The Sunday News
Economic Focus Munyaradzi Goremucheche
THE local mining industry has the potential to pull the nation out of its present economic challenges, hence the reason it has been earmarked as one of the sectors that needs serious attention for it to operate optimally.
In order for this to be attained, Government must consider taking stern measures such as reclaiming idle or inactive and under-utilised mines.
To begin with, such an undertaking by Government would not only make available opportunities for serious investors, but would to a greater extent stimulate effective productivity in the sector, particularly from the small to medium-scale mining players.
It will also promote transparency in the mining and marketing of minerals, thus reducing illegal activities that have been reported in some quarters of the sector.
Inactivity and under-utilisation, looking from another angle, have been caused or facilitated by the fact that miners have lost the aspect that mining in its core, is a business venture which requires business ethics to be applied for it to be a success.
Some miners have been attracted to the sector by the prospects of making quick money but in the process trampling on business ethics resulting in a lot of underhand deals which are not beneficial to the economy.
One of the hindering factors especially among the small-scale players has been the propensity to always look forward to either Government or private companies for funding.
Miners must start operating like real businesses and seek funds to run their business in a proper way.
An easy way is to use their respective organisations who can take the lead towards a vigorous and aggressive approach in terms of achieving objectives of which in this case is to find or map out ways and means that would bring better results.
Like any other business venture there are hurdles to overcome, meaning one has to be resourceful and full of perseverance in mining and pragmatic in approach.
Miners can also be innovative and stop thinking in an old and linear way of doing business.
For example many think that viable mining can only be achieved by the use of machinery.
It is common knowledge that financial resources are quite limited to most miners, which makes it very difficult to pursue the avenue of mining with machinery.
Therefore, you can consider using conventional mining methods, as they would permit one to be productive consistently within their financial means.
This will create positive ripple effects on other related sectors of the economy such as employment creation, because most conventional methods of mining are labour intensive and furthermore, mining organisations should ensure that their members bear the necessary skills in mining, through workshops and training programmes.
This would enhance productivity and increase the mine’s life span respectively.
In terms of the country’s economic blue print Zim Asset and its objectives, the mining industry, the small and medium scale-miners in particular, are also obliged to participate in the consolidating of the objectives set and this is by being productive, through coming up with ways and means that would ensure growth and development in the sector and the nation as a whole.
Miners should be able to attract foreign investors, which may be achieved by working hand in hand with Government, in the development of tailor-made mining investment packages favourable to investors.
It is very disheartening to note that miners have not been excelling in terms of sustainable growth as anticipated by Government, which negatively affects the economy, hence there is a need to support efforts by Government to reclaim unproductive but viable and under-utilised mines.
To those likely to be affected by this undertaking, they must work collectively with their organisations and engage Government to find a solution which benefits everyone.
The Government on the other hand continues to cry foul, saying miners are either under-utilising mines and yet has done little in terms of cushioning the miner.
Take the double blow of fees being charged and requirements to be met for one to start mining.
The fees cut across many departments and ministries and in most cases are high in the process negatively affecting efforts to revive the sector.
A review or consolidation of some of these fees might also help miners.
The Government can also assist in mine and mineral valuations in order to be able to determine value which would make it easier for investors and financiers.
Miners and Government must enjoy a mutual and respectful relationship which will pave way for the growth of mining and in the process pushing the mining objectives as enunciated in the Zim Asset document.
The Government must realise that mining is a venture which takes a bit of more time in terms of yielding effectively in comparison to other business ventures and to at least appreciate the progress the miners have made considering the fact that the economic environment is still unstable and also the fact that most of the small and medium-scale miners have kept afloat while under-capitalised.
On the other hand, miners should be resourceful and take every opportunity to acquire new information that can improve their businesses.
They must also seek interaction with stakeholders such as Government so that they keep abreast of what is happening in the regulatory framework.
Mining organisations, as a way of assisting these members, must also be at hand to identify problems affecting the sector and quickly come up with remedies or rather approach the relevant offices to ensure they get the correct information that can assist their members.
- Munyaradzi Goremucheche has a passion for mining. He can be contacted on 0718171899.
