Zimpapers Logo

Judith Phiri Features Reporter

Zimbabwe’s mining sector is highly diversified, with close to 40 different minerals. The predominant minerals include platinum group metals (PGM), chrome, gold, coal, and diamonds.

The country boasts the second-largest platinum deposits and high-grade chromium ores in the world, with approximately 2,8 billion tonnes of PGM and 10 billion tonnes of chromium ore.

The mining sector is registering unprecedented growth, for the first time in history as positive gains continue to be realised from the Government’s economic reform agenda.

In 2019, Zimbabwe set out on an ambitious drive to more than quadruple the mining sector revenue by hauling minerals worth US$12 billion by 2023.

Launching the US$12 billion mining industry roadmap, President Mnangagwa said gold is expected to contribute US$4 billion, platinum US$3 billion, ferro-chrome and carbon steel will contribute US$1 billion while diamonds and coal will contribute US$1 billion each.

Lithium is expected to contribute US$500 million while other minerals contribute US$1,5 billion.

Under this drive, the Government expects that by 2030, the mining industry will be generating upwards of US$20 billion.

During the recent 26th edition of the Mining, Engineering and Transport (Mine Entra) 2023 expo at the Zimbabwe International Exhibition Centre (ZIEC) in Bulawayo, officials indicated that the mining sector was drawing closer to its target to attain US$12 billion mining industry.

Running under the theme, “Accelerating Economic Transformation Through Mineral Beneficiation”, the premier expo featured diverse networking and knowledge-sharing platforms that sought to propel the mining industry as a catalyst for inclusive economic growth, now and into the future.

This year’s show saw a significant increase in interest from players in the mining and related industries attracting a total of 204 exhibitors showcasing the evolving innovations in the mining industry.

These took up 6 544 square metres of space representing 93,88 percent of available space (6 770 square metres). This figure represents a 6,9 percent increase in space occupancy over last year (6 125 square metres occupied in 2022).

Mine Entra 2023 enjoyed a 79,9 percent retention rate over the previous edition, while another interesting point to note was the increase in direct exhibitors versus indirect exhibitors.

This was indicative of the intrinsic value of the platform in the eyes of exhibitors who once they have had a Mine Entra experience as a co-exhibitor, almost always want to come back, this time under their own stead.

Four foreign nations took part in this year’s show namely Botswana, China, South Africa and Tanzania. They were represented by 12 individual companies (eight direct and four indirect).

In terms of local participation, 65 percent of exhibitors came from Harare while 31 percent came from Bulawayo and the remainder from other cities.

About 1 935 unique business visitors were said to have attended the exhibition. The total number of people who came into the exhibition centre were 4 686 including business visitors plus 654 exhibitors and services providers.

Business visitors who attended the show came from the following countries: Australia, Botswana, China, DRC, India, Mozambique, Palestine, Singapore, South Africa and the United Kingdom.

Their profiles included mainly executives from industrial enterprises, banking and finance, mining managers, buyers and executives, service sector representatives, distributors of materials and equipment, as well as government officials, among other professionals with an interest in the mining value chain.

With clear signs that the US$12 billion mining sector target is achievable by the end of the year, there is need to address some of the few low-hanging fruits, with one being to leverage innovation and technology to become trailblazers of a modern economy by exploiting the massive economic opportunities in the country.

President Mnangagwa who officially opened the 26th edition of Mine Entra 2023 Conference, rallied the mining industry players to “think beyond the present” as mineral beneficiation and value addition have become urgent imperatives for Zimbabwe as the country forges ahead to achieve its national development targets.

He said, “We must as Zimbabweans innovate and think beyond the present to emerge as trailblazers in the mining and manufacturing sectors riding on our expansive mineral resource base.”

The President said enhanced value-addition and beneficiation should result in the accelerated modernisation, industrialisation and diversification of the economy.

“Additionally, increased investment in value addition and beneficiation should see Zimbabwe graduating to become a world-class exporter of processed minerals and related products,” said President Mnangagwa.

President Mnangagwa said he has had the privilege of commissioning various signature mining projects in the areas of exploration, extraction and expansion since the advent of the Second Republic.

These include high-impact investment projects such as Prospect Lithium Zimbabwe, Sabi Star Lithium Mining and the recently commissioned Muchesu Coal Mine in Binga.  Invictus Energy has commenced oil and gas drilling at Mukuyu 2 in the Muzarabani basin while the construction of the Phase 3 Coke Oven Battery at Dinson Colliery in Hwange is nearing completion. The construction of Phase 1 of the Tsingshan Carbon Steel Plant in Manhize in Mvuma is being accelerated.

He said the expansion of Pickstone Peerless Mine, Unki, Mimosa and Zimplats concentrator capacity expansion projects as well as the Karo Resources Mine Exploration Project, are all well on course.

President Mnangagwa said Zimasco and ZimAlloys are also increasing their chromium processing capacity.

“I congratulate all the above entities and others across the country for the evident transformation of our mining sector. Well done to you all,” he said.

President Mnangagwa said the Government will continue working on creating a conducive investment environment to attract both local and international investors.

At the same event, Vice President Dr Constantino Chiwenga applauded the massive investments and increased domestic production, especially in the mining sector, saying given the milestones achieved so far under the Second Republic, the targets set out under Vision 2030 were “within reach”.

Guided by the National Development Strategy (NDS1) blue-print, Zimbabwe is focused on transforming its economy to an upper middle-income status and has since 2018, championed a series of comprehensive policy reforms.

These, coupled with renewed domestic business growth and the adoption of new technologies focused on scaling up export earnings, have enhanced the destination’s attractiveness to new investments in different sectors of the economy.

Highlighting that the country was on track to achieve its US$12 billion mining target by the end of the year, Mines and Mining Development Minister Zhemu Soda officially opening the Lithium and Battery Mining Conference, said Zimbabwe has realised a total of US$209 million from lithium exports, owing to a surge in the demand for the mineral.

Under the US$12 billion mining economy by the end of this year, the lithium sector is expected to contribute US$500 million and the sector is almost reaching the target, with indications that it will most likely surpass it.

“The exports of lithium have increased significantly from 2018 up to 2022. The respective exports revenue generated from the export of lithium during these years grew from US$1,8 million in 2018 to US$70 Million in 2022. By September, 2023 a total of US$209 million had been realised from lithium exports which is a very impressive improvement,” said Minister Soda.

In the gold sector, he commended the contribution by the artisanal and small-scale sector at the Zimbabwe Miners Federation (ZMF) Small-Scale Mining Conference.

Minister Soda said for the period January to September this year, small-scale miners contributed 13,8 tonnes of gold deliveries to Fidelity, representing about 61 percent of total production.

“I urge you to continue with the hard work spirit in order for us to reach the reviewed target of 40 tonnes for this year. Apart from national economic development, the artisanal and small-scale miners sector has emerged as a source of livelihoods for many people given the huge numbers involved.”

Gold has remained one of the major foreign currency earners in Zimbabwe, and the sector has proved to be strategic to the mining industry and the national economy at large. In 2022, the gold deliveries to Fidelity Gold Refinery (FGR) stood at 35,2 tonnes, which was above the set target.

The 2023 gold deliveries to FGR stand at 40 tonnes.

Minister Soda was also charmed by the quality and standard of exhibitions at Mine Entra 2023 stating that they showcased the innovation and the potential of the Zimbabwean mining industry, while they resonated well with the aspirations of achieving a US$12 billion mining industry.

He said he was confident that the discussions and the deals that took place at the expo would help to shape the future of mining in Zimbabwe.

“With a month and a half before the year ends, one can safely say the mining sector could be able to clock the US$12 billion target on the back of increased investments and expansion projects.

“The main interest that we share is to advance our economy, build our networks and also improve the livelihoods of our people.

“In Zimbabwe we have the US$12 billion mining economy being repeatedly called upon, it is our wish as the Ministry of Mines and Mining Development to achieve and surpass that target,” said the Ministry’s Permanent Secretary, Mr Pfungwa Kunaka at the Mine Entra 2023 Welcome Cocktail.