Parliament Portfolio Chairperson on Mines and Mining Development Hon Mkaratigwa said despite its huge potential, Zimbabwe Minerals Development Corporation (ZMDC) has failed to sell its assets to investors due to a lack of patriotism and national interest from the majority of Zimbabweans which in turn influenced market confidence.
Rudairo Dickson Mapuranga
Mkaratigwa said, contrary to the reports circulating that ZMDC might not have a mineral value that has been portrayed, the company actually sits on a huge mineral asset base and some of the assets are yet to be tapped.
Mkaratigwa said the failure of the company to see its assets getting paid for should be credited to lack of patriotism and national interest which has been slowing down investor interest.
“It is real that ZMDC has a huge mineral asset base and some of the assets are also stocks which have not yet been sold. Lack of patriotism and national interest has been slowing down investor interest mostly, especially at some stage in this new dispensation.” Hon Mkaratigwa said.
Mkaratigwa however, agrees with the assertion that ZMDC should improve its geological data to match modern surveys and exploration. He said it was important for the country to embark on a massive exploration program to improve the country’s geological data.
“On reviewing geological data, yes, and that is what the government should do through the country. Investors naturally also want their own geological report, remember this is a market and that may involve exploration resources which they may not be willing to release until they are satisfied as I always say that capital is shy.” He said.
Mkaratigwa said investment in the mining sector has been down due to previous business-unfriendly legal and policy frameworks, however, due to changes that are being implemented, Mkaratigwa believes that investment is going to be boosted because the policies will bring about confidence.
“With the raft of changes going on in the country, we expect to continue seeing more investors as the investment climate and the willingness to continue transforming it improves. So the investment climate which is mainly anchored on market confidence has more influence to investment decisions than the asset value especially at the initial stage” said the Chairperson on Mines and Minerals Development Parliamentary committee chairperson.
There were reports that the claims that ZMDC was sitting on a billion-dollar asset needed to be supported by a modern geological data as the data available was archaic therefore won’t be reliable.