Govt on course to attain US$12 billion mining industry by 2023

By ZBC Reporters

ECONOMIC analysts have praised government for creating an enabling mining environment through incentives which have tripled gold production in the first month of the year.

The mining sector is one of the economy’s top productive sectors and best contributors to the Gross Domestic Product.

It is in this context that government introduced mining incentives for gold and other precious metals that have played a significant role in increasing productivity and putting a fatal blow to the scourge of smuggling which had threatened the sector.

Analysts are optimistic that with production incentives in place, the economy is well on course to perform according to its potential.

“The significant rise in gold deliveries to Fidelity Printers and Refiners is a direct result of policy clarity by the Second Republic and it is commendable from an economic standpoint,” said development economist, Dr Prosper Chitambara.

“We are very much excited about the increased performance of the yellow metal on account of incentives which have proved that they can work wonders and therefore, they should be maintained for greater economy benefits,” added another developmental economist, Mr Paison Tazvivinga.

With the country’s mining sector rallying towards a US$12 billion industry by 2023, economists are convinced that with production incentives in place, the milestone is around the corner.

Speaking on the same matter, Mines and Mining Development Deputy Minister, Dr Polite Kambamura revealed that government is halfway through to the set targets, further chronicling how the gold sector in general has blossomed over the last few years.

“Gold deliveries to the Fidelity Printers and Refiners topped 30 tonnes in 2021 on the back of sustained efforts to incentivise the industry. The sector is going to be instrumental in driving growth and at the moment, the industry is now valued at US$5.2 billion,” he said.

Dr Kambamura noted that the platinum group of minerals are set to catapult industry growth to accelerate the attainment of the set target.

“The PGMs generated about US$2.4 billion against a set target of US$3 billion and there is no doubt that we will outperform the sector’s target. We expect Great Dyke Investments to go online soon and further development of Bravura and Karo Resources to add to the mining sector’s continued growth,” he added.

The mining industry is generating about three thirds of the country’s total forex receipts and 2021 figures also proved that the industry will be key in the march towards Vision 2030.