Small miners on a mission to increase gold production
Small scale and artisanal miners in Zimbabwe are targeting to increase production in the gold sector which accounts for most of the mining sector’s annual earnings.
Small and artisanal miners account for an average of 60 percent, since 2017, of the total annual gold deliveries to Fidelity Printers and Refiners (FPR). Some gold buying agents have in the last two years, significantly increased deliveries to FPR.
Figures show that leading gold agents Better Brands Jewellery (BBJ) delivered 1,1 tonnes of the precious metal to FPR in the past month alone.
BBJ, owned by Mr Scott Sakupwanya, said it is now targeting to sustain production and surpass the current levels for the country to benefit meaningfully from the precious mineral.
Last month, FPR officials told Parliament that they were worried about the decreased gold deliveries citing a number of factors on the low productivity.
Mr Sakupwanya, who is also the chairman of the National Gold Buyers Association of Zimbabwe (NGBAZ), this week said he shared the same concerns with FPR on decreased production but pledged to ensure BBJ and association members boosted gold deliveries. “In line with President Mnangagwa’s vision of a middle income economy by 2030, one of the biggest resources we have is gold and we need to do all we can to amass as much gold as we can.
“At BBJ, we are playing our part. It is not easy but it can be done.
Mr Sakupwanya said one of the biggest challenges was to stop gold leakages, which had seen the country losing billions of dollars over the years to unscrupulous dealers. “If leakages are stopped, gold will easily meet our country’s foreign currency requirements. We want to tell gold sector players that we can all achieve greater heights
without resorting to smuggling.
“We urge all gold players to make sure they deliver gold formally as this will help improve our foreign currency situation and indeed our economy,” said Mr Sakupwanya.
Zimbabwe Miners Federation (ZMF) chief executive Mr Wellington Takavarasha, recently said only 16 percent of small or artisanal miners were formerly registered.
This scenario meant the Government was not deriving optimum benefits from the illegal activities of small and artisanal miners, as most were not registered and had no identity.
Mines and Mining Development Minister Mr Winston Chitando said artisanal miners and the NGBAZ were key in the extraction of 100 tonnes of the precious mineral by 2023.
He said small-scale producers remained an integral part of FPR’s long-term growth.
“I am pleased that the organisation has braced itself for this noble cause because leakages are threatening gold deliveries,” said Minister Chitando.
While the country has been producing large quantities of bullion every year, deliveries to FPR have been low owing to smuggling and other nefarious activities.
Mr Sakupwanya said their aim was to ensure fair trade for the country to benefit from its gold resources.
“Our thrust is to ensure the country’s interests are protected in the trading of the yellow metal and our mandate is to raise bullion deliveries through solid and recognisable structures and to help with the monitoring and coordination of licensed players’ activities,” he said.
“NGBAZ has confidence in President Mnangagwa’s policies on mining and we support a self-regulated industry where indiscipline is not tolerated,” said Mr Sakupwanya.
BBJ was one of the three major gold suppliers but could do more with increased capital support.
With government recently pledging further support for FPR in the form of enabling policies such as “fair pricing and increased retentions for miners to incentivise production”, and stem side-marketing, Mr Sakupwanya also believes the current gold price rally can help Harare attain its medium-term goals.
As things stand, the precious mineral remains the country’s largest foreign currency earner — at nearly US$1,3 billion in 2018 – and while. On its own, the sector contributes 50 percent of Zimbabwe’s hard currency receipts.-The Herald
