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Prosper Ndlovu Business Editor
SMALL-scale miners are yet to access the $100 million Chinese loan facility signed in June last year as the government has not met its 30 percent bargain of the deal. The Ministry of Mines and Mining Development signed the funding agreement with a Chinese firm, Xuzhou Construction Machinery Group (XCMG) in June last year.
The facility will see small-scale miners accessing loans to acquire requisite equipment to improve viability, mining standards and ensure their activities are conducted professionally as well as boost mineral production output. Responding to queries on the matter by Parliamentarians in the National Assembly on Wednesday, Mines and Mining Development Deputy Minister Freddy Moyo said his ministry was seized with mobilising $30 million required for service charges.
“The $100 million facility has basically been approved. The challenge we’ve is that it’s split into two. The $70 million is meant for funding the equipment purchase while $30 million, which is 30 percent, is meant for insurance, freight and border charges of the goods,” said Moyo.
“The funders — the Chinese — are not prepared to support us on that 30 percent, which is a service charge.
“We had hoped that we would be able to raise that charge from local financial institutions but we’re finding this difficult to do at the moment. However, we’re trying to get that amount so that we can then activate the whole process. That’s where the challenge is.”
During the debate, non-constituency MP Anastancia Ndhlovu asked Moyo to clarify the percentage of the $100 million loan facility that would be allocated to vulnerable groups such as the young miners and women in mining.
Moyo responded: “The current split that we’ve clearly defined at the moment is that we’re trying to split the amount into half. Half of the $70 million directed to chrome and the other half to gold, other small minerals, gem stones and base minerals.
“We’re in the process of organising. We had elections two weeks ago. The Small-Scale Miners National Confederation of Zimbabwe (SSMNCZ) has been put in place. We’re decentralising that to provinces at the moment and then to districts. We hope to complete that in the next couple of weeks.”
The Deputy Minister said SSMNCZ was formulated out of women, youth, the disabled, traditional leaders and war veterans’ representation.
“Until that demography is out, I won’t be able to say what portions will go to which group. We should remember that the banks will also have their own criteria of approving the applicants, so will the technical side, which is run by the Ministry of Mines.
“It’ll be difficult to say exactly how much is going to be apportioned to which group, suffice to say we’re aware of all the interest groups and they’ll be catered for,” he added.
Moyo could not specify in what time – frame the process will be concluded saying that will be dependent on the availability of the $30 million for service charges.
XCMG has expressed interest in setting up a manufacturing plant in Zimbabwe a move that could turn the country into a regional hub for supply of mining equipment.
The delivery of the equipment is expected to boost gold deliveries and Zim-Asset targets, which has mining as a key sector. The blue-print also seeks to strengthen small to medium enterprises and co-operatives to be viable as tools for poverty eradication.
Online Reporter