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In his opening address at the Chamber of Mines Annual General Meeting in Victoria Falls on Friday, he said Government was keen to empower small-scale miners.
“My ministry is keen to see small-scale miners, women and youth included, being capacitated in view of their potential and importance to the mining sector’s growth and employment creation.
“We have sourced mining equipment for small-scale miners which will be distributed to identified and deserving beneficiaries when we formally launch the scheme (Mining Industry Loan Fund) before the end of this month,” he said.
Government created the Mining Industry Loan Fund (MILF) to provide technical and financial support to boost small-scale miners’ operations given the crucial role the miners play in the extraction of minerals such as gold.
Dr Mpofu revealed that the past three months saw small-scale miners topping the chart on gold output producing 661 kilogrammes of the 3 100 kilogrammes produced in the first quarter.
He said his ministry was concerned that the Ministry of Finance in the 2012 national budget had allocated a meagre amount of $1 million to the fund.
“Of concern is the paltry amount of $1 million allocated to the MILF in the 2012 national budget.
“The allocation falls far short of expectations and will make minimal impact, considering the number of small-scale miners in the country and the cost of procuring basic equipment such as compressors,” he said.
Meanwhile, Dr Mpofu said the Mines and Minerals Amendment Bill is expected to get Cabinet approval by June this year.
The Bill seeks among other objectives to provide enhanced environmental management for mining operations as well as accommodating broad-based economic empowerment of indigenous Zimbabweans with conversion of social investment by mining entities into equity.
“The process of finalising the amendments to Mines and Minerals Act are at an advanced stage and we are hoping to get Cabinet approval by June 2012,” he said.
He said the amendments would provide for an improved and competitive mining legislative framework that offers a user-friendly operating environment.
“The amended Mines and Minerals Act will guarantee increased capacity in mineral production, continuous exploration, beneficiation and value addition of our minerals and also enforce the ‘use-it-or-lose it’ principle.
“Ultimately, the mining sector will be presented with a more investment-focused legislation based on a win-win principle that also addresses issues of levies and taxes to reflect prudence in the application of mineral rents,” he said.
The Government through the Ministry of Mines and Mining Development announced that it was adopting the use-it-or-lose-it principle to curb the under-utilisation of mining claims for speculative activity by investors.
The under-utilisation of mining claims has been seen as one of the major drawbacks in Zimbabwe’s efforts to realise full potential in exploiting its vast mineral resource base.
“My ministry has an obligation to grow the mining sector and make sure there is increased investment into the sector.
As such, mechanism have to be put in place that will lead to the release of idle ground to serious investors to stimulate mineral productivity.
Our desire is to see employment creation, increased production and increased economic activity in the mining sector leading to the growth and development of the economy, to everyone’s benefit,” he said.
Last year, the mining sector contributed an estimated 13 percent to the Gross Domestic Product and this year, the mining sector is projected to grow by 15,8 percent.
Online Reporter