• Artisanal and small-scale miners (ASM) contribute over 60% of the gold sold to Fidelity Printers
  • The recent symposium at the Zimbabwe School of Mines focused on increasing the bankability of ASM projects
  • The government  has recently launched a US$10 million gold fund targeting small-scale and artisanal miners.

Harare-The mining industry is a vital part of Zimbabwe's economy, making a significant contribution to the country's gross domestic product. Artisanal and small-scale miners (ASM) play a crucial role in this industry, contributing over 60% of the gold to Fidelity Printers. In recent years, there has been a call to increase the bankability of ASM projects and promote the value addition of minerals to support economic linkages.

Last week, mining players held a symposium at the Zimbabwe School of Mines, which focused on improving the profitability of small-scale miners. Financing, value addition, and beneficiation of minerals were also essential topics of discussion. The symposium brought together a diverse group of ASM participants, including stakeholders from mining, finance, education, and beneficiation.

In a post-conference briefing report released yesterday, ZUZA Mining Corporation executive director Mr. Bakani Moyo, who was the event coordinator, said stakeholders have called for broader sensitization on the ways to grow and further develop the sector in profitable and sustainable ways. The aim is to garner additional inclusive and sustainable support from pivotal institutional and non-institutional stakeholders.

The report notes that the key issue in all discussions was to increase the bankability of ASM projects by decoupling ASM from primary mining activity. The focus was to promote mining activity that is higher up in the value chain, which supports economic linkages. The symposium allowed participants to understand the significance of sustaining the profitability of the ASM sector so that it is bankable and can materialize further growth and development.

Mr. Moyo also highlighted the significance of increasing value addition in the mining industry, transforming minerals into products such as batteries, jewelry, construction materials, and securitization. Value addition enhances the gross domestic product while creating employment opportunities.

Officials in the small-scale mining sector attribute the increased gold output to collaborations and continuous hard work by different stakeholders in the sector. In 2022, artisanal and small-scale miners delivered more than 23.3 tonnes out of the 35 tonnes sold to Fidelity Printers.

The Zimbabwean government is targeting a production of over 50 tonnes this year, resulting from support for artisanal and small-scale miners and the expansion of mines by major mining houses. The government recently launched a US$10 million gold fund targeting small-scale and artisanal miners, with half going towards loans and the other half to funding more processing and buying centers.

The mining sector provides scope for development industries and positions Zimbabwe as a regional powerhouse, with economic linkages key in generating downstream and upstream markets. Mining is not limited to just exploration and mineral recovery. However, the call for ASM to increase their bankability of projects and move away from primary mining activities is crucial to sustain profitability and promote economic growth.

Equity Axis News