Zim surpasses mineral exports target
TINASHE MAKICHI
Zimbabwe has surpassed its minerals export target over 10 months of this year by 21% largely driven by platinum group metals (PGMs) and nickel, Business Times can report.
Official data obtained from Mineral and Marketing Corporation (MMCZ) showed that Zimbabwe’s total sales in the reviewed period stood at US$1.9bn compared to a budget of US$1.5b, despite the ravaging Covid-19 pandemic.
MMCZ is a government agent responsible for marketing all minerals excluding gold and silver which are marketed by Fidelity Printers and Refiners.
This year’s export sales figures were 16% up from last year’s minerals exports, which stood at ZWL$1.617bn.
“We had targeted ZWL$1.5bn but we have surpassed that figure. Markets were different, for ferrochrome, the concern was the second wave of Covid-19 sweeping across Europe. Concentrates from Zimbabwe into China were being sold at US$205 per tonne, so the chrome market is still depressed,” MMCZ general manager Tongai Muzenda told Business Times.
Muzenda said the PGMs contributed positively to the overall income. Platinum, during the reviewed period was down 4%. But, other elements under the PGMs, however, were up.
Nickel sales were also up.
Despite surpassing the budget, Muzenda said, it was imperative to beneficiate minerals in order to achieve maximum value.
“We are working flat out to encourage value addition of metals and minerals. We are trying it on granite where we cut and polish. The same thing is being encouraged on gemstones,” he said.
Muzenda said all local granite miners have been directed to beneficiate their product before exporting as MMCZ targets more forex from granite sales.
It is understood that the government is considering coming up with an export ban on unbeneficiated granite, which is mainly extracted in Mutoko and Mt Darwin areas. The producers are exporting granite in its raw form.
It is understood that beneficiation efforts were being frustrated by some producers who are said to be employing delaying tactics to implement beneficiation strategies.
They are facing various operational challenges which include power outages and foreign currency shortages, resulting in the closure of half of the operating companies over the past two years.
Granite makes up about 1.6% of Zimbabwe’s total exports, which is far below gold which contributes about 32% to the country’s total exports) and tobacco (14%).
About 56% of Zimbabwe’s granite goes to Mozambique, and the rest, according to MMCZ, is exported to Italy, South Africa, Germany, Spain, the United Kingdom, China, Japan, Malaysia, Singapore, Argentina, the United States and Canada.