OUTGOING minister of mines Winston Chitando says mining sector revenue is poised to increase to US$12b by 2023 from US$2.5b recorded in 2017.
Chitando said the growth will be spurred by growth in the gold and diamond sectors.
He said the coal bed methane gas deposits coupled with vast coal deposits in the country will enable the nation to be diesel self sufficient by 2030.
Chitando said that the Zimbabwe Consolidated Diamond Company (ZCDC) has built significant capacity in diamond production through a successful transition from alluvial to a conglomerate based mining model which has seen commendable improvement in the company’s performance as evidenced by increased production, profitability and investment into sustainable mining.
“Mining will play a key role in the accomplishment of vision 2030 that entails Zimbabwe becoming a middle income country. In that process mining revenue will reach US$12b by 2030. Diamond will play a major role through the Zimbabwe Consolidated Diamond Company and the conglomerate diamond model they have adopted.
The President will also announce a diamond policy very soon that will guide the growth of the sector. Gold will also be another major contributor to the growth in mining revenue and we expect this year output to reach 35tons.
However by 2023 we expect output from the gold sector to have reached 100 tons. Our coalbed methane gas deposits and coal deposits will help us extract diesel just like what SASOL is doing in South Africa. So by 2030 we shall be self sufficient in diesel by 2030.
Meanwhile ZCDC anticipates major upward trend in diamond production output, a move expected to see the company joining the bracket of other top diamond producing companies in the world.
ZCDC chairman Enginner Kilian Ukama said the company was targeting a 21 percent Compound Annual Growth Rate (CAGR) in production to around 11 million carats by 2025 from 3 million carats in 2018.
Ukama said ZCDC is aiming to be among the top rough diamond producers in the world with targeted annual production of 11 million carats by 2025.’
ZCDC expects production output of 250 000 carats per month while exploration activities have increased significantly for new deposits.
ZCDC was founded in 2015 following government’s decision to consolidate mining in the diamond-rich Marange region and correct shortcomings of the multiple company models that had been adopted.
Prior to the establishment of ZCDC, companies mining diamonds in Marange included Mbada Diamonds, DMC, Anjini, Marange Mineral Resources and among others.
The scramble of diamonds in Marange also saw hundreds of artisanal miners flocking to get a share of the precious stone.
Government intervened to consolidate the diamond mining sector after realisation that the sector had failed to make the desired socio-economic impact.
Government took deliberate steps to ensure transparency, accountability and responsibility in the industry to warrant that diamonds make the intended contribution to the development of the nation as in other countries that have managed to manage the resource efficiently for the benefit of their economies and citizens.
ZCDC’s results on the implementation of the Diamond Mining Business Model are beginning to yield, with the company beginning to record a commendable improvement in both productivity and investment.
Ukama said the goal of ZCDC is to see diamond revenues unlocking value for ordinary Zimbabweans through investments in infrastructure, foreign currency generation, employment creation and sustainable development programs funded by diamond revenues. ENDS//