Govt en­gages banks for freight, in­sur­ance charges

Chronicle (Zimbabwe) - - Business Chronicle - Oliver Kazunga

THE Govern­ment has en­gaged lo­cal banks for $1,5 mil­lion to cover freight and in­sur­ance charges for small-scale min­ing equip­ment worth $5 mil­lion from China.

The ba­sic min­ing ma­chin­ery was se­cured in June by the Min­istry of Mines and Min­ing Devel­op­ment through a Chi­nese Devel­op­ment Bank loan fa­cil­ity.

In an in­ter­view yes­ter­day, Mines and Min­ing Devel­op­ment Deputy Min­is­ter Fred Moyo said the ma­chin­ery that was ini­tially ex­pected in the coun­try at the end of this month is now ex­pected in Oc­to­ber.

“The equip­ment hasn’t been shipped from China be­cause we’re still finalising on the lo­gis­tics. At the mo­ment, the Govern­ment doesn’t have money to ship the equip­ment so we’ve en­gaged lo­cal banks through the Bankers’ As­so­ci­a­tion of Zim­babwe for $1,5 mil­lion to cover freight and in­sur­ance charges for the ma­chin­ery.

“Once we get the money, we hope the ma­chin­ery will be shipped in the next few weeks and by the end of Oc­to­ber it would have ar­rived,” he said.

Deputy Min­is­ter Moyo said the Govern­ment has also en­gaged the Zim­babwe Rev­enue Au­thor­ity (Zimra) for the es­tab­lish­ment of a bonded ware­house for the ma­chin­ery.

“We’ve also en­gaged Zimra for the set­ting up of a bonded ware­house for the ma­chin­ery so that once the qual­i­fy­ing ben­e­fi­cia­ries for the ma­chin­ery have been se­lected, ar­range­ments can then be made for them to pay for the du­ties and other taxes as they col­lect the ma­chin­ery,” he said.

The bonded ware­house will be es­tab­lished in Harare be­fore it is de­cen­tralised to other parts of the coun­try.

Sup­pli­ers of the min­ing equip­ment, XCMG Group, spe­cialise in min­ing trucks, motor graders, earth­movers, hoist­ing equip­ment and spare parts.

Over the years, the Govern­ment has recog­nised the crit­i­cal role played by small-scale min­ers in eco­nomic devel­op­ment, and thus the plan to sup­port them through mech­a­ni­sa­tion to im­prove their de­liv­er­ies.

As part of a raft of mea­sures to im­prove small-scale min­ers’ con­tri­bu­tion to the fis­cus, the Govern­ment has also de­crim­i­nalised ac­tiv­i­ties in the gold min­ing sec­tor.

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