Zimbabwe is proceeding with plans to ensure that the minerals mined in-country are also processed in-country, instead of in South Africa or Europe, which is the current norm.

As part of this process, Zimbabwe levied a 15% tax on rough diamonds and platinum concentrate exports in January to encourage miners to establish a local platinum refinery and diamond-polishing centres.

Zimbabwe is the world’s second-largest platinum producer and the fourth-largest diamond producer.

Zimbabwe Consulate commercial official Angelica Katuruza tells Mining Weekly that Zimbabwe wants to ensure that its citizens are the main beneficiaries of the country’s mineral wealth.

She highlights that the mining sector is currently the country’s biggest export earner and cites a government report, compiled in 2010, which stated that 65% of the country’s exports hailed from the mining industry.

Katuruza adds that Zimbabwe would like to grow from that and ensure that the minerals – and not only the proceeds of getting them out – benefit the country, which will be achieved by developing refineries and processing plants.

She cites platinum as an example of a sector that could lead to job creation and economic growth through the establishment of in-country capacity.

Katuruza further mentions that government is committed to the development of infrastructure needed for a successful mining industry, adding that energy distribution in the sector is especially important to government.

“With this in mind, we have established an independent power producer procurement programme to expand the country’s energy mix and boost the national power grid. Six independent producers are already being developed and land has been set aside for solar energy farms.”

Indigenisation
Zimbabwe remains resolute in its endeavour to ensure that indigenous citizens benefit from all mining operations in the country.

The contentious Indigenisation and Economic Empowerment Act, which seems to have caused a decline in foreign investment in the mining industry, aims to transfer the country’s mineral wealth to indigenous Zimbabweans. The Act stipulates that indigenous Zimbabweans must own 51% of mining operations in the country.

“Basically, what the Act states is that the natural resources that are mined in Zimbabwe are finite resources that belong to indigenous Zimbabweans; this entitles them to a 51% share of the business venture, while the foreign investor contributes 49% of the operation’s value, comprising the equipment, machinery and capital,” Katuruza explains.

She adds that the 51% is allocated to different local stakeholders – the mine’s employees own 10%, a community share scheme receives 15%, and the remaining 31% is divided among other local stakeholders.

Meanwhile, Katuruza tells Mining Weekly that the indigenisation process is not set in stone and can be negotiated to suit all stakeholders’ interests. For instance, according to a June report by Mining Weekly, Katuruza told a KPMG Zimbabwe Country Focus Seminar that the 51% local ownership rule is not enforced in all cases.

She highlighted that there were exceptions, for example, if a foreign company beneficiated the raw materials prior to exporting them, this entitled the company to full ownership of the business.

The exceptions also extend to companies that explore mineral resources through the establishment of new technologies, as well as to companies that impart new skills that benefit the Zimbabwe economy.

Further, should a company have other social and economic objectives, the Indigenisation Minister can consider its suggestions and decide whether the company should be exempted from the 51% indigenisation policy.

Katuruza asserts that the policy is the best thing to have happened to the development and growth of Zimbabwe, as it has prompted previously disadvantaged Zimbabweans to start their own business ventures.

Zimbabwe’s Wealth
According to the Zimbabwe Department of Mines, the country boasts more than 4 000 recorded gold deposits located in the country’s ancient artisanal sites in the Limpopo Mobile Belt, which runs south of the country, and in the Proterozoic Piriwiri Group rocks, in the north-west of Zimbabwe.

Zimbabwe’s Great Dyke has the world’s second-largest platinum-group metals (PGMs) resource, with an estimated 2.8-billion tons of PGM ore at 4 g/t. The country’s nickel resources have not been officially recorded, but more than 30 nickel deposits have been discovered.

The country also hosts significant coal reserves in the Lower Karoo rock of the Zambezi basin and the Save-Limpopo basin. There are more than 29 known coal deposits in Zimbabwe, with an estimated resource of more than 12-billion tons.

According to the department, Zimbabwe hosts more than 80% of the world’s metallurgical-quality chromite. The chrome ore is situated in the Great Dyke and on the greenstone belt in Shurungwi, Mashava and Belingwe.

There are more than 70 known copper deposits in Zimbabwe, mainly situated along the Magondi basin in an area spanning more than 150 km, and an estimated 30-billion tons of iron-ore reserves in the country. High-grade iron-ore deposits are located at Buchwa and Ripple Creek.

The country also has a wealth of diamond, uranium, pegmatite minerals and dimension stone deposits.