Malawi plans to legalise charcoal production
By Andrew Nyayah, Nyasa Times
August 25, 2011
The Malawi Forest Governance Learning Group (FGLG) plans to secure government’s commitment to sustainable charcoal production and facilitate the spread of legal licensing of charcoal by supporting pilot projects in Zomba and other districts, it has been established.
Apart from that the group also plans to build government, citizen and civil society uses of legal tools, such as procurement policies for only buying sustainable licensed charcoal.
The FGLG teams bring together representatives of communities, governments, civil society organisations, businesses and the media, to explore the drivers of poor forest governance and to influence policymaking.
The revelations are contained in report released on Thursday, titled “Plans to protect forests could do more harm than good unless power is in local hands” by the International Institute for Environment and Development (IIED).
Charcoal production to be legalised
The report highlights success stories at the national level, in which FGLG teams have influenced policy processes to promote outcomes that benefit forest-dependent communities who have been marginalised.
It draws on the work of Forest Governance Learning Group (FGLG) teams in ten nations in Africa and Asia to promote decision making about forests that is fair and sustainable.
The Malawi group also aims to pilot the formalisation at district level of the community bylaws developed in Ntcheu, and use film and other media products to create greater awareness of community forest management rights and enterprise rights.
“FGLG-Malawi’s efforts to work with FAO and others in scaling up the community management at Ntcheu were modified in the light of the potentially substantial resources and attention which might be focused on charcoal production if a Millennium Challenge Corporation initiative with the government can be established,” said the report’s authors James Mayers and Leianne Rolington of IIED.
Labels: COAL, MALAWI
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Zim, S. Africa mining firms at loggerheads
Wednesday, 24 August 2011 02:00
Farirai Machivenyika Business Reporter
A South African company is claiming a controlling stake in a joint coal-mining venture it entered into with a local mining entity despite the cancellation of the initial agreement after it failed to meet its contractual obligations.
Lontoh Coal entered into an agreement with local mining company Liberation Mining on May 10 last year under which it would get a 51 percent stake in Lubimbi coalfields in Matabeleland North, on condition it coughed up US$100 million in capital injection.
Liberation Mining had been granted a special grant to exploit coal and coalbed methane gas in 2006 and sought partners to kickstart the project.
Documents at hand show that Lontoh chief executive Mr Tshepo Kgadima undertook to transfer the said funds within 14 days at a meeting with Liberation Mining managing director Renoir Robinson and Youth Development and Indigenisation and Empowerment Minister Saviour Kasukuwere sometime in July last year.
The deal was also subject to meeting local statutory requirements with the Reserve Bank of Zimbabwe, the Ministry of Youth Development, Indigenisation and Empowerment, the Zimbabwe Investment
Authority and any other obligations in South Africa.
Documents at hand, however, show that Lontoh failed to meet requirements to enable it to acquire the 51 percent stake.
In a letter to Liberation Mining on September 15 last year, Minister Kasukuwere notified the company's managing director that the deal would not be approved since Lontoh had failed to meet its obligations for capital injection.
"I, however, agreed to approve your request to transfer 51 percent of your equity to Lontoh Coal subject to providing an acceptable guarantee that it would invest US$100 million into your project.
"This was the level of foreign direct investment stated in your correspondence and this was confirmed by the CEO of Lontoh Coal, who assured me that he was prepared to transfer the funds to Zimbabwe.
"Several weeks have lapsed since that meeting and to date I have not received the required guarantee nor have I received any further correspondence from either yourselves or Lontoh Coal," reads part of the letter.
Minister Kasukuwere added he was not prepared to authorise the 51 percent transfer if Lontoh Coal did not provide the guarantees within seven days and advised Liberation Mining to seek alternative investors.
Liberation Mining then cancelled the agreements on October 12, 2010, through their lawyers Bruce Mujeyi Attorneys.
However, the South African company still claims ownership of the project as indicated in a presentation at the African Mining Network in Johannesburg meeting on August 11. In an interview yesterday, Mr Robinson dismissed these claims.
"Such claim is deliberately misleading and is made by a person who knows that it is false. Any person who deals with Lontoh on that basis does that at his or her own peril," he said.
Matabeleland North has vast coal and coal methane gas reserves that have been slated as part of Zimbabwe's solution to its energy problems.
The operations at Lubimbi are expected to create thousands of jobs and downstream employment once fully operational.
Labels: COAL, SAVIOUR KASUKUWERE
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South Africa coal miners start massive strike
By Reuters
Mon 25 July 2011, 15:40 CAT
ABOUT 150,000 South African coal workers went on strike on Monday seeking 14 percent wage increases, but power utility Eskom said the stoppage would not have an immediate impact on plants providing electricity to Africa's largest economy. Hundreds of thousands of workers across the country have downed tools in recent weeks, or are threatening to do so, seeking raises double or triple the 5 percent inflation rate in the mid-year bargaining session known locally as "strike season".
State-run Eskom , which relies on coal for most of its power generation, said the latest strike would only have an impact if it became protracted.
"We've got on average 38 days of coal stockpiles at the power stations," spokesman Tony Stott said.
"If the strikes goes for a long time and demand goes up due to cold weather, it would put the system under severe strain."
Lesiba Seshoka, spokesman for the powerful National Union of Mineworkers (NUM), said employers have offered pay rises of 7 to 8.5 percent. The union said there were currently no plans for fresh talks.
Eskom has been under pressure to build new plants to avoid a repeat of the power shortage that brought the economy to its knees in 2008, forcing mines and other industries to shut down for days and costing the country billions of dollars in lost output.
Eskom plans steep increases in electricity prices to pay for much-needed new power stations, adding to inflationary pressures and taking more money out of middle-class paychecks.
The Chamber of Mines is negotiating on behalf of several coal mining groups, including Anglo Thermal Coal SA, Exxaro, Optimum Coal and Xstrata Coal.
Eskom is facing political pressure to settle with workers. The country's ruling African National Congress is allied with organised labour and wants to placate its millions of voters.
Employers over the past two years have struck wage deals averaging about 8 percent, a survey said, with many firms seeing the above-inflation settlements as a necessary cost of doing business in South Africa. They have also slashed jobs over the period to make up for the higher personnel costs.
Strikes typically last a few weeks, slowing production but not causing any major harm to the economy.
Eskom is also facing strike threats from NUM members among its own workforce seeking a 16 percent wage increase.
In another dispute, the NUM is also seeking a 14 percent wage raise from gold mining companies. The chamber of mines says AngloGold and Gold Fields have offered 5 to 5.5 percent while Harmony and junior minor Rand Uranium has offered 4.8 to 5.3 percent.
The union held talks with gold mining companies on Monday.
Economists have said wage settlements well above inflation hurt the country's competitiveness and long-term outlook by driving up the costs for a labour force already more expensive than those in other emerging markets and far less efficient.
There have also been worries work stoppages could hit the country's platinum sector. South Africa is the world's biggest producer of the precious metal used in jewelry and catalytic converters for cars.
In a separate strike stretching into its third week, the union that represents about 70,000 fuel, paper and chemical workers said talks with employers were deadlocked.
The CEPPWAWU union on Friday lowered its pay demand to a 9.5 percent increase from 13 percent. Employers have offered 8 percent.
Labels: COAL, ESCOM, MINING, SOUTH AFRICA, STRIKE
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DIY coal fires up villagers
By Story by Bivan Saluseki and picture by Eddie Mwanaleza
Sun 21 Nov. 2010, 04:00 CAT
IN NKANDABBWE, local villagers have taken matters into their own hands and started mining coal after the government closed an open-pit five kilometres west of Sinazeze because of difficulty controlling underground water levels.
Flooding that followed the closure formed a 200 metre-deep dam now used by the local community as it digs up the coal. More than 32 villagers have mining licences, but it is very dangerous work, involving ferrying the coal across the Nkandabbwe dam in dug-out canoes.
Amos Syamuzamba, Mabvuto Simubala, Nikita Sandabwe are just three of the local villagers who have taken up position around the area.
Syamuzamba sells a bag of coal for K1,000, although if he is really desperate for money, he’ll let one go for K500.
Filling a truck – once a week – is a major problem, although villagers have battled to overcome the difficulties by working long hours.
“We start work around 7am and can go up to 14 hours before we take a break,” he said, while regaining energy from glucose and a cake.
Simubala said that although the community around Nkandabbwe owned the mine, villagers had to pay to dig for coal. “We pay K700,000 per month to government for the mining licences.”
Diggers shared any profits, with a truck of coal fetching around K4.5 million.
Sandabwe said that although the villagers were not mining professionals, they knew genuine coal because of its weight.
“The real coal is heavier than the other stuff,” he said.
Sandabwe said he wouldn’t work in any other mine because he was scared of tunnels.
“It’s tough work here, but we are happy,” he added.
Area councillor Partson Mangunje said the government abandoned the mine because it became flooded, with production being moved to Maamba.
But he said the quality of coal in Nkandabbwe was of a very high grade and villagers didn’tneed to wash it to remove ash.
“It is fine coal, ready to light up industries’ machines,” he said, adding that the quality attracted a lot of business.
And Nkandabbwe villagers are lucky, spared the hard work of removing what experts in the coal mining industry call “overburden”.
Overburden is the top layer that covers coal and must be removed before anyone operating an excavator in an open pit or working in an underground mine can extract it. It means that Nkandabbwe people only have to use picks and shovels to dig it out.
Although mining is generally regarded as a man’s job, women are involved in Nkandabbwe.
Working alongside their male counterparts, they carry the coal to the truck site on their heads.
There is no battle of the sexes when it comes to survival.
Labels: COAL
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Hwange turns back to old mines
Business Reporter/New Ziana
HWANGE Colliery Company is considering to re-start coal extraction at some of its disused mines with approximate reserves of 40 million tonnes. Managing director Mr Fred Moyo said that two companies, including a South Africa-based French water treatment company, Veolia, have been shortlisted to dewater the underground mines before the actual coal mining begins.
"We are working with two South African firms, with one of them, Veolia already shortlisted to carry out the work at our underground mines.
"It is one of the largest water treatment companies in South Africa. The extracted acidic water would be made safe for drinking," said Mr Moyo.
This could extend the life span of the coal mining giant that has been left with deposits that could last for not more than 40 years.
Hwange has since applied to the Government for further special mining grants.
Currently, Hwange is producing about 260 000 tonnes of coal. However, production is likely to go up by 30 000 tonnes following the recent acquisition of a coal screening plant.
Mr Moyo said the project would include resuscitating remnant mines that currently are flooded with water, thereby inhibiting mining operations.
"We are working on a plan which will be finalised when the board meets in November which will boost production to as much as 40 million tonnes of coal between 2012 and 2013," he said.
"In the process we may lose about 10 percent of coal as it dissolves in the acidic water but we should be able to still get 30 million tonnes," he added.
The ambitious plan would involve pumping out water from some of the mines that Hwange had abandoned due to dwindling deposits.
Hwange has announced the acquisition of a coal screening machine that will see monthly coal output jumping by an additional 30 000 tonnes.
The country’s largest coal producer is seeking funding from the Development Bank of Southern Africa to jolt its operations.
Coal output had dwindled over the past decade due to the unprecedented economic meltdown that the country went through. — Business Reporter/New Ziana
Labels: COAL, FRED MOYO, HWANGE COLLIERY COMPANY
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CCCM bemoans lack of market for coal
Written by Tovin Ngombe in Sinazongwe
Saturday, October 10, 2009 4:27:56 PM
CHINESE Collum Coal Mine (CCCM) in Sinazongwe has said processed coal produced by the mine will be wasted if the lack of markets for the commodity continues.
CCCM general manager for shaft two and three Cai Yue Zhong told ZANIS that with the onset of the rains, 20,000 tonnes of Fines and 5,000 tonnes of Peas and Nuts would be destroyed if market continued to be a problem.
Cai said for the past one week, customers had been failing to buy coal from the mine resulting in the reduction of coal production. He said the mine had difficulties in selling the Fines as most customers were only interested in buying the type of processed coal that had Peas and Nuts.
“We are worried that with onset of the rains, our coal will be wasted after investing so much in its production,” he said.
Cai appealed to the government to assist in convincing Zambian companies that were buying coal from Zimbabwe to start buying from the local producers.
He said the workers were the most affected with the lack of market because their monthly income was reduced.
Cai revealed that workers were at times told to be on break when the market for coal was affected because they could not keep on producing without the available buyers.
And Maamba Collieries Limited (MCL) plants manager Famous Kabwe also confirmed that the problem of markets for Fines was also affecting the company.
He said most companies such as Lafarge Cement Zambia were getting their Fines from Wankie Coal Mine in Zimbabwe.
Kabwe said a few companies in Zambia that were using Fines in their furnaces such as Ndola Lime were also getting it from Zimbabwe.
Labels: COAL
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Hwange colliery wins Zambian tender
Tendai Midzi
Fri, 17 Jul 2009 00:03:00 +0000
HWANGE Colliery Company, Zimbabwe's main coal producer announced Tuesday that it had won a contract to supply US$5 million worth of the commodity to Zambia. An official of the company said the deal was struck recently at an International Trade Fair in the Zambian city of Ndola.
He said shipments to Zambia would start immediately, and prospects were bright f or further supply deals beyond the current contract.
Hwange Colliery Company, which is listed on the Zimbabwe and Johannesburg stock exchanges, is the country's biggest coal producer and exports to a number of countries. It has coal reserves running into billions of tonnes.
Labels: COAL, ZAMBIA, ZIMBABWE
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