Proposed ban on foreigners from small-scale mining excites industry

Business
Young Miners Foundation

The Young Miners Foundation (YMF) says the move to amend the Mines and Minerals Act, which will see the banning of foreigners from undertaking small scale mining activities will help to empower locals.

Mines and Mining Development minister Winstone Chitando recently announced that the Mines and Minerals Act would be amended to reserve the small-scale mining sector to locals.

In the gold sector, small-scale miners contribute 60% to total production.

Payne Kapfuwa, the YMF chief executive officer, said the barring of foreigners from the sector will make it easier for locals to establish themselves in the industry.

“The decision made by the government to ban foreigners from participating in small-scale mining will go a long way in promoting indigenous players in small-scale mining,” Kupfuwa told Standardbusiness.

“Well, one of the advantages it is for us to actually have a footing or a place in the mining industry brought by this ban is that the entry requirements won’t be competitive.

“If small-scale mining is just left for locals, then even the entry requirements, the registration expectations and the requirements won’t be that high and won’t be that difficult for local Zimbabweans because they will be made for the small player.”

He said the changes will give small-scale miners an opportunity to engage in mining exploration on smaller reefs that were consistent for production.

“This is because you realise that these big players, when they come, even when you give them an opportunity to get into a small-scale mining, some of the reefs that they will end up mining on are small reefs, which can only be consistent for us,” Kupfuwa explained.

“When it’s gold mining, there are reefs that are consistent for commerce, which are for survival and, of course, business-inclined for the small player.

“But then, if you open a gap for the foreigners, they are going to come and grab those areas; they’re going to come and disturb even the fabric of our social survival within the mining communities.”

He said small-scale mining was contributing immensely to Zimbabwe’s gross domestic product.

“We are contributing 60% of the gold deliveries that are being taken to Fidelity (Fidelity Gold Refinery (Pvt) Ltd) of the overall percentage of gold that is being delivered. We are contributing 60%, small scale mining, which means small-scale mining in itself, has got so much potential,” Kupfuwa said.

“It’s got so much capacity; we can’t have it destroyed by major players coming in to want to also get into the same mining.”

Tina Kadhau, a proponent for women in mining, said the proposed amendments presented a unique opportunity to empower local women in the sector.

 “I am of the view that banning small-scale mining to foreigners only can create great opportunities for locals, particularly women in that sector.

“In Zimbabwe we have women who are thriving with success stories through hard work and resilience,” Kadhau said.

“These women have broken the stereotype and are excelling.

“The move has positive effects, such as empowering the local women in mining through economic empowerment, job creation and improved livelihoods.

“Local women have the potential to fill in the gap that would have been created if they had the required finances and mining equipment.”

She said there was need to address challenges facing women in mining such as limited access to training and equipment, claim registration and the statutory fees, which most women cannot afford.

“There is need to provide sufficient funding and also communities need to be conscientised on the issues of discrimination against women in the mining industry, thereby addressing social and cultural barriers that affect women’s participation in the small-scale mining sector,” Kadhau added.

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