The Sunday Mail
Sunday Mail Reporter
The mining sector has continued its impressive better-than-expected performance buoyed by business-friendly policies and favourable global commodities prices that will likely help it achieve the targeted growth to US$12 billion by next year, President Mnangagwa has said.
Closed mines have reopened, new projects are coming on stream and existing mines are currently expanding their operations.
During the January to June period this year, revenues from the sector grew to US$2,7 million from US$1,9 billion in the same period last year, representing a remarkable 40 percent growth.
Writing in his weekly column in this paper, President Mnangagwa said two key projects — the US$1 billion steel plant in Manhize, Chivhu, and oil prospecting in Muzarabani, Mashonald Central Province — could potentially trigger growth spurts in other mining sub-sectors and “lead the charge towards our goal of an upper middle-income economy” by 2030.
All this is happening at a time when the economy was facing significant headwinds from disruptions caused by Covid-19 and the war in Ukraine.
He said the Government will redouble efforts to create an environment conducive for further mineral exploration, expansion of existing mines and local beneficiation of minerals to add further impetus to the sector.
The sector, he said, was on course to contribute around 60 percent of the country’s export earnings on the back of galloping exports and new investments.
“When Minister (of Mines and Mining Development) Winston Chitando came to Cabinet with his target of US$12 billion-dollar mining economy by 2023, I was sceptical,” said the President.
“To my mind, this was a case of sheer exuberance by a youthful minister seeking cheap impression through hyperboles.
“The figures were stacked against him.”
He said in 2017, earnings from the mining sector stood at US$2,9 billion.
At that time, said President Mnangagwa, the country’s export revenues were below US$10 billion.
“We all wondered how things would change for the better so soon.”
He added: “Yet barely four years later, in 2021, the mining sector earned US$5,2 billion!
“Its earnings had nearly doubled in those four short years.
“As I write, the first half of 2022 has seen our earnings from mining at more than US$2,66 billion, up from US$1,9 billion achieved during the same period in 2021.
“This is a growth of more than 40 percent.
“A combination of growing export volumes and firming commodity prices internationally makes it quite feasible for us to creep towards a US$6 billion mark this year, which amounts to well in excess of 60 percent of our export receipts as an economy.”
Old mines which had shut, said the President, were being opened, adding further growth to the industry.
Government has also led a serious reorganisation of the mining sector since 2017, said President Mnangagwa.
Mining assets such as Eureka, Shamva, Radnor, RioZim Cam and Motor Biox Gold Plant and Sinomine Bikita Minerals that had been mothballed for years have since reopened.
Giant platinum group of metals miners (PGM) such as Zimplats and Unki, he said, are expanding operations.
He cited Unki’s PGM production for the second quarter to June 30, which surged by 38 percent to 66 300 ounces compared to the same period last year, as evidence of immense growth of the sub-sector.
“Exploration continues apace, with new mineral deposits being discovered.
“Looking ahead, we have to concentrate on the three Es: Exploration, Extraction and Expansion of all minerals and mines.”
He said there was also need for greater processing and beneficiation of minerals.
“When all the five elements are pursued in equal measure and with greater intensity, we should be able to see our mining sector gallop past the US$12 billion mark.
“It can be done; it will be done, thus creating more jobs, especially for our youths.”
