Business / Local
Shabanie and Mashaba mines revival in limbo
15 May 2016 at 09:29hrs | Views
EFFORTS to resume operations at Shabanie and Mashaba Mines (SMM) are in limbo as the Government continues to struggle to attract investors to inject capital for the revival of the mines which have been dormant for more than 10 years.
Mines and Mining Development Deputy Minister Fred Moyo said the low global market demand of asbestos was impeding efforts by the Government to lure investors to recapitalise SMM.
The decline in the demand of asbestos started in 1989 following its restriction and banning of its use in more than 50 countries after findings that the mineral caused health complications on people. Many scientists fear the continued use of asbestos could significantly prolong a global epidemic of asbestos-related illnesses that began when blue and brown asbestos were legal.
The World Health Organisation says white asbestos "is a known cause of human cancer," including mesothelioma.
"Recapitalising SMM seems to be a big problem largely because the market for asbestos is not looking good. We are not getting investors because most are sceptical on the performance of the market. One needs to recoup their investment after a certain period and as such there is a need for a stable market to achieve that," Dep Minister Moyo said.
However, despite its ban in a number of countries white asbestos continues to be widely used in China, India, Russia and Brazil, and many developing countries.
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 SMM.
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, the Government intervened and took over the operational administration of the two mining entities.
The Government appointed AMG Global Chartered Accountants senior partner Mr Afaras Gwaradzimba to administer operations until a time when the two mines were able to stand on their own. The mines remain under administration and parastatal, of the Zimbabwe Mining Development Corporation (ZMDC).
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 three 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.
Mines and Mining Development Deputy Minister Fred Moyo said the low global market demand of asbestos was impeding efforts by the Government to lure investors to recapitalise SMM.
The decline in the demand of asbestos started in 1989 following its restriction and banning of its use in more than 50 countries after findings that the mineral caused health complications on people. Many scientists fear the continued use of asbestos could significantly prolong a global epidemic of asbestos-related illnesses that began when blue and brown asbestos were legal.
The World Health Organisation says white asbestos "is a known cause of human cancer," including mesothelioma.
"Recapitalising SMM seems to be a big problem largely because the market for asbestos is not looking good. We are not getting investors because most are sceptical on the performance of the market. One needs to recoup their investment after a certain period and as such there is a need for a stable market to achieve that," Dep Minister Moyo said.
However, despite its ban in a number of countries white asbestos continues to be widely used in China, India, Russia and Brazil, and many developing countries.
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 SMM.
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, the Government intervened and took over the operational administration of the two mining entities.
The Government appointed AMG Global Chartered Accountants senior partner Mr Afaras Gwaradzimba to administer operations until a time when the two mines were able to stand on their own. The mines remain under administration and parastatal, of the Zimbabwe Mining Development Corporation (ZMDC).
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 three 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.
Source - Sunday News
