adminpresident Mr Winston Chitando said this means there are vast opportunities for new mining ventures.
He was speaking at a recent mining stakeholders’ forum.
“Despite having over 40 recorded minerals occurrences, Zimbabwe is under-explored. The limited exploration done to date has not been using modern technology.
“There is therefore huge potential of new ventures arising from exploration activities,” he said.
The Government has, however, indicated plans to establish, through exploration, a registry of minerals.
Mr Chitando, however, hastened to add that the more pressing concern was the under-utilisation of installed capacities at most of the country’s mines.
“Apart from a few gold mines, platinum, and diamonds in some cases almost all other mining companies are operating below capacity. The last few years have witnessed a decline in production of most minerals.
“The challenge of most of the producers is therefore to ramp up production to operate at full capacity,” he said.
In the gold sector, for example, capacity utilisation based on current production is 44,4 percent, with a number of mines having reached full capacity, namely Blanket Mine, Freda Rebecca and Casmyn Mining.
Ramping up production for the other underperforming miners should remain a complicated matter, in view of limited local funding opportunities.
Official figures show that between January and September this year mining companies received loans (predominantly short term) amounting to US$157 million out of US$2,6 billion total banking sector loans.
Additionally, perceived high country risk rating emerging out of the hyperinflationary period has made it difficult for local mining companies to access long-term loans on international markets.
There have, however, been positive developments in this regard.
Figures in the proposed 2012 National Budget reveal that this year approved lines of credit for the mining sector amounted to US$502 million.
The Chamber of Mines estimates that the mining industry requires between US$5 and US$7 billion over the next five years. The split across key minerals is as follows: Platinum requiring US$2,8 billion, gold (US$2,3 billion), diamonds (US$770 million for two diamond producers), coal (US$560 million), nickel and chrome US$280 million respectively.
Online Reporter