Government to introduce new piece of legislation for the marketing of minerals

Government to introduce new piece of legislation for the marketing of minerals

Mines deputy minister Fred Moyo

THE Zimbabwean government plans to repeal the Minerals Marketing Corporation (MMCZ) Act and replace it with a new piece of legislation that will give birth to a new vehicle to be involved in marketing the country’s minerals from the ground to the buyer.

Mines deputy minister Fred Moyo told a Kenako diamond processing official commissioning in Harare early this afternoon that the process was at an advanced stage.

“The MMCZ Act is going to be repealed totally. Minerals will have to be marketed from the ground to the top throughout the value chain,” he said.

This comes as part of government’s efforts to restructure the extractive sector with plans to introduce a new Mines and Minerals Act which speaks to modern and relevant requirements in the sector with a view to maximize value from minerals.

Moyo added that all companies involved in diamonds must uphold the best corporate governance standards. He said government has introduced a few incentives for investors in cutting and polishing, inviting potential investors to negotiate for desirable terms.

Kenako MD Barbra Mutambanengwe said the company will use deep boiling technology to chemically clean diamonds and increase their value on the market. The plant will be utilized only to the tune of 20% as installed capacity can do 1million carats per month. MMCZ will give Kenako 40 000 carats per month.

Kenako’s Botswana based technical partner Francisco Kgoboko said the deep boiling plant will improve the value of Zimbabwe’s diamonds which were fetching a third of what other countries got for the same quality stones on the global market.

“About 80% of Marange diamonds have a coating and this means one cannot see clarity. In fact it was found that 30% to 40% of Marange diamonds, which were classified as industrial, were actually gem”

In a recent State of the Mining Sector Report by the Chamber of Mines Zimbabwe, mining sector output declined by 2.5% in 2015 as the sector continued to be hound by a host of challenges, chief among them, shortage and high cost of capital. The combination of low output and subdued international prices resulted in mineral revenue declining by 13.1% to $1.8bn in 2015. Mining contributes over 50% of export earnings to Zimbabwe. FinX

Follow us on Twitter on @FingazLive and on Facebook – The Financial Gazette

Connect With Us

Fingaz Polls

Grace Ntombizodwa Mugabe's PhD, who should be arrested?