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.