ZIMBABWE INSTITUTE OF MANAGEMENT

RESEARCH REPORT
HOW SMALL SCALE MINERS IN ZIMBABWE CAN STRATEGICALLY REALIGN
TO BECOME ELIGIBLE FOR INVESTMENT CAPITAL, POST THE
INTRODUCTION OF THE MULTICURRENCY SYSTEM IN 2009.
BY

GUMBIE

STEWART

MUNESU

(DMRM 8/13)

A RESEARCH REPORT SUBMITTED TO THE ZIMBABWE INSTITUTE OF

MANAGEMENT IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR
THE DIPLOMA IN MINERAL RESOURCES MANAGEMENT (DMRM)
QUALIFICATION.

HARARE, ZIMBABWE
2013

DECLARATION
I declare that this research report is my original work submitted to the ZIMBABWE
INSTITUTE OF MANAGEMENT in partial fulfilment of the requirements for the DIPLOMA IN
MINERAL RESOURCES MANAGEMENT (DMRM) qualification. I declare that this work is
submitted for the first time at this institution and that it has never been submitted to
any other institution for the purpose of obtaining a qualification. I hereby authorize
copyright of this report to the ZIMBABWE INSTITUTE OF MANAGEMENT.

..........................................

Gumbie Stewart Munesu

Student Number: (DMRM 8/13)

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Date

DEDICATION

I dedicate my work on this research to the memory of my brother Munyaradzi, and to

my mother for such great inspiration that keeps me daring to do.

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ACKNOWLEDGMENTS
I express my most sincere gratitude firstly to Jehovah, all-merciful God, for the life, the
strength, the wisdom and the courage to undertake this research study. I am always safe
in His hands.

I also want to deeply thank my supervisor, Mr. C.B. Mashavira for the concerted patience
and guidance in pointing me in the right direction of how to carry out and produce a
great research project. I appreciate his generosity with his vast in-depth knowledge.
Thank you so much.

I express gratitude to all the respondents and participants of this research study for their
cooperation as well as my employer SinoZimbabwe Management team for allowing me
to carry out my study while still under their tenure.

To my friend and fellow student, Wayne Silunde, I salute you and I say this undertaking
was a good run and an inspired and enjoyable one, all the way. Your support continues
to be unwavering, I thank you.

I also remember to thank the staff at Dzidzo House, Lovemore Muungani and others for
coordinating my studies. Thank you indeed. To all the other stakeholders in various
institutions that I have not mentioned by name, you have been of great assistance and I
shall always honor your commitment to my success through all time. Ndinokutendai,
Thank you, Ngiyabonga

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Table of Contents
TABLE OF CONTENTS........................................................................................................................................5
CHAPTER ONE...................................................................................................................................................7
INTRODUCTION.................................................................................................................................................7
1.1 Introduction..........................................................................................................................7
1.2 Background to the Study.......................................................................................................7
1.3

Statement of the Problem..................................................................................................10

1.4

Justification of the Study....................................................................................................11

1.5

Objectives of the Study......................................................................................................11

1.6

Research Questions...........................................................................................................11

1.7

Proposition to the Study....................................................................................................12

1.8

Significance of the Study...................................................................................................12

1.9

Definition of Terms.............................................................................................................13

1.10 Research Assumptions.......................................................................................................13

1.11 Ethical Considerations.......................................................................................................14
1.12 Data Presentation and Analysis Procedures........................................................................14
1.13 Research Limitations.........................................................................................................14
1.14 Summary...........................................................................................................................15
CHAPTER TWO................................................................................................................................................16
LITERATURE REVIEW.......................................................................................................................................16
2.1 Introduction........................................................................................................................16
2.2 Purpose of Literature Review...............................................................................................16
2.3 Sources of literature review.................................................................................................16
2.4 Discussion of related literature............................................................................................16
2.5 Summary.............................................................................................................................26
CHAPTER THREE.............................................................................................................................................27
RESEARCH METHODOLOGY.............................................................................................................................27
3.1 Introduction........................................................................................................................27
3.2 Research Design..................................................................................................................27
3.3 Delimitation of the Study.....................................................................................................27
3.4 Scope of the Study..............................................................................................................27
3.4.1 Participants......................................................................................................................28
3.4.2 Sampling Criteria..............................................................................................................28
3.4.3 Sample Size......................................................................................................................28
3.5 Tools for Data Collection......................................................................................................28
3.6 Data Validity........................................................................................................................29
3.7

Integrity.......................................................................................................................29

3.8

Data Presentation and Analysis Procedures...................................................................29

3.9

Summary......................................................................................................................30

CHAPTER FOUR...............................................................................................................................................31
DATA PRESENTATION AND ANALYSIS...............................................................................................................31
4.1 Introduction........................................................................................................................31
4.2 Demographics.....................................................................................................................31
4.3 Investment and its Challenges.............................................................................................34
4.3.1 The Miner.........................................................................................................................34
4.3.2 The Investor.....................................................................................................................35
4.4 Knowledge..........................................................................................................................35
4.5 Training...............................................................................................................................36

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4.6 Partnerships........................................................................................................................36
4.7 Respondents Recommendations..........................................................................................37
4.8 Summary.............................................................................................................................37
CHAPTER FIVE.................................................................................................................................................39
CONCLUSIONS AND RECOMMENDATIONS.......................................................................................................39
5.1 Introduction........................................................................................................................39
5.2 CONCLUSIONS...........................................................................................................................................39
5.2.1 A Systematic Approach.....................................................................................................39
5.2.2

Structural Operations....................................................................................................40

5.2.3 Training............................................................................................................................40
5.2.4

Policy............................................................................................................................41

5.3 RECOMMENDATIONS.................................................................................................................................42
5.3.1 A Systematic Approach.....................................................................................................42
5.3.2 Structural Operations.......................................................................................................42
5.3.3 Training............................................................................................................................43
5.3.4 Policy...............................................................................................................................44
5.4 Summary.............................................................................................................................45
REFERENCES...................................................................................................................................................46
APPENDICES....................................................................................................................................................47

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CHAPTER ONE
INTRODUCTION
1.1 Introduction
This proposal document presents a detailed background to the study. The other issues to
be discussed in this document are statement of the problem, justification of the study,
objectives of the study, research questions, proposition, significance of the study,
definition of terms, research assumptions, ethical considerations, research methodology,
data presentation and analysis procedures, literature review and a summary.

1.2 Background to the Study

The history of small-scale mining in Zimbabwe dates back to the period well before
colonisation in the late1890s. As late as 1908, over 70% of the countrys mines were still
classified as small workings. As in other African countries, gold mining was the basis for
the wealth and power of many empires and kingdoms in Zimbabwe and this fuelled
growth of small-scale mining on the continent. Despite the immense growth of smallscale mining over the years, especially since independence in 1980, the sector has
essentially remained subsistence and a significant complimentary activity to communal
and small-scale resettlement agriculture. As a whole, small-scale mining is an important
sector in the mineral production system in Zimbabwe, as miners work on economic
deposits often below the threshold levels of the larger operators. Furthermore, the
sector is well suited for Zimbabwe as it utilises an abundant resource, labour, and
employs a relatively small proportion of the scarce resource, capital. The mining
systems used in the sector are labour-intensive and feature manual procedures using
homemade tools such as hoes and panning dishes. The sector has expanded to include
minerals such as chromite and tantalite, early small-scale mining was concentrated on
the extraction of gold, copper, iron ore and tin. (Maponga and Ngorima, 2003).

The definition of small-scale mining in Zimbabwe includes both legal and illegal
operators, mechanised and semi-mechanised miners of varying sizes in terms of output,

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employment and capitalisation. Broadly, Zimbabwean mines are classified into four
categoriesmines operated by experienced individuals, those operated by
unsophisticated groups, registered gold panners, and cooperative miners. This
classification, though covering a significant section of the sector, fails to take
cognisance of the important role played by illegal operators, many of them gold
panners. There is no generally agreed definition of the term small-scale mining;
although it is often defined with regard to mines output, capital investment, numbers
employed or managerial structure. Small-scale mining is a relative term; thus the choice
of limiting criteria to distinguish between small and larger-scale mining (such as
production rate, capital and labour employed) will differ from commodity to commodity
and from country to country. In Zimbabwe, small-scale mining ranges from very small
operations that use the simplest of tools for providing subsistence living (artisanal
mining), to the junior companies for which revenue is such that subsistence living is
not the prime motivator. Twenty per cent of the countrys gold mines and 75 % of
chromite mines were classified as small, based on tonnage of ore. These categories of
mines produced between 0 and 50 thousand tonnes of ore per year. Without a proper
study on the actual size of the sector, estimations from analysts remain the source of
credible information about the actual size of the sector but undisputedly, the sector
occupies an important niche in mineral production through the exploitation of small
economic deposits and providing alternative sources of livelihood for impoverished
masses mostly in rural areas (Maponga and Ngorima, 2003).

However, small-scale miners face a host of technical, financial and socio-economic

problems that adversely affect productive capacity, capability and compliance with
mining, safety and environmental regulations. More importantly, it is the sectors
purported disregard of environmental management issues. Small-scale producers are
often labelled as insensitive to ecological issues, wasteful of mineral resources through
high grading, and, in some cases, also impinge on tenements of larger producers. Toxic
handling and use of mercury poses another hazard.

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There are 20,000 registered claims owned by small-scale operators of which less than
10% are active. An estimated 300,000 people are directly involved in gold panning
activities along 5000 km of Zimbabwes major rivers including Mazowe, Angwa, Insiza,
Runde and Bubi; and an estimated additional 150,000 people are indirectly dependent
on gold panning for subsistence in some areas. Overall, artisanal mining is believed to
sustain the livelihood of at least two million people in Zimbabwe, directly and indirectly
through ancillary services and secondary economic activities. The sector has grown in
leaps and bounds during the last 20 years, fuelled by many factors including the
economic decline that led to high unemployment as a result of retrenchments and
drought during the 1980s. Prior to the droughts of the 1980s and that of the early
1990s, panning was primarily a dry-season activity. The upsurge in gold panning during
the 1982, 1992 and 1994 exhibits how mining then became an alternative activity to try
and alleviate the impacts of the drought spells experienced in that period. However, in
recent years, panning has evolved into a year-round activity and has become a primary
source of livelihood in many rural communities. The complementary relationship
between panning and subsistence agriculture also accounts for the increased popularity
of the activity among rural communities and its exponential growth from the 1990s.
Proceeds from small-scale mining have become an integral part of the rural economy
and lubricate regional economic development through employment and income
multipliers. Panning is no longer restricted to the banks and beds of rivers, but also
takes place away from riverbanks, where miners work reef deposits to recover gold.

Small-scale mining continues to take place on a sizeable scale in Zimbabwe. A case in

point is in the gold deliveries from the mining sector as shown in figure 1.1 below:

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Figure 1.1: Total Gold Deliveries (Kilograms) in Zimbabwe

Source: African Development Bank
According to the African Development Bank, month-on-month total gold deliveries
declined by 0.54 percent from 967.45kg in January 2013 to 962.2kg in February 2013
(Figure 1.1). Deliveries by small-scale producers during the same period grew by 4.9
percent to 150.42kg, while deliveries by primary producers declined by 1.49 percent to
811.8kg. On a year-on-year basis, total gold deliveries grew by 3.69 percent to 962.22kg
in February 2013. However, deliveries by small-scale producers declined by 11.35
percent to 150.42kg, while deliveries by primary producers grew by 7.05 percent to
811.80kg in February of 2013. Noteworthy mining investments are being seen but only
on the large scale sector/ primary producers, who dominate the industrial activities.

1.3

Statement of the Problem

Many small scale and artisanal miners are failing to access investment capital to
improve and sustain their operations. They then cannot access any structured markets
through which minerals are traded either locally or abroad. Investors, both local and
foreign, always target big companies because they provide more security and structure,
but then even the small scale miners also require investment, but are not yet in a
position to inspire investor confidence because of their stringent requirements. Even
local banks are hesitant to transact with many small scale miners because they are too
anonymous and very risky, if at all they are forthcoming.

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1.4

Justification of the Study

This research aims to establish ways that small scale miners can implement so that they
can become eligible for investment from both local and foreign, and operate
legitimately, improve their output, gain access to markets and legally contribute to the
national Gross Domestic Product. It seeks to answer the question why all the current
initiatives have not granted access to financing for small scale miners.

1.5

Objectives of the Study

1.5.1

To provide systematic recommendations that can be adopted by small scale

and artisanal miners in securing investment.

1.5.2

To promote structural operations of small scale mines to yield better operations

management, production output and safety.

1.5.3 To educate the miners on the options and provisions already available to them
through the various legislation, regulations and government initiatives.
1.5.4

To influence policy makers to adopt strategies that enable the growth and
sustainability of small scale miners.

1.6

Research Questions

1.6.1
1.6.2

What challenges do small scale miners face in Zimbabwe?

How can small scale miners transform their operations and inspire investor
confidence and create synergies with large scale operators in a way that
enables a transfer of skills and attracts investment capital

1.6.3
1.6.4

What do investors look for in a prospective partnership?

How can small scale miners achieve structural operations and proper
operations management?

1.6.5

How can awareness, education or training be administered to the small scale

miners and which one of these would be most ideal?

1.6.6

What can the government do to create a growth-enabling environment and

facilitate growth of this sub-sector?

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1.7

Proposition to the Study

Small scale miners should structure, formalize and legitimize their operations through
registering with the Ministry of Mines and the Ministry of Industry And Commerce.
Subsequently, these entities should then operate through banks where they generate
profiles necessary for both borrowing money and presenting to investors. Small scale
miners should form consortiums amongst each other to grow and enhance their capacity
for both daily operations and securing larger investors. The government should support
the miners through laws and appropriate legislation tailored for operation of this
magnitude. This would ensure that mining fees are lowered to affordable levels that
encourage the miners to service their claims and provide accurate information about
their operations to the state.

1.8

Significance of the Study

1.8.1 Small scale miners

This research aims to provide the artisanal and small scale miners with a roadmap and
recommendations they can apply to their operations to formalize, legitimize and
sustainably manage them. It seeks to demystify the concept of formalizing amongst the
small scale miners and enlighten them on the best practices that apply to their sector
and which promote growth.
1.8.2 Government
The research also seeks to enable the government to figure out and understand how
best it can assist this sector towards realignment once the recommendations on a
strategy are made available. The government would consequently, understand the
concerns of these miners and through its various arms (Ministry of Mines and Mineral
Development, The Ministry of Industry and Commerce, Environmental Management
Agency, etc.), would then flex some tight regulations that impede the growth of this
sector. The end result would be more optimized small scale mines emerging that
contribute more substantially towards the Gross Domestic Product.
1.8.3 Investors

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Investors would also get to appreciate the challenges being faced by their potential
investment partners and might come up with ways of establishing synergy and assisting
the small scale miners while they grow their operations. This report would enable the
investors to manage their expectations of the small scale miners and appreciate their
needs as well as their growth potentials.

1.9

Definition of Terms
1.9.1 Investment:

Putting money into an asset (Anything tangible or

intangible that is capable of being owned or controlled to produce

value and that is held to have positive economic value) with the
expectation of capital appreciation, dividends, and/or interest
earnings. This may or may not be backed by research analysis.
1.9.2 Panning: To wash (gravel, for example) in a pan in order to remain with gold
or other precious metal. The process is one of the simplest ways to
extract gold, and is popular because of its cheap cost and the relative
simplicity and easiness. It uses gravity to separate and recover
minerals.
1.9.3 Mineral:

A natural substance of commercial value, such as iron ore, coal, or

petroleum that is obtained by mining quarrying, or drilling.

1.10 Research Assumptions

1.10.1

Because of the researchers position in the organization within which he is

employed, he will find it easy to carry out research using the provided company
resources.
1.10.2
The researcher is not affiliated to any public library within his area of
research hence he may find it difficult to access research literature from those
libraries.
1.10.3
Due to the informal nature of the small scale miners, this researcher will
have challenges in attaining responses to his questions due to a lack of structure
and the aggressive nature of some of these miners.

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1.10.4

Because this researcher is already involved in some work with the Ministry

of Mines office within his area of study, he will find it relatively easy to request for
some information from this office.

1.11 Ethical Considerations

1.11.1

This researcher will seek the consent of each interviewee prior to

interviewing them.
1.11.2
This researcher will seek the consent of his employer should this
researchs schedules interfere with his work commitments.
1.11.3
The researcher will ensure that no abuse of his employers resources or
time shall occur as a consequence of this research.
1.11.4
This researcher will provide a copy of the final report to his employer and
a copy to the Ministry of Mines as a courtesy gesture.

1.12 Data Presentation and Analysis Procedures

Data collected in this research will be presented and analyzed using descriptive
statistics techniques i.e. graphs, tables, spreadsheets and narrations.

1.13 Research Limitations

1.13.1 due to the illegality and informality of the majority of the small scale mining
subsector, there is a general lack of official statistics on the small scale and
artisanal miners hence the researcher found it very difficult to ascertain actual
figures of how much the subsector required from investors in term of capital or
how much this subsector was contributing to the gross domestic product.
1.13.2 There was a general mistrust amongst some of the small scale miners hence the
researcher believes that some miners may have provided falsified information. In
other cases,
1.13.3 Some of the miners perceived some of the research questions as irrelevant to
their lives hence declined responding to them.
1.13.4 Some of the participants did not return the filled-in questionnaires in time and
attempts to acquire responses from such individuals were fruitless.

1.14 Summary
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In this research document, the researcher has presented a detailed background to the
study. The other issues also presented in this document are the statement of the
problem, justification of the study, objectives of the study, research questions,
proposition, significance of the study, definition of terms, research assumptions, ethical
considerations, research methodology, data presentation and analysis procedures,
literature review and a summary. In the following chapter, the researcher will review
literature that is related to the current area of study.

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CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
This chapter of the research report presents a review of literature related to the area of
study. The other issues to be discussed are the purpose of the literature review, sources
of the literature review, discussions of the related literature and a summary.

2.2 Purpose of Literature Review

The problems discussed in earlier studies might as well be the current causes of the
current problem. Reviewing previous literature also helps the researcher to gain a better
understanding of the current problem. Again, solutions used to solve earlier problems
might assist in solving the current problem. The strategies used to solve earlier
problems might need to be modified so that they can fit in the current research
environment. Overall, the researcher aims to identify an information gap (information
that has not been discussed by other authors) and make effort to narrow that gap.

2.3 Sources of literature review

During the research process, related literature to the current area of study may be
sourced from: the internet, magazines, professional journals, text books, newspapers,
organizational memoranda, minutes of meetings and unpublished scholarly works.
However in this particular research study, literature was sourced from the internet,
magazines, professional journals, text books and newspapers.

2.4 Discussion of related literature

This section of the research report presents literature that is related to the current area
of study. The authors of the quoted literature will be adequately acknowledged as per
the requirements of the copyright law regulations. The researcher will also acknowledge
the authors as his gesture of gratitude and appreciation since their works will be coopted into this report.

2.4.1 Challenges besetting small scale and miners

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Below is a figure that highlighted the main challenges to small scale miners that were
highlighted in a study by ILO (1999).

Figure 2.1: The Vicious Cycle of small Scale Gold Mines.

Source: Adapted from ILO, 1999
Spiegel (2006:2) said:
Artisanal and small-scale mining (ASM) is generally a practice which uses
rudimentary techniques of mineral extraction and operates under hazardous
conditions. Driven significantly by poverty, ASM is usually undertaken by workers
with limited technical knowledge of the long-term impacts of their mining activities
on the environment and on their health and/or with limited capacity to mitigate the
hazards
The researcher is very inclined to agreeing with Spiegel above as well as the depiction of
the vicious cycle in Figure 2.1 because the ASM is driven mainly by poverty, there is
hardly any money left to spend on acquiring new skills, implementing proper
mechanisms and mitigating environmental damage. Therefore, basing on this
background, any solutions that are to be suggested should bear in mind the povertydriven nature of these miners and also try and provide a way of breaking the vicious
cycle illustrated above.
Barreto (2011) suggests that legalization of ASM is a fundamental and necessary
condition but not enough to achieve socially and environmentally responsible mining. He
further implies that legalization is only one component of a larger vision and strategy for
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ASM formalizations that integrates social, environmental, labor and safety, economic,
commercial, gender, organizational and technical dimensions. To this effect, Barreto
suggests that all the different ASM stakeholders, particularly the miners must contribute
to the process of development of public policy and regulatory framework. This
researcher agrees strongly with Barreto because for a win-win solution to the problems
hemorrhaging ASM, there must be collaboration especially from the affected parties.
Barreto also emphasizes the importance of access to information about the legal
framework and renders such legal frameworks void if the miners and respective
organizations or associations, especially those in remote areas, have no access or
awareness of all legal acts and administrative decisions governing their operations
timeously. Feedback should also be provided back to the administrators and policy
makers. He also suggests that such legal frameworks should be stable enough to inspire
stakeholder confidence and trust. This researcher supports this perception.
On issues of licensing, Barreto also suggests that the allocation of mining licenses is the
first step of the process towards legalization and reckons that all other licenses,
permissions or requirements all build up on the allocation of mining title and licenses.
He also emphasizes that legalization is applicable to all types of ASM.
Barreto (2011:15) said:
The concept that there exist categories of ASM that are impossible to regulate is
a false concept that is rooted in the idea that there is some intrinsic nature in
certain peoples, situations or activities that cannot be changed. It is true that there
are some categories of ASM and/or political contexts that are more difficult to
regulate and control than others. For example, the variation of mining cycles
particularly when there is a rush scenario can make the task of legalization very
difficult (especially when there has been no previous work on legalization or
organizational structure in the sector). However these challenges should not
prevent the efforts towards legalization and the entry into the formal economy.
This researcher agrees with the author especially on cases where there is a gold rush for
instance, a scenario that is predominantly unpredictable and also short-lived.
Legalization could be so much of a challenge, if not impossible in such circumstances, as
has been witnessed in the Midlands Province in Zimbabwe, in the years between 2011
and 2013.
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Barreto (2011:20) also said:

Another important concept related with area allocation is the size of the land in
the license because this can positively or negatively reinforce the main objectives
of the regulatory framework of ASM and have direct implications for the categories
of ASM defined in the law.
If the area is too small it means that ASM will be a very mobile activity with
consequences in terms of limited development as a business with this short term
approach (e.g. in Zimbabwe the size of area covered by the mining license is 200m
X 500m). This problem is particularly applicable to alluvial or placer deposits
because they tend to be dispersed over large areas and are relatively superficial.
The majority of regulations tend to restrict the size of the area for ASM especially
for alluvial deposits. (e.g. in Zambia small scale mining license can be 400
hectares or less, while ASM are limited to 5 hectares)
The researcher strongly agrees with this suggestion because in Zimbabwe most mining
investors mobilize huge capital investments and would require large tracts of claims to
operate profitably, sustainably and on a long term basis. This cannot be achieved on
small claims. Therefore ASM should apply for larger claims where necessary.
Figure 2.2 and 2.3 below show the main categories of challenges faced by the ASM as
well as the factors influencing the willingness of the ASM to operate legally. This
researcher strongly believes that, putting enterprise economic factors aside which the
miners have no control over, all the other factors are huge contributors towards why
ASM cannot secure investment capital and bear an almost equal influence. Again it is
evident that because the ASM are poverty driven and lack the adequate knowledge,
they cannot speculate and plan too far ahead of time so as to achieve sustainability
hence they continue to face generic problems all the time.

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Figure 2.2: Typical problems of artisanal and small scale mining

Source: Hentschel et al, (2003:7)

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Figure 2.3: Factors influencing the willingness of small scale miners to operate legally
Source: Hentschel et al,(2003:10)
This researcher agrees with the above depictions and has also noted that ASM are facing
challenging registering their remote operations because the government mining offices
(the mine commissioners office) are centralized in provincial centers instead of all over
the country.

2.4.2 Economics and contribution to industry

Barreto (2011:20) also said

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There is a generalized idea that to be informal in small-scale mining is an

opportunistic option taken by miners to avoid paying taxes or the costs or
formalization. In reality, informality is quite expensive due to all the relationships
of dependency that the producer needs to establish in order to produce without
being duly legalized. The cost of input materials comes down significantly when
they are bought legally. In the case of explosives, when buying them in the black
market they have a price of US $1.4 (approximately), whereas when legally bought
the cost does not exceed US $0.60. The cost of explosives is a large component of
the cost structure of the mining operation. But when the legislation takes into
account the economic reality of ASGM, the costs invested in the formalization
process are quickly recovered in several ways. By being formal, they can find
better prices for their product, given that they are in a better position to negotiate.
Likewise, formalization allows the miner to become entitled to fiscal credit and if
he/she is later able to export it is possible to have access to export incentives. A
direct impact that has been observed in several instances, is that once the
formalized miners no longer sell mineral they exit the cycle of mercury use and
they pass on to cleaner and more efficient technologies, such as cyanidation,
under the direction of a professional. An analysis of the importance of economic
instruments in the formalization of this sector follows.
ASM are characterized by abundant time and an inherent lack of money or reserves.
They do not have the resources to carry out exploration work and neither do they have
the technology to achieve high recoveries hence they only target high grade ores and
meanwhile, sterilizing the reserve. This researcher therefore agrees that if the small
scale miners legalize their operations and adopt systematic production methods, they
can become more economic and become able to sustain their operations, all of which,
will inspire investor confidence.
Hentschel et al,(2003) said:
Many of the potential economic benefits of the small-scale mining sector are lost
through poor practice in mining, processing and marketing the target minerals.
The absence of adequate legal frameworks and secure rights for miners and
communities exacerbates this problem. Local governance structures and
institutions are typically underdeveloped. Artisanal and small-scale miners are
often marginalized and there can be very serious disputes with communities,
government agencies and large-scale mining interests.
Hentschel et al, (2003) also mentions the lack of trust of the legislators and policy
makers amongst the ASM. This is exacerbated by the vast empty promises that the
miners get from their governments and therefore collaboration is undermined between
the state and the miners. He also suggests that it is possible and in many cases,
profitable for large companies to adopt collaborative approaches with small scale miners.
He also suggests that the ASM sector should be integrated into the local community and
encourage the investment of profits in other forms of economic activities and services.

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Hentschel et al, emphasize the importance of a partnership approach, involving

extensive participation of miners and local communities, between the donors/ sponsors
and the community as imperative, if projects are to be culturally relevant and have any
real impact. He further adds that in order add value and retain befits in the local regions,
there must be development of small industries based on products from local mines,
putting more focus on complementary rather than additional activities. This researcher
is in total agreement with the above authors because their recommendations are very
much suited to the research environment currently being studied.
On funding of ASM, Hentschel et al,(2003:21) points out that:
Most ASM operations have financing problems and difficulty obtaining credit to
improve production. As most rotating funds have not worked well, the financing of
ASM projects needs to be tailor-made and consider non-traditional forms of
financing such as own capital resources, joint ventures, risk capital, equity
partnerships and the leasing of equipment.
Solutions have a better chance of success if they can be implemented with readily
available material that is familiar to the cultural environment of the miners.
Adapting and optimizing existing technology is preferable to introducing new and
sophisticated equipment. Due to the differences between mining operations and
local contexts, a single generic technical solution is normally inappropriate.
The researcher agrees with the above authors because it is generally understood that
miners in Zimbabwe prefer to do something that they are familiar with and is relatively
easy or common to do, hence the generic nature of their operations. Therefore instead of
making huge strides and aspiring for big changes, they should optimize locally available
methods and techniques.

2.4.3 Sustainable development

Hentschel et al, (2003) suggest that ASM activities should make a positive contribution
to rural and regional development, that ASM should be harmonious with mining policies
and other national development legal frameworks. They also suggest that there should
be harmony between small miners, large scale miners and local communities. It also
would be sustainable to have long term operations.
Hentschel et al, (2003:41) said:
Legalization should help ensure that the negative social and environmental effects
of the sector are better managed and will enable governments to capture more
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revenue from the sector. In Tanzania, for example, the implementation of a mineral
trade liberalization policy in the late 1980s created a more formalized ASM sector.
This increased legally traded gold production from US$0.55m in 1985 to
US$38.78m in 1992. There are a number of reasons why artisanal and small-scale
miners continue to operate within the informal sector. They may not know about
the legal requirements, and this may be made worse by the demanding
bureaucratic procedures often required to become and remain a formal operation.
Where communities have traditionally operated outside the formal sector, they
may also be reluctant to be legalized, particularly where there are no obvious
incentives to do so and where legalization involves paying taxes that they would
otherwise not pay. A lack of capacity on the part of governments to either enforce
penalties or provide the benefits that should be associated with legalization are
further disincentives to miners.
This researcher however believes that sustainable development is hampered mainly by
ignorance on the part of the small scale miners who do not understand the initiatives
already present aimed at national sustainable development. The researcher also
believes a lot of training and awareness campaigns are required to enlighten the miners
on what they can do to begin implementing sustainable practices.
(Spiegel, 2006:2) said:
While various past development efforts have sought to reduce mercury-related
problems, we conclude that sustainable development should seek to intertwine
knowledge-sharing on environmental goals with concrete ways of improving
economic well-being. Such models of knowledge-sharing can help to catalyze local
innovation, technology-sharing and community organization. This knowledge can
be applied by governments to create capacity-building policies as well as
regulations that support sustained improvement in mining standards. To meet
these goals around the world, we conclude that an increase in international
support is vital, particularly to promote inter-national and inter-regional
knowledge-sharing and capacity-building assistance.
The researcher also feels that there has to be a clear link and understanding of how
sustainability impacts overall profitability and this connections must be communicated
to the miners who predominantly think of instant income. This will enable them to adopt
sustainability instead of rejecting it as an unnecessary expense.

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2.4.4 Role of government

Hentschel et al, (2003:41) suggested:
Finally, local administrations should be encouraged to establish both formal and
informal structures to support communication, cooperation and coordination
aiming at a more effective and efficient, harmonized management of local
resources.
The researcher also agrees that the differences experienced between governments in
Africa especially Zimbabwe, and the ASM can only be resolved by collaboration and
communication instead of playing cat and mouse.

2.4.5 Knowledge and training

(Spiegel, 2006:6) said:
The collaboration to build sustainable solutions through a transdisciplinary
approach proved critical in developing the ASM community training curriculum,
which recognizes that each community faces different challenges and that the
need to alleviate poverty and address malaria and HIV AIDS is primary in many
ASM communities where mercury pollution is also a problem. The projects
multifaceted training curriculum is designed to remove barriers to the adoption of
cleaner practices by:
improving miners income through more efficient gold recoveries
enhancing access to equipment and ability to fabricate local equipment
strengthening business keeping skills
enhancing access to microcredit
strengthening technology-sharing and community organization (e.g.
cooperatives)
demonstrating the benefits of containing mercury emissions (economic and
environmental health)
demonstrating ways of reducing mercury hazards as well as other
occupational health and environmental problems
implementing disease mitigation and health care measures (vaccinations,
HIV prevention controls, prenatal and postnatal care, etc)
improving sanitation and management of waters
The researcher considers the above curriculum to be a good foundation for ensuring that
the ASM have the appropriate skills, technologies and awareness of their operations and
the resulting consequences, and also how to combat poverty and disease.

2.5 Summary

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In this chapter, the researcher has presented a review of literature related to the area of
study. The other issues also presented are the purpose of the literature review, sources
of the literature review, discussions of the related literature and a summary. In the
following chapter, the researcher will discuss the methodology that was used in
collecting and analysis research data.

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CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Introduction

This chapter discusses the methodology that was used by the researcher in collecting
and analyzing research data. Other issues also discussed are the research design,
delimitation of the study, scope of the study, tools for data collection, data validity,
integrity, data presentation and analysis procedures and a summary.

3.2 Research Design

The researcher used a triangulation research design i.e. use both qualitative and
quantitative research techniques because these methods compensated for the
weaknesses of each other and for their flexibility which provided an opportunity for
considering many different aspects of the problem; hence present a more representative
result.

3.3 Delimitation of the Study

This research was carried out in Southern Africa, in a country called Zimbabwe, in the
Midlands Province and based in a city called Gweru. It focused on the mining sector
and was specific to the small scale and artisanal miners.

3.4 Scope of the Study

3.4.1 Participants

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In order to enrich the data and to validate the accuracy, key stakeholders for the
research were involved and these comprised of miners who are directly involved in this
subsector, government staff who gave their perception of the small scale and artisanal
mining subsector, trade partners and investors as well as some academics who
discussed their views of this area of study.

3.4.2 Sampling Criteria

The researcher employed deliberate sampling to target only the small scale and
artisanal miners. This sampling technique cost much less than other sampling methods,
was very convenient and given stringent schedules, it required less time. Small scale
miners are well known for their arrogance and resistance; hence a careful deliberate
selection of samples was preferred.
Both small semi-formalized and the illegally operating miners were considered for this
research but however, child miners were not taken into account because they could not
give a representative account sufficient for this research.

3.4.3 Sample Size

The following criteria was used to define the scope of the study:

Target population comprises of about 2 000 small scale miners.

The research sample comprised of 150 stakeholders, of whom 20 were targeted
for interviews, either face to face, telephonically or through a poll. Only 18
managed to be interviewed. Of the remaining 130 that were earmarked to
complete a self-administered questionnaire, only 118 retuned the filled-in
questionnaires back to the researcher.

3.5 Tools for Data Collection

The researcher sought in-depth information through face to face interviews. This
researcher also applied desktop techniques by undertaking extensive literature survey
connected with the problem. Sources of data will included, but not limited to, mining
journals, published and unpublished reports, bulletins and newspapers. Telephonic
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interviews played an important role especially when the researcher sought information
from government institutions (e.g. The Ministry of Mines, and Zimbabwe Investment
Authority, etc.) and other established institutions and industries. It also saved time.
Questionnaire copies were delivered or mailed to the respondents with a request to
return them after they complete filling-in their responses.

3.6 Data Validity

The adequacy of the tools for data collection was evaluated by a pilot test before
application on field. During data collection, the researcher conducted discussions with
key informants and ensured that data collection was expedited as intended and as
carefully as it was supposed to be done. No help from third-party research assistance
was sought during the data collection phase. Open-ended questions on the
questionnaires were structured in such a way that they supported or verified the
respondents answers on the closed-ended (YES/NO) questions. The interview questions
were designed to be a further elaboration of the questions included in the
questionnaires. This made sure that there was consistency and validity in the responses
collected.

3.7

Integrity

To minimize any form of bias in questioning, a structured questionnaire and interview

process was instituted. The data obtained by the researcher from the field was reviewed
with key informants who have direct interface with the small scale and artisanal miners.

3.8

Data Presentation and Analysis Procedures

Data collected in this research was tabulated and checked for anomalies and then
presented and analyzed using descriptive statistics techniques i.e. graphs, tables,
spreadsheets and narrations.

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3.9

Summary

This chapter discussed the methodology that was used by the researcher in collecting
and analyzing research data. Other issues also discussed are the research design,
delimitation of the study, scope of the study, tools for data collection, data validity,
integrity, data presentation and analysis procedures and a summary. In the next
chapter, the researcher will analyze and present his research findings.

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CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.1 Introduction
This chapter covers the analysis of data obtained from the research questionnaires and
interviews. It sought to understand the factors affecting the small scale and artisanal
miners in securing investment and tries to ascertain the relative behavior of miners
towards matters of investment. Data analysis was therefore carried out by calculating
the percentage frequency of each phenomenon or theme using the frequency by which
each theme appeared on the given questionnaires and interview. Interviews,
observations and existing evidence were then summarized to support the findings from
the questionnaires. These findings of the study are therefore based on the data provided
by the respondents and have been categorized into the following subtopics:
demographics, investment and its challenges confronting the miners, state of
knowledge amongst the miners, training of the miners, partnerships between miners
and investors and amongst miners themselves, recommendations from respondents as
well as a summary.

4.2 Demographics
As shown in the Figure 4.1 below, there are fewer participant in the small scale and
artisanal mining sector who are below the age of 26 as compared to the group of
between 26 and 45 years. Beyond 45 years, number of participants also begins to drop.

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Demographics
35%
30%
25%
20%
15%
10%
5%
0%

1
below 25

between 26 and 35

between 36 and 45

above 45

Figure 4.1: Age Distribution amongst the small scale miners

Source: Own Research
Figure 4.2 also shows that most of the participant received education up to O Level with
a few having exceeded to acquiring trade diplomas and university degrees. An equally
small number did not achieve anything beyond primary school education.

Level of Education
17%

17%

17%
33%
17%

PRIMARY LEVEL

O' LEVEL

DIPLOMA

DEGREE

A' LEVEL

Figure 4.2: Level of education of the participants

Source: Own Research
Figures 4.3 and 4.4 also show that over 65% of respondents are involved either full-time
or part-time in this subsector and 30% of respondents considered themselves direct
participants of this sector.

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Level of involvement
40%
35%
30%
25%
20%
15%
10%
5%
0%

Figure 4.3: Level of Involvement of the Participants in Small Scale Mining

EMPLOYMENT STATUS
OTHER

PART-TIME EMPLOYMENT

FORMALLY EMPLOYED

SELF-EMPLOYED
0%

5%

10% 15% 20% 25% 30% 35% 40%

Figure 4.4: Employment Status of the Participants within Small Scale Mining

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4.3

Investment and its Challenges

QUESTIONNAIRE SUMMARY
INVESTOR CONCERN: size of the operations
INVESTOR CONCERN:reserve and exploartion data
INVESTOR CONCERN:ownership structure
ASM willingness to receive training and technical advice37%
ASM ability and willingness to realign their operations 50%
25%
ASM role in building investor confidence13%
25%
Incentive to encourage the small scale miners to lure investors25%90% 50%
Capacity of ASM to form partenrships 75%20%
10%
Capital and invstment availability 80%10%
4%
Awareness of how to engage investors 86% 75%25%0.60.2
0.2
0%
YES

NO

NOT SURE

HIGH

100% 200% 300% 400%

MEDIUM

LOW

Figure 4.5: Summary of research questionnaire responses.

4.3.1 The Miner

As illustrated from the Figure 4.5, the most outstanding issue hindering small scale and
artisanal miners from accessing investment capital is a lack of reserve and exploration
data about their operations. Other related issues were the lack of knowledge on how to
engage investors, poor or no organizational business structure and records, lack of
collateral (both in terms of tangible assets as well as proved reserves), political risks
involved with probable nationalization of mining investments, a lack of business acumen
and consequently lack of confidence amongst the small scale miners. 75% of
respondents believe that small scale and artisanal miners are not aware of how to
engage investors, increase investor confidence and raise investment capital due to the
above mentioned reasons and an accepted general lack of exposure to the business
world mainly because of not being registered entities. Less than 10% of respondents
believe however, that small scale miners would prefer remaining clandestine and would
therefore resent formalities that come about with partnering with an investor.
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4.3.2 The Investor

On the contrary, 86% of the respondents believe that though there are many potential
investors available, they (investors) are worried mainly about the government policies
that govern mining investments and mining rights. Investors in this case, would prefer
secure, consistent, accommodative and reliable policies. The majority of the
respondents comprehend the influence that small scale miners bear in attempting to
build investor confidence but also allude to the lack of knowledge of what investors
inherently want. Respondents also cited the investors huge concern on exploration and
reserve data, proof of ownership of mining ventures, the lack of affiliation of small scale
miners to formalized and registered associations and entities as well as the size of the
operations. It has been discovered from the interviews that investors, especially those
bringing Foreign Direct Investments (FDI), prefer considering investments of at least
US$2 million or more on registered large deposits; a size that is often beyond the
capacity of Zimbabwean small scale miners. Least of their concern, according to the
survey, is business structure.

4.4 Knowledge

About 90% of respondents believe that miners do not have any knowledge about the
government provisions that are designed to promote small scale investments. This is
largely due to a lack of access to and awareness of government policies and would need
national outreach programs to train the miners on such matters and try and bridge this
knowledge gap, the study claimed. They recommend that the government should follow
the miners and train them within their own environments rather than summoning them
to centralized training institutes, a condition that may yield very low turnout. Only 10%
of the respondents remain adamant that small scale miners are aware of the provisions
and incentive but are always looking for loopholes to exploit within the government and
legislative system. This section of respondents believes that miners are very resistant to

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change and fear for the dilution of their proceeds and any form of change would have to
be forced strongly upon them.
About 75% of the respondents argue that miners are willing to realign their operations
but lack the technical knowhow and the necessary strategies of how to go about it,
citing a lack of knowledge as the major drawback, hence must be trained. The
remaining 25% suggests that miners are generally unwilling to spend some time and
money on realigning their operations which they already consider to be effective.

4.5 Training

After realizing the lack of knowledge amongst the small scale miners, 50% of the
respondents are not certain on whether these miners would be willing to receive training
and advice on how to run their operations mainly due to their incredulous behavior. 25%
argues that these miners are somewhat already eager to know better ways of mining
and are absolutely willing to undertake any form of training because they directly relate
this form of training to improved profits. The remaining 25% simply believes that miners
are out-rightly unwilling to participate in any form of formalized activities such as
trainings. Moreover, their nomadic behavior requires them to be always on the move, a
condition that renders formalized training and conduct almost impossible.

4.6 Partnerships

The respondents almost unanimously, with 80% agreeing that small scale and artisanal
miners can form partnerships with large scale miners. They believed that as long as the
terms of engagement are clearly laid out and beneficial to all parties involved,
partnerships can be formed. They also believed that because the large scale miners are
already structured and organized, they are more prepared to partner with small scale
operators where they will lend skills and systems to help improve the small scale
miners, provided the setup is not heavily politicized or politically compromised.

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20% believe that once the small scale miners partner with large scale operators, there
begins to be high staff turnover within the small operations, losing personnel to larger
mines who have higher immediate benefits to offer, considering their size and
profitability.
Less than 10% respondents however believe that partnerships amongst the small scale
miners themselves pose a lot of challenges whereby individuals would fight for
autonomy and 100% control of their proceeds but nonetheless, an overall of
approximately 86% of respondents rendered partnerships at this level as highly possible
if the right education, capital and training on management skills is imparted to the
partners. Also to enable better management, such partnerships should be put into zones
or regions where they can coordinate and monitor their operations better.

4.7 Respondents Recommendations

Many of the respondents had varied views of what they think should be done by small
scale and artisanal miners in order to improve their chances of securing investment
capital.
The majority of the respondents stated that these miners should formalize comply with
the mining regulations and become more socially and environmentally responsible. That
they should present properly documented business plans ad get registered. Other
respondents suggested that small scale miners should become more transparent in their
operations and participate in government outreach programs, a move that would see
them engaging with the government instead of avoiding it.

4.8 Summary

This chapter presented an analysis and presentation of the research findings. Other
issues discussed were an introduction, demographics, investment and its challenges,
knowledge, training, partnerships, respondents recommendations and a summary. In

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the following chapter, the researcher will present a conclusion and recommendations on
the current area of study.

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CHAPTER FIVE
CONCLUSIONS AND RECOMMENDATIONS
5.1 Introduction
This chapter discusses the conclusions and recommendations to the research objectives
of the area of study. It presents a detailed account of the researchers perceived
conclusions guided by the research objectives as well as the recommendations of what
the researcher proposes should be done to address the issues covered in this area of
study. Other topics discussed herein include the systematic recommendations that can
be adopted by the small scale and artisanal miners in securing funding, an approach
towards structural operations, training the miners, how miners can influence policy
makers and a summary.

5.2 CONCLUSIONS

5.2.1 A Systematic Approach

There is a general lack of systematic approaches that have been adopted by the small
scale and artisanal miners. Their operations are not organized and there is no
coordination or proper planning. The mining operations are mainly haphazard. This
makes it very difficult for investors to build confidence in the miners and even harder for
miners to approach investors because they lack the relevant requisites, plans and
strategies. Moreover, there is also a general lack of knowledge of how to secure
investments, though there are many capable investors with enough capital to invest in
this subsector. Miners generally understand that they have a big role to play in building
investor confidence but they do not know what typical investors look out for in a
potential investments proposal.

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5.2.2 Structural Operations

The majority of participants from the research carried out, belong to the active
generations of between 26 and 45 years. The majority of these participants are only
educated up to Ordinary Level (OLevel) and because they are predominantly selfemployed or involved in small scale and artisanal mining on a part-time basis, they
seldom possess any managerial or technical skills and expertise hence they find it
completely difficult to come up with any form of operation that is structured. There is
very little knowledge amongst these participants of how to build sustainable operations
mainly because they lack training, exposure and the necessary revenue that is required
to build such operations. This researcher found out that though the small scale and
artisanal miners in general, are very willing to realign their operations and achieve
better yields and investments, they simply do not know how to go about this. Investors
prefer to deal with miners who have significant sizes of claims where significant returns
can be yielded on any investment provided. Large scale companies are well equipped in
terms of structured operations and investors who have enough capital can also structure
any form of operation to become formalized and structured, once they engage with it.

5.2.3 Training

There is also a general lack of knowledge of how to secure investments. Miners

generally do not know what typical investors look out for in a potential investments
proposal. Miners do not understand how partnerships and syndicates would boost their
revenues. They also lack an understanding of incentives that are found in the statutes
that are targeted for partnerships and small scale investments. The Zimbabwean
government has procedures for acquiring mining licenses and permits and these are
included in the Mines and Minerals Act (Chapter 21:05), but the majority of the small
scale and artisanal miners are not aware of these procedures or how to access them.
This is mainly due to the lack of a strong training precedence in the subsector.
Secondly, the researcher also found out that the level of commitment amongst these
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miners to receiving training that addresses their lack of knowledge and expertise cannot
be ascertained. Some of the miners consider it important to receive this training while
others are worried that this would simply turn out to be a complete waste of time, time
they would rather spend panning for gold. Therefore the training of small scale and
artisanal miners poses a very peculiar challenge and one that is mainly unique because
of the nomadic nature of miners as well as the attitude of the miners but nonetheless,
this training is very possible regardless of it being wading into uncharted waters.

5.2.4 Policy

There is a general lack of awareness of the policies that govern both mining activities
and investments, amongst the small scale and artisanal miners. There is also very little
hope or optimism amongst the miners that they can ever be able to fruitful engage with
the government and negotiate for favorable policies that affect their operations. There is
again a lot of mistrust that the government can consider the miners and go on to honor
any subsequent agreements. Small scale and artisanal miners have had a several bad
encounters with the government in the past under an operation codenamed
chikorokoza chapera, spearheaded by the police force so this killed any form of trust
between the miners and the government, whereby miners are always incredulous
towards any government initiatives. The government on the contrary, has become more
receptive to small miners because large scale operations are not functioning at their
optimum capacity. It has shifted its approach towards promoting instead of destroying
the small scale industry.
The major problem here is that it will take a long time to rebuild the trust between these
two parties but the need for this initiative cannot be overemphasized.

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5.3 RECOMMENDATIONS

5.3.1 A Systematic Approach

The small scale miners should firstly realize that they cannot achieve the best output
from their operations without working together with other stakeholders. To this effect,
they should register their operations and acquire legal mining title or claims then start
the process of formalizing and coming out of their current clandestine operations. The
requirements for acquiring mining licenses and permits are so simple and they do not
require any form of educational qualifications hence the process is open for all the
miners. The miners should also make strategic alliances with various arms of
government and be transparent with their operations so that methodical ways of
assisting them can be devised. This would involve refraining from pilferage of their
output and black markets. Once they operate above board, feasibilities and proper
business and mining plans can be made hence long term strategies can be developed to
assist them in accessing investment capital improving their operations. They will also
become considered during policy discussions, government grants for collateral,
amendment of certain laws as well as receiving security of their operations from the
state.

5.3.2 Structural Operations

Small scale miners therefore must then form syndicates or cooperatives that can
combine adjacent mining titles into larger block that are appealing to investors. Forming
syndicates and partnerships amongst themselves also enables the miners to identify
areas where they would need to outsource skills and those that can be addressed by the
partners. The syndicate is more adept at acquiring skills and seeking training from
consultants and the mining extension officers that have been provided by the

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government because the syndicate is an organized unit which can be accessed and
approached by many stakeholders and again is more capable of building collateral
especially by combining the small assets of the partners involved. A syndicate is also
less nomadic hence strategic objectives can be implemented over longer periods of
time. Once a functional syndicate is formed and the relevant knowledge is sought, the
miners must then quickly address safety, health and environmental issues to minimize
injury to personnel, to reduce health risks and prevent or minimize damage to the
environment. This would be possible when the syndicate begins to harmoniously work
together with the government departments such as the Ministry of Mines and the
Environmental Management Agency.
Forming a structured operations will also ensure that the miners begin to carry out
value-addition and complementary activities, endeavors which would improve the
productivity and profitability of their operations and enhance community development.
Profits realized must then be reinvested back into the operations and the
complementary activities to further boost community development and sustainability of
the business. This would enable them to mechanize, partly or completely, through
buying appropriate tools and machines. Such an approach builds the confidence of the
investor.
Miners must also join the Zimbabwe Artisanal and Small Scale Miners Council
(ZASSMC), an association that represents their interests. It is already fighting for various
causes for small scale miners and continues to engage and have dialogue with the
government representatives.

5.3.3 Training

Any form of good decision comes from a background of adequate and relevant training.
To this note, small scale and artisanal miners must acknowledge their ignorance and
seek guidance from experts and other consultants. Once affiliated to the ZASSMC,
miners can meet with stakeholders from various disciplines and they can exchange
business knowhow and technical expertise amongst themselves rather than operating in
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solitude and isolation. This would enable them to form knowledge networks which are
more accessible to them all the time rather than having to wait for assistance from
distant officials and consultants. It also enables the miners to engage and communicate
with the government, through ZASSMC, about their training requirements and the
methods of training that would be ideal for them. The miners must acquire business
knowhow on how to run successful partnerships, how to engage investors and how to
maintain a proper business-like structures. Other technical expertise must also be
sought depending on the nature of the operations being carried out. The government
has availed, for free, mining extension officers in every provincial and district mining
office to cater to the needs of the ignorant, so small scale and artisanal miners must
take advantage of this facility.
Lastly, the artisanal and small scale miners must seek knowledge of alternative sources
of investments, instead of relying on the limited traditional funding sources. This comes
through attending industry related tradeshows and exhibitions where they would meet
with other established miners, trade partners, investors and service providers.

5.3.4 Policy
The miners must their respective association, the ZASSMC, to collect and group their
concern prior to presenting them to the government. It is important that these miners
immediately join and begin to participate in dialogues within this association to ensure
that any issues of contention are laid out and then later presented to all the relevant
stakeholders. There is not much that can be achieved by complaining in solitude, hence
miners must find a common voice and speak as one subsector. Because the miners
would have become registered entities, the government cannot afford to ignore them
and investors will also follow suit. Miners must also find ways of reducing pilferage and
black market influence within their sector. This move would see the gross output from
the small scale and artisanal sector rise inextricably such that the government would
definitely begin to realize this contribution as fundamental to national growth and gross
domestic product. This would warrant the small scale miners a seat on the kings table.

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This would automatically be followed by large investment capital opportunities that arise
from both the private sector and the government.

5.4 Summary

This chapter discussed the conclusions and recommendations to the research objectives
of the area of study. It presented a detailed account of the researchers perceived
conclusions guided by the research objectives as well as the recommendations of what
the researcher proposes should be done to address the issues covered in this area of
study. Other topics discussed herein included the systematic recommendations that can
be adopted by the small scale and artisanal miners in securing funding, an approach
towards structural operations, training the miners, how miners can influence policy
makers and a summary.

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REFERENCES

African Development Bank (AfDB), Zimbabwe Monthly Economic Review, Issue No. 11.
March 2013
(ILO), I. L. O. (1999). Social and Labour Issues in Small-Scale Mines. Geneva,
Hawkins, T., (2009), The Mining Sector in Zimbabwe and its Potential Contribution to
Recovery, United Nations Development Programme
Maponga O, Ngorima C.F, Overcoming Environmental Problems In The Gold Panning
Sector Through Legislation And Education: The Zimbabwean Experience, Institute
of Mining Research, University of Zimbabwe, Journal of Cleaner Production 11
(2003) 147157
Hentschel, T., Hruschka, F., & Priester, M. (2003). Artisanal and small-scale mining:
challenges and opportunities. IIED.
Barreto, M. L., (2011). Legalization guide for Artisanal and Small-Scale Mining (ASM),
Draft for discussion. ARM Series on Responsible ASM No.5,
Spiegel, Samuel J., and Marcello Mariz Veiga. (2006). "Knowledge sharing in artisanal
mining communities: mercury, technology and sustainability in developing
countries..
Telmer, Kevin H., and Marcello M. Veiga. (2009). "World emissions of mercury from
artisanal and small scale gold mining." In Mercury fate and transport in the global
atmosphere, pp. 131-172. Springer US.

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APPENDICES

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Page 48 of 58

Page 49 of 58

Page 50 of 58

LETTER OF INTRODUCTION
11 BENSAM FLATS
MAIN STREET
GWERU
ZIMBABWE
Dear Respondent
RE: I request that you assist me by completing the attached questionnaire
My name is Gumbie Stewart M. and I am a student at the Zimbabwe Institute of
Management, studying for a Diploma in Mineral Resource Management (DMRM).
Research is a compulsory component of my DMRM Qualification. I have therefore very
carefully selected you to assist me by completing the attached questionnaire.
This questionnaire is anonymous and I therefore do not expect to see your name
recorded anywhere. As such, do not hesitate to answer the questions as truthfully as
possible. The information and data that you will present shall be used for no other
purpose other than for the purposes of my academic research assignment. The data
and information so disclosed, will be kept confidentially, always.
I thank you in advance for the assistance that I believe you will accord me,
unconditionally.
Yours faithfully
Gumbie Stewart M.
Email: stewartgumbie@gmail.com
Mobile: 0773 302 920

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QUESTIONNAIRE
SECTION A
Instruction: Tick the most appropriate answer.
Indicate your age group
A.
B.
A.
C.
B.
A.
D.
C.
B.
C.
D.

E.

Tick

Below 25
Indicate your highest academic qualification
Tick
What
type
involvement
do you have with small scale
Tick
Between
26 of
and
35
Primary level
and artisanal
What
is your employment
miners?
status?
Tick
Between 36 and 45
O level
Operational (Direct Participant)
Self-employed
Above 45
A level
Academic/Scholarly
Formally
employed
Diploma (specify)
Regulatory
Part-time
employment
(Government-Related)

Trading
Other
(specify).....
.
(Product Supplier/Consumer)
..
Degree (specify)

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SECTION B
Instruction: Tick the most appropriate answer.

A.
B.
A.
A.
C.
B.
A.
B.
C.
B.
C.
C.

Are the small scale and artisanal miners aware of how

Tick
to
engage
investors?
Are
the capable
investors, with enough capital, available
Tick
to partner
Can
the small
with
scale
these
and
miners,
artisanal
assuming
minersthat
form
the miners
Tick
Yes
meet
partnerships
Are
there
all the
any
requirements?
amongst
incentives
themselves
currently in
available
order tothat
increase
are Tick
their
given
capacity?
to the small scale miners to encourage them to
No
Yes
look for investors?
Yes
Partly
No
Yes
No
Not Clear
No
Not likely
Not Sure

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SECTION C
Instruction: Tick the most appropriate answer.

A.
B.
A.
A.
C.
B.
B.
D.
C.
C.
D.
D.

Do small scale and artisanal miners have a role to play

Tick
in
building
and for
promoting
investment
What
do investor
investorsconfidence
primarily look
in a partnership
Tick
in their
sector?
with
Are
the
small
small
scale
scale
andand
artisanal
artisanal
miners?
miners able and willing
Tick
13) Why
to realign
Are
the small
their
scale
operations
and artisanal
so thatminers
they can
willing
partner
to with
Tick
High and influential
Ownership
structurerole
investors?
receive
training and advice on how to improve their
are so
operations?
Medium and
less influential
role reports
Reserve
structure
and exploration
Absolutely
many
Absolutely
Low and
little
influence
Size
of the
operations
Able but do not know how to
Not
certain
at allof people involved in the operation
Number
Unwilling
Unwilling
Unable
Other (specify)

.
artisanal and small scale miners in Zimbabwe failing to access investment capital to
sustain and/or improve their operations?

14) Are small scale miners aware of how to engage investors, increase investor
confidence and raise investment capital?

15) Do the miners possess enough knowledge of the currently available provisions and
government initiatives that support them? If not, how can these miners be educated
or informed of such provisions?

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16) Are they willing to undergo some transformations and realignments within their
operations? How can they best go about this? (structure, operations management,
higher recovery, safety, sustainability, access to formal markets and banks)

17) What do investors look out for in a potential partnership and how can small scale
miners cope with such stringent requirements?

18) Can synergies be successfully developed between large scale operators and the
small scale and artisanal miners in Zimbabwe?

19) Can the small scale and artisanal miners form cooperatives, groups or structured
entities amongst themselves and work together?

20) What strategy can be adopted by the small scale and artisanal miners in trying to
garner or influence government support and policies that favor their type of
operations?

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21) What systematic recommendations do you think should be adopted by the small
scale and artisanal miners?

THANK YOU FOR YOUR ASSISTANCE

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LETTER OF INTRODUCTION
11 BENSAM FLATS
MAIN STREET
GWERU
ZIMBABWE
Dear Interviewee
RE: I request that you assist me by attending a face to face interview with me
My name is Gumbie Stewart M. and I am a student at the Zimbabwe Institute of
Management, studying for a Diploma in Mineral Resource Management (DMRM).
Research is a compulsory component of my DMRM Qualification. I have therefore very
carefully selected you to assist me by attending a face to face interview with me.
This interview has been designed to be short and I therefore do not expect to take much
of your time. Do not hesitate to answer the questions as truthfully as possible because
the information and data that you will present shall be used for no other purpose other
than for the purposes of my academic research assignment. The data and information
so disclosed, will be kept confidentially, always.
I thank you in advance for the assistance that I believe you will accord me,
unconditionally.
Yours faithfully
Gumbie Stewart M.
Email: stewartgumbie@gmail.com
Mobile: 0773 302 920

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INTERVIEW QUESTIONS
22) Why are so many artisanal and small scale miners in Zimbabwe failing to access
investment capital to sustain and/or improve their operations?

23) Are small scale miners aware of how to engage investors, increase investor
confidence and raise investment capital?

24) Do the miners possess enough knowledge of the currently available provisions and
government initiatives that support them? If not, how can these miners be educated
or informed of such provisions?
25) Are they willing to undergo some transformations and realignments within their
operations? How can they best go about this? (structure, operations management,
higher recovery, safety, sustainability, access to formal markets and banks)

26) What do investors look out for in a potential partnership and how can small scale
miners cope with such stringent requirements?

27) Can synergies be successfully developed between large scale operators and the
small scale and artisanal miners in Zimbabwe?

28) Can the small scale and artisanal miners for cooperatives, groups or structured
entities amongst themselves and work together?

29) What strategy can be adopted by the small scale and artisanal miners in trying to
garner or influence government support and policies that favor their type of
operations?

30) What systematic recommendations do you think should be adopted by the small
scale and artisanal miners?
THANK YOU FOR YOUR ASSISTANCE

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