The Government of Zimbabwe has reaffirmed its strong support for Mimosa Mining Company’s strategic vision to extend its life of mine by up to 15 years, even as the platinum miner grapples with a 40% decline in revenue due to depressed global metal prices, Mining Zimbabwe can report.
By Rudairo Mapuranga
In a significant show of confidence, key government officials, including the Ministers of Finance and Mines, visited the Zvishavane-based operation and pledged to create a conducive investment framework to sustain jobs, production, and long-term viability.
Mimosa’s current life of mine stands at eight years, but the company is actively pursuing the development of the North Hill ore body, which could add 12 to 15 more years of production. The mine, jointly owned by Impala Platinum and Sibanye-Stillwater, is facing headwinds from a prolonged slump in PGM prices, alongside challenges related to Zimbabwe’s foreign currency retention regime.
During the high-level tour, Minister of Finance and Investment Promotion, Professor Mthuli Ncube, emphasised the government’s readiness to assist Mimosa in navigating these challenges and unlocking new investment.
“We are very supportive of this business here in Mimosa because it is a very important company in the community, in the local economy in Zvishavane, and beyond,” said Minister Ncube. “Directly, the mine employs about 3,900 people, and indirectly, over 8,000 people rely on this operation. It is a national asset.”
He noted that the mine’s vision to develop the lower-grade North Hill resource will require significant capital, and the government is open to policy adjustments to support the initiative.
“The miners’ desire is to develop the North Hill ore body and blend it with the current South Hill ore body. They have asked for support from the government to raise adequate resources. Once we receive their formal proposal, we stand ready to support this investment,” said Ncube.
Minister of Mines and Mining Development, Winston Chitando, reinforced that discussions were already progressing and would be aligned with Zimbabwe’s drive to grow the mining sector to support Vision 2030.
“We are getting an update on Mimosa’s proposals to extend the life of mine and develop the North Hill ore body. Discussions will be ongoing so that the government can facilitate the investment needed to maintain employment and production,” he said.
Mimosa Managing Director, Fungai Makoni, confirmed that the company had suspended North Hill development due to the global downturn but remained committed to long-term sustainability. Talks with the government are focused on access to foreign currency and a support framework to revive the project.
“We are in discussions with both the Ministry of Finance and the Ministry of Mines around a support framework. The focus is on access to foreign currency and funding availability to enable the North Hill project,” Makoni said.
The company has already invested heavily in operational resilience, including the US$75 million Tailings Storage Facility 4 (TSF-4) and a US$40 million plant optimisation program initiated in 2021, designed to improve recovery, energy efficiency, and prepare for tailings retreatment in the future.
As the government shows strong political will to back its flagship mines, Mimosa’s story could be a blueprint for balancing survival, sustainability, and long-term growth in Zimbabwe’s PGM industry.
