Background

Small and Artisinal Gold Mining is practiced extensively in all provinces of Zimbabwe as it has
become the sole source of making a living for many. Despite Shortage of skills small scale miners
mainly face challenges of milling their ores after mining, with some having to wait for up to 3 weeks to
get a chance to mill.

Despite a massive contribution to the gold production statistics, which currently is greater than 60%
(as of 2019) however, there is little or no concern by the government to upgrade or provide milling
centers to the miners. In the year 2008 the reserve bank made an effort to establish milling centers
across the country but however the project failed due to economic melt down at the time which led
them only to manage to set up a few in Mashonaland East Province. Since then there is no work
which has been done to resuscitate or increase the number of centers country wide.

Custom milling centers mainly comprise of the 3 stamp or 5 stamp mills and hammer mills. Due to the
unavailability of stamp mills in some remote locations some miners have resorted into purchasing
hammers which are cheaper but somehow are disadvantaged due to their low throughput rates and
durability. However the purchase of small hammer mills by some miners has not significantly reduced
the number of ques in convectional custom milling centers as there is an increase in the number of
people who are participating in small scale gold mining operations. Current estimates are nearly 850
000 people are employed in the sector as of 2019 compared to 350 000 in the year 2012

Closing the Gap

In order to close the gap it therefore calls for the Government of Zimbabwe, individuals and establish
companies to set up custom milling sites mainly comprised of the traditional stamp mills. The stamp
mill is mainly favored due to its durability and a high throughput at an affordable cost. However stamp
mills tend to offer low gold recovery due to their coarser product and are mainly suitable for ores rich
in gravity recoverable gold. In addition, stamp mills require a higher starting capital , that is for
purchase and installations.

Currently the distribution of stamp mills is in an haphazard manner, with most milling centers being
concentrated near town centers where there is a high number of SMEs and very few in the remote
rural areas. This somehow results in some miners having to travel over 100 km, which in-turn makes
their mining operations uneconomic. Hence there is need to set up milling centers in remote areas
with more emphasis on their distribution being administered by the Ministry of Mines so as to ensure
adequate coverage.

Despite distribution other challenges faced by current operating milling centers include power
shortages, high energy/power prices and lack of adequate Forex to purchase supplies and spares,
resulting in longer than usual downtimes.
Investment Components of a Custom Milling Center

The purchase of a stamp mill requires at least US$ 30 000 for a three stamp mill in Zimbabwe and this
can extend to US$ 50 000 with some installations. The output of the stamp mill somehow, depends on
its size but for 3 stamp mill it will usually produce over 20 000 tonnes per year of milled ore. In an
organisation or individual having more than five 3 stamp mills we are looking at milled tonnage which
is above 100 000 tonnes per year

One of the key components is land. In order to setup a custom milling center one would require at
least 10 hectors with a good catchment of SMEs. In addition to that one would also require good
roads which will make the center accessible to miners. Other requirements will include water
boreholes, Tractors and trailers, support equipment, water pumps, jack hammers, chemicals and
generators.

Labor requirements of a custom mill may differ depending on the organisational structure but usually it
follows a structure below.

Center Supervisor 1

Mill operators 3

Mechanic 1

Drivers 2

Casual Labor 10

Security 4

Artisans 2