The mining industry, once envisioned as a key driver for achieving a US$12 billion industry by 2023, is now grappling with critical challenges that have left the country far short of its target. Despite efforts to boost mining output, the sector failed to meet its revenue goal. This failure is now threatening Zimbabwe’s broader objective of becoming an upper-middle-income economy by 2030, Mining Zimbabwe can report.
By Rudairo Mapuranga
A 2023 report by the Ministry of Mines and Mining Development highlights the operational constraints faced by key mining companies, including Bindura Nickel Corporation (BNC), Prospect Lithium Zimbabwe (PLZ) and Natural Stone Export. The report reveals how electricity shortages, water scarcity, and limited access to capital have stifled production.
As the country shifts focus from the missed US$12 billion milestone to the 2030 vision, these unresolved challenges raise concerns about the mining sector’s ability to contribute meaningfully to national economic transformation.
A Missed Milestone: The US$12 Billion Target Failure
Zimbabwe’s mining sector was projected to generate US$12 billion in annual revenue by 2023, leveraging the nation’s rich mineral resources, including gold, platinum, lithium, and nickel. This goal aimed to catalyze economic growth, create jobs, and secure foreign currency reserves. However, the Ministry of Mines’ report shows that operations across the sector operated at reduced capacity due to electricity shortages, water scarcity, and financial constraints.
In 2023, mines operated at only about 50% of their capacity, diminishing output across key minerals and contributing to the sector’s inability to reach its target.
Bindura Nickel Corporation: From Production to Care and Maintenance
Among the hardest hit is Bindura Nickel Corporation (BNC). In 2023, BNC produced nickel concentrates below full capacity due to electricity and equipment challenges. By 2025, it had been placed under care and maintenance, a consequence of persistently low global nickel prices and depleted high-grade ore at its Trojan Mine.
The company had shifted from a high-grade, low-volume production model to a low-grade, high-volume one. Rising costs, high electricity tariffs, and outdated equipment rendered operations unsustainable, forcing the company to cease production while awaiting improved market conditions.
Electricity Crisis: A Sector in the Dark
Electricity shortages remain a critical threat. The Ministry of Mines’ 2023 report noted that BNC was spending USD 550,000 to USD 700,000 per month on electricity, yet frequent outages hindered full-capacity operation.
Companies like Natural Stone Export in Mutoko faced even harsher challenges, accessing electricity for just two hours daily in 2023. This forced reliance on diesel generators, consuming up to 4,000 liters of fuel daily, driving up costs, and lowering output.
Without reliable electricity, the mining sector cannot operate efficiently or expand. Resolving this issue is crucial for achieving the 2030 vision.
Water Scarcity: A Growing Concern
Water scarcity also undermines mining production. PLZ, operating in Goromonzi, reported that water shortages limited its ability to process lithium concentrates. The company plans to build a processing plant in 2024, but this expansion depends on securing reliable water supplies.
Similarly, Natural Stone Export and Hongri Trading Company in Mashonaland East have faced significant disruptions due to water shortages, with local dams drying up and production capacities further constrained.
Capital Shortages: Limiting Growth Potential
Capital shortages compound the sector’s challenges. BNC, Umbrella 77 B Gold Mine, and Tabatana Mining Syndicate have struggled to secure funding for expansion and modernization.
For instance, BNC needs USD 200 million to repair its Subvertical Service Shaft but has raised only USD 100 million internally. Umbrella 77 B Gold Mine cannot complete its fourth shaft, while Tabatana Mining Syndicate lacks modern equipment, resulting in suboptimal production.
The government must facilitate access to affordable capital, particularly for small- and medium-scale operations, to enable growth.
Corporate Social Responsibility: Contributions Amid Challenges
Despite these challenges, some companies continue to prioritize corporate social responsibility (CSR). PLZ allocated USD 2 million in 2023 for projects such as schools, clinics, and boreholes in Goromonzi, along with road infrastructure improvements. Similarly, Natural Stone Export has built schools, drilled boreholes, and supported local services.
Looking Ahead: Urgent Interventions Required
Zimbabwe’s mining sector faces significant obstacles, as outlined in the Ministry of Mines’ 2023 report. Electricity, water, and capital shortages persist into 2025, threatening the sector’s ability to support the 2030 vision.
To address these issues, the government must prioritize investments in infrastructure, particularly electricity and water supply systems, and improve access to affordable financing for mining operations.
While the failure to achieve the US$12 billion milestone is a setback, the mining sector still holds potential to drive sustainable growth. With the right support and investment, Zimbabwe’s vast mineral resources could unlock prosperity by 2030. However, time is running out, and swift action is needed to ensure the industry fulfills its role in the country’s economic ambitions.
