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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

Zimbabwe’s mineral-backed loans may complicate talks with creditors, IMF says

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Zimbabwe’s mineral-backed loans may complicate talks with creditors, IMF says

Foreign loans that use minerals as collateral may complicate Zimbabwe’s future negotiations with foreign creditors to restructure its $8.8 billion debt, an International Monetary Fund official said on Monday.

Unable to get funding from lenders like the IMF since defaulting on its debt in 1999, Zimbabwe has over the last five years relied on the African Export and Import Bank (Afreximbank) for mineral-backed loans. But the country still faces a dollar crunch that has led to shortages of fuel and medicines.

Zimbabwe remains in debt distress, said Gene Leon, the IMF mission chief to Zimbabwe. Its $2.6 billion arrears to the World Bank, African Development Bank and European Investment Bank prevent access to new funds from multilateral lenders.

“In this context, the government has contracted external loans on commercial terms that are collateralized by mineral exports,” Leon said in emailed responses to Reuters.

“While these loans can help the authorities in responding to the economic and humanitarian crisis that is unfolding, they may also complicate future negotiations with external creditors to restore debt sustainability.”

Leon said Zimbabwe’s projections of economic growth would probably be revised in the short term because of drought and a cyclone that battered the eastern regions. The IMF forecasts the economy will shrink by 2.1 percent this year.

President Emmerson Mnangagwa, who came to power after a coup toppled Robert Mugabe in November 2017, has made clearing foreign arrears a top priority. His government has agreed an IMF staff programme it hopes will help pay off multilateral lenders and Paris Club creditors next year.

The central bank, which has previously said it borrowed $985 million from African lenders last year, said on May 19 it had secured $500 million from unnamed international banks. Treasury officials said the money was from Afreximbank.

That loan included $100 million bridging finance in February, two treasury sources said, adding that some of the money was used to buy fuel and make “token” payments to South Africa and Mozambique for past electricity imports.

Gene told Reuters that implementing fiscal and monetary policy reforms, including the removal of exchange restrictions to stabilise the exchange rate and inflation, would be hard without external funding and after a severe drought.

At 75.86% in April, Zimbabwe’s inflation is still nowhere near the 500 billion% reached during the hyperinflation era of 2008. But the consumer price index is at its highest in a decade and eroding incomes and savings.

Zimbabwe increased the price of fuel by nearly half last month, the second increase since January, angering citizens battling with soaring prices of basic goods.

As inflation soars, the new RTGS dollar that was introduced in February continues to weaken. The currency was trading at 8 to the dollar on the black market compared with 5.52 on the official interbank market.

The local currency has now depreciated by 91% on the black market and 121% on the official market since its introduction._Reuters

Smelting company sued over chrome ore worth USD7 million

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Smelting company sued over chrome ore worth USD7 million

Afrochine Smelting is a subsidiary of Tsingshan Iron and Steel Group of China and has chrome smelters in Selous near Chegutu.

Chrome mining and smelting company, Afrochine Smelting, has been taken to the High Court by NR Barber (Private) Ltd, for allegedly unlawfully removing its chrome ore worth US$7 million.

Afrochine Smelting is a subsidiary of Tsingshan Iron and Steel Group of China and has chrome smelters in Selous near Chegutu.

It is being sued alongside Diamond Cement (Pvt) Ltd and Wonder Mavengano for the unlawful removal of 109 950,86 tonnes worth US$70 per tonne.

“The total quantity of the ore unlawfully removed is 109 950,86 tonnes whose value is claimed at the market value rate at date of summons being US$70 per tonne,” NR Barber, which is under judicial management, said in court papers.

According to NR Barber, the cited defendants in the matter professes to carry on the business of prospecting for mining and trading in minerals and mineral ores in the country, but at all material times, ownership of all ore extracted within NR Barber’s blocks belonged to the company.

“None of the defendants (Afrochine Smelting, Diamond Cement and Mavengano) has any right to enter upon the site of the claim or any right to the ore won from the claim,” NR Barber said.

“Sometime between 2016 and December 2018, the defendants wrongfully and unlawfully entered upon the location of Mzila 6 Mine claim and without plaintiff’s consent, approval or knowledge took several consignments of chrome ore extracted from the said claim,” the firm said.

“The acts of the first, second and third defendants were illegal and defendants had no right at law to act in the manner they did and must each be held jointly and severally liable, compensating the plaintiff for the loss suffered as a result of the unlawful removal of its chrome.”

NR Barber is being represented by Mafongonya and Matapura Legal._NewsDay

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