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Zimbabwe mines need USD 11 billion investment for modernization – Mr Batirai Manhando

Mining News - Published on Tue, 22 May 2018

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Reuters quoted Mr Batirai Manhando president of Zimbabwe Chamber of Mines as saying that Zimbabwe needs up to USD 11 billion to modernize its mines and boost production to maximum capacity over the next five years. Mr Batirai Manhando, said with the exception of platinum producers, all other mines, including those of gold, nickel, cobalt and coal were operating below their installed capacity.

Foreign investor interest in the southern African nation is growing after the fall of longtime leader Robert Mugabe following a de facto military coup last November but projects are still constrained by lack of funding.

Mining generates more than half of Zimbabwe’s export receipts last year it earned USD 2.8 billion but industry executives say it has the potential to earn more with increased investment.

Mr Manhando told that “The local mining industry is currently operating below capacity on the back of capital shortages.” He added that “At the beginning of the year the capital intensive industry required USD 7 billion for both ramp-up and sustenance capital. The figure has lately been revised upwards to USD 11 billion with renewed interest in our sector.”

Zimbabwe holds the second largest deposits of platinum and chrome after South Africa and has lately seen increased interest from lithium investors, who however say funding still remains a hurdle.

Mr Manhando said mining companies in Zimbabwe faced problems that included high costs of electricity, labor and royalty fees when compared to other jurisdictions. There had also been little exploration in the country since 2000.

Mr Manhando said that equipment at most mines was more than 50 years old, severely undermining efficiency and cost effectiveness of the sector.

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Posted By : Rabi Wangkhem on Tue, 22 May 2018
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