Mining companies spend big to boost output

According to the Chamber of Mines of Zimbabwe’s (CoMZ) 2023 report, various mining companies are investing heavily in expansion and development projects.
ZIMBABWE’S mining companies have lined up capital investment projects totalling US$455,8 million to boost production capacities despite operating in a challenging environment, an industry report shows.

This significant investment demonstrates the industry’s commitment to expansion and development, experts say.

In addition to these future projects, mining firms have already invested more than US$1,5 billion in capital projects over the past three years, showcasing the sector’s resilience and determination to thrive.

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According to the Chamber of Mines of Zimbabwe’s (CoMZ) 2023 report, various mining companies are investing heavily in expansion and development projects.

These investments are in the platinum group metals, gold and lithium sectors.

Blanket Mine is spending US$12,7 million on tails storage facilities, while Dallaglio is investing US$25 million in transitioning to underground mining, expected to increase production by 7%.

Shamva Gold Mine is spending US$7 million on exploration and Pan African Mining is investing US$13 million in exploration and shaft deepening.

Other notable investments include Bulawayo Mining Company’s US$7 million in exploration and shaft sinking, Golden Reef Mining’s US$700 000 in heap leaching and carbon in pulp or carbon in leach, and Falcon Gold’s US$400 000 in exploration and development.

Over the past two years, Zimasco has spent US$6,8 million on upgrading furnaces and developing mines, expecting a 120% increase in production capacity by 2025.

Jinyi has invested US$7,1 million in power plant transport, furnaces and sintering plant, aiming to increase production capacity by over 20% by 2024.

Zimplats has spent over US$570 million on capital projects, including replacement mines, expansion projects and a solar plant. Mimosa Mining Company is investing US$200 million in its North Hill project and tailings storage facility.

In the lithium sector, Bikita Lithium Minerals has invested over US$300 million in exploration and expansion, while Kamativi Mining Company has committed US$249 million to its operations, including a spodumene mining and processing flotation plant.

These investments demonstrate the mining sector’s resilience and commitment to growth, despite operational challenges.

In its first quarter report for the current year, CoMZ expected output recovery in most key minerals to achieve the 2024 production targets.

“Risks to the mining sector outlook, however, remain on the downside, with mining companies expected to continue facing fragile power supply, foreign currency shortfalls, high-cost structure and capital constraints,” the report said.-newsday