News from the Mining Sector

The Chamber of Mines recently held its Annual General Meeting. The Chamber President, Winston Chitando, who is also the CEO of Mimosa Mining Co, one of the country’s three major platinum producers, criticised unfriendly Government policies, including substantial increases in mining fees and the indigenisation regulations, as having stifled growth in the mining sector. However he also said that there is an opportunity for the development of a world-class mineral development policy that will guide the formulation of legislation, fiscal measures and other interventions to help the continued recovery of the mining sector. The mining sector will be making submissions to the Government on this.

The Minister of Mines and Mining Development, Hon Obert Mpofu, told the meeting that amendments to the existing Mines and Minerals Act will shortly be published. These, he said, will be designed to promote investment and sustainable development in the sector.

The Chamber of Mines has also announced the formation of a sub-sector association, the Platinum Producers’ Association (PPA), which will be specifically looking at the question of beneficiation of platinum minerals in Zimbabwe, to add value inside the country. The question of a platinum refinery being established in Zimbabwe has been raised on a number of occasions but current production levels will have to be increased to make such a project viable. There is also a clear reluctance on the part of foreign investors in the platinum sector, such as Impala Platinum, to consider investing in such a project until outstanding indigenisation issues have been finally resolved.

The demand for beneficiation inside the country is in line with a current international trend of resource nationalism, with many countries, Indonesia being one of the latest, claiming that mineral resources are national assets which should provide maximum benefit to domestic economies through beneficiation, taxation, increased local ownership or similar means. Resource nationalism has popular appeal for populist politicians.

Hwange Colliery expects to earn US$ 5 million per month from the export of coking coal and intends to use contracted port terminal space in Maputo for these exports. The National Railways of Zimbabwe is now reported to be operating a daily train to Maputo to carry the coking coal from Hwange to the port.

Government has announced that three joint venture companies between foreign and local investors have been shortlisted to resume mining operations at the Kamativi tin and tanatalite mine in north-western Zimbabwe. Kamativi closed in the mid-1990s as a result of depressed world prices for tin.