eBusiness Weekly
Martin Kadzere
Zimbabwe should allow investors to apply for mining claims owned by non-operating mines so as to speed up their resuscitation, according to a latest Government report.
This comes amid revelations almost 70 percent of the mines in Midlands Province, the country’s mining hub, are not operational and require huge funding to re-open.
A report, presented to stakeholders during Business Weekly Devolution Conference held in Gweru last week by July Moyo, the Minister for Local Government, Public Works and National Housing, revealed the majority of mines in the province were closed and Government must encourage interested companies to apply for the claims.
This, according to analysts would boost the appetite of investors wanting to start greenfield projects. Naturally, some investors are reluctant to inject capital into failed projects because of some heavy legacy issues such as debts associated with such entities.
“Most mines in the province are not operational (and this has) affected employment, foreign currency generation, GDP (gross domestic product) growth and tax revenues,” the report, titled “Midlands Economic Review and Analysis” said.
The Midlands Province is home to two of the three major platinum producers, Mimosa and Unki Mines. It also hosts a third platinum potential, Todal. Other mines include gold, chrome, coal, diamonds, chrome, iron, asbestos, nickel and diamonds.
An operational summary of the mines shows that gold mines in the province are operating at an average 28 percent, limestone at 50 percent, silica and chrome at 20 percent
There is no extraction of many other minerals, with iron ore and asbestos the most notable ones following the closure of Ziscosteel and Shabanie and Gaths Mines.
The report also highlights economic opportunities in the Midlands as Government forges ahead with the devolution agenda. It said most of the mining assets have an evaluated resource and infrastructure, which should attract investors.
“The province must work on low hangings fruits in the mining,” the report said, mentioning projects such as the nickel Hunters Road projects owned by listed Bindura Nickel Corporation, Golden Quarry, Sengwa in Gokwe, Jena Gold mine and BIMCO.
BNC indicated it will consider developing its Hunters Road Project when the price of the metal “becomes right”. Hunter’s Road is at the pre-development stage and when operational, it will be mined as open pit. The revival of BIMCO, which holds almost 100 percent of Zimbabwe’s estimated 30 billion tonnes of iron ore reserves, depends on the resuscitation of the Zimbabwe Iron and Steel Company.
Before the closure of ZISCO more than a decade ago, BIMCO was exploiting the Ripple Creek mine, which provided iron ore and limestone as feeds to ZISCO steelworks.
Other major economic activities in the Midlands are cement, glass container and beverages manufacturing, steel processing, crude tar and industrial chemicals, cotton farming and ginning, cattle ranching, maize and wheat production, explosive manufacturing, power generation, metals foundries and dairy and mild processing.
The province accounts for 52 percent of national cotton production, 25 percent of dairy production, 100 percent of ammonium nitrate fertiliser, 85 percent of ferrochrome output and 100 percent of wire rope manufacturing.
Forty two percent of platinum group metals, 30 percent of gold production and 40 percent of diamond production are produced in the Midlands Province at Murowa Diamond Mine.
