Mining up 100 percent since 2017, Mineral beneficiation now top priority: Chitando
ZIMBABWE’S mining sector has achieved more than 100 percent growth in earnings
under the Second Republic led by President Mnangagwa, evidenced by the massive jump
in mineral exports to US$5,62 billion realised in 2022 when compared to about US$2,7
billion in 2017.
The sector is a shining example of growing investor confidence in the country in
response to comprehensive policy reforms, which have seen fresh investments running
into billions of dollars in high-impact projects being recorded across various mineral
sub-sectors.
Official Government figures show the mining industry alone has attracted more than
US$6 billion in new projects in the last four years, with a corresponding increase in
output, export earnings, and massive job creation impact along the value chain.
According to latest Reserve Bank of Zimbabwe (RBZ) figures, cumulative export earnings
or proceeds for the year 2022 were US$7,42 billion compared to US$6,37 billion earned
during the same period in 2021. This represents an increase of 16,5 percent in 2022.
Reserve Bank of Zimbabwe (RBZ)
“The mining sector export earnings accounted for 75,8 percent of the total export
earnings in 2022, underlying the need for diversification and broadening of the export
base,” said the Apex Bank.
“Minerals underpinned merchandise exports performance in 2022, growing by 12,3
percent, from US$5,011 billion in 2021 to US$5,627 billion, on account of higher
production coupled with favourable commodity prices for key commodities.”
As the country builds momentum towards the ambitious US$12 billion mining milestone
target by the end of this year, maximising mineral beneficiation along the value mining
chain is now a top priority as Government thrives to convert the country’s mineral
resources into a catalyst for economic growth, Mines and Mining Development Minister,
Winston Chitando, has said.
In line with the Second republic’s national thrust of fostering inclusive growth, social
development and macro-economic stability as espoused under the National Development
Strategy (NDS1), and the ultimate Vision 2030, the minister said the mining sector
should be at the forefront of driving sustainable growth, leading to employment creation
and poverty reduction.
“The main thrust is on mineral beneficiation along the mining value chain to convert the
country’s mineral resources into a catalyst for economic growth,” said Minister Chitando
while addressing to delegates to the just-ended African Mining Indaba held in South
Africa.
“The country has huge mineral resource endowments to support the development of
local value chains.”
His presentation was focused on unveiling mining opportunities in Zimbabwe and giving
updates on project pipelines and investment opportunities.
Minister Winston Chitando
Given that Zimbabwe has over 60 economic minerals available for exploration, and the
scope for higher earnings through value addition and beneficiation, the minister said the
country possesses much higher potential, which local and foreign investors must
capitalise on.
He said the key opportunity value chains include gold, diamonds, and semi-precious
stones, which are crucial in jewellery manufacturing.
Zimbabwe is also host to chromite reserves, iron, nickel, and carbon (from coal), which
are vital in steel manufacturing and down-stream engineering products
There are also hydrocarbons (coal+CBM) for power generation, petrochemicals, and
fertilizers while graphite and lithium deposits could be exploited for battery
manufacturing and ceramic industries with phosphates being utilised for the
manufacturing of fertilisers
“The country has highly diversified mineral endowment and investment opportunities,
therefore, exist across the entire mining value chain,” said Minister Chitando.
He invited potential investors for exploration projects – both brownfield and greenfield
saying the country is still under-explored with huge potential for new discoveries,
particularly using modern exploration techniques.
Opportunities also abound in mining and extraction, said Chitando, pointing out that
most of the mines are using antiquated machinery and require retooling to increase
efficiency and productivity.
Across linkages within the entire economy, he said local value addition through support
services such as supplies of mining equipment and consumables, financial services,
management, and consultancy remains widely untapped.
The minister also outlined investment entry points that include the acquisition of a
prospecting license followed by the pegging and registration of mining titles such as
EPOS, claims, mining leases, special grants for all other minerals, and special grants for
coal and energy minerals.
There is higher scope for investment by those interested in gold jewelry value addition,
as well as entering into joint ventures with existing mining companies including the
ZMDC, said Chitando.
As part of measures to stimulate investments, the minister said several fiscal and nonfiscal incentives have been created such as the competitive corporate tax rate of 25
percent, and 15 percent on holders of Special Mining Lease.
“There is no restriction on the amount of foreign currency brought in, there is no
restriction on dividend remittances and on disinvestment, 100 percent repatriation of
invested capital is allowed,” he said.
“VAT deferment is granted to mining companies on capital imported for a period of 120
days subject to the conditions set by the commissioner-general Zimra.
“Mining companies enjoy indefinite carryover of tax losses, there are progressive policy
reviews across entire economy ongoing and continuous review and improvement of ease
of doing business.”
The mining sector plays a significant role as one of the top economic drivers,
contributing about 60 percent of export receipts and 13 percent to the country’s Gross
Domestic Product (GDP), a key measure of economic development.-The Chronicle
