By Rungano Dzikira

The mining sector is set to rebound by 4,7% in 2020, at the back of improved availability of electricity, and enhanced capacitation of the parent ministry in terms of planning, promotion of exploration, data capturing and automation, Professor Mthuli Ncube has said.

Speaking in the August House, while presenting the 2020 National Budget, Finance and Economic Development Minister, Professor Mthuli Ncube projected a 4,7% leap in the mining sector

“Realisation of the US$12 billion mining industry target by 2023 will be advanced through the 2020 Budget. The sector is projected to rebound to 4.7% on account of the expected improvements in the availability of electricity,” he said.     

“At the same time, investment agreements in platinum, gold and chrome among others which have been concluded, are expected to boost output in the sector,” he said.

The fiscal regime for the mining sector in the upcoming year is also expected to be fine-tuned and improved since the Ministry of Mines and Mining Development will be resourced to enhance exploration which is critical for expansion in the sector.

In that regard, the Finance Minister allocated ZWL$293.2 million to the mines ministry in order for it to support the Minerals Marketing Corporation of Zimbabwe through a credit guarantee scheme to provide funding and support to non-gold sector.

With regards to gold mining, Government acknowledged challenges faced in the sector which include but not limited to ring-fencing arrangements, retentions, and gold deliveries to Fidelity Printers, which it reported to be seized with.

“To curb mineral leakages Government also resolved to review and tighten the Gold Trade Act, and capacitate the Gold Mobilisation Unit,” added Prof Ncube.