Harare, Zimbabwe — MININGREVIEW.COM — 24 October 2011 – The Chamber of Mines of Zimbabwe has issued a warning of a possible negative effect on mining growth in the outlook period to 2015 due to prevailing challenges in the country’s macro-operating environment.
The Chamber’s mineral economist David Matyanga told a 2012 National Budget consultative meeting that Zimbabwe could experience a decline in mineral output this year.
“The sector’s rate of growth this year could be much lower than anticipated,” he said. “For instance, gold output will grow by 22%, down from 35% last year; nickel will increase at 22% (down from 26% last year), chrome by 15% (from 166% in 2010), platinum by 21% (from 26% last year), and coal by 17% (from 66% last year),” Matyanga pointed out.
“The mining sector is facing challenges in terms of the infrastructure. Some mining companies have signed ring-fencing agreements with the Zimbabwe Electricity Supply Authority; others have not and these are feeling the pinch of constant power outages.”
Matyanga also lamented the fact that the sector was facing challenges in respect of financing, with most local banking products being considerably expensive “’ some loans with interest of up to 22%.
Meanwhile, global analysts Business Monitor International (BMI) say the mining sector will grow by an average 8% to 2015. BMI explained that although it expected the mineral sector to experience short-term, renewed weakness as a result of internal policy shocks, it would quickly recover.
“We believe the mining sector will grow by more than 8% a year over our forecast period to 2015, with risks to the upside once the uncertainty over indigenisation has come to an end,” said the analysts.