Zimbabwe - Mining and MineralsZimbabwe - Mining and Minerals
Overview
The mining sector is highly diversified, with close to 40 different minerals. The predominant minerals include gold, platinum, chrome, coal, and diamonds. The government intends to make amendments to the Mines and Minerals Act to make it more progressive and investor friendly in order to attract more investment into the sector.
Leading Sub-Sectors
The top minerals include gold, platinum, chrome, coal, and diamonds. The government expects gold production to rise after it introduced a gold support price of US$1,368.28 per ounce. Although gold deliveries had risen over much of 2018, the change in payment mechanism in the fourth quarter of the year where producers receive part of the payment in RTGS dollars at the disadvantageous official exchange rate led to a decline in gold deliveries to Fidelity Printers and Refiners. The government expects the country to produce 40 tons of gold in 2019 compared with the 32.5 tons achieved in 2018. In the diamond sector, the consolidation of diamond mining companies into the Zimbabwe Consolidated Diamond Company in Marange and the transition to conglomerates mining should lead to increased investment if the company buys the necessary mining equipment.
Opportunities
Besides direct investment in mining, there is a significant opportunity to provide heavy underground mining machinery and other supplies needed by the mines, as well as related transportation infrastructure and materials, including those related to the railways. The government’s renewed interest in increasing domestic beneficiation in the mining sector may require larger capital investments than for business models that relied upon the export of unprocessed or semi-processed natural resources.
Web Resources
Chamber of Mines of Zimbabwe
20 Mount Pleasant Drive, Mount Pleasant,
Harare.
Tel: +263 242334517 / 242334507
www.chamberofminesofzimbabwe.com
RioZim Limited
1 Kenilworth Road
Highlands
Harare
Tel: +263-242-776 085/89
www.riozim.co.zw.