adminProsper Ndlovu Business Editor
NOT so long ago discussion on beneficiation and value addition by the government was viewed with disdain and disgust by the corporate world, especially the mining sector, who viewed the move as meddling in their operations.
When the government forged ahead to craft a policy framework making value addition and beneficiation of mineral resources mandatory under the auspices of Zim-Asset last year, criticism by pessimists increased.
It was not until recently that noticeable attitude changes were observed in the private sector as it also dawned on them that the continued raw exportation of minerals was not paying the desired dividends and therefore not sustainable in the long term.
Last week’s Sixth Mining and Infrastructure Development Indaba in Harare was remarkable as players in the sector, for the first time, sang from the same hymn book with the government in pushing for the speedy implementation of the value addition thrust.
They (miners) acknowledged that relying on raw mineral exports was no longer profitable given the continued fluctuation of global metal prices, and that beneficiation alone could save them.
“It has been realised that those who value add and beneficiate up to the end are realising more profits. Given the fluctuating metal prices on the global market, beneficiation has become a necessity,” said Professor Godfrey Dzinomwa, the managing director of Paasol Resources.
Mining executives said Zimbabwe could have made huge strides in economic development had beneficiation and value addition been implemented years back.
“I’m now seeing a sense of urgency driven by the government policy on beneficiation. All base metal producers should buy into the initiative and have a joint committee on value addition,” added Ashton Ndlovu, the chief executive officer of Rio Zimbabwe.
“The impact of this will be enhanced capacity. We’re happy Bindura Nickel Corporation is resuscitating its smelter plant and Zimplats is also working on a refinery.
“We want to be part of the story that takes the beneficiation thrust to another stage.”
Ndlovu said mining players in the region were watching beneficiation developments in Zimbabwe with interest, adding that the country has room for expansion.
“This will result in overall revenue increase, development of downstream industries, consultancy services on engineering, more jobs, skills upgrading and exchange of personnel between players,” he said.
Bindura Nickel Corporation managing director Batirai Manhando concurred, saying his company was fully behind the beneficiation policy and was aiming at revamping its smelting and refinery plants.
“Zimbabwe has all the ingredients and only needs to embrace technology. Zimbabweans are running major mining firms the world over and we need to tap into these skills,” he said.
“This is our time to sell value added products into the country. We only need to convert the existing facilities to beef up our operations.”
The players said value addition and beneficiation would satisfy the increasing demand for participation of ordinary Zimbabweans in the mainstream economy in line with the indigenisation and empowerment regulations.
They discussed the need for capital injection, adequate power and water resources harvesting and developing a sound transport infrastructure to ensure success of the initiative.
The new investments in coal and gas also came under the spotlight with participants saying the projects were ripe for supporting the manufacture of by-products such as coke, fertiliser, coal tar and other industrial chemicals that the country could export.
South Africa’s national planning commissioner Elias Masilela, who also attended the meeting, said the African continent holds the keys to the post-2015 global development agenda, which calls for a paradigm shift in how the private sector, mainly mining, conducted its business.
“We plead for a new consciousness that mining is not about engineering or digging holes alone but about people. It’s about communities. This will change the way we think about our businesses,” said Masilela.
“This is a sector that has defined civilisation. Miners have no choice but to think and operate in long-term fashion or else our operations cannot be sustainable.”
He said mining communities were increasingly demanding value from resources being exploited in their areas and that companies who ignore this were at risk.
Examples such as blood diamond and the Marikana scenario in South Africa, said Masilela, were signals of protests by communities on mining firms who ignored investing locally, leaving thousands of workers destitute.
He underscored the need to develop sound mining infrastructure, which he said was a collective responsibility of both the private sector and the government.
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derick.khumalo