By Stanley James
THE Chamber of Mines has predicted that Zimbabwe’s mineral growth for the year will surpass the government’s target of eight percent due to competitive prices on the global market.
A Chamber of Mines post-Covid-19 report shows that mining executives are already in the process of ramping up production on the back of favourable commodity prices on the global market, as most economies recover from the Covid-19 pandemic.
The Zimbabwe Chamber of Mines states in a statement that average capacity utilisation in the mining industry will reach 83 percent this year from 80 percent last year.
Several minerals are also expected to recover, leading to improved export earnings of over US$5 billion.
However, the Chamber of Mines noted that growth will depend on adequate foreign currency allocations for the mining sector.
Increased foreign exchange retention for mineral export receipts including solving high-cost structures as well as improved power supplies are factors cited as key to growth.
An improved operating climate for the mining sector is also noted by the chamber of mines as important in ensuring miners benefit from the current commodity price boom.