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Dosman Mangisi, Mining Correspondent
INTERNATIONALLY acclaimed economists have said Zimbabwe should create an enabling environment, which promotes value addition and beneficiation of minerals as it plays a significant role in turning around the country’s economy.
Speaking at an Industrial Development workshop organised by the Zimbabwe National Chamber of Commerce and the Chamber Trade of Sweden recently, Dr Gift Mugano said Government should formulate an effective regulatory framework for value addition and beneficiation of metal commodities.
Dr Mugano is an Executive Director at Africa Economic Development Strategies and Research Associate, Nelson Mandela Metropolitan University.
“Mining is giving Foreign Direct Investments (FDI), forex including employment and the Government needs to think on value addition and beneficiation which is now a global trend on metal commodities and see how best the mining sector can drive the economy.
“We also need value addition to deal with the global decline of metal commodities prices, which will therefore create vast employment up and down stream . . . we need to create robust and transparent systems to promote value addition, which will therefore guide investors because they will be evidence,” said Dr Mugano.
He said the Government should take a leaf from countries like South Africa, China and Sweden that have managed to turnaround the fortunes of their economies through value addition and beneficiation of their minerals.
“These countries (South Africa, China and Sweden) are benefiting immensely from their natural resources because of resounding policies on value addition and beneficiation. We need a critical analysis to say how we measure value addition.
“For example the matter of chrome ore when we put measures of value addition in 2011, the country lost over $500 million from chrome ore, which went un-exported. So the policy makers must come clear when setting policies of value addition so that it creates a win-win situation,” Dr Mugano said.
Speaking at the same function Swedish economist, Mr Fabian Wallen said industrialisation of minerals such as gold, platinum, chrome, iron, copper, diamond, nickel, tantalite among others minerals was key to reviving Zimbabwe’s economy if consistent measures were put in place.
“Zimbabwe still has challenges on trade policies especially on its mineral resources. It has been identified as a protectionist country making it difficult for other countries to trade with it.
“The country holds much potential on setting up value addition industries of minerals like gold, diamond, asbestos, platinum, chrome, tantalite because these are some of the fast growing industries due to demand,” said Mr Wallen.
He said the phenomenal global growth of the jewellery, motor and Information Communication Technology industries should spur Zimbabwe to embark on value addition and beneficiation so as to produce finished products for these sectors.
“At this point in time the country needs a firm position which spells out how value addition policy works such that countries with high technology can then come to partner in the long run for the good of the nation and its people.
“Swedish through its trade policies has seen its companies like Sandvik, Atlascorp, ABB and Siemens spreading wings across the world offering services in the mining industries and ICT industry,” Mr Wallen said.
According to the information from the Ministry of Mines and Mining Development, Zimbabwe has so far discovered over 60 different minerals, which are ready for exploration by interested investors. Zimbabwe offers a huge opportunity for mining investors, including diamonds, iron, platinum, gold, nickel, coal and many others.
Bongani Ndlovu