News / National
Mining sector grows about 10%
25 Jul 2023 at 17:13hrs | Views
The Zimbabwe Coalition on Debt and Development has said the latest ZimStat statistics show that the mining sector grew by 10.5% in 2022, up from 5.9% in 2021.
It said in terms of value-added, the sector was ranked second at 13.2% just after wholesale and retail trade (18.7%).
"This growth was driven by the mining of metal ores which accounted for 78.1% of mining value added. These include gold (18%), platinum group of minerals (PGMs) (10%), and lithium (236%). Minerals remain the top export receipt generator, with seven (7) key minerals contributing about 72% in May 2023 alone as follows: gold (24%), nickel mattes (18.3%), diamonds (10.1%), nickel ores (8.8%), ferrochromium (6.4%), coke (2.7%), and platinum (1.4%)," Zimcodd.
"In the first five (5) months of 2023, these 7 key minerals have contributed an average of 71.2% to total exports. This translates to about US$1.87 billion of the US$2.59 billion reported by ZimStat for the Jan-May 2023 period. Global prices of many mineral commodities are largely benefiting from the supply uncertainties posed by the Russia-Ukraine war and increasing resource nationalism."
Zimcodd said also, minerals and metals used in clean energy technologies like PGMs, lithium, nickel and rare earths are witnessing increased global demand due to the ongoing seismic shift toward green energy particularly in advanced nations.
"However, Zimbabweans are not fully benefiting from these mineral resources due to increased natural resource misgovernance caused by: Gaps in anti-corruption legal and judicial systems (weak regulatory & institutional framework, archaic mining legislation, lack of implementation of existing laws). Discretionary powers and high politicization of mining decision-making. Inadequacy and discrepancies in corporate due diligence procedures. Opacity in beneficial ownership. Poor mineral trade and marketing. Lack of due diligence and traceability of minerals. Porous ports of entry," it said.
Zimcodd noted that the local unit tumbled by 88.1% and 88.6% in the official and alternative markets respectively.
"Consequently, inflation wreaked havoc plunging Zimbabwe into hyperinflation as prices mounted by 74.5% in June alone. The increased ZWL liquidity build-up since the start of 2023 emanating from QFOs by RBZ and elevated fiscal spending was the major driver of ZWL deterioration. However, the measures instituted to tame instability seem to be working as the exchange rate decline has moderated end of June to early July. It remains to be seen if authorities will be able to maintain policy consistency by adhering to monetary & fiscal discipline as the nation gears for 2023 harmonized elections slated for August 2023," it said.
It said in terms of value-added, the sector was ranked second at 13.2% just after wholesale and retail trade (18.7%).
"This growth was driven by the mining of metal ores which accounted for 78.1% of mining value added. These include gold (18%), platinum group of minerals (PGMs) (10%), and lithium (236%). Minerals remain the top export receipt generator, with seven (7) key minerals contributing about 72% in May 2023 alone as follows: gold (24%), nickel mattes (18.3%), diamonds (10.1%), nickel ores (8.8%), ferrochromium (6.4%), coke (2.7%), and platinum (1.4%)," Zimcodd.
"In the first five (5) months of 2023, these 7 key minerals have contributed an average of 71.2% to total exports. This translates to about US$1.87 billion of the US$2.59 billion reported by ZimStat for the Jan-May 2023 period. Global prices of many mineral commodities are largely benefiting from the supply uncertainties posed by the Russia-Ukraine war and increasing resource nationalism."
"However, Zimbabweans are not fully benefiting from these mineral resources due to increased natural resource misgovernance caused by: Gaps in anti-corruption legal and judicial systems (weak regulatory & institutional framework, archaic mining legislation, lack of implementation of existing laws). Discretionary powers and high politicization of mining decision-making. Inadequacy and discrepancies in corporate due diligence procedures. Opacity in beneficial ownership. Poor mineral trade and marketing. Lack of due diligence and traceability of minerals. Porous ports of entry," it said.
Zimcodd noted that the local unit tumbled by 88.1% and 88.6% in the official and alternative markets respectively.
"Consequently, inflation wreaked havoc plunging Zimbabwe into hyperinflation as prices mounted by 74.5% in June alone. The increased ZWL liquidity build-up since the start of 2023 emanating from QFOs by RBZ and elevated fiscal spending was the major driver of ZWL deterioration. However, the measures instituted to tame instability seem to be working as the exchange rate decline has moderated end of June to early July. It remains to be seen if authorities will be able to maintain policy consistency by adhering to monetary & fiscal discipline as the nation gears for 2023 harmonized elections slated for August 2023," it said.
Source - Byo24News
