Chronicle Editor
Prosper Ndlovu in Victoria Falls
ZIMBABWE is harnessing the transformative power of its vast mineral resources through increasing investments towards the construction of base metal and precious metal refineries as it scales up domestic beneficiation and value addition to unlock wider economic opportunities for the benefit of ordinary citizens.
Mines and Mining Development Minister, Winston Chitando, said this here yesterday, noting how most of the world’s current processing capacity is available in a few countries, which has the potential to create vulnerabilities and price fluctuations.
It is in this light that the country must develop domestic refining and processing capabilities to enhance economic independence, he said.
The mining sector is a key player in the country’s economy and the world at large, contributing close to 70 percent of foreign currency earnings and employing thousands of people directly and indirectly through downstream impact.
In his address yesterday at the Critical Minerals Symposium, a key highlight of the ongoing 2024 Annual Chamber of Mines of Zimbabwe Conference, Minister Chitando said revitalizing mining sector value chains must anchor the modernisation of the economy, especially given the changing technological and global market supply trends.
An understanding of the strategic importance and value chains of these critical minerals is, thus, necessary to fully utilise their potential and promote sustainable growth for the country, he added.
By definition, critical minerals are mineral commodities that have significant economic importance for key sectors in the economy, whose uses are essential, have a high supply risk and have no viable substitutes.
“As we embark on an era of unprecedented technological advancements, critical minerals have become the cornerstone of modern society,” he said.
“The Ministry of Mines and Mining Development is in this regard, working on strategies to ensure that local beneficiation and value addition becomes a reality for each mineral including the critical minerals.
“This will be done on a case-by-case basis with some of the value chains to be developed and enhanced.”
Guided by the National Development Strategy (NDS1), the Government has already outlined deliberate plans, policies, programmes, and projects to be carried out to achieve socio-economic transformation and development, as well as accelerated, high, inclusive, broad-based, and sustainable economic growth.
Following the discovery of lithium deposits, Zimbabwe continues to attract huge investments in the sector with the Government pushing the investors towards domestic value addition as opposed to exporting raw ore.
Value addition and beneficiation entail the processing of lithium ores into concentrates, sulphates, carbonates, hydroxides, cathode precursors and finally lithium batteries.
“A notable number of lithium producers have submitted their value addition plans to this effect as a response to the 2024 National Budget Statement,” said Chitando.
He said the construction of Base Metal Refineries for minerals such as nickel, copper, iron, and cobalt, as well as the construction of Precious Metals Refineries for Platinum Group Metals, among others, were part of the game plan to increase Zimbabwe’s value earnings from mineral resources
“Realisation of these and more value addition projects along the critical minerals value chain will present benefits to the people of Zimbabwe,” said the minister.
“Notable benefits include employment creation both directly and indirectly, increased revenue inflow from taxes and export of value-added materials, less dependence on import of finished products, as these will be made locally, and ultimately realisation of Vision 2030 of becoming an upper middle-income economy.”
Chitando, however, said numerous challenges must be overcome to fully develop and enhance the critical minerals value chain.
“One of the notable challenges is the leakage of minerals, which short changes their supply along the value chain,” he said.
“To this effect, the Government is working with stakeholders . . . in coming up with strategies to curb mineral leakages. Curbing mineral leakages is key to protecting the critical minerals value chain and ensuring a sustainable supply chain.”
Minister Chitando further challenged mining sector players to embrace ethical and environmentally responsible mining and processing practices throughout the value chain.
This comes as the Government last year introduced the Responsible Mining Initiative in 2023 to make environmental issues a top priority and step up efforts to safeguard the country’s natural resources and ecosystems for both present and future generations.
“We need to take a comprehensive and co-operative approach to overcome these challenges and take advantage of the potential that critical minerals bring,” said Chitando.
“Prioritising research and development is necessary in order to find new sources of critical minerals and create cutting-edge techniques for their extraction and processing.”
In his remarks, Chamber of Mines president, Mr Thomas Gono, said the mineral wealth in the country is central in supporting economic, social and defence sectors. He welcomed local and foreign delegates and hoped this year’s conference would deliver critical recommendations to take the sector forward while paying tribute to the Government for supportive policy thrust on mineral beneficiation and value addition.
“As the Chamber of Mines we are, as enshrined in our Constitution, keen to promote, encourage and foster the growth and development of the country’s critical minerals sector,” he said.
Running under the theme: “Unlocking growth potential for the Zimbabwe mining industry,” the conference will be officially opened today and ends on Friday.
Online Reporter