Legalising gold panning will boost economic growth

Op2
Gold panners

Dosman Mangisi
THE new economic blue print, Zimbabwe Agenda for Sustainable Socio-Economic Transformation (Zim Asset) sets the tone for economic recovery, growth and development in the next five years.Mining is one of the key sectors of the economy that are expected to ensure that Zim Asset succeeds.  Together with agriculture and manufacturing, it has traditionally contributed a lot to the Gross Domestic Product.

It has risen in prominence in recent years, bettering manufacturing and agriculture as the illegal sanctions and recurrent droughts take their toll on the two sub-sectors.

But for mining to contribute to its full potential, leakages of precious minerals has to be contained, mines must be retooled, and energy supplies made more reliable for production at mines to go on smoothly.

Other factors that need attention for the mining industry to help Zim Asset bear results are adding value to diamonds, gold, chrome and platinum.

Another one, which some people can view as insignificant, is the Government effort to decriminalise gold panning.  This will go a long way to encourage gold panners to work unhindered and to sell their gold to Fidelity Printers, thus curb smuggling.

While there has not been a study to quantify the gold that the economy loses through smuggling, it is believed that it is huge.
Charles Simbi who is based in Gweru rose from being an illegal gold panner to becoming a small scale miner.

He was an illegal panner before and knows the amount of gold that is traded informally.  He is happy with Government moves to decriminalise illegal gold panning operations saying the revolutionary stance would complement the ongoing indigenisation and economic empowerment programme and create employment.

“I rose from being a gold panner to be a small scale miner and I know how painful and difficult it is to be here having worked yourself up alone.  No single gold panner will resist this opportunity; in fact to the  panners the exercise was overdue.

“To be where I am I struggled a lot to have equipment to use. Gold panners are haunted by many problems which hinder them from developing and excelling to the next level,” said Simbi.

President Mugabe and Zanu-PF promised ahead of elections last year that once elected, they would legalise gold panning, among other pledges. Ministers and senior Government officials have since the elections pledged to ensure that the promise is fulfilled. The national budget touches on the decriminalisation of gold panning as well.

Director of Big Valley Masters, a gold mining and milling company in Shurugwi, Philemon Mubata said for the Government to harness all gold from illegal panners it needs to support small scale gold miners as well, the way the State supports farmers.

“The Government through the Ministry of Mines needs to equip small scale miners with machinery which includes excavators and millers. At the same time the Government must set bases for Fidelity at every point where there is milling of gold so that the moment gold ore is milled Fidelity is ready to buy with a competitive price.

“Mining has much potential to turn around the economy of this country around and be able to support other sectors like agriculture and industry,” he said.

Mubata is also the project co-ordinator of Shurugwi Association of Small Scale Miners. They are already engaging illegal gold panners around Shurugwi by registering them. About 15,000 have been so far registered in Shurugwi.

The Zimbabwe Youth Council recently praised the Government for moving to legalise gold panning.  The organisation however, urged panners to form syndicates so that they can stand a chance of securing equipment to use.

Shurugwi South MP, Cde Tapiwa Matangaidze, a member of the Parliamentary Portfolio Committee on Mines and Energy hailed the proposal to legalise the operations of panners saying it was a way of empowering them and eradicating poverty.

He said even the prevalence of HIV could be reduced if a formal system is in place as it could remove the hide-and-seek mentality among panners.

As the Government moves to empower illegal miners, said Cde Tafanana Zhou, Mberengwa North MP, measures need to be put in place to ensure that their operations do not harm the environment.

“The decriminalisation of illegal gold panners and funding of small scale miners will go a long in the communities and the country at large,” he said.

“While these miners are empowered they need to be taught of social responsibilities in the areas they mine. They must plough back to the communities around them,” said Cde Zhou.

The mining sector is projected to grow by 11,4 percent this year on the back of planned investments and largely driven by strong performance in gold, diamonds, nickel and coal.

Government projects that gold production will increase by 7,1 percent to 15 tonnes from last year’s target of 14 tonnes said Finance and Economic Development Minister Patrick Chinamasa.

The new investments in gold mining as well as the policy shift that recognises the role that illegal miners play, said Cde Zhou, could boost the sector.

Deputy Minister of Mines and Mining Development, Cde Fred Moyo said his ministry is committed to legalising gold panning
“We are simply saying let’s build our economy with what we have and what we have at present are rich mineral which needs only value addition. The new mining policy seeks to address this and also how the Government intends to support small scale miners and decriminalising of illegal gold panners. The gold lost through black the market is a lot,” he said

 

Related Posts

Zimbabwe scoops top honour at Zambia Travel Expo

Nqobile Bhebhe, [email protected] Zimbabwe has clinched First Runner-Up spot in the Best International Stand category at the ongoing Zambia Travel Expo (ZATEX) 2026, a significant achievement that underscores the country’s…

Ziyah Media earns ZNCC CSR accolade, eyes national U20 tournament

Sikhulekelani Moyo [email protected] ZIYAH Media director Mr Loadwell Ziyadumah says the company’s recognition at the Zimbabwe National Chamber of Commerce (ZNCC) Matabeleland Annual Business Awards will inspire it to expand…

Leave a Reply

Your email address will not be published. Required fields are marked *

×
×