Diaspora Kapita eyes 2024 VFEX debut

plant, transportation, furnace and sintering plant upgrades to increase production capacity by more than 20 percent by the end of 2024.

The investments by Zimasco and Jinyi are part of a wider trend of increasing investment in beneficiation facilities. Bikita Minerals has invested over US$300 million in exploration work and expansion of its operations over the past two years.

The mine has constructed and commissioned a dual lithium processing plant, the flotation separation plant and a new smelter plant. Production is expected to go up to 300 000 tonnes of spodumene concentrate and 480 000 tonnes of petalite.

Acadia Lithium Mine has spent in excess of US$300 million in capital expenditure programmes over the past three years. It commissioned its plant and commenced production in the first quarter of 2023.

At full capacity, it will be producing 400 000 tonnes per annum of lithium concentrate.

Sabi Star Mine commissioned its concentrator in August 2023. The concentrator has an ore processing capacity of one million tonnes per annum, with a lithium concentrate output of 300 000 tonnes per annum.

Zulu Lithium Mine started production in the first quarter of 2023 and has since commissioned a 50 000-tonne-per-year pilot plant valued at about US$35 million.

According to some analysts, these investments are a positive sign of the future of Zimbabwe’s mining sector.

Since the ban of raw lithium exports, shipments of the beneficiated battery mineral rose to 882 tonnes in 10 months to October this year, according to statistics from the Treasury.

In 2021, Dinson Colliery Company commissioned a US$30 million coke oven battery in and we are coming down from the terraces to engage with the Government and other private partners to claim our economic heritage in the land that holds our umbilical cord,” he said.

Formed in 2014, Diaspora Kapita is an investment company engaged in contract mining, financial services, fintech and agriculture.

With over 200 employees in South Africa and Zimbabwe, the company’s notable investments include 21st Century Life, AgroStrong (offers cattle-backed financial services), Northlands Resources (involved in contract mining in Zimbabwe) and Tsigiro Usekelo (offers global financial services).

The company also sees potential in the property sector, particularly in providing diaspora mortgages, and recognises significant opportunities in the health sector.

“Collaborations are important, as we envision a listed vehicle that fosters a sense of ownership among the diaspora and local individuals,” said chief executive officer Mr Vhusi Phiri.

Hwange, boasting a processing capacity of 400 tonnes per day. This significant investment marked a major milestone in the company’s operations and enhanced its ability to produce high-quality coke, a critical input for the steel industry.

The Zimbabwe Zhongxin Smelting ferrochrome plant in Masvingo is ready for commissioning.

Construction of the main plant is complete and work on a power substation is at 90 percent level.

According to Chamber of Mines Zimbabwe, platinum producers have indicated that Zimplats agreed to process other producers’ platinum group metals once the company finalises construction of additional smelters and refurbishment of its base metal refinery.

The producers have since signed commitment letters with Zimplats to regularise the arrangement. This position was also agreed with Government. Several lithium producers have entered into memoranda of understanding with Government to participate in the development of the mines to energy park, a transformative project aimed at maximising the value of the country’s mineral resources.

The project encompasses construction of two 300-megawatt power stations, a coking plant with an annual capacity of 1,2 million tonnes of coke, a 130 000-tonne-per-annum lithium salt plant, a graphite processing plant, a nickel-chromium alloy smelter and a nickel sulfate plant.

These ongoing beneficiation projects are indicative of the growing recognition of Zimbabwe’s vast mineral potential. By adding value to its mineral resources through local processing, Zimbabwe is set to reap greater economic benefits from its mining sector.

The projects are creating huge opportunities, contributing to socio-economic development

The company seeks to tap into the diaspora mortgage opportunity, estimating a market of more than US$4 billion and targeting at least 100 000 households to access the property market. Collaboration with Government on policy formulation and incentives for Zimbabweans to invest back home would give impetus to this dream, according to Diaspora Kapita.

Mr Phiri called on the diaspora community to work within the confines of the environment, advocating participation in the developmental process.

“A balanced approach — acknowledging the benefits of foreign direct investment, while advocating a sustainable balance that doesn’t compromise local ownership — is key.

“Many in my generation have been outside Zimbabwe for over 15 years, and now have an appetite for active involvement in shaping the nation’s future,” concluded Mr Phiri.

Diaspora Kapita regards itself as a remarkable exemplar of how collaboration between locals and the diaspora can be effectively harnessed. across the country. Government’s supportive policies for the mining sector, coupled with the country’s rich mineral resource base, are creating a favourable environment for further investment in beneficiation projects.

As these projects progress, Zimbabwe is expected to emerge as a major producer of value-added mineral products, enhancing its position in the global mining industry.

“We welcome all the efforts meant to beneficiate the minerals but I think we are not yet at the point of celebrating,” economic analyst Dr Langton Mabhanga said in an interview.

“We need to implement a national natural resource beneficiation strategy that will compel actors in the exploitative industry to beneficiate. By doing so, we will be able to deliver a modern society, a modern industry and social infrastructure that align to Government’s aspiration of achieving an upper middle-income economy by 2030.”

Mr Carlos Tadya, a Harare-based economic analyst, said the investments in the mining industry were a positive sign for the future.

“These investments are expected to boost production, create better quality jobs and contribute to the economic development of the country,” said Mr Tadya.

The discovery of new mineral deposits, particularly lithium, has opened up new opportunities for the mining sector, he added.

From 2018 to 2023, the sector’s contribution to gross domestic product has steadily increased from 11,5 percent to 13,2 percent, reflecting its growing significance as an economic driver.

This positive trajectory is further underscored by the sector’s continuous growth since 2020, defying the challenges posed by the global pandemic and economic uncertainties.

It says its primary aim is to generate value for both groups, while fostering Africa’s development by creating employment opportunities and actively contributing to the resolution of the continent’s challenges.

“Notably, the African diaspora remits an impressive sum of over US$48 billion to their countries of origin and annually saves about US$53 billion in their host nations. Unlocking the potential of this remittance flow presents a transformative opportunity for Africa as a whole,” the group says.

The group says members of the Zimbabwean diaspora contribute significantly, remitting more than US$1,5 billion each year, and their cumulative remittances to Zimbabwe have surpassed US$20 billion over the past 15 years.

Further, the group plays a pivotal role in establishing a robust platform that enables Zimbabweans in the diaspora and those residing in the country to collaborate on co-investments and project execution, all geared towards the betterment and prosperity of Zimbabweans at large.