Home News Mining Sector To Grow By 10% In 2023: Finance Minister

Mining Sector To Grow By 10% In 2023: Finance Minister

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The government has projected the growth of the mining sector 10.4% next year on the back of an increase in investments, discovery of new mineral deposits and favourable international prices.

Presenting the 2023 national budget today at the newly commissioned Parliament of Zimbabwe in Mt Hampden, Finance and Economic Development Minister Mthuli Ncube said the government continues to engage with stakeholders in order to attract more investments in the mining sector.

“In the outlook, the mining sector is expected to grow by 10.4% in 2023, underpinned by anticipated favourable international mineral prices, as well as increase in investments, especially in exploration, mine development and mechanisation.

“In the medium term to 2025, the sector is expected to remain on a growth trajectory on account of new mining activities which are currently under exploration. 

“Government in consultation with stakeholders, is working to strengthen the governance framework for the mining sector in order to improve confidence and investment in the sector,” he said

 The Finance Minister added that the Mines and Minerals Amendment Bill is expected to be finalised next year and the Gold Trade Act and the Precious Stones Trade Act are course to be amended.

“To this end, with input from Cabinet, the major milestone has been the drawing up of the Mines and Minerals Amendment Bill, which is now at the point of gazetting, paving the way for a consultative process involving Parliament .The target is to finalise the new legislation before end of 2023.

“Furthermore, work is underway for the amendments of the Gold Trade Act and the Precious Stones Trade Act to strengthen and align the Act with the Amended Mines and Minerals Act.

“Mineral exploration is key to pave way for feasibility studies, improve information on mineral potential and valuation for ease of marketing, as well as accounting for revenues. In this regard, twenty Exploration Prospecting Orders (EPOs) were granted to various companies in 2022.

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“The 2023 National Budget allocates ZWL$1.5 billion for exploration activities, using satellite imagery and drone aerial surveys, as well as, issuing EPOs to private sector,” he added.

Minister Ncube urged miners to adhere to sustainable mining for the growth and development of the mining sector.

“Miners are required to prioritise Environmental, Social and Governance (ESG) issues as an emerging issue, for communities to fully benefit from mining activities in their areas.

“This will enable investors to deliver sustainability (cultural and heritage) and contribute to the empowerment of communities, stakeholder engagement and awareness to environmental impacts,” he said.

Minister Mthuli Ncube also highlighted  that the government is working on the rescusitation of closed mines across the country and a number of projects at existing mines are expected to be implemented next year.

“ As part of the strategy to attain a US$12 billion mining industry, government aims to resuscitate closed mines which include Eureka Gold, Mashava, Golden Kopje, Elvington, Sandawana, Lynx and Kamativi. Already, Eureka Gold Mine in Guruve, Mashonaland East and Kwekwe Roasting Plant are employing new technology to process gold from the dump, as they prepare to undertake full scale mining.

“The targeted projects for expansion in 2023 are Unki Mine Processing Plant Expansion Project, Mimosa Processing Plant Expansion, Bilboes sulphide processing project, Blanket Mine Expansion project, Pickstone Peerless Mine Expansion, Zimasco Smelter Expansion and Sabi Star Lithium Mine,” he said. 

Minister Ncube  announced  a ZWL$4.2 trillion 2023 budget  which is 19.5% of the Gross Domestic Product and he is also expected to raise revenue of ZWL$3.9 trillion which is 18 percent of the GDP. ZWL$12.9 billion has been allocated to the mining sector.

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