The Sunday Mail
Mining company DTZ-OZGEO may never be allowed to resume operations along Mutare River after Environmental Management Agency (EMA) vowed to uphold the ban on alluvial mining along river beds citing environmental degradation concerns.
DTZ-OZGEO abandoned alluvial gold mining activities at its Redwing Mine in Penhalonga following the ban and EMA is adamant the ban will stand.
Although the mining company is optimistic that they will be given the green light to resume mining again, EMA argues that alluvial mining on river beds has been outlawed thereby eliminating any chance of DTZ-OZGEO being granted the licence to mine along Mutare River.
Asked on the future of DTZ- OZGEO mines in Penhalonga, EMA spokesperson Mr Steady Kangata, said no company will be allowed to mine in the rivers.
“Alluvial mining in river streams was outlawed in Zimbabwe and in the case of DTZ-OZGEO I cannot say yes, I cannot say no,” he said.
“The ban applies on river streams and disallows mechanised mining on land as well so everybody should understand that.
“Alluvial mining on the river streams causes massive pollution and land degradation, which is why it was outlawed in the country.”
With DTZ-OZGEO mainly relying on mechanised alluvial mining on river beds, Mr Kangata’s comments has all but dented the hopes of the company.
However, DTZ-OZGEO, which is currently reclaiming the river bed it worked before the ban, is still hoping to be allowed to commence operations.
“Our company presented its arguments against the suspension of mining operations to relevant government ministries such as Ministry of Environment, Water and Climate, and Mines and Mining Development and the Parliamentary Portfolio Committee on Environment, Water, Tourism and Hospitality Industry,” the mining company said in a statement.
“We hope that our plea will be heard and that together with all the relevant departments we will be able to craft the way forward, which would be beneficial to all the stakeholders.
“If the company is allowed to resume mining operations in Penhalonga, we believe, this would help prevent further degradation of the environment situation in the area and will greatly contribute to the development of the local community and the nation at large.”
DTZ-OZGEO also argues that the ban has had far-reaching consequences as it resulted in job losses and other downstream effects.
“We estimate that between October 2013 and end of 2014 the unrealised income of the company amounted to over $21 million, whilst 400-450 kg of gold could have been produced during that period.
“Thus the Treasury has lost over $1,5 million in unrealised royalties, and together with all the statutory payments and taxes which could have been collected this figure is about $3 million.
“Due to the decline in procurement by the company, the local manufacturers and suppliers of goods and services has failed to realise about $1 million annually in potential orders.”
After the mining operations in Penhalonga had been suspended the company claims to have faced acute cash-flow problems and was forced to reduce the number of employees by more than 400 people.
Research shows that alluvial gold is found beneath the surface at the bottom of a creak or stream.
Alluvial gold mining is the process of extracting gold from these creaks, rivers and streams and is generally considered to be the most environmentally friendly method of gold mining as a result of the reduced environmental impact when compared to underground mining.
Alluvial gold deposits form over time where a river runs, or has previously run through ground which is rich in gold.
The erosive power of the water removes the surrounding rock due to its comparative low density while the heavier gold resists being moved, it usually takes the form of dust, thin flakes or nuggets.
The first stage in alluvial gold mining is to take the dredged river bed material and separate the small sand faction (where the gold is found) from the larger mineral fraction.
In a typical alluvial mining process physical separation methods such as screening and gravity separation are employed to separate the gold from the mineral fraction.
Following the ban, illegal miners have used much of these basic methods to extract gold on areas that DTZ-OZGEO has previously worked.
