TINASHE MAKICHI
A section of small scale chrome miners has raised concern over the $50 million Moti Group chrome acquisition deal running under Zimbabwe Motivation Mining (ZMM) citing that there is a suspected secretive move by the Zunaid Moti owned firm to indirectly grab claims belonging to small scale chrome miners.
This comes after the Moti Group and its local partners, Sakunda Holdings this year struck a 20 year mining deal worth $50 million with Government of Zimbabwe aimed at formalising and strengthening the small-scale mining sector in the country.
ZMM is a development programme that the Moti Group has proposed to strengthen small scale miners, with Government coming in as partner in a private-public partnership arrangement.
According to the Moti Group, ZMM has already agreed an initial off-take allocation of $50 million. The agreement is for a period of 20 years to ensure sustainable growth in the Zimbabwean Gross Domestic Product (GDP).
Small scale chrome miners who requested anonymity told Business Times there is lack of clarity around the Moti deal and there is a possibility the group is looking at consolidating its footprint in the chrome sector through aggressively grabbing claims belonging to small players.
“As small scale chrome miners we are worried about the Motivation Mining deal. We are of the opinion that the Moti Group is looking at indirectly buying off our claims on the pretext of just purchasing chrome from us.
“This is deduced from the fact that when we went to meet Moti Group for the first time we were referred to meet the mergers and acquisitions department of the Moti Group instead of the retail department which focuses on the buying of minerals from the miners. Such an arrangement has raised massive concerns from us as small scale chrome miners in Zimbabwe,” said some of small scale chrome miners.
In an emailed response to the concerns raised by miners, the Moti Group said the suggestion that they are trying to indirectly purchase claims is incorrect and the group will provide a dedicated contact point for miners through a retail team so that there won’t be any confusion about which department to speak to.
“Any suggestion that we are indirectly purchasing claims is incorrect – Zimbabwe Motivation Mining exists to support the livelihoods of miners, not take them away. When the programme launches, our focus will be to purchase lumpy chrome direct from miners, give them a stable and fair price and a certain route to market.
“As soon as the programme is up and running, we will provide a dedicated contact point for miners through our Retail Team so there won’t be any confusion about which department to speak to.
This dedicated team will be responsible for answering questions, onboarding new participants, purchasing lumpy chrome, and providing miners with tools, equipment and training to help assist them in their work,” said the Moti Group.
The group also highlighted that the feedback from miners on the pilot scheme had been positive and the programme will be supervised by the Ministry of Mines and Mining Development where they have already agreed a substantial initial off-take allocation.
Under the Motivation Mining programme, which is utilising existing infrastructure and network of African Chrome Fields which is owned by the Moti Group, the programme will initially work with small-scale chrome miners before expanding into gold and lithium beneficiation.
The group will also offer sustainable support once potential participants have been identified by ZMM. The programme will create a report for each. Reports will evaluate and categorise miners’ needs, create an individual development plan, make provision for an annual assessment and then allocate resources.
According to the Moti Group, information gathered on all potential participants will be shared with Government to help improve the understanding and oversight of the country’s small-scale operations.
All miners included in the ZMM programme will have goals set through their individual development plan. Points will be awarded for successfully meeting targets, which make miners eligible for greater access to funding.
ZMM will utilise existing infrastructure and technology to help improve the efficiency and safety of small-scale mining operations. By communicating with miners through WhatsApp, collection times for products can be arranged and receipts provided in digital and paper formats.”
To improve safety, security and reach, ZMM will make use of satellite offices at which product can be deposited. ZMM will match the grade of each product with available market prices and will provide miners with 50 percent payment through the internal Real Time Gross Settlement (RTGS) platform and 50 percent through United States Dollar.
