adminMidlands Bureau Chief
A STORM is brewing after the National Indigenisation and Economic Empowerment Board (NIEEB) ordered the Zvishavane Community Share Ownership Trust to cede half of the $10 million given to it by Mimosa Mining Company to the Mberengwa Community Share Ownership Trust.
However, the Zvishavane CSOT/S board has said it will not comply with the directive. In its letter dated 7 October written and signed by NIEEB chief executive officer, Mr Wilson Gwatiringa, NIEEB said Mimosa Mine operations were in the two districts of Zvishavane and Mberengwa, hence both districts should benefit equally from the mining company’s implementation of its indigenisation and economic empowerment plan.
“We note that the Zvishavane Community Share Ownership Trust is a beneficiary of Mimosa Mining Company’s implementation of its indigenisation and economic empowerment plan. Zvishavane Community Trust received a donation of $10 million from Mimosa Mining Company and was promised a 10 percent shareholding in the company. However, there was an oversight of the fact that part of Mimosa’s claim also falls within Mberengwa district,” read part of the letter.
Mr Gwatiringa said according to the principle of broad-based economic empowerment, no single community could claim exclusive rights and benefit over mineral resources within its area.
He said while communities were being guaranteed a share of the resources being exploited in their backyard, the position was that all Zimbabweans must benefit from these national resources through the various empowerment vehicles created.
“Ultimately, where two or more communities are endowed with natural resources exploited by one company, such communities must benefit equally from the resources.
“This is the precedent that has been set, that of broad-based empowerment wherein no one community can claim exclusive rights over natural resources.
“Such precedent has already been set as follows, the Zimplats — in the three communities of Mhondoro-Ngezi, Chegutu and Zvimba, then Lafarge — in the communities of Uzumba Maramba Pfungwe, Goromonzi and Mabvuku and lastly, Murowa Diamonds mining in Chivi and Zvishavane,” said Mr Gwatiringa.
The NIEEB boss said in light of the above position and precedent set, Mberengwa Community Share Ownership Trust must be a direct equal beneficiary of Mimosa Mining Company’s empowerment obligation.
He said the Mberengwa Community Trust had a legitimate claim to a share in economic benefits accruing from Mimosa’s exploitation of platinum resources under its claim.
“Given the foregoing, Mimosa Mining Company has been instructed to transfer half of the $10 million seed capital to Mberengwa Community Share Ownership Trust, amounting to $5 million. Ultimately, Zvishavane will remain with a balance of $1 million owing to them, having already been given $4 million by Mimosa Mining Company,” said Mr Gwatiringa.
Zvishavane CSOT/S had already outlined its plan of programmes to be implemented based on the $10 million promised to it by Mimosa Mines.
Some of the programmes like the building of new classroom blocks and renovating of old structures had already been implemented.
Chief Mapanzure, who is the chairperson of the Zvishavane CSOT/S board, confirmed receiving the NIEEB letter ordering them to cede $5million to Mberengwa district.
He, however, said the trust took a stance to defy the NIEEB directive, since it was “ill-timed”.
“We had a meeting as Zvishavane CSOT/S on Wednesday where we discussed the matter. We only received the letter three days ago. We took a position that we are going to refuse to comply with what the NIEEB letter is saying.
They (NIEEB) should have consulted us first. The board can’t take a position without engaging us. We engaged the Minister of Youth Development, Indigenisation and Empowerment, (Cde Francis Nhema) who advised us to write down our concerns and forward the letter to his office. We have since done that,” said Chief Mapanzure.
Another official of the Zvishavane Community Trust board noted that while they were willing to cede part of the money to Mberengwa, he felt the percentage prescribed by NIEEB was too high.
“Mimosa operations cover 7 000 square meters in Zvishavane while they cover only 600 square metres in Mberengwa. So this equal distribution doesn’t make sense in terms of the production of platinum at the mine. Mberengwa should get a smaller percentage proportional with their land accommodating Mimosa operations.
“If we cede 50 percent of the $10 million it then means all our plans are abandoned. We cannot bank on the $4 million since we had already spent it on other projects,” said the official who refused to be named on the basis that he was not the official spokesperson of the Zvishavane Community Share Trust.
Mr Gwatiringa refused to comment on the latest development when contacted.
“I am not commenting on that. Get in touch with the ministry,” he said.
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