MINING – Shabanie and Mashaba Mines (SMM): It’s all about the money

22 Mar, 2015 - 00:03 0 Views

The Sunday Mail

The 1979 commissioned Shabanie Mine main asbestos milling plant, which at one time was the tallest building in the country. The 17 th floor milling plant witnessed a surge in production of silky asbestos fibre - Picture by Kudakwashe Hunda

The 1979 commissioned Shabanie Mine main asbestos milling plant, which at one time was the tallest building in the country. The 17 th floor milling plant witnessed a surge in production of silky asbestos fibre – Picture by Kudakwashe Hunda

At one time, Shabanie Mine in Zvishavane and Gaths’ Mine in Mashava were the world’s sixth largest asbestos-producing entities, with annual output exceeding 140 000 tonnes.

However, deep-seated problems have stalled resuscitation of Shabanie Mashaba Mines.

At its peak, the asbestos producing giant employed 5 000 workers, with over 100 000 families from the six constituencies surrounding them feeding off the mines.

It is estimated that close to 200 downstream and upstream industries benefitted from the full-scale operations of the mines, then.

As the two mines continue sliding, authorities in charge of the operations seem to be failing to find a concrete solution to permanently deal with recurring problems.

As viability problems mounted around mid-2005, Government intervened and took over the operational administration of the two mining entities.

Government appointed AMG Global Chartered Accountants senior partner Afaras Gwaradzimba to administer operations until a time when the two mines were able to stand on their own.

However, many people believe that instead of proffering remedial solutions, Gwaradzimba, who is currently the judicial management authority in charge of SMM Holdings, is dragging the two mines from the ICU to the morgue.

He vehemently denies this.

PICTURES: Shabanie And Mashaba Mines Pictorial

“I managed to execute my mandate as per dictates of my initial assignment,” he asserts.

“I forwarded what I thought needed to be done for the company to get back on its feet to the relevant authorities, which in this case is the Ministry of Mines.

“Go to the minister, he has all the information that you need pertaining to the viability and the turnaround strategy which we have submitted to his office.”

But some senior staff at SMM argue that Gwaradzimba’s reign has simply not worked.

They argue that it was during his reign that the two mines’ huge debt, now running into several millions, spiralled.

It is the same time, they also allege, a now demoralised workforce started going for months without being remunerated.

“It is again the same time major mining equipment and infrastructure started an uninhibited wear and tear process without being replaced precipitating the companies’ downfall,” said a manager who requested not to be named.

The Sunday Mail Extra has it on good authority that equipment worth millions is trapped underground by rising water levels as a result of poor power supply because the electricity bills have not been paid. Gwaradzimba acknowledges that SMM has deep-seated problems, but puts the blame squarely on the shoulders of all stakeholders.

“It is common knowledge and I have said it before that everyone from the bottom drawer up to the top contributed towards the problems currently obtaining at the mines,” he argued.

And at the end of the day, he says, what SMM really needs is a huge financial injection.

The mines remain under administration and parastatal, the Zimbabwe Mining Development Corporation (ZMDC), is in charge of the two entities.

In March 2013, ZMDC advised SMM to temporarily abandon shaft mining as a result of rising water levels, which experts said rendered underground mine navigation dangerous. And to recoup revenues from sales on the fibre-starved local market, they opted for dump reclamation, which has a yield of 10 percent – compared to a 3 percent yield from rock ore.

Both mines opted for dump reclamation, which is a process of extracting asbestos fibre from the dumps.

ZMDC then said it would pump close to US$6 million for the exercise, money which mine officials claim came in dribs and drabs.

A recent visit to the mines revealed a sad tale: rich in infrastructure and resources, but struggling to function – a beggar on a beach of gold!

The two mines possess some of the best equipment in brittle and silk fibre extraction worldwide. But it is depreciating as a result of neglect, exposure to rising water levels, weather, and the unavailability of funds for maintainence.

Member of Parliament for Masvingo West – where the chrysotile fibre-producing King Mine (Mashaba) is situated – Cde Ezra Chadzamira, says: “We know the capabilities and the potential of the two mines, hence, we have taken the matter to Parliament, where we hope the authorities will immediately rectify the anomaly.

“The community, and Zimbabwe at large, have a lot to benefit from the revival of operations at the two mines.”

He adds that the issues of workers’ welfare needs to be looked into urgently.

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