Gvt should stop Chinese’s control of ASM sector

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Privelage Moyo
Privelage Moyo - Chairman of the Norton Miners Association

The government of Zimbabwe should curb Chinese’s interest in controlling the Artisanal and Small Scale Mining (ASM) sector by enacting laws that strip foreign-owned companies from having an upper hand in the sector, Norton Miners Chairperson, Mr. Privelage Moyo has said.

Rudairo Dickson Mapuranga

There are fears that the Chinese have moved in to control the country’s small scale and artisanal mining sector by controlling prices of minerals like chrome and having control over the retailing equipment supplying sector where miners are forced into unsustainable deals.

According to Moyo, foreign equipment suppliers or supplying agents should not be allowed to venture into wholesaling or retailing of mining equipment as this has prejudiced the country of millions of dollars due to the companies’ ability to post profits to mother countries.

Moyo also said that buying of chrome in the country should be controlled for money to gain full value for their mineral production.

“Small scale and artisanal miners are enclosed in a bundle, the Chinese sale equipment at their own prices and are also buying chrome at predatory prices,” said Moyo.

The Norton Miners Chairperson said the Chinese were failing to invest in the production sector because they were comfortable to make Zimbabwe and Africa at large as their retail enterprise.

Moyo said it was of paramount importance for the country to enact laws that prohibit foreign investors to invest in the retailing of mining equipment but to invest in equipment manufacturing.

“The Chinese should not retail in Zimbabwe, what has been manufactured in should be retailed by a Zimbabwe by a Zimbabwean in order to empower citizens. The Chinese must come and manufacture here, they are not supposed to be allowed to sell on retail.” Moyo said.

The Zimbabwe Miners Federation (ZMF) has earlier implored the Ministry of Mines and Mining Development to reserve small scale-mining for locals to ensure that they are not eclipsed by foreign-owned conglomerates.

Currently, small-scale gold miners deliver the bulk of the metal — more than half of total production — compared to the large-scale sector.

Some experts say the geology of the country makes some deposits best suited for small-scale mining.