Mining to contribute $11 billion by 2023

Blessings Chidakwa in Kadoma

Zimbabwe is set to generate at least $11 billion in export revenue from the mining sector in the next five years, with the new dispensation aiming to achieve a middle income economy by 2030, a Cabinet Minister has said.

In his remarks during the handover and commissioning of equipment at the refurbished Kadoma General Hospital last week, Mines and Mining Development Minister Winston Chitando said this was part of President Mnangagwa’s vision to make Zimbabwe a middle income country by 2030.

President Mnangagwa commissioned the equipment and refurbishment programme funded to the tune of $2,5m by platinum mining giant, Zimplats.

“Last year, the mining industry generated about $2,6 billion in terms of export revenue and in terms of those milestones to support that vision mining will generate over US$11 billion by the year 2023,” he said.

Minister Chitando said all that would be centred mostly on Government initiatives in coal, coal-bed methane, lithium, platinum, nickel, ferrochrome and gold production, among other minerals.

He said this would see the quadrupling of mining revenues over the next five years.

“However, what is important is that as these increased investments come, there are direct and indirect benefits,” he said.

Minister Chitando highlighted some of the possible tangible benefits.

“Direct benefits in terms of the employment creation and the foreign currency creation, those are some of the direct ones to be derived,” he said.

“However, there are also indirect benefits as the mining companies also play their role in the socio-economic development of the areas which they operate in.

“You will notice if one goes through the list of those proposed investments, which would be rolled out, most of them are fairly in centres outside the main town, so that would inevitably come with those mining companies playing a leading role in the development of the socio-economic development of the areas they come from.”

Minister Chitando said Zimplats had set a good example on how the mining companies can benefit the areas they operate from.

He said the growth in the mining sector would also lead to the development of small manufacturing industries linked to the mining companies.

Mining is a major contributor to the fiscus with Government expecting the sector to grow over the years while providing employment for Zimbabweans.