Decentralisation to curb gold leakages: Parly Committee

Sikhulekelani Moyo, Business Reporter
GOVERNMENT’S drive to boost gold output is being complemented through decentralisation of support services for the sector including establishment of buying centres for the yellow metal.

The development comes at a time when small scale miners are leading in gold deliveries regardless of some challenges they face.

For instance, during the first quarter of 2022, small scale miners delivered 6 571,22kg of gold compared to 3 605,61kg delivered by primary producers.

Responding to questions from Business Chronicle, Mines and Mining Development Portfolio Committee chairperson, Mr Edmon Mkaratigwa, said the Government has responded to the need of miners through decentralisation of gold buying centres, among other incentives for the sector.

“Decentralisation of gold buying centres has assisted in crowding out predators as there has been adjustment on payment rations, which also motivated gold producers to deposit their produce with the Government buyer,” he said.

Mr Mkaratigwa said this will also lessen disturbances on miners having to travel long distances to market their produce, which reflects policy consistence as miners now understood the need to work with the Government.

Turning to smuggling, he said this was being caused by systematic blockages, which the National Development Strategy 1 seeks to undo.

“Miners lacked easy access to a Government buyer that was over-centralised and corrupt services amongst other Government employees and most of these were arrested while the buying syndicate combination was improved,” he said.

Miner – Image taken from Shuttersock

“Also, there was a rise on the illegal buyers on the market because of limited Government surveillance as well as corruption among enforcers.

“There was also mistrust among the producer and the Government buyer, while slow response to market changes can also motivate illegal gold buying and selling.”

Mr Mkaratigwa said continuous monitoring and development of corrective measures against the above issues should remain at the center of the priorities of Fidelity Printers and Refineries, the sole Government gold buyer.

illegal buyer

“As a committee we continue to evaluate progress and bring to attention any challenges, while at the same time causing implementation of the desired improvements by the executive,” he said.

Mr Mkaratigwa said Government is prioritising small scale miners because they are under capitalised and they need to grow in order to contribute more to the economy.

“There is realisation to grow local businesses for Zimbabwe to have a reliable and sustainable socio-economic future,” he said.

“Small scale miners largely spend all or most of their proceeds locally, hence directly give value to the upstream and downstream markets.”

He said the committee has also recommended to the Government that small scale miners be formalised and gold buying centers be equipped with machinery that can be hired by small scale miners in the mean time as they grow. – @SikhulekelaniM1.

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