adminNoble Ncube Business Reporter
THE Zimbabwe Artisanal and Small-scale for Sustainable Mining Council (ZASMC) says unfavourable regulatory requirements and numerous exorbitant fees being demanded by various authorities are hindering subsistence miners’ viability in their bid to enhancing gold production. ZASMC president Engineer Chris Murove said a number of stringent regulations and punitive fines imposed by various authorities as well as inadequate mining equipment were hampering artisanal and small-scale miners’ efforts to effectively contribute on the country’s mineral output.
About 25 000 small-scale miners are registered, but 500 000 are involved in artisanal and small-scale mining. Of that, 153 000 are women and children.
A small-scale miner is required to pay $1 500 for registration and $8 000 for a milling licence and use of explosives is pegged at $1 000. Environmental Management Agency (EMA) also requires an environmental impact assessment certificate before mining activities commences which costs between $3 000 and $10 000. EMA also requires two certificates on hazardous chemical and waste management which range from $500 to $1 000. Rural District Councils also charge between $200 to over $1 000 to miners.
“The unfavourable regulatory framework and high fees charged by authorities such as EMA and their requirements for Environmental Impact Assessment (EIA) certificates are hampering our production capacity,” Eng Murove said.
He also called for different licencing fees for artisanal, small-scale and big mines.
It is against this background that artisanal and small-scale miners’ representatives have called on policy makers and stakeholders to promote policies that better regulate the sector stating that improved regulations could have a positive impact on the overall productivity of Zimbabwe’s gold mining industry. The Government projected gold output for next year to 20 tonnes from this year’s 18, 7 tonnes.
Small-scale gold miners are also struggling to reach full potential due to shortage of mining assets and unavailability of funds.
Safety has always been a concern in the small-scale mining activities and there are rampant reports of cases of miners dying or getting seriously injured during processes of gold ore extraction.
“Another challenge that we face is lack of adequate mining and milling equipment. The so-called Chinese deal has not given miners any equipment to date,” Eng Murove said.
The Government signed the $100 million equipment loan facility for small-scale miners with XCMG last year. In terms of the agreement, small-scale miners are expected to submit viable business projects to Government for consideration by CBZ Bank that will facilitate a syndicate of financial institutions to take part in the disbursement process.
In the wake of the economic difficulties experienced since 2002, the influx of Zimbabweans into artisanal and small-scale mining saw this sector contribute over one tonne of gold to Zimbabwe’s monthly output. Estimates from the Ministry of Mines and Mining Development suggest that small-scale miners were responsible for 30 percent of the 11,79 tonnes of gold produced in 2012.
“With right policies supporting the small-scale sector, most definitely this target is quite achievable, with small-scale mining sector contributing over 10 tonnes. Small-scale miners have nearly doubled their contribution compared to last year,” he said.
Zimbabwe Miners Federation chief executive officer Mr Wellington Takavarasha said there was a need to review the Minerals Act as it lacks policies directed at the artisanal gold miners.
“We welcome the 2016 National Budget because some of our pleas have been put into consideration. However, if the Government can come up with light handed policies for small-scale miners, we can produce more gold than the 20 tonnes.
“We want a win-win situation so that informal miners can come forward. The Government needs to revise the Minerals Act which was gazetted in 1963 to accommodate small-scale mining activities,” said Mr Takavarasha.
Presenting his 2016 National Budget statement Finance and Economic Development Minister Patrick Chinamasa said in order to encourage investment in prospecting and exploration activities and also enhance the viability of mining, a further review of selected mining fees and charges will be undertaken in consultation with the Ministry of Mines and Mining Development by the first quarter of 2016.
He also said fees and charges to other Government agencies that include EMA, the Radiation Protection Authority, as well as the Rural District Councils would also be rationalised.
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