Matabeleland North in Zimbabwe is targeting to give at least US $1bn from coal income to the Government in an effort to attain the national target of growing mining to a US $12bn industry by 2023. This is according to a senior official.
The Minister of State for Provincial Affairs Richard Moyo said this to a Chamber of Mines of Zimbabwe annual conference in Victoria Falls. He added that his province acknowledged the contribution of mining to economic development of the country.
Coal is one of the two biggest energy sources in Zimbabwe. Mining is important to Zimbabwe’s objective to develop economically. The sector accounts for over 60% of the country’s export proceeds and 16% of gross domestic product (GDP).
Zimbabwe’s second biggest power plant, Hwange Power Station, now produces about 550MW when running optimally, but its rated volume is 920MW, which is disadvantaged by advanced age.
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In the midst of frequent power issues, the government has contracted Sinohydro to take up a US $1.5bn capacity extension to adjoin 600MW and another US $300m to take care of refurbishments. As of 2018, Zimbabwe ranked 38th in terms of biggest fossil fuel deposits with 553 million tonnes of confirmed coal reserves.
Minister Moyo said that Matabeleland North province is expected to play a pivotal role in the implementation of the National Development (NDS1), ultimately feeding into the country’s vision of becoming an upper middle income country by 2030.
“My province is looking at mining providing the impetus for (national) economic development; we are going to leverage on the geological (mineral) endowments that are within my province,” he said.
According to him, Matabeleland North Province had an upper hand in helping with the realization of growing the mining industry to US $12bn by fall of 2023.
“We are expecting coal to contribute US $1bn towards the set target of US $12bn mining industry targeted by year 2023, as a province we are making concerted effort to increase the capacity of coal and coke production from existing collieries,” he said.
The minister emphasized on the importance of minerals as finite resources saying they should be exploited optimally as this will enhance economic development and growth.
