AMN - Making a difference in ZImbabwe – comment by Yolanda Torrisi

Zimbabwe continues to take positive steps towards revitalising its mining industry with a Cabinet Minister predicting that the sector will generate at least $11 billion in export revenue in the next five years. Winston Chitando, who is Mines and Mining Development Minister, said the aim was to achieve a middle-income economy by 2030.

Speaking during the handover and commissioning of equipment at a refurbished hospital, Minister Chitando said this was part of President Emmerson Mnangagwa’s vision to make Zimbabwe a middle-income country by 2030. “Last year, the mining industry generated about $2.6 billion in terms of export revenue and in terms of those milestones to support that vision, mining will generate over US$11 billion by 2023.”

The Minister stated that growth would be centred mostly on government initiatives in coal, coal-bed methane, lithium, platinum, nickel, ferrochrome and gold production, among other minerals.

He said this would see mining revenues quadruple over the next five years. “However, what is important is that as these increased investments come, there are direct and indirect benefits,” he said.

In highlighting some of the possible benefits, Minister Chitando said: “Direct benefits in terms of the employment creation and the foreign currency creation, those are some of the direct ones to be derived.

“However, there are also indirect benefits as the mining companies also play their role in the socio-economic development of the areas which they operate in."

He cited the refurbishment of Kadoma General Hospital as an example. This was funded to the tune of $2.5 million by platinum miner Zimplats.

“You will notice if one goes through the list of those proposed investments, which would be rolled out, most of them are fairly in centres outside the main town, so that would inevitably come with those mining companies playing a leading role in the development of the socio-economic development of the areas they come from.”

He said Zimplats had set a good example on how the mining companies could benefit the areas they operated from.

He said the growth in the mining sector would also lead to the development of small manufacturing industries linked to the mining companies.

His thoughts were mirrored by President Mnangagwa in launching a chrome initiative when he said the flagship investment showed that the country was open to foreign business.

The President switched on the Aluminothermic Plant, owned by African Chrome Fields (ACF) in Chinyika, Kwekwe, marking the dawn of a new era in chrome mining in the country. ACF is in a partnership with Sakunda Holdings.

The plant will see ACF processing about 300 tonnes of ultra-low carbon high-grade ferrochrome per month, with production set to reach 600 tonnes monthly at its peak.

He said the project was part of other mining investments countrywide that bore testimony to the government's drive to get maximum benefits from national resources.

The President said his administration would promote openness and transparency in the mining sector. “The ongoing initiatives are a reflection of the nature of my administration and our determination to ensure openness and transparency in the exploitation and allocation of national resources.

“To this end, we will not shy away from doing what is good for the benefit of our people throughout the county, always mindful, of national interests.

“The mining sector continues to play a pivotal role in the economic developmental trajectory of our nation. Our country is endowed with vast minerals available for exploration, exploitation, value addition and beneficiation.”

The new plant will increase the economic value of high-grade chromite ore by removing large quantities of gangue minerals. This will result in the production of a higher grade ferrochrome with minimum impurities and without using electricity.

Zimbabwe hosts more than 12 per cent of global chrome reserve and ACF is one of the biggest firms mining the mineral. It employs more than 1,200 people with 97 per cent being locals.

Yolanda Torrisi is Chairperson of The African Mining Network and comments on African mining issues and the growing global interest in the continent. Contact:yolanda@yolandatorrisi.com