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Daniel Nemukuyu Harare Bureau
THE government has temporarily shut down 11 gold mining companies – including three in Matabeleland South – for non-compliance with the mining regulations in a bid to curb gold leakages and increase gold production.Gold leakages were cited as the major cause for gold production decline with annual gold sales dropping from 27 tonnes in 1999 to 12 tonnes per year now.

The government’s target is to put gold production levels to 30 tonnes per year by 2018.

The Cabinet this week approved measures by the Ministry of Mines and Mining Development in conjunction with the Ministry of Finance and Economic Development aimed at increasing gold production and ensuring effective accountability for sale of gold to Fidelity Printers and Refiners.

The measures include the establishment of a gold compliance enforcement co-ordinating unit comprising the police, Reserve Bank of Zimbabwe, Environment Management Authority, Zimbabwe Revenue Authority and three government ministries of Mines and Mining Development, Finance and Economic Development and Local Government, Public Works and National Housing.

Officers from the various government departments and law enforcement will form teams that will monitor activities at specific gold mines to ensure that all the extracted gold is properly accounted for.

The government will also establish Gold Service Centres to cater for small scale miners, with the first one expected to be established at St George’s in Zhombe.

Mines and Mining Development Minister Walter Chidhakwa said at a Press conference yesterday that the 11 companies were found guilty of non-compliance with the gold mining and marketing procedure, with most of them failing to keep proper records of minerals being extracted and sold.

Some records of extracted gold did not correspond with the mineral that was sold at Fidelity Printers and Refineries, meaning there was a serious leakage.

“Following the Compliance Monitoring and Enforcement operations conducted by the Reserve Bank’s Exchange Control over the last three months, a number of small scale gold producers were found to be non-compliant,” said Minister Chidhakwa.

“Some of the cases at our disposal include, failure to keep mining records as required by law, with some being found guilty of engaging in illegal gold sales.”

The mines whose operations were suspended are: Taford Milling Centre (Kadoma), Hollies 6 (Kadoma), Munyati River Ranch Mine (Kwekwe), St Kilda 5 Mill (Pickstone), M Mubaiwa Milling (Munyati), Croco 1 and 2 (Esigodini), Willow Ash Mine (Fort Rixon), Makwe 24 Mine (Gwanda), Flora Mine (Filabusi), Huggies 10 (Kadoma) and Timsite Custom Milliing (Bindura). The suspension of the 11, according to Minister Chidhakwa, could only be lifted if the government was satisfied that the companies fully complied. The government will not allow any mining company to be connected to the Zimbabwe Electricity Transmission and Distribution Company’s power grid without authorisation.

Minister Chidhakwa said the government will establish Gold Mobile Buying Units in the mining areas and it will also introduce free artisanal mining permits to those interested in dealing in gold and selling it to Fidelity Printers and Refiners.

All gold producers are expected to have registered and been issued with Artisanal Mining Permits by end of this month, failing which they risk suspension of operations until they attain the requisite registration, he said.

Minister Chidhakwa said the government would review mining levies and charges by various Rural District Councils and EMA with a view to promote increased and viable gold production.

Speaking at the same function, Finance and Economic Development Minister Patrick Chinamasa said his ministry was ready to support gold producers.

He said the government will soon move in to control and restore order in the diamond mining sector.