Tawanda Musarurwa in NYANGA
DEPUTY Minister of Mines and Mining Development Fred Moyo has challenged local banks to establish dedicated financing facilities for mineral exploration, saying greater financial support is needed to expand the country’s mineral resource base and unlock new mining investments.
Speaking at the Association of Mine Managers of Zimbabwe’s 54th annual conference and AGM in Nyanga, Deputy Minister Moyo said the Government wanted to encourage more exploration as it moves to improve geological information through the national aeromagnetic survey.
He questioned the absence of dedicated exploration financing in banks’ lending portfolios, arguing that financial institutions should play a more active role in supporting mineral discovery and development.
“Why is it so difficult for you to insist that every banker must have a line set for exploration funds?” he asked.
The deputy minister said the Government should work with the mining industry and financial institutions to develop mechanisms that recognise and reward exploration efforts.
He said reliable geological information, supported by increased exploration financing, would help mining companies establish the extent of mineral deposits, improve resource statements and develop longer-term production plans.
Deputy Minister Moyo also called for closer cooperation between the Ministry of Mines and mining companies on geological resource planning, arguing that better information should inform investment decisions and national mining development strategies.
The proposed financing facilities would address a critical link between geological potential and actual mining investment: the availability of capital to investigate deposits, establish their commercial viability and develop new mining projects.
Deputy Minister Moyo’s call comes as the Government seeks to strengthen the country’s geological information base and encourage mining companies to intensify exploration
