Gold Mining In Zimbabwe
by Linda Mnkandla
What do you do when you want to venture into something that has never been done before? Wait for an example in whose footsteps you can follow, or forge your own path? In 2011, Goldchip Investments was born and the vision behind it was “To establish sustainable programs that improve access worldwide to investment, opportunity, and lifesaving services now and forever”. Seven years later and Goldchip Investments has a fully-functional gold mine in Zimbabwe and is set to launch their first ICO (Initial Coin Offering) which is a first for Zimbabwe.
WHY ZIMBABWE?
Why a nation that has been (over the last few decades) embroiled in economic crises and political unrest?
One might hesitate to invest in Zimbabwe because of its history as a nation. There are many who have their eyes on the upcoming 2018 elections to see where and how the dust will settle before they venture forth. So for someone who has been invested in Zimbabwean industry for the last decade, the words ‘dedication’ and ‘perseverance’ spring to mind. To take an obstacle and turn it into an opportunity was just the beginning for Henry Jenkins, owner, and CEO of Goldchip Investments.
When asked why he chose Zimbabwe, his response was simple. “Zimbabwe has the highest percentage of untapped gold exploration in the world.” According to a 2008 report on miningreview.com, many mines in Zimbabwe have operated without resident geologists. This means that in addition to all the unexplored land whose natural resources we are blissfully unaware of, one can guarantee that those small mines are not being fully exploited.
PRE-COLONIAL DAYS
Contrary to popular belief, Zimbabweans have been mining as far back as the 13th Century with copper and gold being mined by the Munhumutapa Empire. There is evidence of gold being used in Great Zimbabwe (jewelry, ornamental decoration) and a good deal of their trade around that time involved gold and copper. Iron and steel were also mined prior to colonialism. There were blast furnaces to accompany that industrial development. It is also clear that the mining standards at the time were higher than the standards that most seem to have adopted today.
THEY CALLED IT RHODESIA
Moving forward to the mid-1880’s, there were a number of European settlers who migrated to Zimbabwe specifically to mine. History often depicts them as having introduced this country to the mining sector. Globe & Phoenix Gold Mine (in Kwekwe) which is said to have been discovered in 1984, was developed around pre-existing mine shafts. This was not the only mine developed around that period which followed the same modus operandi in terms of their claims and disregard of the fact that Zimbabweans were mining, crushing and smelting long before the arrival of the British and the Portuguese settlers.
TODAY
Fast-forward almost a hundred years and Rhodesia gained its independence in 1980. Come 1984, quite a few of these mines, Blanket Gold Mine and Jena Gold Mine to name a couple of the big ones, were nationalised. Zimbabwe’s economy grew and did well for a time but its mining sector began to gradually depreciate. By 2008 as the world experienced an unfortunate economic crisis, Zimbabwe sank deeper than most. Enter: the rise of Artisanal Mining (simply known as Gold Panning). The hardships at the time led many to pursue this form of employment because they had no other options but unfortunately, it has more cons than pros. Gold panning is largely unregulated. While some are registered by the Government, most are not. Unregistered mining creates a number of valid issues which, as they remain unregulated, are creating devastating long-term effects to the culture and the landscape of Zimbabwean miners.
Because miners dig as and where they feel like digging, without structure and solid planning, there has been much erosion; destruction of ecosystems; giant pits that not only create eyesores and affect tourism but pose a great danger to the average wanderer.
Because a great deal of this panning is done away from towns and cities and law enforcement, there is not much regulation of crime, working conditions or the challenges faced when you combine drinking and prostitution with disease.
Another challenge with this form of mining is the legality of where the gold ends up. Any legitimate gold miner in Zimbabwe will sell their gold to Fidelity Printers & Refiners. Some of the artisanal miners do this, but a large amount is smuggled out of the country. There is also a relationship between some people of power and miners who tend to be protective over certain areas of land and so work in conjunction to ensure that they can run those areas without any kind of interference from Law Enforcement.
Fortunately, the last decade has not seen all these issues ignored. With the establishment of the Zimbabwe Miners Federation, the government has made it clear that they are willing to “represent and contribute to the development and growth of small-scale miners”. One can then hope that in addition to this growing group of miners (800,000+) receiving more attention and protection, the gold mined by them can go where it should in a bid to help build our economy. The Gold Miners Association of Zimbabwe (GMAZ) and the Association of Mine Managers of Zimbabwe (AMMZ) are but a couple other associations working towards regulating and improving conditions and standards within the industry.
In a country where a number of families rely even on children to provide income, it is not uncommon to have children working alongside adults in mining shafts. One hopes that the government will grow its focus on the mining sector as a whole and strive to ensure that working conditions in the bigger mines are also safe for those working in them. Zimbabwe is clearly ripe for investment. It is our sincere hope that those able, would delve in and help us to grow this fledgling economy.
For more information about our mining project, please follow us on
