President Emmerson Mnangagwa today launched the four year mineral strategy meant to guide operations in reaching a US$12 billion sector target by year 2023.
Currently, Zimbabwe is realizing an average of US$ 3.2 billion annually from the sector.
Under the roadmap, gold, diamonds, chrome and platinum minerals will be central to the attainment of the milestone.
Zimbabwe harbours over 40 minerals under categories of precious metals, base metals, industrial metals and gem stones but owing to low capital inflows the sector has experienced stagnation.
Government however projects better fortunes going forward.
President Mnangagwa said the thrust of the US$12 billion is hinged on what he believes is positive sentiment towards his administration that will unlock capital in the sector.
“We are confident that investors are having more confidence to invest in the country on the backdrop of economic reforms we have taken,” he said.
Furthermore, the strategy seeks to also see the establishment of provincial mining policies that will see each province be guided by it’s mineral vision.
In the gold sub-sector, the strategy projects US$ 4 billion in receipts from the gold sector basing on an envisioned volume upscale to 100 tonnes per annum by year 2023 from 32.4 tonnes translating into just above US$ 1 billion in 2018.
This is expected to be reached through enhanced production from small scale miners who are already producing over half of total output.
This will be complemented by medium and large scale producers who are expected to chip in as more and more investments are already trickling into the sector.
Platinum minerals are also expected to yield better, reaching US$ 3 billion by 2023.
Mines and Mineral Development Minister, Winston Chitando said the platinum sector will be buoyed by construction works already taking place in the Great Dyke area were 290 000 ounces will be produced.
Currently the sector earns 978 000 ounces annually and due to investments already taking place in the sub-sector, an annual projection by year 2023 will surpass one million ounces.
The Chrome sector currently realizes 369 000 tonnes annually and is hence expected to deliver 1.1 million tonnes after four years, the strategy projects.
It further states that the sector is being spurred by Zimasco, Afrochrine, Jin An, and Niarchos among others.
The sector expects growth in production as investment is also firming in the sector.
Afrochrine, for instance is expected to commission two furnaces before year end which are expected to scale up production volumes.
Following the restructuring of the diamond sub-sector, the Zimbabwe Consolidated Diamond Company (ZCDC) will now produce under joint venture initiatives with companies such as Murowa, Anjin and Alrosa.
Small players will also get involved in diamond mining with Katanga, a partnership between London-listed Vast Resources and ZCDC on behalf of Marange community being a case in point.
The diamond sector is hence expected to reach in excess of US$ 1 billion form over 11 million carats by year 2023 from the 3.2 carats realized in 2018.
Value addition is hence expected to be central with cleaning and sorting of diamond expected to be top of agenda.
The Coal sub-sector has also been tipped to reach US$ 2.1 million tonnes produce in 2023 from the current 300 tonnes.
Tomorrow 263Chat Business will analyze the Mining Sector Roadmap of turning the sector into a US$ 12 billion economy by 2023.
