Workers Resist Betterbrands’ Re-occupation Of Redwing Mine
Over 200 Redwing Mine workers yesterday marched against judicial management attempts to reinstate Betterbrands Mining Company (BMC) under unclear circumstances.
In an unprecedented move, workers said they prefer Metallon Gold while resisting efforts by the Interim Corporate Rescue Practitioner (ICRP) Knowledge Hofisi to re-impose opaque BMC mining operations at Redwing.
In a fiery exchange with Hofisi at the premises yesterday, workers flatly told the ICRP that a tributary agreement was contrary to the standing resolution to remove Redwing Mine from the corporate rescue plan in September 2021.
Redwing workers’ legal advisor Reynos Gumbo is also in the eye of the storm, for allegedly handpicking a committee, led by Peter Zheke, which agreed to secretly grant exclusive rights to Betterbrands.
Inside sources revealed that Betterbrands legal advisor Allan Masiya, chaired the clandestine meeting on 13 January 2022, where the resolution to reinstate suspended tributary agreements were made with a compromised workers committee.
“The committee resolved that Redwing operations would commence immediately upon the handling of the mining claim and those operations would not be hindered or interrupted as a way of giving Betterbrands comfort and security for its investment,” reads part of the amended agreement.
Inside sources at the mine revealed that workers have petitioned the Supreme court to disengage from corporate rescue, whose judgment was reserved on 31 January 2022, with suspicions over the court outcome.
“Creditors agreed to cancel tributary agreements, while remaining under judicial management, and hunt for new investors. Surprisingly, we have seen the return of this dubious investor that we voted against.
“Workers are not aware of the new terms of the amended agreements with Betterbrands, which also elbowed out local partners like Prime Royal that we worked with before.
“Our fears are that the courts could be compromised because already our own legal advisor is supping with Betterbrands and the ICRP is not listening to our pleas,” said a worker who requested anonymity.
Hofisi is accused of failing to facilitate the fulfilment of an agreed dispute settlement structure where a formal investor would partner a consortium of local firms Prime Royal, Betterbrands and Properdeck.
Efforts to get a comment from ICPR, Hofisi proved fruitless at the time of going to press.
The workers, represented by the Associated Mine Workers Union (AMWU) are pressing for the implementation of the resolution to move out of judicial management, with a petition of the same submitted to the Ministry of Labour.
Initially a tributary agreement was signed between Prime Royal and Redwing mine in 2018, to empower local youths, before operations were stopped for failure to produce an Environmental Impact Assessment (EIA).
Betterbrands, took over operations until November 2021 when the tributary mining operations were halted in the wake of an exposé by Centre for Research and Development (CRD) of ongoing chaotic mining operations.
Further, a general creditors resolution passed on 9 September 2021, also voted for rescission of post commencement agreements in line with Section 144(2) of the Insolvency Act.
Civic society organisation monitoring natural resources governance say the political syndicates are circumventing the resolutions through court processes, and even forced through amendments to the initial 6 year tributary agreement.
Centre for Research and Development (CRD) , a local natural resource governance organization, has unearthed unsustainable mining operations, environmental damage and social impact in Penhalonga.
James Mupfumi, CRD director, commenting on the current fracas said the government is missing an opportunity to nip unsustainable mining operations and curb illicit trade of gold.
“What is obtaining at Redwing is the subversion of institutions meant to safeguard the rights of workers and community by politically driven cartels of mineral looters.
“Operations of gold barons at Redwing have proved beyond doubt that they are a worst case of tax evasion, mineral smuggling and human rights abuse.
“It should be in the government’s interest to allow for responsible investors with the capacity to rejuvenate production at the mine,” said Mupfumi.