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Mines Ministry to engage investors on closed mines

Mines Ministry to engage investors on closed mines

Minister Winston Chitando

The Ministry of Mines and Mining Development has said it requires $8 million to enhance efforts towards the resuscitation of closed mines through engagement with investors and relevant stakeholders.

Mines Minister Winston Chitando, speaking at the 2022 pre-budget seminar, said more effort is also being done through the Zimbabwe Mining Development Corporation (ZMDC) whereby they are engaging various investors to reopen closed mines.

“The public urged the government to set aside resources for opening up closed mines across the country in order to raise more revenue and create employment.

“A total of $8,172,604 is required to support promotional activities, engagement with investors and relevant stakeholders towards the reopening of closed mines,” he said.

Minister Chitando said the government has come up with various incentives, both fiscal and non-fiscal incentives, to attract investment as the country strives to attain the target of a USD12 billion industry by the year 2023.

The US$12 billion industry ultimately feeds into the Government’s vision of Zimbabwe becoming an Upper Middle-Income Economy by 2030.

“It is important to benchmark our incentives regionally and globally and the Ministry does that periodically,” he said.

He noted that in terms of the Mines and Minerals Act [Chapter 21:05], any mining company that invests more than US$100 million may apply for a Special Mining Lease which allows the company to negotiate various tax concessions with the Government.

Minister Chitando also said that the Ministry will capacitate Mining Promotion Corporation (MPC) by approximately $5 million to help it spearhead the exploration needs for the year 2022 by the private sector and that of the Zimbabwe Geological Survey.

He said in line with Devolution and Decentralization, the Ministry of Mines and Mining Development is planning to establish offices in a number of communities including Hwange, Kadoma, Zvishavane and Lupane.

Minister Chitando said the ministry is seeking to transform the Lupane office into a fullyfledged Provincial Office as currently the Bulawayo Metropolitan hosts most of the staff and operations of the province.

“Funding will therefore be required for acquisition of land, construction of appropriate offices, fully furnishing the offices and provision of requisite tools of trade. In this regard the Ministry requires $150 million to achieve this target,” he said.

According to Minister Chitando, currently there are two Lithium Producers in Zimbabwe. He said

Prospect Resources commissioned their lithium processing pilot plant in June 2021.

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He said the pilot plant is producing petalite ore with four percent lithium and 0,05 percent iron oxide.

“The low iron quantity makes the product highly marketable. Phase 1 of the Arcadia Lithium Project will establish a plant that produces Low Iron Spodumene used in the Chemical Industry and Ultra Low Iron Petalite used in the Industrial Market.

“Phase 2 will establish a Lithium Hydroxide Plant and this plant will beneficiate low iron spodumene into Lithium Hydroxide, Lithium Carbonate and Lithium Sulphide.”

 

 

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