The mining sector has generated more than $10 billion revenue in five years to 2014, an official has said.
BY MTHANDAZO NYONI
According to the Zimbabwe International Trade Fair Company daily bulletin, the Chamber of Mines of Zimbabwe president, Toendepi Muganyi, said the mining sector was contributing significantly to economic development, constituting about 15% of gross domestic product (GDP), 53% of foreign exchange earnings, between 8 to 12% of government revenue and more than 500 000 formal jobs.
“Just in the past five years to date, the sector has generated more than $10 billion, with a peak of $2,4 billion generated in 2012 alone. The future of the sector is very promising. Given right policies and supportive infrastructure the sector can attain as much as 25% of GDP and more than 65% of national exports. It can even treble its employment capacity in the next 15 years,” Muganyi said.
“The mining sector has the impetus to revive the economy and uplift the lives of its citizens in line with our socio-economic development goals.”
Muganyi said Zimbabwe was a resource-endowed country, with a number of deposits still to be discovered or exploited.
He told delegates at the ongoing Mining, Engineering and Transport (Mine Entra) exhibition in Bulawayo on Wednesday that the sector was weighed down by challenges that include depressed mineral prices, inadequate capital and high cost structure that is characterised by suboptimal royalties, shortages and inconsistent supply of power.
“The sector continues to operate below capacity and a number of mining companies are facing viability challenges,” he said.
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According to Muganyi, the total value of minerals (excluding diamonds) in the five months to May this year declined by 9,5% to $696 million compared to $768 million recorded during the same period last year.
Apart from gold which recorded 26% growth in volume in the first five months, the majority of minerals recorded decline in output with platinum output down 5%, palladium 7%, and chrome 56%, he said.
Nickel output was flat at 0,4%.
Speaking at the same conference, Mines and Mining Development minister Walter Chidakwa said to ensure that the country maximises the benefits from its mineral resources in terms of value, employment creation, skills and technology transfer and sustainable economic development, the mining industry needs to promote local beneficiation and value addition.
“In order to maximise the developmental impact of mining, the ministry aims to foster economic inter-dependencies between mining and the rest of the economy through maximising value addition,” he said.
