ZMF, Glow Petroleum strike lucrative 5-yr fuel supply deal for Zimbabwe’s small-scale gold miners
HARARE – The Zimbabwe Miners Federation has struck a 5-year deal with Glow Petroleum, which will see gold miners procuring fuel at US$1 per litre from all the eight mining regions where the service station is present.
The agreement is meant to cushion ZMF members from the acute fuel shortages currently obtaining in Zimbabwe. Previously, ZMF said the fuel shortages had significantly crippled small-scale mining operations, as most of its members used diesel.
ZMF president Henrietta Rushwaya told delegates at a fuel launch program in Harare that the decision to settle for Glow Petroleum came after extensive research and rigorous meetings with various players in the fuel industry.
“This was purely based on a business premise and as your representatives for the small scale and artisanal miners, we felt that we had to come up with a deal that will benefit the miner out there in the bush,” said Rushwaya.
“We had to push Glow Petroleum to come out with a price that they felt would also leave us with the need to be still want to be associated with them as a company. As such, up to the last point of delivery in Zimbabwe, wherever you want the fuel to be delivered, the last price we are getting per litre landed at all those places is US$1.”
Rushwaya told this publication that the deal would be renewable after 5 years. Glow Petroleum has 58 service stations across Zimbabwe. The company’s managing director, Aaron Chinhara, pledged to ensure availability of enough fuel at all the service stations for the scheme to work smoothly.
“We will make sure that we get to our motherboard, ZERA, to say that in areas that are prescribed our service stations are going to leave or to reserve so much amount of fuel. So that when the miners when they come they must not wait for another week for a delivery to come,” he said.
To be a beneficiary, one has to be a ZMF registered member, hold a nostro account with Metbank or with another bank and make a transfer to ZMF collections account so that Glow Petroleum gets their money for the prepaid fuel facility. In other words, one is required to project weekly or monthly fuel consumption so that when paid the drawdown will work effectively.
A minimum delivery of the bulk consignment from the nearest service station to the mine will be 10,000 litres. Distance covered will be 0 – 50 kilometers from the service station. For areas above the 50 kilometers mark – minimum delivery will be 20 000 litres. Even the small artisanal miners are allowed to buy in small quantities as long they are located around the service station and depending on the accessibility of the roads.
ZMF revealed it had registered 30,000 small scale miners and was trying to formalise in excess of 1-1.5 million artisanal miners. Zimbabwe is in the process of trying to implement the “use it or lose it” policy.
“The policy will enable us to bring all the non-registered miners to be part and parcel of the beneficiaries who will get to have land allocated to them within their respective mining areas, which they can now utilize. Once we have registered miners they will be official miners who can now maximise and utilize the available claims for mining purposes and this will also enable them to be formalized,” Rushwaya added.
The federation is on a drive to encourage its members to produce more so that by 2023 Zimbabwe can achieve gold deliveries of 100 tonne per year. Gold producers currently retain 55% of gold proceeds with the remainder liquidated at the interbank market at the prevailing rate.