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A major Gwanda goldbelt miner, Caledonia Mining Corporation, signed a memorandum of understanding (MoU) with the Government yesterday so it can boost investment and production in its gold mining and play a leading part in the drive to a US$12 billion mining sector economy by 2023.
President Mnangagwa, speaking at the signing ceremony at State House, said Caledonia’s commitment was testimony that Zimbabwe is a safe investment destination since the coming in of the Second Republic.
He immediately called for the involvement of local communities for the growth of rural industry systems and the achievement of robust provincial gross domestic product, in line with the devolution agenda.
In the MoU, Caledonia declares and affirms its intention to increase gold production in excess of 500 000 ounces, around 15,5 tonnes, by 2030.
Further, the parties acknowledge and agree that where Caledonia has specific interest in identified assets or projects towards the achievement of the target, there shall be need to enter into specific agreements governing those assets.
Said President Mnangagwa: “This ceremony is a milestone achievement towards our quest to attain a US$12 billion mining sector economy by 2023. Furthermore, it is indicative of the Caledonia Mining Corporation’s explicit interest to invest in our economy, affirming that Zimbabwe is a safe investment destination.”
Gold is expected to rake in US$4 billion a year, platinum US$3 billion, diamonds US$1 billion, while chrome, iron, steel and coal will contribute US$1 billion. Lithium is expected to contribute US$500 million while other minerals will contribute US$1,5 billion.
President Mnangagwa said the MoU was vital as it defined the responsibilities of each party, while also providing scope of authority, clarifying terms, conditions and outlining compliance issues regarding the proposed mining interventions. The Herald
