Gvt sets aside $2.7 billion for small scale miners
The government of Zimbabwe has set aside ZWL$2.7 billion to facilitate a complete formalisation of the Artisanal and Small-scale miners (ASM) industry.
Presenting the 2024 National Budget which ran under the theme “Consolidating Economic Transformation”, the Minister of Finance and Economic Development Prof Mthuli Ncube the government was going to support the process of formalisation as well as promoting sustainable and responsible mining.
He said the government was going to also capacitate the ASM by introducing affordable loan schemes for them to mechanise their operations and improve working capital.
“The small-scale miners have played a pivotal role in the mining sector contributing significantly to the overall mineral output over the years. Their success is partly attributable to Government support through the provision of mining equipment and technical assistance.
“As part of the support, the Government is now facilitating their formalisation, as well as to promote environmentally friendly, safe and sustainable mining methods. The government will also capacitate the Mining Industry Loan Fund through affordable loan schemes to support small-scale miners to mechanise their mining activities, as well as to improve their working capital positions.
“To support these initiatives, Z$2.7 billion has been set aside under the 2024 National Budget,” Prof Mthuli Ncube said.
Small-scale miners are the biggest gold and chrome producers in the country accounting for over 60 percent of the mineral production.
The ASM sector has been performing significantly with statistics proving that there is a high prospect of the ASM graduating to become the biggest force in the mining sector in Zimbabwe.
ASM activities are as important as large-scale mining activities, particularly in terms of the number of people employed. ASM can play a crucial role in poverty alleviation and rural development. Most of those involved are poor and mining represents the most promising, if not the only, income opportunity available. The performance of the gold sector in Zimbabwe indicates that the ASM if properly nurtured is the next big deal for mining prosperity in Zimbabwe. However, safety remains a concern in the sector as the majority of deaths were experienced in the sector.