MMCZ Records 21% mineral sales increase
Although there was a 21% increase in mineral sales during the first 11 months of 2024 compared to the previous year, there was a 13% decline in value from $3 billion to $2.6 billion due to depressed global mineral prices during the period under review, Mining Zimbabwe can report.
By Rudairo Mapuranga
Speaking during a press briefing held on Friday, the Acting General Manager of the Minerals Marketing Corporation of Zimbabwe (MMCZ), the country’s sole minerals marketing agent except for gold and silver, Dr. Nomusa Moyo, in a speech delivered by Mr. Gwarimbo, Acting Deputy General Manager of Finance and Administration, confirmed the revenue loss, citing fluctuating global mineral prices as the main contributing factor.
“While we successfully increased our mineral exports in terms of volume, particularly in the platinum group metals (PGMs), lithium, and high-copper ferrochrome sectors, we experienced a decline in the overall value due to weaker global prices,” Gwarimbo said.
MMCZ recorded a total of 3.9 million metric tonnes in mineral sales during this period, an improvement from 3.2 million metric tonnes sold over the same period in 2023. However, the value of these sales dropped significantly as global markets, especially in key minerals like PGMs and coal metals, experienced reduced demand and lower pricing.
“Despite the decline in revenue, MMCZ remains optimistic, as the volume increase demonstrates that Zimbabwe remains a strong player in the global mineral market,” Gwarimbo added.
He emphasized the need for the country to focus on value addition and beneficiation strategies, in line with the National Development Strategy 1 (NDS1), to counter the effects of price volatility in raw mineral markets.
PGMs were the top-performing minerals, contributing $1.3 billion to total exports, followed by lithium, which earned $457 million, and high-copper ferrochrome, which brought in $311 million. Despite this performance, the overall value of exports saw a sharp decline, a trend affecting several mineral-producing countries due to global market conditions.
To mitigate future losses, MMCZ has embarked on a strategic plan to develop new export markets in countries such as China, India, Australia, and Peru. The Corporation is also focusing on research and development initiatives to better understand Zimbabwe’s lithium resources and enhance mineral resource accounting.
Gwarimbo also highlighted the corporation’s ongoing efforts to curb mineral leakages, noting investments in state-of-the-art equipment to improve local laboratories’ assaying capabilities.
“We are confident that once these measures are fully implemented, we will be able to recover lost revenue and improve the mining sector’s contribution to the economy,” he said.
The corporation remains hopeful that global mineral prices will stabilize, enabling the country to regain lost ground in the mining sector as it continues to pursue value addition and beneficiation opportunities.