adminBianca Mlilo, Business Reporter
THE Ministry of Mines and Mining Development has proposed that the $20 million loan facility for small scale miners be paid directly to suppliers of equipment, instead of cash.
The Reserve Bank of Zimbabwe (RBZ) last month unveiled a fund of $20 million to support the artisanal mining sector.
Speaking at a breakfast meeting held by the Zimbabwe Miners’ Federation (ZMF) and RBZ on Tuesday, Mines Deputy Minister Fred Moyo said there should be a clear and robust disbursement model tailored around the gold centres and involving all key stakeholders.
The meeting was aimed at facilitating discussion between the central bank, the fund administrators Fidelity Printers and Refiners and ZMF on the loan facility, its structure, purpose and roll-out modalities.
ZMF chief executive officer Mr Wellington Takavarasha said yesterday that Deputy Minister Moyo commended the artisanal mining sector for proving their worth in supporting production.
“The Deputy Minister said he expected more in terms of FPR presentations around the overall scope of the project, how much is going to support extension services and which banks FPR will work with,” said Mr Takavarasha in a statement.
“He (Minister Moyo) thinks there might be challenges with the model that RBZ/FPR is proposing — that is, targeting individual miners directly.
His proposal is that this be changed to the model of supporting service centres.
“FPR could identify areas to establish service centres (based on gold output). Certain entrepreneurial individuals could take upon the risk for the service centre. The centre would be tooled with all the necessary equipment and would also have extension support officers. Hundreds/thousands of miners would then be serviced by each service centre.
“He also emphasised that no miner should get money directly. The loan facility should be paid directly to suppliers and mining manufacturers.”
FPR general manager, Mr Fraderick Kunaka, who also attended the meeting said FPR had already begun receiving proposals for access to the loan and has begun reviewing them.
On the conditions of the fund, he said: “Interest rate remains 10 percent per annum and where the miner breaches the agreement, the interest rate would go up to 15 percent per annum.
“FPR is open to collaborations with mining associations such as ZMF as they can act as referees to applicants and can assist in terms of vetting.”
The small scale mining sector has been suffering from lack of funding as most of the miners do not have the necessary equipment to mine at their optimum. The $20 million fund is expected to help boost production, chief being the ability to meet the set target of 10 tonnes of gold this year.
@Bianca Mlilo
Online Reporter
derick.khumalo