CHARTS: The coming critical minerals trade war is BRICS short of a load
"While a large number of countries around the world continue to talk about securing raw material supply, China is actually doing something about it."
The Zimbabwe mining industry is expected to conclude a US$1 billion revolving facility at a number of African development banks to recapitalize mining firms and restore normal operations as it emerges from a decade of hyperinflation, international sanctions and political turmoil that all but ground the sector to a halt.
The mining industry, rich in precious metals and diamonds, made up roughly 20% of Zimbabwe’s GDP and 65% of all exports last year according to government statistics. This figure is set to increase dramatically particularly if the country receives approval to restart diamond exports currently under an international ban.
An intercessional meeting of the Kimberley Process Certification Scheme (KPCS) – the regulatory body to curb the export of so-called blood diamonds – takes places in Kinshasa in Democratic Republic of Congo (DRC) next week where a decision on Zimbabwe may be reached.
The contribution came on the back of a 143 percent increase in mineral exports after Zimbabwe raked in US$1,7 billion from mineral exports in 2010.
India has raised concerns as Russia is set to join China in moves to control diamond mining in Zimbabwe, with the Federation’s state diamond group Gokhran seeking a license to mine at the controversial Chiadzwa fields. China already has two companies operating there in partnership with Zimbabwe’s state diamond firm.
Zimbabwe is set to become the world’s leading producer, with an expected volume of 40m carats per year worth some $2bn annually from the rich deposits in Chiadzwa and Marange.
Image is of Zimbabwean dollar notes including one for 100 billion dollars in circulation when the country suffered an inflation rate that peaked at 230 million percent. The country abandoned its currency in favour of the South African rand and other hard currencies in 2009.
