letsitele, outside Tzaneen.

“It is alleged that a 41-year-old man [Moyo], was coming from the Carnival City in Gauteng and arrived at a house in Zanghoma village to pay his ‘illegal mining employee’,” Ngoepe said.

“Moyo was outside the house talking to some of the employees when an unknown assailant entered the yard, shot him and fled on foot with his cellphone and an undisclosed amount of money.”

Moyo was certified dead at the scene.

Around 52 people are murdered in South Africa every day. The murder rate increased rapidly in the late-1980s and early-1990s. Between 1994 -2009, the murder rate halved from 67 to 34 murders per 100,000 people.

ZRP Officer arrested for gold ore heist

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The incident reportedly took place on Saturday night in Colleen Bawn, about 20km outside Gwanda.

A Zimbabwe Republic Police Officer, who allegedly led a heist at former Gwanda mayor, Knowledge Ndlovu’s Ettrick Mine and allegedly stole gold ore worth thousands of United States dollars, was reportedly arrested after a high-speed chase.

Reports say the cop, Bhekimpilo Moyo, who is stationed at Gwanda Police Station, and his accomplices went to the mine when Ndlovu was milling some gold ore.

The gang came across the former mayor’s employees guarding some gold ore, which was waiting to be ferried to the stamp mill, and they attacked them.

Fearing for their lives, the employees reportedly fled from the mine, leaving Moyo and his gang behind. It is alleged that the gang then loaded the gold ore into their truck and left
the scene.

The workers phoned their employer, Ndlovu, who rushed to the mine and intercepted the gang as they were leaving the mine.

The cop and some of his accomplices were apprehended after a 10km high-speed chase.

They were handed over to the police.

Contacted for comment, Ndlovu said he could not comment because it was now in the hands of the police.

“The matter is in the hands of the police. I can’t comment on the issue. It could jeopardise investigations,” he said.

Matabeleland South police spokesperson Chief Inspector Philisani Ndebele yesterday also declined to comment on the matter.

Last month, another police officer appeared in court accused of illegal gold panning and stealing gold ore from Gaika Mine in Kwekwe.

Donemore Nyashanu (33), of Mazvikite village under Chief Mposi in Mberengwa, a Support Unit operative, connived with five other members of the joint taskforce, who were tasked with guarding Gaika Mine, to conduct illegal mining activities and steal gold ore. Source – NEWSDAY

Gold mine workers take Chinese employer to NEC

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At least 34 employees, who are being represented by the Zimbabwe Diamond and Allied Minerals Workers’ Union (Zdamwu), are claiming that the Chinese company owes them over $154 000 in underpayment of wages and gratuities.

WORKERS at a Bubi-based Chinese gold mining company, Ming Chang Sino Africa Mining Investments (Pvt) Ltd, have taken their employer to the national employment council (Nec) for the mining industry over underpayment of wages.

However, on April 12 this year, Ming Chang, which operates a lime factory in Bubi district, approached the labour court seeking an urgent application for a show cause and disposal order against its 34 workers.

It argued that the employees had engaged in an unlawful collective job action without cause.

The mining company claimed workers were demanding back-pay, salary increments, transport allowances and company provided accommodation.

“…respondents (workers) and any other employee who was involved in the unlawful strike at Ming Chang Sino Africa Investments (Pvt) Ltd, Bulawayo Lime Factory and Bubi district, Bulawayo, be and are hereby dismissed from employment,” the application read.

But workers dismissed the allegations, arguing they did not embark on a strike, but were locked out of the premises by the employer.

Zdamwu general-secretary Justice Chinhema accused Chinese companies of violating local labour laws.

“We have said if the Chinese are genuine investors, they must come here and comply with the laws of Zimbabwe. They must comply with our labour laws, not what is happening now. That protection that they have claimed to have, we have found out it is not there,” he said.

“There is no that super protection that they allege. Yes, we have got corrupt elements within the government and within the political set up who protect these people, which is corruption. This must also stop,” Chinhema said._NewsDay

State Minister takes ZCDC to task over Chimanimani relocations

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Minister of State for Manicaland Dr Ellen Gwaradzimba says the Zimbabwe Consolidated Diamond Company should implement a sustainable relocation model for families in Chimanimani where the State miner began operations last year.

Dr Gwaradzimba said her office was concerned with the way the villagers in Arda Transau had been relocated and said she would engage ZCDC to ensure a different model was used in Chimanimani.

Hundreds of families were relocated to the farm from Chiadzwa to pave way for mining activities.

The seven diamond mining companies licensed to mine diamonds in Chiadzwa then – Mbada Diamonds, Marange Resources, Anjin Investments, Diamond Mining Company (DMC), Jinan, Kusena and GyeNyame – operated as joint ventures with the Zimbabwe Mining Development Corporation, when mining activities started in 2006.

All diamond mining activities have since been consolidated under the Zimbabwe Consolidated Diamond Company.

Minister Gwaradzimba said relocation of people should be done in a sustainable manner to ensure that the livelihoods of the villagers are not disrupted.

“One issue that I am concerned about is the issue of relocation of families in Chimanimani. We need to come up with a model that will allow our people to become self-sustainable. They should not be moved from their communities and thrown in areas where they cannot continue fending for themselves and they are forced to survive on handouts,” she said.

She said the diamond miner should build self-contained communities when relocating people to allow them to carry out projects that bring income and development.

“When they build homes for these people, we want irrigation schemes, to enable the people to venture into horticulture, aqua-culture and other projects. We want enough social amenities and roads among others to make the villages self-contained,” said Dr Gwaradzimba.

She said although she understood the economic challenges pertaining in the country, ZCDC could enter into partnerships with capacitated organisations for such projects to ensure that they do not strain their cash flows.

Dr Gwaradzimba said this would minimise conflict between the company and villagers in future.

More than two decades after villagers were moved from Chiadzwa, ZCDC is still battling with legacy issues emanating from promises made tocommunities by the seven companies that were operating in the area when diamonds were discovered._Manica Post

RBZ rejects gold miners’ demand

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ZIMBABWE is not in a position to liberalise domestic gold marketing and buying as this will negatively affect the flow of foreign currency into the economy, Reserve Bank of Zimbabwe (RBZ) deputy governor Dr Kupukile Mlambo has said.

He was responding to calls by the Zimbabwe Miners Federation (ZMF) at the recent annual mining indaba who demanded an end to the monopoly of Fidelity Printers and Refiners.

Fidelity is an RBZ subsidiary and sole gold buyer in the country. 

Miners contend that the centralised gold buying system does not give them fair value for earnings and want Fidelity to compete with other players.

They also claim the monopoly is to blame for the sprouting of illicit gold trading on the parallel market and smuggling. 

In an interview on the sidelines of a Sadc-Development Finance Institutions (Sadc-DFIs) forum hosted by the Sadc-Development Resource Centre, which ended here last Friday, Dr Mlambo said the call to liberalise the sector was not new.

“This is not the first time the call has come. An attempt to liberalise selling of gold was made between 2009 and 2013 but we realised that in terms of mobilisation of foreign currency, it was difficult because all sectors are supported by the mineral sector especially gold,” he said.

“In my view, I think it is premature now to start thinking that we can liberalise the sector. What is important for me is that we ensure that the small-scale gold miners are paid a fair price, which is as close to the international price as possible and that they get other support, which we are giving them under the small-scale gold miners’ facility.”

ZMF president Ms Henrietta Rushwaya had said the monopoly by Fidelity Printers was opening up the gold mining sector to exploitation of players hence the need to formalise the small-scale mining sector. 

She said the country has about 30 000 registered players and more than 1,5 million unregistered small-scale miners. 

Stakeholders have also stressed the need to regularise and speedily formalise the small-scale gold mining sector to harness all the output into mainstream production.

Gold mining contributes significantly to the economy in terms of export receipts and jobs.

The gold mining industry targets to produce 100 tonnes per year by 2023 to contribute to the envisaged $12 billion mining sector earnings by 2030. 

Meanwhile, Sadc-DFIs conference ended on a high note here amid calls for respective countries to capacitate development finance institutions to collectively address climate change risks.

All Sadc countries were represented at the forum held under the banner of the Sadc Development Finance Resource Centre (Sadc-DFRC). The common message was anchored on the need to come up with strategies to encourage every institution’s participation in green financing to address climate change related calamities such as cyclones and disasters.

Sadc-DFRC chief executive Mr Stuart Kufeni said the gathering recommended that every member state should address policy issues to create a conducive environment for finance institutions to embrace green financing.

“This is a forum to share experiences and discuss these issues as they cut across sectors from SMEs to big institutions. What came out is that there are parameters that we need to address if we are to effectively harness and be able to move on to green financing.

“There are issues of regulation and policy environment to ensure that we have a conducive environment so that we can green our economies. The DFIs from different countries have to take these recommendations home and be in a position to also implement in their own countries,” said Mr Kufeni.

Dr Mlambo officially opened the conference where he said Zimbabwe was working on a framework that will guide the country’s financial sector to adopt sustainable green financing principles.

The Sadc-DFRC has 41 certified DFIs.

Membership of the DFIs network is as prescribed by a Sadc protocol structure made up of Ministers of Finance and Investment and is confined to those that are Government owned and established through a policy targeted at developing specific sectors of the economy._The Chronicle

Is Chrome our hope to lift the Economy?

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Zimbabwe has a significant resource in the chromium sector, with the world’s second largest reserve of chrome and as such the reserves are to be utilized to help in reviving the country’s economy.

By Mirirai Ngoya

Zimbabwe is playing an important role in the chromium industry and will provide an opportunity to promote Zimbabwe’s rich mineral resources and also an opportunity for development and an attraction to many investors in Zimbabwe’s Mining sector. Minister of mines and mining development indicated that “Zimbabwe holds the world’s second largest chrome ore resource of 900 million tonnes at approximately 12 per cent with South Africa leading the pack. Global resources are estimated at 7, 5 billion tonnes. However, more exploration is required to upgrade the resource.”

“Based on 2018 statistics, Zimbabwe produced an estimated 1,358 million tonnes of ore, against the world total of 33, 7 million tonnes. From those figures, you can see that we accounted for 4 per cent of global output.”

Despite being a significant holder of global chromite resources, Zimbabwe’s contribution to total global production of chromite ore has been at best 5 per cent which shows its greatest impact on the world’s production.

Besides being a major player in the world’s chrome production, “since 2001, Zimbabwean chrome ore output had been decreasing in line with decreasing output of ferrochrome.” Said Mr Chitando.

But however, “Following the lifting of the ban on the export of chrome ore by the Government, chrome ore output, has increased exponentially from the all-time low figure of 186 000 tonnes in 2015 to approximately 1,358 million tonnes in 2018. Total exports of chrome ore during 2018 are estimated at 739 000 tonnes.”

That is from this we are looking forward towards achieving great deals to benefit the country.

There is huge potential for the country to increase its Ferrochrome production as over the last few years the nation has been witnessing decreasing ferrochrome production.
However, “2018 production was around 350 000 tonnes, which shows the country’s new capacity being commissioned and led to a 20 per cent increase of Ferrochrome production capacity to 418 000 tonnes in 2019.”

Most of the smelting technology in the country is old and there is a need to invest in new technology, especially technology that can process fines.

Some of the producers have plans to install fines agglomeration technology so that they can take advantage of the chromite fine resource, which accounts for approximately 40 per cent of the country’s chromite ore resource. New technology will also improve smelting efficiencies, thereby, improve the viability of the industry.

Further expansions will see a Zimbabwe ferrochrome capacity increase to at least 956 000 tonnes by 2022. Therefore, there is a need for significant investment in developing the mining capacity of the country from exploration through to production.

In line with Government’s vision for the country to achieve middle-class status by 2030, Zimbabwe has a clear vision of seeing at least 2 million tonnes of carbon and stainless steel, of which one of the key ingredients is ferrochrome, being produced in the country within the next few years.

Chiadzwa illegal diamond miner finally buried

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A SOMBRE atmosphere engulfed Jori village in Buhera on Sunday during the burial of Terrence Masendeke, who was shot dead while allegedly panning for diamonds in a protected area at Chiadzwa last month.

In an interview with NewsDay yesterday, the deceased’s uncle Richard Masendeke said they avoided body viewing as the body was now in an advanced state of decomposition.

“He was finally buried on Sunday in Buhera. We financed the funeral, but police helped by transporting the body from Harare,” he said “

Masendeke said his family was worried that no officials from the Zimbabwe Consolidated Diamond Company were present, neither did they send a condolence message.

The family recently took Home Affairs minister Cain Mathema and Commissioner-General of Police Godwin Matanga to the High Court, demanding an urgent autopsy and release of the body for burial.

Police had reportedly earlier indicated that the post-mortem would only be conducted on June 25 due to the shortage of pathologists in the country.

The family expressed fears that further delays in carrying out the post-mortem would compromise evidence.

According to the court papers, Masendeke was fatally shot on May 15 by ex-policeman Dulula Chinamano in full view of his colleagues._NewsDay

Mining workers should be given US$790 per month

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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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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