adminNgoni Dapira Business Correspondent
THE Manicaland Miners Association (MMA) has welcomed Government’s new fee structure in the mining sector as a way of boosting gold deliveries and encouraging investment.
Last week Government announced that it had introduced a new fee structure in the mining sector to standardise mining fees paid by miners to various Government agencies and rural district councils countrywide to ensure uniformity and ease of management.
MMA chairman Mr Lovemore Kasha said although the proposed alterations had not entirely reached their proposed levels, the cutback was welcome to boost mining exploration activities in the country.
“We welcome the restructuring as we continue to chart a way forward with Government on our concerns, which we feel will help turnaround the mining sector.
“As MMA our drive is to work with Government and advocate for the formalisation drive, but this can only be realised if realistic fees and frameworks are set, especially in our deteriorating economic environment that we are currently operating under,” said Mr Kasha.
Mines and Mining Development Permanent Secretary Professor Francis Gudyanga last week said the new fees, which were gazetted last month, were lower than the previous regime.
“There is going to be reduction in mining fees.
“The proposed fees have already been gazetted and there are about 200 entries,” said Prof Gudyanga. Under the new structure, a custom milling licence costs $5 000 per year from $8 000, though millers had proposed $2 000.
Mr Kasha cited how the reduced $3 000 fee on explosives licences, charged on both small-scale and commercial miners had over the years spurred illegal smuggling and underhand dealings of explosives.
He, however, also welcomed the deductions on the value of project in the Environmental Impact Assessment report, from 5 percent to 3 percent.
The MMA chairman added that the association was working in conjunction with the Penhalonga gold mining concern DTZ-OZGEO, on a pilot project to promote modern mining practices by small-scale miners in Penhalonga since January this year. Most small-scale miners use manual drilling, which reduces productivity levels so we have been leasing out compressors from DTZ-OZGEO at a very minimal charge. One hole takes a day using manual drilling but with a compressor it takes a few minutes.
“The programme will increase production levels of small-miners and capacitate them to generate more income to purchase their own compressors,” said Mr Kasha.
He said compressors ranged from $3 000 to $6 000, which was expensive for most start-up small-scale miners.
Mr Kasha also urged Government to come up with the same leasing initiative at large-scale.
The call also comes on the backdrop of the pronouncement last year by the Minister of Finance and Economic Development Patrick Chinamasa in his 2016 National Budget that gold deliveries from small-scale miners to Fidelity Printers and Refiners were improving, from only 1,7 tonnes in 2013 to 5,9 tonnes for the period January to October 2015.
Mr Kasha said local miners want to formalise operations but optimal working conditions must be put in place.
Meanwhile, Mines and Mining Development Minister Walter Chidhakwa last week announced that a process of compiling all fees that are payable to rural district councils by miners is underway.
He said his ministry was compiling the fees payable to the various rural districts councils to check on the disparities charged by various local authorities.
Online Reporter