BH24 Reporter

HARARE -There is need for the Gov-ernment to ensure that current mining sector legislation functions to reduce rising conflicts between mining com-panies and the communities in which these firms operate, a study has shown.

According to the Centre for Natural Resource Governance (CNRG) says there is currently a general absence of a strong mining law that protect com-munities.

"The Government has adopted an extractivist model of development whereby development is hinged upon extraction and export of minerals.

"The up-scaling of mining activities vis-à-vis the absence of a strong min-ing law, institutional framework and

political will to protect communities against displacements and other dis-advantages brought about by mining mean more communities are going to be condemned to new poverty in the coming years. This means more min-ing conflicts are lined up for Zimbabwe which may degenerate into violent con-flicts," said CNRG.

With regards to Zimbabwe's gold sec-

tor, official estimates point to the sector constituting of 500 000 involved in arti-sanal gold mining.

But CNRG in its research says it has discovered that when the small-scale gold miners discover claims they tend to be "bulldozed" by larger players who rush to obtain mining permits before them.

The CNRG has made some key recom-mendations in this respect, including: (mainly) the promulgation of a new and inclusive mining law that addresses the needs of the contemporary mining industry.

"In framing the law, Government needs to consult widely with all stake-holders who include communities, civil society and research institutions."

The body also called for the review of

the Communal Lands Act and ensure that the rights of the larger mining cor-porations do not supersede the surface lands rights of rural people living on communal lands.

On a positive note, Government is in the process of crafting a policy to decriminalise the possession of gold, a move aimed at boosting gold deliveries to Fidelity Printers and Refiners.

But more needs to be done to tap into the small-scale gold producers sector.

Meanwhile, according to projections by Finance Minister Patrick Chinamasa, the mining sector next year is expected to rebound, growing 2,4 percent "on the back of planned investments, and largely driven by strong performance of gold, chrome, coal, nickel, platinum and diamonds," he said in his 2016 National Budget statement.●

News Update as @ 1530 hours, Monday 21 December 2015

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'Mining law also should protect communities'

BH242

HARARE - Zimasco recently retrenched over 800 employees at its Mutorashanga and Kwekwe mines to owing to viability chal-lenges.

The source who requested ano-nymity told New Ziana that oper-ations in Mutorashanga had been shut down and workers had been put on unpaid leave.

“This also applies in Kwekwe, we had only two furnaces run-ning but they were shut down on December 10. All the chrome ore was shipped and the batch of ore that was in transit was cleared on Thursday (December 17).

Workers and contractors were

briefed on the development last week,” he said.

“Workers were put on unpaid leave on rotational basis, two weeks in -two weeks out or one

week in and three weeks depend-ing with the departments. How-ever tributors and contractors will continue mining since they were given the green light to mine and sell to third parties,”

said the source.

Zimasco general manager for marketing and administration, Ms Clara Sadomba could neither deny nor confirm the develop-ment.

Ms Sadomba instead referred this news agency to stories that appeared in local dailies News-day and the Herald on Thursday concerning an agreement the company signed with a South African based firm to operate its furnaces.

The $12 million lease agreement is expected to resuscitate oper-ations at the ailing company and see the 800 workers re-em-ployed.- New Ziana.●

3 NEws

Zimasco shuts down operations at mines

BH244

HARARE – National Tyre Service (NTS) slid deeper into the red for the half year ended September, 2015 after posting a net loss of $164 950 compared to $32 077 in the compar-ative period last year on the back of a slump in sales.

In the review period, total group revenue declined 10 percent to $6.7 million.

NTS chairman Mr Rutenhuro Moyo said prevailing liquidity constraints hit on consumer purchasing power resulting in a drop in sales.

“The company was slow to address costs in a declining revenue and mar-gin environment as overheads were at the same level compared to the corresponding period last year result-ing in a loss,” he said.

“Price reductions by suppliers were not sufficient enough to have an impact on contribution but negotia-tions are continuing in order to widen products offering profitable prices.”

Due to the loss position the group did not declare a dividend citing the need to re-invest in the business.

Shareholders also lost out as the group’s basic loss per share slumped to minus 0.06 from minus 0.01 last year.

Mr Moyo said a review of their branch network configuration was under-taken in order to improve accessibility and convenience to customers.

“Two new branches have been opened in Mutare central business area and in Harare in September and November respectively. More ideal sites will be targeted countrywide in an effort to improve efficiency in ser-

vice delivery,” he said.

Going forward, Mr Moyo said NTS was expecting the economic environment to remain difficult.

“Pivotal to its growth strategy the company will extend its product range to include more value offerings, manage supply chain to ensure key product availability while continuing to rationalise and improve the branch network,” he said.

Besides tyre manufacture and sales, NTS is also involved in re-tread-ing.-New Ziana●

5 NEws

NTs slips deep into the red

BH246

BH 24 Reporter

HARARE - Zimbabwe has the capacity to develop if stakeholders in the business sector exploit human capital towards developmental issues an official has said.

Speaking during the Megafest Awards recently Megafest CEO Mr Tafadzwa Mat-sika called on Zimbabwean firms to use its human capital to develop the country.

“Zimbabweans must be innovative and make money through exploiting the human capital,” he said.

“There is need to channel human capi-tal towards development of our country through use of educated Zimbabweans.”

Deputy Minister of Tourism and Hospi-

tality Industry Annastancia Ndlovu who launched the event said Zimbabweans must be innovative and be creative towards developing the country.

“We need to be creative and innovate to develop our country. Zimbabwe can only grow if we work together,” she said.

“Let us use the resourses we have in our communities to development our coun-try.

“Government is working on a number of issues to improve the ease of doing business in the country which sees Zim-babwe developing by next year,” Deputy Minister Ndlovu said.

The 2015 megafest awards were meant

to honour best companies and individu-als who performed well during the 2015 year.

“As Government we are working towards increasing efficiency at our border posts to allow the smooth flow of goods in the country and that will improve business in the country,” she said. She added that the megafest awards are critical to the business sector since it’s a platform which allows companies to compete and increasing efficiency and production.

Meanwhile Mr Clemence Masango, the principal director of Immigration received the award for outstanding male of the year, followed by Confederation of Zimbabwean Industries president and United Refineries Limited CEO Mr Busisa

Moyo and Zimra commissioner-general Mr Gershem Pasi.

In the outstanding female category, Standards Association of Zimba-bwe (SAZ) director-general, Mrs Eve Gadzikwa came first followed by MBCA managing director Dr Charity Jinya and Avenues Clinic managing director Dr Merissa Kambani in the third position.

MBCA was the outstanding organisation of the year followed by Zimnat Holdings and Lafarge Zimbabwe in second and third position respectively.

The awards are held annually as a way of recognizing, developing and promot-ing professional business acumen at all business levels.●

7 NEws

Zim should leverage on its human capital

HARARE -The mainstream industrial index opened the week stronger, bumping 0.92 (or 0,81 percent) to close at 114.13.

Giant telecoms company Econet Wireless led the risers with a $0,0175 gain to close at $0,2025, while banker CBZ

added $0,0100 to trade at $0,1100.

Conglomerate Innscor rose $0,0050 to $0,2650.

Trading in the negative terri-tory was milk processor Dair-ibord which dropped $0,0034 to settle at $0,0740 while

NicozDiamond shed $0,0001 to close at $0,0151.

The mining index was steady at 19.53 points as Bindura, Falgold, Hwange and RioZim maintained previous price levels at $0,0100, $0,0050, $0,0300 and 0,1040 in that order. - BH24 Reporter ●

ZsE8

Industrials on the up

Peace of mind is good

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MovERs CHANGE ToDAy PRICE UsC sHAKERs CHANGE ToDAy PRICE UsC

CBZ Holdings 10.00 11.00 DAIRIBORD -4.39 7.40

ECONET 9.45 20.25 NICOZDIAMOND -0.65 1.51

INNSCOR 1.92 26.50

INDEx PREvIoUs ToDAy MovE CHANGE

INDUSTRIAL 113.21 114.13 +0.92 points +0.81%

MINING 19.53 19.53 +0.00 POINTS +0.00%

9 ZsE TABlEs

ZsE

INDICEs

stock Exchange

10 DIARy oF EvENTs

The black arrow indicate level of load shedding across the country.

PowER GENERATIoN sTATs

Gen Station

21 December 15

Energy

(Megawatts)

Hwange 438 MW

Kariba 447 MW

Harare 30 MW

Munyati 17 MW

Bulawayo 23 MW

Imports 0 MW

Total 1026 Mw

THE BH24 DIARy

JoHANNEsBURG - The South Africa's rand rose slightly on Monday, with subdued trade ahead of the holidays calm-ing markets after the previous week's volatility driven by an interest rate hike in the United States and domestic political turbulence.

By 0707 GMT the rand had firmed 0,10 percent to 15,0750 per dollar, taking advantage as the greenback drifted lower.

The dollar, measured against a basket of major currencies, was a shade weaker in early trade.

Analysts said, however, the rand would continue to be vul-nerable to fundamental eco-nomic weakness going into the new year, exacerbated by an expected stronger dollar.

"Failure to address the coun-try's economic woes will keep the South African currency under severe pressure going into the new year," analysts at NKC African Economics wrote in a note.

Rand weakness has been relentless in 2015. After open-ing the year at 11,55, it weak-ened more than 30 percent

under pressure from a strong dollar, the global commodities rout, weaker growth in China, a US rate hike and domestic eco-nomic woes.

On the equities market, stocks opened slightly weaker. By

0710 GMT the Johannesburg Securities Exchange's Top-40 index was 0,1 percent lower at 43,933 points after losing 2,11 percent in the previous session.

The broader all-share index also fell 0,1 percent to 48,655

points, having dropped nearly two percent on Friday. Govern-ment bonds were mixed, with the yield on benchmark issue due in 2026 shedding 0.5 basis points to 9,35 percent. - Reu-ters●

REGIoNAl NEws 11

Rand posts modest gain, stocks ease

singapore - Brent crude prices fell to levels last seen in 2004 on Monday, dropping below the lows hit during the 2008 financial cri-sis on renewed worries over an oil glut.

Global production remains at or near record highs and new supply looms from Iran and the United States. Crude markets are also under pressure following last week's U.S. interest rate hikes and on signs of growing US stock-piles even as more drilling rigs are deployed.

Brent futures fell almost 2 per-cent and as low as $36,17 per barrel on Monday, the weakest since July 2004 and below the $36,20 mark reached on Christ-mas Eve 2008. By 0717 GMT, Brent had edged back to $36,29, still down 59 cents from their set-tlement on Friday.

U.S. West Texas Intermediate (WTI) futures fell 36 cents to $34,37 per barrel, holding near last week's 2015 lows.

Due to production far outpacing demand, the benchmarks have fallen more than two-thirds since mid-2014, when the rout began, and analysts said there was a ris-ing risk of further falls.

"The hope for a rebalancing in 2016 continues to suffer serious setbacks," Morgan Stanley said on Monday.

The bank cited US output being "more resilient than most models originally indicated", the return of at least 500 000 barrels per day (bpd) from Iran in the first quar-ter of 2016, rising Libyan produc-tion and slowing demand growth as the main reasons for a contin-uing supply glut.

Beyond the unexpected gain in the US oil rig count by 17 to 541, the strength in the US dol-lar following last week's interest

rate hike - which makes oil more expensive for countries using dif-ferent currencies - also weighed on prices.

"The resilient production data reflect rising US crude stockpiles, which have surged to 49, million barrels, the most for this time of year since 1930," ANZ bank said.

The US glut adds to global over-supply as the main producers, Russia and the Organization of the Petroleum Exporting Coun-tries (OPEC), pump hundreds of thousands of barrels of crude every day in excess of demand.

Russian production surpassed 10 million bpd, the highest since the collapse of the Soviet Union, while OPEC output also remains near record levels above 31.5 million bpd.

OPEC leader Saudi Arabia upped production from 10,226 to 10,276 million bpd between September and October.

Iraq's oil minister Adel Abdul Mahdi told Reuters over the weekend that OPEC would stick to its Dec. 4 decision to not limit production despite the drop in prices.

More oil becoming available soon will add to the glut, with Iran hoping to ramp up sales in early 2016 once sanctions against Teh-ran are lifted.

Iran will export most of its enriched uranium to Russia in coming days as it rushes to implement a nuclear deal and secure relief from international sanctions.

This comes only days after the US voted to lift a 40-year-old ban on crude exports, which could see some production released on the global market. - Reuters●

INTERNATIoNAl NEws 12

Brent crude oil falls to 2004 low as market rout heads into Christmas

By xhanti Payi

Despite his many political and philosoph-ical detractors, American diplomat and political scientist Henry Kissinger is one of the few authoritative voices on China. Hav-ing served as a key US diplomat during a time when China was reinventing herself to what she is today, Kissinger has had a perspective few other analysts have today.

His views on China are not inconsistent with the China we see, in the ways in which it responds to global debates and tensions. One need only look at the way China votes at the United Nations Security Council to understand its posture on affairs of other nations. In his book, On China, Kissinger is seemingly at pains to show that, unlike the US, China is not interested in exporting its values or owning culture and territories outside itself — that even though it may seek to be a leading civilisation, it does so not through an effort to export its values, but to sustain them even in what Kissinger himself calls the "new world order".

He recounts the China of old, reflecting that in official Chinese records, foreign envoys did not come to the imperial court to engage in negotiations or affairs of state: they came "to be transformed" by the emperor’s civilising influence.

The emperor did not hold "summit meet-ings" with other heads of state; instead, audiences with him represented the "ten-der cherishing of men from afar", who brought tribute to recognise his overlord-ship. When the Chinese court deigned to send envoys abroad, they were not dip-lomats, but "heavenly envoys" from the Celestial Court.

This may seem like an old China, but modern China presents the same posture, albeit in a different paradigm.

From sharing its strategies on growth to discussing its approaches to corruption, China is open to those who wish to dip into the reservoir, but it is not particularly keen to advertise its views or supply the world with its values and culture.

If this is accepted, it is curious that so many regarded the summit held in Sandton last week as "China’s scramble for Africa" or "China takes up from where the West left off".

The public sentiment on China reinforces two notions. First, that Africa remains a vulnerable, almost pitiful, player in trade and investment negotiations, freely open to the ravages of nefarious nations with money. Second, it represents a misread-ing of global political and economic condi-

tions as they exist today, and thus Africa’s unique position of strength.

The tensions in the Middle East, com-pounded by frosty relations between the West and many other regions, have complicated economic diplomacy a great deal. Trade and investment relations amid geopolitics make for less than optimal out-comes. It doesn’t help that Europe, and even Japan, all which have been close eco-nomic partners to China, face continually tough economic conditions.

There are really very few other places to look for China to improve her economic fortunes. China also knows that in Africa, she has an economic and diplomatic part-ner that is not too keen to impose its views on China’s social order. Not only is China looking to Africa for opportunity, it realises that it has competition, having seen African heads of state head to India to listen to that nation’s sales pitch.

The $64bn package prepared by China shows just how far it will go to promote itself and gain business advantage over anyone else. There is also no question that Africa needs China, as a market for both minerals and manufactured goods. Africa also needs Chinese expertise in industry and infrastructural development.

Most of all — as China well knows — Africa needs Chinese money to plug the vast financial deficit preventing Africa from building the infrastructure that is so critical for growth and development.

So, leaving behind the old talk of colonisa-tion and exploitation, Africa has one thing to do: recognise its power to negotiate for a good and sustainable deal. That must be preceded by Africa’s extensive plan and thus outline of its own need and bargaining chips.

While visiting Mexico, another develop-ing nation, in 2009, Chinese president Xi Jinping made remarks that are important to consider if we are to be comfortable in dealing with China: "Some foreigners with full bellies and nothing better to (do) engage in finger pointing at us. First, China does not export revolution; second, it does not export famine and poverty; and third, it does not mess around with you. So what else is there to say?"

The year is 2015. The question cannot be whether China wants to exploit Africa, but how Africa can benefit itself from relating with the world’s second-largest economy, which has come knocking at her door. - BDlive●

13 analysis13 ANAlysIs

No doubt that Africa needs what China offers