Zimbabwe’s platinum industry, which requires an estimated $7 billion in the next five years to optimise operations, is bullish the proposed scrapping of indigenisation requirements and the entrance by new players will contribute to the realisation of 50 tonnes output target by 2030.
Boasting of a world class platinum resource in the form of the Great Dyke, Zimbabwe is seeking to increase output from 14.6 tonnes in 2018 to at least 50 tonnes by 2030 to be spurred by increased investments and expansion of capacity.
Players in the platinum sector who graced the just concluded 2019 Zimbabwe Mining Conference are bullish of the attainment of the 50 tonnes target and called for policy interventions to enhance the attractiveness of the subsector and modernisation of the infrastructure base.
“We do believe that the 50 tonnes target is achievable and we need to start working on the key enablers,” a representative of a mining firm confirmed.
According to the platinum miners, the pronouncements by government that that the exemption from 51/49% indigenisation requirements is set to be extended to the platinum sector is welcome as it will unlock the much needed capital.
The Minister of Mines and Mining Development, Cde Winston Chitando assured the industry of an accelerated policy reform drive, adding that the entry in the industry by new players such as Karo resources and Great Dyke Investments (GDI) will certainly contribute to the realisation of a $12 billion mining industry by 2023.
“We are so excited about the development in the platinum sector and we believe that the new entrants will help spur increased production and earnings from the commodity,” Cde Chitando.
To achieve the envisaged 50 tonnes output by 2030, Zimbabwe needs to grow the subsector by at least 10.78% per annum.
Zimbabwe’s platinum output which surged by 3% in 2018 despite depressed international prices is projected to surge to 15.5 tonnes in 2019.