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Oliver Kazunga recently in Victoria Falls
THE large-scale mining industry will this year spend over $108 million in capital expenditure up from an excess of $22 million in 2016.

Speaking at the just ended 7th Buy Local Summit and Investment Forum in Victoria Falls last week, Metallon Gold Corporation general manager for operations Mr Kimpton Chihota said large-scale miners through their representative body, the Chamber of Mines of Zimbabwe have indicated that they would spend more than $108 million on various expansion projects aimed at boosting mineral output.

“Last year, in excess of $22 million was spent in various projects by large scale miners across the country. More than $108 million is expected to be spent in 2017,” he said.

Mr Chihota said as a result of the expansion programmes and efficiency boosting initiatives by some local mining houses, capacity utilisation in the sector had improved from 77 percent in 2015 to 79 percent last year.

“There is significant potential growth within the mining industry,” he said.

The mining sector has been on a rebound since the introduction of a multicurrency system in February 2009.

As a result, the mining sector has continued to be one of Zimbabwe’s major economic mainstays contributing significantly to the Gross Domestic Product with gold and platinum leading the charge.

Mr Chihota said the sector presents opportunities that local potential investors can tap into.

The mining industry plays an undoubted key role in the socio-economic development of the country with the sector’s contribution to the Gross Domestic Product coming in several ways such as employment creation, foreign exchange generation, gross national investment, social infrastructure development and direct revenues to the Government.

“The mining industry has vast opportunities that local suppliers can tap into. At present, local supply is low and mining houses are relying on imports. The mining sector requires equipment such as locomotives, which it is not in a position to manufacture. Opportunities also exist to manufacture cyanide locally,” he said.

@okazunga