Govt prioritises resuscitation of closed mines

Harare (New Ziana) – The resuscitation of old mines will be prioritised next year to increase the country’s mineral output in pursuit of government’s plan to achieve a US$ 12 billion mining industry by 2023.

Finance and Economic Development Minister Professor Mthuli Ncube said the 2021 budget would provide funds for the plan.

“In order to promote and increase investments in the mining sector, the Ministry of Mines and Mining Development will pursue resuscitation of old mines in 2021 including the Shabanie (asbestos) Mine,” he said.

“In this regard, the Budget allocates ZWL$131.4 million towards resuscitation of old mines and opening new mines to increase investment in the mining sector.”

Ncube said the resuscitation of another sleeping giant, ZiscoSteel would also be prioritised.

He said ZiscoSteel was a key enabler for economic growth through its potential for massive job creation and value chain impact on companies including the National Railways of Zimbabwe and Hwange
Colliery.

“The resultant savings in foreign currency (would be) in excess of US$1 billion through importation of steel products,” he said.

“In 2021, government will resuscitate ZiscoSteel through innovation and harnessing inward opportunities, while working closely with local investors. This will be done through courting new investors who will bring new technology and new skills.

“While the search for new investors is in progress, Government is currently implementing a short-term roadmap of resuscitating the firm’s subsidiaries which include ZimChem, Lancashire Steel, and Buchwa Iron Mining Company (Bimco) among others.”

He added: “Meanwhile, current operations are targeted at raising capital through the sale of waste and boulders, among other activities, while plans are underway to resuscitate the mills to restart the manufacturing processes which are expected to benefit Lancashire Steel.”
New Ziana