Zimbabwe set to become World's platinum hub

HARARE – Zimbabwe, a country with 100000 per cent inflation, is all set to produce a million ounces of platinum a year in the next ten to 15 years.\r\n

That is the impact reforms sweeping the African nation now. The country has already changed its mining laws to attract foreign investment and mining giants are now lining up t tap the potential of Zimbabwe.

The country is currently producing at a rate of 170 000 oz/y and there were good prospects for growth.

The development of the Zimplats and Mimosa operations were examples of the progress that could be made by the Zimbabwe mining industry in a liberalised macroeconomic environment.

Zimbabwe hosts the second-largest known platinum reserves in the world. Besides the two operating platinum mines, there was one project in an advanced stage of mine development and five projects under exploration.

Zimbabwe’s platinum operations were relatively shallow with mining costs that were still relatively low.

After the mining laws were changed, mining companies were no longer obliged to surrender part of their foreign currency revenues to the government at subeconomical exchange rates.

Under Zimbabwe’s proposed indigenisation laws 51% ownership of all mines must pass to the government. However, recently the government said proposals for a change in the law would be submitted to Parliament soon.

Zimbabwean gold-mining companies, which are now free to sell their gold on the open market, are capable of producing at a rate of 50 t/y.