eBusiness Weekly
Golden Sibanda
Zimbabwe is now strategically positioned to realise its vision of growing the mining sector into a US$12 billion industry by 2030, Mines and Mining Development Minister Winston Chitando said, adding that a coterie of new project initiatives were already off the ground.
Minister Chitando told journalists in the capital this week that the Government’s vision of a US$12 billion mining industry, from US$4 billion currently, would be enunciated in a vision roadmap document to be published soon.
He made the remarks following updates by Information and Broadcasting and Media Services Minister Monica Mutsvangwa on a series of mining projects Government had signed agreements on or whose implementation it is facilitating to achieve the desired growth.
Minister Mutsvangwa was giving updates on Tuesday’s 30th Cabinet meeting decision matrix.
Mining is a strategic industry in Zimbabwe as it contributes more than 60 percent of the country’s annual export earnings and employees over 45 000 people directly.
A US$12 billion mining sector will also help build the foundation for Zimbabwe’s 2030 vision, enunciated by President Mnangagwa, of attaining middle income status.
“I just want to say that the US$12 billion we are talking about will not be achieved; (in fact) it is in the process of being achieved and over the last two months there have been a number of projects and programmes, which have been unpacked,” he said.
Minister Chitando said while a comprehensive strategy document detailing all the planned investments and initiatives to support progress towards the vision of a US$12 billion mining industry was being crafted, he had off hand some of the major initiatives.
He said an agreement has been inked to establish a carbon steel plant with the major inputs being ferrochrome, coal and iron ore, which forms the building blocks towards the grand vision.
Another agreement was also signed with Zimbabwe Mining and Smelting Company (Zimasco) for expansion of its ferrochrome processing capacity in Kwekwe and Zvishavane.
“All that, on the chrome side, these constitute part of the major milestones of developing the chrome industry, which we said when we met in Victoria Falls there will be growth from 9 000 tonnes to 2 million tonnes” Minister Chitando said.
Under diamonds, Minister Chitando said a diamond policy had been developed and part of the plans entailed bringing on board private players including China’s Anjin and Russia’s Alrosa.
Following consolidation of the diamond industry in 2016, only State owned Zimbabwe Consolidated Diamond Company (ZCDC) became the sole authorised diamond mining entity.
“So I just want to emphasise that a US$12 billion mining industry is actually being achieved as you will note in the document that is going to be published soon,” the minister said.
Minister Chitando added that the Government was pursuing a number of initiatives to drive investment, growth and expansion for coal and hydro-carbons production.
He said an agreement had been reached with an entity called Victoria Consulting for coal exports to India and Japan.
“This will drive progress towards 2023 vision and targets and grow Zimbabwe’s coal output from 2 million to over 10 million annually.
Minister Mutsvangwa said a company called South Mining Plant is constructing a coke works plant which will churn out 300 000 tonnes per annum and earn the country US$75 million.
“The first section of the battery, which produces 150 000 tonnes is being turned on around 27 August 2019 and will start producing about 50 days later.
“The second phase of 150 000 tonnes is scheduled for commissioning in December,” the minister said.
Minister Mutsvangwa also said that a company called Jinan had set up base in Gweru to produce high-carbon ferrochrome with plant commissioning targeted for next month.
Minister Chitando also reiterated the fact that Government signed a multi-million dollar agreement with Cypriot entity, Karo Resources, which is investing US$4,2 billion to develop platinum mining operations in Mhondoro-Ngezi, Mashonaland West.
Another platinum mining agreement was signed with a company called Bravura for investment in developing a platinum project with evaluation of the resource now underway while heavy investment has reportedly already been done into drilling rigs.
“Last but not least, on gold, there have been policy initiatives especially in terms of artisanal miners and establishment of gold centres.
“So the document, which will be launched soon will sum up all initiatives and clearly demonstrate the achievement of the US$12 billion industry, which will be achieved by 20203,” Minister Chitando said.
