Opinion / Columnist
Mining can drastically change our economy
28 Jan 2015 at 08:56hrs | Views
I am quite delighted and overwhelmed about the recent developments taking place in the mining sector. As of now, mining is the backbone of the economy; hence, all efforts should be put towards developing this sector as a way of trying to boost our ailing economy.
The government is working flat out to revive the mining industry which is currently the economy's driver. Speaking in an interview with the local press, Mines and Mining Development Minister, Walter Chidhakwa, confirmed that a $100 million deal between the Zimbabwean government and the Chinese government was recently signed and is at an advanced stage of being delivered.
Minister Chidhakwa noted that long small scale miners have been struggling to acquire appropriate equipment for mining operations; therefore, the $100 million deal will be used for purchasing mining equipment.
It is imperative to note that once modern equipment is purchased for the artisanal miners, the country's Gross Domestic Product (GDP) will be boosted and the level of gold production will also increase. Latest reports have it that small scale minors contribute 17 percent of the GDP. When mining tools are availed, labour constrains are reduced resulting in increased levels of production.
It is well known that small scale miners have been using buckets to lift ore to the surface. The maximum load that can be lifted by a bucket is only 20kgs, which is time consuming and inefficient. Use of machinery will also assist in improving the quality of gold produce, and offering of far more economically proficient and environmentally friendly solution. The mining environment must always also be protected from any form of damages. Use of modern mining technology permits effective mining and protects residents from pollution that may occur during mineral extraction.
As a nation, we should be united and stand firm in order to rebuild our beloved Zimbabwe. Mining has the potential to shape and affect economies directly and indirectly. It brings employment, government revenue and opportunities for economic growth.
It is important to note that the mining sector contributes directly to the government through royalties. Small scale and big scale miners pay gold royalties of 5 and 7 percent respectively to the government through the Ministry of Finance and Economic Development.
Currently, development is a necessity for Zimbabwe. The public sector, private sector and business community should put their heads together and focus attention on mending the economy urgently.
The mining industry should act as an engine for growth and poverty reduction. One of the plans of Zimbabwe Agenda for Sustainable Socio-Economic Transformation (Zim-Asset) is to promote the informal sector. Mining should ensure that more benefits of the mining remains within the local economy and contribute to the social betterment of the local people.
The government has also identified certain mining companies to participate in eradication of poverty in communities they operate their businesses from.
This is pursued through Community Share Ownership Trust, whereby mining companies contribute 10 percent of their monthly revenue to assist the local community through road rehabilitation, borehole drilling and construction of schools.
Blanket mine in Gwanda, Matabeleland South Province, has been complying quite well with this policy. This miming company has been active in developing the community of Gwanda. A lot of classroom blocks were built and a number of boreholes were also drilled for the betterment of the people of Gwanda.
The World Bank is also said to be in a process of disbursing financial resources that were raised under a fund to support the economic blue-print, Zim-Asset. A number of projects under Zim-Asset are currently in progress.
The projects currently in progress include the Kariba South Power Station Extension project and road rehabilitation programmes among others. It also noted that the World Bank will continue looking for more donors throughout the year, in order for them to raise $100 million to support investment of different projects of Zim-Asset.
The government is working flat out to revive the mining industry which is currently the economy's driver. Speaking in an interview with the local press, Mines and Mining Development Minister, Walter Chidhakwa, confirmed that a $100 million deal between the Zimbabwean government and the Chinese government was recently signed and is at an advanced stage of being delivered.
Minister Chidhakwa noted that long small scale miners have been struggling to acquire appropriate equipment for mining operations; therefore, the $100 million deal will be used for purchasing mining equipment.
It is imperative to note that once modern equipment is purchased for the artisanal miners, the country's Gross Domestic Product (GDP) will be boosted and the level of gold production will also increase. Latest reports have it that small scale minors contribute 17 percent of the GDP. When mining tools are availed, labour constrains are reduced resulting in increased levels of production.
It is well known that small scale miners have been using buckets to lift ore to the surface. The maximum load that can be lifted by a bucket is only 20kgs, which is time consuming and inefficient. Use of machinery will also assist in improving the quality of gold produce, and offering of far more economically proficient and environmentally friendly solution. The mining environment must always also be protected from any form of damages. Use of modern mining technology permits effective mining and protects residents from pollution that may occur during mineral extraction.
As a nation, we should be united and stand firm in order to rebuild our beloved Zimbabwe. Mining has the potential to shape and affect economies directly and indirectly. It brings employment, government revenue and opportunities for economic growth.
It is important to note that the mining sector contributes directly to the government through royalties. Small scale and big scale miners pay gold royalties of 5 and 7 percent respectively to the government through the Ministry of Finance and Economic Development.
The mining industry should act as an engine for growth and poverty reduction. One of the plans of Zimbabwe Agenda for Sustainable Socio-Economic Transformation (Zim-Asset) is to promote the informal sector. Mining should ensure that more benefits of the mining remains within the local economy and contribute to the social betterment of the local people.
The government has also identified certain mining companies to participate in eradication of poverty in communities they operate their businesses from.
This is pursued through Community Share Ownership Trust, whereby mining companies contribute 10 percent of their monthly revenue to assist the local community through road rehabilitation, borehole drilling and construction of schools.
Blanket mine in Gwanda, Matabeleland South Province, has been complying quite well with this policy. This miming company has been active in developing the community of Gwanda. A lot of classroom blocks were built and a number of boreholes were also drilled for the betterment of the people of Gwanda.
The World Bank is also said to be in a process of disbursing financial resources that were raised under a fund to support the economic blue-print, Zim-Asset. A number of projects under Zim-Asset are currently in progress.
The projects currently in progress include the Kariba South Power Station Extension project and road rehabilitation programmes among others. It also noted that the World Bank will continue looking for more donors throughout the year, in order for them to raise $100 million to support investment of different projects of Zim-Asset.
Source - Peacemaker Zano
All articles and letters published on Bulawayo24 have been independently written by members of Bulawayo24's community. The views of users published on Bulawayo24 are therefore their own and do not necessarily represent the views of Bulawayo24. Bulawayo24 editors also reserve the right to edit or delete any and all comments received.
