|The government has approved a guarantee for small scale miners to access a US$100 million line of credit from a Chinese Developmental Bank.
Small scale miners are expected to access the credit line facility from a Chinese bank after the government resolved to provide a guarantee as collateral in getting the loans.
The Minister of Finance and Economic Development, Cde Patrick Chinamasa said the guarantee will enable the global financier to get assurance in terms of recovering funds in the event of default by some beneficiaries.
“We have now approved all the necessary requirements and it is our hope for success,” said Cde Chinamasa.
In terms of the facility, small scale miners are expected to get loans towards the purchasing of new equipment and are required to expand production and increase earnings.
The government is implementing policies to re-capitalise the small scale mining industry as evidenced by the reduction in gold royalty fees to five percent from seven percent and the scrapping of presumptive tax for primary producers of the yellow metal.