Zimbabwe Miners Federation (ZMF), has drawn down $80 million of the $150 million Gold Development Initiative Fund to ramp up production in the sector and strengthen their chances of reaching the 30 tonnes target of gold this year.

Already, 240 miners have benefited from the fund.

This comes after the small scale miners produced 4, 1 tonnes of gold in the first quarter of 2018.

Some artisanal miners’ target of 20 tonnes in 2018 may be realised given the rainy season which slowed down production has come to an end.

Reserve Bank of Zimbabwe (RBZ) governor, Dr John Mangudya, told The Sunday Mail Business that Government continues to empower the miners and increase production in the sector.

“Artisanal miners have so far drawn down US$80 million out of the Gold Development Initiative Fund to increase production in the gold sector. We have and we continue to provide the artisanal miners with all necessary funding support as they are the ones who are producing most of the gold in the country,” said Dr Mangudya.

He said: “We have managed to increase the fund to US$150 million from US$80 million last year to ramp production thereby increasing exports and employment and earn so much needed foreign currency. By so doing we will improve the economy.”

Meanwhile, ZMF — an umbrella body for almost 8 000 small-scale miners, expressed delight over the US$150 million facility being organised by the central bank, which helps to reach the target.

ZMF chief executive officer Wellington Takavarasha, recently told this publication that they were happy with the support they were getting from Government.

“The US$150 million is helping us to mechanise and improve on our production. We have been suffering due to lack of machinery but given the support, we expect ourselves to raise the bar way higher,” said Mr Takavarasha.

More so, Government has been working on a deal that would have seen a Chinese firm, the XCMG Group, supplying mining equipment worth US$100 million to local artisanal miners so that they ramp up gold production.

The two facilities are expected to capacitate small-scale gold miners so that they increase output.

Fidelity Printers and Refiners (FPR) has paid out US$339 million for the purchase of 7, 3 tonnes of gold in the first quarter of this year, as the country sets a firm foundation for the attainment of the 30 tonnes gold target. Gold miners delivered 2,74 tonnes of gold in March, two tonnes in February and 2,6 tonnes in January.

The slight blip in February was attributable to incessant rains that hit the country.

Despite the rains in February, overall gold deliveries in the first quarter of this year are just 2,6 tonnes less than the 9,9 tonnes delivered in the first half of last year.

Small-scale miners — who have become the biggest contributors to gold mining since last year when they delivered 53 percent of 24,8 tonnes achieved — continue to dominate deliveries after producing 4,2 tonnes of gold.

Large-scale producers, who are highly mechanised, delivered 3,1 tonnes of gold.

In March alone, small-scale miners delivered 1,73 tonnes while primary producers came in with 0,95 tonnes.

Approximately US$121 million was used by FPR, a gold buying arm of the RBZ, to buy the 2,74 tonnes of gold in March.

In February, FPR paid almost U$110 million and about US$108 million in January. It is critical for gold miners, particularly small-scale miners, to embrace the payment method of 70 percent US dollars and 30 percent bond notes through bank transfers.

FPR said miners should note that the 30 percent bank transfer plays a key role in availing 30 percent of the gold value in foreign currency, which is utilised to fund other critical national requirements.

- Sundaymail