The Sunday Mail
Debra Matabvu
MINING companies created about 30 000 jobs between 2021 and 2022, as the sector continues to attract new investors and expand operations on account of the Second Republic’s targeted policies.
Last year, mineral exports topped US$5,4 billion, which is double the US$2,7 billion realised in 2017.
The Chamber of Mines of Zimbabwe, which represents the country’s big mining companies, expects to add 4 000 jobs this year.
Zimbabwe Miners Federation — a representative of artisanal miners — is also angling for growth.
In an interview with The Sunday Mail, Mines and Mining Development Minister Winston Chitando said the Second Republic has attracted a large number of investors over the past few years.
“Zimbabwe’s mining sector plays an important role in the socio-economic development of the country, particularly through employment creation. The mining sector employed a total of 106 151 direct workers as at the end of 2022. There has been a significant increase in the number of people employed in the sector from a baseline of 77 799 at the conception of the National Development Strategy 1 (NDS1),” said Minister Chitando.
NDS 1 was launched in 2021, which means 28 352 jobs were created during the period.
Mining has recorded exponential growth over the past five years.
“In 2022, the mining industry attained US$5,4 billion in exports against a targeted projection of US$8 billion. In comparison with the base year, 2017, wherein the mining sector’s annual revenue amounted to US$2,7 billion, the mining sector has demonstrated a 100 percent increase in terms of mineral exports,” Minister Chitando said.
Zimbabwe is targeting a US$12 billion mining economy by the end of this year, with platinum, gold, diamonds and lithium, among major minerals, anchoring growth.
In 2017, the mining sector’s contribution to gross domestic product was about 9 percent, and the figure rose to over 13 percent in 2022.
One of the major projects that is set to transform the mining sector is the US$1 billion Tsingshan steel plant, which is expected to be the largest such venture in Africa.
Lithium, which is currently one of the most sought-after minerals in the world, is also set to be a game changer, as Zimbabwe holds one of Africa’s largest reserves of the resource, with a number of investments in the area taking shape.
Platinum output is also expected to grow as the latest investors — Karo Resources, Great Dyke Investment and Bravura — are at advanced stages in their ventures, while traditional players — Zimplats, Mimosa and Unki — are also ramping up production.
Gold production passed 35 tonnes in 2022, and in 2023, it is estimated that output of the yellow metal will exceed 40 tonnes.
Economic analyst Mr Persistence Gwanyanya said the increase in mining investments has been a result of several policies enacted by Government.
“There are a number of legislations that were amended, including the Indigenisation and Economic Empowerment Act, and the establishment of ZIDA (Zimbabwe Investment and Development Agency), as well as the restoration of the rule of law in respect of property rights.
“In addition, Government has been working on stabilising the economy through implementation of various monetary policies. All this contributes to investor confidence, resulting in increased investments,” he said.
Mr Gwanyanya said the country should continue to take advantage of the firming mineral prices on global markets.
According to a report on the state of the mining industry and prospects for 2023 published by the Chamber of Mines of Zimbabwe, the sector is expected to create over 4 000 jobs this year on the back of US$1 billion capital expenditure programmes.
“Formal employment is expected to increase by 9 percent,” the report says.
Zimbabwe Miners Federation chief executive officer Mr Wellington Takavarasha said many small-scale miners are formalising their operations, leading to enhanced revenue for Government.
“We have seen an increase in registration for compliance with EMA (Environmental Management Agency) by miners and this could in some cases mean an increase in jobs in the sector.
“We have also noted an upturn in the number of female miners, especially in areas such as Matabeleland. This bodes well for socio-economic growth and we continue to urge artisanal operators to standardise their operations and remit their produce to the responsible authorities and desist from illegal activities such as smuggling,” Mr Takavarasha said.
