Zim needs gold, gold and more gold
The nation is currently gripped by a challenging economic hysteria, with the currency continuing to depreciate. The nation may imagine the hard time that looms ahead if the challenges persist. But, what question does this really pose and what may be the accurate answer to it?
It is okay to try and leverage on economic fundamentals such as good infrastructure, but commendable as it may be, it’s no longer the ultimate bullet that can take down the obtaining challenges. If this was any other country, I would probably wish them the best and ask them to pray for divine solutions. However, this is Zimbabwe, one of the most blessed nations in the world. Where natural resources are vast in the ground, a naturally perfect climate exists and where one of the best human resource pools finds residence.
The answers to our prayers and the economic factors to our fiscal and monetary objectives were set at creation. The country boasts of one of the largest if not the largest gold reserves in the world. The history of money judges us every day for our continued struggles.
No money gods can justify our current economic woes even at the devil’s summit of disasters. In Zimbabwe, we have trillions of dollars worth of minerals buried in the ground, hundreds of trillions of dollars; I must emphasize. Our gold reserves are even nine times or more than Saudi ril reserves, nine times my people. Yet Saudi Arabia is one of the richest locations in the world based on its current economic activities.
What I write today has obviously been said and written before. All our academics have probably pointed to this at one point or another. Our economists can never share a more common thought than this one, Zimbabwe’s way out is the yellow precious metal and it is spread all over the country and waiting for our combined and comprehensive efforts. If I was the Minister of Finance and Economic Development, my next meeting would be with the Minister of Mines and Mining Development. I would tell him to mobilise every mineral resource that may be, towards one of the most revolutionary gold extractions the
world has ever witnessed.
For surface gold, I would immediately permit mass extraction combined with land reclamation under the watchful eye of the environmental authorities. As for subsurface resources, I would empty my bank account in pursuit of a multi-billion dollar war chest.
This move deserves a declaration of state of emergency, all security apparatus must be heavily involved in this process and ensure sanity at all levels.
Before anyone counters this move, I am very much aware the world market would obviously not entertain an enormous influx of gold supplies, as this would disturb the markets and send them tumbling including some currencies.
This is why I would ensure the next activities are government led and funded so as to separate extraction and trade. Government funded extraction has the option to reserve the resource and give it local circulation through the RTGS.
Any international payments in search of Zimbabwean resources would be asked to use US dollar or any other hard currency to buy our gold, that is our Zimdollar and pay for local goods thereof and whenever we are making international payments we would also facilitate the use of gold i.e. our RTGS.
Whoever will be earning Zimdollars, will be earning gold, gold that can even be withdrawn at gold dispensing ATMs.
With a well-coordinated effort, this should stabilise our currency in about six months, opening a new age of economic confidence which will translate into local spending. This spending will definitely attract huge investment in various goods and service manufacturing spaces. This investment influx will definitely be competitive and hence it will drive quality of local goods and services up and ultimately an improved labour compensation.
In the backdrop of this renewed economic climate, several other opportunities will definitely emerge.
Some may be as absolute as improved agriculture investment and production or as ambitious as world class infrastructure or as objective as investment in human capital development and innovation in the artificial intelligence driven space age.
That being said, I propose these steps that should be followed.
- Aeromagnetic Data Gathering or Compilation.
This project is long overdue, planes and satellites from the international market have
done comprehensive aeromagnetic studies of our resources. If we can’t negotiate for the
purchase or access to this data we need to get up there and execute our own studies with
urgency.
The most phenomenal factor about aeromagnetic studies is that, whatever can be seen to
exist from above then it does exist in a notable size to inform investment. This should
immediately point to Areas that need immediate attention or simply put, it will identify
and point to the low hanging fruits amongst our gold reserves. - Deployment of geologists to areas of interest. Once the low hanging fruits have been
pointed to, we should immediately deploy competent geologists to the GPS locations
identified so they may verify the existence of
Geological signs on the ground. Geological tests should be carried out and reports
generated to select areas where our Geophysicists should concentrate their instruments. - Deployment of geophysicists to areas of geological interest
Geophysicists should be able to point out drilling or trenching targets for sample
exposure and collection. These efforts should advise us of likely depths and ground
profiles we are going to face in our mining activities. This should also indicate water
challenges that our dear miners are likely to face.
This stage is critical to pointing out the design of the mines including the method of
extraction to be employed from one mine to another. - Deployment of trenching and drilling rigs to areas of geophysical Interest
Whilst instruments can predict the ground variables in our way, they can never be said to
be hundred percent accurate. The only sure way of knowing what is in the ground is
drilling or trenching. I have seen fights happening between water borehole clients and
borehole drillers or surveyors happening when a borehole is seen to be dry or blank.
Sadly, because of our economic challenges, surveyors tend to over promise the
capabilities of their equipment and hand out false reports to miners and farmers. Get this
from me, a borehole is just a bore – hole. Drilling machines are designed to drill the hole
not to find minerals or water.
There is no point in a driller guaranteeing the existence of water or a mineral. That
should be a red flag if ever you hear a driller saying they guarantee the existence of what
you are looking for.
I have seen Geologists making claims, like Pane mari apa mdhara chera, How can a mere
man standing on the surface be so sure of what’s underneath the ground.
All exploration services should end with drilling or trenching so as to extract ground
samples from the ground itself and see what’s underneath. If these results are matching
with what has been predicted by the Geologist and Geophysicists then the hope just gets
stronger and more realistic. - Laboratory analysis of all samples. Once the samples have been collected from the sub
surface, they should be taken to a competent laboratory for testing. The results from
these tests will then indicate what quantities and qualities should the miner hope for
when they kick start the mining processes.
Nicholas Bhero is an author, transformational speaker, business consultant and businessman. He is
the ,anaging director of Fincorp Advisory and chairman of Stir Zimbabwe Trust. He writes in his
personal capacity. He can be contacted on +263 778 600300 or nbhero@fincorpadvisory.co.za-The Herald
