$18 Billion COVID 19 Economic and Stimulus Package a challenge for ASM
The Deputy Minister of Mines and Mining Development Hon Polite Kambamura has encouraged Artisanal and Small-Scale Miners (ASM) to formalize for them to benefit from the government’s economic development and supporting schemes.
Rudairo Dickson Mapuranga
The artisanal and small-scale mining sector is the major contributor of gold produced in Zimbabwe accounting for more than 60 per cent while in chrome, the sector is very active speculatively accounting for over 70 per cent of chrome productions.
Responding to artisanal miners demands that the government should have considered that most small scale and artisanal miners would not be able to acquire the $18 Billion Covid-19 Economic and Stimulus Package pronounced by the government due to its conditions which are out of touch with the reality, Deputy Minister Kambamura said the facility was managed by the bank thus miners were compiled to standard bank loan conditions.
Kambamura also advised small scale and artisanal miners to formalize their operations by registering with the Ministry of Mines and Mining Development in order to benefit from such government supporting packages.
“The facility is managed by the bank and interested parties should borrow according to standard bank loan conditions. We also encourage the ASM sector to formalise by registering their operations with the Ministry of Mines and Mining Development, other government departments and opening bank accounts.” Hon Kambamura said.
However, Speaking to Mining Zimbabwe Norton Miners Association Chairperson Privelage Moyo the government is not supposed to generalize conditions when dealing with small scale and artisanal miners because most of these miners need government support although they cannot meet many of a modern business requirement.
Moyo said it was important for the government to look at who was receiving the loan and the state that the particular business is operating in before coming in with conditions that are difficult to match for national fiscus contributing businesses.
The Norton Miners Chairperson also said that stringent conditions should not be required for small scale and artisanal miners because the country is not economically free for businesses to operate as big corporates due to the trade embargos imposed on the country.
“As small-scale, we might not have all the requirements that they want. They should look at who they want to give a loan and not to generalize the conditions. If you ask for stringent conditions from small scale miners, the country is not economically independent as we speak because it is under sanctions. We must relax our conditions when speaking of small scale miners.” Moyo said.
The land which is owned by small-scale and artisanal miners should be considered as collateral because the land on its own is an asset, Moyo said.
“What govt need to realize is that land on its own is an asset and can be used as collateral, because in the mining sector before I get the resource I get the land, so that land is already valuable on its own that land already can be used for any other project that they need to consider.” He said.
Below are the conditions that are given to small scale miners
- Support letter from Zimbabwe Miners Federation (ZMF)
- Support letter from The Ministry of Mines and Mining Development
- Signed Extract Board Resolution
- Draft agreement from lenders
- Company Documents-CR 14, Memos and Articles of Association 6
- Detailed Business proposal
- Audited financial statements for the past 3 years-Provisional statements will be required
where audited statements are not available
- 3-year cash flow as well as underlying assumption-accounting for the principal and interests’ repayments
- Latest aged analysis of trade receivables and payables
- Latest Management of Accounts
- Full details of borrowing position indicating the name of lenders, types of facilities, amount approved, date approved, current utilization, outstanding balance, arrears report, repayment terms, expiry date, due date, full details of securities, collateral provided, and debt management strategy in case of arrears.