adminMidlands Bureau Chief
THE Zvishavane Community Share Ownership Trust/Scheme is willing to surrender only 11 percent of the $10 million from Mimosa Mine due to the trust to the Mberengwa CSOT/S, acting against the National Indigenisation and Economic Empowerment Board (NIEEB) directive to surrender 50 percent of the money.
NIEEB had, in its letter dated 7 October and written by its chief executive officer, Mr Wilson Gwatiringa, ordered Zvishavane CSOT/S to give Mberengwa $5 million.
However, the Zvishavane CSOT/S is arguing that Mimosa Mine operations only cover 11 percent of the land on which the giant platinum mine conducts its operations in Mberengwa with the remaining 89 percent of the land being in Zvishavane district.
They said the sharing of the $10 million from Mimosa Mine should be proportional to the size of the land occupied by the mine in each district.
The Zvishavane CSOT/S has since formally submitted its complaint to NIEEB, indicating that they now wanted their share certificate and to sit on the Mimosa Mine Board.
In a letter dated 10 October, written and signed by Chief Mapanzure of Zvishavane, the Trust board said NIEEB’s decision was “unfair” and “illegally wrong”.
The Zvishavane CSOT/S board said NIEEB should have consulted them first before announcing the decision.
“We refer … your letter dated 7th of October, 2013 which we received late on 8 October. Please be advised that we read and understood your letter and noted the seriousness of the issue raised.
“It has been noted with displeasure that your letter is in summary just a communication to us of a decision that your office has already taken to the effect that of the $10 million due to us from Mimosa Mining Co (Pvt) Ltd in terms of the relevant Deed of Trust, a sum of $5 million will now be given to Mberengwa CSOT/S. The purported rationale behind that decision has also been understood.
“The position of this Board of Trustees is that we are strongly opposed to the decision and do not expect the said sum of $5 million to be channelled to the said Mberengwa CSOT/S,” read part of Chief Mapanzure’s letter.
The Zvishavane CSOT/S also contested NIEEB’s statement that the $10m million was a donation from Mimosa Mine.
They said the correct position was the platinum mine had a legal obligation to pay Zvishavane CSOT/S in line with the Indigenisation and Economic Empowerment laws of the country.
“It is also a misrepresentation that we were promised 10 percent shareholding in the company. The correct position is that we were actually granted it….
“What is only outstanding is the Share Certificate and the appointment of one of us to sit on the Mimosa Mine Board.
“We know fully well our rights and entitlements as spelt out in the relevant laws and emphasised by his Excellency, President Mugabe,” read the letter.
The Zvishavane CSOT/S said NIEEB only entertained Mberengwa CSOT/S concerns on an issue that affected Zvishavane people, denying them a chance to make their representations.
They said NIEEB should set aside its decision or even nullify it, given the above facts.
The Zvishavane CSOT/S board argued that Mimosa Mine mineral resource covered a hectarage of 6 591 platinum deposits and only 785 ha were in Mberengwa District.
“It is our position that this decision should be set aside or nullified even on this ground alone without even going to the merits and demerits of it. … with all due respect, there cannot be a reasonable justification for imposing that the $5 million should be given to Mberengwa.
“There is clearly no fair basis for directing that the $10 million be shared equally. Simple mathematics shows us that Mberengwa would be entitled only about 11 percent of the $10 million.
“Also, we know that Mimosa Mine have no plans to mine from the Mberengwa side anytime soon. The real mining activity is on our side.
“We are the ones who are feeling the effects of their blasting, their holes (pits), the noise, dust, our lost grazing fields and arable land. The same is not the position with the Mberengwa people,” read the letter.
Chief Mapanzure concluded by expressing his board’s willingness to meet all key players who could help solve the matter amicably.
The letter was copied to Mimosa Mines, NIEEB, and the Ministry. Mr Gwatiringa refused to comment on the subject referring all questions to the Ministry of Youth, Indigenisation and Economic Empowerment.
Minister Francis Nhema, however, said he was still to see the Zvishavane CSOT/S letter. He said he would only take a position after receiving and reading the letter.
“We have not seen any representation from Zvishavane CSOT/S. We will only give a ruling on the matter then once we receive their letter,” said Cde Nhema.
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