By Almot Maqolo
HARARE – Zimbabwe is expected to save about $20 million in diesel used annually on flame stabilization as gas produced through recovery coke oven batteries from South Mining and Jinan will be piped directly to the power utility.
Coke production will be from recovery and non-recovery coke oven batteries. In 2018, coke production stood at 300 000 and is projected
to reach 2.19 million tonnes in 2023.
“Commissioning of recovery coke oven batteries especially by South Mining and Jinan will result in the gas produced being piped to the
ZESA power station, saving about $20 million for diesel used annually for flame stabilization,” stated mines and mining development ministry in its $12 billion mining sector roadmap.
“The total gas produced will be excess to ZESA requirements with the excess being sold locally and internationally. The revenue from byproducts has not been factored in the $12 billion milestone.”
Also, they will be massive downstream effects on Zimchem in Kwekwe which have not been factored in.
The country has set an ambitious target of attaining $12 billion by 2023 in potential revenue from the mining industry. This represents a 344% increase from the $2.7 billion recorded in 2017. The sector
contributes about 18% to GDP and provides essential raw materials for manufacturing and agriculture sectors.
Currently the mining sector accounts for around 70% of the southern African nation’s foreign currency earnings.
Of the $12 billion, gold, platinum diamonds will contribute $4 billion, $3 billion and $1 billion respectively. Chrome, iron ore and
carbon steel will contribute $1 billion while coal and hydrocarbons will contribute the same. Lithium at $500 000 while other minerals
will constitute $1.5 billion.
The mining sector is one of the major drivers of the country’s economy. It has become one of the leading growth initiators in the
economy of this country with the government also focusing on mining as one of the vehicles of growth intended at transforming the economy.
The competitiveness of doing business for the mining sector has been negatively affected by the high cost of doing business in the southern
African nation coupled by high cost drivers, poor infrastructure, unrealistic foreign currency controls accelerated by forex receipts
retention, high tax burdens and policy flip flop.
The Economic Intelligence Unit in its recent country report for the southern African nation said they have long expected Zimbabwe’s mining
sector to attract some investment, despite the very challenging operating environment.
“The country’s enormous natural resource wealth creates significant opportunities and as the government continues to prioritize the
sector, the few companies that are able to strike a deal with the administration of the president, Emmerson Mnangagwa, will be able to
reap large profits,” it said.
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