Zimbabwe's export performance over the last few years has left a lot to be desired, largely due to failure to add value to products. Primary goods always fetch low prices that cheat the country of large sums of potential earnings. The harsh conditions that have characterised international markets, particularly for minerals and agricultural produce, give credence to the firm stance taken by Government for mining houses to build refineries so that minerals are not exported in their raw form.
Over the past decade there has been talk on the importance of value addition but this has not been followed through with tangible action.
However, things are changing and Government, as stated in the Zimbabwe Agenda for Sustainable Socio-Economic Transformation (Zim-Asset), now insists on local beneficiation to ensure international competitiveness.
Processed exports are assured of higher prices even in instances where markets are depressed.
Beneficiation is increasingly important at a time the economy needs to improve its balance of payments position, among other attendant benefits.Mining already accounts for about 50 percent of export earnings and simple mathematics tells us that much more could be earned through beneficiation.
Therefore, there should be no excuse not to build refineries and the earlier companies act, the better for us all. A two-year deadline given to platinum mining firms to build refineries is more than generous considering the profits they have been making over the years.
Mining projects are embarked on for the long haul, hence the US$3 billion needed to build a refinery is a guaranteed investment that will yield higher profits for everyone.
Zimbabwe has three major platinum producers - Zimplats, Mimosa and Unki - who produce a combined 430 000 ounces per year. Surely, they can raise the required funds in a relatively short space of time.
Their argument previously that Zimbabwe needs to produce at least 500 000 ounces to justify a refinery no longer holds water given current production levels.
Furthermore, their expansion programmes show that it is just a matter of time before they exceed production of 500 000 ounces.