Zimbabwe risks missing its ambitious target of making the nation’s mining industry a US$12 billion industry by 2023 as it has already missed its US$3.7 billion mineral sales targets for the 11 months of 2022.
Sales were just under US$3 billion as of October 2022 mainly due to commodity prices underperforming in the period under review, NewsDay reported citing Minerals Marketing Corporation of Zimbabwe (MMCZ) general manager Tongai Muzenda. He is quoted as saying:
Up to the end of November 2022 total sales excluding gold which is under the purview of FPR, were close to US$3 billion up to the end of November which is lower than budgeted for. We had hoped to get up to US$3,7 billion by the end of November.
But if you compare to last year we were very close although we are still below, last year we were just over US$3 billion for sales.
Generally the market has been low on most of our minerals, on ferrochrome and chrome, for example, and buying interest was quite low against the backdrop of a reduction in stainless steel production.
Muzenda said the biggest contributor was the platinum group of metals (PGMs), coal and its products such as coke.
He said the smaller contributors included iron, manganese, copper and steel products.
He added that global supply for the platinum group of metals was expected to be 9% lower in 2022 compared to 2021. Muzenda also said platinum demand and prices appear to be on course to recovery and the highest is rhodium.
Gold and other minerals combined could rake in an estimated US$5.1 billion in 2022.