Government allocates ZW$132.7 billion to the Ministry of Mines
The government through the 2024 budget has allocated Z$132.7 billion to the Ministry of Mines and Mining Development (MMMD) to implement the legislative and administrative reforms that provide a conducive environment for mining and beneficiation.
Rudairo Mapuranga
Through the 2024 National Budget presentation the Minister of Finance and Economic Development Prof Mthuli Ncube said the government is expecting the mining sector to grow by 7.6 per cent in 2024, driven by ongoing investments in platinum group metal (PGMs), gold, coal and lithium, among others.
Prof Ncube also said that the growth of the sector will be sustained by a stable electricity supply.
“The mining sector is expected to grow by 7.6% in 2024, driven by ongoing investments in PGMs, gold, coal and lithium, among others. The sector is expected to maintain growth momentum in the medium-term estimated at 4.9% and 4.8% in 2025 and 2026, respectively.
“This growth will be sustained by expected relatively stable increased domestic electricity production, durect import initatives by large scale miners and private sector investment initiatives in renewable energy.
“This is also in line with Mining Industry Survey Report of 2024 which forecasts an increase in capacity utilisation in the mining sector, from 84% in 2023 to 90% in 2024, driven by expected increase in gold and coal production.
“An amount of Z$132.7 billion has been allocated to the Ministry of Mines and Mining Development to implement the legislative and administrative reforms that provides a conducive environment for mining and beneficiation,” Prof Ncube said.
According to the Minister of Finance, the government’s thrust is to upscale beneficiation along the mining value chains to facilitate job creation across the chain, through development of a comprehensive policy framework that prohibits the export of raw minerals.
He said frameworks will be developed under the auspices of the Minerals Development Policy, Beneficiation and Value Addition Policy and the Artisanal Miners Strategy.
“The global energy systems are undergoing a massive transition towards cleaner energy sources such as solar and wind from fossil fuels. However, these clean energy technologies like batteries depend on transition energy minerals such as copper, lithium, nickel, cobalt, manganese and graphite.
“In this regard, the country seeks to take advantage of the huge and highly diversified mineral resource base which includes all the five major minerals used in energy storage.
“Therefore, Government will develop a comprehensive policy frame work to beneficiate energy minerals including lithium to transform the country into a battery manufacturing hub,” Prof Ncube said.
Cadastre Information Management System
The Computerised Mining Cadastre Information Management System is on its final stages of being rolled out and this is expected to be completed in 2024. The system is expected to enhance transparency and accountability in the mining title management, facilitate the elimination of overlapping mining claims, strengthening property rights and security of tenure. To complete the programme, Z$13.3 billion is being allocated in the 2024 National Budget.
Mining Legal Framework
Government will review the Mines and Minerals Bill taking into consideration the observations and recommendations by the Parliamentary Legal Committee during the 5th session of the 9th Parliament. The target is to complete the process during the first half of 2024.
Exploration of Minerals
The recent developments where minimum exploration is undertaken and the mining rights are disposed of at astronomic prices, calls for urgent exploration by Government, in order to enable it to derive maximum value of the mineral endowments.
Financial resources should, thus, be availed for exploration through the Zimbabwe Mining Development Company (ZMDC), as this will create more revenue to the country through auction of already known resources or outright mining.
Participation of the state in the extraction of mineral resources
In order to derive maximum value of its mineral endowment, Government will participate in the extraction of strategic minerals such as lithium through the acquisition of equity. The extent of the equity participation will depend on the size of the mining operation and the strategic nature of the mineral concerned.
Mineral Leakages
Government will continue to prioritise curbing of mineral leakages through intensifying monitoring and surveillance of the mining sector by undertaking combined blitz by all relevant Government institutions.