Chronicle Editor
Africa Moyo in Bali, Indonesia
VICE-PRESIDENT Kembo Mohadi has invited investors from Indonesia and other countries to invest in mining opportunities available in Zimbabwe, but ensuring value addition and beneficiation are done locally for maximum financial benefit.
Speaking at a highly subscribed Leaders’ Talk side event at the Second Indonesia-Africa Forum and the High-Level Forum on Multi-Stakeholder Partnerships that ended yesterday, VP Mohadi said investors should take advantage of President Mnangagwa’s “Zimbabwe is open for business” mantra and the remodelling of a number of investment laws, to join the lucrative mining sector.
“Most of the minerals from Africa have been exported in their raw or semi-processed form resulting in loss of revenue and the transfer of debt opportunities,” he said.
“The Africa Mining Vision (AVM), a brainchild of the African Union Commission (AUC)’s, continental industry initiatives, encourages African countries to prioritise local mineral beneficiation and value addition.
“As a huge mining country, the Indonesian experience in beneficiation and value addition, is both inspiring and educative.”
VP Mohadi remains confident that the amendment of mining laws “will go a long way towards realising the goal of sustainable mining for the benefit of the Zimbabwean citizens and investors alike”.
“This is an area of cooperation in which Zimbabwe can engage and cooperate with Indonesia, for mutual benefit,” he said.
“A draft memorandum of understanding (MoU) in this area has already been exchanged between our two governments.”
Indonesia President Joko Widodo announced on Monday that his country is exploring for lithium in Zimbabwe and has directed his Minister of Energy and Mineral Resources to ensure there was an MoU on mining cooperation between Jakarta and Harare.
Key minerals driving the beneficiation and value-addition drive under the National Development Strategy (NDS1) include gold, the Platinum Group Metals (PGMs), diamonds, coal, gemstones, chrome and lithium.
About seven big lithium mines are already operating in the country.
Zimbabwe is also capacitating small-scale gold miners through provision of equipment for mineral processing and setting up centralised Gold Service Centres.
Presently, small-scale miners account for about 60 percent of gold production in Zimbabwe.
The setting up of gold-to-jewellery factories will also increase the value addition units and consequently national revenue.
Government is also considering many financing models including public-private-partnerships (PPPs), Joint Ventures, Build Operate and Transfer (BOT) and private sector cooperation, to promote investment.
Zimbabwe has the second largest known deposits of lithium in the world, giving it a unique opportunity to contribute to the greening of the world economy for the good of the people and the planet.
VP Mohadi said he strongly believes the sustainable extraction and beneficiation of locally available mineral resources will create an impactful transformation that will alleviate poverty and strengthen entrepreneurship and economic development.
Land rehabilitation after a mining venture is essential for restoring ecosystems and ensuring that land can be used for other purposes after mining operations cease.
Government has since initiated responsible mining audits to ensure compliance with the law.
Riverbed mining has also been banned to curtail land degradation and to promote ecological wellbeing.
Zimbabwe welcomes investments in land reclamation projects and restoration of its biodiversity.
VP Mohadi said reaffirmation, engagement and re-engagement with the international community remain critical components of Zimbabwe’s foreign policy thrust, with the ultimate objective being to “fully re-integrate the country in the comity of nations for win-win outcomes in a peaceful and stable international environment”.
Government is determined to continuously improve the ease of doing business to attract more investors and the Zimbabwe Investment and Development Agency (ZIDA), a one-stop-shop with a mandate to facilitate and streamline investment processes for investors, has been set up.
On Monday, Zimbabwe Mining Development Corporation (ZMDC) general manager Engineer Blessed Chitambira informed delegates at a session on mining cooperation that global demand for critical raw materials driven by industrialisation and economic growth, presents a “major opportunity for the mining industry in Zimbabwe”.
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