7 th zimbabwe pres presented by: mining & sam chikowore infrastructure exporien mining indaba...
TRANSCRIPT
EXPLORATION PARTNERSHIP- THE GATEWAY TO UNLOCKING MINERAL WEALTH!
7th Zimbabwe Pres Presented by: Mining & Sam ChikoworeInfrastructure Exporien Mining Indaba 2015. 14 October 2015.
POLICYCOUNTRY INVESTMENT POLICY
What has hindered inflows of Exploration funds?
Country Risk.
Ease of doing business.
- process time to register business/projects.
- efficiency in corruption free environment.
Taxation/Royalties
-competitiveness of tax and royalties regime when compared to industry “norms” in the region and beyond.
Policies besetting investments-
-legislation and government policy affecting and /or scaring investment.
ICU- LIQUIDS ONLY PATIENTDoctor’s Orders - Strictly feed fluids!!
Our Patient! Our Way-Who says Maputi CANT DO??
SECTOR DRIVEN POLICYLabour Laws-
-are the laws deemed to be mutually fair to both business and workforce?
-are the laws set for good business prospect or for political expediency?
Title Application Fees/ Other related fees –eg: EIA Fees-
-are the fees commensurate with service provided?
-do the fees compete with those obtaining in other mining jurisdictions?
Conference/Seminar OutcomesWhat benefits do participants to this conference wish to derive from this setting?
-To have a sincere audience from both policy makers and business to issues affecting the industry.
-To get commitment from all stake holders to take concrete action and be accountable for the benefit of the industry.
-To get different government departments to be in harmony and complement each other in order to create an environment which responds favourably to the dictates of investment.
Continued/…-This forum to be the yard stick to track and measure progress periodically at agreed intervals and report back to this convention the progress or lack of.
-To interrogate issues which might NOT normally be regarded as being high on the agenda of issues besetting industry growth, especially those affecting a minority of players in the industry but being issues with implications on sector development and growth.
-To explore and exploit projects where as a country we have a competitive advantage and seek to implement such projects without unnecessary delay.
Opportunities and Quick Wins(as an example)
Coal Bed Methane Gas (CBM) :-
-Estimated at 756 Billion cubic metres of sulphur free CBM in the Hwange/Lupane Basin @ 800 million cubic metres/ square km.
Compared to:
An estimated 420Billion cubic metres for the entire SADC region.
Capital Seeking to Invest-
Capital from different investment capitals has come knocking to exploit different opportunities in the extraction of different mineral commodities.THAT IS FACT!
Government Response:- Investor Knock “Official” Response
(excuse the pun)
Barriers to Achieving Potential
Special Grants not being processed some pending in excess of 10 years.
Punitive non-refundable application fees-Coal/CBM Special Grants – ($20k - $105k)
Lack of clear guidelines or lack of policy on process or procedure-no SOP.
Lack of confidence on the part of the investor and lack of respect on the part of government.
Lack of coordinated approach from government departments eg: mines department and the department of environment .
Capital Flight!Government in “delayed” response!!
Investors Move on- “Can’t Touch This!”
Conferences and Brand Marketing Tours of Duty Abroad more Attractive BUT at what cost???
Seize the Day!!Our Government should seize opportunities when it presents itself. A lot of projects in the region were initially addressed to ZIMBABWE but due to the lack of attention or disregard to investor concerns, those projects have been on- forwarded to other jurisdictions in the region.
Short term application:--Power generation during exploration- mobile modular power generating plants.
-Current Power Crisis might have been averted or not as severe !!
Mid- long term benefits:-
Petrochemicals
Liquid Natural Gas (LNG)
Gas to Liquids (GTL)
Power generation for both local and export market.
Advantages to Country & Economy
Generate sufficient power to meet local demand, grow the economy and export excess through the interconnected grid system. (SAPP)
Import substitution for petrochemical related products –
-Fertilizers, local manufacture becomes cost effective.
-Explosives for the mining sector and other uses (of good nature!).
-Medical application.
-Electronics industry application.
-Process of liquid fuels for automotive, industrial and domestic use.
Whereto from here
Self- introspection!!!Self Questioner to both Business and Government:-
Am I Committed to the Common Good of the country?
Am I Sincere in my Service to the country?
Do I share a Common Vision of Success for the country?
Do I Aspire to the Common Goals of Growth and Development of the country?
Do I share a Common Destiny of Prosperity for the country?
Remember:-A journey of a thousand miles
begins with the first step!
Conclusion:-
You and Ilet’s
Play our Part!
GOD BLESS ZIMBABWE!
I THANK YOU.