Zim’s mining growth forecast revised to 9,5 percent

By Stanley James, Business Editor

FAVOURABLE mineral commodity global prices have seen Zimbabwe revising mining sector growth to 9,5 percent from 6,5 percent as the nation gears for a US$12 billion mining industry target next year.

Despite global shocks, resource commodities have since this year continued to fetch high returns on the international market.

For Zimbabwe, such a trend is creating growth opportunities to the mining industry in terms of viability.

“The growth forecast is achievable given the investments that are taking shape since the beginning of this year. As you can see, the lithium sector is dominating while gold earnings are on the rise, with platinum group of metals also contributing significantly in terms of production volumes. So, overally, we are on the right track,” said
Dr Isaac Kwesu, Chamber of Mines chief executive officer.

However, there are some constraints that need addressing for continued growth of the sector to be sustained.

“The exchange rate distortions are giving us a challenge, coupled with energy constraints and the high tariffs that are mainly passed to us in forex as we are an exporter. Furthermore, global shocks and local inflationary pressures are also making it difficult for the sector to make long term plans that are sustainable in terms of productivity,” he said.

The rise in global resource prices is being attributed to huge demand for gold as investors seek to hedge against the shocks, with a rise in production of cars further increasing demand for platinum while growth in battery manufacturing projects has fuelled a rise in demand for lithium.