Miners strike $20m loan facility access deal

Oliver Kazunga, Senior Business Reporter
THE Zimbabwe Miners’ Federation (ZMF) has successfully engaged Fidelity Printers Refiners to accept movable property as collateral for the $20 million loan facility to small scale miners.

ZMF first vice president Mr Ishmael Kaguru said in an interview that Fidelity Printers, the country’s sole gold buying unit, had agreed to their request.

Reserve Bank of Zimbabwe Governor Dr John Mangudya unveiled the $20 million gold development package late last year as part of measures to boost gold production through capacitating small-scale and artisanal mining operations.

“Following our recent engagement with Fidelity Printers, they are now considering movable collateral security such as vehicles for a loan of up to $15 000. In addition, small-scale miners can also secure loans of up to $15 000 using mining equipment that a small-scale miner wants to procure if the loan is extended,” said Mr Kaguru.

He said small-scale miners requiring funding above $15 000 could also access funding at favourable terms after the discussion with the facility handlers.

About $12 million worth of loans has already been disbursed to small-scale miners across the country with more applying for the funding.

Comment could not be obtained from Fidelity Printers.

However, in the past, stringent conditions of accessing loans under the facility have been cited as making it virtually impossible for small-scale miners to benefit, enabling them to procure basic mining equipment such as jack hammers, compressors and water pumps required to improve gold output.

The Government has prioritised small-scale gold mining operations taking into account the critical role the miners play in the yellow metal’s production.

Figures from the Ministry of Mines and Mining Development show that as of November 30, 2016, the small-scale mining sector accounted for 60 percent of the about 23 tonnes of gold the country had produced.

RBZ estimates Zimbabwe’s underground gold reserves at about 13 million tonnes as under-exploited. Dr Mangudya is on record saying only 586 tonnes have been officially mined from 1980 to August 2016.

@okazunga