PRESIDENT Emmerson Dambudzo Mnangagwa recently launched a road map to achieving of a USD12 billion mining sector by 2023, which is expected to spearhead recovery of the ailing domestic economy.
Speaking at the event, president Mnangagwa said that the roadmap is equally pivotal to the attainment of vision 2030, which is aimed at upgrading the country to Upper Middle-Income status. He said the blueprint, which was set out in 2018, would result in significant economic reforms and acceleration of the country’s reengagement efforts.
“Trough the Transitional Stabilization Program (TSP), it is envisaged that investments and benefits accruing from a thriving mining sector will be critical building blocks for a prosperous Zimbabwe. To that that end we are prioritising enhanced investments in exploration, opening of new mines, beneficiation and value addition of minerals; as well as expansion of projects subject to various commercial and economic models.
“With the surging regional and global demand for various types of minerals, our country is set to steadily improve its position and make an imprint in the global supply chains. We are therefore, determined and committed to sustainably develop the sector and increase our visibility among the leading mineral producers in the world.
“Our strategies and policy interventions will lead to a USD12 Billion mining economy by 2023, characterised by optimum investment and output levels in all mineral commodities, amongst them being gold, platinum, chrome and steel, iron ore, coal and hydrocarbons diamond and lithium,” said Mnangagwa.
The president said creation of a 12USD billion mining sector by 2023 will accrue multiple benefits to Zimbabweans which includes creation of employment, infrastructure development and improvement of existing infrastructure.
He said Zimbabwe is privileged to have a plethora of minerals, which will increase the country’s visibility at a global level.
The blueprint, which was availed to the Business Connect, presents a 344% jump in capital inflows in a period of 5 years. The plan is hinged on capital investment, geology and human capital, which will unlock unprecedented development in the mining sector
Speaking at the same podium, minerals and mining development minister, Winston Chitando said capital investments have been unlocked through the ‘Zimbabwe is open for business mantra’, which has been highly publicized by the head of state. To this end, he said the vision of a multi-billion mining sector is currently being achieved through developments in the extractive sector.
Key to the roadmap is the gold sector, which will deliver US$4 billion by 2023 from a targeted 100 tonnes of gold. Artisanal and small-scale producers as well as medium to large-scale producers are highlighted at key players to the attainment of the targeted tonnage.
Through the USD12 billion mining sector roadmap, government is in negotiations with a foreign company expected to establish a mine that is expected to produce six tonnes of gold per annum. The biggest producer in the country is currently producing two tonnes per annum.
In platinum, current production stands at 978,692 (ozs) while the 2023 milestone target is 2,446,255 (ozs). Platinum will also contribute energy sufficiency in the sector as new kid on the block; Karo Resources aims to construct a 300MW Solar power plant.
In the diamond mining sector, the four major players in the sector are expected to anchor production and realisation of the vision. The roadmap aims to establish a Gemology Centre for the cutting and polishing of diamonds with training to be extended to the Zimbabwe School of Mines.
Chitando said Coal production will play a big role in achieving energy efficiency for the country as Coal and coal products from new and existing companies will be used in electricity generation at local power stations. Exports will also be realised thereby increasing foreign currency generation.