Harare – Government will focus on supporting enhanced production of all minerals to spur growth, and ensure that leakages from all minerals are plugged, says Finance and Economic Development Minister, Prof Mthuli Ncube.
In his 2019 Pre-Budget Strategy Paper, Prof Ncube said mining companies will also be accorded greater access to foreign currency in order to avoid delays in the procurement of key raw materials and spare parts for machinery and equipment.
“Furthermore, the thrust should also be to strengthen strategic sectoral inter-linkages with other sectors of the economy, through value addition and beneficiation.
“In addition, there is need to improve and sustain the livelihoods of the majority of our rural communities in the areas where these minerals are being exploited through a well-articulated Corporate Social Responsibility Framework.
Zimbabwe projected growth of 26 percent in 2018 in the mining sector, driven by strong performance of gold, coal, chrome and diamond while other key minerals for platinum group of metals (PGMs) underperformed.
The lower than anticipated platinum output is attributable to reduced throughput from the major producer, Zimplats, due to the planned closure of open-pit operations, as the company switches to underground operations at Bimha mine which reached design production capacity as well as decline in international prices.
Going forward the Treasury boss said Government will be capacitating Fidelity Printers and Refiners to mop up all gold, through increasing gold buying and support centres across the country and also capacitate small scale miners, through access to equipment for hire and affordable credit lines and technical skills.
Prof Ncube said there is also need to embrace interventions to reduce environmental, social and health impact challenges that arise in artisanal and small scale mining operations.
He said there is need to finalise amendments of the Mines and Minerals Amendment Act.
“Finalising amendments to the Mines and Minerals Amendment Act, which seeks to promote exploration and mining by revoking unutilised claims being held for speculative purposes is critical.
“Also harmonising mining taxation laws to ensure viability of the sector and facilitating expeditious implementation of currently stalled completion of the base metal refinery at Zimplats for it to reach local refining thresholds in line with the beneficiation roadmap, will be on the agenda.”
He added that Government is capacitating Hwange Colliery to fully embark on underground coal mining; and resuscitating idle and distressed mines under ZMDC.
“In this regard, the mining sector is projected to grow by 16.1 percent in 2019 and a further 15.3 percent in 2020, benefiting from strong performances mainly in gold, diamonds, chrome and coal.”
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