The Sunday Mail
Africa Moyo —
GOLD MINERS, especially small-scale producers, fear that protracted wet weather conditions will push back both throughput and production at a time output was nearing record highs.
Government has set an ambitious 28-tonne target for the sector this year, which would be a record haul after the 27,1 tonnes recorded in 1999.
Southern Africa has been drenched by heavy La Nina-induced rains over the past six weeks. The phenomenon — the opposite of drought-inducing El Nino conditions — often results in flash floods.
Poorly-equipped miners face difficulties in de-watering flooded mines, while ore-carrying trucks struggle to navigate thoroughfares between mines and milling centres.
Mines in areas such as Kadoma, Kwekwe, Shangani and Gweru have been the most affected.
Deliveries from small-scale gold producers have increased from 2,4 tonnes in 2007 to 9,7 tonnes in 2016, and it is on the back of this improvement that Government has set the record production target.
The Meteorological Services Department last week forecast heavy rains to continue to February 20.
Mr Wellington Takavarasha, CEO of the Zimbabwe Miners Federation, a grouping of over 8 000 small-scale miners, said: “The situation is not very good for small-scale miners. Working time has been minimised. Gold is in the pits and the pits have been heavily flooded by rains.
“As we speak, some of the small-scale miners are trying to de-water their pits using buckets. This is why Government is trying to organise mining equipment for the sector so that they increase output.
‘‘If the equipment was already in the country, it was not going to be a major problem.”
He indicated that deliveries were likely to increase even further if gold trading was decriminalised.
Government recently agreed a US$100 million loan facility for mining equipment with China to mostly aid small-scale miners.
However, the facility has been choked by challenges on loan guarantees and the estimated US$1 million needed for freight charges, though the first batch of equipment will likely now arrive in Zimbabwe around March.
The challenges are not confined to small miners as Pickstone Peerless Gold Mine near Chegutu believes that if the wet conditions continue, it will be unable to meet its 29 000-ounce target for 2017.
Vast Resources group CEO Mr Roy Pitchford told The Sunday Mail Business in emailed responses to our questions that their targeted output also depended on the timeous commissioning of an upgraded plant.
Vast Resources and Grayfox Investments (Pvt) Limited jointly own Breckridge Investments (Pvt) Ltd, the investment vehicle that runs Pickstone-Peerless Gold Mine.
“There are basically two challenges to meeting our target: the plant upgrade being completed on time (and) the very wet start to the year has compromised January’s output.
Should the heavy rains continue, it will affect the February and March production,” said Mr Pitchford.
Despite the the inclement weather, miners say there is scope to meet Government’s 28-tonne target. Last year’s target of 24 tonnes was missed by more than two tonnes.
Chamber of Mines of Zimbabwe CEO Mr Isaac Kwesu said last week gold output would probably increase this year.
“Well, I think it’s achievable as long as the conditions are amenable to production.
‘‘We anticipate that primary producers and small-scale producers would increase output,” he said.
Last year, primary producers delivered 11,8 tonnes from 11,1 tonnes a year earlier.
Mines Minister Walter Chidhakwa recently indicated plans to scrap royalties on gold in order to spur production. Royalties were revised from five percent in 2015 to three percent last year.
Gold generates more foreign currency than for the country than any other metal or mineral.
Statistics show that gold contributed almost US$1 billion to the fiscus in 2016, while diamonds generated US$300 million.
