45 000 new jobs have been created in mining
THE mining sector has achieved significant milestones over the past five years under the Second Republic. Investments into various sub-sectors such as lithium, coal and platinum has been growing, while exports are soaring. The new Mines and Mining Development MINISTER ZHEMU SODA (ZS), who was previously the Minister of Energy and Power Development, last week sat down with our Reporter DEBRA MATABVU to discuss some of the key issues in mining.
********************* DM: Congratulations on your recent appointment. May you please give us your brief profile.
ZS: I was born on June 4, 1974 in Muzarabani and did my primary and secondary education there. My first job was at the Cotton Marketing Board in 1995, which, after privatisation, was named Cotton Company of Zimbabwe (Cottco).
I started off as a data capture clerk and rose through the ranks to become depot manager in Gokwe North. I left the company in 2004 to join Alliance Ginneries, which had operations across the country. I left the company in 2017.
In addition to my stint in the cotton industry, I have remained connected with the people and have always been a member of ZANU PF structures in Muzarabani, Mashonaland Central. In 2018, I decided to advance my political career and won the Muzarabani North constituency, and was later appointed Minister of Energy and Power Development in 2020.
I have always been involved in administrative issues. So, when I became Minister of Energy and Power Development, it was just a matter of applying what I had learnt over the years. We registered some achievements as the energy sector, such as construction and eventual commissioning of the Hwange Expansion Project, to alleviate our power shortages.
After retaining my seat in my constituency this year, I was appointed
Minister of Mines and Mining Development.
So, I am mainly inspired by the confidence that His Excellency President Mnangagwa has shown in me. First, being appointed Minister of Energy (and Power Development) at a time when we had challenges in the sector such as fuel. We now have adequate supplies, which came because of the vision of His Excellency.
In terms of my academic background, my first degree was a Bachelor of Commerce, majoring in Accountancy. I am also a holder of a Master’s degree in Business Administration.
DM: As the Minister of Mines and Mining Development, please unpack your vision?
ZS: A US$40 billion mining industry by 2030 milestone is targeted as one of the pillars towards the achievement of an upper middle-income economy in seven years. The target is underpinned by programmes that include increased exploration, resuscitation of closed mines, opening of new mines, expansion of existing mining projects, mineral beneficiation and value addition.
DM: Recently, President Mnangagwa said the mining sector had reached the US$12 billion milestone. Can you give us a breakdown of how this target was attained?
ZS: A cumulative US$20,5 billion was realised in mineral exports since 2018. Key minerals that led to the attainment of the target include gold, platinum group of metals (PGMs), high carbon ferrochrome, diamonds, lithium, coal and coke.
DM: How confident are you of attaining the US$40 billion target? ZS:
Going forward, and in line with Vision 2030, economic development will be largely underpinned by activities in the Ministry of Mines and Mining Development such as exploration, opening of new mines, resuscitation of old mines and enhancing the mines that are currently operating. As I stated earlier, our vision for 2030 is to have a US$40 billion mining industry.
We have been able to achieve our first target (of US$12 billion), which has been a milestone in the attainment of Vision 2030. During the National Development Strategy 1 (NDS1), we set the first milestone and we have achieved it.
We can also tell by the influx of investors that want to invest in the mining sector. That in itself gave us confidence to set the US$40 billion target.
DM: In general, how has the whole mining sector performed? How much has it contributed to the country’s GDP (Gross Domestic Product)?
ZS: The mining sector is a key player in the country’s economic development. The sector contributes more than 60 percent of Zimbabwe’s export receipts, attracts more than 50 percent of foreign direct investment, contributes about 13 percent to GDP and generates significant employment. DM: How many jobs have been created in the mining sector over the past five years?
ZS: A cumulative 45 000 jobs have been created since the inception of the Second Republic. Zimbabwe’s mining sector plays an important role in the socio-economic development of the country, particularly through employment creation.
The mining sector employs a total of 106 151 direct employees, as at the end of 2022. There has been a significant increase in the number of people employed in the sector from a baseline of 77 799 at the conception of the National Development Strategy 1.
DM: The country has seen an increase in mining investments over the past five years. Which are the main countries that have invested in Zimbabwe’s mining sector?
ZS: Zimbabwe is open for business and welcomes investment from any country around the globe. Most of the investment has come from China, South Africa and European countries.
DM: Recently, President Mnangagwa said mining companies extracting precious and high-value minerals will now be required to cede refined mineral products as part payment of royalties to the Government under a new initiative to build the country’s mineral resources. May you briefly explain the importance of such an initiative?
ZS: The new mining royalty rule will involve payment of royalties for minerals being split as 50 percent cash and the other 50 percent in the form of the commodity itself. The new policy targets four key minerals, namely, gold, diamond, PGMs and lithium.
The policy will enable Zimbabwe to build reserves of the minerals while still providing some cash for day-to-day opera- tions.
The new mining royalty rule will involve payment of royalties for minerals being split as 50 percent cash and the other 50 percent in the form of the commodity itself. The new policy targets four key minerals, namely, gold, diamond, PGMs and lithium. The policy will enable Zimbabwe to build reserves of the minerals while still providing some cash for day-to-day operations.