Zimbabwe is home to a wealth of natural resources, with its mining industry being a key contributor to the country’s economy especially platinum and gold mining.
One of the most important and valuable of these resources is platinum and gold. In this article, we’ll take a closer look at Zimbabwe’s platinum and gold mining industry, including a brief overview of the history of the industry, the current state of the industry, and the potential for future growth and development.
The history of platinum and gold mining in Zimbabwe can be traced back to the early 1930s, when the country’s first mine, the Selukwe mine, was established. The Selukwe mine was the first to extract and process platinum in the country. Since then, the industry has grown significantly, and today Zimbabwe is home to several large-scale platinum and gold mines.
Currently, the platinum and gold mining industry in Zimbabwe is facing some challenges, mainly due to the ongoing economic struggles that the country has faced. Despite this, the industry continues to grow and contribute to the economy. In 2019, the mining industry contributed around 12% of the country’s GDP and provided jobs for over half a million people.
The future of the platinum and gold mining industry in Zimbabwe looks promising. With new mines being developed and existing mines being expanded, the industry has the potential to continue growing and contributing to the country’s economy. Additionally, the country has significant reserves of platinum and gold, which means that there is still much untapped potential for the industry.
There are several mining companies operating in the country, both local and foreign-owned. Some of the largest include Zimplats, Unki, and Mimosa mine, they produce the majority of platinum and gold in the country, and they have plans to expand their mining operations in the future.
Zimbabwe’s platinum and gold mining industry is an important and valuable contributor to the country’s economy. Despite facing challenges, the industry has a bright future with the potential for growth and development. With new mines being developed, and existing mines being expanded, this industry will continue to provide jobs and income for the people of Zimbabwe, and help drive the country’s economic development.
As the mining industry continues to grow and new technology are implemented, we can expect that mining companies will become more efficient and environmentally friendly. This can lead to more sustainable mining practices and contribute to the protection of the environment. Also, as the mining industry grows, it can attract more foreign investment, technology, and expertise which can help the industry improve and become more competitive in the global market. In short, Zimbabwe’s platinum and gold mining industry has a promising future and has the potential to be a major player in the global mining industry.
How do you Start a Mining Company in Zimbabwe?
Starting a gold mining company in Zimbabwe can be a complex and time-consuming process, involving a number of different steps and requirements. Here is a general overview of the main steps involved in starting a gold mining company in Zimbabwe:
Obtain a prospecting license: The first step in starting a gold mining company in Zimbabwe is to obtain a prospecting license from the Ministry of Mines and Mining Development. The license allows you to search for gold in a designated area and to take samples for testing.
Conduct a feasibility study: Once you have obtained a prospecting license, you’ll need to conduct a feasibility study to determine the viability of your mining project. This study should include an assessment of the geology of the area, the potential for gold deposits, and the costs and benefits of mining.
Obtain a mining lease: If the feasibility study indicates that your project is viable, you’ll need to apply for a mining lease from the Ministry of Mines and Mining Development. A mining lease gives you the right to mine for gold in a specific area for a specified period of time.
Register your company: To establish a gold mining company in Zimbabwe, you’ll need to register the company with the Registrar of Companies and comply with the Zimbabwe Companies Act.
Obtain all necessary licenses and permits: Once your company is registered, you’ll need to obtain all necessary licenses and permits to begin mining. This may include environmental permits, water and air discharge permits, as well as health and safety permits.
Develop the mine: After obtaining all necessary licenses and permits, you can begin the process of developing the mine. This includes setting up mining infrastructure, such as buildings, roads, and equipment.
Commence mining operations: Once your mine is developed, you can commence mining operations. This includes extracting the gold, processing it, and transporting it to a refining facility.
Compliance with labor laws: As an employer, the company must comply with labor laws, minimum wage and other labor regulations
Compliance with Tax laws: the company must comply with the country’s tax laws and pay its taxes accordingly.
Please note that these are general steps, and the specific requirements may vary depending on the location of the mine, the size of the mining project, and the type of mining being done. It is also important to consult with legal and mining experts as laws, regulations and procedures may change.
Furthermore, all necessary environmental studies, social impact assessments and mitigation plans should be done prior to commencing mining operations in Zimbabwe.
There are several ways that small-scale miners in Zimbabwe can come together and grow their gold mining businesses. Here are a few examples:
Form a cooperative: Small-scale miners can form a cooperative, which is a legal entity that allows them to pool their resources and work together. This can enable them to access larger capital, more advanced equipment, and other resources that would be difficult for individual miners to acquire on their own. It also gives them more bargaining power when dealing with buyers and regulators.
Join an association: Small-scale miners can also join an association, which is a group of miners that come together to advocate for their interests and lobby for favorable policies. These groups can provide support and guidance to miners, as well as representation in front of government agencies and other stakeholders.
Leverage technology: Small-scale miners can make use of advanced technologies to improve the efficiency and safety of their operations, such as using GPS and mapping technologies to locate mineral deposits, or using automated equipment to extract and process minerals.
Obtain certification: Small-scale miners can also obtain certification, which is a process that verifies that a miner is operating legally, ethically, and in compliance with environmental regulations. Certification can help small-scale miners access new markets and increase the value of their minerals.
Obtain finance: Small-scale miners can also try to access finance, either from banks, other financial institutions or from mining companies, this can help them to expand and improve their mining operations and access new markets.
Benefit from Government support: Government can provide support for small-scale miners by providing technical and financial assistance, introducing favorable policies and regulations and creating an enabling environment for small-scale mining to thrive.
It is important to note that these are examples, and the specific strategy will depend on the miner’s situation, the local context, and the available resources. The small-scale miners should also consult with relevant experts, such as mining engineers, business consultants, legal experts and others to guide them in making informed decisions.
Furthermore, the small-scale mining sector is also facing challenges related to illegal mining, environmental degradation and lack of formalization, so the strategy should take all of these factors into account.
The government of Zimbabwe has implemented various measures to support small-scale gold miners. Here are a few examples:
Formalization of small-scale mining: The government has implemented policies aimed at formalizing small-scale mining. This includes the issuance of mining claims and special grants, which allows small-scale miners to operate legally and access funding and other resources.
Financial support: The government has also provided financial support to small-scale gold miners through the Zimbabwe Miners Federation (ZMF), which is a government-controlled body that supports small-scale miners through grants and loans.
Technical Assistance: The government also provides technical assistance to small-scale miners through the Ministry of Mines and Mining Development, which offers training and capacity building programs to help miners improve the efficiency and safety of their operations.
Encouraging mining companies to partner with small-scale miners: The government also encourages large mining companies to partner with small-scale miners through programs such as the “Affordable Credit Facility for Small Scale Miners” which allows small scale miners access credit through partnered mining companies.
Tackling illegal mining: The government also takes steps to combat illegal mining and protect the rights of small-scale miners, for example, by deploying the Zimbabwe Republic Police to arrest illegal miners and confiscating their equipment.
It is important to note that while the government has implemented these policies to support small-scale gold miners, the sector still faces challenges such as weak infrastructure, lack of access to financing and equipment, and a difficult business environment.
Furthermore, small-scale gold miners face challenges related to the ongoing economic struggles, lack of clear policies, and corruption.
Source: Behaviour Report, Oscar Habeenzu
