By Thembelani Moyo,
ZiMining News Editor
Zimbabwe’s mineral production fell in the second quarter of 2019 due to electricity load shedding and a shortage of foreign currency, according to Economic and Finance Minister Mthuli Ncube.
He made this announcement while presenting the 2019 Mid-Year Budget Review and Supplementary Budget to parliament.
The drought that has reduced hydro-electricity generation at the Kariba Dam has also affected power supply, with the resulting effect on mining operations. According to the minister, the sector experienced headwinds during the second quarter, with output losses in major minerals such as gold, platinum, palladium, diamonds, nickel, chrome, and coal. These constraints were caused by both foreign currency shortages and intermittent electricity supply.
Most mining companies have yet to implement alternative energy sources to counteract the power outages that are also threatening to bring the economy to its knees. According to international news agency Reuters, only a few platinum mining companies, such as Ngezi Platinum and Unki Platinum, have begun importing electricity to keep their businesses running.
Despite the gloomy outlook for the second quarter, there is still hope for the mining industry. Ncube announced that the government has a plan to turnaround the mining industry and make it profitable by 2023. He stated that the government will unveil a comprehensive strategy and roadmap towards a U.S.$12 billion mining industry by 2023.
Mining is a major foreign currency earner for Zimbabwe, and it contributed U.S.$1.3 billion of the country’s U.S.$1.9 billion export revenue recorded in the first half of 2019. The government’s plan to turnaround the mining industry by 2023 is an indication of its commitment to reviving the industry and helping the economy recover.
