Small scale gold miners on centre stage

10 Feb, 2017 - 00:02 0 Views
Small scale gold miners on centre stage Manicaland miner Mr John Chinonzwa (black suit) receives his award from the Minister of Mines and Mining Development, Cde Walter Chidhakwa for being one of the best gold producers in 2016 from Manicaland at the Gold Producers Awards recently held in Harare on January 20.

The ManicaPost

Business Correspondent
MANICALAND small scale gold miners are now boldly riding on the wave of the Indigenisation and Economic Empowerment Act and have become the major employers.
According to the Manicaland Miners Association, from less than 50 registered small scale miners before 2000, there are now 256 registered and active small scale miners in the province. Among the 256 there are 35 women.

Ever since the introduction of the multi-currency system in 2009, Government pronounced that Small to Medium Enterprises had become the new economic drivers following the slow collapse of large scale companies during the Zimbabwe dollar hyperinflation era.

This is now also being proven in the gold mining sector that used to be predominated by conglomerate large-scale companies.

In Manicaland, ever since the discovery of the Chiadzwa diamonds in 2006, diamond mining had overshadowed all other mineral explorations in the province, but gold mining is now slowly taking centre stage.

Ministry of Mines and Mineral Development Manicaland director Engineer Christopher Dube confirmed that gold mining was notably increasing in the province with small scale miners on the forefront.

“Gold mining was low in Manicaland but it is now coming. This can also evidenced by the increase in gold mills to try meeting the demand.

There are now 16 mills from four in 2015. The province also surpassed its annual gold delivery targets last year which is a good sign that gold mining is on the increase and small scale miners are on the forefront.

Some are even moving up to become medium scale producers,” said Eng Dube.

The closure of operations at the Penhalonga gold mining concern DTZ OZGEO in 2013 and inactivity at its neighbouring Metallon Gold Redwing Mine left many locals jobless in the gold mining community.

However, indigenous small scale miners are now coming into the forefront, not only creating employment but also contributing to the fiscus by selling gold through the formal system to Fidelity Printers and Refiners.

MMA chairman Mr Lovemore Kasha attributed the Indigenisation and Empowerment Act for creating opportunities for indigenous people to venture in all spheres especially mining which was dominated by foreign owned multinational companies. Gold is Zimbabwe’s second largest mineral export earner after platinum.

At the recently held Gold Producers Awards organised by the Reserve Bank of Zimbabwe, Mr John Chinonzwa received an award for being one of the best consistent small scale miners in the province.

The 65-year-old miner despite only getting educated up to Grade Five at Primary School level gained mining experience after working nine years at Redwing Mine.

He now has several mining claims and a mill, Penhalonga Valley Investment, based in Penhalonga which he runs with his three sons.

The mill currently has 36 employees while the mine at Muzuri Farm in Penhalonga at its peak employs 101 employees.

Regardless of having achieved a lot over the years to improve productivity at his mill like buying one modern round mill to add to the two archaic ball mills, Mr Chinonzwa said if Government could facilitate cheap loans he could buy more and improve his productivity and do customer milling to help other local miners.

He said last year he was on average producing 1.2kgs of gold per month

“While we are grateful for opportunities that indigenisation created we are now asking for more reforms on the ground to really make active small scale gold mining in Zimbabwe. Over the years Government has been making many pronouncements that were meant to empower SMEs but on the ground nothing really materialises.

Last year we met the 10 tonnes target set by Government for small scale miners. We have great potential to contribute more towards the fiscus if we mechanise and get access to affordable loans,” said Mr Chinonzwa who is also the Zimbabwe Miners Federation national treasurer-general.

Mr Kasha called on Government to hasten the Mines and Minerals Amendment Bill expected to usher in critical reforms to support the small-scale miners. He blamed the current low deliveries and leakages as a result of the slow process of formalising small-scale miners by Government.

“Gold deliveries from small scale miners sold through formal channels have increased over the years and more can be achieved. But for formalisation to be successful there is need for Government to seriously review reforms being demanded by small scale miners to capacitate and improve productivity.”

Mr Kasha said operations remained restricted by the absence of appropriate technology to cost-effectively extract ore from shafts. He said most small-scale miners were still using picks, shovels, buckets and wheelbarrows which are labour intensive.

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