In an endeavour to curb illicit financial flows through the selling of gold through informal markets, the government has announced it will establish a gold service centre in Mazowe in December.
Rudairo Mapuranga
Mazowe is known for the heavy presence of artisanal and small-scale miners, the majority of whom have no capacity to process their minerals.
This has created a situation where the miners process their ore through third parties most of whom are believed to be smuggling the gold out of the country.
Zimbabwe’s mining sector, especially the extraction of gold, has lately been characterised by illicit leakages of gold and it is believed the establishment of gold centres could help restrict obscure movement of the yellow metal. The gold sector carries a huge potential for the Zimbabwean economy with small-scale miners producing (at this moment in 2022) over 67 per cent of gold receipts which has necessitated consistent efforts to support their production.
Speaking at the launch of Zimbabwe Miners for Economic Development (Miners for ED) Mashonaland Central Chapter at Jumbo Mine Stadium in Mazowe, the Minister of Mines and Mining Development Hon Winston Chitando said the government was going to establish a gold service centre to assist miners in processing their ores.
“In December to support the President’s vision for the country to become an upper middle-income economy by 2030, we are going to establish a gold service centre here in Mazowe to assist our miners to process their ores,” Minister Chitando said.
Speaking at the same event Zimbabwe Miners Federation (ZMF) Mashonaland Central Province Chairperson Christine Munyoro commended the government for the gesture saying miners in Mazowe have been losing out while processing ores at some private mills.
“Our miners were losing a lot of money while processing at private mills, the move by the government is welcomed and it will be of benefit to us and the government because all the gold will be sold through formal channels,” Munyoro said.
Gold service centres are aimed at giving the miners access to equipment and transportation services. The Cabinet has approved proposals for the establishment of gold centres across the country. Areas targeted for the facilities include Makaha, Odzi, Mount Darwin, Shamva, Mazowe and Silobela.
The country’s gold buyer and exporter, Fidelity Gold Refinery (FGR) officials will also be stationed at the centres directly or through approved buying agencies to buy all the gold produced.
Traditionally, Zimbabwe issues 2 500 mining titles per annum but due to increased appetite to invest in mining, applications have soared to about 15 000 per annum, a 500 per cent increase. Zimbabwe is home to the world’s third-biggest reserves of gold, platinum, diamond, chrome, iron ore, coal, lithium, and other minerals and a revived minerals sector would go a long way in fuelling an economic turnaround.