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Oliver Kazunga, Senior Business Reporter

A CREDIT Guarantee Fund has been established to cushion non-gold mining projects across the country from the effects of fluctuating commodity prices and high operational costs.

Minerals Marketing Corporation of Zimbabwe (MMCZ) general manager, Mr Tongai Muzenda, said yesterday that the credit guarantee facility seeks to assist non-gold mines in playing their role towards the attainment of the US$12 billion economy. “The Credit Guarantee Fund was announced by the Deputy Minister of Mines and Mining Development, Engineer Polite Kambamura, a few days ago.

“The fund is being administered by MMCZ and right now we are working on modalities that include identifying which banks can be used to disburse resources under the facility,” he said.

The facility is meant to support non-gold mining projects to boost their operations in light of the falling global mineral prices and high operational costs.

Mr Muzenda said they anticipated to have finalised the credit guarantee scheme’s funding modalities by next week so that beneficiaries can start accessing resources. 

He could not be drawn into revealing the fund’s seed capital, indicating that the money was coming from the Ministry of Finance. 

Mr Muzenda however said as a corporation they would want to start with at least $100 million for on-lending. “As you might be aware, mining is a capital-intensive business and as MMCZ we would want at least $100 million as seed capital for a start. The amount could go a long way in boosting the operations of non-gold producers across the country,” he said.

Zimbabwe is endowed with vast mineral reserves such as ferro-chrome and nickel, among others along the Great Dyke. In recent years, Government has been supporting players in the gold mining sector, particularly the small-scale miners who are contributing 60 percent of the deliveries to Fidelity Printers and Refiners.

The funding schemes in the gold sector include the Gold Development Initiative Fund. 

Last year, the country produced 33,2 tonnes of gold with the bulk of it coming from the small-scale miners. — @okazunga.