Parly encourages Eldorado Mine to invest in Exploration, CSR
The Parliamentary Portfolio Committee on Mines and Mining Development has encouraged Eldorado Mine to invest in exploration and mine expansion to increase their contribution to the US$4 billion gold industry by 2023.
Rudairo Mapuranga
The Edmond Mkaratigwa led Portfolio Committee on Monday began an enquiry into the gold mining sector for the year 2022 to envisage what gold mines and stakeholders are doing towards the attainment of the US$12 billion mining industry by 2023. This has seen the Committee visiting and touring Eldorado Gold Mine in Chinhoyi.
Speaking to Mining Zimbabwe after touring the Mine Hon Mkaratigwa said it was of importance for the mine to invest in exploration to increase their contribution towards the attainment of the US$4 Billion gold industry.
“As the Portfolio Committee we started an inquiry into the gold mining sector which has taken us to gold mining centres as well as mining sites, this has seen us at here Eldorado Mine. Basically, to appreciate what Eldorado mine is contributing towards the US$12 billion mining industry by 2023, specifically their contribution towards the attainment of the US$4 billion earmarked for the gold sector. In our discussions we have realised that they are producing an average 18 kgs per month which is reasonable. We encourage them to continue to do exploration and mine expansion in order to ramp up their production and increase their contribution,” Hon Mkaratigwa said.
However, Hon Mkaratigwa said the Portfolio Committee was disappointed with the way the mine was run in terms of infrastructure and Corporate Social Responsibility (CSR). He said that the mine’s infrastructure leaves a lot to be desired a situation that has health complications on the mine employees.
“In our discussions we have realised that while their output is reasonable their mining operations are solid their infrastructure leaves a lot to be desired. We encourage them to make sure they put up solid and well properly constructed structures that safe guard the health of their employees. We have realised that their salaries are a bit on the low side though we appreciate that their able to give 50 percent in US$ to mitigate on inflationary effects on their employees. However, more challenging is the fact that they do not have staff housing for their employees, they using accommodation in nearby farms. They should also look at Corporate Social Responsibility. We think they can do better in terms of staff housing. In terms of medical infrastructure, right now they rely on Chinhoyi Hospital which is a bit distant,” Mkaratigwa said.
Hon Mkaratigwa also said that the Committee’s assessment has indicated that the company has the ability to invest in CSR and internal responsibilities.
“Talking to them we realised that what they are spending towards their salaries and waging bill and their expenses is plus or minus 10 percent, in terms of revenue generation I think they have got a lot at their disposal for use to augment their CSR and even their own internal responsibilities,” Mkaratigwa.