Mining sector on track to achieve milestone
ZIMBABWE’S mining sector is on track to achieve the US$12 billion milestone by 2023 on the back of increased expansion projects across the industry’s sub-sectors, a Cabinet Minister has said.
In October 2019, President Mnangagwa launched the US$12 billion mining industry strategic roadmap by 2023 as the Second Republic has set sights on increasing minerals’ contribution to the economy.
The mining sector is critical in generating foreign currency, contributing about 70 percent of the forex earnings, largely driven by gold, platinum, and diamond.
Speaking during the 2021 Mining Media Awards ceremony held virtually last week, Mines and Mining Development Winston Chitando who was the guest of honour said:
“Throughout the whole industry we have positive things that are happening but I wish to point out that in the next three or so years, we will have a base metal refinery up and running.
“We are excited by the growth that should be taking place in the value addition of diamonds. We expect that by the end of next year, we will have a carbon steel plant in country and also the biggest in Africa. “We are excited by the huge development in the coal and hydrocarbon sector which will see Zimbabwe in a couple of years becoming a net
exporter of electricity. We are also excited by the growth happening in the gold sector.”
The Government expects that by 2030, the mining industry will be contributing about US$20 billion and this is also premised on a combination of picking low-hanging fruits or quick win projects with a medium-term impact as well as a longer-term impact. “We are all aware in terms of where we are heading as far as this mining industry is
concerned heading.
“We have a greater vision, which is the 2030 Vision set by His Excellency the President, for Zimbabwe to be an upper middle-income economy by the year 2030. We then have the 2023 milestone for the mining industry to achieve US$12 billion from a base of US$2,7 billion in 2017, which is almost a five-fold increase.
“We hope to achieve the US$12 billion mark with major contributions platinum, diamonds, gold, chrome and steel sector, coal and hydrocarbons,” said Minister Chitando.
With close to 60 minerals, a majority of Zimbabwe’s resources still remain unexploited and it is known that the mining sector, has the potential to sustain other sectors of the economy.
It is against this background that the US$12 billion mining economy target by 2023 has been established with a view to fully explore and extract the minerals.
As the country moves towards the US$12 billion mining industry, Minister Chitando said the media should inform and report on the progress and performance of what was happening in the sector.
Speaking earlier, Information, Publicity and Broadcasting Services Minister Kindness Paradza said while it appeared to be just an awards ceremony, the mining media awards event was more of cementing relations between the media and the mining sector.
He said the mining media awards were also about understanding the different ways the media and mining sectors operate.
Turning to the mining sector’s contribution to the attainment of Vision 2030, Deputy Minister Paradza said: “During the State of the Nation Address on October 1, 2019, the President indicated that Government was going to unveil a comprehensive mining development strategy and roadmap towards the attainment of our national aspirations.
“The President further pointed out that Zimbabwe is endowed with vast natural resources and is host to more than 40 different minerals in the categories of precious metals, base metals, industrial metals and gemstones.
“He pointed out that Government was convinced that the mining sector was a forerunner in the provision of backward and forward linkages with other economic sectors, creation of decent jobs, infrastructure development, export earnings and becoming the most preferred investment portfolio.”
Deputy Minister Paradza said President Mnangagwa further emphasized that the attainment of Vision 2030 is premised on the mining sector making huge contributions to the national economy.
“He envisages that investments and benefits accruing from this sector will be critical building blocs for a prosperous Zimbabwe. The sector was set to generate annual revenue of US$12 billion within the next few years, this projection on the role and function of the mining sector in the attainment of Vision 2030 is heartening.
“The mining sector must understand that it is the role of the media to disseminate information by cultivating relations with the media,” he said.
Deputy Minister Paradza said the media can effectively communicate development within the mining industry thus his ministry was delighted that the mining media awards were introduced not only to capacitate and honour impactful journalism in the value chain, but also to motivate journalists reporting on the mining sector.
“As a ministry with oversight on the media sector, we are aware that the sector accounts for 16 percent of the GDP (Gross Domestic Product) and 60 percent foreign currency receipts while an estimated 1,5 million people survive on mineral extraction.
“From this point of view, we know the centrality of the mining sector in leapfrogging the economy towards the attainment of an upper middle-income society in the next nine years.
“As a ministry, we note with pride the huge investments the mining sector has made in health, education, agriculture and infrastructure development and I must add that these developments are in sync with Government’s development as enunciated in the National Development Strategy 1 (NDS1).
“We are gratified that the awards will build stronger relations between the media and the mining sector,” he said. — The Chronicle
