1. Zimbabwe’s Mining Sector : Prospects & Challenges Mutuso Dhliwayo Zimbabwe Environmental Law Association

2. Outline of Presentation Zimbabwe’s Mineral Resource Base Contribution of the Mining Sector to Economic Development Problems within Zimbabwe’s mining sector Conclusion

3. 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

4. Zimbabwe’s Mineral Resource Base cont’ Second largest reserves of platinum Third largest reserves of chrome 25 % of world diamond market needs

5. Projected Growth Rates : 2011-2015 Source: MEPIP, RBZ and MOF 20112012201320142015 Gold/kg13,00015,00018,00021,00025,000 Nickel/t7,6758,84210,61112,73315,279 Coal /t3,000,0006,360,0007,146,000 Asbestos / t2,100 Chrome/t610,000700,000 7000,000 Platinum/kg12,00013,28715,75119,72119,666 Paladium/kg9,60010,63012,60115,77615,732 Blackgranite /t 168,000170,811173,748176,602179,511 Diamonds (caratas) 8,065,65112,111,86714,837,70718,443,79721,463,054 Growth Rate44%20%18.3%19.4%8%

6. 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

7. 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

8. 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 2009- 2011 Mineral exports rose by about 23% over the 2009 -2011 period ( leading export earner )

9. 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

10. 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

11. 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

12. 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

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