Govt urges mining companies to set up refineries

GOVERNMENT has urged mining companies operating in the country to set up refineries to beneficiate and value add minerals.

Mining has been designated as the anchor for Zimbabwe's medium term growth prospects while value addition and beneficiation are part of the four main clusters in the Zimbabwe Agenda for Sustainable Socio-Economic Transformation (Zim-Asset). Yesterday, Mines and Mining Development Minister Walter Chidhakwa said government was determined to do everything possible to ensure that mining companies set up refinery facilities in the country.

"I want to assure foreign and local investors that it is a matter of great importance for us and we will continue to work hard to ensure that this happens," he said.

Several commodity miners with huge balance sheets extract minerals and these include SA's Impala Platinum subsidiary (Zimplats), Implats and Aquarius joint venture (Mimosa) and Anglo American unit Unki Mine.

Chidhakwa said the need to beneficiate and value add local minerals was driven by demands for maximum benefits by communities, where mining is undertaken and realisation that beneficiation and value addition was the only route to industrialisation of nations.

However, substantial investment will need to go into the establishment of key enablers such as electricity, water, rail and road infrastructure to optimise benefits from mining.

Mining in Zimbabwe constitutes 16 percent of gross domestic product, 45 percent of foreign exchange earnings and directly employees 45 000 people, but faces growth constraints due to foreign and domestic factors, including falling prices and lack of affordable capital.