News / Local
Mineral revenue slumps 29%
03 Nov 2023 at 01:44hrs | Views
In the first half of this year, Zimbabwe's mineral revenue experienced a 29% decline, amounting to US$2.6 billion, owing to several challenges, including falling commodity prices, foreign currency shortages, a high-cost structure, and capital constraints. This was disclosed by Thomas Gono, the President of the Chamber of Mines of Zimbabwe, during the Mining Industry Suppliers Forum held in Bulawayo.
According to Gono, the performance of the mining sector in the first half of 2023 varied. Platinum group metals (PGMs), diamonds, lithium, and coal recorded increased output by 5%, 43%, 100%, and 81%, respectively. In contrast, gold and ferrochrome saw output decline by 12% and 17%, respectively, compared to the same period the previous year.
Despite these challenges, the medium to long-term prospects for the mining industry appear promising, with most minerals expected to benefit from ongoing expansion projects across the sector. The Chamber continues to engage with authorities to establish a low-cost structure that would restore the viability of mining projects, particularly during periods of depressed commodity prices.
Gono emphasized the vital role of the supplier sector in the mining industry value chain, citing the 2022 State of the Mining Industry Survey, which indicated that approximately US$2 billion of the US$5.6 billion revenue generated by the mining industry in 2022 was spent on suppliers. These suppliers receive inputs from various sectors, such as local manufacturing, electric power, iron and steel products, distribution, non-electrical machinery and equipment, and more.
He further highlighted the importance of addressing issues affecting mining industry suppliers and recognized the significance of the mining sector in Zimbabwe's economy. Currently, the mining industry accounts for over 80% of total national exports, contributes 13.5% to the GDP, and plays a substantial role in tax revenues, foreign direct investment, and job creation.
Wilbert Manyika, a representative from Mimosa Mining Company, stressed the need for funding in the retooling and capacitation of the mining sector, as well as a streamlined process for permitting and licensing within the mining industry, including extensive consultation on statutory instruments before implementation.
According to Gono, the performance of the mining sector in the first half of 2023 varied. Platinum group metals (PGMs), diamonds, lithium, and coal recorded increased output by 5%, 43%, 100%, and 81%, respectively. In contrast, gold and ferrochrome saw output decline by 12% and 17%, respectively, compared to the same period the previous year.
Despite these challenges, the medium to long-term prospects for the mining industry appear promising, with most minerals expected to benefit from ongoing expansion projects across the sector. The Chamber continues to engage with authorities to establish a low-cost structure that would restore the viability of mining projects, particularly during periods of depressed commodity prices.
He further highlighted the importance of addressing issues affecting mining industry suppliers and recognized the significance of the mining sector in Zimbabwe's economy. Currently, the mining industry accounts for over 80% of total national exports, contributes 13.5% to the GDP, and plays a substantial role in tax revenues, foreign direct investment, and job creation.
Wilbert Manyika, a representative from Mimosa Mining Company, stressed the need for funding in the retooling and capacitation of the mining sector, as well as a streamlined process for permitting and licensing within the mining industry, including extensive consultation on statutory instruments before implementation.
Source - newsday
