Mashava Mine resurrects:
Significant ground covered
SHABANIE Mashava Mines (SMM) Holdings will resume asbestos production at Mashava Mine by end of March this year after securing the initial funding required to restart operations, The Sunday Mail Business has gathered.
Reserve Bank of Zimbabwe chairperson Mrs Rita Likukuma said efforts are underway to help the asbestos fibre producer get access to required foreign currency for key mining equipment.
This comes as Government last year said the mothballed mine would resume production given strong demand for its high grade asbestos and the ease of restarting it.
Mashava is located in Southern Zimbabwe, 40 kilometres from Masvingo town.
It is believed that Mashava Mine sits on $1 billion worth of reserves.
Estimates indicate that revival of the closed mines could earn Zimbabwe up to $180 million in export revenue annually, given strong prices of asbestos on global markets.
Mrs Likukuma told Turnall workers last week that significant ground has been covered in making sure that Mashava resumes production early this year.
SMM, which also operates Shabanie Mine in Zvishavane, shut down mining operations in 2004 after the Government annexed assets from proprietor Mutumwa Mawere through a reconstruction order, amid indications that the mining company was State-indebted and insolvent.
The RBZ board chair Mrs Likukuma, who is also Turnall chairperson, said resumption of Mashava is critical as Turnall will stop importing asbestos fibre.
“By beginning of March this year, they must have restarted operations. During the festive holidays, they did not stop working on the plant to resume operations.
“The mine sold its properties to raise funding required to restart operations. They sold their mine houses to Great Zimbabwe University,” she said.
“That is how they mobilised funding to resume operations, but prior to that they had been completely closed and not even a single person was working there.”
Mines and Mining Development Minister Winston Chitando told Parliament last week that a de-watering process of flooded shafts was being carried out at Shabanie and Mashava Mine.
He said a total of 50 workers had been engaged to process dumps at the two mines. The minister said the number was expected to rise to 300.
Recently, the management completed a report detailing financial and technical requirements for revival of Mashava Mine.
A preliminary report by the management showed that at least $20 million is needed to restart the two mines.
When Mashava starts operating, management will then start work to reopen Shabanie Mine.
Mashava Mine has capacity to produce 75 000 tonnes after reopening. Official records also show that the mine has deposits to last at least 17 years.
Zimbabwe has for long been fighting attempts by some developed countries to ban trade in asbestos over claims of health risks.
The Government of Zimbabwe however insists that if used in a manner that controls inhalation of the fibres, white chrysotile is not only safe to use, but one of the country’s most strategic minerals in terms of its ability to bring export revenue and centrality in the provision of water, sanitation infrastructure as well as low cost housing.
At present, Turnall and other Zimbabwe asbestos material producers, which used to take up 5 to 10 percent of the fibre from SMM, import fibre from Brazil and Russia.
In 2013 alone, Turnall spent as much as $21 million dollars in imports which could have been used to create and save jobs on the local market.
Zimbabwe Stock Exchange listed Turnall has since stopped production of asbestos roofing sheets at its Harare plant, resulting in loss of jobs. Only the company’s Bulawayo plant is still producing the sheets.
With respect to labour, Zimbabwe’s asbestos mines employed well over 3 000 people who took care of about 25 000 direct dependants.
KEY forecasts project that the economy will grow by 4,5 percent, pushed by anticipated growth in key sectors of the economy.
For the Zimbabwe Stock Exchange (ZSE) listed property and construction oriented stocks, 2018 could be a promising year, thanks to various Government projects, private enterprises and the general economic outlook.
Old Mutual, Masimba, Proplastics, ZPI, Willdale, Lafarge, PPC and First Mutual Properties are poised for a good financial year with some already angling themselves to cash in on the anticipated boom in the sector.
For the commercial property sector comprising of retail and office space, as well as industrial property, growth — which is currently subdued —CHIDHAFU DHUNDA is underpinned on the general performance of the economy.
While there has been a general increase in voids in the central business district as companies opt for cheaper premises elsewhere, the anticipated growth in other key sectors of the economy such as agriculture, mining, tourism and manufacturing is expected to boost construction.
Government is working on residential and institutional property development projects. Worth mentioning is the construction of student and staff accommodation facilities in tertiary institutions as part of efforts to ease accommodation problems following the ballooning of student population.
The programme also targets to narrow other infrastructure deficiencies such as sporting and recreational facilities in tertiary institutions.
The country also expects major construction projects for commercial purposes, with ZPI working on a shopping mall in Victoria Falls while FMLP is angling for supermarket developments in Karoi, among other projects.
Diversified group, Old Mutual, is working on its small to medium enterprises mall in Harare’s central business district whose completion is expected this year. This analysts say, will boost the sector.
Additionally, there has been an increase in residential property developments pushed by the increased urban population.
The national housing backlog currently stands at 1,2 million units.
“The residential developments take centre stage largely due to the demand driven by the 1,2 million national housing backlog.
“On taking a look at all towns and cities around the country, significant housing developments are taking place,” said Real Estate Institute of Zimbabwe (REIZ) president Mr Mike Juru via email.
Brick making firm, Willdale, is already angling for the housing boom that is currently being experienced in the country.
“We are encouraged by the optimism in the construction industry that is driven by the hunger for housing, institutional and infrastructure development which we anticipate to continue in the near future. Demand for bricks for these projects will keep our order book full,” said Willdale chairman Mr Alex Jongwe.
Construction and associated industries firm, Masimba Holdings’ latest financials for the half year to June 2017 showed a 35 percent revenue jump to $11 million.
In the period, Masimba was sitting on a $38,4 million order book.
Mr Juru added that the launch of a cement making plant last year shows there is going to be major investments in the real estate and associated sectors.
Regional cement maker, PPC, which launched a new plant in March last year, said volumes for the period to June 2017 reached record highs in Zimbabwe on the back of increased activity in the construction sector, which is expected to continue this year.
Dam and road rehabilitation projects lined up in the year are expected to further increase activity in the sector.