adminDosman Mangisi Mining Correspondent
COAL, gold and chrome are expected to dominate mineral output next year spurred by ongoing recapitalisation and favourable policy reforms. The projections are contained in a report for the three subsectors compiled by the Zimbabwe Chamber of Mines and the Minerals Marketing Corporation of Zimbabwe (MMCZ).
The report says the three commodities would withstand the depression in prices on the global market.
It acknowledges the recent commissioning of $32 million worth of new equipment at Hwange Colliery Company Limited as a major investment that will result in increased output with higher export levels.
Coal production for the first quarter of 2015 stood at 2.1 million tonnes compared to 3.2 million tonnes during the same period last year but the figure is expected to increase gradually.
Hwange Colliery has also been granted more coal concessions, which could result in an increase in coal production.
Following the lifting of a ban on raw chrome exports in June this year, the report says output is expected to surge.
It also notes government policy reforms on mining operations are also expected to improve viability of producers and enhance value chain growth.
Small scale chrome miners, however, are yet to benefit from the lifting of the ban as they cannot sell their produce at competitive prices in the absence of a statutory instrument reversing the contractual agreements they have with local smelting firms.
Close to 80 percent of small scale miners operate as tributaries to smelting firms with only 10 mining as independents.
The MMCZ has predicted a slight increase in production albeit with a decrease in value. Assumptions are that more coal and coke exports will be witnessed as well as ferrochrome and chrome ore exports.
The Chamber of Mines on the other hand reported that gold output rose 30.4 percent in first six months to June 2015 at 8,869kgs compared to 6,801kg for the same period in 2014. Output for small scale producers increased by 153 percent at 1,232kg during first half of 2014 to 3,117kg in 2015 while that of primary producers increased by eight percent.
Zimbabwe has become a success story of improved output that has also been buttressed by increased deliveries after the government introduced gold mobilisation teams and reviewed royalties through Fidelity Printers, the country’s sole buyer.
The long-awaited mechanisation of small producers through the $100 million Chinese funding facility is also expected to increase earnings.
MMCZ in addition said the revival of major gold mines, Elvington Gold mine in Chegutu and Sabi Gold mine in Zvishavane, was significant progress.
Online Reporter