Harare — TN Bank has advanced US dollars cash equivalent to R5 million to Zimbabwe Gold Miners and Millers Association to buy gold.
This followed last week's visit by the Deputy Minister of Mines and Mining Development Mr Murisi Zwizwai and representatives from financial institutions to the Midlands Province to access operations and the needs of gold diggers and millers.
The Midlands-based association has a membership of about 500 gold miners and millers.
Speaking at the handover ceremony, Mines and Mining Development Minister Obert Mpofu urged millers to deliver gold bought to Fidelity Printers.
He also urged other financial institutions to emulate "what TN Bank has done".
TN Financial Holding chief executive Mr Tawanda Nyambirai said the bank was targeting advancing loans amounting to R240 million to gold millers.
Zigmma organising secretary had indicated the millers required at least US$30 million.
"We appreciate gold production is essential and this is why we have showed this level of commitment," said Mr Nyambirai.
Over the years, gold from small miners has contributed significantly to the overall national output.
Gold remains one of Zimbabwe's top exports, but output has tumbled as miners complained that the Reserve Bank of Zimbabwe, the only authorised buyer for more than two decades, offered unfair prices and delayed on payments.
No gold was lodged for sale in the first quarter of the year, but in April and May, miners brought in 600 kilogrammes, according to the Chamber of Mines.
Last year, miners produced 3,576 kilogrammes compared to a peak of 21,108 kg in 1999.
Gold has been identified as one of the minerals which could underpin the success of the Short-Term Economic Recovery Programme.
