New Zimbabwe.com

Mining sector says needs $400m for 2018 operations

THE mining sector requires at least $392 million to sustain its operations in 2018, the Chamber of Mines of Zimbabwe has revealed.
In its 2017 State of the Mining Survey Report which was unveiled in Harare at the weekend, the chamber noted that most mining concerns struggled to raise capital to fund their operations due to the liquidity crunch in the country.
The capital intensive industry, however, still managed to record positives despite the challenges.
Minerals such as Chrome, Platinum Group Metals, gold, nickel and coal performed well this year.
“All respondents indicated that they faced difficulties in raising capital for both sustenance and ramp-up.
“However, the mining industry injected US$211 million in 2017 for both sustenance and ramp-up. The industry requires around US$392 million in 2018 to sustain operations,” said Professor Albert Makochekanwa, the lead consultant.
The chamber also revealed that the crippling power outages continued to blight the sector, a development which had a negative impact on mineral output.
“All respondents indicated that power outages were negatively impacting on their operations resulting in output losses. In times of power outages, respondents indicated that they would use diesel powered generators which are expensive to run.
“Demand for electricity is anticipated to increase to 2.2 million MWh in 2018, from 1.7 million MWh in 2017 (29.4% increase),” revealed Prof Makochekanwa.
Presenting the 2018 national budget statement in Parliament last week, Finance Minister Patrick Chinamasa said the mining industry was expected to grow to $2.5 billion in 2018 up from 2.3 billion in 2017.
 Advertisement