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Artisanal miners push for ‘command mining’

They also requested Fidelity to increase gold buying points by contracting banks to be gold buyers.

SMALL-SCALE and artisanal gold miners want government's support modelled along the command agriculture fashion to help them maximise output and generate more foreign currency for the country.

The miners, who produced 65% of Zimbabwe's 36,5 tonnes of gold in 2024, also want Fidelity Gold Refineries to assist them with exploration and target extraction that protects the environment.

They also requested Fidelity to increase gold buying points by contracting banks to be gold buyers.

Environmental protection enthusiasts said the 5% incentive given to those producing more gold  must be extended to those engaged in responsible mining.

They also want the government to decriminalise gold trading to encourage the mobilisation of the mineral on which the country's currency is pegged. Under the Precious Minerals Act, it is an offence for an unlicensed individual to deal in gold.

The proposals were made at a gold miners’ stakeholder meeting in Kwekwe on Friday last week.

The meeting facilitated by the Zimbabwe Environmental Lawyers Association (Zela) and brought together the Parliament Portfolio Committee on Mines and Mining Development, Fidelity Gold Refineries, Zimbabwe Safety Health Environmental Council (Zimshec),  Zimbabwe Mining Federation, Environmental Management Agency, Women in Mining and the Zimbabwe Revenue Authority, among others.

"Fidelity should consider increasing its buying points from the current 20. This will make it accessible to more players. Government should consider decriminalising gold trade so that anyone can sell gold increasing the country's reserves," said Joseph Matangira, a small-scale miner.

This, he said, would enhance output as well as responsible extraction.

In command agriculture, the government gives inputs and loans to farmers payable after harvests, which has been successful in maize and wheat production.

Small-scale miners despite their output use outdated means and more often than not expose themselves and other citizens, wildlife and the environment to avoidable dangers.

In Kwekwe, artisanal miners tunnelled into a class.

Zimshec director, Philemon Mukuole, said if Fidelity Gold Refineries assisted artisanal and small-scale miners in expert exploration and target extraction, the environment would be protected.

"That will also enhance productivity and correct methods of mining which my organisation advocates for. Fidelity Gold Refineries should be part of the process as the end receiver. It must also see who is getting incentives because so many of the miners will bring illicitly sourced minerals if we are not careful,” Mukuole said.

Fidelity Gold Refineries managing director Peter Magaramombe said his organisation had asked some banks to be buying agents without success.

"We have taken note of this and we will engage more to find a solution. As for loans we do give those who have formalised their operations. We also buy gold from anyone but after the transaction, we assist them to formalise their operations," he said.

The meeting heard that several miners were not formalising to avoid the Zimbabwe Revenue Authority.

"We run away from them because they don't know what we go through to extract. We want to pay but when you are sick and go to a hospital without drugs you are better off avoiding the taxman," said a delegate.

Zela's objectives for the multi-stakeholder dialogue were to unpack the impacts of the gold incentive scheme and its impacts on revenue generation and sustainable mining in the artisanal and small-scale miners sector.

It was also to discuss how tax and gold incentives could be employed to promote a responsible gold supply chain in the same sector.was

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