Tamuka Charakupa Business Correspondent
Government should develop a mineral beneficiation and value addition policy that aims to provide an effective framework to convert the country’s mineral wealth into a national competitive advantage that could see it easing the on-going foreign currency shortages and increase fiscus. The policy will promote economies of scale in order to enhance efficiencies and reduce costs of production.

In his keynote address at an economic research presentation in Harare organised by the Zimbabwe Economic Policy Analysis and Research Unit (Zeparu), industry expert Godfrey Dzinomwa told delegates that the policy would also ease the cost of doing business in the industry.

“If formulated, the policy will enable extensive exploration of minerals in order to provide reserves for sustainable and beneficiation of minerals while on the other hand helping to map and quantify the mineral resources potential in Zimbabwe,” he said

Mr Dzinomwa added that the policy would provide the incentives required to mitigate identified constraints such as access to raw materials for beneficiation at competitive prices, infrastructure, limited research and technological development, hence easing foreign currency shortages currently haunting the mining sector.

“Apparently the mining sector is currently hit by shortages of foreign currency which were exacerbated by the increase in foreign currency retention by the Reserve Bank of Zimbabwe from 50 percent to 80 percent, leaving the producers with only 20 percent of their foreign currency receipts,” said Mr Dzinomwa.

Mining operations have also been affected by policy inconsistency and predictability of the right of tenure and the indigenisation law, according to Dzinomwa who recommended that the government should enact a law incorporating the 75 percent local spent compliance route it previously announced.

He, however, concluded that a multi-stakeholder holistic approach is needed to boost the mining industry; adding that, if possible, all chrome ore be sold via a central body which will then resell and pay producers in foreign currency proportionally with international prices to ensure value addition in the sector.

The seminar was attended by members from the ministry of Industry and Commerce, Mines and Mining Development among other key stakeholders in the mining sector.

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