Zim mining revenue hits US$9,93bn

Oliver Kazunga-Senior Reporter

THE mining sector generated an estimated US$9,93 billion from mineral sales and gold deliveries in the first nine months of the year, compared to about US$5 billion in the same period last year.

The strong performance was driven by robust lithium and Platinum Group Metals (PGMs) sales, as well as rising gold deliveries from small-scale miners.

Figures from the Ministry of Mines and Mining Development show that cumulative mineral sales, excluding gold, reached US$4,74 billion by September 30. Gold delivered to Fidelity Gold Refinery (FGR) between January and September was worth approximately US$5,2 billion at prevailing international prices.

Mines and Mining Development Minister Dr Polite Kambamura attributed the surge in mineral export revenue to sound policies implemented by President Mnangagwa and firming metal prices on the international market.

“Mineral export revenue continues to surge buoyed by firming up of international prices and also the President’s policies of local beneficiation that we cemented at the beginning of this year. This year’s Ministry export revenue is targeted north of US$11 billion. We are currently putting measures in place to close loopholes in an effort to curb mineral leakages. Miners should make sure that all mineral production is well accounted for, from the mine gate to market,” he said.

He added that beneficiation projects currently in progress should be expedited to ensure producers are aligned with the Government’s policy to locally value add and beneficiate.

“We are taking this seriously and we are not going to compromise on this policy,” he said.

In line with the value addition and beneficiation thrust, Government has given Zimbabwe’s lithium producers until January 2027 to establish lithium sulphate plants, with authorities making compliance a condition for advancing to the next stage of processing towards battery manufacturing.

Following the Government’s policy directive, players in the mining industry have commenced working towards aligning their operations with authorities’ expectations. Prospect Lithium Zimbabwe has established itself as an industry pioneer, becoming the first entity in Africa to process and export lithium sulphate in April this year after investing US$400 million at its facility in Goromonzi, Mashonaland East Province.

In Masvingo Province, Bikita Minerals is pressing ahead with plans to value-add its lithium after securing US$500 million in funding for a transformative project expected to see the mine begin producing lithium sulphate.

During the period under review, gold remained Zimbabwe’s single largest foreign currency earner, accounting for 52 percent of the combined value. FGR bought 35,88 tonnes of gold over the period, with small-scale miners delivering 25 780 kilogrammes, or 72 percent of total deliveries, while primary producers delivered 10 101kg.

Deliveries peaked in August at 5 119kg, worth about US$726 million. The value of gold deliveries rose in every quarter, from US$1,46 billion in the first quarter to US$1,74 billion in the second quarter and US$1,99 billion in the third quarter to September.

Lithium led other mineral sales, earning US$2,16 billion, or 46 percent of the total. Spodumene concentrate alone brought in US$1,81 billion, while lithium sulphate, a higher-value product, earned US$190,5 million and petalite US$155,3 million.

PGMs earned US$1,73 billion, made up of PGM matte at US$1,26 billion and concentrates at US$465,6 million. Other notable earners were high-carbon ferrochrome at US$256 million, steel at US$195,4 million and coke at US$168,6 million. Chrome concentrates brought in US$87,8 million, while diamonds earned US$62,3 million from 2,52 million carats.

September was a particularly strong month, with mineral sales of US$685 million.

Lithium products accounted for nearly 70 percent of that figure. Lithium and PGMs together account for 82 percent of mineral sales, a dominance Government believes highlights the importance of its value addition and beneficiation drive to cushion the sector against swings in global prices.

Chamber of Mines of Zimbabwe (CoMZ) chief executive officer Mr Isaac Kwesu said Government and stakeholders in the mining industry were targeting mineral revenue in excess of US$10 billion this year.

“We are targeting annual mineral revenue in excess of US$10 billion this year, which by far and large is attainable looking at what is already happening on the ground, specifically the firming prices for gold, PGMs and lithium as well as the projects upturn. Last year, we were at US$8 billion and US$10 billion is a good number, about 25 percent increase, and in this case it is a good number,” he said.

Economist Professor Gift Mugano said Zimbabwe was on track to surpass its mineral earnings target for the year.

“One of the striking decisions done by Government through the Ministry of Mines is to ban export of raw lithium to the extent that we have seen lithium-related exports (lithium concentrates) topping US$2,16 billion by the first nine months of the year and it has exceeded PGMs which is US$1,7 billion. Lithium has become new gold and this is a 385 percent increase compared to last year, so we are doing good as a country,” he said.

Early this year, Government banned the export of raw minerals including lithium, a development which has compelled companies in the industry to set up beneficiation plants across the value chain.

“Overall, we will exceed US$20 billion total foreign currency receipts by the end of the year. I am sure you are aware that by end of September total foreign currency receipts were sitting at US$15,9 billion — over 60 percent of that being exports (minerals),” Prof Mugano said.

Source: Zim mining revenue hits US$9,93bn – herald

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