Commercial Farmers' Union of Zimbabwe

Commercial Farmers' Union of Zimbabwe

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Government demands 1 000ha from Zimasco

Government demands 1 000ha from Zimasco

Minister of Mines, Walter Chidhakwa

Mines and Mining Development Minister, Walter Chidhakwa.

ZIMASCO is to release a further 1 000 hectares (ha) of chrome claims to government after failing to comply with a State directive last year to cede half of its 49 000ha resource to the State, official reports indicated this week.
The released land was earmarked for distribution to indigenous Zimbabweans in line with directives by the Ministry of Mines and Mining Development to broaden the participation of locals in the chrome sub sector.
Writing in an internal publication, Mines and Mining Development Minister, Walter Chidhakwa, said Zimasco last year released 21 270ha out of the 22 270ha that it had been asked to release to the State, which was 1 000ha less.
He said government had asked Zimasco to release more land.
Zimasco, which is controlled by Chinese investors, together with ZimAlloys, controlled 80 percent of the country’s chrome reserves before the surrender of ground by Zimasco.
Under the Indigenisation and Economic Empowerment policy, government said it wanted to make sure that the ceded claims would be handed over to small scale miners, special interest groups and individuals.
War veterans, women’s groups and youths would be among the beneficiaries.
A total of 22 746ha would be required, according to Chidhakwa, who wrote in a special chrome edition of Mineral Beneficiation & Value Addition for the first quarter of 2017.
Zimasco controlled 49 000ha of claims across the country before giving up some of its claims.
Discussions with the two ferrochrome giants, which are said to be holding more ground than what their 50-year operation plans are projecting, have been ongoing for the past two years.
But while Zimasco agreed to release claims, Chidhakwa said negotiations with ZimAlloys, a firm that is controlled by Zimbabwean investors, were still ongoing.
“Discussions with Zimasco are complete as all the final agreements have been reached and 50 percent of their claims have been handed over to government,” he said.
“It is noted that this figure is 1 000 hectares short of the original 22 270ha earmarked for distribution. This is being addressed through the ground truthing exercise…to ensure that Zimasco complies with the agreed relinquishment of 50 percent of its total claims. In view of this, government is going to distribute the chrome mining claims released by Zimasco. Zimasco released 21 270ha. In Mashonaland Central it released (9 643 ha), Mashonaland West (2 390ha), Midlands (8 563ha) and Masvingo (674ha).
“However, discussions with ZimAlloys are still ongoing and we anticipate reaching an agreement shortly,” he added.
Chidhakwa said Zimbabwe had the second largest chrome deposits in the world. However, for a very long time, over 80 percent of these deposits had been held by Zimasco and ZimAlloys.
“The Zimbabwean nationals interested in the chrome industry participated only as tributors to these two multinational companies and other small companies that have recently entered the sub sector. In order to broaden the indigenisation in the chrome sector and empowering Zimbabwean citizens to create more employment, the government directed that 50 percent of the claims held by Zimasco and ZimAlloys must be released and made available to other players to ensure wider inclusion of indigenous players in the chrome sector,” he said.
He said the Ministry of Mines and Mining Development had therefore been discussing with Zimasco and ZimAlloys for the release of some of their claims.
“Government also took note of the need to generate much needed revenue for the fiscus by putting idle claims to use after noting that Zimasco and ZimAlloys, from their 50-year plans, possessed vast tracts of land they would still have in their possession,” said Chidhakwa.
The new report comes as Midlands Provincial Affairs Minister, Jason Machaya, has said the bulk of the claims ceded by Zimasco to the State were exhausted.
He promised to take action against the mining giant. 
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