Business / Economy
Mining sector key to Zim economy: Zimcodd
16 Mar 2022 at 07:30hrs | Views
The mining sector is a key sector for Zimbabwe as it contributes about 60% to annual export receipts and at least 14% to Gross Domestic Product (GDP).
This was revealed by the Zimbabwe Coalition for Debt and Development (Zimcodd) in its latest report.
"The gold sub-sector also provides direct employment and income for artisanal miners who are predominantly youth. Gold is a safe haven asset during the time of uncertainty, a characteristic it derives from its long history of use as a currency and a store of value," reads the report.
"At US$1.6 billion, gold exports constituted 27% of total exports in 2021. The value of other minerals like nickel and Platinum Group Metals (PGMs) also fetched high global prices in 2021 thanks to increased global business activity from a severe COVID-19 induced recession experienced in 2020."
Zimcodd noted that 74% stake of Bikita Minerals in Masvingo Province would be acquired by a Chinese giant for US$180 million.
"This follows another acquisition of Prospect Resources lithium mine for US$422 million by Chinese Huayou in Dec 2021. Gold deliveries to FPR in Jan 2022 were 2.868t, nearly 3-fold the 0.997t achieved in the comparable month in 2021," Zimcodd said.
"Small-scale miners were the largest contributors delivering 2.053 tonnes to FPR. Zimplats is investing US$521 million to expand smelter capacity, a key milestone in local PGM beneficiation. The first platinum matte is scheduled for January 2024 while the commissioning of the acid plant is set for August 2024. Russia-Ukraine war and ensuing sanctions send mineral commodities to a rally due to fears of severe supply shortages."
This was revealed by the Zimbabwe Coalition for Debt and Development (Zimcodd) in its latest report.
"The gold sub-sector also provides direct employment and income for artisanal miners who are predominantly youth. Gold is a safe haven asset during the time of uncertainty, a characteristic it derives from its long history of use as a currency and a store of value," reads the report.
Zimcodd noted that 74% stake of Bikita Minerals in Masvingo Province would be acquired by a Chinese giant for US$180 million.
"This follows another acquisition of Prospect Resources lithium mine for US$422 million by Chinese Huayou in Dec 2021. Gold deliveries to FPR in Jan 2022 were 2.868t, nearly 3-fold the 0.997t achieved in the comparable month in 2021," Zimcodd said.
"Small-scale miners were the largest contributors delivering 2.053 tonnes to FPR. Zimplats is investing US$521 million to expand smelter capacity, a key milestone in local PGM beneficiation. The first platinum matte is scheduled for January 2024 while the commissioning of the acid plant is set for August 2024. Russia-Ukraine war and ensuing sanctions send mineral commodities to a rally due to fears of severe supply shortages."
Source - Byo24News
