ZIMBABWE'S small-scale and artisanal gold mining sector (ASM) which previously was largely unfunded, is projected to register a massive growth as more players along with government efforts steps in to fund the sector in a bid to boosts mineral production and revive the economy.

Artisanal and Small-scale mining refers to informal mining activities carried out using low technology or with minimal machinery. The term broadly refers to mining practised by individuals, groups or communities often informally (illegally) and in developing nations.

ASM can potentially contribute to development by providing employment, increasing local purchasing power, stimulating local economic growth and slowing urban migration. However, this sector when poorly managed, also creates social, environmental and financial challenges that may undermine development.

In Zimbabwe, the mining and agricultural industry are the backbone of the economy, and in over a decade of economic recession, the two industries have been instrumental in driving the economy with over billions of dollars realised through export earnings, particularly gold and tobacco exports.

GOLD

Figures show that small-scale miners and artisanal gold miners have in the turn of the year emerged as the cornerstone of the sector after smashing production records, producing and delivering more gold than large-scale mining houses, statistics have showed.

According to recent statistics, gold deliveries from both small scale miners and primary producers increased in the month of July as compared to the same period last year.

The key highlight is that the total tonnage recorded for small scale miners in the month of July rose to 2.46 million tonnes from 1.12 million tonnes in 2017 while that of primary producers rose to 1.09 tonnes from 0.96 tonnes.

A total of 13.49 million tonnes was produced by small-scale miners in the seven months period to July, while primary producers contributed 7.32 million tonnes.

Earlier on in January, Mehluleli Dube, head of gold production at Fidelity Printers and refiners, disclosed that large scale mining companies produced and delivered 11,6 tonnes of gold between January and December 2017, while small-scale producers, who are widely considered as invaders, criminals, chaotic and disorganised, delivered 13,2 tonnes of gold during the period.

Comparative, gold production is expected to smash all-time records by the end of this year, projected at over 30 million tonnes.

There is a saying that ‘there is strength in numbers.’ This has undoubtedly benefitted the immense contribution by small-scale miners, but without substantive policies and initiative from the government, just like the prior years, potential would not have been fully realised.

GOVERNMENT’S ROLE

Government has supported the artisanal miners who have adopted improved mineral processing technology through a $40 million gold development facility by the central bank, targeting 179 small-scale miners.

Fidelity Printers and Refiners (FPR) on behalf of the Reserve Bank of Zimbabwe (RBZ), availed to gold producers the Gold Development Initiative Fund (GDIF) which contributed to the increased production in the yellow metal sector.

The loan facility is primarily for the acquisition of gold mining plant and equipment in order to enhance gold production by miners. This has largely benefitted small-scale mining sector that has over the years remained undocumented and lacked financial assistance.

FINANCIAL SECTOR

Recently, Small-scale miners represented by the Zimbabwe Miners Federation (ZMF), signed a deal with financial services provider, Metbank Limited that will see the later coming on board as the miners’ official financial advisor.

The bank will also take up a fund raising role for the miners’ operations as well offer general banking services to the sector that is largely unbanked.

ZMF president Ms Henrietta Rushwaya, hailed the coming in on board by Metbank as in tandem with government’s efforts to support the sector which has remained informal despite the continued growth of its role in the country’s overall mineral output.

“As ZMF, we are privileged to be associated with Metbank,” said Ms Rushwaya.

“They have come on board at the right time especially when Government’s perception, under the new dispensation, on small scale miners has changed for the good.”

CHROME

Small-scale miners who account for a larger part of Zimbabwe’s ferrochrome producers are expected to more than double their production following investment commitments from Chinese investor, Tsingshan, as well as a funding deal with South Africa’s Moti Group set to be signed next month.

The Chinese investor is set t built a $1 billion stainless steel plant while the Moti Group, which operates African Chrome fields Ltd in Zimbabwe, launched a $50 million facility for small-scale chrome mining development in Zimbabwe towards the end of the year 2017.

Chrome output by small-scale producers is projected to hit one million tonnes, a triple jump from 200 000 tonnes at present, under a funding deal with South Africa’s Moti Group.

Wellington Takavarasha, the CEO of the Zimbabwe Miners’ Federation (ZMF), an association of artisanal and small-scale miners, said the deal would be signed next month and the Group will also be buyers of chrome, a move which will ease market constraints for the miners.

 “The Moti group will also be the buyers of the chrome that we will produce so this will improve the production in the country and create a lot of revenue,” he said.

The deal involves the provision of mining equipment, the establishment of six hubs for the issuance of permits and delivery of chrome and the provision of technical assistance.

“We are now set to triple output or even more of chrome and we will be targeting around one million tonnes of chrome ore,” Takavarasha said.

“This means small-scale miners have been fully capacitated and we are likely to witness a boom in both production and employment creation of small-scale chrome miners.”

Mines and Mining Development Minister Winston Chitando previously highlighted that small-scale mining is key to Zimbabwe’s overall mineral production as the country’s geology entails that there are some mineral deposits that are not economically viable for mining by big conglomerates.