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Zimbabwe Mining Development Corporation acting general manager Mr Wilson Chinzou exchanges documents with XCMG chairman Mr Wang Yan Song, while Mines and Mining Development Minister Walter Chidhakwa (second from right) and CBZ Bank representative Mr Tonderai Mudondo (left) look on in Harare yesterday. — Picture by Justin Mutenda

Peter Matambanadzo Senior Reporter—
Small-scale miners got a shot in the arm following yesterday’s signing of a US$100 million credit facility between Government and Chinese company, Xuzhou Construction Machinery Group. Xuzhou is also interested in turning Zimbabwe into a regional hub for supply of mining equipment by establishing a manufacturing plant here. The signing of the landmark deal dovetails with the Zimbabwe Agenda for Sustainable Socio-Economic Transformation, which has mining as a key economic driver.

The economic blueprint also seeks to strengthen small to medium enterprises and co-operatives to be viable as tools for poverty eradication.
The US$100 million facility is expected to boost annual gold production to over 14 tonnes, from the current four tonnes.

The deal will see small-scale miners accessing loans to acquire requisite equipment to improve viability, mining standards and ensure their activities are conducted professionally as well as boost mineral production.

The loan facility will be managed through CBZ Bank, which will facilitate a syndicate of banks to handle the funds.
Addressing journalists at the signing ceremony in Harare yesterday, Mines and Mining Development Minister Walter Chidhakwa said the move was meant to boost activities of the small scale mining sector.

“This was in recognition that the small scale mining sector plays a critical role, not just in the development of various minerals, but also plays a critical role in distribution of income,” he said.

Minister Chidhakwa said the loan from XCMG was an important component of support to the small scale sector, but training of small scale miners as well as environmental prevention and protection mechanisms should be put in place.

“So, I am hoping that as we take this step of providing this line of credit, we are in fact injecting a very significant energy into small scale sector,” he said.
Minister Chidhakwa said the facility was not meant for small scale gold producers only, but was for other minerals, including tantalite and chrome.
He said mechanisms should be put in place to guarantee repayment of the loan facility.

Minister Chidhakwa said XCMG was welcome to establish the assembly plant for mining equipment.
“XCMG has not stopped there, they have proceeded to say they are looking at the possibility of establishing an assembly plant for some of their equipment here in Zimbabwe,” he said.

“I think that’s a big sign of investor confidence. I think very easily we can become a supplier of mining equipment into the region, not just in Zimbabwe.”
XCMG chairman Wang Yan Song said: “We are happy to support Zimbabwe build its mining sector as mining is the backbone of the country’s economy.”

Government’s focus is being placed on mining exploration, pursuing value addition and establishing refining processes of mainly gold as well as other minerals — platinum and diamond, iron ore, chrome and nickel.