CUMULATIVE mineral sales dropped by about a fifth to US$2,6 billion in the first 11 months of the year owing to a volatile global commodity market, it has been revealed.
Growing geopolitical tensions in the Middle East and Europe, as well as major western nations facing inflationary pressures, led to volatile commodity prices.
While the Mineral Marketing Corporation of Zimbabwe (MMCZ) recorded higher mineral volumes being sold in the first 11 months of the year, these sales translated to lower revenue owing to reduced prices.
MMCZ is a State-owned entity tasked with the control and regulation of the export, sale and stockpiling of minerals and is supposed to provide for matters incidental to or connected with the foregoing.
“In the first 11 months of the year, cumulative mineral sales of 3,9 million metric tonnes valued at US$2,6 billion were recorded. This is compared to a total of 3,2 million metric tonnes valued at US$3 billion that was sold for the same period last year,” MMCZ finance manager Arthur Gwarimbo said, at an end-of-year media cocktail held in Harare on Friday last week.
“The decline in value and volume terms is attributed to depressed global mineral prices, a phenomenon that deepened in the period under review. Our top three performers remain unchanged with platinum group metals (PGMs) and lithium dominating mineral exports.”
In the period under review, the PGMs raked in US$1,3 billion.
Lithium came in second with exports of US$457 million and high-carbon ferrochrome (ferro alloys) with US$311,5 million.
- Mineral sales drop to US$2,6bn in 11 months
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“Of course, going forward, we have plans to enhance research and development, upscale efforts to account for mineral resources and pursue development of new markets in uncharted territories,” Gwarimbo said.
He noted that MMCZ’s 2024 strategic plan was aligned with the objectives of the National Development Strategy 1, particularly in promoting value addition and beneficiation, accounting for mineral resources and increasing revenue.
“MMCZ procured drones to enhance mineral resource accounting through the use of technology. Personnel in the monitoring and inspectorate teams were trained in the use and application of drone technology, a development anticipated to enhance mineral resource accounting,” Gwarimbo said.
“The delivery of the ICP-OES to the Department of Metallurgy funded by the corporation will assist government in reducing mineral leakages due to false declarations of quality of exports. Installation and training are anticipated to be completed before the close of the quarter.”
He said MMCZ intensfield efforts to curb mineral leakages and enhance governance and accountability, which led to corruption-linked arrests, with cases currently before the courts.
“MMCZ has made efforts to improve governance and accountability, including the publication of annual reports and the implementation of measures to prevent mineral leakages,” Gwarimbo said.
He added that in 2024, MMCZ invested in equipment to enhance assay and characterisation processes and established a gemstone cutting and polishing training centre at the Zimbabwe School of Mines.
“The corporation managed to create additional markets for mineral products in destinations such as Australia, China, Colombia, Burundi and India,” Gwarimbo said.
