X factors of mining “
practical lessons to mining
Like every business mining has its key factors that can make it do extremely well or fail .
Most miners think a good sample will make them succeed unfortunately a good sample is not sustainable unless you know the importance of the following factors in the mining sector. If you master them day by day you will blossom even in dark days and enjoy glory days to the fullest.
Enjoy the ride .
Three pillars of wholesome mining in order
1 strategic management
3 the boss ” gold panner ” tsheketsha korokoza
1 strategic management
The mine manager is key to function his impact is so crucial such his complete absence can be measured by a lot of red flags like low output ; loss of equipment; no records ; lack of proper compliance and production that cannot be measured let alone be sustainable. Before you appoint a manager know your weakness and hire someone who will compliment your weakness. Secondly create a management team that involves you and him stop cellphone management of any kind . Cellphones are good for reports and analysis only . To your team third person in form of someone who compliments his weak ; it can be a blaster or cyanide plant manager depending on which area your manager is good at .
First attribute of your manager should be administration before anything then followed by one of the two pillars of mining leaching and mining. The security guard is not part of management must not be at whatever costs .
Your relatives ( including your wife and kids ) should get a job somewhere else or be prepared to take instructions from a management team never to directly report to you no matter what. Don’t discuss mining issues with them listen to their opinions silently unless if they qualify then appoint them . Paid management team and all your employees well and fire them for underperformance never rehire someone fired by management team .
Debt is a cancer affecting the whole world unfortunately in artisanal mining Debt is what Cellphone lines are to econet , Lithium is to Tesla car , imagine if econet will stop selling lines without coming up with an alternative. Most of mining services are paying after work completion which is root causes of all Debts you hear about in mining stories. First artisanal miners use cheapest means to reap gold Most cases they don’t have transport and milling means this leads to smart loans by service providers then all problems begin here .
On top of that all services are available on short term based loan usually supported by black market indirectly which explains why black market cannot disappear overnight.
Since gold is not guaranteed failure to pay these loans forces credit to accumulate to so high levels such that its not surprising to find a mine owner or even worker owing 20 000usd or more ranging from diesel credit, stampmill credit, explosives credit ; rental and electricity credit for domestic purposes or many more .
Inorder to survive you have to acquire debt management skills that are not only superb but partnered with discipline. When you decide to invest in a mine a guy with more debt is the perfect partner depending on your analysis because of few factors. If he/she has more it means his mine has a huge potential just mismanagement who can borrow someone with no means to pay .
Number two you use his/ her debt as insurance through what l call debt purchase ” . This desires caution carefully study and implementation.
You take his debt but still keep it in his name negotiate for payment plan where possible complete erasing of some of them ( that’s possible ) then use his debt to double you investment on him takes years repairing his debt yet already making profits on it . Let’s miner F owes EMA 3000usd for bills and tickets ; 1500usd ministry of mines tickets; 2000usd stamp mill and 4500usd for car loan and family expenses to make 11 000usd yet you want to invest 25 000usd in his mine you just raise 14 000usd buy his 11 000usd debt ask for payment from ministry of mines and EMA then ask to pay half for stampmill debt or complete erasure then negotiate for transfer of registration first things first then you are in the game .Debt purchase is easier route into a full operational mine . Sometimes you buy personal debt only but be cautious. Will cover debt in a separate post .
3 The boss “tsheketsha; korokoza “
We have a saying ” impara ngelikatsheketsha ” . This means every goldminer has a dry spell or good spell . This means no matter how cautious you are the dry spell will hit you very hard . When supporting this guys financial remember this all the time support them based on performance in areas Iike 1 transparency; consistency, accountability more than the sample. Don’t support them when they are doing well by buying cars and houses at that point they don’t need your help they simply want to use you . Treat them as Kings all the time but don’t borrow them money like you are mother Theresa support them don’t spoiler them hunger and suffering is the manager of “the boss ” the rest is cost . Respect them their dirty is the business part personally any clean person in the mining sector Most probably is a scammmer l don’t trust such lots of them proved to me beyond doubt .
NB for debt purchase model inbox or even debt purchase itself.
Compiled by Three Wingers Enterprises
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