Mining ZimbabweLatest Mining News, Policy and Industry Updates

Despite many mining companies increasing production, mining revenue is set to decline by approximately 20 per cent and is expected to further decline by 10 per cent in 2024 due to softening commodity prices. This was revealed by the Chamber of Mines of Zimbabwe State of the Mining Industry Survey Report presented at RTG Hotel in Bulawayo.

Rudairo Mapuranga

According to the survey report the country’s mining executives are expecting commodity prices to further decline in 2024 due to geopolitical tensions and weak global economic outlook.

“Analysis of survey responses shows that mineral revenue for 2023 is set to decline by approximately -20% and is expected to further decline by an average of 10% in 2024 due to softening commodity prices. Despite most mining companies planning to ramp up production to compensate for revenue losses due to low prices, the production increase will be more than offset by the decline in prices.

“Most mining executives expect the commodity market conditions to worsen in 2024 They are anticipating commodity prices to further the slowdown in 2024, mostly for PGMs and base metals citing geopolitical tensions and weak global economic outlook,” the report reads in part.

According to the report, PGM producers are expecting PGM prices to slow down with platinum prices expected to fall by (5%), rhodium (15%) and palladium (10%). Gold producers are expecting gold prices to fall by an average of -8%, while lithium producers and nickel producers are expecting price declines averaging 14% and 10%, respectively.

The government of Zimbabwe has offered to give tax breaks and other incentives to mining companies that invest in local beneficiation and value addition at the same time while prioritizing procurement of local suppliers.

Speaking at the official opening of the Mining, Engineering and Transport Expo (MineEntra) on Thursday President Mnangagwa said mining companies should procure a certain percentage of their goods and services from local suppliers in line with the Buy Zimbabwe Campaign.

The President also said that mining companies should invest in infrastructure that will support the development of downstream industries like roads, railways and power plants. He said the government will offer tax breaks and incentives to companies that invest in local beneficiation.

“I call upon mining companies to procure a certain percentage of their goods and services from local suppliers in line with the Buy Zimbabwe Campaign. This will help to grow the domestic economy and create jobs Mining companies must invest in infrastructure that will support the development of downstream industries. This includes things like roads, railways, and power plants. As Government, we will provide tax breaks and other incentives to companies that invest in local beneficiation and value addition. This will make it more attractive for companies to process their minerals in Zimbabwe rather than exporting them raw,” President Mnangagwa said.

The President also called on mining companies to operate sustainably and responsibly to minimize the negative impact of mining on the environment and local communities.

He said mining companies should also adopt new technologies and be innovative to remain competitive and sustainable.

He said mining companies should collaborate with universities and other research institutions to develop and adopt new technologies.

“It is also important to ensure that the mining sector is operated in a sustainable and environmentally responsible manner. This means minimizing the impact of mining on the environment and local communities. I believe that by taking these steps, Zimbabwe can maximize the benefits of its mining sector and achieve its economic development goals. Nyika inovakwa nevene vayo, and the mining sector must ensure it leaves no one and no place behind. This means ensuring that the benefits of mining are shared widely and that local communities benefit from the extraction of their resources. The adoption of innovation in the mining sector is essential for the industry to remain competitive and sustainable. New technologies can help to improve efficiency, reduce costs, and minimize the environmental impact of mining. Mining companies must also create a culture of innovation within their organizations. I call upon mining companies to collaborate with universities and other research institutions to develop and adopt new technologies,” HE Mnangagwa said.

Speaking at the same event the Minister of Mines and Mining Development Hon Zhemu Soda said there is a need for the mining industry to rethink its strategies to allow the country to benefit from mining.

“The theme of the 26th Edition of Mine Entra, “Accelerating economic transformation through mineral beneficiation” rightfully points out that there is a need for the mining industry to refocus its plans and work hard to ensure an accelerated and sustainable expansion of the sector, which will finally allow the nation to fully profit from its mineral resources, as is correctly pointed out,” Hon Soda said.

The Minister also said that mining companies have been coming forward to partner with the government in areas of sustainability in the mining industry.

“In conclusion, ladies and gentlemen, we want to take this opportunity to applaud the private sector for working closely with the Government on the journey walked so far in the Mining Sector. As such, it is my hope that this gathering will inspire some mining companies to embrace the value addition and beneficiation agenda which can bring about socio–economic transformation in the country. Furthermore, a number of companies have entered into agreements with the Government for investments in beneficiation and value addition plants e.g., in steel manufacturing, power generation etc. It is our hope that these projects will soon come to fruition,” he said.

Zimbabwe’s biggest Mining Exhibition, Mine Entra yesterday roared to life and industry players showcased their products, services, and technologies while fostering meaningful collaborations and knowledge sharing.

This year’s event attracted global attention and reinvigorated the mining sector in Zimbabwe. The event brought together international companies, mining professionals, government officials, and investors under one roof to explore the vast opportunities the Zimbabwe mining sector has to offer.

One of the main highlights of Mine Entra was the highly attended Zimbabwe School of Mines Lithium and Battery Minerals Conference which was addressed by the Minister of Mines and Mining Development.

According to Hon Soda, the country’s exports for lithium also increased by approximately 198.6 per cent USD$209 million by September 2023 compared to US$70 million realised the whole of last year.

In addition to technological advancements, Mine Entra offered investors and industry players an opportunity to explore potential partnerships and investments. The exhibition facilitated top class networking events, business meetings, and presentations that enabled participants to engage in meaningful conversations regarding future projects and collaborations. The Chamber of Mines hosted its Mining Industry Suppliers Forum running under the theme “Addressing Challenges Affecting Suppliers of the Mining Industry.

The Chamber of Mines President Mr Thomas Gono said the organisation recognises the importance of suppliers in the mining value chain and continues to take the lead in the use of local factors of production.

“The need to encourage local procurement will remain our industry’s long-term goal. This is specifically one of the key tenets of our local mining industry where we know if we buy locally, we also enhance the economic activities of other sectors. The chamber of mines recognizes the importance of suppliers in the mining value chain and continues to take the lead in the use of local factors of production. Demonstrating this, our JSP committee which spearheads the strengthening of linkages between the supplier sector and the mining sector has achieved key milestones and its recommendations are being implemented by the mining houses through local enterprise development, and supply development programs,” Gono said in part.

This direct interaction not only fosters trust and builds relationships but also lays the foundation for sustainable growth and development in the mining sector.

The exhibition also provided a platform for government officials to share important policies, regulations, and incentives to attract local and foreign investments in the mining industry. The mining sector in Zimbabwe is continuously evolving, and the government’s commitment to creating an enabling environment highlights its determination to position the country as an attractive investment destination.

Furthermore, Mine Entra emphasized the importance of capacity development and skills training in the mining sector. The Zimbabwe School of Mines showcased its programs, curricula, and initiatives focused on upskilling the workforce. Such efforts are vital for ensuring that local talent is equipped with the necessary skills and knowledge to thrive in the constantly evolving mining landscape.

Mine Entra’s success goes beyond the exhibition itself. The event acts as a catalyst, igniting enthusiasm and invigorating the mining sector in Zimbabwe. The positive outcomes from the exhibition have far-reaching effects, positively impacting economic growth, job creation, and sustainable development in the country.

President Emmerson Mnangagwa will officially open the event today.

Mining Zimbabwe is exhibiting at the Expo.

Despite local equipment and consumable suppliers facing several challenges which have hindered them from meeting the demand of the mining sector in Zimbabwe, there is a need to encourage local procurement in the mining industry to enable the growth and development of the country’s economy, Chamber of Mines President Mr Thomas Gono said.

Rudairo Mapuranga

Speaking at the Chamber of Mines 2023 Mining Industry Suppliers Forum running under the theme “Addressing Challenges Affecting Suppliers of the Mining Industry”, Gono said the Chamber of Mines recognises the importance of suppliers in the mining value chain and continues to take the lead in the use of local factors of production.

“The need to encourage local procurement will remain our industry’s long-term goal. This is specifically one of the key tenets of our local mining industry where we know if we buy locally, we also enhance the economic activities of other sectors. The chamber of mines recognizes the importance of suppliers in the mining value chain and continues to take the lead in the use of local factors of production. Demonstrating this, our JSP committee which spearheads the strengthening of linkages between the supplier sector and the mining sector has achieved key milestones and its recommendations are being implemented by the mining houses through local enterprise development, and supply development programs.

“The key products covered under this theme include the manufacture of bolts, steel forges, manufacture of steel, engineering maintenance protective clothing, and work wear, welding and civil works, mining of silica, and brick manufacturing industries. The mining sector interventions include offtake agreements and procurement chain support, capitalization support, training support, safety and compliance audits improvements in lines of business. Such success stories have already been recorded with a growing number of manufacturing companies having benefitted from these initiatives.

“However, our suppliers are facing several challenges, chief among them foreign currency constraints, high-cost structure and competition from imports. This situation has limited the capacity of local suppliers to meet mining companies’ demands to enhance the local content in the mining industry, suppliers should continue to strive to improve on quality of products as well as cost to tap into this opportunity. We need to be competitive, especially on pricing, quality and delivery time,” Gono said.

Speaking at the same event Chamber of Mines CEO Isaac Kwesu said equipment and consumable suppliers are important for the growth and development of the mining industry with their challenges able to affect the performance of the sector.

“Our suppliers remain our lifeline and their challenges negatively affect on the performance of the mining industry,” Kwesu said.