Government Urges Small-Scale Miners to Formalise Operations

By Southerton Business Times Reporter, Harare

The Government has urged artisanal and small-scale gold miners to operate as formal businesses, as a revived Mining Industry Loan Fund offers equipment financing to encourage registration and responsible mining practices.

The push comes as artisanal and small-scale gold mining (ASGM) accounts for more than half of Zimbabwe’s gold production and exports, making the sector a significant contributor to the country’s mining industry. The issues were discussed at PlanetGOLD Zimbabwe’s second annual stakeholders’ conference, held under the theme, “A Collaborative Approach to Unlocking Responsible Gold Mining”, where the project also launched a guide publication on formalisation.

Permanent Secretary in the Ministry of Mines and Mining Development, Thomas Ushe Utete, represented by Acting Deputy Director of Metallurgy Shantel Mutsvairo, said the initiative supported the Government’s sustainable mining objectives under the National Development Strategy and Vision 2030. Utete said the project was built around four pillars: formalisation of artisanal and small-scale gold mining, access to finance and markets, knowledge sharing, and adoption of mercury-free gold extraction technologies.

He described formalisation as the foundation for improving the sector’s operations and environmental performance.

Mercury-Free Mining at the Centre of Formalisation Drive

The Government also highlighted the environmental and health risks associated with mercury use in gold processing. “Mercury does not stay where it is used. It travels from communities into water and the food chain,” Utete said. Zimbabwe ratified the Minamata Convention on Mercury in 2021 and has a National Action Plan aligned with Article 7 of the convention, which requires countries to reduce and, where feasible, eliminate mercury use in artisanal and small-scale gold mining.

Permanent Secretary in the Ministry of Environment, Climate and Wildlife Simon Masanga, represented by Deputy Director Abraham Matiza, said environmental compliance should be viewed as an investment in safer communities rather than simply a regulatory requirement. He said addressing mercury pollution required more than awareness campaigns and enforcement, adding that government institutions, mining organisations and communities needed to work together.

“Protecting the environment cannot be the responsibility of one institution alone,” he said. PlanetGOLD Zimbabwe Project Manager Nyaradzo Mutonhori said the newly launched publication promoted a broader understanding of formalisation beyond obtaining licences and meeting regulatory requirements. She said miners also needed technical support and assistance to progressively comply with environmental standards, including reducing mercury use. “Our approach is that formalisation should be holistic,” she said.

The project aims to reduce mercury use in the sector by 4.85 tonnes and support 7,500 miners. It also plans to establish mercury-free gold processing demonstration sites in eight mining districts.

Government Loan Fund Offers Mining Equipment

The Mining Industry Loan Fund is expected to play a key role in encouraging miners to register and improve their operations. Acting Fund Manager Rangarirai Mhazo said the facility, administered by the Ministry of Mines and Mining Development, provides registered miners with equipment on a loan basis. The equipment includes compressors, generators and slurry pumps.

Mhazo said access to the facility was tied to registration and compliance, creating an incentive for informal miners to enter the formal sector. “If an unregistered miner gets to know that there is support being offered by Government, they are motivated to register so that they can get the support,” he said. He acknowledged that uptake had previously been low because the fund was inactive but said it had since been revived with Treasury funding.

The fund has also reviewed its approval procedures, which had been criticised as slow and unfriendly to business. Mhazo expressed optimism that applications would increase next year.

Women Miners Call for Affordable Financing

Despite the financing initiative, women in the mining sector say the costs associated with formalisation remain a significant barrier. Zimbabwe Artisanal and Small-Scale Women Miners Association Programmes Coordinator Priscilla Masuku said many women wanted to formalise their operations but struggled to meet the costs of registration, inspections and environmental management plans.

She said access to bank financing was also difficult because financial institutions often required formal documentation and collateral that many small-scale miners could not provide.

Masuku called for simplified licensing procedures, affordable financing, technical training and a dedicated revolving fund for women miners. “Formalisation must offer real benefits: secure mining rights, access to finance, safe working conditions, improved productivity and better markets,” she said.

Private Sector Partnerships to Support Miners

Magaya Mining Business Development Area Specialist Hopewell Magaya said the company was working to help artisanal miners develop sustainable operations. He argued that mercury use remained a major obstacle to responsible growth in the sector. “We cannot grow sustainably with mercury still being part of the conversation,” he said.

Magaya said the company intended to work with small-scale miners as a processing partner, allowing miners to concentrate on extraction while the company handles the processing of their material.

The discussions at the conference highlighted the need for coordinated support from Government, financial institutions, private-sector processors and mining associations. While equipment financing and mercury-free technologies offer opportunities to improve the sector, the challenge will be ensuring that formalisation is affordable and delivers practical benefits to miners, particularly women and operators working with limited resources.

For Zimbabwe, the success of the initiative could strengthen gold production while improving working conditions, environmental protection and the contribution of small-scale miners to the formal economy.

Zimbabwe small-scale mining formalisation