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Is there such a thing as resource curse?

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This is Part One of “Is there  such a thing as resource curse?”

Africa is often said to suffer from a resource curse. How valid is such thinking? In this article, we are going to look closely at this issue. First of all, what is a curse? As usual, I do not want to use a dictionary to explain what it is.

A curse is a form of judgment, usually leading to punishment — originating from one’s parents. To Christians, a curse is associated with God but I want to believe that to non-Christians, it is still the same idea, in which case it comes from some power that is higher than the human being himself. Usually, one is cursed for committing a sin or doing something that is forbidden by one’s tradition and/or culture; in the case of God, if one breaks His commandments.

Before we proceed further with our discourse it is still important to describe what resources are. Resources fall into two major categories — that is natural and man, and animal-made ones. As far as resources are concerned, one is born wired up to depend on them for survival. This is a natural instinct that even animals possess. Considered from both religious and evolutionary viewpoints, man and natural resources are intimately connected through the earth, the soil. And even though evolutionary theorists want to propound the idea that the black man has developed the slowest among all tribes, according to both views-that is religious and atheistic, man’s origin is the same. And he lives on and/or uses natural resources.

From this elucidation, it becomes clear that in reality, there is definitely no such a thing as a “resource curse”, for how can someone be cursed for using something that they have been created to use? But in spite of this fact, we often hear or read about this phenomenon of a “resource curse”; and strangely, it is mostly meant to apply to Africa and the Africans. So what exactly, is going on here? The way I see it, this is a contorted view of life that is meant to mislead people, particularly we black Africans. But why so? The simple answer to this question is: To make us lose what belongs to us.

At this juncture, the matter becomes more intriguing because most Africans who share this view of a resource curse also believe that the continent has more natural resources than any other continent on earth. But nothing could be further from the truth. In terms of total natural resource endowment, Africa, even as a continent, does not feature among the top ten natural resourced countries in the world.

And frighteningly still, these same people may not be aware that Africa’s resources are getting depleted at the fastest rate in the whole world today! In the book “Oppenheimer and Son”, by Antony Hocking-Earnest Oppenheimer, the subject of this book, is keenly aware of this phenomenon that took place in the South African diamond and gold mines right from the early days at Kimberly where the Great Hole is its main result.

That said, the question still remains unanswered here; if this allegation is actually true, why is it only the Africans who are being targeted to lose their resources? Surprisingly, here the answer is quite straight forward; because they either allow it or they make themselves prone to the seizure of their natural resources by other peoples. And paradoxically, in quite a few cases, they do not only encourage it, but they also assist in the process. But why, still?

The way I see it, at this stage of the argument, the matter changes from being quite straight forward to being quite complicated within a short space of the argument. But, however, I shall proffer my reasons which the reader does not necessarily have to agree with. Some of those people I have referred to above, just explain their case by asserting that Africans are ignorant, underdeveloped and all the related negative descriptions — this is why they lose their natural resources to those who are more advanced technologically than them. In these arguments, corruption becomes the major reason for this curse “because it ends up causing the Africans themselves, not anyone else-to kill and/or starve one another”. Sadly, the results on the ground seem to corroborate this view.

But do all those derogatory terms aptly describe the Africans? If so, how come we have all those inventors and innovators from Africa who end up residing in the “developed” world? So surely, Africans cannot be lagging behind other races technologically. But still, what is the real reason for this state of affairs? One can look at this matter from a number of angles. Let us take it that Africans are behind technologically and ask ourselves what it is that technology does to enable and or to make one want to hold on to their natural resources?

In that case, as I have always argued in my opinion pieces, we find that if one possesses the technology, they can make goods with their natural resources — a process generally referred to as value addition. Examples here are iron, copper, nickel and platinum products among others.

From iron they can make steel and iron products, and so forth; in fact, there are so many examples it would fill quite a number of books to go into all of them. And fossil oil — ironically, the current master polluter of the air over the earth — is one product from which numerous products of good commercial value can be made.

That said, there are some products that are made from some natural resources that are so ubiquitous that many of us take them for granted and therefore, may not even think much of in our everyday life. With all due respect to their humanness, in the underdeveloped countries such as Zimbabwe, the illiterate among us are not even aware such processes exist. Some of these products are sand, air, seawater and algae-all of which constitute a major part of modern high technology developments.

From sand, we get silicon computer chips and glass, among other products. From the air, we get ammonium nitrate fertiliser, air to inflate tyres, liquid nitrogen to preserve life, etcetera. From seawater we get fertilisers and salts for making chocolate and other products. Through some of the latest scientific discoveries, the Americans are contemplating making fuel from algae.

And considering the matter from a deeper perspective, one comes to realise that the sort of transformation that these natural resources undergo during their technical manipulation by man is quite fascinating.

And the sort of economic jump that one is able to make just by the acquisition of this technology and know-how is such that it would be simply impossible for one to catch up once they have fallen behind the one who is ahead of the rest in this respect.

The result of this situation is often a tussle between those at the top and those just behind them, or within the same category of technological and economic development. This tussle can assume a number of degrees; from being muffled to full-scale war. Today there are many examples of it between and among such countries as the US, Canada, China, North Korea, Iran and even Russia and Japan, among the main ones. The tussle between the US and Canada — two countries that are supposed to be the epitome of good neighbourliness — accentuates the absurdity and enormity of this challenge.

The desire to catch up often brings with it, some undesirable results such as the use of unsafe technology and its attendant methods. Nuclear disasters such as those that took place at Chernobyl (Russia) and Fukushima (Japan) among others are such examples.

Ironically in Africa (Zimbabwe included) the desire to catch up has brought up another negative phenomenon — that is, leapfrogging — that has often paradoxically, led to economic retardation. Why and how does this happen — you may want to know? You see, in the developing world, we start at the high technology level, in the process ignoring the basic level of (making) nuts and bolts. As a result, we become quite proficient at operating high technology gadgets without even bothering to find out how they are made in the first place, let alone try to make them ourselves!

The results of this state of affairs are the misuse and abuse of technology through social media — a condition that has almost destroyed our economy without us not even being aware of what is happening. The other even more detrimental result is the inflation that has ravaged the Zimbabwean economy through the importation of finished products that we should, with the right use of technology-be producing locally instead of importing with scarce foreign currency.

Let us go back to the natural resource curse issue. There are special elements that have become highly demanded because of the role they play in making the gadgets of high technology. It started with a few chemical elements, now the list is lengthening at a galloping pace. The original elements, in this case, were uranium and related radioactive elements such as radium and cadmium. Then came the discovery of the silicon chip that revolutionised computer technology. Then came the platinum and related metals — the so-called PGM group; then came the discovery and invention of the nickel battery for making clean fuel and it shall continue like that.

So now, because of this high demand for these elements that — in their natural form-exist as elements of the earth— that is soil, gravel and rock, the whole category of elements being known as minerals or natural resources — every technologically advanced country wants more of them in the current era. This situation has been worsened by the demand for the same natural resources by emerging and some developing economies. The latter have realised that the only way they can also become rich or just survive — is the use of these natural resources through value addition as well as increased end usage.

So naturally, there is a scramble for these natural elements by everyone concerned; from the developing to the emerging, to the developed economies. But the distribution of these elements has been through natural geological movements and processes that have taken place within a period spanning millions of years; this is why a reserve of a specific mineral can be found in such far-flung places as South Africa, Australia and the Americas, for example. Nickel, gold, platinum and so forth are some of these minerals.

That said, the distribution of these minerals is now dependent on the rate of their exploitation and their consequent depletion. This is the major reason for this scramble. In this case, we find that generally speaking, the developed economies have exhausted quite a few of their mineral reserves, hence their current strategy of ferreting for same from foreign lands is now more urgent than before. And because of their current state of relative backwardness on a number of economic fronts, the Africans are having a really tough time coping with events and processes in this area.

Sadly, these are circumstances in which the psychological element is playing a no mean role. In the 28 May-4 June 2019 issue of this paper, I said something about this matter in my article on the “Necessity of negotiating skills” among Zimbabweans in particular and Africans at large. I argued that so far, the latter are not yet ready to successfully negotiate in contracts, most of which are to do with the extraction of these natural resources.

In the same article, I alluded to but deliberately avoided being blunt on the matter by explaining what I meant about the general Zimbabwean mentality when it comes to the acquisition and use of our minerals. Now I have no choice but to delve deeper into the matter. I shall tackle this aspect in (Part Two) of this article.

Shambare is an agriculturist cum economist reachable on 0774960937 or email  [email protected]

Business Weekly

Mine worker dies after falling into shaft

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A MINE worker died after he fell into a shaft that he was working in at a mine in Colleen Bawn.

Matabeleland South provincial police spokesperson Chief Inspector Philisani Ndebele confirmed the incident which occurred on Sunday at around 5AM at Bothal 8 Mine.

He said Chrispen Gumbi (46) of Mberengwa slipped and fell into a shaft and died on the spot.

“I can confirm that we recorded a sudden death case where a mine worker fell into a shaft at Bothal 8 Mine on Sunday. Chrispen Gumbi was working at a mine shaft with his workmate Ashton Dube at around 5AM.

“Gumbi then advised his workmate to go out of the shaft and collect matches which they were going to use to ignite dynamites.

Dube went out to collect the matches and upon his return, he called Gumbi to receive it but he didn’t respond,” he said.

Chief Insp Ndebele said Dube then descended into the shaft to check on Gumbi but he failed to locate him at the tunnel where he had left him.

He said Dube later found Gumbi’s body in the main shaft suggesting that Gumbi had slipped from the tunnel.

Chief Insp Ndebele said the matter was reported to the police who attended the scene and Gumbi’s body was conveyed to Gwanda Provincial Hospital Mortuary. He said Gumbi sustained injuries.

Chief Insp Ndebele urged mine owners to ensure that their workers have appropriate tools and safety clothing to avoid loss of life.

“As police we continue to urge miners to ensure that they have proper tools, safety clothing and machinery when conducting their operations.

Mine owners should also inspect their mines to ensure that they don’t endanger the lives of their workers.

People should also desist from engaging in illegal mining operations,” he said_The Chronicle

Five men attack miner and leave him for dead

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FIVE men allegedly attacked a miner at Hope Fountain with knobkerries, bricks and axes leaving him for dead.

Shadreck Ncube (32) and Zvataida Zhou (38) and three who are still at large intended to steal a carbon capture machine and allegedly attacked Mr Ben Dube (28) who was on duty at Carrymine in Hope Fountain, on the outskirts of Bulawayo.

Ncube and Zhou pleaded not guilty to attempted murder before Bulawayo magistrate Mr Franklin Mkhwananzi.

 

 

 

The Chronicle

Minister to open Mine Entra expo

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MINES and Mining Development Minister, Winston Chitando, will officially open this year’s Mining, Engineering and Transport (Mine-Entra) expo to be held in Bulawayo next week.

The 24th edition of the expo will be held under the theme, “Accelerating Zimbabwe’s Mining Future to 2030”, and has attracted companies in the mining, engineering and transport sectors from South Africa, Kenya, Zambia, China, South Korea and Zimbabwe.

The annual event that is organised by the Zimbabwe International Trade Fair (ZITF) Company will be held from July 17 to 19 at the Zimbabwe International Exhibition Centre.

In an interview yesterday, ZITF Company acting general manager, Mr Nicholas Ndebele, confirmed that Minister Chitando will officially open this year’s expo on Thursday.

“This year we have six participating countries including Zimbabwe compared to five last year,” said Mr Ndebele.

He said the expo has maintained strong demand for space which demonstrates resilience of the mining value chain.

“Exhibitor numbers are impressive and we are excited about the prospects for this year’s expo. We already have 203 direct exhibitors and we expect the figure to go up as the momentum was temporarily disrupted by the changes on the monetary front a week ago,” said Mr Ndebele.

Finance and Economic Development Minister, Professor Mthuli Ncube, is one of the key speakers at this year’s event and is expected to discuss how the mining industry can leverage on economic transformation to achieve a $12 billion mining economy by 2023.

Government has set a target of US$12 billion mining sector contribution to the economy by 2023.
An inter-ministerial roundtable discussion on creating an enabling environment for mining sector growth with 2030 vision in mind would also be convened during the expo.

Professor Ncube and his counterparts, Ministers Chitando, Mangaliso Ndlovu (Industry and Commerce), Joe Biggie Matiza (Transport and Infrastructural

Development) and Advocate Fortune Chasi (Energy and Power Development), would also be part of the inter-ministerial roundtable discussion panelists.

Joint suppliers and producers co-chair, Mr Sifelani Jabangwe, is expected to present a paper titled, “Enabling mineral resource-led economic growth: Supply side opportunities and challenges”.
A consulting geologist Mr Nevison Chikandiwa will present a paper titled, “Zimbabwe’s mining potential: Towards better geological knowledge”.

Mine Entra is a trade showcase that seeks to unlock the potential, opportunities and growth prospects throughout the mining value chain and its related industry such as engineering and transport sectors_The Chronicle

US$3bn to be generated by the mining sector

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In 2018, the sector earned US$3,4 billion, driven by the high performance of the gold sector, which delivered a record 33,2 tonnes, but this year mineral output has been subdued.

Zimbabwe’s mining industry expects to generate US$3 billion in revenue this year, which is short of government’s US$4 billion target, an industry official has said.

In 2018, the sector earned US$3,4 billion, driven by the high performance of the gold sector, which delivered a record 33,2 tonnes, but this year mineral output has been subdued.

“The sector is growing. It’s not what we want, but I think there are positives that we can take from the mining sector. Never mind the outliers into the period between 2009 to 2011 because we were coming from a low base but what we have seen from 2016 is real output growth,” Chamber of Mines of Zimbabwe economist Pardon Chitsuro told a business meeting in Bulawayo recently.

“Our earnings are quite positive and we are expecting that maybe, by end of this year we would be slightly above US$3 billion,” he said.

In terms of contribution to the gross domestic product (GDP), Chitsuro said the sector contributes between 12% and 15%.

“We also contribute around 60% of the country’s forex exchange earnings. In terms of FDI (foreign direct investment) inflows, (we contribute) in excess of 50% inflows into the country,” he said.

In terms of employment, he said about 45 000 people were employed in the large-scale formal sector, with an excess of 500 000 involved in artisanal and small-scale activities.

He added that payments to government were taking up about 16% out of revenue. Other operational expenses take 4%.

“We estimate that every dollar that we generate, in excess of $3, is also generated in other sectors of the economy,” he said_NewsDay

Drilling to begin next year in Muzarabani

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ONE Gas Resources, the exploration partner of Invictus Energy Ltd in Zimbabwe’s Muzarabani district, expects drilling to begin in the second half of next year, targeting an estimated 1.3 billion barrels of oil equivalent and about 9.25 trillion cubic feet of gas.

“The planned well will cost anywhere between $15 million and $20 million and we will probably drill to a maximum of 3.5 kilometres,” One

Gas executive chairman, Mr Paul Chimbodza, said by email. The Muzarabani prospect could be “almost at par” with Total SA’s offshore Brulpadda oil discovery in South Africa and Exxon Mobil Corp.’s gas project off Cyprus, he said.

One Gas holds a 20 per cent stake in the Muzarabani venture, with the balance owned by Invictus. While the potential oil and gas deposits in the north of Zimbabwe could be a boost for the Government of President Mnangagwa, they are close to Mana Pools National Park — a World Heritage Site — and the Zambezi River, potentially sparking objections from environmental groups. — Bloomberg

Illegal mining destroying Chivero

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Zimbabwe’s largest inland man-made dam, Lake Chivero is under siege from artisanal miners who are threatening the survival of one of the largest tourist attraction centres in Harare, Zimbabwe.

By Rudairo Mapuranga

The city of Harare has laid several complains that the activities of these artisanal miners along Lake Chivero mountain are causing a lot of environmental problems like land degradation and water population.

The Mayor of Harare Mr Hebert Gomba told Mining Zimbabwe that the City Council had called on the Harare Metropolitan province Minister to look into the issue in order to safeguard the lake.

Mr Gomba said that the minister will assist the city council with police officers who will intercede in the protection of the area from illegal mining activities around the land.

“I have asked the Provincial Minister to help us with police to protect Chivero dam, which is under siege from these miners, the mountain is a wall that protects our dam.

Besides, mining uses mercury and other dangerous substances which if gets into water will kill our people, this must be stopped …” said Mayor Gomba.

Recently Chegutu West House of assembly constituency representative Hon Dexter Nduna had called on the government to legalize the artisanal mining sector or risk environmental problems with these miners because they won’t stop mining illegally.

EMA fees reduced to 300 RTGS per annum

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The EMA has reduced annual fees to 300RTGS. The reduction of EMA fees has come after miners raised concern that the fees they were paying to EMA where exorbitant.  This led Zimbabwe Miners Federation President Henrietta Rushwaya to call for a meeting with EMA in order to map a conducive environment for miners.

By Rudairo Mapuranga

Speaking on behalf of the EMA President Mupfumira said that the launch of the environmental management plan is there to put to fruition the mantra “Zimbabwe is Open for business”

“Let us ease and make the country conducive for business,” she said.

Mupfura also said that EMA fees were very heavy on Miners, therefore, her Ministry through the Ministry of Mines, after ZMF call, discovered that consultants were reaping off miners hence the introduction of one EMA which will cost $300.

“We want all miners to fill in EMA forms for just 300 rtsgs per annum,” said Mupfumira.

Mupfumira also urged small scale miners to have a mutual relationship with EMA to avoid accidents which were taking place in the mining sector because miners and EMA were operating in hide and seek.

“We want EMA to have a mutual relationship with the artisanal miners and not to work like cat and mouse,” said Mupfumira

Gold production target likely not be reached

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The targeted gold deliveries to Fidelity Printers and Refiners of 40 tonnes might not be reached. This was according to Deputy Minister of Mines Hon Polite Kambamura.

By Rudairo Mapuranga

The Deputy Minister said that the gold target set by the government might not be reached considering the delivery so far. However, the Minister was optimistic that delivery to Fidelity might be boosted since the government is employing measures to boost production.

“In January 1.77 tonnes was delivered instead of +2.3 tonnes of gold, we might not reach our gold target,” said Kambamura.

Last year small scale miners accounted for over 70 per cent of the gold delivered to Fidelity, thus disputes arising in the small scale mining sector are delaying production therefore according to Kambamura, his ministry is going to set up a dispute management team in order to ease mining.

According to the Deputy Minister, the government is creating gold centres were miners will receive the true value of their gold production, also, in these centres according to the Minister, miners will receive equipment thus increasing production.

“The government is also working towards gold centres, miners in those areas will receive equipment such as Jackhammers, explosives”, said the Deputy Minister.

Kambamura also said that the government is working towards selling explosives in local currency in order to reduce foreign currency spending.

“We are going to sell Explosives at those gold centres in local currency,” said Kambamura.

The Deputy Minister also said that at the gold centres, the government will employ Geologists who are going to provide information on minerals that are found at miners gold claims apart from the gold itself.

“We are also going to deploy geologist in order to empower miners of minerals knowledge,” said Kambamura

The Deputy Minister said that the government is looking into reviewing mining laws in order to recognise artisanal miners for them to operate freely.

“As government, we want to review mining laws into order to recognise the small scale miners. If small scale miners are recognized, it will be easy for them to access fans” said Kambamura.

Persecuting artisanal miners is biting the hand that’s feeds us

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Chegutu West member of Parliament Dexter Nduna has called on the government to legalise the informal mining sector in order to boost deliveries to the country’s sole gold buyer and exporter Fidelity Printers and Refiners (FPR) and also to protect the environment from illegal digging.

By Rudairo Mapuranga

Nduna said that criminalising the artisanal mining sector will not help the country but fuel gold leakages and environmental degradations.

“These miners will not stop mining, they’re getting what they can and caning what they get at the detriment of the Environment. The year that artisanal mining was banned, gold deliveries to Fidelity declined” said Nduna.

Nduna called on the government to stop persecuting artisanal miners until the mines law the government is working on is enacted, Nduna also said that the miners must not be arrested when taking their gold to fidelity.

“Let small scale miners be immune to arrest when they sell their gold. Artisanal miners have become a playground for corrupt police, artisanal miners should not be arrested until mines law is enacted” said Nduna.

Nduna also urged the government to implement the ” use it or lose it” policy in order to benefit these artisanal miners.

“These claims are owned by foreign conglomerate companies and are held for speculative purposes, take them and give them to artisanal miners,” said Nduna.

Nduna also said that since small scale and artisanal miners are delivering much gold than the large scale to the government, the government must recognise and support them, by persecuting them, the country is biting the hand that feeds it.

“Let us recognise artisanal miners, we are biting the hand that feeds us,” he said.

The Chegutu MP also encouraged the government to offer loans to these miners.

“The gold they’re delivering to fidelity should be security,” Nduna said.