ZIMBABWE is on course towards meeting the US$12 billion mining milestone this year as the sector continues to boost its output across different mineral segments in response to enhanced Government policy measures, increased capitalisation, and the opening of new mines, an official has said.
A mining sector roadmap launched by the Government under the Second Republic in 2019 has set an ambitious target of increasing mining earnings to US$12 billion by the end of 2023.
Under this drive, the gold sector is expected to generate US$4 billion, platinum US$3 billion with chrome, iron, steel, diamond, and coal contributing US$1 billion.
Lithium is expected to contribute US$500 million while other minerals will contribute US$1,5 billion.
The last few years have seen the mining sector attracting huge investments estimated at around US$6 billion in high-impact projects across mineral sub-sectors.
The new projects have seen a huge jump in mining output in the last four years, with corresponding export earnings and massive job creation impact along the value chain.
Several other projects have been rolled out in re-opening closed gold mines across the country while capacitating hundreds of small-scale miners.
Moving towards the 2023 deadline, the chairperson of the Parliamentary Portfolio Committee on Mines and Mining Development, Mr Edmond Mkaratigwa, said several hurdles that impeded mining sector growth in the past have now been dealt with.
The progress in finetuning the business operating climate for mining has positioned the sector for higher growth, which makes attainment of the US$12 billion milestone more possible, he said.
“The US$12 billion mining sector growth target is being achieved. New mines have been opened and old ones reopened and retooled,” said Mr Mkaratigwa.
“As Parliament, we are happy that we have done much in improving efficiency levels in the administration of the sector.
“The Mines and Minerals Bill is already gazetted and with the lessons already learnt in trying to bring sanity to the sector, we expect the new law to buttress the efforts already in place, culminating into a strengthened and sustainably functional sector.”
The Mines and Minerals Amendment Bill, which simplifies mining titles, creates a single register of mining rights and titles and sorts out many areas of dispute between farmers and miners.
The bill was approved by the Cabinet last year in July following a protracted process that involved extensive consultation and rigorous analysis.
Mr Mkaratigwa said the US$12 billion mining sector target was spread over a number of years with the first years meant for laying the foundation through National Development Strategy 1.
“It’s already quite a while since the US$7 billion mark was attained and many minerals we have in the country have to contribute their portion and a lot is going on,” he said.
From an average of US$2,1 billion in annual earnings in 2017, official reports indicate the mining sector achieved US$5,3 billion in earnings in 2021 and more than $7 billion last year.
Mining contributes more than 60 percent of Zimbabwe’s export receipts and attracts more than 50 percent of foreign direct investment (FDI). –
