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Structural and policy changes being introduced in the mining sector in Zimbabwe will likely spur it to rebound strongly in the medium term, the African Development Bank has said.

Some of the changes that the Zimbabwean Government has initiated include merging diamond mining companies into one in which the Government will have a 50 percent shareholding.

The mining sector in Zimbabwe, which is central to Government efforts to turn around the economy, has been under-performing due to challenges such as power shortages, weak international commodity prices and limited capital investment.

Power shortages alone are said to be cutting production by up to 10 percent.

In its 2015 African Economic Outlook report released at ITS annual general meeting underway in the Ivory Coast, the AfDB said the changes being introduced would impact positively on the mining sector.

“However, notwithstanding the softening of commodity prices, the mining sector is expected to rebound in the medium term.

“This is due to the planned completion of the merger and consolidation exercise in the diamond sector, as well as finalisation of the amendments to the Mines and Minerals Act and the new mining fiscal regime,” it said.

The AfDB said it was important to bring finality to the process of amending the Mines and Minerals Act.

“Once enacted, the Bill will modernise the legislation and make it consistent with international best practices, in line with the authorities’ commitment to reforming the mining sector.”

Between 2009 and 2012, the mining sector grew by an average of 35 percent but since then, growth has slackened.

The mining sector has the potential to make a significant contribution to economic growth over the medium to long-term as Zimbabwe is endowed with various minerals ranging from diamonds, chrome, iron ore and gold.

About 40 minerals out of a known 60 are being mined in the country. – New Ziana.