Gold mining equipment likely to be released soon

Source: Gold mining equipment likely to be released soon | The Herald August 5, 2016

Business Reporter

CHINESE firm, Xu Construction Machinery Group, has put on hold delivery of gold mining equipment under a $100 million credit facility from China Import and Export Bank, as it battles to recover money for equipment supplied to Chiadzwa diamond firms. But the Government has provided guarantees and only payment of freight and insurance is outstanding.The Xuzhou Construction Machinery Group of China supplied equipment to diamond companies, which have since stopped after the Government took over the operations.

“It is difficult for diamond firms to pay for the equipment because they have since closed,” said a source within Ministry of Mines and Mining Development.

“So for them to release the equipment for gold miners is now a big risk. That has basically stalled the deal.”

Government, through the Zimbabwe Mining Development Corporation, entered into a $100 million facility agreement with Xuzhou Construction Machinery Group of China for provision of small scale mining equipment on credit in line with the ZimAsset thrust.

Deputy Minister of Mines and Mining Development Fred Moyo confirmed that the deal was having some challenges.

“The Government had provided the guarantee and the only outstanding issue was the payment of freight and insurance,” said Mr Moyo.

Gold is the second largest mineral export earner after platinum, and small scale miners have been a significant contributor to the total output.

Production has been on the rise incrementally, with mining industry report for the first quarter of the year showing that volumes produced grew by 21 percent from 4,18 tonnes to 5,06 tonnes.

In terms of output small scale producers and custom millers recorded the biggest jump in production of 54 percent from 1,21 tonnes during first quarter in 2015 to 1,87 tonnes.

Large scale producers recorded a 5 percent increase to 2,73 tonnes from 2,59 tonnes during the same period last year. Earning were up 17 percent to $189,65 million during the period under review from $161,67 million in the prior comparable period.

Artisanal and small-scale gold miners are targeting to produce more than 15 tonnes of gold this year, surpassing the 3,9 tonnes of last year.

The projected increase was linked to the Government’s plans to licence the miners to legalize their operations.

At their peak, small scale producers’ output reached 17 tonnes in 2004. The equipment was expected to significantly improve operations of the small scale miners.

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    richard muchinjiko 6 years ago

    Please Mugabe .get out of office.we need zimbabwe back