Top Grossing Zimbabwe minerals 2018
Precious metals were generally subdued in 2018 despite them being the top-grossing minerals in Zimbabwe mainly occasioned by weak safe-haven demand and a generally stronger dollar owing to interest rate hikes by the Federal Reserve during the year 2018.
These developments significantly raised the opportunity costs of holding precious metals such as gold and platinum. Furthermore, a general waning in global tensions diminished safe-haven demand for precious metals.
Zimbabwe remains one of the countries in Africa which are grossly endowed with natural resources specifically minerals. In a run down to the contribution of the minerals to the national GDP, platinum which mostly makes up the Great Dyke has proven to the most grossing mineral followed by gold and diamonds.
Ranked by value of output in 2018, Zimbabwe’s top 10 mineral commodities are as follows: platinum and other PGMs, gold, diamonds, nickel, coal and chromite.
In the year 2018, platinum consolidated its position as the leader of the group despite growing demand for chrome and lithium on the global market.
PLATINUM
Platinum output has been increasing since 2002 when Zimplats and Mimosa resumed operations and the subsequent entry of Unki in 2010 added further impetus for increased output.
The platinum sector is one of the few sectors that survived the hyper-inflation crisis where the rest of the mining sector recorded significant declines in output.
There are three existing players in the PGMs industry (Zimplats, Mimosa and Unki).
Potential new projects include ENRC, Ruschrome (Rostec) and Zimari Platinum. These projects are listed as Joint Venture projects under ZMDC.
PGMs producers share a vision of growing platinum production and sharing benefits with all stakeholders.
For every dollar created in the platinum industry, an estimated 73cents will be created in other sectors of the
economy arising from the multipliers.
The indirect multipliers include the indirect and induced impacts of the mining sector to the economy of the group despite growing demand for chrome and lithium on the global market.
PLATINUM
Platinum output has been increasing since 2002 when Zimplats and Mimosa resumed operations and the subsequent entry of Unki in 2010 added further impetus for increased output.
The platinum sector is one of the few sectors that survived the hyperinflation crisis where the rest of the mining sector recorded significant declines in output.
There are three existing players in the PGMs industry (Zimplats, Mimosa and Unki).
Potential new projects include ENRC, Ruschrome (Rostec) and Zimari Platinum. These projects are listed as Joint Venture projects under ZMDC.
PGMs producers share a vision of growing platinum production and sharing benefits with all stakeholders.
For every dollar created in the platinum industry an estimated 73cents will be created in other sectors of the economy arising from the multipliers. The indirect multipliers include the indirect and induced impacts of the mining sector to the economy.
The sector directly accounts for 3.5 per cent of GDP, which increases to 6.4 per cent with multiplier effects.
GOLD
The country is rich in gold, with an excess of 4 000 recorded gold deposits. In terms of gold productivity per square kilometre, the country is ranked above the traditional big producers including USA, Canada, Australia and Brazil.
The country has, however, remained largely underexplored, impacting negatively on grades due to limited new discoveries. (The last major gold discovery was Freda Rebecca in 1984 and started producing in 1988).
Despite attaining a peak of 27.1 tons in 1999, gold output levels progressively declined to reach a historic trough of 3.6tons in 2008, before recovering to back 20 tons by 2015.
The industry continues to operate below-installed capacity at around 77 per cent in 2015. Notwithstanding the lost decade +, the gold industry remains important in the socio-economic development of the country through its contribution to export earnings, government revenue and employment, among other contributions.
Gold remains ine of the largest contributor to mineral export earnings at around 40 per cent.
For every dollar created in the gold industry an estimated 79 cents will be created in other sectors of the economy
arising from the multipliers.
The indirect multipliers include the indirect and induced impacts of the mining sector to the economy [backward linkages ( for example transport, supplies, professional services) and forward linkages (for instance electricity generation).
In line with output growth, gold revenues will reach US$1.8 billion by 2020.
In 2018, gold deliveries to Fidelity Printers & Refiners reached 33.2 tonnes, a record high for the country, which also surpassed the year’s target of 30 tonnes.
DIAMONDS
The discovery of minerals such as diamonds in Chiadzwa and gold marked a new era in the economic revival and
resuscitation of Zimbabwe. Focus now shifted from an agricultural-based economy to a mineral resources dependent economy. Despite the scandals that continue to rock the diamond sector, it has proven to be one of the minerals which has to date kept the Zimbabwean economy ticking.
Over the last two decades, the Zimbabwe mining industry has become increasingly concentrated in terms of the number of mineral commodities produced and commodity distribution of mineral export.
In 2018, about six mineral commodities accounted for more than 96 per cent of the total value of minerals.
Asbestos, iron ore, tin and beryl, which drove export performance in the 1980s, are no longer being produced. Primary production of copper and cobalt has also ceased.
The high commodity concentration reflects the lack of a marginal commodity policy in Zimbabwe, which would
encourage the discovery, development and production of less popular mineral commodities including those that have never been mined in Zimbabwe.
The list of marginal commodities includes antimony, barytes, bauxite, iron pyrite, kyanite, talc, agate, amethyst and
tourmaline.
This article first appeared in the Mining Zimbabwe Magazine March 2019 Issue