Precious Metals Mining in Zimbabwe to 2020

Platinum reserves in the country can be found in the Great Dyke, while diamond reserves are spread across the Marange fields. Diamond production was 10.4 million carats in 2013 majorly from provinces of Manicaland, Matabeleland and Midlands. Rough diamond exports were 9.6 million carats in 2013. In the same year, platinum mine production was around 12.2 tonnes (t), mainly from its platinum producing mines located in the province of Matabeleland South.

Scope

GlobalData's 'Precious Metals Mining in Zimbabwe to 2020' report contains an overview of Zimbabwe's platinum and diamond mining industry together with the key growth factors and restraints affecting the industry. It provides information about reserves, production, trade, competitive landscape, active and development projects and the country's mining fiscal regime.

Key Highlights

• While the mining industry is expected to contribute 17.8% towards the country’s GDP by 2015, it accounted for US$445 million in taxes to the government in 2012 and formally employed 45,000 people while informally employing more than 500,000.

• Mineral exports contributed more than 50% of the country’s total export earnings in 2013, while PGM metals and the diamond industry contributed 27.2% and 26.1% respectively towards total mineral exports in 2012.

• Although the mining industry is increasingly becoming the backbone of growth, contributing more to GDP, the lack of transparency and accountability in the exploration and exploitation of mineral resources has become one of its key challenges.

• Shortages of electricity as a result of Zimbabwe’s power crisis are a major hindrance for the country’s precious metals mining industry.

Reasons to buy

Gain an understanding of Zimbabwe's platinum and diamond mining industry, the relevant drivers and restraining factors, reserves, historical and forecast production, trade and the fiscal regime.

Companies mentioned

Impala Platinum Holdings Limited, Anglo American Platinum Limited, Zimplats Holdings Limited, Rio Tinto Diamonds

Table of Contents

1 Executive Summary 2

2 Precious Metals Mining In Zimbabwe 7

2.1 Country Overview 7

2.2 Mining Overview 7

2.3 Precious Metal Mining in Zimbabwe – Drivers 8

2.4 Precious Metals Mining in Zimbabwe – Restraints 8

3 Platinum Mining In Zimbabwe – Reserves and Production 10

3.1 Reserves by Grades and Geographic Regions 10

3.2 Historical and Forecast Production 11

3.3 Platinum Prices 13

3.4 Total Production by Major Mines 14

3.5 Production Method 14

3.6 Major Development Projects 14

3.7 Zimbabwe vs Global Platinum Production and Consumption 15

4 Diamond Mining In Zimbabwe – Reserves and Production 16

4.1 Reserves by Geographic Regions 16

4.2 Historical and Forecast Production 17

4.3 Total Production by Region, State or Basin 18

4.4 Total Production by Major Mines 19

4.5 Total Production by Mining Method 19

4.6 Exports 19

5 Competitive Landscape 22

5.1 Impala Platinum Holdings Limited (Implats) 22

5.2 Anglo American Platinum Limited 23

5.3 Zimplats Holdings Limited (Zimplats) 24

5.4 Rio Tinto Diamonds 26

6 Fiscal Regime 27

6.1 The Zimbabwean Mining Industry – Governing Bodies 27

6.1.1 Ministry of Mines and Mining Development 27

6.1.2 Chamber of Mines of Zimbabwe (COMZ) 27

6.2 The Zimbabwean Mining Industry – Governing Laws 27

6.2.1 Mines and Minerals Act 27

6.2.2 Base Minerals Export Control Act 28

6.2.3 The Minerals Marketing Corporation Act 28

6.2.4 The Zimbabwe Mining Development Corporation Act 28

6.2.5 Environmental Management Act 28

6.3 The Zimbabwean Mining Industry – Prospecting Licenses 28

6.3.1 Appointment of approved prosecutor as representative holder of prospecting license 29

6.3.2 Duration of prospecting license 29

6.4 The Zimbabwean Mining Industry – Mining Rights and Obligations 29

6.4.1 Rights 29

6.4.2 Obligations 29

6.5 The Zimbabwean Mining Industry – Key Fiscal Terms 29

6.5.1 Royalty 29

6.5.2 Corporate income tax 30

6.5.3 Capital gains tax 30

6.5.4 Presumptive tax 30

6.5.5 Withholding tax 30

6.5.6 Fiscal incentives 30

6.5.7 Customs and Excise Incentives 31

6.5.8 Loss carry forward 31

6.5.9 Value added tax 31

7 Appendix 32

7.1 What is this Report About? 32

7.2 Methodology 32

7.3 Secondary Research 32

7.4 Primary Research 33

7.5 Contact GlobalData 33

7.6 About GlobalData 33

7.7 GlobalData’s Services 34

7.8 Disclaimer 36

List of Tables

Table 1: Platinum Mining in Zimbabwe – Mine Production (Tonnes), 2000–2020 12

Table 2: Platinum Mining in Zimbabwe – Major Active Mines, 2014 14

Table 3: Platinum Mining in Zimbabwe – Major Development Projects, 2014 14

Table 4: Diamond Mining in Zimbabwe – Rough Diamond Production (Million Carats), 2005–2020 18

Table 5: Diamond Mining in Zimbabwe – Major Active Mines, 2014 19

Table 6: Diamond Mining in Zimbabwe – Rough Diamond Exports (Million Carats), 2004–2020 21

Table 7: The Mining Industry in Zimbabwe – Royalty Rates (%), 2014 30

List of Figures

Figure 1: Platinum Mining in Zimbabwe – Location of Great Dyke Mineral Belt 10

Figure 2: Platinum Mining in Zimbabwe – Mine Production (Tonnes), 2000–2020 11

Figure 3: World Nominal Platinum Prices – US$/oz (2013–2020) 13

Figure 4: Platinum Mining in Zimbabwe – Zimbabwe vs Global Platinum Mine Production (%), 2013 15

Figure 5: Diamond Mining in Zimbabwe – Location of Marange Diamond Fields 16

Figure 6: Diamond Mining in Zimbabwe – Rough Diamond Production (Million Carats), 2005–2020 17

Figure 7: Diamond Mining in Zimbabwe – Rough Diamond Exports (Million Carats), 2004–2020 20

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