At the same time Cabinet has agreed to work with private
investors to set up gold centres to assist small-scale miners produce more efficiently
and will be welcoming a new investor in diamonds, who wants to set up a cutting
and polishing centre in Zimbabwe and wants to be allowed to buy stones on the
diamond auctions.
The three measures are all designed to boost production the
value of the products that are eventually exported.
The Government move on chrome, reversing a temporary policy
of allowing ore exports, dovetails with the beneficiation strategies outlined
in the National Development Strategy 1 (NDS1) which wants mineral exports to be
at least partially processed in Zimbabwe before export to add value.
Zimbabwe boasts the world’s second-largest chromium
reserves after South Africa and the mineral is expected to boost the vision of
attaining a US$12 billion mining industry by 2023.
Information, Publicity and Broadcasting Services Minister
Monica Mutsvangwa announced the policy change after yesterday’s Cabinet
meeting.
“A cumulative 22 smelters are now operating and are shared
among nine foreign and local companies. Unless chrome mining capacity is
expanded, the smelting operations could soon face the challenge of insufficient
feedstock in the form of chrome ore.
“In light of the need to safeguard the ferrochrome industry
in the above regard, Cabinet approved a total ban on exports of raw chrome ore
with immediate effect,” she said. “The ban will capacitate current smelters and
maximise the value chain to be realised from the country’s abundant resources
as spelt out in the National Development Strategy 1.
“Cabinet approved the total ban of export of chrome
concentrates with effect from July 2022,” said Minister Mutsvangwa.
The one-year transition was designed to give producers of
concentrates time to make suitable arrangements to move up the line for more
value addition.
If the 22 smelters cannot cope with expanding production of
chrome, then permission can be given for raw chrome exports, but only for a
single consignment at a time.
“Exports of any consignment of raw chrome will only be
allowed provided that all the smelters are not in a position to take up and
utilise that particular consignment,”
she said.
Minister Mutsvangwa said the second mining initiative being
targeted in the achievement of a US$12 billion mining industry by 2023 involved
the establishment of gold centres.
These will provide basic equipment such as compressors and
jack hammers, as well as working capital and technical services, to facilitate
supply of gold ore by small-scale miners.
“The Reserve Bank of Zimbabwe shall maintain a presence,
directly or through approved buying agencies, at all gold centres so as to buy
all the gold produced. The gold centres will also provide technical services to
miners who supply the ore.”
More than 20 gold centres are to be set up by the middle of
next year, Cabinet agreed, and memoranda of understanding would be signed with
four identified investors for setting up the centres.
“The investors will own 100 percent equity in the centres
while those who operate joint ventures with the Ministry of Mines and Mining
Development will fully fund the operations of the centres in return for a 90
percent equity stake.
“Cabinet therefore approved that the Ministry of Mines and
Mining Development signs memoranda of understanding with investors intending to
locate, establish, fund and run gold centres already provided for in the Mines
and Minerals Act.”
Gold centres were expected to be established in Makaha,
Odzi, Mount Darwin, Shamva, Mazowe and Silobela.
Turning to diamonds, Cabinet agreed to facilitate a new
investor, Ashelroi Trading and Services, which wants to start cutting and
polishing diamonds in Zimbabwe, to participate in the diamond auction system as
already stipulated in the diamond value addition chain in the NDS1.
“The new investor will construct an advanced diamond
cutting and polishing plant in Zimbabwe and promote skills and technology
transfer on cutting and polishing,” said Minister Mutsvangwa.
The ban on exportation of raw chrome immediately got the
endorsement of the legislature. Herald
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