12 billion dollar mining industry achievable – AAG

by | Oct 13, 2021 | Business | 0 comments

Hosia Mviringi


One of the oldest and most eminent black empowerment advocacy group, the Affirmative Action Group is bullish that the Government’s set target for the mining sector to attain the US$12 billion output threshold by 2023 is attainable.


The group recently embarked on a nationwide drive to empower the country’s youths through a US$20 million mining mechanisation initiative which they brokered with a Chinese Equipment supplier, Lovol Equipment.


As part of the nationwide initiative, the group is helping small scale miners acquire mining claims and relevant licences for legal and formalised mineral extraction activities.


Speaking to TateguruTv.com, AAG President Mr Mike Chimombe was very excited about the prospects in the mining sector, especially the contribution of the Small Scale Artisanal Miners whom he said are contributing more Gold deliveries than bigger mining houses.


“Between January and June 2021, for example, Mr Scot Sakupwanya alone, who is one of the single largest buyers of Gold from artisanal miners delivered a total of 1200 kgs of the cumulative 1700 kgs worth of gold deliveries to Fidelity Printers and Refiners, which is not a mean feat for a previously marginalised group of mostly black young people,” Chimombe said.


This is testimony of the potentia small scale miners have, if the right environment is created.


Government identified mining among other sectors as a key low hanging fruit for quick economic turnaround and attainment of goals of the National Development Strategy Phase 1 initiative.


The ambitious US$12 billion mining industry output represents a whooping 344% increase from the US$2.7 billion achieved in 2017.


But this is achievable if the correct policies remain in place to attract viable investments into the sector, both from within and from without.

The October 2019 launch of this policy was a direct response to the broader macroeconomic roadmap leading towards an Upper Middle Income Economy by 2030.


Envisaged major drivers of the industry include Platinum, Gold, Diamond, Chromium, Iron Ore, Lithium and rare earths among others.


Exploration, extraction, beneficiation and value addition of minerals is expected to contribute to employment creation, increased foreign currency earnings and expanded industrial capacity utilisation.


Among the recommendations to government for this policy to be successful are the formalisation and decriminalisation of Small Scale Miners in order to curb smuggling of minerals. This formalisation would be coupled with incentives for small scale players to access mining claims and licences at reasonable fees.


The AAG, through their Indigenisation and Economic Empowerment department which is headed by Mr Scot Sakupwanya, has been actively engaging authorities with the goal to help small miners acquire mining claims and working capital for optimum productivity.


It is envisaged that under the policy direction, an inclusive model that include youths and women will be put in place to ensure gender exclusivity and balance.


Latest data from the Reserve Bank of Zimbabwe shows an encouraging jump in gold deliveries between January and September 2021 from 1000 kgs to 3000 kgs.