ZIM ‘MINING SECTOR GROWTH PROSPECTS BRIGHT’
HARARE – Zimbabwe’s mining industry growth prospects remain strong in the short to medium term, economic analysts have said, despite the negative impact of Covid-19 induced setbacks on existing and planned investments.
While the supply chain disruptions from the Covid-19 pandemic impeded implementation of some mining projects, output surged on the back of the global commodity price boom, with gold production reaching a record level in more than two decades.
Zimbabwe is targeting to grow export revenue from minerals to US$12 billion by 2023 as it seeks to transform the country into an upper-middle-income economy by 2030.
The US$12 billion mining industry represents a 344 percent increase from the US$2.7 billion registered in 2017. The growth to a multi-billion-dollar industry will be driven by gold, platinum, diamond, chrome, iron ore, coal, lithium, and other strategic minerals.
Among the key deliverables, the roadmap entails enhanced exploration, measures to ensure optimum benefits to the citizens, increased exports and foreign currency
generation, enhanced investment and capacity building, increased productivity and employment creation as well as value addition.
Gold exports are expected to reach US$4 billion while platinum exports are seen at US$3 billion. Diamonds are expected to generate US$1 billion while chrome, nickel, and steel will also realise US$1 billion.
The Chamber of Mines said while the pandemic induced disruptions slowed down project implementation particularly during the period immediately after the outbreak of the Covid-19 pandemic, the situation had since changed with the mining sector now operating normally with most companies implementing their planned capital projects smoothly.
“The mining industry has remained largely resilient during the Covid-19 pandemic albeit with some bottlenecks including supply chain disruptions, closure of commodity markets and restrictions in terms of movement of people, including experts working on mining projects,” Chamber of Mines of Zimbabwe chief executive Isaac Kwesu said.
The secretary for Mines and Mining Development Onisimo Moyo said the Second Republic, which has pledged full support to drive investment and growth, remained confident of meeting the US$12 billion target.
There are several mining projects already in the pipeline in Zimbabwe. Zimplats, a unit of Impala Platinum, will invest US$200 million into its base metal refinery (BMR) project, as part of its US$1.8 billion medium to long term investments in Zimbabwe.