SMM changes hands

Mine Holdings to the Ministry of Mines and Mining Development.
It was under the administration of the Ministry of Justice and Legal Affairs.
Mines and Mining Development Minister Obert Mpofu confirmed the development yesterday and immediately pledged to resuscitate the SMM’s fortunes.
Yesterday, Minister Mpofu had a closed-door meeting with Mr Afaras Gwaradzimba, the administrator appointed by the Ministry of Justice and Legal Affairs to manage the affairs of the mines and officials from the Zimbabwe Mining Development Corporation.
“We were receiving the management of the SMM from the administrator (Mr Gwaradzimba) following the hand over of the same by the Ministry of Justice and Legal Affairs to the Ministry of Mines and Mining Development,” Minister Mpofu said.
He said issues to do with the SMM had been quite topical in the legal system and the media.
Minister Mpofu pledged to look for a potential investor to help turnaround the fortunes of the Midlands based asbestos mines.
He said the hand over of the SMM to the Mines and Mining Development Ministry was long overdue.
“We are going to do everything possible to ensure these companies are put back into full operation as soon as possible,” Minister Mpofu said.
SMM Holdings had over 4000 employees.
Minister Mpofu said it was Government’s wish to see the workers back at work.
“We have assigned officials from the ZMDC to address issues towards opening of these companies,” he said.
Minister Mpofu pledged to work closely with the Ministry of Justice and Legal Affairs, Mr Gwaradzimba and SMM workers in resuscitating the mines.
“A few weeks ago I sent my deputy (Mr Gift Chimanikire) to Shabanie and Mashava. His report was quite disappointing. It is proper that we have now been called upon by our principals to handle the issue.
“I want to assure the public that something positive will be done to put the project back into the mainstream of mining development.
“It is very clear that issues that need to be addressed will be addressed through working together with stakeholders including the workers within the shortest period of time,” said Minister Mpofu.
Mr Chimanikire, who also attended the hand over meeting, said all legal arguments “have now been put aside.”
“The ministry is concerned with the administrative part. It is a very viable project in terms of its potential. We will look at the issue of re-capitalisation where the ZMDC is expected to come in,” he said.
Mr Chimanikire said when he visited the mines recently, he was impressed by plans management had in turning around the SMM fortunes.
“They had identified a potential investor and markets in Asia. However, the investor had withdrawn and we could smell an impediment from (Mr Mutumwa) Mawere. As of now, we are in charge and we will overcome that and attract investors,” he said.
The SMM Holdings has virtually collapsed with workers going for two years without salaries.
Shabanie Mine owes US$4 million to Zvishavane Town Council.
Government had in 2004 placed SMM Holdings – then owned by Mr Mutumwa Mawere – under reconstruction following allegations of financial irregularities.
Under the re-construction efforts, Mr Gwaradzimba headed the management of the mines.
His efforts failed to yield positive results and problems continued to mount threatening the survival of the mines.
On the other hand, Mr Mawere was battling to re-claim ownership of the mines in the courts before the Supreme Court ruled that the reconstruction laws were constitutional.