Mthuli Ncube to rescue closed mines

Mthuli Ncube to rescue closed mines
Published: 21 July 2019 (129 Views)
The government is considering a duty waiver for closed mines to allow them to retool, Finance minister Mthuli Ncube has said.

Ncube said allowing the struggling mines to import equipment duty-free would complement efforts to revive the mining sector.

He said this would entail giving defunct mines national project status.

"The country stands to benefit a lot in terms of employment, incomes and fiscal revenue, among others, by resuscitating a number of closed and distressed mines located in various parts of the country," Ncube said through his director for economic planning and modelling Charles Mujajati at the Mine Entra conference held in Bulawayo last week.

"Government is committed to offer full support for the resuscitation of such mining companies, including awarding them national project status where necessary, as well as fiscal incentives, which will allow duty-free importation of equipment, thereby facilitating the resumption of operations."

Ncube said these were mines that were affected by the decade- long economic crisis in Zimbabwe and the global financial crisis, which saw prices of metals tumbling.

Some of the closed mines include Alaska, Mhangura, Silverside, Shackleton, Golden Kopje, Falcon Gold, Giant and Elvington Gold mines among others.

Ncube said Zimbabwe had a potential to generate substantial revenue from the mining sector

"Deriving such benefits, however, largely depends on investment and other support for the sector. Such potential is in respect of minerals such as platinum, gold, lithium and other metals," he said.

The minister said the long overdue amendment of the Mines and Minerals Act continued to obstruct new exploration and investment in the sector.

He also bemoaned delays in the release of mining claims being held for speculative purposes.

Ncube said the mining sector had contributed an average of 6,2% to the gross domestic product (GDP) between 2009 and 2015 and 8,4% from 2016 to 2018.

Mining contribution increased in 2017 and 2018 to 9,2% and 10,1% respectively.

"Prospects to maintain the average contribution to GDP have, however, been hampered by depressed international prices for other minerals and to some extent power, fuel and foreign currency shortages," Ncube said.

The mining sector is also the biggest contributor to export earnings.

For instance, the contribution of the mining sector to total exports increased from an average of 48% from 2009 to 2013, and increased to an average of about 53% from 2014 to 2018.

The major exports were dominated by gold, diamonds, platinum group of minerals and other minerals like nickel.

"The sector has the potential to contribute much higher, more so, if leakages are minimised," Ncube added.

- the standard

 0

You May Like These Videos

Comments

There are no comments.

Latest stories

Patrick Zhuwao reveals how Mnangagwa captured the judiciary

by Patrick Zhuwao | 26 August 2019 | 93 Views

New fuel prices for different cities announced

by Mandla Ndlovu | 26 August 2019 | 97 Views

Cain Mathema and Police Boss challenged over abductions

by Mandla Ndlovu | 26 August 2019 | 60 Views

Food relief for urban poor

by Staff reporter | 26 August 2019 | 57 Views

'Sanctions stifle Zimbabwe reforms'

by Staff reporter | 26 August 2019 | 48 Views

Sasai, Ecocash bureau de change to marry

by Staff reporter | 26 August 2019 | 47 Views

Govt reviews 60 IPP licences

by Staff reporter | 26 August 2019 | 50 Views

Protests warning for MDC-Alliance

by Staff reporter | 26 August 2019 | 72 Views

US comedian Steve Harvey in Victoria Falls?

by Staff reporter | 26 August 2019 | 48 Views

Dynamos, Chicken Inn in stalemate

by Staff reporter | 26 August 2019 | 44 Views

Mangudya's Treasury Bills get massive investor thumbs up

by Staff reporter | 26 August 2019 | 38 Views

Zimbabwe eyes more power imports from Mozambique

by Staff reporter | 26 August 2019 | 62 Views

Matabeleland North teachers' college set up in Hwange

by Staff reporter | 26 August 2019 | 44 Views

NGO dismisses Zimbabwe abduction claims

by Staff reporter | 26 August 2019 | 48 Views

Man stones elderly beerhall patron

by Staff reporter | 26 August 2019 | 42 Views

Deadly xenophobic attacks against truck drivers in South Africa

by Mandla Ndlovu | 26 August 2019 | 49 Views

Government commissions US$5m Zimsec printing press

by Staff reporter | 26 August 2019 | 39 Views

Pair steals US$2 300 from cars

by Staff reporter | 26 August 2019 | 39 Views

'ZCTU will protest until Mnangagwa listens'

by Staff reporter | 26 August 2019 | 34 Views

Zimbabwe lithium mine secures power supply

by newZWire | 26 August 2019 | 36 Views

Zanu-PF MP threatens Silobela miner

by Staff reporter | 26 August 2019 | 28 Views

BCC to disconnect defaulters

by Staff reporter | 26 August 2019 | 28 Views

MDC calls for regional intervention

by Staff reporter | 26 August 2019 | 28 Views

Municipalities revenue collection bid dealt blow

by Staff reporter | 26 August 2019 | 27 Views

Glen View new battlefield for Chamisa, Mnangagwa

by Staff reporter | 26 August 2019 | 23 Views

Mutare probes MDC, Zanu-PF councillors over stands

by Staff reporter | 26 August 2019 | 33 Views

'Glen View South litmus test for Mnangagwa'

by Staff reporter | 26 August 2019 | 24 Views

Zanu-PF Youth League in door-to-door campaign

by Staff reporter | 26 August 2019 | 34 Views

UN looks into Zimbabwe rights abuses

by Staff reporter | 26 August 2019 | 29 Views

Zanu-PF congratulates Mnangagwa

by Zanu-PF | 25 August 2019 | 67 Views

Harare-Chirundu highway project begins

by Staff reporter | 25 August 2019 | 65 Views

Little change one year on from Mnangagwa's inauguration

by Bill Corcoran in Cape Town | 25 August 2019 | 74 Views

He taught us to listen, not simply hear

by Thomas Tondorindo Murisa | 25 August 2019 | 75 Views

Police State

by Zimbabwe Vigil Diary | 25 August 2019 | 64 Views