Small scale miners seek funding for equipment

LIVINGSTONE MARUFU

Small-scale gold miners are looking for funding to purchase state-of-the-art mining machinery so they can continue to run their operations even during the rainy season, the Gold Miners Association of Zimbabwe  CEO, Irvine Chinyenze has said.

According to Chinyenze, small-scale miners still rely on ineffective, outmoded equipment.

“It’s not surprising that we have low gold deliveries in the country this year because during the first two months of 2023, there was flooding in the mines.

“We need state of the art equipment to continue working even under these conditions. Going forward, we are seeking for funds to procure machinery that could enable us to work under very wet conditions,” Chinyenze said.

In the first seven months of 2023, Zimbabwe’s gold deliveries to the country’s sole buyer and marketer  of the yellow metal , Fidelity Gold Refinery (FGR) , decreased by 11% to 16.86 tonnes from 18.940 tonnes delivered in the prior comparative period.

According to FGR general manager Peter Magaramombe, the country hasn’t fully recovered from the effects of the rainy season slump, which saw a sharp decline in gold deliveries in January and February.

“Gold deliveries to FGR  stand at 16.855 tonnes during the  first seven months of 2023 from 18.94 tonnes delivered during the same period last year. We were dealt a heavy blow in January and February due to the high water table which affected small-scale mining.

“Given  the general improvement  in  electricity supply  in the country and the increase of gold centres, we expect to recover significantly,” Magaramombe said.

Small-scale miners made up 61% of all deliveries, contributing 10.28 tonnes of the total gold production.

Over the past seven months, large-scale miners were responsible for 6.567 tonnes.

According to experts, new policies must be implemented in order to increase production and take advantage of stable, strong commodity prices that are above US$62,000.

Additionally, they claimed that deliveries have been hampered by inconsistency in payments as incapacitated small-scale miners look for alternative means of getting paid immediately.

They claimed that small-scale mining should have advanced through mechanisation, the acquisition of technical know-how, skills, and resources rather than remaining antiquated by using a pick and a shovel.

For miners, taxes also continue to be a source of frustration, and this situation has an impact on output and productivity.

As a result, gold smuggling has increased and the creation of gold reserves has been destroyed.

According to experts, it was necessary to review the large-scale miners’ retention levels and capacitate the small-scale miners to increase production.

To assist in achieving US$4bn  in gold export revenue, the government has moved to provide equipment in gold centers.

Three gold centers—at Makaha in the Mashonaland East Province, Mukaradzi in the Mashonaland Central Province, and Penhalonga in the Manicaland Province—will now be operational thanks to government funding.

This is believed to go a long way toward ensuring that the gold produced by artisanal miners is efficiently mobilised, increasing revenues accruing to the government as part of the process towards the achievement of a US$12bn  mining industry before the end of this year.

Gold is anticipated to contribute US$4 billion toward the mining sector’s US$12bn target by 2023.