Transcript Day One Mutuso Dhliwayo Zimbabwe country presentation

Zimbabwe’s Mining Sector :
Prospects & Challenges
Mutuso Dhliwayo
Zimbabwe Environmental Law
Association
Outline of Presentation
• Zimbabwe’s Mineral Resource Base
• Contribution of the Mining Sector to Economic
Development
• Problems within Zimbabwe’s mining sector
• Conclusion
Zimbabwe’s Mineral Resource Base/
Endowment
• Zimbabwe has a significant and diverse
mineral resource base
• The Zimbabwe Geological Survey of 1990 lists
no fewer than 66 base and industrial mineral
deposits
• 40 mineral deposits currently being deposited
• Gold, coal, iron ore, platinum, diamonds,
chrome, emeralds , black granite, lithium
Zimbabwe’s Mineral Resource Base
cont’
• Second largest reserves of platinum
• Third largest reserves of chrome
• 25 % of world diamond market needs
Projected Growth Rates : 2011-2015
Source: MEPIP, RBZ and MOF
2011
2012
2013
2014
2015
Gold/kg
13,000
15,000
18,000
21,000
25,000
Nickel/t
7,675
8,842
10,611
12,733
15,279
Coal /t
3,000,000
6,360,000
7,146,000
7,146,000
7,146,000
Asbestos / t
2,100
2,100
2,100
2,100
2,100
Chrome/t
610,000
700,000
700,000
7000,000
7000,000
Platinum/kg
12,000
13,287
15,751
19,721
19,666
Paladium/kg 9,600
10,630
12,601
15,776
15,732
Blackgranite
/t
168,000
170,811
173,748
176,602
179,511
Diamonds
(caratas)
8,065,651
12,111,867
14,837,707
18,443,797
21,463,054
20%
18.3%
19.4%
8%
Growth Rate 44%
Contribution of the Mining Sector to
Economic Development
• Zimbabwe’s Economic Problems
• Mining will play a catalytic role in economic
recovery
• The mining sector has the capacity and
potential of being the both the foundational &
champion issue for the reconstruction of the
country -2012 National Budget Statement
Contribution of the mining sector
cont’
• Mining has the capacity and potential to create
substantial impetus for economic growth & value
addition – Medium Term Plan
• Mining can help kick start economic recovery,
stabilisation and eventual growth of the
economy- ZMRTI
• Mining sector is the core pillar of the country’s
economic and social turn around and
developmental plans. Success of the MTP is
anchored on the mining sector - MMMD
Contribution of mining continued
• Mining sector has grown at an annual rate of
more than 30% since 2009
• Average contribution of the mining sector to
the GDP has grown form an average 10.2 % in
the 1990s to an average of 16.9 % from 20092011
• Mineral exports rose by about 23% over the
2009 -2011 period ( leading export earner )
Problems in Zimbabwe’s Mining Sector
• Potential , comparative as opposed to
competitive advantage
• Curse of poor laws and polices
• Importance of laws and policies in unlocking
value from mineral resources
• Old, archaic and colonial piece of legislation –
Mines and Minerals Act [ Chapter 21:05]
• Zimbabwe’s mining laws are criminal-Mutambara
• Obscure legal regime codified in the Mines and
Minerals Act - Biti
Problems in Zimbabwe’s mining sector
• Does not recognise HR- violation of communities’
EESCR
• Limited transparency and accountability
• No access to information
• Role of other stakeholders in the mining sector
• Lack of participation by CBOs and CSOs in the
policy and decision making institutions
• No competitive licensing process with no
mechanisms for public accountability
Problems in Zimbabwe’s mining sector
cont’
• Corruption – NIEEBGATE and DIAMONDGATE
scandals
• Politicisation of the mining sector ie
Community Share Ownership Schemes
• Zimbabwe Mining Revenue Transparency
Initiative
Conclusion
• Mineral resource endowment
• Potential of mining to contribute to economic
development
• Problems affecting the potential of the mining
sector
• Opportunities – New constitution, Draft
Minerals Policy, development of a new Mines
and Minerals Act
• THANK YOU