The ManicaPost
Cletus Mushanawani News Editor
PRESIDENT Mnangagwa has said managers who do not practice good corporate governance at the Chiadzwa diamond mining companies risk losing their jobs.
Speaking at a ceremony to launch Anjin Diamond Mining Company’s official resumption of operations in Chiadzwa on Saturday, President Mnangagwa said Government will support the growth of the Zimbabwe Consolidated Diamond Company (ZCDC), as long its management is honest.
“My administration remains committed to give you all the necessary support and my doors are open for dialogue on how we can collectively achieve the growth trajectory we have set for the mining sector. Be rest assured that we will further implement predicable policies that are conducive for the growth of the mining sector and its entire value chain,” said the President.
“I am aware that ZCDC is 100 percent owned by Government, but Government does not have enough capital to support the development and modernisation of operations at the company.
“Its operations are constrained, but I assure you that Government will do its best to support the growth of ZCDC, as long as there is honest management in place.
“Those who fail to meet honest corporate governance will have to go.
“As you carry out your operations here, I exhort you to work hard and uphold good corporate governance,” said President Mnangagwa.
His comments come at a time when the local community is bitterly complaining about a lack of tangible corporate social responsibility programmes in Chiadzwa and Arda Transau, where some of the villagers that were displaced to pave way for mining operations were relocated to.
While diamonds extraction commenced more than a decade ago in Chiadzwa, dilapidated schools and clinics remain a common sight in the area. Water and sanitation challenges also haunt the Chiadzwa communities.
Early this year, ZCDC employees went for months without salaries, with management citing lack of diamond sells.
The Minister of State for Manicaland Provincial Affairs and Devolution, Dr Ellen Gwaradzimba stressed the need for more corporate social responsibility programmes, including drilling of boreholes as well as construction of clinics and schools.
“I urge mining firms to undertake corporate social responsibility programmes for the benefit of the local communities.
“The Arda Transau issue needs to be addressed by the companies mining here. The people affected by these mining operations need to be comfortable,” said Dr Gwaradzimba.
She went on to challenge Anjin to consider assisting local communities with water provision, infrastructural development and social services for the eradication of poverty.
“We commend Government’s move to re-launch Anjin Investment as a diamond mining company. We expect the big players in the diamond sector to plough back to the local communities through employing locals and honouring pledges to the Zimunya/Marange Community Share Ownership Trust.
“The ultimate goal is to improve the living standards and reduce poverty for the people of Marange and Manicaland as a whole,” she said.
Dr Gwaradzimba also spoke about the need for beneficiation and value addition.
“For Zimbabwe to realise its precious minerals’ potential, it is crucial to enhance exploration, promote beneficiation and value addition as well as aggressively market our products.
“Our mining resources are finite, therefore wealth generated from mineral resources should be harnessed to provide a platform for development and growth well after they are exhausted,” she said.
Before its closure four years ago, Anjin had an annual contribution of about US$200 million to the national economy.
So far the company has invested US$38 million in the resuscitation of operations and will soon employ about 500 people.
Anjin board chairman, Mr Jiang Qingde pledged his company’s support in the attainment of the US$12 billion mining economy by 2023.
“We have committed our investment in the future. All of us at Anjin will work harder to contribute to the country’s economic and social development as well as Zimbabwe’s vision of achieving a mining output of US$12 billion by 2023.
“We have invested about US$38m and employed a number of technicians to enable the restoration of equipment, the processing plant and all mining areas to meet preliminary production requirements. We have been operating for three months now and have achieved satisfactory output,” said Mr Jiang.
He added: “We have been doing our best to contribute our share to the economic and social development of Zimbabwe. We are very confident in the new dispensation and believe that a good business environment is assured.”
