2016 Minerals Yearbook ZIMBABWE [ADVANCE RELEASE] U.S. Department of the Interior February 2020 U.S. Geological Survey The Mineral Industry of Zimbabwe By James J. Barry Zimbabwe’s real gross domestic product (GDP) increased Production by 2.3% in 2016 compared with a 0.6% rate of growth in 2015. The real GDP at market prices was about $14.2 billion in 2016. In 2016, production for a number of mineral commodities Zimbabwe’s mineral output included an estimated 7.8% of the increased owing largely to higher global prices, including world’s platinum production, an estimated 5.7% of the world’s production of nitrogen, which increased by 167%; PGMs, 21%; palladium output, and about 1.7% of the world’s diamond cement and cobalt, 15% each; gold and silver, 14% each; copper, production (by weight). The country was the world’s third- 11%; and nickel in concentrate, 10%. Production decreased for ranked producer of platinum, fifth-ranked producer of palladium, the following mineral commodities: coal (bituminous), by 62%; and eighth-ranked producer of diamond. Zimbabwe had the coke, 50%; diamond (gem and industrial), 40%; ferrochromium, world’s third largest platinum-group-metal (PGM) reserves 32%; and graphite, 12%. Reported and estimated production for (Kimberley Process Certification Scheme, 2017; Zimbabwe the other commodities produced was relatively unchanged. Data National Statistics Agency, 2017, p. 21; Loferski, 2018). on mineral production are in table 1. Minerals in the National Economy Structure of the Mineral Industry In 2016, the mining and quarrying sector accounted for about Domestic and international investment companies, domestic 9.9% of real GDP. Owing to higher prices, real GDP growth in and international mining companies, Government-owned the mining and quarrying sector was 8.2%, making the sector companies, mining cooperatives, multinational cement the second highest performing sector in the country. In 2015 companies, and small-scale miners conducted mineral operations (the most recent year for which data were available), minerals in Zimbabwe in 2016. With some negotiated exceptions, accounted for about 55% of the total value of exports; gold, ownership of mineral operations in Zimbabwe by domestic or PGMs, nickel, and diamond accounted for about 20%, 17%, international nonindigenous corporations or people was limited 8%, and 5%, respectively, of the total value of exports, and such by statute. State-owned companies involved in the mineral fuel products as diesel and gasoline were projected to account sector included MMCZ, Zimbabwe Mining Development Corp. for a combined 19% of total imports. For 2016, the formal (ZMDC) and its subsidiaries, and subsidiaries of the state-owned mining and quarrying sector accounted for an annual average Industrial Development Corp. of Zimbabwe, which produced of about 36,300 employees (Reserve Bank of Zimbabwe, 2015; industrial minerals and mineral-based commodities. Table 2 is a Zimbabwe National Statistics Agency, 2017, p. 13, 21). list of major mineral industry facilities. The Ministry of Mines and Mining Development manages the Commodity Review mineral sector in accordance with the Mines and Minerals Act (chapter 21:05); the Mining (General) Regulations, 1977; and Metals their amendments. Licensing and regulation of the petroleum industry are covered under the Petroleum Act of 2001, although Chromium and Ferroalloys.—In 2011, the Government the country was not producing petroleum. Mining operations reinstated its ban on the export of chromite ore, including are regulated by numerous other acts, amendments, regulations, briquets and concentrate. The ban was instituted to encourage statutory instruments, and general notices. In accordance with the construction of new smelters, which would allow Zimbabwe the Minerals Marketing Corp. of Zimbabwe Act [as modified to export value-added ferrochromium instead of chromite by the Minerals Marketing Corp. (Exemption) Regulations, ore. In June 2015, the Government lifted the ban owing to the 1983, and the Precious Stones Trade Act, 1978], state-owned adverse effect that it was having on artisanal producers and Minerals Marketing Corp. of Zimbabwe (MMCZ) officially because it did not generate new domestic smelting operations. marketed much of the mineral production of Zimbabwe. A Additionally, the Government removed a 20% export tax notable exception was PGMs. Mining companies that produced on chromite. As a result, chromite production in 2016 was PGM concentrates and smelter matte in Zimbabwe shipped the estimated to have increased to 225,000 metric tons (t) from PGM concentrates and matte directly to processing facilities in 208,328 t in 2015. Ferrochromium production decreased sharply South Africa. Corporate income taxes ranging from 15% to 25% as a result of low prices on the world market. The low price and mining royalties of 1% to 15%, which were based on the for ferrochromium caused Zimbabwe Mining and Smelting value of minerals or mineral-bearing products that were shipped Co. (Zimasco), which was Zimbabwe’s leading ferrochromium from mine sites, were payable to the Zimbabwe Revenue producer, to be deeply in debt, and it was placed under judicial Authority (Ministry of Mines and Mining Development, 2004, management in June. A court-appointed judicial manager was in 2016; Chamber of Mines of Zimbabwe, 2017b). the process of reviewing the business and operations of Zimasco to restructure the company (table 1; Chidakwa, 2015; Lovemore and Mangisi, 2015; Mhlanga, 2016; Zimbabwe Independent, 2016; Chamber of Mines of Zimbabwe, 2017a, p. 29). ZIMBABWE—2016 [ADVANCE RELEASE] 42.1 Copper and Nickel.—In 2016, Zimbabwe’s copper Marange diamond field. Diamond remained in the underlying production increased to 9,101 t of copper in concentrate from conglomerate rock; however, some companies mining in the 8,218 t in 2015 and nickel production to 17,743 t of nickel in field had shut down operations, as extraction of most of the concentrate from 16,109 t in 2015, which was an increase of diamond was no longer economically feasible. In October 2015, about 10%. Most of Zimbabwe’s copper and nickel production the Government declared all licenses in the Marange diamond came from the Trojan Mine which was owned by Bindura field expired. This was done as part of the Government’s efforts Nickel Corp. Ltd. (a subsidiary of ASA Resources Group PLC to consolidate the diamond-mining companies to increase of the United Kingdom). The Trojan Mine is located about 100 economies of scale and enable continued and more efficient kilometers (km) northeast of Bulawayo. Copper and nickel were production of diamond. The consolidation would merge all also produced as joint products of PGM production. Bindura diamond producers into the Zimbabwe Consolidated Diamond Nickel attributed the increased production to a new mining Corp. (ZCDC). In February 2016, through the ZCDC, the strategy at Trojan, which consisted of mining higher grade ore at Government took full control of all Marange diamond mining lesser amounts (table 1; ASA Resource Group PLC, 2017a, p. 6, operations. As a result, many of the mines were not producing 42–43; 2017b). throughout 2016 (table 1; Zimnisky, 2014; Mangudhla, 2015; Platinum-Group Metals.—In 2016, the increase in platinum- Marawanyika, 2016; Kazunga, 2017). group metal (PGM) production was in large part attributed to higher prices for the metals. Palladium production was Outlook 12,222 kilograms (kg) compared with 10,055 kg in 2015, and Zimbabwe has abundant mineral resources and a well- platinum production was 15,110 kg compared with 12,564 kg in developed transportation system. The country could benefit from 2015. Zimbabwe had the third largest PGM reserves in the world, the additional PGM output of the Mupani and the Darwendale after Russia and South Africa. Two notable advanced-stage mining projects currently under development, as well as from projects were underway that could increase the country’s PGM the resumption of diamond production at the Marange diamond production. In November, Zimplats Holdings Ltd. (Zimplats), field. Additional rehabilitation of the mineral industry and which was a subsidiary of Impala Platinum Holdings Ltd. of the expansion of production could be a basis for the growth South Africa, announced that it was developing the Mupani Mine of Zimbabwe’s GDP; however, mineral sector activities are in northern Zimbabwe in Mashonaland West Province. Zimplats expected to continue to be constrained by ongoing political completed a bankable feasibility study for the development of the issues that were discouraging investment; export taxes on $264 million mine, which was expected to reach full production chromium, diamond, and platinum; and bans on exports of in 2025. The mine was expected to produce 2.2 million metric raw minerals. Shortages of electrical power, fuel, and skilled tons per year of ore during 25 years of operation. Also in employees also are expected to continue to adversely affect November, Great Dyke Investments (Pvt) Ltd. (GDI), a joint mineral sector operations in the near term. venture of JSC Afrommet of Russia (50%) and Peneast Mining Company (Pvt) Ltd. (50%), completed a bankable feasibility References Cited study on the Darwendale integrated PGM project located about 65 km west of Harare in Mashonaland West Province. GDI ASA Resource Group PLC, 2017a, Annual report 2016: London, United Kingdom, reported that the total resource of the deposit was approximately ASA Resource Group PLC, August 20, 116 p.