MINES and Mining Development minister Walter Chidhakwa said funding for small-scale miners under the auspices of the $100 million equipment loan facility by the XCMG — a Chinese company — is expected to be availed by end of the month.
TARISAI MANDIZHA BUSINESS REPORTER
This development follows the recent signing of a $100 million equipment loan facility for small-scale miners between the government and XCMG, Chinese mining equipment suppliers last month.
Speaking at the Parliamentary Portfolio Committee on Mines and Energy yesterday, Chidhakwa said the ministry has contracted an organisation to put in disbursement profile to ensure the right people will benefit from this exercise.
Chidhakwa said the loan facility was among other steps taken by government to formalise artisanal miners in Zimbabwe and the loan facility was a revolving fund which is expected to benefit many others.
“The money will be available at the end of this month and it will be disbursed by financial institutions. We have a history of a similar facility which we distributed through the organisation and when we looked at how the disbursement was done, only a few individuals benefited,” Chidhakwa said.
“My desire is, if we can turn each dollar out of the $100 million to be used by two or more people to derive more benefits,” he said.
About 26% of total gold production in Zimbabwe since 2010 is estimated to come from small-scale mining and about 65% of known gold deposits are estimated to be in the hands of small-scale miners, he revealed.
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Of the six tonnes produced between January and July 2014, 1,3 tonnes have been produced by small-scale miners , translating to 21,6%.
He emphasised that local players in the mining sector should put their best foot forward to realise the best results out of this exercise.
“I emphasise that local players should put their best foot forward, there is no part in putting our worst foot forward. We should not give money to people who will not make it available for others to use,” he said.
He added that the ministry was crafting gold mobilisation strategies that will see the establishment of gold centres in areas where small scale gold mining activities are concentrated.
Chidhakwa said that formalisation of artisanal miners was a process and could not be done overnight.
He, however, said the government was working towards the introduction of the “cadastre” system as efforts to formalise artisanal miners among many other projects that are being put in place.
