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RBZ rejects gold miners’ demand

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RBZ rejects gold miners’ demand

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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Is Chrome our hope to lift the Economy?

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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Chiadzwa illegal diamond miner finally buried

 

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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Mining workers should be given US$790 per month

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

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

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

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

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

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

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

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

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

Chinhema said working conditions in the sector were poor.

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

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

Murowa brightens diamonds prospects for Chivi

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Murowa brightens diamonds prospects for Chivi

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

AMWUZ raises concern over Chinese’s growing labour violation

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AMWUZ raises concern over Chinese’s growing labour violation

 

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

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

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

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

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

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

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

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

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

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

Prospects targets additional funds for Arcadia project

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Prospects targets additional funds for Arcadia project

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

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

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

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

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

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

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

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

ZMF paves way for easy fuel access to small scale miners

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ZMF paves way for easy fuel access to small scale miners

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

By Mirirai Ngoya

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

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

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

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

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

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

Diamond Firm Sues gvt, instructs Sherrif to seize diamonds

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Diamond Firm Sues gvt, instructs Sherrif to seize diamonds

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Chamber of Mines elects first female President

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Chamber of Mines elects first female President

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

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

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

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

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

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

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

Source: Newsday

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