Mining sector conveys 22pc increase in GB volumes
The country’s mining sector grew by eight percent in 2022 on account of production increases across the sector.
Zimbabwe’s sole manufacturer of conveyor belts, General Beltings (GB), says volumes in its rubber division increased by 22 percent to 379 tonnes driven by strong growth in the mining sector.
The country’s mining sector grew by eight percent in 2022 on account of production increases across the sector.
This comes as several large-scale mining projects are also under construction and will be commissioned in 2023 as Zimbabwe seeks to accelerate the growth of its extractive sector.
GB manufactures and distributes general-purpose and specialised reinforced conveyor beltings, rubber and chemical products.
Its product range includes rubber-covered belting, polyvinyl chloride (PVC) belting, light-duty PVC belting, solid-woven belting, transmission belting and conveyor belt rubber skirting.
Group chairman, Mr Godfrey Nhemachena, in a statement of financials for the year ended December 31, 2022, said the company was optimistic of growth in 2023 due to its firm order book.
“The division was buoyed by a consistent order book and improved throughput despite intermittent shortages of raw material in 2 months of the year.
“Turnover increased by 114 percent to $2,126 billion from the $995 million recorded in the prior year,” he said.
Several mining projects are set to be commissioned this year, three of them in lithium mining and processing, and are expected to play a critical role in driving growth in the mining sector, one of the mainstays of the country’s economy.
Other projects are in platinum, coal, gold and other minerals targeted to be commissioned within the coming years.
However, at the group’s chemicals division, Cernol Chemicals, total volumes decreased by 52 percent to 564 tonnes, which also resulted in a 11 percent decline in revenue to $884 million.
“The decline in volumes was attributable to depressed aggregate demand and the absence of exceptional Covid-19 business recorded in the prior year,” said Mr Nhemachena.
He said the company would build on the market confidence and product reliability established in the past to remain a preferred supplier in its pursuit of delivering commensurate value to its customers.
He said Cernol Chemicals would continue with initiatives for market recovery following the Covid-19 restrictions on the back of product quality, innovation and skills retention.
“Overall, the company expects to deliver an improved performance in 2023 although the supply of power for industrial purposes remains a significant operational risk that threatens the growth momentum thus far,” noted Mr Nhemachena.
Group volumes, at 944 metric tonnes, declined from the 1 488 metric tonnes recorded in the prior year, which included 514 metric tonnes of Covid19 related business.
Total group turnover at $3 billion, represented an increase of 53 percent compared the prior year’s $2 billion, which was attributable to the increased market consolidation and product mix.
Mr Nhemachena said the company’ås improved process efficiencies and strong technical partnerships cushioned it against the logistical constraints.
He noted that the order book firmed up as consumers of the company’s products opted for a local producer as a mitigant against their own supply risk.
Despite stiff competition from imports, Mr Nhemachena said, the company held its own in terms of price, product quality and turnaround times.
As a result, gross profit increased by 96 percent to $1,6 billion when compared with the prior period ‘s $846 million due to improved overhead recoveries.-herald
