CHAMBER OF MINES OF ZIMBABWE Capital Requirements for the Mining Sector over the next 5 years (2016-20)

Presentation Outline Context of capital requirement in mining Level of Capital requirements Stay- in business (sustenance) capital Ramp/developmental investment Requirement per mineral Impact of capital on mineral output Way forward

Unlocking Zimbabwe mineral wealth Zimbabwe’s mineral potential can be achieved through: Current producers operating at full capacity Producers expanding current capacity New exploration projects UNLOCKING MINERAL VALUE Isaac Kwesu 2012

The question is how then do we attract capital for: Exploration activities Companies to operate at full capacity Companies to expand installed capacity Companies to set up beneficiation facilities It is only then that the country can realise the potential from its mineral resources.

Total capital needed by the Mining Industry in the next five years (2016-20) USD' billion

Distribution of capital requirement (2016-20) USD' million Mineral Capital Requirements Platinum US$2.8 B Gold US$0.60 B Coal US$0.42 B Chrome US$0.038 B Nickel US$ 0.028 B

Impact of capital on production Mineral Base-2014 Potential 2020 Chrome \t 373,031 1,000,000 Gold \kg 15,385 30,000 Nickel \t 16,632 27,000 Platinum \kg 12,482 22,000 coal\t 6,353,802 18, 0000000

Capital requirement in the Gold Industry

Capital (USD) required by the gold industry

Impact of additional capital on gold output

PGMs capital requirement (2016-20) USD' million

Impact of additional capital on platinum output

Coal capital requirement (2016-20) USD' million

Coal capital requirement (2016-20) USD' million

Impact of additional capital on coal output

Chrome capital requirement (2016-20) USD' million

Chrome capital requirement (2016-20) USD' million

Impact of additional capital on chrome output

Nickel capital requirement (2016-20) USD' million

Nickel capital requirement (2016-20) USD' million

Impact of additional capital on nickel output

Unlock Mineral Value With the new thrust of mining as the cornerstone of economic growth, it’s imperative to: Resuscitate existing mining operations Develop new mines Beneficiate mineral output Establish linkages between the mining sector and other sectors of the economy, particularly manufacturing October 2013

Way forward Mobilize requisite capital (to provide numbers)- incentives investments in new projects, and new discovery, Create enabling environment for foreign and domestic investments Address issues of competitiveness

END Thank you