Roy Pitchford<br />CEO Country Factor<br />
MINING IN ZIMBABWE - OVERVIEW<br /><ul><li>PREDATES COLONIAL ERA
GEOLOGICAL – PRODUCTION DATA FROM 1910
AT ITS PEAK, MINING IN ZIMBABWE PROVIDED
7% of GDP
50% of foreign currency earnings
Direct employment to 60,000
Development of towns, infrastructure, road, rail, and all forms of communication</li></li></ul><li>MINING IN ZIMBABWE – IN...
Diamonds
Gold
Platinum
Chrome</li></ul>OTHER MINERALS<br /><ul><li>Iron Ore
Phosphates
Asbestos
Black Granite
Coal Bed Methane
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Zimbabwe Rising Conference 2010 London - Roy Pitchford - Country Factor - Zimbabwe's Mining growth and potential, the need for recapitalisation. Investment in support infrastructure.

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Zimbabwe's Mining growth and potential, the need for recapitalisation. Investment in support infrastructure.

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Zimbabwe Rising Conference 2010 London - Roy Pitchford - Country Factor - Zimbabwe's Mining growth and potential, the need for recapitalisation. Investment in support infrastructure.

  1. 1. Roy Pitchford<br />CEO Country Factor<br />
  2. 2. MINING IN ZIMBABWE - OVERVIEW<br /><ul><li>PREDATES COLONIAL ERA
  3. 3. GEOLOGICAL – PRODUCTION DATA FROM 1910
  4. 4. AT ITS PEAK, MINING IN ZIMBABWE PROVIDED
  5. 5. 7% of GDP
  6. 6. 50% of foreign currency earnings
  7. 7. Direct employment to 60,000
  8. 8. Development of towns, infrastructure, road, rail, and all forms of communication</li></li></ul><li>MINING IN ZIMBABWE – INVESTMENT POTENTIAL<br />HIGHLY PROSPECTIVE FOR;<br /><ul><li>Coal
  9. 9. Diamonds
  10. 10. Gold
  11. 11. Platinum
  12. 12. Chrome</li></ul>OTHER MINERALS<br /><ul><li>Iron Ore
  13. 13. Phosphates
  14. 14. Asbestos
  15. 15. Black Granite
  16. 16. Coal Bed Methane
  17. 17. Industrial Minerals</li></li></ul><li>MINING IN ZIMBABWE – ECONOMIC ENVIRONMENT<br /><ul><li>Single digit inflation
  18. 18. Multiple foreign currencies in use – legally
  19. 19. No foreign currency surrender requirements
  20. 20. Market liberalised
  21. 21. Competitive taxation regime
  22. 22. NEGATIVE ISSUES INCLUDE;
  23. 23. Skills loss
  24. 24. Property and mineral rights
  25. 25. Unrealistic indigenisation objectives
  26. 26. Political uncertainty</li></li></ul><li>MINING IN ZIMBABWE – COAL<br /><ul><li>Deposits considered world-class
  27. 27. Low ash
  28. 28. Current production at 20% of capacity
  29. 29. World-wide demand increasing
  30. 30. Increased exploration activity</li></ul>HOWEVER<br /><ul><li>Rail infrastructure requires upgrading
  31. 31. Coking facilities require upgrading
  32. 32. Mining equipment investment needed
  33. 33. New production facilities need to be constructed</li></li></ul><li>MINING IN ZIMBABWE – DIAMONDS<br /><ul><li>Country not fully explored
  34. 34. Early 80’s aeromagnetic survey anomalies need investigation
  35. 35. Several mining operations producing ~ 400,000 carats per annum
  36. 36. 2 million carats per annum production possible
  37. 37. Local processing opportunities</li></ul>HOWEVER<br /><ul><li>Minerals rights claims need to be resolved
  38. 38. Adherence to international protocols required</li></li></ul><li>MINING IN ZIMBABWE – GOLD<br /><ul><li>Peak production in 1999 – 27 tonnes
  39. 39. Target of 50 tonnes by 2015
  40. 40. Output dropped to 3,5 tonnes per annum
  41. 41. RBZ exchange rate policies and non-payment for gold reduced exploration and development expenditure
  42. 42. Constraints now removed
  43. 43. Capital injection to existing mines and brown-field projects provide short-term gains
  44. 44. Modern exploration expected to lead to new discoveries
  45. 45. Recent M&A activity demonstrates low cost acquisition of short-term production resources/reserves</li></li></ul><li>MINING IN ZIMBABWE – PLATINUM GROUP METALS<br /><ul><li>Second largest pgm resource in the world
  46. 46. Resources relatively shallow - low cost of production
  47. 47. Three of the world’s four major producers present
  48. 48. Reasonable facilities for processing
  49. 49. Limited green-field exploration
  50. 50. Defined deposits available for development – held by the Government of Zimbabwe
  51. 51. Enhanced/increased beneficiation opportunities exist
  52. 52. Pgm and associated base metal prices robust
  53. 53. Zimbabwe capable of increasing international market share of pgm supply</li></li></ul><li>MINING IN ZIMBABWE – PGM’S CONTINUED<br /><ul><li>Conventional wisdom states that 80% to 90% of the world’s pgm resources, to a depth of 3,000 metres,</li></ul> are in RSA – 10% Zimbabwe<br /><ul><li>Zimbabwe’s pgm resources are less than 1,000 metres
  54. 54. Measuring pgm resources to 1,000 metres in both countries, the ratio will be much less than 90 : 10
  55. 55. 70 years of pgm mining in RSA has depleted the shallower resources
  56. 56. Shallow resources reduce mining costs
  57. 57. Zimbabwe therefore, with shallower resources – lower cost production, and a greater share of resources less than 1,000m – should have a greater pgm market share</li></li></ul><li>MINING IN ZIMBABWE – PGM’S CONTINUED<br />In support of asserting that Zimbabwe should have a greater share of the international pgm market, public information on Impala Platinum’s resources and production statistics are utilised in the next group of slides <br />

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