Zimbabwe: Govt Ready to Parcel Out Iron Ore Concessions

19 December 2016

Government is prepared to parcel out some iron ore concessions to investors willing to set up mines and smelters, Mines and Mining Development Minister Walter Chidhakwa said.It is estimated that Zimbabwe has 30 billion tonnes of iron ore reserves, with the bulk of the concessions held by the Government through Buchwa Iron Mining Company.

Before the closure of Zimbabwe Iron and Steel Company, BIMCO was exploiting the Ripple Creek mine, which provided iron ore and limestone as feeds to ZISCO steelworks.

“The Government is prepared to consider applications provided they are in line with Government policies and our National Development Plan,” said Minister Chidhakwa.

In terms of the law, foreign investors are prohibited from owning more than 49 percent shareholding in companies exploiting natural resources. And in line with the Zim-Asset, miners are encouraged to set up to beneficiation facilities to boost earnings from mineral.

Iron ore has remained one of the unexploited base mineral in Zimbabwe, despite holding immense potential to turnaround the fortunes of the economy.

The international price of iron ore broke through the $80 a tonne barrier last Friday, up from $38 per tonne at the end of last year, although still below the peak of $182 a tonne in 2010.

Source – All Africa