International investors should raise any issues they have with policy directly with the responsible ministry as opposed to relying on other sources outside of government.

Speaking to sixty international investors at the 2014 Mining Indaba side event organised by strategy consultancy africapractice and law firm Webber Wentzel, Zimbabwe’s Minister of Mines and Mining Development, Walter Chidhakwa encouraged an open door approach, signalling that his ministry is open to communication.

In addition, Minister Chidhakwa challenged mining companies to approach the mining ministry with mutually beneficial solutions on how companies can meet profit-oriented shareholder obligations, whilst empowering the Zimbabwean people. The minister was part of a panel that included Mathius Tongofa, the Deputy Deputy Minister of Youth, Indigenisation and Economic Empowerment, Alex Mhembere, the President of the Chamber of Mines and Zimplats CEO, Gary McMahon, Senior Mining Specialist, World Bank.   The side event was organised as a platform to provide clarity to international investors on mining policy and government’s direction on the implementation. President of the Zimbabwe Chamber of Mines and Zimplats CEO, Alex Mhembere, echoed the Minister’s sentiments, saying that the industry was in full support of government’s initiatives to use the mining industry as a catalyst for growth in other sectors of the economy and increase local beneficiation. 

He added that industry, particularly the platinum mining sector was reaching the 500,000 oz. output level that would make refinery construction commercially viable and that discussions with the government on implementation was ongoing. Gary McMahon from the World Bank highlighted the importance of downstream benefits that the mining industry could provide, indicating that in some countries, service providers to the mining sector contributed more than 60% to the sector’s economic output.Mr. McMahon indicated that the institution was currently working on a study on how Zimbabwe’s mining sector could play a bigger role in growing industries in the mining supply chain.  The findings of this study and recommendations will be presented to government.

Commenting on the discussions, event organiser, Rishon Chimboza of africapractice said, “The largest investors in Zimbabwe and senior representatives from some of the world’s largest mining companies and financial institutions attended the event. It’s encouraging that in spite of the negative publicity that the country sometimes receives, there is still keen interest from international investors on Zimbabwe opportunities.”  Mr Chimboza continued, “…going forward we certainly expect to see more direct dialogue between the international investors and the ministry to avoid confusion on the country’s laws and regulations.”