Harare — SHABANIE and Mashava Mines have essentially collapsed amid concerns that the two underground asbestos mines are no longer safe to work in.
The mines are under SMM Holdings, previously owned by South Africa-based businessman Mutumwa Mawere and now under the administration of accountant Mr Arafas Gwaradzimba of AMG Global.
Both mines, the only producers of fibre material that makes asbestos in the country, recently stopped operations due to flooding resulting from power disconnections and perennial load shedding.
Mashava or King Mine, a section of Gaths Mine, is flooded after Zesa Holdings switched off power to the mine in January. The mine is about 800 metres deep and the level of water has been rising since January 7. Mine workers said water has reached about 500 metres or the 10th level where most of the underground equipment is stationed.
It is the same level where machinery and a workshop for servicing the machinery are located. Ventilation pipes and electric motors are also at that level.
The floods submerged equipment including transformers, conveyor belts, pumps, load hauling machines, crushers and rock breakers.
Several millions of dollars are required for repairs and replacements. King Mine has for long been experiencing shortages of critical spare parts.
About 600 workers, most of them now "destitute", have been sent on unpaid leave. They are now doing part time jobs in the nearby farms.
The mine residential areas do not have electricity and water supplies have become so erratic that some employees are now resorting to unprotected water sources.
There are fears there could be an outbreak of cholera and other water bone diseases.
"The company was given a grace period by Zesa to take the underground equipment to surface but chose to continue with production," said one source.
"Power, has however been restored, but only to run the water pumps to dewater the mines," added the source.
King Mine workers pointed out that even if water was scooped out of the mine, production would not last long because "there is no mine development taking place." Mine development is exploring new mine shafts.
At Shabanie, the larger of the two mines, production has also grounded to a halt. The mine employs just over 1 000 workers.
On Tuesday afternoon, Zesa switched off the mine including its eight residential areas. Shabanie was already flooded due to perennial power cuts.
Shabanie Mine shafts are also in a bad state. Three serious accidents recently occurred at the mine.
One worker is reported to have lost both legs in the accident.
Such circumstances require a temporary suspension of operations to pave way for safety inspection. But this procedure was not followed.
The Shabanie Mines captain was also last week suspended after another serious accident occurred but this was not reported to mine inspectors.
The cage, which takes workers in and out of the underground shafts, is said to be operating without guiding wheels. Safety issues were also among the reasons why the workers staged a job action late last year.
"Safety issues are now of major concern. We have raised these issues but we are threatened. This is one of the reasons why we went on strike last year," said one mine who identified himself as Madzonga.
Workers decided to stage a job action because the management has not been forthcoming to give reasons why it had been failing to pay salaries.
Three people were shot during the demonstrations. Thirty people were arrested on public violence charges.
Ironically, one of the reasons why the company was placed under administration was because workers had gone for two months without pay.
African Resources Limited and SMM Holdings are challenging the Reconstruction.
Workers interviewed by this newspaper expressed disappointment over the reconstruction process, saying they were now in a worse-off situation than before reconstruction. They were also "never" consulted.
"What pains us most is that we are not getting salaries yet the person who was appointed to turnaround this company gets his money," said a worker who has been working for the company since 1978.
Mr Gwaradzimba is entitled to seven percent of gross profit and is empowered, under the Reconstruction Act, to sell assets if that profit is not realised.
Workers also believe it was unfair considering that Mr Mawere had offered them "certain guarantees" including ceding 20 percent shareholding to workers. All permanent workers had also been promised houses
"Workers are bitter about this reconstruction because nobody explained what was going to become of them in terms of houses and the promised shareholding," SMM legal counsel Mr Tichaona Chivasa said.
Ownership of houses has since changed under unclear circumstances.
The properties are now reportedly in the hands of a company called Properties and Amenities (Private) Limited.
Mr Chivasa said they had lodged a joinda application in a case in which ARL and SMM Holdings are challenging the Reconstruction, showing "substantial" interest of workers in the outcome of the matter.
"Workers want the Supreme Court to make a declaration of what the constitutional guarantees that are there in respect of rights of workers under a reconstruction set up such as the SMM," said Mr Chivasa.
Shabanie and Mashava used to produce about 180 000 tonnes of fibre that makes asbestos per year but its capacity has declined to levels beyond 10 percent.
SMM Holdings was placed under the administration of Mr Gwaradzimba in 2004 under the State Indebted and Insolvency Company Act.
In his advisory brief to President Mugabe last year, Reserve Bank of Zimbabwe Governor, Dr Gideon Gono pointed out that SMM was not a State Indebted and Insolvent Company. The central bank chief also dropped allegations of Exchange Control related charges against SMM.
Dr Gono said SMM Holdings was indebted to the RBZ, Zesa and the National Social Security Authority and these did not qualify as state funds.
Meanwhile experts have said that there is need to re-align the administrators' interests with those of the company, workers and stakeholders.
They said there was also need to carry out a study to establish the success rate of administrators or judicial managers over the past years.
Mr Gwaradzimba recently admitted that the reconstruction process did not succeed because the company failed to secure a partner to recapitalise the business. He said US$65 million is required.
