Concerned with challenges affecting mining investors in exploring new and viable projects within the economy, government has finalised a mineral exploration strategy that seeks to increase local and foreign direct investments in the viable but capital intensive sector.The Permanent Secretary in the Ministry of Mines and Mining Development, Mr. Prince Mupazviriho confirmed that a government owned mineral exploration firm will be established with a view of assisting investors in identifying untapped mineral reserves to increase production and revenue inflows.
â€œThe ministry of mines is finalising the entire process and we hope it will be ready for the benefit of new mineral investors,â€ he said.
Chamber of Mines President Mr. Winston Chitando says while the private players in the mining sector welcome the proposed setting up of a mineral exploration firm, the recovery of the mining sector depends on the availability of adequate capital reserves.
Mr Chitando was speaking at a one-day mining sector stakeholders meeting in Harare.
He said: â€œAs the private players we are committed to the recovery of the mining sector, but inadequate funding is hindering the process.â€
During the meeting it emerged that in spite of the growth in production and revenue inflows for the mining industry during the past three years, the sector is experiencing operating problems.
The challenges are mainly due to high costs of utility bills, electricity supply constraints, lack of long-term funding at concessionary rates as well as the failure to add value on locally produced mineral commodities.