HARARE (miningweekly.com) – The Minerals Marketing Corporation of Zimbabwe (MMCZ) expects mineral export revenue to increase from $1.2-billion to at least $6-billion a year by 2018, a forecast based on continuing mineral discoveries and firming prices on the international market.

MMCZ chairperson Chris Mutsvangwa says the parastatal recently concluded a review of mining receipts and believes that the growth target can be achieved in the next five years. This is despite widespread reservations from players in the mining industry, who argue that, despite the revival of the sector to a point where it has become the driver of national economic growth, companies still face serious problems in accessing funds to inject into their operations.

“We have high-value minerals, such as diamonds, gold and platinum, and we continue to discover more diamonds fields,” says Mutsvangwa.

The MMCZ chairperson says the tightening of export regulations and stemming of the illegal trade in precious minerals will help increase mineral export earnings. He adds that the illegal trade in precious stones like gold and diamonds has been identified among the causes of revenue leakages.

The MMCZ says it is engaged in discussions with the Ministry of Mines and Mining Development to find ways of legalising and formalising the operations of small-scale miners in the gold, chrome and diamond sectors because they are “primarily responsible for using illegal channels to sell and export minerals”.

However, the Chamber of Mines says that, despite gains made by the mining industry since March 2009 – when a government of national unity was installed – the sector is still facing many problems and requires $6-billion for recapitalisation, with the bulk of the funds needed for reviving and stabilising operations, refurbishing processing plants and buying new equipment and machinery.

The sector is also hamstrung by a hostile operating environment, inadequate or rundown infrastructure and the controversial indigenisation and economic empowerment push.

Chamber of Mines immediate past president Winston Chitando says that, despite Zimbabwe’s being blessed with mineral resources, the sector is compromised by government policies that hinder its development. “Mining companies need to operate profitably, like any other company. But it is the economics of the country that must be correct if profits are to be achieved. Economics will determine the extent and level of resources to be extracted.”