Zimbabwean Miners Face US$500 Million in Losses Amid Growing Power Crisis
The mining industry in Zimbabwe is facing a mounting crisis, with projected losses of US$500 million in 2025 due to worsening power outages. These disruptions are severely impacting production, leading to reduced output and significant revenue losses.
By Ryan Chigoche
Zimbabwe’s power supply has long been fragile, with most mining companies experiencing unscheduled power outages and fluctuating voltage levels.
According to the latest State of Mining Sector Survey Report, 99% of local miners are dealing with crippling unscheduled power outages, averaging around eight hours per day. The report highlights the detrimental effects of these outages, with nearly all respondents indicating production stoppages and output losses.
“Almost all respondents indicated that power outages were resulting in production stoppages and output losses,” the report stated. “About 76% reported losing up to 10% of their production potential, while 24% indicated losses exceeding 10%.” An analysis of the survey data estimates that the mining industry has lost around US$500 million in potential revenue due to output losses arising from power outages.
As the country’s largest energy consumer, the mining sector’s demand for power is projected to increase by 18% to around 700MW in 2025, with diesel usage expected to rise by 12%. The combination of increasing demand and inadequate supply has exacerbated the power crisis, posing a significant threat to the industry’s sustainability.
To address this critical issue, mining companies have called on the Zimbabwe Electricity Supply Authority (ZESA) to implement several measures. Firstly, they advocate for release from long-term power supply contracts, allowing them to source alternative power from private independent producers like the Intensive Energy Users Group. Secondly, they urge ZESA to expedite the licensing of Independent Power Producers (IPPs) to help increase the overall power supply in the country.
Furthermore, mining executives have emphasized the need to prioritize mining companies for available power. By ensuring the mining sector receives a reliable and consistent power supply, the government can mitigate the negative impacts of power outages on production and revenue.
The mining industry’s challenges extend beyond power outages. The sector is also grappling with infrastructure constraints, rising costs, and uncertain commodity prices. These factors, combined with the energy crisis, pose a significant threat to the industry’s long-term viability.
To ensure the sustainability of the mining sector, it is imperative that the government takes decisive action to address these challenges. By implementing reforms, investing in infrastructure, and supporting the growth of renewable energy sources, Zimbabwe can create a more conducive environment for mining operations and unlock the sector’s full potential.