Mining key to growth

Business Reporter
THE mining sector is poised to anchor Zimbabwe’s economic growth over the next few years as the industry holds huge potential for economic development, President Mugabe has said.President Mugabe made the remarks in his acceptance speech after his inauguration at the National Sports Stadium in Harare last week saying the sector would be the “centrepiece” of Zimbabwe’s economic recovery and growth.

His inauguration followed his resounding victory and that of Zanu-PF in the July 2013 harmonised elections.
“It should generate growth spurts across sectors, reignite that economic miracle which must now happen,” the President said.

“The sector has shown enormous potential, but we are far from seeing its optimum. We have barely scratched our worth, even in the sense of merely bringing above ground what we already know to be embedded in our rich soils. We need to intensify the exploitation of existing deposits.”

The Head of State and Government said more mineral deposits remained unknown and unexplored.
“We need to explore new deposits, developing new Greenfield projects in the mining sector.

“Above all, we need to move purposefully towards beneficiation of our raw minerals. The scope is great and I call upon you all to summon your full will, to give your utmost,” he said.

The President reckoned that this was what would “empower us, develop us, indeed create employment for our people.”
“As we go about re-organising this critical sector, our policy reflexes must be oriented towards the goals of indigenisation and economic empowerment of our people.”

The President also said mining was the centrepiece of Zanu-PF’s election manifesto and what the people voted for, “the centrepiece of our development endeavours”.

“We dare not let our people down. We are aware that people of ill-will have cast aspersions on our hallowed policy of indigenisation and economic empowerment. It is a set policy, our chosen path to full sovereignty,” he said. President Mugabe added that minerals were a depletable resource that cannot be grown once they have been exploited.

Consequently, he said Zimbabweans cannot be bystanders in their exploitation and needed controlling share in all ventures that exploit non-renewable natural resources.

“Where we can, we can go it alone. Where we cannot do so, we seek partners on a 51/49 percent shareholding principle. Genuine partners should find this acceptable. We reject totally as skewed the economic principle which puts capital, technology or expertise before natural resources.

“It is a principle of imperialism, the source of un- equal agreements which have been the bane of our ever exploited Africa. That is our reckoning here and we stand by it.”

He said unequal agreements are unacceptable as they reek of colonial and neo-colonial relations. But where an investor brings in his or her capital, technology, expertise and raw materials, Zimbabwe will not insist on the principle.