The Zimbabwean mining sector anticipates a 7% growth in 2023, driven by expansion projects and rising mineral prices. Mineral revenue is projected to reach US$6 billion by 2025. Despite higher taxes imposed by the government, which aims to address revenue shortfalls amid informal operations, the industry remains resilient and optimistic about future production increases in gold, platinum, and diamonds.
The mining sector in Zimbabwe is optimistic about achieving a 7% growth this year due to ongoing expansion projects and favorable international mineral prices. This projected growth surpasses the anticipated 5% for 2024 and a 4% increase from the previous year. Isaac Kwesu, the Chief Executive Officer of the Chamber of Mines of Zimbabwe (CoMZ), noted that mineral revenue is expected to rise by approximately 10% to roughly US$6 billion in 2025, up from US$5.5 billion in 2024.
Kwesu highlighted that ongoing expansion activities and anticipated recovery in commodity prices will primarily drive this growth. He stated that gold production is forecasted to increase by 9% to around 41 tonnes, with platinum and diamonds expected to rise by 4% and 10%, respectively.
Despite facing challenges due to rising taxes and punitive lending rates enacted by the government, the mining industry remains resilient. The government aims to bolster its revenue amid a shift toward informal operations, which has unduly impacted formally registered companies. Moreover, since mines predominantly earn foreign currency, the government relies on this sector to address its revenue shortfalls.
The CoMZ continues to engage in negotiations with the government to mitigate the adverse effects of these tax policies on mining operations. The ongoing discussions signify the sector’s focus on sustainable growth while navigating the governmental landscape and broader economic challenges.
In conclusion, Zimbabwe’s mining sector is poised for significant recovery, forecasting a 7% growth this year thanks to expansion efforts and rising mineral prices. While challenges such as increased taxation persist, the commitment of industry leaders to negotiate with the government may pave the way for sustainable development in the sector. As global market conditions improve, Zimbabwe’s mineral output and revenue could experience substantial gains in the near future.
Original Source: africanminingmarket.com
