Shurugwi – Small-scale chrome miners operating on claims owned by the Zimbabwe Mining and Smelting Company (Zimasco) and ZimAlloys, have appealed for a temporary reprieve to allow them to directly sell their ore to the government’s special purpose vehicle (SPV), as the two companies are failing to pay them on time.
By Simon Phiri
SPV is a special vehicle formed by the Mines and Mining Development ministry, Minerals and Marketing Corporation of Zimbabwe, the Zimbabwe Revenue Authority and Reserve Bank of Zimbabwe to facilitate mining transactions. The call follows a recent move by the government to bar chrome miners on tributes from selling their ore to the SPV.
The miners argued that the ban would worsen their plight, as the mining giants have not yet paid for chrome ore delivered to them.
Statistics by the Zimbabwe Miners Federation (ZMF) indicate that the majority of small-scale chrome miners, approximately 90%, are on tributes to either Zimasco or ZimAlloys, with the former reported to have 890 tribute miners.
The two companies control close to 90% of the Great Dyke, with reports stating that they are in possession of 10 000 and 6 000 claims respectively.
Zimasco paying its tribute miners $30 per tonne of raw chrome, a figure below their working costs, which range from $35 to $40, owes the small scale chrome miners payments stretching back to 10 months.
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In a recent statement, Mines and Mining Development secretary Francis Gudyanga said small-to-medium scale miners can export chrome ore through Apple Bridge Investments, an SPV, except the tribute miners on bondage.
“Small-to-medium scale miners may export their chrome ore or concentrates through Apple Bridge Investments, a special purpose vehicle. The SPV will purchase chrome ore only from current registered claim holders,” read part of the statement.
“No producers will be allowed to sell chrome ore outside the SPV except those with tribute agreements.”
ZMF spokesperson Dosman Mangisi said the development incapacitates the small scale chrome miners and called for the government to consider the chrome producers on bondage to mining companies.
“SPV can only have an impact if it comes to action that is buying of raw chrome and government should consider those on tributes by releasing the claims under Zimasco and ZimAlloys. That’s when the SPV can only have an impact,” he said.
“Thousands of small scale chrome miners on tribute to Zimasco and ZimAlloys continue to produce chrome abundantly, yet the two companies are failing to pay them in time. To make matters worse is that the small scale miners cannot sell their produce to the SPV. The small-scale miners can reach their maximum potential if they are to get better prices for their produce.”
