Govt moots incentives for minerals value addition

resources.
Chrome became the first mineral to be placed under compulsory beneficiation when raw exports were banned last year.
In a speech read on his behalf at a breakfast meeting for the mining sector, Mines and Mining Development Minister Dr Obert Mpofu said the Government was considering strategies to promote value addition.
“Taking cognisance that beneficiation plays a critical role towards the sustainable development of the mining sectorand the economy in general. My ministry plans to come up with incentive schemes to encourage investment in mineral beneficiation and value addition,” he said.
Dr Mpofu said possible areas for value addition included diamond cutting and polishing, platinum refining, lithium processing as well as processing of dimension stones such as  granite.
Exports of minerals grew by 138,1 percent in 2010, generating US$1,6 billion while in 2011 exports generated US$2,6 billion from a 138,7 percent growth, largely spurred by the adoption of the multi-currency regime.
Mineral exports are further forecast to grow by 13,3 percent in 2012.
Leading minerals on the growth trajectory have been platinum (41,1 percent), gold (38 percent), chrome (13,3 percent), coal (7,7 percent) and diamonds (3,4 percent).
Dr Mpofu said diamonds were anticipated to play a very significant role as additional production was expected from ongoing exploration projects, particularly in the Marange area.
He said expansion of projects by Zimplats and the start of production by Unki Mine in 2011 also contributed to the rise in export earnings.
Dr Mpofu said Zimbabwe continued to face serious liquidity challenges at a time when vast financial resources were banked offshore.
“The Ministry of Finance should find ways of persuading all banks to comply with the directive               to bring 75 percent of their funds onshore,” he said.
He said channelling the funds to the productive sectors of the economy would boost liquidity and mend the local operating environment, necessary for medium- and long-term productivity.
Mining is one of the sectors expected to spur the 9,4 percent economic growth target for 2012. —  New Ziana.