A State of the Mining Industry Survey Report released by the Chamber of Mines this week has raised concerns over the sector’s contribution to Zimbabwe’s economic development.
According to the report, submissions from Parliament, Government and community representatives indicate that they believe the mining sector is not contributing enough to national economic development, specifically in taxation, local content, mineral beneficiation, community development and sustainable employment.
“They also raised concerns about lack of transparency in the mining industry, citing issues such as under-invoicing, side marketing, and tax evasion,” the report said.
The report said this was so despite national initiatives on local content development and beneficiation.
“Suppliers of mining companies reported that they are facing challenges in servicing the mining industry, including the following: preference for foreign products, poor payment turnaround, poor stock management by some mining companies,” the report said.
Most mining executives, however, indicated that they were engaged in local content development and local empowerment initiatives.
“These include the following: support for small-scale and local miners, such as milling services for small-scale miners, tributing of claims to small-scale miners, awarding contracts to local miners and tributaries and funding local mining ventures for capitalization,” the report said.
“All mining companies (100%) indicated that they are promoting local employment and skills development at their operations: approximately 95% of mining industry employees are Zimbabweans, deliberate hiring from local communities, skills transfer and training programmes and graduate trainees and apprenticeship programs.”
The miners cited the following as undermining local content in the industry: poor-quality products, long delivery timelines, high costs, limited credit facilities, and limited after-sales support.
Government, Parliament and Civic were also of the view that the levels of beneficiation in the country were still low and there was scope for further beneficiation, specifically in the following mineral subsectors: lithium, platinum, diamonds and chrome.
“Respondent mining executives indicated that they are supportive of the Government’s thrust of full beneficiation of mineral resources in-country.
“Respondents from traditional minerals, including gold, iron and steel, and coal, indicated that they are almost fully beneficiating and producing final products for use in further downstream/manufacturing.
“Meanwhile, respondents from new and other emerging minerals such as PGMs and Lithium reported that they have achieved key beneficiation milestones in line with agreed roadmaps with the Government.”
