Zimbabwe 'Government Prioritizes Exploration'

Zimbabwe diamond resources are some of the largest in the world. Imperialism has attempted to prevent the Southern African state from trading its most lucrative resource on the world market., a photo by Pan-African News Wire File Photos on Flickr.

‘Govt prioritises exploration'

Sunday, 03 November 2013 00:00

Sunday Mail Business Reporter PRINCE MUSHAWEVATO (PM) interviewed the Deputy Minister of Mines and Mining Development, Mr Fred Moyo (FM), to find out how the Government intends to address challenges bedevilling the sector.

PM: Stakeholders in mining have been calling for the investment environment to be improved in order to attract more business and investors. Is your ministry taking this into consideration and which areas are you likely to focus on?

FM: The ministry does pay attention to advice from stakeholders, which includes mining houses. Government desires Zimbabwe to offer best investment opportunities to investors on a win-win basis. In this regard, a new Minerals Development Policy is presently being crafted with consultation from relevant stakeholders.

PM: When is the ministry going to complete crafting the Mineral Development Policy and what will be its focus or aim?

FM: We believe this will be a modern policy, addressing all stakeholders’ needs and concerns. The policy document will soon go to Parliament per procedure.

PM: And has the proposed exploration company been set up as yet? If so, what is going to be its benefits to players in the mining sector?

FM: The exploration company has already been set up under Zimbabwe Mineral Development Corporation (ZMDC). And it is being resourced as we speak. The efforts will ensure that investors get updated information with regards to the minerals available in the country below ground, while at the same time Government will also get to know the amount of mineral resources that the country has, information that they can even leverage against as security.

PM: How do you respond to assertions that the mining sector is now one of the least attractive sectors of Zimbabwe’s economy, since growth has somewhat slowed?

FM: The mining sector is influenced by both internal and external platforms. However, it is the external factor of depressed commodity prices that is bedevilling the sector most at the moment. Internal challenges have remained, those of capitalisation and costs.

The industry (mining) is battling with these, but they are not new challenges.

Partners will engage, that is mines, Government and labour, to craft strategies to protect all parties involved in the sector.

PM: Considering the liquidity crunch that you have pointed out, what is Government doing to ensure that small-scale miner operations improve?

FM: The ministry has taken a holistic approach that has seen it working on the most appropriate mode of operation that involves miners, the ministry itself, equipment suppliers and financiers. Through this way, we hope we can create a strong mining small and medium enterprise (SME) and everything will be on course.

PM: On the same issue, there have been allegations of abuse of funds meant to boost small-scale miners’ operations? How far true is this?

FM: From the information we have, there has not been any misuse of funds at least at the formal level. If anything improper has happened, the ministry is not yet aware of it, but will find out. We want to empower our people through SME programmes, so we will make sure that everything will be done properly and according to book.

PM: Have small-scale miners started receiving the equipment such as compressors and generators that was pledged by Government through the Minerals and Marketing Corporation of Zimbabwe (MMCZ)?

FM: It is proving difficult to operate with various mining groups throughout the country. We believe there is need to harmonise all groups of small-scale miners under one umbrella body, namely the Zimbabwe Miners’ Federation (ZMF), a body formed under supervision of the ministry of mines. This is key for the comfort and security of all stakeholders from a transparency and risk management point of view. And I assure you the ministry is working on this matter.

PM: In Government’s view, what is needed to boost the overall performance of the mining sector?

FM: Government thrust focuses on ensuring business efficiency in operating assets, re-opening of mothballed assets and ushering in of capital to open new mines. We need to attract funding, issue clear investment policies and focus on operational efficiency and discipline by mines to achieve growth in the sector (mining).

PM: There have been reports also claiming that Zimbabwe is fast running out of alluvial diamonds (surface diamonds), and that diamond occurrences are now being explored way beneath the surface. Is this a myth or it’s actually something that is happening?

FM: It is naturally expected in mining that surface ores will exhaust first, specifically for our diamonds. However, it is important to note that the area of Chiadzwa is not explored, really. We could not exhaust deposit of this nature with five years of operating. As already said, the diamond area is not well explored, meaning we still have more of the surface diamonds.

PM: Related to the diamond issue, there is also talk that there might be a possibility that areas where families from diamond-rich areas are resettled might actually be rich in diamonds themselves. Is this true?

FM: I hope the assertion that families are being settled on diamond rich ground is not correct. If it is, we will have to deal with the matter but this will be in the distant future hence it does not pose a challenge right now.

PM: You have previously been involved with a number of mining companies, can you briefly take us through your history, indicating the major companies that you have worked for and the success you have registered?

FM: I am one of Zimbabwe’s first three black mining engineers. I was also perhaps one of the country’s first black mine managers. I’m also a past president of the Zimbabwe Mine Managers’ Association and second vice-president of the Chamber of Mines. In my other early responsibilities, I have been director of AA Mines, managing director of Mwana Africa and Hwange Colliery company Limited (HCCL). My key attribute is managing people’s issues (employees, community and business stakeholders such as suppliers and buyers), and I say to you, anyone who is weak in this area will leave business exposed to serious stakeholder risk and hence operate in turbulent waters.