Online Reporter
Sikhulekelani Moyo, Zimpapers Business Hub
ZVISHAVANE-BASED platinum mining firm, Mimosa Mining Company, has partnered with local banks in raising about US$15 million, which has been set aside to help in Local Enterprise Development (LED), a move that is meant to capacitate local suppliers.
Mining institutions are being urged to have local enterprise development programmes where they support local manufacturers who then supply the mining sector with consumables, ranging from Personal Protective Equipment (PPE), machinery, chemicals, among other items.
This initiative will help to improve local manufacturing capacity, empowering communities and creating employment.
In his presentation during the recently ended Mine Entra, Mimosa Mine’s Head of Finance and Administration, Mr Edmore Tafirenyika, said there had been a lot of intentional movements towards growing the local industry.
He said in the mining sector, there were a lot of locally produced products that they had adopted.
However, he expressed concern over the capacity and quality of products from some suppliers, saying that this had seen them rely a lot on imported mining consumables for them to be able to continue running mining entities.
“There have been a few strides that we have made in the mining sector in trying to promote local competency. And most importantly, issues around Local Enterprise Development (LED) have been key,” said Mr Tafirenyika.
“Looking at LED, at Mimosa alone, we have partnered with our banks. I’m happy they are here, CBZ, where they have assisted us with a revolving fund.
“Then they have given us another US$5 million, and we have two other banks that have given us another US$5 million each to make it US$15 million, which has been set aside not only to assist with our LED programmes, but also to assist with supplier support from our side.”
As a result of these funds, Mr Tafirenyika said there were some organisations that had been assisted by Mimosa, mostly from a backward integration point of view.
“We have a backward integration with a local company, and they are doing a lot in-country, and we are buying from them,” said Mr Tafirenyika.
“As if that is not enough, we are also in the process of finalising an LED to do with some local community tailors that we found within Zvishavane, and they are doing some tailoring work, which is going to be converted into mostly the PPE that we have been buying outside, but which was previously imported, and that’s going to be produced locally within Zvishavane.”
He added that the company has a few others that they are trying to onboard.
Mr Tafirenyika said there is a need to start re-looking at increasing focus on local manufacturing, in a bid to improve competitiveness, like in China or South Africa, where things have been deemed to be cheaper.
“Let’s keep it in mind that it will be very desirable that we turn as much as we possibly can towards local manufacturing, towards locally producing our own critical mining consumables, and I think that way, not only does it put us on the map, but that will go a long way in reducing the overall cost of our mining operations,” he added.
“As Mimosa, outside of our bankers, we’ve also set aside US$5 million that is set for LEDs, and that is going to involve funding places for five years, and we believe that other mining companies are at different stages of implementing this.”
Ends
