The Chamber of Mines of Zimbabwe has launched the 2020 state of the mining industry report which projects a positive mining business index of +3.1 compared to +2.2 for 2019.
The index measures business confidence and prospects for growth.
Launching the report in Harare today the lead researcher Professor Albert Makochekanwa said the outlook for 2021 is good and prospects for growth and profitability are high.
“Mining executives are slightly confident about the business prospects in 2020 when compared to 2020. In summary we are saying despite covid-19 and other issues the future is brighter than where we are. That is the whole message in this context and we got it from mining executives.
Professor Makochekanwa said the optimism was hinged on mining sector growth prospects, profitability and commodity market outlook. He said the majority of mining companies are planning to increase production and capacity utilisation in 2021.
“Around 90 percent of miners we got feedback from are planning to ramp up production in 2021 while 10 percent expect their output to remain the same. Approximately 40 percent are expecting to ramp production by more than 30 percent, “he said.
Gold is expected to grow by 32 percent from 25 tonnes to 33 tonnes with PGMs forecast to make a 3 percent gain in output. Capacity utilisation is expected to increase from 61 percent to 80 percent in 2021, which is a five year high.
The launch was attended by Mines and Mining Development Minister Winston Chitando, his deputy Polite Kambamura, Reserve Bank Governor Dr John Mangudya, Deputy Minister of Power and Energy Development Magna Mudyiwa, Chamber of Mines of Zimbabwe President Elizabeth Nerwande and CEO Isaac Kwesu among other officials.