Zim Mining companies are feeling the pinch of the Ukraine/Russia war

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By Bulawayo Correspondent


Mining companies in Zimbabwe have begun to feel the effects of the war between Ukraine and Russia as they are no longer able to access critical mining inputs from the two warring countries.

Speaking at the 2022 Mining Industry Suppliers Forum in Bulawayo on Tuesday, Mines Ministry Permanent Secretary Onesimo Moyo said the conflict in Ukraine revealed the government’s lack of preparedness to achieve self-sufficiency. in the supply of critical mining equipment.

“The effects of the European unrest between Russia and Ukraine have revealed our country’s state of unpreparedness to achieve self-sufficiency in terms of the supply of critical inputs for the mining industry,” Moyo said in a statement. speech made on his behalf by the director of the ministry. chief extractive metallurgist, Malcom Mazemo.

“Although endowed with immense oil and gas potential, the country is lagging behind in the exploration and exploitation of this key resource. Our local manufacturing industry fails to adequately supply essential components to productive sectors.

“Suppliers and mining companies are therefore urged to find smart synergies, where companies not only invest in downstream industries, but also in upstream industries.”

Moyo also lamented inflation, which he said has also hurt the mining industry.

“Inflationary pressures targeting the prices of goods and services are having a negative impact on the mining industry and challenges affecting suppliers, not only in the mining industry, but across the economy as a whole.

“Suppliers are further constrained in terms of access to foreign exchange and limited availability of local financial sector funding. This is further compounded by the low use of locally manufactured goods by mining companies and industry. This is mainly due to the poor quality standards cited by end users of these products,” he added.

Moyo also said Covid -19 has disrupted global value chains in mining.

“Suppliers have battled Covid-19 travel restrictions that have disrupted global value chains, and sourcing key inputs for the mining industry has been a major setback. Although the aftermath of the pandemic will are still being felt today, the measures implemented to contain the pandemic have significantly improved the situation,” he said.

Moyo revealed that the government is implementing several strategies in the mining industry, including promoting mining exploration, opening new mines, resuscitating inactive mines, expanding the processing capacity of existing mines. , encouraging companies to engage in mineral enrichment, adding value and improving the mining title management system by operationalizing the computerized mining cadastre.

The Mining Procurement Indaba brought together government officials, mining leaders and representatives of the Zimbabwe Chamber of Mines.

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