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Nqobile Bhebhe, Senior Business Reporter

The ban on un-beneficiated base mineral ores exports presents a perfect opportunity for the mining sector to vigorously focus on investing in the value-addition process as that would stimulate the sector and feed into employment creation.

Confederation of Zimbabwe Industries contends that the ban supports the National Development Strategy 1 (NDS-1) economic blueprint which aims at enhancing mineral beneficiation and value addition through creation of value chains to anchor the national re-industrialisation policy.

Early this year, the Government enacted additional regulations aimed at curbing the rampant exportation of various high-value minerals in raw form, buttressing calls for enhanced domestic value-addition in the mining sector.

A new Statutory Instrument on base minerals export control (Unbeneficiated Base Mineral Ore) order 2023 outlines the new measures being enforced.

The Statutory Instrument (SI) was issued by the Ministry of Mines and Mining Development and defines unbeneficiated base mineral ore as any ore of whatever base mineral that has not undergone processing within Zimbabwe to any extent.

Statutory Instrument 5 of 2023 states that no un-beneficiated base mineral ores shall be exported from Zimbabwe to another country except under written permit of the minister.

The business lobby group said the country is endowed with significant, well-known mineral reserves.
However, Zimbabwe primarily exports unprocessed mineral ores, which disadvantages the country in terms of increased job creation and revenue generation despite having more than 40 minerals whose commercial viability has been proven over the previous few years.

“Since mineral ores are being exported, most mineral beneficiation plants are either vacant or underutilised. While over 60 percent of the nation’s exports are made up of mineral commodities, beneficiation and value addition can increase the sector’s overall contribution to socioeconomic development,” CZI said.

It added that base minerals such as coal is one of the five key minerals which was selected on the enhancement of beneficiation and value addition strategy which will facilitate the role towards national re-industrialisation to build a strong integrated economy.

“The local capacity to add value to the base mineral ores should thus begin to emerge, given assured throughput. Industry should now focus on investing in the value addition process and associated value chain industries of the base minerals.”

However, small-scale miners are lobbying the Government for a six-month reprieve on the ban on export of raw minerals saying the unexpected development has prejudiced standing off-take agreements between miners and international buyers some of whom had taken loans from their respective countries to finance trade in the minerals.

The miners are of the view that a temporary moratorium will unlock foreign currency earnings to boost market liquidity and expand the Government’s revenue base through royalty fee payments and associated taxes.

President Mnangagwa has repeatedly challenged the mining sector to enhance value addition to help end the country’s unsustainable reliance on exporting raw minerals.

Zimbabwe is targeting a US$12 billion mining industry by 2023, which is a key enabler of Vision 2030.

Gold, platinum and diamonds are expected to contribute US$4 billion, US$3 billion and US$1 billion respectively.

Other minerals such as chrome, iron ore and carbon steel will contribute US$1 billion while coal and hydrocarbons will contribute an equal amount.
Lithium is expected to contribute US$500  000 while other minerals will add US$1,5 billion.