The Sunday News
THE Chamber of Mines and the Zimbabwe Artisanal and Small Scale Council has secured a 490 000 Euro facility from various European organisations with the help of a local non-governmental organisation —PACT — that will see major capitalisation initiatives to boost production in the sector.
Small scale miners have been crying out for funding to boost operations and the facility will add to another $100 million mechanisation initiative that the Government has negotiated with a Chinese company.
ZASSC president, Mr Wellington Takavarasha, told Sunday Business last week during the Mine Entra exhibition in Bulawayo that the money would be availabe by 18 August.
“The money was availed through PACT and we hope it will boost production. At the end of next month we must see progress,” he said.
PACT, according to its website, is described as an organisation that “helps build strong communities globally and provide people with an opportunity to earn a dignified living, raise healthy families, and participate in democratic life”.
Chamber of Mines deputy president Mr Ashton Ndlovu said the funding would demystify the notion that big mines in Zimbabwe were not supportive of small scale miners.
He said the Chamber of Mines was actually embarking on a number of initiatives to boost production of small miners.
“We have a number of programmes to help small miners. There are small scale miners that are registered under the Chamber whom we are helping in registration issues, training and ensuring that they meet legal requirements,” he said.
Mr Ndlovu promised more support for the small-scale miners adding they were important in the development of the mining sector.
Production by small scale miners has declined over the years, weighed down by a lack of machinery as most mining operations require huge capital.
Statistics by the ZASSC show that gold production by small scale miners has plummeted from a record 14 tonnes in 2004 to 959 kilogrammes last year.
Although production from the sub sector has been going down over the years, there is suspicion that most small scale miners were selling the product through informal channels hence such output was not accounted for.
In 2009 production was at 2 425, 5 kilogrammes, 2010 at 2 606,6 kilogrammes, 2011 at 2 765, 9 kilogrammes and 2012 at 2 092, 8 kilogrammes.
Mr Takavarasha conceded that small-scale miners could be selling gold on the black market arguing that the central bank’s gold buying unit, Fidelity Printers, was offering lower prices compared to the black market.
“Right now Fidelity Printers’ buying price is -11 percent off the London Metal Prices level while the black market price variance is negative five percent. Obviously the small miners will be tempted to sell at the black market. Fidelity printers must review their prices.”
Fidelity Printers is buying gold at $37 per gramme while the international price is at $1 310.250 per ounce.
One ounce is equivalent to about 28,3 grammes meaning at international prices gold is being sold at $46 per gramme.
Government has, however, promised to close the difference in prices to ensure that they plug leakages.
Mr Takavarasha said apart from the issue of equipment, most small scale miners were failing to meet environmental requirements because they were not familiar with the terminology.
“Small scale miners know only to mine. If you tell them about biodiversity, you are actually confusing them. We want the Environmental Management Agency to review the issue of Environmental Impact Assessment.”
Under the EMA Act all mining companies from small- scale to big companies are supposed to apply for an EIA.
“At least they must let small-scale miners apply for an Environmental Management Plan, something which simply says after mining what do you do to protect the environment rather than to start talking about all the complex issues needed to get an EIA,” said Mr Takavarasha.
