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Mining sector key to Zim economy: Zimcodd

by Stephen Jakes
16 Mar 2022 at 11:30hrs | 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."

Source - Byo24News