ZMF proposes measures to protect small-scale Lithium miners
The Zimbabwe Miners Federation (ZMF) has proposed the artisanal and small-scale miners (ASM) in the lithium sector to partner with Kuvimba Mining House (KMH) for their ore processing to ensure predatory buyers and agents do not defraud the miners.
Speaking to this publication, the Zimbabwe Miners Federation (ZMF) President, Ms Henrietta Rushwaya, said miners were working towards modalities to prevent the theft happening in the chrome sector where ores are bought for a song.
“We propose that Kuvimba does toll processing for the ASM sector as this will enable us to benefit from the resource since we don’t want a repeat of what is currently happening in the chrome sector where there is a monopoly and the resource is being sold for a song. We are getting cleverer by the day and we cannot allow our miners to continue suffering when we are the owners of the resource,” Rushwaya said.
The country’s chrome market is dominated by predatory buyers who have formed domestic cartels which purchase chrome at an average price valued at 15% of export sales prices. With this in mind, ZMF wants to prevent the situation and see miners benefiting through value addition and beneficiation of the product.
Chrome ore producers face major growth challenges because there is limited access to the international export market, which reduces opportunities for chrome producers to earn much-needed foreign currency to help resuscitate operations.
Chrome ore production, which is mainly dominated by ASM, is now declining due to the low prices being paid by our local smelters and local internationally-based buyers to chrome producers.
As a result, Zimbabwe, as a nation, is losing significant foreign currency and tax revenues, while at the same time opportunities to reinvest in production growth and efficiencies are being lost.