Zimbabwe calls for investment into mineral exploration
The government of Zimbabwe through the Minister of Mines and Mining Development in its quest to achieve an upper-middle-income economy by 2030 has called on the investors to place capital into mining exploration as the country banks on mining for economic revival.
Rudairo Mapuranga
Through the National Development Strategy-1 which seeks for the country to achieve an upper-middle-income economy, the mining industry is expected to contribute annual revenue of US$12 Billion by 2023 with exploration sighted as key to achieving the historical mark.
Speaking at the Zimbabwe Mining Promotional Conference at the Dubai Expo last year Minister Winston Chitando said it is of significance for investors to bank their money into mineral exploration for handsome returns.
“Those who have the appetite for exploration, Zimbabwe is the place, and there is a huge opportunity for a capital uplift. Zimbabwe is a mature mine economy, we have got a functional system for the export of the product, the importation of capital goods and we have a functional system for the importation of raw materials. All these make Zimbabwe a successful mining destination and make Zimbabwe growing by over 300 per cent,” Minister Chitando said.
The background of mineral contribution to the US$12 billion is that US$4 billion will come from gold, platinum, US$3 billion; US$1 billion, diamonds; US$1 billion, coal; US$1 billion from chrome; ferrochrome and carbon steel, half a billion in lithium and US$1,5 billion from other minerals, summing it to US$12 billion.
The artisanal and small-scale miners (ASM) are also expected to play an important role towards the mining milestone with sector player’s committing to contribute US$4 billion by the targeted period.
Globally, to replace minerals that the country is mining, around 10 per cent of all capital expenditure in mining goes towards exploration, however, in Zimbabwe, it is near to 0 per cent with the Finance Ministry allocating a ridiculous budget for exploration. The call by Minister Chitando for private companies to invest in exploration shows signs that the man is truly determined to see mining growth.
The Geological Society of Zimbabwe (GZS) Deputy Chairperson Kennedy Mtetwa has been on record sighting that exploration was key to establishing new world-class mines calling for the government to timeously issue Exclusive Prospecting Orders (EPOs).