Chronicle Editor
Robin Muchetu, Senior Reporter
THE Government is planning to set up a mining bank as a way of cushioning small-scale miners against high cost of money which has stalled their recapitalisation plans.
Calls have been made for a financing institution specifically for the mining sector in a bid to aid small scale miners to fund their businesses and purchase equipment.
Small-scale miners have bemoaned lack of adequate funding as a major challenge for the realisation of their full potential and believe the setting up of a financial institution will be a game changer as they will be able to access loans at concessionary rates.
This emerged during a meeting between miners from across the country with Finance and Economic Development Minister Professor Mthuli Ncube last week at the Zimbabwe School of Mines in Bulawayo.
In an interview Professor Ncube, said concerns around funding were important to consider.
“I had an interaction with the Zimbabwe Miners Federation (ZMF) together with our Small to Medium Miners right across the board. The bulk are in the gold sector, others chrome and a few in the gemstone sector. So I came to understand what their concerns and challenges are.
“We are thinking about a mining bank or mining financial institution and also insurance for the sector.
“The one critical concern they mentioned was access to finance to buy mining equipment so the issue is equipment largely. If we get a solution for this, then we will have solved a number of issues for them. The small-scale mining sector is an empowering sector and if we can support more of it as a Government, the better,” he said.
Prof Ncube said the sector needs Government support especially in recapitalisation and mechanisation.
“One of the things we are looking at going forward is reviving our equipment support financing mechanisms through the Ministry of Mines and Mining Development and through Fidelity Printers and Refiners and also through revamping our exploration fund within the ministry.”
Small-scale miners said they had claims but were failing to commence mining as they lacked equipment due to lack of funding. The miners also expressed concerns over the heavy taxes and fees they were paying.
“The miners also raised the issue of fees and taxes that they feel are raising the cost of doing business, these fees are at both national and local government level. They mentioned 15 different types of fees that they pay and they feel are constraining their businesses. I have requested to have these fees listed and I follow through,” he said.
The Minister said the Government was providing a slew of incentives for the large scale formal operators and are moving to understand the issues around the small-scale sector and equally support them with incentives.
Prof Ncube said his visit and tour of the Zimbabwe School of Mines was to understand their operations.
“I came to appreciate and understand what the school does and what the challenges are, it is a critical school and Education 5.0 strategy, which is developing skills that produce goods and services.
“It is an important school that supports the mining sector, especially the small-scale miners that need the skills that are critical in order to achieve the US$12 billion mining economy by 2023,” he said.-@NyembeziMu
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