Ninety-two percent of the company is owned by a Chinese company, Sinosteel, which purchased the shares from previous owners, Zimasco Consolidated Enterprises, in 2007.
However, according to the Indigenisation and Economic Empowerment law administered by Kasukuwere, all foreign-owned firms should have a maximum 49 percent shareholding with the remainder given to local citizens.
Last year, the company management wrote to Kasukuwere asking for exemption from the law after President Robert Mugabe said firms from “friendly” countries may be excused. Cabinet shot down the proposal on the basis that the law could not be selectively applied.
Speaking at a recent mining indaba held in the city, small-scale miners asked why Kasukuwere has not demanded compliance with the law.
“The minister has been hard on other companies like Murowa and Unki Mine in the province. However, it seems Kasukuwere and Zanu (PF) have made some underhand agreement to breach the law,” said one small-scale miner, Letwin Rwodzi.
Others said it seemed the support from Zanu (PF) had made Zimasco officials arrogant.
“Zimasco owns about 65 percent of chrome claims in the great dyke through the tributary system in which they lease those mines to locals. When the government introduced chrome ore exports, they also reduced the buying price by 50 percent, knowing people would not have anywhere else to sell the ore,” said another small-scale miner, Tonderai Mhizha.
“We are being kicked out of business by Zimasco because they have stopped grading the mineral and are now purchasing at a flat fee,” said another miner.
Traditional leaders from areas where Zimasco is mining chrome were angry with the Chinese company.
“Last month we buried a child who died after being trapped in one of the pits left open years ago by Zimasco. They are not rehabilitating the areas they have mined and when we complain, they mock us,” said Chief Nhema from Shurugwi.
Zvishavane’s Chief Mapanzure said he would be happy if Zimasco shut down operations.
“If they said they are closing tomorrow, I would donate three beasts for celebrations. The company has devastated our communities,” he said.
When contacted for comment, Zimasco’s Mining Systems Manager, Sunny Kalenjeka said he had no comment.
Post published in: News