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NewsDay

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Mining company pleads for mercy

News
A RUSSIAN gold and diamond mining company DTZ-OZGEO yesterday pleaded with Parliament to consider resuscitation of alluvial gold mining activities

A RUSSIAN gold and diamond mining company DTZ-OZGEO yesterday pleaded with Parliament to consider resuscitation of alluvial gold mining activities which were banned in the country due to challenges of massive land degradation by miners.

BY VENERANDA LANGA SENIOR PARLIAMENTARY REPORTER

The company, which came into the country courtesy of an invite by the late Vice-President Joshua Nkomo in 1994, said the ban on their alluvial gold mining operations in the Manicaland area had rendered nearly 500 employees jobless.

The company’s top managers made the plea when they appeared before the Parliamentary Portfolio Committee on Environment chaired by Zanu PF MP Annastancia Ndhlovu to speak on its Environmental Impact Assessment (EIA) compliance, as well as corporate social responsibility programmes.

DTZ-OZGEO is 60% owned by Russians (Econendra Ltd) and 40% indigenous (Development Trust of Zimbabwe). It owns an alluvial gold mine in Penhalonga and an alluvial diamond mine in Chimanimani.

MPs affiliated to the committee felt DTZ-OZGEO was more concerned about its mining activities disregarding of the environmental damage they were causing to Mutare River.

However, DTZ-OZGEO directors Ishmael Shillaer, Wellington Chando and their management team maintained they had mined on 103 hectares of land since the beginning of their operations in the country and rehabilitated 86,7 hectares of that.

“We appeal to MPs to look into the issue of the stoppage of our alluvial gold mining operations as it has adverse effects like losing revenue of between 20-30kg of gold per month,” said Shillaer.

“This also translates to a significant loss to the country’s budget through royalties, around 500 employees have been made redundant with their jobs in jeopardy, and there is loss to the economy, especially the province (Manicaland) as our procurement department has been crippled.”

He said the company faced challenges which have resulted in adjustment to its EIA plan. The Environmental Management Agency stopped its alluvial gold mining operations after directing the company to first finish rehabilitating the environment.

The company, which has several exploration projects in Mutare, Chimanimani-Save, Gweru and Angwa, claimed that on completion of exploration along river valleys they backfilled damaged areas and re-vegetated with expert advice from Agritex consultants. They also claimed they do not use any chemicals when mining, adding that rivers were temporarily diverted, but on completion of mining activities restored to their original courses.