Value addition in mining

THERE are numerous aspects related to value addition when it comes to mining, and we will be looking into them in this article.

To start with, let us first determine what value addition means particularly in the mining sector. Value addition is a secured scenario whereby one obtains the highest rewards from a mining or related mining entity. It may be from mining practice to the finished product, in short enhancing the quality and quantity of the chain of production.

Let us first focus on the area of production high output, high quality and increasing mine lifespan as aspects related to value addition. In this case, high output is whereby the operations are producing at full capacity.

High quality is whereby the extraction of minerals whether in a native or semi-native compound state (compound meaning found with other valuable minerals) is done or carried out with an objective of obtaining the targeted mineral or minerals without damage.

For example, gemstones (diamonds, emeralds, saphire) and getting a significant concentrate in percentage form in terms of the semi-native state for example (gold, iron, nickel) from other minerals on increased lifespan.

It is important for one to obtain, the longest term of the mining operation, not only to assure long term income personally, but also ensure that the economy benefits in terms of Gross Domestic Product which would in turn have positive all round ripple effects on other sections of the economy.

So in order for one to attain the above said beneficial and advantage point placing value addition aspects, it all boils down to the one and most important thing necessary in mining which is the practicing of best mining methods with no compromise conventionally or mechanically.

I say that because best mining methods will with no doubt assure you of effective and efficient mining output in turn positively impacting on environmental aspects, while on the other hand best practices also encompasses the adherence of Government’s call for miners to avoid illegal dealings.

We continue with our value addition in mining on a different point of focus in the case of mining related sectors such as suppliers of mining inputs and markets, which are also important to the enhancement of high quality and increased quantity mineral production.

On the supply side, it may be equipment or consumables, they have to first recognise and appreciate their importance to the sector. Research has shown that suppliers mostly do not take it as their responsibility to promote mineral output in terms of quality and quantity respectively. I say this because of the lack of improved or latest inputs which are still not abundantly available to the miners.

The mining industry is an importer of most inputs based on their performance. However, the miners are getting their supplies from outsiders instead on local companies. On the issue of market, one will find that most markets of local establishment have the tendency of not participating in the output of minerals and related finished products.

However, these markets depend on the performance of the production chain. They have to ensure that producers are kept aware of prices in terms of outlook and present and on the other hand, wherever resources permit to assist in the realisation of high quality products participating in advanced skills provision programmes, valuation and grading of provisions
More importantly players in the market must ensure that payment of products bought are made timeously to ensure liquidity to the production chain downwards respectively.

I believe that the issue of value addition has been enlightened and has broadened the reader’s horizon of thinking, and that every player in the mining sector has an important part to play.

Mining and the five percent export incentive

The five percent export incentive that was introduced by the Reserve Bank of Zimbabwe on miners is welcome both for small and big mines. One must also realise that the Government and other institutions such as RBZ intend to better position exporters and would by all means activate exporters to respond remarkably in a conducive environment.

Such actions by the responsible authorities are required in order to boost and consolidate on the realisation of Zim Asset.

On the other hand mining companies need to understand that the RBZ initiated the incentive not only as a gesture of goodwill, but also focusing on a sustainable business and economical all round growth aspect meaning that the retainable incentive could have been allocated to other Government programmes.

Therefore, it is very important that beneficiaries of the five percent export incentive must respond in a way the incentive is meant to achieve, in this case which is the sustainable increase in mineral output. The mining sector has been one of those dogged by illegal activities, which has robbed the nation of millions of the much needed foreign currency.

Some of the dealings involved not keeping records but through the latest incentive, miners will be led to operate within the set and legal parameter, so as to benefit from the incentive. Miners must understand that the incentive not only has short term benefits, but also mainly exist for medium to long term purposes, as this would make it easier for miners to afford inputs and promote savings.

In anticipation of greater returns miners must also be aware that opportunities of accessing the incentives more than once is possible and may be achieved, by carrying out value addition activities were applicable, as valuable by products can be reclaimed, and further processed for export, meaning more foreign currency inflows to the nation and more money to the miner respectively to say the least.

We must applaud the RBZ for coming up with such an an initiative and miners should show their gratitude by stepping up and practicing transparent and effective mining activities.

Mining safety tip — it is very important for miners to carry out mine inspections, more frequently than usual either by a hired inspector or self-inspection during the rainy season, because structure weakness becomes prevalent, due to water seepage into the ground. It is important to immediately stop workers from accessing shafts when a hazard is detected and seek professional assistance and how to deal with the problem. Alternatively miners must reinforce shaft support with timber or rock bolting and avoid frequent underground blasting.

Goremucheche is an independent mining expert, he can be contacted on 0718171899 or email at goremunya5@gmail.