Derick Tsimba
In a move that should ensure success of the mining sector, Government has commenced the process of successfully laying ground for developing the mining industry through various initiatives that include liberalising the country’s investment conditions to lure foreign investment.
The country has currently started implementing economic reforms to bolster the country as a safe, favourable and competitive investment destination for would be investors from around the world.
Government also intends to promote the development of the mining sector to go hand in hand with the modernization of Zimbabwe. The country seeks to open up the path to industrialisation through exploiting its vast mineral resources such as those in the chrome and platinum group of metals through partnering foreign investors.
In his officially opening remarks at the International Chromium Development Association Conference in Victoria Falls this month, President Emmerson Mnangagwa said the country was aligning itself with the global market and best practices expectations. Government continues to reform its policies in the business operating environment through implementing policies that are transparent, consistent and predictable aimed at developing the mining sector as in the case of the amendment of the Indigenization and Economic Empowerment Act.
The new amendments to the Indigenization and Economic Empowerment Act are favourable to investors who are now free to choose and partner with locals on mutually beneficial and agreed conditions. Foreign investors should take advantage of the liberalised investment conditions that Government has extended to them which now also enables them to access and repatriate their dividends without any hindrances.
Mines and Mining Development Minister Winston Chitando recently also said Zimbabwe would soon commission two new platinum projects in May 2019 in a move that should see the country increasing the output of its platinum group of minerals.
Zimbabwe now expects platinum production to face a positive growth due to a recent investment worth billions of dollars resulted in the establishment of two platinum projects at Karo Resources in Ngezi and Great Dyke.
The country has recorded progress on the $4 billion Karo Resources project in Ngezi and the $3 billion project in Darwendale remains on course. By the end of May 2019 there should be a field visit by Karo Resources to check on the progress of the mine establishment that is currently underway. The work being done has been a result of the implementation of agreements that have been signed with the Government of Zimbabwe.
Great Dyke Investments recently received US$300 million financial boost from Russia following President Mnangagwa’s visit earlier this year. Great Dyke Investment has now reached an advanced stage with the construction of the mine, the plant and the ancillary infrastructure to be completed no later than July this year paving way for mining operations.
As Government lays down ground work for mining development, the initiatives by Ministry of Mines and Mining Development through the mining sector should create thousands of jobs in the country. Zimbabwe has the world’s second-largest platinum reserves after South Africa. The country needs to build on its platinum production output and lead the world in the production and value addition of the platinum group of minerals.
