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Oliver Kazunga, Senior Business Reporter
GOLD output by small-scale miners increased to about 3,6 tonnes in the first quarter mainly due to increased capacity following injection of the $20 million loan facility from the Reserve Bank of Zimbabwe, an official said yesterday.
During the same period last year, small-scale miners delivered about 2,3 tonnes of the yellow metal.
In the 2016 mid-term monetary policy statement, the RBZ availed $20 million to Fidelity Printers and Refiners (FPR) to support small-scale and artisanal miners with bankable projects in order to increase gold production in the country.
The funding facility has since been increased to $40 million as Government moves to capacitate small scale miners who are fast becoming a major contributor to mining earnings.
In an interview, the Zimbabwe Miners’ Federation first national vice president Mr Ishmael Kaguru said the $20 million loan facility had started bearing fruit as shown by improved gold output in the first quarter by the small-scale mining sector.
He said improved gold output was despite the incessant rains the country has experienced.
“In the first quarter, we produced 3,6 tonnes despite the incessant rains the country has been experiencing in recent weeks.
“During the same period last year, small-scale miners produced about 2,3 tonnes of gold. The increase in gold output in the first quarter is largely attributed to the $20 million gold development initiative facility from RBZ, which came through FPR,” Mr Kaguru said.
In February, the country’s gold deliveries went down by 11 percent after heavy rains disrupted most mining activities.
According to FPR, gold sales in February stood at 1 454, 99 kilogrammes (1,5 tonnes), a decline of 11,12 percent from a January record of 1 636, 51kg (1,6 tonnes).
Due to continued rains, several mining firms, mainly small-scale miners — temporarily shelved operations due to flooded shafts.
Mr Kaguru said for a long time small-scale miners have been lacking access to working capital to boost their operations.
However, he said under the $20 million gold development initiative, small-scale miners have been able to secure basic mining equipment players in the sector greatly need to boost output.
In 2016, the small-scale miners produced about 9,6 tonnes of gold and this year the small-scale mining sector targets to produce about 16 tonnes of the 28 tonnes the Government was projecting.
@okazunga
Online Reporter