Gold miners fret over target

21 Oct, 2018 - 00:10 0 Views
Gold miners fret over target Joram Gumbo

The Sunday News

Joram Gumbo

Joram Gumbo

Dumisani Nsingo Senior Business Reporter
MOST small-scale mines have stopped operations owing to the prevailing fuel shortages in the country, a situation which is likely to derail gold producers from attaining their yearly target of producing 30 tonnes of the yellow mineral.

Zimbabwe Miners Federation past vice-president Mr Ishmael Kaguru said production at most small-scale mines had dropped to unprecedented levels with others being forced to halt operations due to the erratic fuel supplies at the country’s service stations over the last three weeks.

“Production at mines has been heavily affected by the shortage of fuel to the extent that most mines have stopped operating. It has to be noted that most of the mining equipment uses fuel in the form of diesel and these are your compressors and earthmoving equipment yet service stations are denying miners the fuel when they bring containers,” said Mr Kaguru.

He said there was a need for Government to consider identifying selected service stations to serve miners so as to ensure uninterrupted production at their mines.

“This (fuel shortage) is now hindering the target, which was set by the Government for gold deliveries and even deposits at the banks and Fidelity (Printers and Refiners) are probably shrinking.

“We therefore urge the authorities to rectify the situation as a matter of urgency and we are proposing that if the situation persists Government should identify selected service stations to serve miners,” said Mr Kaguru.

ZMF chief executive officer Mr Wellington Takavarasha lamented that despite calls by the Minister of Energy and Power Development, Dr Joram Gumbo to service stations to allow those from the productive sectors and those offering critical and essential services to use containers to obtain fuel, most of them are still adamant.

“Garages at the moment haven’t changed, some are still very strict in terms of usage of containers. The fuel shortages are seriously affecting gold production and the issue is worrying many miners as virtually all the mining equipment uses fuel,” he said.

Dr Gumbo urged mining companies, which have fuel allocation arrangements with individual service stations to continue using such facilities while those without, should approach the petroleum garages with proof showing ownership of mines to enable them to be served.

“If one used to have a facility or arrangement for procuring fuel at a particular service station they are free to continue with such an arrangement since they are in the productive sector. If the service station doesn’t have a standing agreement with companies it becomes difficult but if one has documents to prove that they operate a mine it’s easy to negotiate that way,” he said.

Dr Gumbo said the proposal by miners to have selected service stations serve them is noble but he was quick to say that at the moment there is no need for such an arrangement as the fuel situation would normalise soon.

“I totally agree with them and the proposals they are making but I’m saying while we cannot make it like a law to force someone to give so and so fuel but it’s important that as a country we recognise that without production we are driving to a standstill, so production must be supported,” he said. —@DNsingo

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