Zimbabwe needs to improve its logistics to attract Iron Investors
Zimbabwe which reportedly boasts of high untapped iron ore reserves has been advised to improve its transport and logistics in order to attract investment in the iron ore mining subsector, Mining Zimbabwe can report.
Rudairo Dickson Mapuranga
Speaking to Mining Zimbabwe, The President of Chrome Miners Association Mr. Shelton Lucas said the iron mining sector was failing to attract investment due to logistic challenges. He said that the National Railways of Zimbabwe (NRZ) was incapacitated to transport iron ore for exports making iron mining unviable.
“There is a need for a proper rail network to be functional since iron is voluminous for instance the SPA l has got of 70 000t per month it needs a robust rail network for this cargo to be hauled to the sea Port per month. Iron is a low-value cargo hauled by haulage trucks the costs of transport outweigh the value of cargo.
“The success of any business lies in the market for this abnormal to be corrected there is a need of inter-ministerial engagement namely Ministry of Transport which is in charge of NRZ which can haul 2500t against a SPA of 70 000t,” Lucas said.
At an average of 60 percent iron ratio, the value of iron at LME is $US121 per tonne and ex mine is between US$30 and US$40.
Zimbabwe is relying on small scale miners especially for gold (accounting over 60 percent deliveries to Fidelity) and for iron, small scale mining activities are so minimum because of the quantitative approach for iron against qualitative one for Iron, iron is a base metal by so doing its a volume game which needs specialized machinery like excavators and dump trucks making it difficult to be done at small scale level.
The profitability of any iron ore mine lies in its location by the way of its proximity to the railway sidings. The railway grid should also in the railway grid that links the port of Maputo since it’s a bigger port that can accommodate bigger vessels as opposed to Beira.