eBusiness Weekly
Golden Sibanda
FOREIGN investor interest in Zimbabwe’s mining sector has grown significantly following a private sector led mission to scout for investment in Canada a fortnight ago, according to a senior Chamber of Mines executive.
The Zimbabwe Government is targeting to grow the mining industry to an $18 billion industry by 2030, by which time the Southern African country is expected to have attained middle income status.
Chamber of Mines of Zimbabwe (CoMZ) chief executive Isaac Kwesu, told Business Weekly in an interview this week that the mission to cultivate links with global mining investors had been a remarkable success and that it had exceeded their expectations.
Who attended Canada mining Indaba
More than 100 delegates drawn from financial institutions, mining firms or investors, mining and investment risk experts, mining services and equipment suppliers, local mining firms and Government officials attended the FDI crusade held in the capital hub of global investors, Canada, just over two weeks.
The Zimbabwean delegation also met with the Mining Prospectors and Developers Association of Canada apart from several other institutions with strong interest in mining investments while Canada-Africa Mining Association was also there to render their support to conference.
Mines and Mining Development Minister Winston Chitando was among the Zimbabwe delegation, which landed in the Canadian Capital, Toronto, to scout for foreign investment into Zimbabwe’s mining sector as well as potential partnerships and linkages for service and mining equipment supply.
Zimbabwean ambassador to Canada Florence Chideya also attended in support.
Mining is a strategic sector for Zimbabwe, as it generates more than 50 percent of the country’s annual export earnings and contributes between 12 percent and 16 percent of gross domestic product (GDP). President Mnangagwa’s Government has designated mining and agriculture as the anchors of Zimbabwe’s medium term growth, with Finance and Economic Planning Minister Patrick Chinamasa projecting the 2018growth rate at a conservative 4,5 percent.
Canada mining FDI trip a success
“The trip was generally successful, specifically the conference and sub-sector meetings with investors.” Mr Kwesu.
Mr Kwesu said local mining houses had match up meetings arranged for them, which gave them an opportunity to canvas for investment and state the funding needs.
“The visit was private sector driven, which made it easy for many foreign investors and other interested delegates to attend. It was a sign really that investors are strongly interested in Zimbabwe.
Minister Chitando reportedly gave an incisive presentation on the limitless investment opportunities in Zimbabwe’s mining sector, as did the country’s surveyor general who chronicled the countries geology, opportunities in Greenfield projects and what is needed to exploit them.
Separate arrangements had to be made for Diasporans with interest in mining and had hoped to meet the visiting delegation during the mining conference in Canada, after they could not be accommodated at the mining investment Indaba venue due to limited space.
The visit to Canada was meant to lure FDI into the country’s mining sector from one of the world’s most attractive mining regions, continuing a charm offensive for capital inflows into the economy.
The Southern African country has held the mining Indaba (Conference) in Canada between June 6 and 7 amid a frenzied interest in the mining industry and at a time the Government is discussing with an unidentified potential investor with about $5 billion to inject funding into various mining projects.
Canada leads the pack globally on mining
Canada has been ranked the world’s most attractive region for mining investment in the latest annual mining survey conducted by the Fraser Institute.
The North American country leapfrogged Australia to become the world’s leading mining investment destination, based on the combined rankings of all its provinces and territories.
The survey ranked Nevada, Ireland and Western Australia in the top five regions for attractiveness of mining investment. Quebec, Ontario, Chile, Arizona and Alaska completed the list of highest ranking jurisdictions.
Interest in Zimbabwe grows
Billions of dollars in similar foreign investment commitments have already been received by the government from across the globe and indications are that the figure may have topped $20 billion. Official data indicates that Zimbabwe is actively mining only 10 out of a possible 60 mineral occurrences in the country, which underlines the huge upside potential of the country’s mining sector.
Key minerals currently being mined include gold, platinum, diamonds, nickel coal, copper, chrome and new kid on the block, lithium.
Already, some reputable mining firms already operating in Zimbabwe include Impala Platinum, which owns Zimplats, Anglo-American’s Unki Mines, Aquarius and Sibanye Stillwater, which jointly own Mimosa Mining Company, Metallon Corporation’s Mazowe, Redwing and Shamva mines and Rio Tinto, which has 25 percent interest in Murowa Diamonds.
There has been overwhelming interest from global investors in Zimbabwe since the new Government took over in November last year and subsequently organized mining conference in Harare, Johannesburg and London to woo FDI into mining.
Minister Chitando earlier said that in recent years, Zimbabwe had attracted little new investment into actual mining and mineral exploration due to perceived country risk, policy inconsistencies and unpredictability, but pledged Government support in creating an environment conducive for business.
Government has designated the mining industry as the anchor of Zimbabwe’s economic growth in the short to medium term, scrapping the indigenisation laws, seen as detrimental to attracting FDI into mining, from applying to the extractive sector, except diamond and platinum, to woo FDI into mining. But even leaving the two minerals was only deliberate and temporary as this was meant to allow the Government to develop a beneficiation policy and thereafter repeal the law on these minerals.
