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Anglo American’s South African iron ore arm, Kumba Iron Ore, says rail disruptions that have plagued mineral exports for over a year are now stabilising — but experts caution that Southern Africa’s broader rail network remains fragile and in urgent need of investment if the region is to unlock its full mining and trade potential, Mining Zimbabwe can report.
By Rudairo Mapuranga
The mining heavyweight, majority-owned by Anglo American Plc, reported improved performance from state-run Transnet, whose persistent logistical bottlenecks — particularly on the Sishen-Saldanha line — had severely impacted the export of iron ore from the country’s Northern Cape. In the first half of 2024, Kumba saw a 3% increase in production to 18.3 million tonnes, and export sales rose 2% to 18.6 million tonnes.
Transnet, under intense pressure from miners and industry players, appears to be regaining control over operations that had previously seen Kumba declare force majeure. However, rail availability remains below full potential, and the system still operates well beneath its design capacity of 60 million tonnes per annum.
Zimbabwe’s Rail Troubles: A Shared Regional Bottleneck
While Kumba’s situation offers a glimmer of hope, neighbouring Zimbabwe continues to battle serious rail capacity challenges that mirror the South African experience — albeit on a more acute scale. In a recent article published by Mining Zimbabwe, Dinson Iron and Steel Company (DISCO), a subsidiary of China’s Tsingshan Group, called for a total overhaul of Zimbabwe’s railway infrastructure to accommodate the surge in bulk cargo expected from its new US$1 billion steel plant in Manhize.
According to DISCO officials, the country’s current rail system is grossly inadequate for transporting heavy materials such as iron ore, ferrochrome, and coke. The company projects that at full capacity, its Manhize operation will require two to three fully functional train sets per day. Without modern, efficient rail transport, DISCO — and Zimbabwe more broadly — risks relying on road haulage that is both environmentally damaging and economically unsustainable.
DISCO’s concerns echo those of Kumba, highlighting a systemic issue across the region: bulk commodity miners are being held back not by geology or investment, but by outdated rail infrastructure.
Why Rail Matters for the Region’s Mining Future
Southern Africa’s mineral wealth — from Zimbabwe’s burgeoning steel and lithium industries to South Africa’s iron ore and platinum mines — relies heavily on reliable and cost-effective logistics networks. Rail remains the most efficient and scalable option for moving bulk cargo to ports, yet the region has struggled with ageing tracks, limited locomotive availability, and inconsistent service delivery.
In Zimbabwe, the National Railways of Zimbabwe (NRZ) remains in dire need of recapitalisation. Despite several attempts at public-private partnerships and the signing of MoUs with Chinese investors, little tangible progress has been made. Meanwhile, trucks continue to clog highways and border posts, raising costs for miners and exporters while damaging road infrastructure.
In South Africa, industry has been vocal. The Minerals Council of South Africa estimates that Transnet’s inefficiencies cost the mining industry over ZAR 50 billion (US$2.7 billion) in lost revenue in 2023 alone. While there are signs of improvement in 2024, the gap between what is mined and what can be exported remains too wide.
A Continental Imperative: Coordinated Rail Investment
There is growing consensus that Southern Africa needs a coordinated regional approach to rail rehabilitation and expansion. Multilateral institutions, bilateral partners — particularly China, which has significant mining interests across the region — and private capital must be mobilised if the continent’s vast mineral wealth is to translate into real economic transformation.
DISCO’s call for urgent action in Zimbabwe and Kumba’s cautious optimism in South Africa both point to the same conclusion: mining growth will remain capped until infrastructure catches up.
In the words of one Zimbabwean mining analyst: “We have the minerals. What we lack is the movement.”
