The Zimbabwean government has earmarked the mining sector to reach a 12-billion-U.S. dollar market value by 2023, as gold production expected to fuel the ambitious mining sector growth.
Speaking on Wednesday during a tour of Shamva Gold Mine, about 70 km outside Harare, Minister of Mines and Mining Development Winston Chitando expressed confidence in the mining sector’s ability to achieve the ambitious vision which will quadruple the country’s mining sector value.
“And that vision is in the process of being achieved day by day, brick by brick, it’s in the process of being achieved. The mining industry has been given a milestone of being a 12 billion industry by the year 2023,” Chitando said.
Shamva Gold Mine is the largest gold producer in the country and is projected to produce 400 kilograms of gold bullion per month, which translates into about 5 tons of gold per year.
Gold is earmarked to contribute about 4 billion U.S. dollars to the 12 billion dollar target.
Shamva Gold Mine reopened after local investor, Landela Mining Venture, acquired and injected fresh capital into the business, previously owned by Metallon Corporation, one of the country’s largest gold mining companies.
Since re-opening, production at the mine, which is one of Zimbabwe’s largest gold producers, has gone from 16,000 tons in July to a record 31,000 tons in October.
Zimbabwe sees the mining sector as the main driver of the economy. The mining sector operations accounted for over 60 percent of Zimbabwe’s foreign currency receipts in 2019, with the mining sector contributing around 16 percent of national GDP, according to the Chamber of Mines.
Zimbabwe expects its economy to expand by 7.4 percent in 2021 from a projected contraction of 4.5 percent this year due to the effects of the COVID-19 pandemic.