Zim’s mining sector on right path despite shocks – Caledonia Mining Corporation CEO

By Stanley James, Business Editor

A leading local gold producer, Caledonia Mining, has described Zimbabwe’s mining sector reforms as having started to achieve meaningful results.

The Jersey Channel Islands-headquartered company, has invested millions of dollars during the past few years at its Zimbabwean Gwanda-based gold producing unit, Blanket Mine.

For the company’s Chief Executive Officer, Mr Steve Curtis, it is the ongoing reforms in the mining sector by the Second Republic that are accelerating their growth.

“Incentives whereby retention can reach 80 percent, including 100 percent for export processing zones firms, including a 100 percent retention on incremental receipts for exporters listed on the Victoria Falls Stock Exchange, bear testimony of how commitment is being offered to the growth of the resource extraction industry,” he said.

Mr Curtis, who retires from the mining company by June this year, however cited some issues that still need to be resolved for the mining sector to regain its full potential.

“High costs, power shortages, certainty and stability are key to the overall recovery of the sector,” he added.

The mining sector is a critical driver of economic development, accounting for more than 60 percent of export receipts yearly and 13 percent of the country’s Gross Domestic Product (GDP).

In a related development, Mr Curtis highlighted that Blanket Mine will forge ahead with its solar mine plant investment in order to harness more power.

He also noted that the gold mining entity is eyeing over 80 000 ounces of the yellow metal during the course of this year, based on improved resource extractive commodity global prices.

Mr Curtis also thanked the relevant authorities for ensuring a smooth repatriation of profits as well as enabling the company to benefit from the current export incentives.

For a mining entity that is listed on the New York Stock Exchange, London Stock Exchange and the Victoria Falls Stock Exchange, the Zimbabwean gold mining operating unit is also being considered strategic in terms of raising more capital for growth.

According to the Ministry of Mines and Mining Development, over US$5 billion was realised by the mining industry from exports last year.

Leave a Reply

%d bloggers like this: