Chinese investors who were part of a recent visiting delegation are eyeing significant investments within Zimbabwe’s gold and platinum sectors, the Herald Business has gathered.

While no figures could be obtained, this paper understands that the Chinese are admirers of Zimbabwe’s mining industry, and were keen to pour in money.

The 22-member delegation, which consisted of mining, exploration and trade experts, is said to have held meetings with Mines Minister, Mr Amos Midzi on their intentions.

Chinese deputy minister of Commerce, Gao Hucheng led the delegation that has already departed.

While no comment could immediately be obtained from the minister, he was quoted in weekend South Africa media as saying: “The visit has been very helpful as we have agreed to what the delegation has asked for from us.

“They want gold and platinum mining exploration and investment opportunities and we are willing as Government to partner them because they are sincere investors.”

No comment could be obtained from the Chinese Embassy in Harare at press time yesterday.

Meeting the Chinese delegation last week, President Mugabe said cordial relations that exist between Zimbabwe and China must now be buttressed by strong economic partnerships.

“. . . We now need to embark on developing this relationship of co-operation with programmes that would enhance and continue what we have built over the years,” he said.

However, the two metals — gold and platinum — provide some of the most attractive options for foreign capital, as the country’s platinum reserves are the world’s second largest after South Africa.

Gold production has seriously been crippled over the years, and the resource lies in abundance along the Great Dyke region — a mineral belt stretching right from the north in Mt Darwin to Matabeleland.

There is one major producer of platinum in the country at present — Zimbabwe Platinum Mines — which owns Ngezi, Makwiro and Selous complexes.

World’s largest platinum producer, Anglo Platinum is in the middle of developing another platinum mine in the Midlands, the Unki Platinum Mine.

Unki is yet to start any production activity since construction work started more than five years ago, missing its initial target of 2007, as input costs ballooned due to high inflation.

Last week the Chinese concluded a US$42 million deal to fund Zimbabwe’s agriculture mechanisation programme, which has entered its third phase.

The first two phases, which included massive distribution of tractors, disk harrows and ploughs were completed last year.

Recently, Sinosteel Group, a giant Chinese mining concern, acquired 67 percent of Zimasco Consolidated Enter-prises, the country’s largest ferrochrome producer.

Zimasco, which produces nearly 4 percent of the world ferrochrome, churns out at least 210 000 tonnes of high carbon ferrochrome yearly.

Sinosteel are due to release a substantial amount of foreign currency for plant refurbishment at Zimasco.

Despite earning Zimbabwe US$850 million in exports last year — the biggest forex earner for that period — the local mining sector has failed to capitalise on the metal prices rally on the international market.

Gold has broken record levels trading at more than US$940/oz and platinum at over US$2 000/oz.

There has been serious lack of capital expenditure in the mining sector while rampant smuggling has also stolen more than US$400 million from the industry in 2007.

Regular power cuts have also combined forces with other factors to bring mineral production on the floor.

Last year, Zimbabwe produced about 8 tonnes of gold, down form a peak of 29 tonnes produced in 1916. Around 5 000kg of platinum were produced.

Over the past decade, the gold production graph has routinely trended downwards.

Metallon Gold Zimbabwe’s Redwing Mine, the biggest gold producer here, has already seen production halving due to water-logging caused by power shortages.

There is, however, vast scope for new foreign capital in the mining industry. Resources have not been fully tapped, particularly platinum, coal bed methane gas and even gold.