HARARE, Feb. 17 (Xinhua) -- The Zimbabwean government is on the verge of striking a deal with India worth 60 million U.S. dollars to revamp mine mechanization, local media The Chronicle reported on Tuesday.
The chief executive officer of the Zimbabwe Miners' Federation (ZMF) Wellington Takavarasha on Monday said the government is finalizing a deal with India worth 60 million dollars that will enhance mine mechanization, especially for the small-scale miners.
The mining industry contributes immensely toward the economy. However, the mining sector last year was reeling under various challenges with the gold sector in particular constrained by high production costs, power outages and shortage of critical inputs.
Takavarasha was optimistic that the mining sector would be revamped should the deal between India and Zimbabwe go through.
He said the ZMF was working to ensure that miners were fully equipped to ensure effectiveness and high output. Takavarasha said the mining sector would not be affected by the recent decision by the Reserve Bank of Zimbabwe to stop funding quasi-fiscal activities.
In the recently announced national budget and the monetary policy statements, the government and the central bank said the RBZ would be stopping engaging in quasi-fiscal activities as these were fuelling inflation.
The ZMF had approached the RBZ to bankroll the mine mechanization program as it had done with farm mechanization.
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