COUNTRY IN FOCUS
strides in developing a lithium and tungsten project in the
country. The Bravura Consortium has indicated that they will
spend more than USD50-million to explore for, and mine,
platinum. The first platinum smelter started construction in May
2019, heeding the call by African nations to increase in-country
beneficiation. The USD62-million smelter was constructed at
Anglo American Platinum’s Unki Mine and is being undertaken
by the South African company Thos Begbie. China's Tsingshan
Holding Group has also expanded its plans for a steel plant in
Zimbabwe to include a power plant and a lithium concession.
Old historic mines are unstable and not safe for the illegal miners.
Platinum is a mainstay in the Zimbabwean economy. In picture is
Implats and Sibanye’s Mimosa platinum mine on the Great Dyke of
Zimbabwe.
In bid to attract investors, Zimbabwean Finance Minister
Mthuli Ncube announced in March that the rule requiring
local investors to control platinum and diamond mines will
be scrapped and foreigners will be allowed to own 100%. This
announcement followed close on the heels of a notification that
the Reserve Bank of Zimbabwe (RBZ) has revised the monetary
policy that the Export Credit Incentive (ECI) programme for
Zimbabwean gold producers will be withdrawn in February.
At the same time Zimbabwe’s government indicated that it
will review mining legislation to improve safety standards in
the mining industry. The Indian government in December
2018 accorded an ex-post ratification of a bi-lateral agreement
between India and Zimbabwe for collaboration in mining,
geology and mineral resources.
Gold mining companies have had mixed success in Zimbabwe,
Caledonia Mining’s Blanket mine continue with their shaft
sinking operation and indicated ‘robust’ results in 2018. Metallon
Corporation, on the other hand, halted output at three of its
four mines in Zimbabwe because of mounting debts, and it is
reported that the owner is considering selling the operation.
RioZim also halted production at its three gold mines after
Zimbabwe’s central bank failed to provide foreign currency the
company needs to keep operating.
Russian state-controlled miner Alrosa indicated that they will
assess the quality of Zimbabwe's diamond reserves over the
course of six months, but would only start mining if it can
take a majority stake in such a project. They will be joined by
Chinese-owned Anjin to partner with the state-run mining
company of Zimbabwe in the exploration and development
of diamond prospects.
Zimbabwe is richly endowed with mineral resources and the
infrastructure is still in a fair enough condition to do business,
however, the risk is moderate to high, and the country needs to
address a number of pressing issues.
Zimbabwe has good deposits of high grade, shallow deposits. In picture is African Chrome Fields’ mine close to the Great Dyke, that bisects Zimbabwe.
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African Mining Publication
African Mining
African Mining October 2019
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