Govt moves to privatise ZMDC

Govt moves to privatise ZMDC
Published: 23 May 2018
GOVERNMENT has expressed concern over dysfunctional mining assets under the Zimbabwe Mining Development Corporation (ZMDC) and has opened a public tender inviting investors to take over the mines.

Mines and Mining Development Minister Winston Chitando told miners and mining experts at the just ended Chamber of Mines annual general meeting and conference in Victoria Falls last week that ZMDC has more than 20 assets countrywide, which are all dysfunctional.

He was responding to concerns by chairperson of the Parliamentary Portfolio Committee of Mines and Energy, Mr Temba Mliswa, who challenged the Minister to dissolve the ZMDC board saying it was "useless."

The minister admitted that the board had failed adding that tendering of the assets will be staggered with six already up for grabs.

"We do have a number of assets with large pieces of land where they can produce say 100kg of gold but are producing 1kg. This is an issue where we all have to interact as stakeholders.

"For example ZMDC has over 29 assets which are not functional. What Government has done is that six of the assets have been put on public tender for people to tender to buy," said Min Chitando.

He said adjudication for the first six assets was already underway after which tenders will be opened for the next batch of six. The minister said Government's vision was to have the mines under ZMDC back on their feet in the next three months.

"Whoever wants to partner ZMDC should come forward because at the end of the day we want a situation where all the mines contribute," added Min Chitando as he appealed for partnerships with the private sector.

The issue of underperforming mines was raised by participants who felt Government was favouring small scale miners at the expense of bigger mines who have a track record of production but have not been capacitated. Mines and Energy Portfolio Committee chair, Mr Mliswa, said the one size fits all approach by Government with regards to players in the mining industry was not working.

"The ZMDC board is totally useless. All gold mines are closed and that's the reason why focus is now on small scale miners because the board has failed. We should capacitate bigger mines that have a track record of production and give foreign currency to Government," said Mr Mliswa.

Miners also called on Government to remove royalties imposed on them so that they can be capacitated to improve production. Some of the assets under ZMDC include Jena Mine, Kimberwork Investment, Mineral Development, Zim-Germany Graphite, ZMDC Management Services, Protea Court, Mining Promotion, Sanyati Copper, Mhangura Smelting, Lomagundi Smelting, Merits Limited, Kamativi Tin, Kamativi Smelting, Sabi Consolidated, Sandawana Mines, Wanna, Simbao, RussZim, Russchrome, Glibal Platinum, Marange Resources, Northridge Platinum, Total Mining, Ziman Platinum, Ziman Nickel and Afri Sino Resources.

- chronicle
Tags: ZMDC,


Latest News

Latest Published Reports

Latest jobs