Zimbabwe’s mining sector is set to receive a substantial boost with planned capital investments totaling $455.8 million. This investment aims to increase production capacities across various minerals despite a challenging operating environment, according to the Chamber of Mines of Zimbabwe’s (CoMZ) 2023 report.
Over the past three years, mining companies have already invested more than $1.5 billion in capital projects. This significant spending showcases the sector’s resilience and determination to thrive.
The 2023 CoMZ report highlights heavy investments in the platinum group metals, gold, and lithium sectors. Blanket Mine, for instance, is investing $12.7 million in tailings storage facilities. Dallaglio is spending $25 million to transition to underground mining, which is expected to increase production by 7%.
Shamva Gold Mine has allocated $7 million for exploration, while Pan African Mining is investing $13 million in exploration and shaft deepening. Other notable investments include Bulawayo Mining Company’s $7 million for exploration and shaft sinking, Golden Reef Mining’s $700,000 for heap leaching and carbon in pulp processes, and Falcon Gold’s $400,000 for exploration and development.
Zimasco has spent $6.8 million over the past two years on upgrading furnaces and developing mines. This investment is expected to increase production capacity by 120% by 2025. Jinyi has committed $7.1 million to power plant transport, furnaces, and a sintering plant, aiming for a 20% production increase by 2024.
Zimplats has invested over $570 million in capital projects, including replacement mines, expansion projects, and a solar plant. Mimosa Mining Company is allocating $200 million to its North Hill project and tailings storage facility.
In the lithium sector, Bikita Lithium Minerals has invested over $300 million in exploration and expansion. Kamativi Mining Company has committed $249 million to its operations, including a spodumene mining and processing flotation plant.
These investments highlight the mining sector’s resilience and commitment to growth, despite operational challenges. The CoMZ’s first quarter report for the current year anticipates output recovery in most key minerals, aiming to meet 2024 production targets.
However, the report also notes that risks to the mining sector outlook remain significant. Mining companies continue to face challenges such as fragile power supply, foreign currency shortages, high operating costs, and capital constraints.
The planned investments are crucial for the sector’s expansion and development. By targeting key areas like platinum, gold, and lithium, these projects aim to bolster Zimbabwe’s mining output and economic stability.
Despite the challenges, the sector’s commitment to substantial capital investment indicates a positive outlook for Zimbabwe’s mining industry. With continued efforts and strategic investments, the industry aims to overcome obstacles and achieve its production goals.
Source: Newsday
