Value addition key to surpassing US$12bn mining target

MINERAL beneficiation and value addition are central towards the surpassing the US$12 billion mining target and attainment of Vision 2030 of Zimbabwe becoming an upper middle-income economy.

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.

Workers at the Muchesu Coal, the new Lubu Coal Project in Binga

The mining sector has recorded a cumulative total of US$20,2 billion in export earnings in the past five years spurred by the improved investment climate ushered in by the Second Republic.

International investors have also grabbed the opportunity in the sector bringing in new technologies and promoting value addition and beneficiation of local minerals.

Speaking at the official commissioning of Muchesu Coal Mine in Binga on Monday, President Mnangagwa implored mining entities to prioritise mine beneficiation.

“Under National Development Strategy (NDS1) implementation, beneficiation and value addition of our economic minerals is crucial if we want, as a nation, to attain Vision 2030 of Zimbabwe becoming an upper middle-income economy by the year 2030.

“The Government will continue prioritising enhanced investments in exploration, opening of new mines, beneficiation and value addition of minerals; as well as expansion of existing mining projects subject to various commercial and economic models,” said President Mnangagwa.

He added that in order to move the economy up value chains, Government will continue to improve the ease of doing business through continuing to create a stable and conducive macro-economic environment.

“With today’s event, value addition and beneficiation in the mining sector is firmly positioned for success,” he said.
Zimbabwe’s exports are dominated by semi-processed gold, raw tobacco, ferro-alloys, nickel ore and diamonds translating to low revenue earnings.

As such, there remains a need to enhance the number of local value chains in the local industry, which will translate to better-valued exports.
Mines and Mining Development permanent secretary, Mr Pfungwa Kunaka also said mineral beneficition is key the country to remain competitive in the global mining sector.

Muchesu Coal Project

“We must prioritise mineral beneficiation and value addition in the mining industry with investments in new technologies research and development so that we ensure we remain competitive and continue to add value to our mineral resources.

“The mining industry is one of the major economic mainstays to anchor the country towards an upper middle-income economy by 2030,” said Mr Kunaka.

Muchesu Coal Mine is one of the signature investment projects under the Second Republic, which is expected to yield high-value benefits for locals and the economy at large.

Matabeleland North has vast mining activities that have been critical to the growth of the province and the country’s development.
The province is the hub of coal-to-energy value chain investments, which will unlock up to US$1 billion under the coal and hydro-carbon focus.

The mining of coal at Muchesu has started with 10 000 metric tonnes being produced each month. Production will be scaled up to 20 000 metric tonnes per month in 6 to 8 months’ time.-chronice.cl.zw