Introduction

• To ascertain industry opinion on mining policy, questionnaires were sent to mining company executives.
• The response was poor and while some of the content of the responses was very informative, in the realm of mining policy, very little was learned.

INTRODUCTION

• Growing evidence that the mining sector forms a large source of government revenues and highest contributor in terms of FDI in most mining countries;
• Mineral production generates income and foreign exchange through exports, and can stimulate local economies through the local purchase of inputs;
• The historical importance of mining in the economic development of Zimbabwe is considerable and well documented (see Paul Jordan et.al, ZEPARU 2012):
• e.g Infrastructural; Human Capital; Institutional Development;

Definition of a fiscal regime

•  A mining fiscal regime - methods of revenue collection and expenditures by Government applied to the mining sector including (in Demand Media, Inc., 1999-2013; see in Gocht et al,1988, p.123)
• focus on mining taxation only. 

Beneficiation defined

• Beneficiation or value added processing is defined as the processes and steps taken to transform primary mineral commodities into an intermediate or finished end market
• product with higher value than otherwise when exported in its raw form.
• Key term: VALUE ADDITION
• Identified as a priority action plan to transform the economic growth within the ZIM ASSET framework.

The Platinum Group Metals:
Some considerations Some considerations

• low ROM grade of a few parts per million, ,
•  complex mineralogy and precise mineral liberation requirements,
•  complex chemistry in separation and purification
• presence of deleterious trace elements (As, Pb,Zn, Se and Te),
• Refractory gangue,
•  need for SO2 scrubbing from processes gases
• during smelting,
•  effluent streams in the refinery,
•  long pipeline processing times long pipeline processing times,
• unique health, safety and security requirements

Definition of Beneficiation
 “Transformation of a mineral (or a combination of minerals) to a higher value product which can either be consumed locally or exported”
Definition of Market Development
 “Creation of technologies/products/processes to transform a mineral (or a combination of minerals) to a higher value product”

History of Iron & Steel Production in Zimbabwe (ZISCO)

• 1938 – First Iron and Steel production on a commercial scale commences when a electric arc furnace with a capacity of 12 000 tonnes was imported by private individuals in Bulawayo
• 1942 - Colonial government established Rhodesia Iron and Steel Commission(RISCOM) to take over all iron and steel production in the country (nationalisation)-based on the iron and
• limestone deposits at Redcliff
• 1948 - No. 1 Blast Furnace at Redcliff commissioned plus a 25 ton open-hearth furnace and rod mill capable of producing 10-inch, and 21-inch rods
•  1954 - No. 2 Blast Furnace installed following 7 years of loss-making related to scale and skills.Loss making continued despite increase in capacity and recruitment of personnel from abroad
• 1956 - Loss making situation turned into profit mainly as a result of increased market share
• following the formation of the Federation of Rhodesia and Nyasaland

The Basic Premise

•  Zimbabwe is endowed with the key constituents of stainless steel
  •  Nickel
  •  Chrome
  • Iron
• Zimbabwe has a history as a steelmaker
• Stainless steel has great future growth potential and has many niche markets
• Development of such an industry clearly fits with a beneficiation strategy

Agenda

•  Murowa and Rio Tinto Diamonds
  • A globally integrated diamond business
• Global production overview
• Value chain and manufacturing overview
  • A promising industry in constant transition
•  India
  • Current powerhouse of diamond manufacturing
• Key success factors to sustaining a polishing industry in Zimbabwe

WHAT IS COAL

• A solid fossil fuel deposit formed from remains of vegetative matter which was buried and underwent physical-chemical changes in response to increasing temperature , pressure and time.
• Coal is not a homogeneous material but is made up of two main components:
  •  a number of microscopic organic constituents (macerals – the building blocks);
  • and inorganic constituents (minerals)