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Sunday, May 21, 2017

Zimbabwe: Mining to Generate $3 Billion this Year

Amazing a country has cash shortages with these kinds of natural asset resources.

Maybe Zimbabwe is just playing possum until the RV? Or maybe they're staring to release all their built up infrastructure projects now that the RV is releasing.


Mining to generate $3 billion this year


May 22, 2017



Minister Walter Chidhakwa

Conrad Mwanawashe recently in VICTORIA FALLS
GOVERNMENT is estimating mining will generate $3 billion revenue this year driven by growth in chrome, which is expected to contribute about $500 million.

Last year the mining sector experienced a four percent growth in revenue to about $2 billion, eight percent growth in volumes driven by gold, platinum group metals, base metals and others.

Speaking at the Chamber of Mines of Zimbabwe annual conference last week, Mines and Mining Development Minister Walter Chidhakwa said chrome recovery has been encouraging and is expected to continue improving. “First quarter of 2017, $547,87 million of mining exports as shipments were made.

This compares to $444,6 million in the first three months of 2016 which represents a 23,2 percent increase. “The biggest shocker is chrome. Chrome was on $37 million compared to $1,3 million in the same period last year. If you look at ferrochrome we are sitting on $147 million compared to $22 million last year. That huge recovery was predicated on the recovery of the price,” said Minister Chidhakwa.

Reserve Bank of Zimbabwe deputy governor Khupukile Mlambo told the same conference that chrome actually grew by 3 201 percent up to May 12 this year from the $1,5 million recorded in the same period last year. “We’re really encouraged by the response and also by the five percent export incentive and the gold facility,” said Dr Mlambo.

Dr Mlambo said exports contribute 62 percent of liquidity of which 60 percent comes from the mining sector. The conference follows the chamber’s annual general meeting last Thursday. Outgoing president Toi Muganyi said revenue grew to $1,94 billion last year but called on Government and the sector to interrogate the imperatives that caused that growth on order to prepare for any changes in future.

Mr Muganyi said the sector should not react but respond to the mining cycle in the local environment or in the international movements of commodity prices. “Last year the mining industry experienced a growth both in terms of volume and revenue although there was a depressed commodity prices for a few minerals,” said Mr Muganyi.

Bindura Nickel Corporation executive Batirai Manhando will lead the Chamber of Mines of Zimbabwe for the next twelve months after he was confirmed at the chamber’s annual general meeting in Victoria Falls last Thursday.

Mr Manhando will be deputised by London-listed gold miner Metallon Gold’s Ken Mekani and Mimosa’s Elizabeth Nerwande while Mines and Mining Development Minister Walter Chidhakwa is honorary vice president.

Source: The Herald

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