Financial Gazette (Harare)
Shame Makoshori
12 June 2008
Harare — ZIMBABWE'S asbestos mines, which lost their bid to prevent South Africans from imposing a ban on the use of the product in their country in line with an international crusade against the use of asbestos, are facing a fresh battle to retain staff that could become redundant as a result of the new development.
South Africa expressed concerns over the environmental and health effects of using asbestos, prompting the ban.
This was despite concerted efforts by Zimbabwean miners, who reassured the South Africans that the type of asbestos produced in Zimbabwe - chrysotile or white asbestos - was harmless.
There are fears of massive job losses in Zimbabwe due to the ban on the use of asbestos in South Africa, which was one of Zimbabwe's major markets.
Revenue generated from asbestos sales had supported in excess of 10 000 workers for decades, and helped keep the troubled economy afloat through foreign currency receipts.
Asbestos, used extensively in developing countries as a roofing material, has since the 1960s been described as extremely dangerous to health and the implications of the ban in South Africa could be catastrophic as the country had been among the major consumers of Zimbabwean products.
South Africa joined more than 50 other countries in the prohibition of chrysotile asbestos arguing that "any person who has ever suffered from exposure to asbestos would see the absolute necessity for the regulations".
The main objectives of the South African regulations is to prohibit the use, processing or manufacturing of any asbestos or asbestos-containing products unless it can be proved that no suitable alternative exists.
The regulations, which were gazetted in 2004, came into force this year and are causing panic among companies in asbestos related industries in Zimbabwe.
These include Shabani and Gaths mines, which support more than 70 000 people, and industrial manufactures and distributors of fibre cement products, Turnall Holdings.
An estimated 10 000 workers are employed at the two chrysotile mines and downstream industries, which produce irrigation and water reticulation pipes, brake pads and gaskets.
At least US$60 million was being generated from the sale of Zimbabwe's chrysotile asbestos annually before the South African ban.
Zimbabwe, still smarting from a debilitating decline in tobacco revenue, is gradually losing the battle against the hostile lobby against the production of asbestos.
The crusade to ban asbestos has been spearheaded by the European Green Movement, a grouping of environmental enthusiasts who have declared war against the world asbestos industry.
An executive with Turnall told The Financial Gazette this week the fight against the ban was close to being lost and development of alternative products was underway to save jobs.
"We are working on the establishment of alternative products. This is one of the major issues to be discussed at our annual general meeting on Wednesday," said the executive.
Turnall's AGM was scheduled for yesterday morning.
The Minerals Marketing Corporation of Zimbabwe (MMCZ) has said the use of asbestos has been on the decline worldwide due to the hazards reportedly associated with the mineral.
"The market in now concentrated in developing countries primarily the Far East, Middle East, India, Sri Lanka and Brazil," said the MMCZ in its strategic plan for 2005 to 2007.
"Sustainability is dependent on controlled production as the market is shrinking," added the MMCZ.
Zimbabwe commands a nine percent market share of the global asbestos market.
The major producer of asbestos locally, SMM Holdings, produces an average of 180 000 metric tonnes annually, exported mainly to India, Iran, Brazil, the Far East and the Middle East.
Industry statistics show there is potential to improve production output by up to 200 000 metric tonnes.
To escape the effects of the punitive bans of chrysotile worldwide, the MMCZ had proposed to increase asbestos exports to markets currently unaffected by the ban by at least 70 percent of total annual production, and to establish offices in such countries.
Some of these countries include Dubai and China.
South Africa's decision to ban the use of asbestos comes after one of the key markets for asbestos products from Zimbabwe, Japan, banned all chrysotile imports into that market in 2004.
Brazil had also threatened to ban the use of asbestos soon after the Japanese decision.
The Financial Gazette understands that no ban has yet been imposed on the use of the product in the South American country.
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