Chronicle Editor
Oliver Kazunga, Acting Business Editor
THE Zimbabwe Miners’ Federation (ZMF) is negotiating for a mine mechanisation loan facility that will see individual small-scale miners accessing up to a maximum of $300 000.
The facility, which will soon be advanced to ZMF members in different sectors, would be availed by a local bank.
Zimbabwe’s small-scale mining sector is largely characterised by gold and chrome miners.
In an interview, ZMF spokesperson Mr Dosman Mangisi said funding under the facility would attract an interest rate of one percent per month.
“We will soon be signing a tripartite agreement between ourselves as ZMF, a local bank and some mining equipment suppliers whom l cannot disclose at the moment.
“We are encouraging small-scale mining associations to update their membership so that the miners are able to benefit from the upcoming loan facility, which will attract interest rate of one percent per annum.
“Individual borrowers can access up to a maximum of $300 000,” he said.
Mr Mangisi said loans under the facility would be disbursed by miners through their respective ZMF-affiliated associations and thus the associations were encouraged to update their registers.
“Before the loans are disbursed, ZMF will do due diligence to establish the individual miner’s ability and capacity to pay back the loan if advanced. ZMF will also do the monitoring after the disbursement to ensure the money secured has been put into productive use,” he said.
In the past, small-scale miners have complained about lack of basic mining equipment to enhance their productivity as most of the richest mineral seams tend to occur at greater depths making it difficult for the miners to tap into the resources as they were using traditional tools such as hammer and chisel.
“As ZMF, we are encouraging our members to open group bank accounts through their respective associations,” said Mr Mangisi.
ZMF has close to 40 mining associations affiliates.
The Government has, in recognition of the contribution of the small-scale mining sector to the country’s Gross Domestic Product, also come up with a number of initiatives such as the $40 million Gold Development Initiative to boost output.
Under the initiative, about 300 small-scale gold miners across the country accessed the loans that were disbursed through Fidelity Printers and Refiners.
The loans have seen beneficiaries accessing onsite processing technology from selected local suppliers.
This saw the small-scale mining sector contributing 13.2 tonnes of gold out of the 24.8 tonnes Zimbabwe produced last year.
The small-scale miners were this year targeting to produce 18 tonnes of the yellow metal.
@okazunga
derick.khumalo