mining float.jpgPlayers in the mining sector have called on government to set up a mining development bank to mobilise financial resources for the exploration of mineral deposits across the country.

According to proposals by mining companies ahead of the 2012 national budget presentation this month, the setting up of a mining development bank will assist in the mobilisation of capital for small and large scale mining firms.

The Zimbabwe Miners Federation Chairman, Mr. Edzayi Kufandarerwa says stakeholders in the mining sector are proposing the establishment of the bank in line with the increase in overall mineral production.

“This mining development bank is long overdue, in other countries such a bank is important,” said Mr. Kufandarerwa.

A miner, Mr.  Canswell Nziramasanga says government through the treasury should be responsible for mobilising financial resources for the proposed mining development bank.

 

“Indeed Mr. Biti should be responsible for raising funds for the bank,” Mr. Nziramasanga said.

The country’s mining industry is on a recovery path on the back of an increase in production and earnings for several commodities.

However, economic observers say the growth of the sector will depend on adequate financial resources.

According to the chamber of mines, more than US$3 billion is required by the mining sector for the exploration of mineral deposits in the next five years.

It is being anticipated that if US$3 billion is raised, government will also plug loopholes that have resulted in huge mining conglomerates allegedly failing to remit royalties resulting in treasury raking more than US$300 million in monthly revenues from the sector compared to less than US$60 million being earned from mineral royalties on a monthly basis.