The Sunday Mail
Editor’s Brief
Victoria Ruzvidzo
Whoever thought that achieving a $12 billion mining sector by 2025 was a fallacy or a mirage might need to think again. It is actually going to happen, even before the set time.
On Tuesday, Antwerp World Diamond Centre chief executive officer Mr Ari Epstein said the diamond sector has the potential to produce $5 billion worth of diamonds annually. He was speaking from a vantage and well-informed position. The dynamics of diamond production and all the works are his forte.
He was speaking just after meeting President Mnangagwa during his visit to Brussels for the EU-AU Summit held towards the end of last week.
“From what we have discussed with the miners, we can easily go to $4 billion or $5 billion a year. Of course we need the right equipment to do so. Diamonds are a symbol of love and in Zimbabwe that has been the case in their extraction so I don’t see any problem. The future looks bright because the value of diamonds is increasing. There is a huge demand for diamonds,” he said.
This is just profound. We have said it before that the potential resident in this country can make this nation the “Switzerland” of Africa. This country is blessed.
Zimbabwe is endowed with rich deposits of this mineral. Those in the know believe we ain’t seen nothing yet. We have barely scratched the surface. So you can imagine that big diamond players like Mr Epstein are marvelling at our potential here and are keen to come over and do business with us.
“Diamonds are a good store of value in cases where we have pandemics like Covid-19 so we believe that the future looks bright for diamond-producing countries and we are really looking forward to the country of Zimbabwe to increase its production in the future.”
What makes Mr Epstein’s statements even more gratifying is that this is just about diamonds. Zimbabwe has at least 48 other minerals with potential to rake in billions more, if not trillions.
The Great Dyke is pregnant with minerals, Zvishavane is choking, Mazowe doesn’t just have oranges, but its belly is teeming with gold and other mineral deposits. In Manicaland the diamond rush a few years ago pales into insignificance compared to what is still hidden inside.
In his Monetary Policy Statement released a fortnight ago, Reserve Bank of Zimbabwe governor Dr John Mangudya was quite bullish about the mining sector, saying the State of the Mining Industry report had shown that business confidence in the sector had grown to 17 percent in 2021, from 9,8 percent in 2020.
Close to half the respondents to the sector’s survey said production would this year rise by at least 40 percent. This is no small figure by any measure. It will mean more export earnings and more jobs even, among the huge benefits accruing from ramped up production.
That gold deliveries to Fidelity Gold Refiners went up by about 56 percent is telling. Small-scale producers brought in 62 percent of total gold delivered, up from 49 percent in 2020. Primary producers brought in 32 percent.
Other minerals such as platinum, chrome, nickel and black granite are expected to report high production figures this year. Overall, the sector is expected to grow by 8 percent, up from 3,4 percent in 2021.
In his 2022 National Budget statement, Finance Minister Mthuli Ncube said the Government will this year facilitate value addition to ramp up foreign currency earnings.
This includes gold ore to bullion processing through setting up of gold processing service centres, diamond cutting and polishing through the establishment of more cutting and polishing factories. Furthermore, the Government would support industry in setting up a Base Metal Refinery for nickel, copper, iron and cobalt.
This year will see increased enforcement of the ban on unprocessed chrome ore and concentrates. Licences in this sub-sector will from now be allocated to those that will have set up ferrochrome smelting facilities. This will also apply to coal, where applicants will need to set up coke oven batteries so they can be licensed.
The hiring of mining extension officers to monitor and support mining activities at district and provincial level is expected to be a game changer.
Expediting the amendment of the Mines and Minerals Act to align with the international best practice will also be helpful.
So indeed Mr Epstein was right. Zimbabwe will soon be raking billions of dollars from diamonds and other minerals.
Major investments are taking shape in the mining sector. More are in the offing. This can only augur well for this capital-intensive sector.
The beauty of it all is that the Government and the business community are in agreement and are working together in enhancing production and productivity.
Dr Mangudya noted in his statement that this will see Zimbabwe achieve more.
“The positive sentiments in the economy by the business community suggest that the expected robust economic growth envisaged in 2022 is attainable,” he said.
The mining sector is one of the pillars on which economic growth leans. Other sectors such as agriculture and construction are set to contribute significantly to the anticipated growth.
The President’s trip to Belgium has consolidated Zimbabwe’s engagement and re-engagement drive, with reports that a number of key investors are lined up to visit Zimbabwe this year. Already manufacturers of state-of-the-art equipment in the health sector have expressed interest in this country.
Mr Epstein said the Second Republic has created a friendlier investment climate that is attracting capital.
Of course the “Zimbabwe is Open for Business” mantra has not been mere rhetoric. There is still a long way to go, but efforts on the ground show the determination that this country has in improving operations for both domestic and foreign investors. The one-stop investment facility under ZIDA, current infrastructure development and other efforts have sent a cue that Zimbabwe means business.
The economy is expected to grow by 5 percent this year, a figure that stakeholders say is achievable. The dissipating Covid-19 infections have enabled increased activity in the economy, not just here, but globally. This should yield better results for Zimbabwe and other economies.
Of course Covid-19 trends remain a factor, but the disease has lost quite some steam. We should not let the guard down in terms of World Health Organisation protocols and lockdown measures put in place by the Government, but we need to maximise on the opportunities created.
In God I Trust!
Twitter handle: @VictoriaRuzvid2; Email: [email protected]; [email protected]; WhatsApp number: 0772 129 992.
