Minister meets SMM management
MINES and Mining Development Minister, Walter Chidhakwa, and his deputy Fred Moyo will meet Shabanie-Mashava Mines (SMM) management today to check on progress towards the revival of the defunct mines.
SMM management recently completed a report detailing financial and technical requirements needed for the revival of Shabanie Mine in Zvishavane and Gaths Mine in Mashava.
The two mines shut down mining operations in 2004 after Government annexed the assets from businessman, Mr Mutumwa Mawere, through a reconstruction order, arguing the company was indebted to the State and insolvent.
At the time of closure, the company was the world’s sixth largest asbestos producer with an annual output of 140 000 tonnes, according to the management. The two mines employed 3 000 workers.
Deputy Minister Moyo confirmed the latest development in an interview yesterday.
“SMM management and myself are briefing Minister Chidhakwa on progress made to date towards the revival of the mines. So we are approaching him on a way forward and tomorrow (today) we will be in a position to make public progress made to date,” he said.
Moyo said the revival of SMM was a positive development for the country. In September, Deputy Minister Moyo said SMM management had submitted their report on what is needed to revive the mines.
Several efforts to revive the company collapsed with the recent being the pulling out of a South African investor who had expressed interest in injecting fresh capital into the company.
According to management, the asbestos deposits at the two mines have a lifespan of 17 years when operating at full capacity. About $20 million is needed to restart the mines.
While the local asbestos industry faces competition from global producers, the quality of mineral produced by SMM is rated the best and as such, there is high demand for it.