An investigation into the relevance of small-scale gold buyers to artisan gold miners in Zimbabwe: A case study of artisanal gold miners in Kwekwe

Abstract

The research investigates the relevance of small-scale gold buyers in the small-scale gold mining sector. There are a lot of small-scale gold buyers operating around Zimbabwe in general and in the gold mining area of Kwekwe. Mining activities of small-scale gold miners has become a key contributor to the overall gold production in the country despite their minimal technological advancement and little access to markets. The objectives of the research were; to assess the functions, benefits and contributions of gold buyers in the operations of small-scale gold miners in Zimbabwe. Literature review on the role of intermediaries and their benefits in the small-scale gold mining sector were also reviewed. The outcome from literature shows that intermediaries play some critical functions. Strategies the small-scale gold buyers use in their gold buying operations such as cost-average techniques and forward buying were also outlined. The study leaned towards the phenomenology philosophy because it provides qualitative data with depth in meaning. The case study was adopted as a research strategy. Data from the population comprising both the small-scale gold miners and small-scale gold buyers was collected using the interview research guide from a sample size of 120 participants with stratified sampling technique being employed. The research findings revealed that the small-scale gold buyers are playing some critical functions in the operations of small-scale gold miners. Some of the major functions are; facilitation of gold marketing, provisions of capital and technological assistance. The research results also show that access to equipment and pricing discovery are the major benefits derived by the small-scale gold miners in Kwekwe area. The study concludes that the functions of small-scale gold buying, resource provision and financier are dominant from the small-scale gold buyers. The research also concludes that the small-scale gold miners operations improved as a result of assistance from the small-scale gold buyers. The research recommends that the small-scale gold miners be availed with loans and equipment while there should be set a small-scale gold marketing board by the government to regulate the buying and selling of small-scale gold miners produce. An area of further research is to investigate the role of funding and the economic effects on productivity in the operations of small-scale gold mining sector in Zimbabwe.