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1
OPPORTUNITIES FOR MINING SECTOR IN ZIMBABWE
PRESENTED BY
ALEX MHEMBERE
Outline
2
What is an opportunity?
Uses of minerals
Mineral Resources of Zimbabwe
Mining industry in Zimbabwe:
- Where from? and Where to?
Contribution of Minerals to Zimbabwe Economy
Opportunities in mining
WHAT IS AN OPPORTUNITY?
3
4
• The Oxford Advanced Learners Dictionary defines an opportunity as ‘a time when a
particular situation makes it possible to do or to achieve something’.
Opportunity is synonymous with: chance, lucky, good timing, right set of
circumstances, suitable moment, opportune occasion, an opening, window (of
opportunity).
In strategic management an opportunity arises when a company can take advantage
of conditions in its external environment to formulate and implement strategies that
enables it to earn higher profits or increase market share.
It is something one has a comparative advantage on, and not necessarily something new.
BIG NOE: AN OPPORTUNITY IS NEVER PERMANENT WHEREAS
OPPORTUNITIES NEVER END!!
USES OF MINERALS
(Pervasive across all forms of human life)5
6
Mining and Metals, Integral to Modern Society
Modern day communication
comes from mining:
Copper: 16 grams
Silver: 0.35 grams
Gold: 0.034 grams
Palladium: 0.015 grams
Platinum: 0.00034 grams
Indium
Titanium dioxide
Indium tin oxide
7
Mining and Metals, Integral to Modern Society
Even where we are or our
houses where we came from
mining is there:
Clay
Steel
Asbestos
Limestone
8
Mining and Metals, Integral to Modern Society
When you relax and watch
Ngezi Platinum or Man U
play, mining is there:
Quartz
Chromite
Copper
Platinum
Gold
Iron
9
Mining and Metals, Integral to Modern Society (Cont’d)
When you enjoy a bit of
luxury
Iron & steel: 900Kg
Aluminium: 120kg
Carbon: 22.7kg
Silicon: 19kg
Platinum: 0.4kg
Nickel: 4.1kg
Chromium: 6.8kg
Manganese: 7.7kg
Zinc: 10kg
Copper 19kg
Plus other trace elements
10
Even a bright smile comes from mining …….
Silica
Limestone
Aluminium
Phosphate
Fluoride
Titanium
Mica
Petroleum
11
…. And human beings conaume and have lots
of minerals!!
MINERAL RESOURCES OF ZIMBABWE
12
Many Cities & Towns owe their origin & existence to mining
13
Hwange
Mutare
MhanguraBindura
Shamva
Kwekwe
Zvishavane
Shurugwi
RencoGwanda
Kadoma
Redcliff
Shangani
Kamativi
Bikita
Mining industry in ZimbabweWhere are we coming from?
Where are we?
Where are we going?14
15
-
200.00
400.00
600.00
800.00
1,000.00
1,200.00
1,400.00
1,600.00
1,800.00
2,000.00
-
5,000
10,000
15,000
20,000
25,000
30,000
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Pro
j
Pri
ce (
US$
/ou
nce)
Pro
duct
ion
(Kg)
GOLD PRODUCTION vs PRICE
PRODUCTION PRICE
16
-
500.00
1,000.00
1,500.00
2,000.00
2,500.00
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017Proj
Pri
ce (
US$
/ou
nce)
Pro
duct
ion
(Kg)
PLATINUM PRODUCTION vs PRICE
PRODUCTION PRICE
17
-
5,000.00
10,000.00
15,000.00
20,000.00
25,000.00
30,000.00
35,000.00
40,000.00
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
e
Pri
ce (
US$
/M
ton)
Pro
duct
ion
(Ton
s)NICKEL PRODUCTION vs PRICE
PRODUCTION PRICE
18
-
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
-
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
e
Pri
ce (
US$
/M
ton)
Pro
duct
ion
(Ton
s)COAL PRODUCTION vs PRICE
PRODUCTION PRICE
19
-
20.00
40.00
60.00
80.00
100.00
120.00
140.00
160.00
180.00
200.00
-
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
1,800,000
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
Pri
ce (
US$
/M
ton)
Pro
duct
ion
(Ton
s)IRON ORE PRODUCTION vs PRICE
PRODUCTION PRICE
20
-
1.00
2.00
3.00
4.00
5.00
6.00
7.00
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
e
Pri
ce (
US$
/K
g)
Pro
duct
ion
(Ton
s)CHROME PRODUCTION vs PRICE
PRODUCTION PRICE
21
0
200
400
600
800
1000
1200
1400
1600
1800
2000
-50,000
-
50,000
100,000
150,000
200,000
250,000
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
e
Pri
ce (
US$
/M
ton)
Pro
duct
ion
(Ton
s)ASBESTOS PRODUCTION vs PRICE
PRODUCTION
0
2000
4000
6000
8000
10000
12000
14000
2009 2010 2011 2012 2013 2014 2015 2016 2017proj
Diamonds '000 carats
Mining Contribution to Zimbabwe Economy
23
Zimbabwe Value of Mineral Exports since 2009
0.5
0.7
0.9
1.1
1.3
1.5
1.7
1.9
2.1
2.3
2009 2010 2011 2012 2013 2014 2015 2016 2017 Proj
US$ Billion
Contribution to Total Mineral Exports
1993-2003 (%) 2004-2011 (%) 2012 - 2015(%) 2016
Gold 57.3 24.2 31% 48%
HCFeCr 20 10.7 8% 6%
Nickel 15.1 11.0 7% 7%
PGMS* 2.3 46.1 28% 33%
Diamonds 0.8 6.7 20% 5%
Others 6.8% 1.3% 6% 1%
25
RBZ, MOF, Zimstats
Exports by Category
2016 mining contribution by the numbers
26
Number of EMPLOYEES in mining GDP contribution
Minerals REVENUE generated
Mining FOREIGN CURRENCY
earnings as a percent of national exports
Mining FDI attraction as a percentage of
total national FDI receipts
Contribution to the FISCUS through taxation LOCAL PROCUREMENT of
products & services in mining
Mining spend towards CSR as a
percentage of revenue generated
Source: Chamber of Mines
of which
Top 10 Minerals and their contribution: More than 88% of the value of mineral output in 2016 was accounted for by 4 key minerals
(gold, platinum, palladium and nickel), with gold constituting 48% of total revenues.
48%
22%
11%
5%
7%4% 3%
Gold Platinum Palladium Diamond Nickel Coal Other
MINING OPPORTUNITITIES
28
Employment
29
Greenfield
30
In excess of 60 minerals known to exist
40 Minerals being extracted now or before
4 minerals contributing 88% of revenue
Plenty Opportunities!
Resuscitation & Organic Growth
31
Tin - Kamativi
Iron Ore and Steel - ZiscoSteel
Copper - Mhangura Mine
Ferrochrome Zim Alloys & Zimasco
Coal
Asbestos
Expansion & Growth all Mines!!!
Mergers & Acquisitions
32
Small scale and artisanal miners
Juniors
Majors
Conglomerates
OPPORTUNITIES GALORE
Value Addition and Beneficiation
33
PGMs: Smelters and refineries
Chrome: Smelters
Nickel: Smelters and refineries
Diamonds: Cutting and polishing
Iron Ore: Steel manufacture and fabrication
34
Trading in Mineral Stock Exchanges - LME.
Capital Raising & Trading
Mineral Stock Exchange -Toronto
35
Industrial Linkages
Supply of services, e.g. Auditing, Advisory, catering engineering
medical, etc etc.
Supply of capital goods and consumables
Construction,
Power,
Chemical
Explosive
Oils & Lubricants
Fuels
Sustainability
36
Local Enterprise Development
Corporate Social Investment
Indigenization and economic empowerment
Environment and sustainable mining
How Do we identify Opportunities
37
Several Processes & Models available
Personal Networks
Harvard 5Cs Model:
Circumstance, Context, Constraints, Compensating behaviours, Criteria.
Linda Kazares 7-Step Model
Focus on core product
Keep your pitch simple
Stay true to who you are
Map it
Utilize marketing tools that work best for you
Develop a plan of action
Execute
- Do what works for you
- Do what creates value38
39
THANK YOU
.
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