Investing In Resources & Mining In Zimbabwe
The Mining sector is a major contributor towards regenerating the Zimbabwe economy and is loaded with opportunities says the Honourable Minister of Mines & Mining Development Zimbabwe, Mr Winston Chitando.
As Zimbabwe begins to look into this sector game changer of her economy, investors are guaranteed and promised that Zimbabwe is now a viable destination and an addition as one of Africa’s new markets.
What is different now in this new market is the paramount change in her political climate and President Emmerson Mnangagwa has declared Zimbabwe opened for business. But what does this really mean in its simplicity? Definitely the Mining sector has a lot to answer to this, to bring the answers investors want to hear, The Harare Indaba hosted by the Resources For Africa sets the platform to answer this vital questions.
The Minister touched on the 3 essential requirements for Mining in Zimbabwe which are, Resources, Capital and Human Capital. He factored in on a safe and peaceful environment, and the clarity in policies, which must be clear and consistent, even if some aspects of these policies are not agreed to. He mentioned the need for sound systems which needs to be in place in order to operate and export mined products. As government, they are determined to create a safe environment which will be a major factor to attract the resources and capital flow needed in the sector. The Minister also highlighted that Zimbabwe prides herself in her Human Resources. But what is lacking now in Zimbabwe is capital.
There are over 70 known mineral resources in different geographical locations around Zimbabwe and only 10 major mineral resources are being tapped into at the moment. Major resources are Platinum, Gold, Chrome, Coal, Cobalt and there are also Diamonds occurrences in some regions in Zimbabwe. Presently, the Diamond resources is being 100% mined by the Zimbabwe Consolidated Diamond Company which is a hundred percent owned state entity.
The Minister also touched on the two major minerals, Platinum and Diamond which are subject to 51% and 49% shareholding for private players interested in investing in these two resources and this will be according to the indigenisation as stated in the Economic Empowerment Act. Besides those two minerals, foreign investors can access others mineral assets with a 100% shareholding. There is also a new kid on the block with a huge opportunity in Lithium extraction. With four active projects ongoing in Lithium, a particular dump outside Harare has undergone a bankable visibility study and is ready for a ground breaking ceremony in April.
The Minister also informed investors of the 30 billion tons of Iron Ore resources with zero extraction.
Zimbabwe is under explored, but investors are to take the opportunity here now especially in the usage of modern exploration techniques. Most geological exploration took place decades ago.
There are lots of Abandoned workings from the 1920s and 1930s, they need to be resuscitated and converted into operating mines.
The Minister closed his speech by saying the Mining Ministry is working very closely with the Parliamentary Committee on Mines and Energy, with the Chamber of Mines and with the Zimbabwe Miners Federation. The Ministry meets with the Chamber of Mines fortnightly on what they’ve tagged “ease of doing business” where issues surrounding how to attract the much needed prospectors investors and to how to make the already on ground investors working conditions easier. These and other developments have led to the Zimbabwean government introducing the Mining and Mineral specific development policy and specific mineral desks that will be introduced on the 1st of May, and this will be available to all investors.
Indeed Zimbabwe is ready for business.