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Victoria Falls - The Chamber of Mines of Zimbabwe has called for the government to help the mining sector - described as unstable at the moment - grow and become sustainable by switching to exploration and project development instead of railroading the implementation of beneficiation policies.
Zimbabwean mining investors – among them units of Anglo American Platinum [JSE:AMS], Impala Platinum [JSE:IMP], Aquarius Platinum [JSE:AQP], Rio Tinto, Mwana Africa and Metallon Gold – are in a pickle over depressed commodity prices and have had to operate against the backdrop of policy inconsistency.
They also have to reduce their shareholding in Zimbabwean units.
In a journal released in Victoria Falls on Friday Alex Mhembere, chief executive officer of Zimplats and outgoing Chamber of Mines president, commented on the instability of the mining sector.
He said: “The outlook for most of the minerals we produce in Zimbabwe is unstable. Let us not forget about exploration and project development for the future of the mining industry depends on them.”
He said Zimbabwe’s current capacity to attract finance into exploration projects and funding into mining projects is “too low”, and added that such potential could be unlocked only if the country addressed barriers to competitiveness.
“We need to improve on policy consistency and do everything we can to reduce non-business risk,” he said.
Zimbabwe has vast deposits of minerals ranging from gold, platinum, chrome and nickel to coal, diamonds and other commodities. However, the crucial industry continues to suffer limited growth and decline in some minerals, with experts citing an environment not conducive to further investment.
Mining executives attending the Zimbabwean Chamber of Mines indaba in Victoria Falls said Zimbabwe’s mining industry is suffering from lack of support and growth-supporting policies. Mines and Mining Development Mminister Walter Chidhakwa and Finance Minister Patrick Chinamasa are set to address the meeting on Friday.
Against the backdrop of government demands for increased mineral beneficiation, which have seen the government threaten to implement a 15% levy on exports of unbeneficiated platinum, executives emphasised the importanance of in boosting power generating capacity.
“We have got to address power supply challenges now before smelters and refineries can be installed, for they will add more strain to current shortages,” said a mining executive.
Zimbabwe currently requires that chrome ore be smelted inside the country, while it is also moving to ban exports of uncut and unpolished diamonds and platinum not fully processed inside the country.
