Shingirai
Vambe
Vambe
Thousands
of workers at Renco Mine in Masvingo, Dalny Mine in Chakari as well as Cam and Motor Mine in Kadoma have been told to stay home until further notice as the company faces a
bleak future due to the unavailability of foreign currency.
of workers at Renco Mine in Masvingo, Dalny Mine in Chakari as well as Cam and Motor Mine in Kadoma have been told to stay home until further notice as the company faces a
bleak future due to the unavailability of foreign currency.
The
unpaid leave follows two months of unpaid salaries after the mines’ parent
company, RioZim, said it was finding it difficult to sustain the business due
to failure to acquire money needed to buy chemicals and spares for machinery.
unpaid leave follows two months of unpaid salaries after the mines’ parent
company, RioZim, said it was finding it difficult to sustain the business due
to failure to acquire money needed to buy chemicals and spares for machinery.
In
a letter to the Dalny Mine Workers’ Committee dated October 28, RioZim chief
operating officer, Manit Shah says the three mines ‘involuntarily stopped
operations after running out of consumables and spare parts’.
a letter to the Dalny Mine Workers’ Committee dated October 28, RioZim chief
operating officer, Manit Shah says the three mines ‘involuntarily stopped
operations after running out of consumables and spare parts’.
He
goes on to blame the Reserve Bank of Zimbabwe (RBZ) for failing to release the
company’s foreign currency earnings.
goes on to blame the Reserve Bank of Zimbabwe (RBZ) for failing to release the
company’s foreign currency earnings.
“These
items are not available in RTGS and in any event when so purchased, costs up to
500% of their real price, making it impossible to acquire them either way.
items are not available in RTGS and in any event when so purchased, costs up to
500% of their real price, making it impossible to acquire them either way.
“Over
the past three months, RioZim has received only 14% of its revenue in forex
against a Reserve Bank policy of 50% direct forex retention in our nostro
account with the other 50% being accessed by application to the RBZ. The
company was thus unable to adequately purchase sufficient supplies required to
operate our mines optimally.
the past three months, RioZim has received only 14% of its revenue in forex
against a Reserve Bank policy of 50% direct forex retention in our nostro
account with the other 50% being accessed by application to the RBZ. The
company was thus unable to adequately purchase sufficient supplies required to
operate our mines optimally.
This
situation recently further deteriorated to an extent where the company received
almost zero forex in the past 9 weeks preceding the closure of the mines. Our
finance department has estimated that until September 2018, the Company lost up
to $75m as a result of these breaches by RBZ,” part of the letter reads.
situation recently further deteriorated to an extent where the company received
almost zero forex in the past 9 weeks preceding the closure of the mines. Our
finance department has estimated that until September 2018, the Company lost up
to $75m as a result of these breaches by RBZ,” part of the letter reads.
Shah
also goes on to say he could not promise when the mines will be reopened as the
situation was now beyond the company’s control.
also goes on to say he could not promise when the mines will be reopened as the
situation was now beyond the company’s control.
“We
understand that all of you want to know the exact date when the operations will
restart. We understand and respect for concern and need for certainty (sic). It
is sadly not possible to predict a date as the result of these engagements are
beyond the control of the company,” he says.
understand that all of you want to know the exact date when the operations will
restart. We understand and respect for concern and need for certainty (sic). It
is sadly not possible to predict a date as the result of these engagements are
beyond the control of the company,” he says.
RioZim
was one of the biggest producers of gold in Zimbabwe, and the company sold its
mineral to Fidelity Printers which is owned by RBZ.
was one of the biggest producers of gold in Zimbabwe, and the company sold its
mineral to Fidelity Printers which is owned by RBZ.
Prior
to the crisis, the three mines were said to be producing around 70kg of gold per
week, translating to some 280kg of gold monthly.
to the crisis, the three mines were said to be producing around 70kg of gold per
week, translating to some 280kg of gold monthly.
For
the past two months, however, they have been failing to pay salaries and this
will be the third month.
the past two months, however, they have been failing to pay salaries and this
will be the third month.
TellZim
News spoke to the Minister of Mines and Energy, Winston Chitando who admitted
that government, through RBZ had failed to remit all of the gold miner’s
foreign currency earnings.
News spoke to the Minister of Mines and Energy, Winston Chitando who admitted
that government, through RBZ had failed to remit all of the gold miner’s
foreign currency earnings.
“Today
I have started talks with RioZim. The Reserve Bank of Zimbabwe needs to come on
board and see how we can face this challenging situation. I can’t say further
than this but I can assure you that talks are in progress and very soon the
problem will be addressed,” Chitando said.
I have started talks with RioZim. The Reserve Bank of Zimbabwe needs to come on
board and see how we can face this challenging situation. I can’t say further
than this but I can assure you that talks are in progress and very soon the
problem will be addressed,” Chitando said.
Ordinary
employees at Renco Mine, however, said they suspected management of misappropriating
funds and engaging in other corrupt activities.
employees at Renco Mine, however, said they suspected management of misappropriating
funds and engaging in other corrupt activities.
“It
is only this time and this year that we have seen these machines at the plant
shut down. The plant was always up and running but we are now being told that
there are no chemicals like borax and acid,” said one employee.
is only this time and this year that we have seen these machines at the plant
shut down. The plant was always up and running but we are now being told that
there are no chemicals like borax and acid,” said one employee.
RioZim
had previously threatened to sue the RBZ over foreign currency allocations,
claiming its mines were productive and earning foreign currency most of which
was not being released to the company.
had previously threatened to sue the RBZ over foreign currency allocations,
claiming its mines were productive and earning foreign currency most of which
was not being released to the company.
