LIVINGSTONE MARUFU
Heavy rains that pounded most parts of Zimbabwe have caused a 26% plunge in gold production to 3.79 tonnes in the first two months of this year from the 5.129 tonnes reported in the prior comparative period.
FGR general manager, Peter Magaramombe, told Business Times there was a need to dewater mines to ramp up production.
“Our gold deliveries have gone down significantly as the artisanal and small-scale producers were significantly affected by the rains from mid-December 2022 to date,” Magaramombe told Business Times.
He added: “(Gold miners) are failing to mine due to high water levels.
“There are fears of possible mine collapse accidents hence production fell significantly.”
Magaramombe said large-scale producers delivered 1.69 tonnes while small-scale miners delivered 2.099 tonnes to FGR in January and February this year.
The fall in deliveries resulted in gold export receipts falling 24% to US$228.73m during the first two months of this year from US$302.5m earned in the prior comparative period.
Last month, Finance and Economic Development minister, Mthuli Ncube unveiled a US$10m loan facility for small-scale miners to boost production as the government targets an output of 60 tonnes this year.
The loan facility has a tenure of between three and six years.
The first US$5m is for artisanal gold small-scale miners’ revolving fund while the other US$5m will go towards gold service centres.
It comes at a time when most investors are reluctant to support the artisanal and small-scale miners due to the inherent risk and complex way of doing business by these miners.
Gold Miners Association of Zimbabwe CEO, Irvine Chinyenze, said the process to disburse the funds should be expedited.
“There is a need to expedite the processes so that small-scale miners can start utilising the US$10m facility to increase production,” Chinyenze said.
Of the US$10m facility, US$5m will go towards the construction of six gold service centres to improve access to critical facilities by artisanal gold small-scale miners.
The implementing agency for the gold service centre revolving facility will be done by the Zimbabwe Mining Development Corporation.
The US$5m artisanal gold small-scale miners’ facility will be accessed through the Mining Loan Fund which is administered by the Ministry of Mines and Mining Development.
The decline in gold figures comes at a time when Zimbabwe’s other leading foreign currency earner, tobacco, is also subdued, leaving the country on the edge.
