The Sunday Mail
Kuda Bwititi
The narrative of mines that close without coming back to life has become all too familiar in Zimbabwe.
Ziscosteel, Shabanie and Mashaba Mines (SMM), Mhangura and Elvington Mines are some of the many examples of the paradox of treasures that have failed to triumph, leaving a trail of ghost settlements as well as anguish for workers whose lives are negatively affected by the shutdowns.
In 2014, Sabi Gold Mine appeared to fall into this familiar but nauseating pit after it was closed. It seemed there was no hope for revival after its closure degenerated into a calamity that saw creditors stripping the mine of virtually all its movable assets – down to even office chairs.
However, in what is turning out to be a great comeback story in Zimbabwe’s mining sector, Sabi Gold Mine has roared back to life. Like the shock delivered by a cardiac defibrillator on a hospitalised patient, Sabi has thundered back to its feet, in a development that has brought hope to hundreds of employees who are now back at work at the mine.
A visit to the mine last week revealed that Sabi is now operating at between 40 to 50 percent capacity with production pegged at about 25kg of gold a month. About 400 workers have returned to work with more expected to be employed in the near future as the mine plans to achieve full-scale production of 50kg of gold a month by next year.
The community is also abuzz with hope as the upstream and downstream industries that benefit from activities at the mine are also in line for rich pickings. One of the workers at the mine, Mike Ngwenya, personified the buoyant mood that is palpable at Sabi following its re-opening.
He said: “I started working for the mine in 2010 and have lived at the mine compound ever since. When the mine closed in 2014, the tragedy was so sudden for us. We had to look for menial jobs in Zvishavane and most turned to gold panning. “Electricity for the entire community was cut, meaning water could not be pumped to the houses. We had to rely on unprotected water sources. The area became a health hazard and social vice also became a problem. “Since the mine re-opened, things have changed for the better. We were called back to work a few months ago and things started slowly but everything is looking up now as we have started to receive full salaries and we are hopeful that things will continue to get better.”
Another worker, Godfrey Duri said, “The morale among the people is now high. The majority of workers are now back at work and we are able to fend for our families,” he said.
Mines and Mining Development Deputy Minister, Engineer Fred Moyo, said the re-opening of Sabi is a victory to the broader economy in line with Government’s objective to harvest 28 tonnes of gold in 2017. “I must point out the importance of gold to the economy because we need every ounce to reach our targets and earn foreign currency for the country. Sabi is very important because it is a mine that is owned by Government, through the ZMDC. We must lead by example and the re-opening of Sabi is a sign that we mean business and we can re-open other mines,” he said.
Eng Moyo, mining engineer by profession, said Sabi has the potential to contribute significantly to the gold sector owing to its geological position at the heart of the Great Dyke. “Sabi has one of the best geologies in the country but lacked critical timely investment in exploration and capitalisation, which we are doing now to create a world-class asset.”
Judicial manager, Dr Wesley Sibanda, said the revival of the mine had taken shape after the coming in of local investor Chandiwana Mines, who pumped in an initial $6 million for recapitalisation. “When I came in as judicial manager in 2014, the situation was dire. All movable assets had been sold by the Deputy Sheriff. All the equipment was not working. “I went all over the world, including the Middle East, Turkey and South Africa to scout for investment. Most of the companies that expressed interest wanted a 60 percent stake in the mine, which was difficult as the Mines and Mining Development Act stipulates that foreigners can only get 49 percent.
“It was then that a local entity, Chandiwana Mines came through. At first, we were skeptical but they presented their pitch to the ZMDC and proved that they have the capacity to re-open the mine. “A joint venture was then signed between ZMDC and Chandiwana, paving way for operations to commence,” he said.
Managing director of Chandiwana Mines, Mr Brian Chandiwana, said his company plans to splash more investment into the project, following early signs of success. “We have so far invested more than $6 million and we are now planning to put in another $4 million to get all the mining areas developed. Our hope is that by this time next year we will get to 100 percent capacity in terms of production
“This will also create more jobs because so far we have employed 356 people at the mine and almost 30 other people at management. At full throttle, we are hoping to employ more than 600 people at the mine and produce 50kg of gold per month.”
Mr Chandiwana said his company’s investment is proof that locals have the capacity to contribute to economic development. “We are grateful to the ZMDC and the Ministry of Mines for giving us an opportunity to invest in the mine. “When we first expressed our interest to invest, there was skepticism from a number of quarters but we are obviously pleased that we have proven ourselves and things are shaping up at the mine for the benefit of everyone and the country at large,” he said.
Asked what measures have been put in place to ensure that the mine does not shut down again, Mr Chandiwana said, “We have carried all due diligence and we have studied why the mine closed.
The previous failure was much about lack of sustainable mining and failing to develop as you mine. We are paying attention to that and our plan is to continue investing and developing as we mine.”
He said the company’s major concern is disruption of activities by illegal miners.
Deputy Minister Moyo, who is also Member of Parliament for Zvishavane-Runde, said authorities have put in place measures to control the marauding illegal miners. “As an MP for the area, I want investment and employment and I am happy that there has been progress in that regard so far. The protection of the asset from abuse by illegal miners is of utmost importance.
“We need to keep away these amakorokoza so as to avoid illicit sale of gold and improve security. I am sure that the current disturbances by illegal miners will end and the mine will succeed and take its place to develop the area and the country.”
