MMCZ Seeking Phosphate Mining and Fertilizer Investors
The Minerals Marketing Corporation of Zimbabwe (MMCZ) is actively seeking an investor to venture into phosphate mining and subsequently fertilizer production, MMCZ Acting General Manager Dr. Nomsa Moyo has said.
By Rudairo Mapuranga
Despite conveying the importance of this endeavour to the Ministry of Mines and Mining Development, no interested investors have come forward, prompting speculation about the profitability of such ventures.
Speaking at a stakeholders’ engagement meeting between the MMCZ and the parliamentary portfolio committee on Mines and Mining Development recently, Dr. Nomsa Moyo emphasized the organization’s commitment to advocating for the exploration of phosphate resources in Zimbabwe. However, the absence of investor interest, whether domestically or internationally, has hindered progress in this area.
“We’ve advised the Ministry that there’s a need to tap into phosphate mining. But so far, we haven’t had an investor who has come in to invest, whether locally or internationally. But the Ministry is aware that we could benefit as a nation. But until such time, we have somebody who is prepared to come and invest. Whether it’s because the profit is minimal or the business is not so lucrative, nobody so far has shown interest in investing in phosphate mining and going further to producing fertilizers. But as an institution, we are aware of that, and we continue to advise the Minister on that issue,” Dr. Moyo reiterated.
The global demand for phosphate ore is steadily increasing due to an ever-growing population and, thus, an unrelenting food supply. The production increase is directly linked to the availability of phosphate fertilizers.
The potential of phosphate mining in Zimbabwe remains untapped, with the prospect of utilizing it for fertilizer production still unrealized.
What is the Government Doing?
The Government is giving priority to the national policy of expanding the Dorowa Minerals Phosphate Mine and processing plant in Buhera to boost local production, create employment, reduce the cost of fertilizers, and substantially reduce imports.
Dorowa Minerals is wholly owned by Chemplex Corporation, which falls under the Industrial Development Corporation (IDC), an investment vehicle under the Ministry of Industry and Commerce. It is the only producer of phosphate in Zimbabwe and sits on large reserves of phosphate ore, making it a strategic player in the country’s economic development. The phosphate produced at Dorowa is used in the production of phosphate fertilizer blends such as Compound D fertilizer at Zimphos in Harare. The mine produces 150,000 tonnes of phosphate concentrate per year.
According to the country’s Vice President, Dr Constantine Guvheya Chiwenga, the Government elevated the fertilizer value chain as one of the priority sectors in the National Development Strategy (NDS1) to ensure Zimbabwe achieves an upper-middle-income economy by 2030, with fertilizer production being important in the agricultural sector.
“The development of the value chain is a key driver for industrialization and is a fundamental import substitution strategy, which results in job creation, expansion of the industrial base, economic growth, poverty reduction, luring of new investments and technologies, as well as improved incomes and revenues into the treasury. These macroeconomic impacts are important as they are in line with the aspirations of the NDS1 as we strive to achieve Vision 2030. The fertilizer value chain players are already implementing the five-year Fertilizer Import Substitution Roadmap in support of local production of fertilizers. This is testimony to private sector support of Government policies. The five-year roadmap targets to boost productivity and production of fertilizer, save foreign currency, ensure food security, and create employment,” said VP Chiwenga.
Profitability of Phosphate Mining in Zimbabwe
The country has an estimated potential reserve of phosphate totaling 197 million tons (ore) at an average grade of 13% P2O5. Based on the P2O5 content, three phosphate grades can be distinguished: low-grade ores (12–16% P2O5), medium-grade ores (17–25% P2O5), and high-grade ores (26–35% P2O5). The phosphate ore enrichment processes allow the gangue minerals to be separated from the economically valuable phosphate. Several methods are used to upgrade the low-grade phosphate ore to a marketable-grade product, such as crushing, grinding, screening, scrubbing, heavy media separation, washing, roasting, calcination, and flotation. Phosphate deposits, which after mining and processing yield a raw material containing 28–38% P2O5, are considered economically viable, and the grades in Zimbabwe can surpass 30% after processing.
Fertilizer Production
The production of P-fertilizers requires an intermediate step: the production of phosphoric acid, which is one of the most important intermediates in the inorganic chemical industry. Phosphoric acid is manufactured from phosphate ores using thermal and wet processes. In industry, the wet process is more commonly used due to its lower energy requirements compared to the thermal process and thus greater economic viability.
Conclusion
Zimbabwe has the potential to mine phosphate and further produce fertilizers, as it has phosphate ore that can be processed to economically viable grades. The production of fertilizers using the wet process also makes it economically viable for production.