19.3 C
Harare

Showcasing Beneficiation and Value Addition Opportunities in Zimbabwe’s Mining Sector

Published:

The mining sector in Zimbabwe is pivotal to the nation’s economic growth, contributing 70 percentage to the GDP and providing employment for thousands. However, despite this wealth, the country continues to lag behind when it comes to beneficiation and value addition. Raw materials, especially minerals like chrome, antimony, lithium, platinum group metals (PGMs), diamonds, semi-precious stones among others continue to dominate the country’s export list, depriving Zimbabwe of the economic benefits that come with local processing and manufacturing.

By Rudairo Mapuranga.

Beneficiation, the process of improving the economic value of minerals through local processing, and value addition, which involves turning minerals into finished products, are both essential for Zimbabwe to maximize the benefits from its abundant mineral resources. These processes not only create employment but also drive economic growth, reduce dependence on raw material exports, and develop local industries.

Beneficiation Opportunities in Zimbabwe

Zimbabwe’s mining sector is incredibly diverse, with deposits of chrome, antimony, diamonds, coloured gemstones, lithium, PGMs among others. However, the country’s failure to establish beneficiation plants has limited the full exploitation of these resources. As recently noted by Zimplats CEO, Alex Mhembere, during a value addition discussion, “We need to prioritize building infrastructure that can beneficiate these minerals in-country, otherwise we will always be exporting jobs and value to other countries.”

 

  1. Chrome Beneficiation

Zimbabwe boasts some of the largest chrome reserves in the world, primarily located in the Great Dyke. Despite being one of the top producers of chrome, the country continues to export raw chrome ore, losing out on the benefits of local smelting and refining. Local chrome beneficiation would allow Zimbabwe to produce ferrochrome and other high-value products that can be sold at premium prices.

The construction of smelting plants to convert chrome ore into ferrochrome would not only create jobs but would also lead to the establishment of downstream industries such as stainless steel manufacturing. However, this potential remains largely untapped. Zimbabwe is lagging in chrome beneficiation, and investors in this area could reap significant rewards by capitalizing on the country’s resources and its strategic location near major markets.

 

  1. Antimony and Coloured Gemstones

Antimony, a critical mineral used in flame retardants and other industrial applications, has vast potential in Zimbabwe. Beneficiating antimony locally, instead of exporting raw ore, would open up new revenue streams for the country. The same is true for coloured gemstones such as amethyst, emeralds, and tourmaline, which can be cut and polished in Zimbabwe to increase their market value.

Zimbabwe is rich in semi-precious stones, yet the country has not fully capitalized on this wealth. By investing in cutting and polishing plants, Zimbabwe could establish a billion-dollar coloured gemstone industry similar to that of China, which dominates the global gemstone market. Zimbabwe’s coloured gemstones have the potential to create a vibrant local jewellery industry, adding significant value before export.

 

  1. Diamonds

Zimbabwe’s diamond industry, particularly in the Marange fields, has gained international recognition. However, the country remains largely an exporter of raw diamonds, while the true economic benefits lie in cutting, polishing, and manufacturing diamonds into finished jewellery. Establishing diamond cutting and polishing centres locally would significantly increase the revenue generated from this resource.

Countries like Botswana have successfully implemented diamond beneficiation strategies that have created jobs and developed the local economy, providing a clear blueprint for Zimbabwe to follow. Investing in diamond beneficiation plants would also help Zimbabwe create a home-grown market for its diamonds, reaching both African and global markets.

 

  1. Lithium Beneficiation

Lithium, often dubbed the “new gold” due to its critical role in the global green energy transition, is one of Zimbabwe’s most exciting mineral resources. The Arcadia Lithium Project, which was sold by Prospect Resources for a staggering US$422 million to China’s Zhejiang Huayou Cobalt, is a clear indicator of the global appetite for Zimbabwe’s lithium.

However, exporting raw lithium ore is far from maximizing its value. Zimbabwe has the potential to become a leader in lithium battery production by investing in local processing facilities that can convert lithium into battery-grade material. Junior mining professionals in Zimbabwe have been pushing for investment in battery manufacturing, which could revolutionize the local industry and establish Zimbabwe as a global player in the energy storage market.

Value Addition Opportunities in Zimbabwe

The push for value addition in Zimbabwe has been gaining momentum, with the government and industry players alike recognizing the importance of creating finished products locally. The following sectors offer significant value addition opportunities that can attract both local and foreign investment.

 

  1. Lithium Battery Production

As the world shifts towards green energy, the demand for lithium-ion batteries has skyrocketed. Zimbabwe, with its vast lithium reserves, is well-positioned to become a leader in battery production. Currently, the country exports lithium concentrate, but investing in local battery manufacturing facilities would allow Zimbabwe to capture more value from this resource.

Junior mining professionals in Zimbabwe have been actively advocating for the establishment of lithium battery manufacturing plants. This would not only create jobs but would also position Zimbabwe as a key player in the global electric vehicle and energy storage markets. However, significant investment is needed to develop the infrastructure and expertise required to produce batteries locally.

 

  1. Coal Value Addition: Thermal Power Plants

Zimbabwe is also rich in coal, particularly in the Hwange area. Instead of simply exporting coal, the country could add value by using it to generate electricity through thermal power plants. This would help meet Zimbabwe’s energy needs while reducing its reliance on energy imports. Furthermore, excess power could be exported to neighboring countries, generating additional revenue.

Value addition in the coal sector would not only boost the local economy but also contribute to Zimbabwe’s industrialization agenda by providing reliable energy for industries. The government has already expressed interest in establishing more thermal power plants, but progress has been slow. Now is the time for investors to step in and fund these projects, which hold the potential for significant returns.

 

  1. Steel Manufacturing: The Zisco Steel Project

The revival of the Zisco Steel project is one of Zimbabwe’s most ambitious value addition initiatives. Once the largest integrated steelworks in Africa, Zisco Steel has the potential to significantly boost the country’s industrialization and economic growth. The project, which aims to restart steel production in Zimbabwe, is key to local value addition.

When fully operational, Zisco Steel will process iron ore mined locally and convert it into finished steel products, which will be used in construction, manufacturing, and infrastructure projects across the continent. This will reduce Zimbabwe’s reliance on steel imports and create a vibrant local steel industry. However, as with many value addition projects in Zimbabwe, the Zisco Steel plant requires significant investment to get off the ground. Investors who see the potential in the steel industry would do well to consider backing this project.

 

  1. Jewellery Manufacturing from Coloured Stones

Zimbabwe’s rich deposits of coloured gemstones present a unique opportunity for value addition through jewellery manufacturing. Establishing a local jewellery industry would allow Zimbabwe to create high-end products from its gemstones, catering to both African and international markets.

By investing in jewellery manufacturing facilities, Zimbabwe could tap into the growing demand for luxury goods, particularly in emerging markets. Creating a home-grown market for jewellery made from Zimbabwe’s coloured stones would not only increase revenue but also promote Zimbabwean craftsmanship and design on the global stage.

Countries like India and China have demonstrated how local gemstone cutting and jewellery manufacturing can transform a semi-precious stone industry into a multi-billion-dollar sector. Zimbabwe has all the resources necessary to replicate this success, but significant investment is needed to develop the infrastructure and expertise required for local jewellery manufacturing.

Zimbabwe Lagging Behind in Value Addition

Despite the immense potential for beneficiation and value addition, Zimbabwe continues to lag behind in these areas.

Raw materials still dominate the country’s export list, with minimal progress made towards developing local processing industries. This is a clear indication that Zimbabwe is missing out on the full economic benefits of its mineral wealth.

Government officials have repeatedly called for the prioritization of value addition, but progress has been slow. A proposed minerals value addition plant, which was meant to be constructed with government support (Mapinga Mines to Energy Park), has yet to materialize. This project has been the subject of much talk, but little action, leaving Zimbabweans wondering when concrete steps will be taken to move the value addition agenda forward.

Incentives for Beneficiation and Value Addition

To attract investors to the beneficiation and value addition sectors, the Zimbabwean government has introduced various incentives. The government is offering tax breaks, reduced royalties, and other financial incentives to encourage the establishment of beneficiation plants. These incentives are aimed at making Zimbabwe a more attractive destination for investment in mineral processing and manufacturing.

Conclusion

The opportunities for beneficiation and value addition in Zimbabwe’s mining sector are vast, but they remain largely untapped. From chrome and antimony to lithium and PGMs, Zimbabwe has the resources needed to develop a thriving local industry that processes and adds value to its minerals. However, significant investment is required to build the infrastructure, develop the expertise, and establish the industries necessary to achieve this goal.

Related articles

spot_img

Recent articles

spot_img
error: Content is protected !!