Andrew
Business Reporter
THE Government will look into a special mining grant encroaching into David Whitehead Textiles (DWT) premises in Chegutu to determine if there were anomalies in the issuance of the mining title.
This comes amid concerns that any mining activities within the firm’s premises in Chegutu or its vicinity could threaten the revival of the former textile giant.
Agri Value Chain Zimbabwe (AVCZ), a local company with diverse interests in agro-processing, owns about 70 percent stake of DWT, formerly owned by Lonhro Plc until 2000 when it divested from Zimbabwe.
DWT, formerly listed on the Zimbabwe Stock Exchange, stopped operations nearly a decade ago and has remained largely under the watch of judicial managers since 2005.
The collapse of the textile company, which used to produce at least 20 million metres of fabric per year and directly employed more than 3 000 people, is partly blamed on poor management.
Apart from Chegutu factory, the company also owns factories in Gweru and Kadoma.
It has since emerged that Task Mining Syndicate was recently issued a special grant (number 8934) on an area measuring 10 hectares — part of which encroaches into DWT — where it intends to conduct gold mining operations.
The special grant expires in February 2024.
Mines and Mining Development Permanent Secretary Mr Onesimo Moyo told The Sunday Mail Business on Thursday that the Government was seized with the matter and if any anomalies were identified, they would be rectified.
“I am aware of the matter. I will have to check with the province (of Mashonaland West) to see if there are any anomalies. If that is the case, then that will be rectified,” Mr Moyo said.
AVCZ is already working on reviving DWT, but the process is being slowed by pending legal issues.
Controversy over the grant in question is likely to add to already existing challenges.
In line with the goal espoused in the National Development Strategy 1 (NDS1) to develop local value chains, David Whitehead is among companies expected to drive exports of cotton value-added products.
Zimbabwe has one of the best cotton and used to produce and export fabric across the world.
Already, AVCZ is involved in cotton ginning and owns ginneries in Chegutu, Sanyati, Checheche, Rushinga and Glendale.
In Chegutu, within the vicinity of the mining grant, the company has also invested in soyabean, sunflower, canola and cotton oil extraction plant.
The company, which also owns Pure Oil Industries, the producer of ZimGold cooking oil, is in the process of commissioning another cooking oil refinery plant and soya chunks manufacturing line in Chegutu.
Being already involved in major facets of cotton value chain, the revival of David Whitehead would see the company becoming an integrated cotton value chain entity.
“The major concern is that the mining operations have the potential to interfere with AVCZ operations and this threatens the revival of David Whitehead,” said one source who preferred not to be named because of the sensitivity of the matter.
“There has been a lot happening in terms of investments by Agri Value Chain Zimbabwe, not only the textile business, but also in (cooking) oil refinery, brick manufacturing and soya chunks, and concerns are that the mining operations could threaten all these investments.”
Apart from commercial operations, the grant is within the vicinity of a school and a site where David Whitehead intends to build a hospital.
Efforts to get a comment from AVCZ proved fruitless. David Whitehead Textiles judicial manager Mr Knowledge Hofisi was not immediately available for a comment.
DWT used to play an integral part in the entire cotton value chain system in Zimbabwe.
It was incorporated in 1951 using the name David Whitehead & Sons (Rhodesia) Limited.
However, it changed its name to David Whitehead Textiles Limited in 1979.
It was registered on the Zimbabwe Stock Exchange in 1971.
In 2002, Lonrho Africa disinvested from the textile industry in Zimbabwe and a DWT management consortium comprising senior managers spearheaded the acquisition of 88 percent of the issued and fully subscribed ordinary share capital.
The acquisition was made through an investment vehicle called Guscole Investments.
Guscole Investments comprised of Edwin Chimanye, Ernest Chivaura, Ian Cripps, George Maulidi, John James Fergusson, Oliver Gwaku and Ms Daphne Ritson.
In 2005, it was suspended from the ZSE after failing to produce audited financials and regularising its shareholding structure in line with the listing requirements.
Since then, the company remain largely under judicial management.
The long hunt for an investor ended in May 2019 after AVCZ bought 51 percent of the company and subsequently bought out
some of the minority shareholders, which saw the company raising its stake to 72 percent.
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