Giant steps towards US$12 billion mining output
ZIMBABWE will this year experience a significant spread in the range of minerals it produces and exports, plus a rise in production from existing mineral contributions as the mining sector paces up towards the attainment of the US$12 billion target worth of production as set by President Mnangagwa.
Mines and Mining Development Minister Winston Chitando has noted that at least 13 new mines and expansion of existing mines are set to be commissioned this year in what could go down as the most eventful year in terms of the rolling out of new mining development, with output adjusted for inflation rising almost five-fold during the first five-years of the Second Republic.
The coming into production of this new mining development is sure to give impetus to the attainment of an empowered upper-middle income economy by 2030 as envisioned by the President and for which the mining sector is poised to play a huge enabling sectoral role.
Mines globally are notorious for having long incubation periods from their conception, through the exploration, mine development and into final sustainable production and the early coming into production of these projects signifies the high speed with which the Second Republic is pushing production and economic development.
Lithium, which is currently enjoying a global boom owing to the rapid demand for batteries for existing electronic and ICT equipment and now the green energy demand that has seized the world, think of the switch to electric vehicles, and for which Zimbabwe has immediately drawn up a lithium development plan.
Among those that are in the final stages of setting up their beneficiation plants ahead of entering the export market is Sabi Star Mine which coincidentally had a ground breaking ceremony presided over by President Mnangagwa last year.
Also expected to switch on beneficiation plants and start exporting this year is Arcadia, Bikita Minerals, the Zulu lithium project and Kamaviti (formerly Kamativi Tin Mine).
“There are a number of projects which are coming into commissioning this year, which include some where there was ground breaking but also some where there was no formal ground breaking,” said Minister Chitando.
“From lithium, we do have Sabi Star that was commissioned by His Excellency last year and is coming into production around August. Then we have Arcadia, they are actually shipping their first concentrate this month, that one is done.
“Thirdly, we have Bikita Minerals who are on an expansion and that should be on stream and complete around August this year. We also have Zulu lithium project which is a pilot project targeting 40 000 tonnes concentrate per annum, but the first phase of that project will be ready for production by end of May this year.
“There is also the re-opening of Kamaviti Mine, what we normally call the Kamativi Tin Mine. As we speak, open cast production has started and we expect that plant production starts around July this year.”
Bikita has been mining small quantities of lithium minerals for decades, largely for the glass industry, but has seen huge new investment and a manifold increase in production as batteries become the major user.
Away from lithium, Minister Chitando said there are also going to be production launches at the multi-million-dollar Dinson Iron and Steel Company in Mvuma, new projects in coal and hydrocarbon by Dinson Colliery, South Mining and “an indigenous player”.
Dinson Colliery and South Mining are actually in the final stages of setting up coke battery plants which all will come into production this year to feed steel works and speaks volumes about private capital heeding the Second Republic’s call to invest in local mineral beneficiation. Coal demand will also rise as Zesa commissions its two new 300MW units and starts fixing up the old units at Hwange Thermal.
This local beneficiation, is expected to shore up export earnings as well as creating more jobs down the value chain.
In the diamond subsector both the Zimbabwe Consolidated Diamond Company are on expansion drives that are primed to bear fruit this year.
“We have significant expansion at ZCDC last year they did about 4 million carats, this year they are targeting 6 million carats,” said Minister Chitando.
“Then we have another commissioning at Murowa Diamonds where there is the official commissioning of a US$250 million expansion project.”
The expected diamond production this year will put Zimbabwe into a very exclusive “one tonne” club, countries that can produce more than 5 million carats a year. A carat is exactly one fifth of a gramme, so 5 million carats is one tonne.
In gold, he said, there will be several small to medium ventures coming into production, but the major highlight will be the coming into stream of Dallaglio Investments’ Pickstone Peerless Mine’s expansion.
In platinum, Minister Chitando said Zimplats, which announced a US$1,7 billion expansion, has now finished the construction of a new concentrator to increase production capacity.