Judith Phiri, Business Reporter
THE Minister of Mines and Mining Development, Soda Zhemu has called on artisanal and small-scale miners to formalise their operations to enhance their governance, as they account for more than half the country’s gold production.
Gold is one of Zimbabwe’s largest foreign currency earners, while artisanal and small-scale miners contribute about 60 percent of the country’s gold output. The gold sector is supposed to contribute US$4 billion towards the US$12 billion mining milestone by the end of this year.
Speaking at the Zimbabwe Miners Federation (ZMF) Small-Scale Mining Conference that was held concurrently with the 26th edition of the mining, engineering and transport expo (Mine Entra) 2023 on Friday in Bulawayo, the Minister said artisanal miners have the potential to produce much more.
“Artisanal miners have the potential to produce much more and their progress is hampered by a lot of challenges that include inadequate funding, equipment, skills, technology and lack of business acumen in some cases. In order to deal with the complexity of artisanal mining and fully realise their economic impact, the artisanal and small-scale miners are encouraged to formalise their operations and continue to unite under umbrella bodies. This enhances self-governance of the artisanal and small-scale miners sector and enables miners to speak with one voice in engagements with various stakeholders including Government. I therefore, applaud various mining groups for joining together under one umbrella body, the ZMF.”
He said the contribution by the artisanal and small-scale sector on mining sector performance over the past few years cannot be overemphasised, while they were more dominant in the extraction of gold, chrome and semi-precious stones. Minister Zhemu said for the period January to September this year, small-scale miners contributed 13,8 tonnes of gold deliveries to Fidelity, representing about 61 percent of total production.
“I urge you to continue with the hard work spirit in order for us to reach the reviewed target of 40 tonnes for this year. Apart from national economic development, the artisanal and small-scale miners sector has emerged as a source of livelihoods for many people given the huge numbers involved. The sector therefore plays a key role in poverty alleviation which is a deliverable under the Sustainable Development Goals (SDGs),” he added.
He said as he toured the exhibitions during Mine Entra, he noted with gratitude that the emergence of the artisanal and small-scale miners sector has led to the development of industrial linkages through small to medium enterprises (SMEs) which have found a niche in manufacturing mining equipment and supply of chemicals.
The minister said this highlights the developmental impact of mining in the country in line with the National Development Strategy 1 (NDS1), as the sector remains pivotal to the country’s economic development.
“The Government is committed to the development of the artisanal and small-scale miners sector and has come up with various support mechanisms. These include the Gold Development Fund where the Fidelity Printers and Refiners has been disbursing loans in order to capacitate our small-scale miners. In addition, the ministry also runs the Mining Industry Loan Fund (MILF) where miners are financed to procure equipment through a revolving fund. I urge you all to honour your debt to make this facility a success. The ministry will continue lobbying the Ministry of Finance to increase funding of this noble facility.”
Minister Zhemu said the Government was setting up Gold service centres across the country to capacitate artisanal and small-scale miners, through the Zimbabwe Mining Development Corporation (ZMDC). “While, these service centres are a one-stop-shop which will be providing hiring of equipment at affordable rates, technical support services, processing and buying of the minerals produced at competitive prices.”
He said in the same vein, the Government through the Minerals Marketing Corporation of Zimbabwe (MMCZ) is in the process of streamlining the marketing of coloured gemstones which has been the major problem in the development of this potentially promising sub-sector.
“As we grow our mining sector, we urge all our artisanal miners to be responsible citizens and shun various malpractices associated with the sub-sector as this tarnishes the image of the artisanal and small-scale miners sector. As highlighted by President Mnangagwa at the launch of the Responsible Mining Initiative, all miners are encouraged to work within the parameters of the law particularly in protecting the environment. Furthermore, minerals should be marketed through formal channels and refrain from illicit trade.”
ZMF acting president, Mr Marufu Sithole said they were appealing to the Government to reconsider the gold sale retention threshold of 75 percent in foreign currency and 25 percent local currency, as most of their consumables were acquired in foreign currency. He also called for the gold coins to be availed to them as miners as a way of keeping the value of their sweat.
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