Maravi

(HERALD) Gold mining sector gets boost

Gold mining sector gets boost
Saturday, 02 June 2012 13:09
Kuda Bwititi

The Ministry of Mines and Mining Development has struck a partnership with financial institutions to unlock funding for small-scale miners through the revitalisation of the Mining Industry Loan Fund (MILF), raising hopes that the country will significantly increase its gold output.

The bulk of the fund is set to be channelled to gold mining and some of the financial institutions that have agreed to support the initiative include: Tetrad, BancABC, ZABG, POSB, ZB Bank, Stanbic, TN and CBZ.

Speaking during the launch of MILF in Bubi district recently, Mines and Mining Development Minister Dr Obert Mpofu said the support given by the financial institutions is set to change the face of small-scale mining in the country, as flexible funding will help miners purchase equipment and increase production.

He said the support by banks would ably complement the $1 million injection that Government had provided to the MILF.

“Our own ministry provides a revolving fund of $1 million to the small-scale miners through MILF. However, this figure is going to be increased because of the pledges that we have received from banks to support the sector.

“The sector is going to be revitalised as these banks will provide flexible access to capital to enable miners to buy mining equipment and get the assistance that they need to enhance production through more advanced ways of mining as compared to the rudimentary methods of using picks and shovels,” he said.

Minister Mpofu said support to small-scale miners would help Government to continue to achieve the London Bullion Market Gold Exchange mandatory requirement of at least 10 tonnes of gold per year, which the country had missed in the past three years.

“We do not want to get to the situation of 2008 when we were removed from the London Bullion Market (LBM) because we failed to reach 10 tonnes of gold. Last year, we managed to return to the LBM by producing about 15 tonnes. We want to continue on this path and we hope to get to as high as 50 tonnes,” he said.

He said Government would implore stakeholders in the mining industry such as the ZMDC (Zimbabwe Mining Development Corporation), the MMCZ (Minerals Marketing

Corporation of Zimbabwe) and big mining companies to provide further support to the MILF.

Representatives of the respective banks said the loans would be readily available to miners at reasonable interest rates, once they conformed to requirements.

Tetrad corporate banking general manager Mr Ted Mutongwe said the firm had availed an initial fund of $1 million to provide support to miners through its Resource

Department.

“We have availed $1 million to finance the acquisition of equipment for small-scale miners. Our Resource Company will also assist in training and providing technical skills to support this facility. We do not want people to fail because they do not have the required know-how,” he said.

Mr Mutongwe said Tetrad had been licensed to buy and mill gold so as to assist small-scale miners to grow.

BancABC corporate affairs manager for Matabeleland branch Mr Mpumelelo Mkwananzi said the bank would provide capital collateral free.

“We have a repayment period of 12 to 36 months and there is no requirement of collateral if the project is satisfactory,” he said.

ZB Bank also made an agreement with the Zimbabwe Miners’ Federation to provide machinery on hire purchase and $5 000 working capital for small-scale miners.

Labels: GOLD, OBERT MPOFU

posted by MrK @ 12:21 AM