The Ministry of Justice and Legal Affairs has transferred the administration of Shabani Mashava Mines Holdings (SMM) over to the Ministry of Mines and Mining Development.The transfer means that the Ministry of Mines and Mining Development will now oversee the reconstruction of the embattled mining firm by addressing operational challenges and identifying potential investors.
The investment arm of the Ministry of Mines and Mining Development, the Zimbabwe Mining Development Corporation (ZMDC) is expected to play a leading role in recapitalising SMM Holdings.
Emerging from a meeting with SMM Holdings Administrator, Mr. Afaras Gwaradzimba, Mines and Mining Development Minister, Cde Obert Mpofu said his Ministry has since assigned the ZMDC to quickly address issues affecting the asbestos mining company, adding that close co-operation will continue with the Justice Ministry.
â€œThe Ministry of Justice (and Legal Affairs) has now handed over the organisation (SMM) to the Ministry of Mines to address and manage through perhaps the identification of potential investors towards its full reconstruction. Representatives from ZMDC and the administrator himself seemed confident about the success of this project which I think was long overdue. We are now going to do our best to ensure SMM is back in operation,â€ said Cde Mpofu.
The Deputy Minister of Mines and Mining Development, Mr. Gift Chimanikire said SMM is a viable venture and the Ministry will deal with administrative issues setting aside legal arguments.
The Ministry recently undertook a physical tour of SMM to assess the physical state of the project where it was noted that workers have not received salaries for over two years and the operation is facing power challenges due to debts owed to Zesa Holdings.
The prospects for the revival of SMM are great with possible markets for white asbestos being identified in East Asia.