/ 11 February 2008

Zimbabwe mining hit by skills flight

Zimbabwe’s mining sector has lost more than half its skilled personnel in the last year, with workers lured abroad by the chance of boosting their pay more than ten-fold, an industry body said on Monday.

According to a new study carried out by the Chamber of Mines, there are now 1 116 vacancies for professional and technical staff following the departure of workers, mainly to neighbouring countries such as South Africa and Mozambique.

“The industry has lost more than half of its skilled personnel to the region and beyond,” Jack Murehwa, president of the Chamber of Mines, said.

“The flight continues as we speak, with South African companies collecting artisans and machine operators by the busload from organisations in Zimbabwe.

“Mines and other organisations are helpless in the matter because they cannot match what these skills are being offered outside Zimbabwe.”

Murehwa said that a mining technician could expect to earn about $2 500 a month in South Africa while the going rate in Zimbabwe works out at less than $200, with the industry struggling with a massive tax burden.

“If artisans in Zimbabwe were to earn that kind of value, they would stay in the country,” he said.

“Under the current situation, the employer is struggling to make that money, the taxes are among the highest in the world and price distortions make earnings based on the official exchange rate a mockery.”

Zimbabwe’s mines, which produce gold, palladium, chrome, platinum and diamonds among other minerals, earned the country $849-million, up from $702-million in 2006, according to central bank figures.

However, problems over power supply and a dearth of foreign currency are beginning to bite in the inflation-ravaged country, with production of gold falling by more than a third last year.

Murehwa said the industry’s future “looks bleak” in the light of the skills flight, electricity shortages and government plans to force foreign-owned mines to cede transfer majority shares to indigenous black Zimbabweans.

Parliamentary sources say the planned legislation on mine ownership is unlikely to come on to the statute book before national elections next month but will be pushed through afterwards if President Robert Mugabe wins a new term. — AFP