Chronicle Editor
Prosper Ndlovu in Victoria Falls
GOVERNMENT’S decentralisation policy has rejuvenated investments into the mining industry with positive impact on community livelihoods across provinces as the country builds momentum towards meeting the ambitious US$12 billion milestone for the sector by 2023.
In line with President Mnangagwa’s vision to transform Zimbabwe into an upper middle-income economy by 2030, Mines and Mining Development Minister, Winston Chitando, yesterday said the extractive sector was among the top growth drivers as enshrined in the National Development Strategy1 (NDS1) (2021-2025).
The main minerals expected to lead growth of the mining sector include gold, platinum group metals (PGMs), chrome and ferrochrome, nickel, diamonds, lithium, coal and hydrocarbons, he added.
Speaking on the sidelines of a Gold Sector Symposium here, which is a key highlight of the ongoing 2022 Annual Chamber of Mines of Zimbabwe Conference, Minister Chitando outlined a number of new investment projects covering different minerals as well as the revival of defunct mines which he said was a confirmation that the mining sector is on a rebound.
The new investments include several coal mines and coke processing plants in Hwange district in Matabeleland North province, renewed gold investments by big corporates in Matabeleland South and the Midlands provinces, greenfield projects covering platinum expansion, lithium and nickel as well as ramping up diamonds and chrome production and revitalisation of iron ore mining among others.
The multi-billion dollar projects are not just creating employment for hundreds of skilled and non-skilled Zimbabweans but are contributing to increased export earnings, which clocked US$6,3 billion last year, said Minister Chitando.
“One of the very significant factors in terms of the growth of the mining sector has to do with decentralisation of mining activities. In the past mining was confined to towns like Hwange, Mhangura, Zvishavane, Shurugwi and a few other towns but this has changed,” said Minister Chitando.
He said mining was taking place across the country hence the growth the sector is enjoying.
“Look at what is happening at Dinson Colliery in Hwange, a lot of local people are being employed. We have Eureka Gold Mining in Guruve, Bikita Minerals project and new lithium mining coming up in Buhera by December and expected to employ 1 000 workers,” said Minister Chitando.
He said Government is pleased with the decentralisation of mining operations across the country benefiting the different provinces as the locals are being employed.
The decentralisation policy dovetails with the devolution focus where provinces and districts are expected to leverage on their local resources to drive their own development.
Earlier on Minister Chitando said the gold sector holds the bulk of the value in terms of the US$12 billion target as it is expected to earn US$4 billion representing one third of the total value.
Platinum group metals (PGMs) follow behind at US$3 billion, chrome, iron and steel US$1 billion, diamonds US$1 billion, coal US$1 billion, lithium US$500 million and other minerals US$1,5 billion.
“Government expects a significant contribution from the gold sub-sector towards the attainment of the US$12 billion mining industry by 2023 as espoused in President Mnangagwa’s mining industry roadmap launched in October 2019,” Minister Chitando told delegates who included local and regional mining executives.
He said the gold sector is already on a positive growth trajectory as deliveries to Fidelity Gold Refiners (FGR) for the period January to March 2022 increased to 7,694 tonnes compared to 3,977 tonnes delivered during the same period in 2021 representing a 93,4 percent increase.
“This is a very positive development in the gold sector and gives us confidence that if we maintain the same deliveries to FGR, then our targets are well in sight. The total revenue realised from gold deliveries during the period January to March 2022 is US$232 million,” he said.
Minister Chitando said given the country’s rich gold deposits, there was a need to enforce compliance and curb leakages, which will ensure that Zimbabwe’s annual gold production reaches 100 tonnes by 2023 from the present average of 30 tonnes.
He urged the mining sector to take heed of President Mnangagwa’s drive for hard work so that the country can realise its Vision 2030.
“The ministry is confident that the US$12 billion mining industry by 2023 can be achieved. We therefore, implore all stakeholders to work together to ensure sustainable growth of the mining sector,” he said.
Different speakers also stressed the need for Zimbabwe and the region to capitalise on the mining sector opportunities to boost their economies. Tanzanian Chamber of Mines chief executive officer, Mr Benjamin Mchwampaka said his country was investing more in unlocking the small-scale mining potential.
Representatives from the financial services sector including the Victoria Falls Stock Exchange spoke about the various funding packages and advised miners on how to access the funding.
The President Cde Mnangagwa is expected to officially open the conference today.
Online Reporter