Increase bankability of projects, artisanalminers urged

ARTISANAL and small-scale miners (ASM) have been urged to increase the bankability of
their projects and grow from primary mining activities and promote the value addition of
minerals and support economic linkages.

Last week, mining players held a symposium at the Zimbabwe School of Mines focusing
on improving the profitability of small-scale miners, financing and value addition and
beneficiation of minerals.

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

“Key to all discussions was the issue of increasing bankability of ASM projects with the
throughput being a decoupling of ASM from primary mining activity into mining activity
that is higher up in the value chain and supports economic linkages,” said Mr Moyo.

“Since the expertise of our participants encompassed a variety of backgrounds spanning
mining, finance, education, and beneficiation, this symposium allowed them to
understand the significance of actualising and sustaining the profitability of the ASM
sector so that it is bankable and is able to materialise further growth and development.

“As such, this symposium provided a platform for a diverse group of ASM participants to
discuss the dynamics of the mining industry’s change, mainly due to a rise of the ASM’s
contribution towards gold deliveries which now stands at more than 70 percent and the
implications of that trend.”

Officials in the small-scale mining sector attribute the increased gold output to
collaborations and continuous hard work by different stakeholders in the sector.
Artisanal and small-scale miners contribute over half the gold sold to Fidelity Printers,
with over 23,3 tonnes of the 35 tonnes delivered last year.

This year, the Government is targeting production of over 50 tonnes to be delivered as a
result of the support for artisanal and small-scale miners and the expansion of mines by
the major mining houses.

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 centres.
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The revolving loan facility will be broken into two, with US$5 million set aside for the
establishment of the artisanal gold and small-scale miners fund, while the remainder
will be for the gold service centres recovery facility.

The US$10 million was drawn from the US$956 million Special Drawing Rights received
by the country from the IMF as part of the US$650 billion disbursed by the global
financial institution to assist member States recover from the effects of Covid-19.

Mr Moyo also said the mining sector provides scope for development industries and
position Zimbabwe into a regional powerhouse.

He said economic linkages are key in generating downstream and upstream markets and
mining is not constrained to just exploration and mineral recovery.

“Value addition plays a role in benefiting minerals into products such as batteries,
jewellery, construction materials (quarry and granite), and securitisation (financial
products), creating employment and enhancing the gross domestic product,” he said. — The Chronicle