‘Inconsistencies cripple mining policy’

THE Parliamentary Portfolio Committee on Mines and Mining Development has bemoaned lack of “consistency and predictability” in the application of policies on value-addition and beneficiation of minerals in the country.

Zimbabwe, which is endowed with over 40 minerals, exports most of its mineral resources in raw form, resulting in the country losing billions of dollars, jobs and wealth in the process.

The National Development Strategy One highlights the need to promote value-addition of the country’s minerals through securing investors for the minerals in the country, establishing a base metal refinery for the platinum group of metals, introducing beneficiation tax to dissuade exportation of concentrates and matte and availing land for setting up of chrome beneficiation facilities.

“All these are noble ideas, but it is important that the country comes up with a policy on value-addition and beneficiation of the minerals,” according to Portfolio Committee on Mines and Mining Development chairman Edmond Mkaratigwa.

“Just next door, South Africa has a beneficiation strategy of its minerals. This then helps investors and interested stakeholders to understand the opportunities and threats in the beneficiation of the minerals sector,” he said while addressing delegates attending the Zimbabwe Metals Casting Indaba 2021 in Bulawayo last week.

“The policy will also guide the country in the crafting of laws and to integrate such a policy with regional and international policies on beneficiation, which include the Sadc industrialisation policy, the Africa mining vision among others.”

Mkaratigwa said both the Sadc industrialisation policy and the Africa mining vision call on African countries to promote beneficiation of their minerals, so as to realise more wealth and create jobs for their citizens.

“If you look at the Sadc industrialisation policy, under the Mineral and Beneficiation Cluster, Zimbabwe has been called upon to beneficiate diamonds, platinum, iron and steel, so that as the Sadc region, we have a competitive advantage,” he said.

“However, as a country, our iron and steel industry is still limping. Over the past decade, there have been plans to resuscitate Ziscosteel and we all remain hopeful that one day, we will be able to get an investor.

“Nevertheless, there have been strides to beneficiate some of the base minerals found in this country such as nickel and chrome. The platinum group of companies has also made investments in the establishment of a base metal refinery. All these are positive developments for the country.”

Mkaratigwa added: “The major challenge is the lack of consistency and predictability in the application of policies on value-addition and beneficiation of minerals. A good example is what happens with the chrome sector. You find that at one time, government announces that export of raw chrome is allowed and then at another time it is banned.”

In August this year, government banned raw chrome exports in order to boost feedstock of the smelting companies.

“Such kind of unpredictability creates confusion, particularly for would-be investors,” Mkaratigwa said.

He said Zimbabwe was in the process of amending the Mines and Minerals Act.

“But first of all, we need to come up with a policy or strategy that will guide beneficiation and value-addition of the country’s minerals,” he said.

Mkaratigwa said a number of policy measures could be introduced to promote value-addition and beneficiation of the country’s minerals.

These include offering incentives to companies based on local content of procured goods and services, tax breaks and preferential treatment for access to foreign currency, for companies involved in beneficiation of minerals.

“Some mining companies have been given tax breaks for making investments into the country, through statutory instruments approved by Parliament as well as reduction of electricity tariffs for beneficiation companies so as to reduce the cost of doing business,” Mkaratigwa said.-newsday.co.zw