Increased power generation stabilises mining sector
Mines and Mining Development Parliamentary Portfolio Committee chairperson Mr Edmond Mkaratigwa says the increased power generation has stabilised the mining sector as firms are ramping up production in the process safeguarding and creating more job opportunities.
The mining industry is one of the major economic mainstays to anchor the country towards an upper middle-income economy by 2030.
Zimbabwe has been recording a growth trajectory in the mining sector following different policy interventions, which has seen gold output growing as well as new players investing in the sector.
International investors have also grabbed the opportunity in the sector bringing in new technologies and promoting value addition and beneficiation of local minerals.
Mr Mkaratigwa told Business Chronicle that the availability of power in the mining sector is at the centre of its production capacity.
He said the uninterrupted power supply currently experienced will have far reaching positive consequences for the sector.
“This means that the sector will be able to meet its set production targets, there are no job layoffs, in fact, there is the creation of more jobs and the revenue to the Government is equally uninterrupted. Basically, the government is, therefore, able to meet its development obligations in the country and also to a certain extent uninterrupted power supply reduces pollution to the environment as the same companies have been using some energy that is not clean as a way of closing the gap felt by the unavailability of electricity.”
He expressed confidence that the envisaged US$12 billion mining sector by year end will not only be met but surpassed.
“Looking at developments that are taking place in the mining sector, the target must be met if not already there, and the announcement on the actual position should be made soon. I trust that many of the areas that needed to be addressed in that respect have been dealt with and by large we have created an even bigger than US$12 billion economy as it stands now,” he said.
This year, the gold mining sector is targeting to raise production to 40 tonnes from 35.38 tonnes last year, a record high, spurred by new mining projects, timely payments, and incentives to miners.
Out of the 35.38 tonnes produced last year, small-scale and artisanal miners contributed 65.5 percent.
Zimbabwe has been facing acute power shortages in the past years, which was crippling production across various sectors of the economy while the use of alternative sources of energy was said to be very expensive.
The country has recently witnessed a great improvement in power output, mainly at Kariba Hydro-Power Station and Hwange Thermal Power Station, which continue to anchor domestic supplies.
Hydro Power Station
Kariba Power Station has already been expanded resulting in the addition of 300MW into the grid to take the installed capacity to 1 050MW, which, given adequate water levels, will generate adequate electricity to meet industrial and domestic demand. — chronicle
