Permanent Secretary for the Ministry of Mines and Mining Development Mr Pfungwa Kunaka
By Dickson Bandera
Artisanal and Small Scale Miners across the country are set to benefit from a US$10 million Mining Fund established by the Government of Zimbabwe as efforts to capacitate this anchor sector and ultimately boost gold deliveries to the Fidelity Gold Refiners have been scaled up.
Facts and figures in the past 5 years have indicated that small scale miners are the major contributors of gold deliveries to the Fidelity Gold Refiners hence government has moved in to help this sector with the tools of the trade as well as establishing government services within the mining areas.
The gold sector in Zimbabwe has proved to be strategic to the mining industry and is one of the major foreign currency earners in Zimbabwe.
In 2023, the Artisanal Miners have so far contributed 63% of the total deliveries, and according to Ministry experts, this figure can shoot up if the miners are capacitated.
Artisanal and Small Scale Miners are confronted with challenges such as poor mechanization, lack of capital and lack of technical consultancy to inform their operations. These challenges do not only affect gold output, but have resulted in serious accidents in recent years
The Fund, which is already running, has been split into two, with US$5 million set aside as a loan fund and another US$5 million meant for the establishment of 5 Gold Service Centres across the different gold mining areas.
The loans will be disbursed in form of mining equipment used by the miners in their day to day mining, and repayment period is three years.
On the other hand, the Gold Service Centres will be strategically built in mining communities as one stop shops that offer services such as transport, onsite technical guidance, milling services, laboratory services and supply of consumables. Fidelity will also be stationed there to buy gold. Technical advice for the miners will come from technical experts such as mining engineers, geologists and metallurgists who will be deployed to these Centres.
Artisanal and Small Scale Miners have since been called to apply for the loans in their provinces, after which provinces will then submit the lists to the Ministry headquarters for further management.
Permanent Secretary in the Ministry of Mines and Mining Development Mr Pfungwa Kunaka explained the nature of the facility as well as the terms and conditions thereof.
“We have opened up this for all provinces to apply. When they apply the province looks at the application, assesses and forward to the Head Office. The application will be specifying what the miner needs, by way of that mining equipment list, the province will vet and recommend to the Head Office,” he said.
Mr Kunaka added that there is equipment already in stock waiting for distribution to the miners.
“What is happening currently is that we already have a stock of equipment which the miners are free to come and apply for but we are looking at augmenting that. We are in the process of procurement.
“When a miner gets the equipment, they are given three years to repay. It’s a credit scheme which is already running.”
Mr Kunaka also emphasized that only those miners complying with the law will qualify to get the loans.
“Obviously for you to be considered, you have to be in compliance, you have to be a registered miner, meeting inspections. We also look at your track record,” he said.
The construction of the first Gold Service Centre in Makaha, Mashonaland East province is now at an advanced stage with commissioning expected before the year end.
