Gold processing equipment manufacturers cry foul

MANUFACTURERS of gold processing equipment have urged Government to curb the illegal exportation of scrap metal, which is seriously affecting their operations.

Midlands Metals operations director Mr Tatenda Karimazondo, whose company manufactures bore mills, compressors, hammer mills and spare parts for small scale gold miners, said Government should move in to protect their industry, which was helping the country to save foreign currency indirectly and directly.

“At the moment, we are operating at 60 percent, the main problem is the shortage of critical raw materials like scrap metal,” said Mr Karimazondo.

“We use a lot of things but scrap is the major ingredient. Government must help us by stopping people from exporting scrap, which we are then forced to import to meet our production needs.

“Allowing scrap metal to be smuggled out is affecting local foundries because we are now competing with the international market and some agents who are not even tax compliant, are pushing the prices up.”

Mr Karimazondo said they were producing for Zimbabwe and if they continued facing these challenges their foundries would close because of high operational costs, which could be minimised if Government enforced the ban on scrap metal exports.

Mr Karimazondo said their industry was also creating employment.

“We employ more than 150 people, whereas an agent is a one man party who benefits alone, he does not add value to the economy but is enriching himself but we are paying taxes and creating employment,” he said.