The  following  are  the  summarized industry  needs to build  Zimbabwe’s  mining  sector  and  advance  indigenous miner ownership  from  small  scale  production  to large.   There  is an  immediate need for  Government  to address  the  following  in order  to  facilitate indigenous sector growth: 

  1.  THE PUBLISHING OF REAL-TIME MARKET BASED PRICING FOR ALL MINERALS INCLUDING GEMSTONES Hundreds of  Millions of  United Sates  Dollars  in  Mining  Industry  Revenues are lost  Monthly  in Zimbabwe due to  the  unavailability  of  Real-Time Market  Based  Pricing  across  all  minerals and gemstones.      The 60 plus minerals currently  identified by  Government  must  receive up to  date  pricing  which  is  aligned to the  international  market  to  facilitate  indigenous investment  into our  diverse  mineral  and gemstone market.  This will  also enable the Banking  Sector  who  also  relies  on pricing  reports  to  support  the  sector  via loan programs as Banks cannot  issue  loans without  being  able to price  /  value the commodity  to  be mined and exported.   Favourable Export  sales  contract  negotiations  require  Published Real-Time Market  Based Pricing.   Small Scale miners  are  vulnerable  to predatory  buyers  across  all  minerals especially  the  Semi-Precious Gemstones  as  pricing  is not  widely  known. 
  2.  URGENT NEED  FOR  A LARGE NUMBER OF INTERNATIONAL  AND DOMESTIC BUYERS FOR ALL  60 PLUS  MINERALS  AND GEMSTONES




    There  is  an urgent  need for  Government  to attract  a  large number  of  international  and domestic buyers  to boost  competition and break  up the current  mineral  buying  cartels currently  operating  in Zimbabwe. 

    Having a  small  number  of  international  and domestic  mineral  buyers has  led to  the establishment  of  cartels who operating  under  different  names  are artificially  forcing  low  pricing  which in  turn  supresses  growth within a capital  intensive mining  sector.   A Published List  of  Buyers  along  with  current  pricing  is needed to help miners  to  plan  their  business investments and prevent  predatory  buying. 

    1.  THERE IS  AN  URGENT NEED TO  CREATE  A FUNCTIONAL  SEMI-PRECIOUS GEMSTONE MARKET PLACE Government  will  greatly  benefit  from  formalizing  a  semi-precious  market  or  trade  centre   Within  the  formalized market  places:  Miners will  be able to display  their  semi-precious  stones,  receive valuation appraisals,  while  multiple  buyers  are  onsite  to competitively  purchase  the stones  on display.   Currently  unfavourable  transactions occur  due to a  lack  of  competitive buyers,  often our  semi-precious stones leave our  nation  to be sold  outside of  Zimbabwe on the informal  market. 
    2.  URGENT NEED  FOR  100%  ALLOCATION  OF FOREIGN CURRENCY TO MINERS  ON ALL MINERAL AND SEMI-PRECIOUS STONE EXPORTS 

    Mining is heavily  capital  intensive with  all  machinery  requiring  foreign currency  for  both the purchase  of parts and production  equipment   In order  to promote indigenous miner  growth  all  of  the  foreign currency  generated  by  export  sales  is  required for  the  re-investment  into growth  and maintenance of  operations.      Currently  small  scale mining  operational  growth  is  supressed due to  the  inability  to obtain  foreign currency  to upgrade, replace  and maintain mining  equipment.    With the  recent  move to ban companies  from  obtaining foreign currency  on the parallel  market  it  is now critical  to grant  miners full  access to  the  export  foreign currency  they  earn via  their  own operation  in order  to  ensure  their  businesses  remain viable.   The current  RBZ  foreign currency  allocation of  foreign  currency  allocation  to mineral  exporters is not  viable and has led to  the  idling  of  mines  across  all  minerals.   Gold, Chrome and other  minerals have experienced drastic reductions in production  and will  continue  to experience further  decline until  this urgent  matter  is corrected  to allow  for  miners to manage their  own foreign currency  revenue  generation.




    NEED FOR  GREATER INVOLVEMENT OF THE BANKING SECTOR TO BOOST EFFICIENCIES  IN THE  PROCESSING  OF  EXPORT  DOCUMENTS   

    As per the  prior  miner  challenges documents,  RBZ  noted a  reduced export  period  to obtain CD1s in an effort  to increase exports, as noted  the times  were supposed to  be reduced  to 48hours.  However  at  MMCZ  CD1 processing  takes  between  10-12 days to process  and some  miners have been made  to wait  3 weeks for  their  export documents.   Again this delay  discourages  exports from  small  scale  miners as  the  finance cost  accrues  while  the  product  is waiting  at  the mine for  the  export  documents to  be processed.  Note all  transactions are based on  a prepayment further  increasing  the cost  of  purchasing  from  a small  scale  miner  further  deterring  repeat  purchases by  the  buyer.     As per international  standards,  Zimbabwean Banks  should process  the CD1 directly  in order  to  greatly  reduce  the processing  time and enable  the  foreign currency  generated by  the  exports to  enter  the banking  system.   

    1.  NEED FOR DOMESTIC & INTERNATIONAL FINANCING OPTIONS 

    Currently  MMCZ  does  not  accept  letters of  credit  or  other  internationally  recognized bank  financing  and export trade instruments.    In the case of buyers with strong banking relationships buyers should be allowed via RBZ to transact via their Pan African investment vehicles in order to secure long term contracts and consistent orders using the financing tools of international trade.  One example would be to utilize the investment financing arrangements RBZ has with African Export Import Bank.  In order to boost sector revenue growth, Government should allow our domestic banks to re-engage our sector and utilize financial instruments in order to facilitate international mineral and semi-precious stone export and trade. 

     7. INVESTMENT INTO MINING PRODUCTION STATISTICS   Investment must be made into statistical software or reporting to aid in the analysis of our mineral portfolios.  This investment will allow Government to track mineral and semi-precious export growth and help to target minerals and semi-precious stones which need further program development and investment.  Current published statistical data is not sufficient to support Mineral and Mining Program Development and the lack of details discourages major investment into the sector by the Investment, banking and financing industries.  It also places indigenous miners at a major disadvantage when seeking new mining investment as well during operational investment planning. 

     8. INVESTMENT INTO WEIGHBRIDGE, LOGISTICAL SUPPORT, TESTING CENTERS & CENTRALIZED CONSOLIDATION BUYING HUBS  In accordance to sections 43 & 44 of the MMCZ Act, the following will provide strong support for the small scale miner’s sector growth across all minerals and semi-precious stones:  Price Regulations of both the foreign and domestic market (Publishing Pricing)  The Establishment of Buying Hubs which would provide support and regional buying hubs within reach of buyers  Encourage local Beneficiation of Chrome Ore & Base Metals (via the establishment of Micro Smelters and Smelter Tolling Arrangements)  Support Logistics and the delivery of minerals to the end customer.    Another challenge noted by miners is the extremely high VID weighbridge charges: MMCZ announced in 2017 that a tender was issued to supply weighbridges near the mining towns in order reduce costs from the current average of $7.27 per tonne or $240 per truck which includes reweighs.  The hope was that the costs would come down to average $0.91 per tonne or average $30 per truck with reweighs.

    1.  SUPPORT THE ZIMBABWE MINERS FEDERATION FORMALIZATION PROGRAMS FOR ASM AND SMALL SCALE MINERS  

    This will  greatly  increase  the sustainable  mining  production of  all  minerals  and semi-precious  stones  nationwide by  indigenous  miners  while  ensuring  compliance  to regulation  and  safety  requirements.   Equally  important, it  will  aid towards our  Nation’s 2030 target  set  by  Zimbabwe’s  President  to become a  middle income  earning  country. 

    1.  PARTNER WITH ZIMBABWE MINERS FEDERATION & PROVIDE  FUNDING  FOR EQUIPMENT AND OPERATIONAL MANAGEMENT   ZMF via its affiliated  associations is  working  to formalize and boost  production of  its  growing  membership across the nation.   Government  can fulfil  its mandate of  promoting  production  growth of  the small  scale miner  by providing  operational  funding  to ZMF  as  well  as  by  dispersing  mining  equipment  and machinery  via ZMF.   The structures  within ZMF,  consisting  of  miners  provide  the federation  with  a strong  relationship base  as well  as an advanced  understanding  of  the needs  of  the sector  and  its members  making  the Federation an effective resource to  channel  investment  to  successfully  grow  the  sector.   In addition  to  the  formalization  drive, there  is a  need  to  fund  Mineral  Identification  and Mining  Technique  / Mineral  Specialization Programing.  This will  ensure  our  local  communities  will  benefit  and  exploit  their  own resources  which are  either  currently  being  ignored  or  suffering  from  predatory  buying  due to the  lack  of knowledge of  the value of  the minerals and semi-precious stones found in the local  communities. ZMF is embarking  on such programs and requires government  support  and  funding  to successfully  fulfil  this undertaking as  it  works to boost  provincial  and national  economic growth. 

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