Govt focuses on private sector-led mining growth

THE Mines and Mining Development Ministry budget allocation of $3 billion, approximately US$3 million at last auction rate, points to the Government’s desire for a private sector-led mining sector growth.

The sector is estimated to grow 3,4 percent in 2021, before reaching 8 percent in 2022, as the country continues to leverage its mineral resources to achieve the desired growth in line with the US$12 billion mining industry milestone by 2023.

Zimbabwe is targeting a fourfold increase in revenue from minerals by 2023, under the policy document, known as the Strategic Road to the Achievement of $12 billion by 2023, which will see gold exports at $4 billion and platinum at $3 billion.

Through the policy document, the Government is focusing on “value addition, enhanced investment within the sector, increased productivity and employment creation and increased exports and foreign-currency generation.

Private sector is expected to play a big role in the attainment of the envisaged growth while the Government will facilitate the ease of doing business to encourage investments in the area.

Earlier in the year, the country’s largest platinum producer, Zimplats, committed to spend US$1,8 billion on capital expansion projects that are currently at different stages of implementation until the year 2028.

The envisaged investment of US$1,4 billion by Zimplats will see the setting up of integrated projects, including the development of new mines, expansion of the smelter, construction of an additional concentrator, base metal refinery, sulphuric acid plant and the setting up of a 110MW solar power plant.