Mining can generate $18bn annually

Mining can generate $18bn annually
Published: 28 February 2018 (631 Views)
ZIMBABWE'S mining sector has the capacity to generate $18 billion per annum from its total 800 mines, according to a mining consultancy firm.

In a brief at the two day Zimbabwe Mining Investment Conference that kick started yesterday in Harare, the Mining Report said at present the mining sector was only churning out $2 billion annually.

"Zimbabwe offers a truly once-in-a lifetime opportunity. The country's 800 mines have capacity to earn $18 billion per annum, but were only turning out about $2 billion annually since 2009. This represents about a tenth of the sector's full potential and translates to an incredible opportunity for investors, and the government is fully committed to creating an enabling environment for investors," Mining Report said.

Mining Report is a United Kingdom-based consultancy firm that specialises in premier mining investment forums and conferences, including government consulting services and investor presentations. It helped organise the Zimbabwe Mining Investment Conference.

The conference was attended by several investors from within Africa and outside the continent as the government is aggressively trying to lure the foreign capital that these companies represent.

This comes as the government has identified the mining as a critical growth sector.

The mining sector is hamstrung by legislation from its potential revenue generation, according to Mines and Mining Development permanent secretary Munesu Munodawafa.

"I think one of the biggest things that I have seen in terms of trying to help potential investors is the whole issue of mining is title management. We have used an old system, manual, there are unnecessary disputes, delays in terms of processing the paperwork that comes to us. I know it because I have had to see who look quite frustrated," he said at yesterday's meeting.

"There have been delays in terms of approvals and we need to acknowledge this in order to find the way forward together so that is one of the challenges that we have faced. A lot of the challenges that we have faced are internal and it is good because we can address from within."

He said in terms of opportunities, the government noted that there were adequate resources that were available which investors could benefit from.

One of the investment companies, Liberation Mining, which came in the second quarter of last year and started mining operations last month, echoed some of these challenges.

"We see some changes to a better Zimbabwe now but there is still a long way to go in making regulatory frameworks in record time everywhere, in development. We mine coal and the main challenges are logistics (such as railways). We are targeting export markets and therefore we need to tackle the issue of railways which we are already working on," Liberation Mining chief executive officer Viktor Tskhovrebov said.

Investors have also been sceptical about coming into the country due to the ongoing foreign currency challenges the country is experiencing.

Central bank deputy governor Kupukile Mlambo assured investors present at the conference that they would make it easier for them to get their money out.

"Money should be able to walk in and out and that is something the Reserve Bank is working on ensuring will happen," he said.

Mining is one of the country's largest foreign currency earners. A state of the mining sector report released last year showed that the sector requires nearly $400 million in 2018 to sustain operations on the back of an uptick in capacity utilisation.

- newsday

 0

You May Like These Videos

Comments

There are no comments.

Latest stories

Lupane hospital turns to crowd-funding

by Staff reporter | 22 September 2018 | 60 Views

Cheating exposes affair with minor

by Staff reporter | 22 September 2018 | 97 Views

Married women are jealous of Bev

by Staff reporter | 22 September 2018 | 91 Views

One more arrested over Aug 1 violence

by Staff reporter | 22 September 2018 | 78 Views

Mnangagwa and Chamisa MPs fume over deferred vehicles

by Staff reporter | 22 September 2018 | 95 Views

Mugabe's party has not disbanded

by Staff reporter | 22 September 2018 | 54 Views

Kombi accident death toll rises to 6

by Staff reporter | 22 September 2018 | 55 Views

Mthuli Ncube hints on currency reforms

by Staff reporter | 22 September 2018 | 72 Views

Church slams Zimbabwe gay teacher

by Staff reporter | 22 September 2018 | 56 Views

Dembare reach second round as FC Platinum, Ngezi bow out

by Staff reporter | 22 September 2018 | 68 Views

Man loses 'Toyota Raum' to robbers

by Simbarashe Sithole | 21 September 2018 | 245 Views

International media stampede to interview Mnangagwa

by Staff Reporter | 21 September 2018 | 323 Views

Brutalising vendors must stop

by Jacob Mafume, MDC National Spokesperson | 21 September 2018 | 231 Views

I doubt if Dabengwa really endorsed Mnangagwa - Mthwakazi activist

by Stephen Jakes | 21 September 2018 | 213 Views

Marc Cayeux gives everyone hope after top ten finish in Cape Town

by Agencies | 21 September 2018 | 134 Views

President Mnangagwa debuts at UNGA

by Bevan Musoko | 21 September 2018 | 195 Views

BREAKING: Harare - Johannesburg Intercape bus in accident, 10 people dead

by Staff reporter | 21 September 2018 | 359 Views

Stop unnecessary traveling to cholera affected areas - MIHR

by Stephen Jakes | 21 September 2018 | 146 Views

We need Mthwakazi restoration soon

by Stephen Jakes | 21 September 2018 | 140 Views

Rural development agenda should be on the priority list

by Stephen Jakes | 21 September 2018 | 135 Views

IMF offers to help Zimbabwe clear arrears

by Staff reporter | 21 September 2018 | 261 Views

Mugabe's party rejoins Mnangagwa's Zanu-PF

by Staff reporter | 21 September 2018 | 261 Views

Streak seeks ZC liquidation

by Staff reporter | 21 September 2018 | 175 Views

'Chamisa must not waste time fighting Mnangagwa'

by Staff reporter | 21 September 2018 | 284 Views

Chipanga appeal thrown out

by Staff reporter | 21 September 2018 | 198 Views

New minister cracks the whip

by Staff reporter | 21 September 2018 | 202 Views

Deal decisively with Parly delinquents

by Zvamaida Murwira | 21 September 2018 | 173 Views

Mthuli Ncube faces tough choices

by Lovemore Chikova | 21 September 2018 | 198 Views

Currency reform answer to Zimbabwe's economic woes

by Bongani Ngwenya | 21 September 2018 | 181 Views

Dabengwa ditches Chamisa, endorses Mnangagwa?

by Staff reporter | 21 September 2018 | 179 Views

Sibusiso Moyo alive & well

by Staff reporter | 21 September 2018 | 168 Views

'Mugabe University not a priority'

by Staff reporter | 21 September 2018 | 153 Views

Chamisa battles open rebellion

by Staff reporter | 21 September 2018 | 181 Views

Prophet up for pregnant woman rape

by Staff reporter | 21 September 2018 | 108 Views

Bulawayo pins hopes on devolution

by Staff reporter | 21 September 2018 | 102 Views

Nust shut down

by Staff reporter | 21 September 2018 | 165 Views

Zimbabweans want US or Zim dollar only, not SA Rand

by Staff reporter | 21 September 2018 | 158 Views

Chamisa's MDC Alliance starts merging into single party

by Staff reporter | 21 September 2018 | 107 Views