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Karo Building US$5 Million Dam Project Set for 2026 Commissioning

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Karo Building US$5 Million Dam Project Set for 2026 Commissioning
Karo Platinum’s Environmental and Social Governance (ESG) arm is constructing a US$5 million dam to support sustainable water supply and biodiversity protection in its platinum mining concession in Mhondoro-Ngezi, with commissioning scheduled for the first quarter of 2026, Mining Zimbabwe can report.
By Rudairo Mapuranga 
The Chirundazi Dam project, a critical component of Karo Platinum’s long-term ESG strategy, is already under construction and is expected to benefit both mining operations and surrounding communities.
Speaking to a delegation of visiting financial institutions at the Karo site earlier this week, the company’s ESG Manager, Antony Njaya revealed that the project is not only a water infrastructure development but also an example of responsible environmental stewardship and community integration.
“Currently, we are building Chirundazi Dam, which is a US$5 million project,” said Njaya. “The construction is being done in full compliance with national standards, and unskilled and semi-skilled labour is being sourced entirely from the local community. This project is about much more than just water — it’s about sustainability and inclusion.”
Njaya explained that Karo is committed to supporting local procurement and has allocated various small projects within the larger dam development to community-based enterprises. These small-scale enterprises are being encouraged to register and formalise their operations so they can participate in future procurement opportunities.
Beyond economic inclusion, Karo has taken a proactive approach to conservation and environmental management. As part of preparations for the dam’s construction, the company relocated 5,200 aloe plants — a species protected under Zimbabwean law — into a dedicated seedbed area in partnership with the Zimbabwe Parks and Wildlife Management Authority.
“The aloe species is on the verge of extinction, and it’s classified as protected by National Parks. Before construction began, we created a seedbed and transplanted all identified plants to preserve them,” Njaya said.
Environmental research ahead of the project also flagged the possible presence of Kariba tilapia, a rare and endangered species of brimfish. Karo has initiated DNA testing to verify the fish’s identity and assess the feasibility of future fish farming in the dam.
“We would want to do fish farming in the dam, but if the fish is confirmed to be Kariba tilapia, then we’ll need to develop sustainable aquaculture practices that do not compromise their survival,” said Njaya.
The ESG manager also highlighted Karo’s efforts in monitoring emissions, managing waste, and ensuring resource efficiency across its operations. “Whatever we clear, we need to replace. Whatever we use and emit, we must account for it,” he noted.
Chirundazi Dam will become one of the most significant ESG-led mining infrastructure projects in Zimbabwe, designed to benefit both the mine and the community. The dam will support the Karo Platinum project’s water requirements while creating opportunities for community water access, small-scale irrigation, and aquaculture.
Set for completion and commissioning in Q1 of 2026, the Chirundazi Dam project is not just about operational sustainability — it reflects Karo’s broader commitment to environmental preservation, community development, and long-term shared value.

Gold buying prices per gram in Zimbabwe, 28 May 2025

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Gold buying prices per gram in Zimbabwe, 28 May 2025

Gold buying prices per gram in Zimbabwe today, 28 May 2025, from the official gold buyer and exporter Fidelity Gold Refinery (FGR).

SG 90% and ABOVE US$100.16/g.
SG ABOVE 89% BUT BELOW 90% US$99.10/g.
SG ABOVE 80% BUT BELOW 85% US$98.04/g.
SG ABOVE 75% BUT BELOW 80% US$96.98/g.
SAMPLE BELOW 10g BUT ABOVE 5g US$95.39/g.

Fire Assay CASH $100.69/g.

NB: Fire Assay cash price is for gold above 100g; no sample is deducted.
A sample of not more than 10g is deducted for the Fire Assay Transfer price.
A 2% royalty is charged on all deposits (Small-scale miners).
A 5% royalty is set for Primary Producers.

DISCO Calls for Urgent Repeal of Obsolete 1942 Iron and Steel Act

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DISCO Calls for Urgent Repeal of Obsolete 1942 Iron and Steel Act

The CEO of Dinson Iron and Steel Company (DISCO), Mr. Ben Xu (also known as Tanaka Shumba), has called on the Government of Zimbabwe to urgently review and amend the Iron and Steel Industry Act of 1942, which he says no longer reflects the current realities and demands of modern steel manufacturing, Mining Zimbabwe can report.

By Rudairo Mapuranga

Speaking during the Chamber of Mines Annual General Meeting in Victoria Falls, Shumba — whose company is spearheading the country’s largest steel project in Manhize — emphasized that Zimbabwe’s industrial future cannot be built on outdated legislation crafted 82 years ago when “the world was still using steam trains.”

“Of particular importance is the review and amendment of the Iron and Steel Industry Act of 1942, which has long been rendered obsolete by the evolving demands of the steel sector,” Shumba said to a round of applause.

DISCO, a subsidiary of Chinese steel giant Tsingshan Group, has already started production of pig iron and steel billets and is now producing reinforced steel bars from 12mm to 32mm, with a total installed capacity of 600,000 tonnes annually. The project is a flagship for Zimbabwe’s industrialisation under Vision 2030 and has received National Project Status.

Shumba’s call comes at a time when Zimbabwe is seeking to reduce steel imports, save foreign currency, and build local capacity in downstream steel industries. He revealed that DISCO had already saved a major local project foreign currency by replacing planned imports with local supply.

“At the Stanbic dinner, I sat next to someone managing the construction of a sports stadium. He said he was going to import steel. I told him, ‘There’s no need. The steel is already here at Manhize from DISCO,’” Shumba shared.

But despite such breakthroughs, Shumba warned that without clear, modern legal backing, Zimbabwe’s steel ambitions could be slowed down.

“The industry has undergone significant changes since 1942 — advancements in technology, shifts in market dynamics, and an increased focus on environmental sustainability. We must comprehensively review the current legal framework to attract investment and support value addition,” he urged.

Steel Built on Resilience and Vision

Tracing DISCO’s journey from vision to reality, Shumba paid tribute to the Government of Zimbabwe for its unwavering support. He noted that the dream began in 2018 when President Emmerson Mnangagwa met with Tsingshan’s chairman in China and committed to making the plant a reality.

“From a three-hour boardroom discussion in 2018, to the groundbreaking in 2022, to pig iron production in June 2024 — DISCO is now fully operational,” said Shumba.

He applauded key ministries and agencies — including the Ministries of Mines, Finance, Industry, and the Zimbabwe Investment and Development Agency — for facilitating permits, land, energy coordination, and logistics.

“This is what real industrialisation looks like. We are not just making steel; we are rewriting Zimbabwe’s economic story,” Shumba declared.

Local Empowerment and Regional Industrialisation

DISCO has embraced the Local Enterprise Development (LED) programme, forming joint ventures with Zimbabwean businesses to strengthen downstream industries. Shumba said these partnerships will fast-track import substitution and create thousands of jobs.

He further revealed that the company was working on ISO 9001 certification and that the Standards Association of Zimbabwe (SAZ) had confirmed DISCO steel surpasses international standards.

“We want our steel to be known as the best in the world — not just in compliance, but in quality and vision,” he said.

DISCO is also exploring investments in renewable energy and railway rehabilitation, including the launch of a “Grand Railway Solution” to enhance logistics for both domestic and regional steel trade.

“Steel is the backbone of every economy. It’s time our legal instruments matched our ambition. Let us move together and update the Iron and Steel Act — so that Zimbabwe’s resilience can meet global excellence,” he said.

Karo Moves Toward New Bond Listing as Investor Interest Grows

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Karo Moves Toward New Bond Listing as Investor Interest Grows

Zimbabwe’s emerging platinum group metals (PGM) development project, Karo Platinum, is preparing to issue a new bond on the Victoria Falls Stock Exchange (VFEX) as it pushes ahead with the next phase of project development, Mining Zimbabwe can report.

By Rudairo Mapuranga

Speaking to representatives from leading banks and financial institutions who visited the Karo site in Mhondoro-Ngezi on Tuesday, the company’s Country Director, Dr. Joe Zimba, confirmed that preparations for a follow-up bond are underway.

Following the successful issuance and listing of its first bond in 2022, which raised US$36.8 million, Karo is now engaging investors in preparation for an expanded bond offering. While the exact amount of the upcoming bond was not disclosed, Zimba made it clear that the company is open to over-subscriptions and is finalising key terms.

“We’re scheduling one-on-one meetings with interested parties starting next week,” said Dr. Zimba. “That’s when we’ll bring in our finance director to walk through the bond structure—tenure, coupon, and other technical details. The objective is to ensure everyone has the clarity they need ahead of participation.”

The new bond will include amendments to the current structure, including a revised coupon rate to reflect market conditions. An Extraordinary General Meeting (EGM) of current bondholders is being scheduled to approve the changes, which will also include extending the bond’s tenure.

Dr. Zimba emphasised that the existing bond, due to mature in December 2025, was never pegged to mine production timelines but was instead backed by guarantees independent of output. He, however, acknowledged that while the company had hoped to reach production earlier, global PGM price volatility had impacted project timing.

“We are not yet in production, but the bond was never dependent on that milestone. What matters is that the guarantees remain intact, and our commitment to deliver the project has never wavered,” said Dr. Zimba.

The Karo project has already absorbed more than US$160 million in expenditure, with visible infrastructure such as bulk earthworks, power lines, and road access taking shape on site. According to the company, this new round of fundraising will take the development several steps closer to production.

The site visit by financial institutions marked an important step in the engagement process. Dr. Zimba and his team, including project and finance officers, fielded questions from potential investors eager to understand the bond’s structure, use of proceeds, and current progress on the ground.

Karo officials were also transparent about the next steps. A revised prospectus will soon be issued, following board resolutions and updated documentation, before the bond is relisted on the VFEX. Dr. Zimba said a strong appetite from both existing and prospective bondholders had already been recorded, with several financial institutions signalling interest in participation.

While the company is also pursuing a separate project finance package, expected to materialise in the third quarter of 2025, the bond remains a crucial part of the capital-raising mix. It provides local investors with a rare opportunity to participate in one of Zimbabwe’s most significant mining ventures.

“What we are building here is not just a mine,” said Dr. Zimba. “It is an industrial operation that will transform Zimbabwe’s platinum industry and contribute significantly to the national economy.”

Karo Platinum is a project under Karo Mining Holdings, which is owned by Tharisa Plc. Its long-term vision aligns with Zimbabwe’s economic development strategy and is expected to contribute to employment creation, infrastructure development, and forex generation.

As Zimbabwe continues to position the Victoria Falls Stock Exchange as a preferred capital-raising platform for resource-backed investments, the Karo bond stands out as a defining example of public-private collaboration. Karo’s decision to issue a second bond not only signals investor confidence but also reinforces the company’s intent to stay the course and deliver a world-class PGM operation.

With the bond process now in motion and project finance discussions progressing, all eyes are on Karo’s ability to execute. And judging by the reception from the financial community this week, confidence in the project is growing.

Gold Prices Per Gram from Fidelity Gold Refinery Hit Over US$100/ gram

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Gold Prices Per Gram from Fidelity Gold Refinery Hit Over US$100/ gram

Harare, 27 May 2025 – In a significant development for Zimbabwe’s gold sector, Fidelity Gold Refinery (FGR) has announced buying prices that now exceed US$100 per gram — a milestone that has excited small-scale and artisanal miners across the nation.

According to the latest gold buying prices released today, gold with a Specific Gravity (SG) of 90% and above is fetching US$101.55 per gram, while fire assay-tested gold above 100 grams is commanding a premium cash price of US$102.09 per gram.

Full Price Breakdown (27 May 2025 – Fidelity Gold Refinery):

  • SG 90% and ABOVE: US$101.55/g
  • SG ABOVE 89% BUT BELOW 90%: US$100.48/g
  • SG ABOVE 80% BUT BELOW 85%: US$99.40/g
  • SG ABOVE 75% BUT BELOW 80%: US$98.33/g
  • Sample BELOW 10g BUT ABOVE 5g: US$96.72/g

Fire Assay CASH Price: US$102.09/g (for gold over 100g, with no sample deduction)

These prices reflect Zimbabwe’s effort to incentivise local gold deliveries and strengthen its gold reserves amid a volatile global market.

Royalty Charges

As per FGR policy:

  • A 2% royalty applies to all deposits from small-scale miners.
  • A 5% royalty is applied to primary producers (larger-scale operations).

Boost for Local Miners

The surge in prices past the US$100/g mark is being hailed as a positive move, especially for Zimbabwe’s tens of thousands of small-scale miners who form the backbone of local gold production. Many see this as a long-awaited reward for their efforts and a motivator to channel more gold through formal channels.

Gold buying prices per gram in Zimbabwe, 27 May 2025

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Gold buying prices per gram in Zimbabwe, 27 May 2025

Gold buying prices per gram in Zimbabwe today, 27 May 2025, from the official gold buyer and exporter Fidelity Gold Refinery (FGR).

SG 90% and ABOVE US$101.55/g.
SG ABOVE 89% BUT BELOW 90% US$100.48/g.
SG ABOVE 80% BUT BELOW 85% US$99.40/g.
SG ABOVE 75% BUT BELOW 80% US$98.33/g.
SAMPLE BELOW 10g BUT ABOVE 5g US$96.72/g.

Fire Assay CASH $102.09/g.

NB: Fire Assay cash price is for gold above 100g; no sample is deducted.
A sample of not more than 10g is deducted for the Fire Assay Transfer price.
A 2% royalty is charged on all deposits (Small-scale miners).
A 5% royalty is set for Primary Producers.

Mine planning with Engineer Nigel Mukonoweshuro

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Mine planning with Engineer Nigel Mukonoweshuro

Underground mine planning and design in complex orebodies is a multifaceted process that requires an intricate balance between maximising economic value, ensuring geotechnical stability, and maintaining operational continuity. As orebodies become deeper, more structurally complex, and economically marginal, mining engineers must employ advanced tools, data integration, and cross-disciplinary collaboration to optimise designs.

By Keith Sungiso

In this insightful interview, Engineer Nigel Mukonoweshuro BSc. (Hons) Mining Engineering, GMDP, CPM, MSAIMM, MAusIMM shares his expert perspective on the challenges and innovations in underground mine design and planning.

How do you determine optimal stope dimensions and orientation for maximum ore recovery and geotechnical stability in a complex orebody?

Determining the optimal stope dimensions and orientation requires a balance between maximising ore recovery and geotechnical stability. 3D geological modelling helps to understand the orebody’s geometry and structure, and these are followed up by geotechnical investigations to determine key matrix like your Rock Mass Rating (RMR) from Uniaxial Compressive Strength (UCS) and triaxial strength of the host rock. Stope orientation is usually parallel to the dip of the orebody to minimise dilution, and this should be favourable to reduce stress concentrations. Preliminary stope designs are based on stability checks, and historical data based on similar ground conditions. Numerical modelling and stability analysis then help to simulate extraction and refine the preliminary designs. Dilution and ore recovery factors are also analysed. Economic and scheduling constraints also come into play evaluated by cut-off grades, type of equipment (their access and productivity), and sequencing of blocks to minimise stress build-up. Other key considerations include hydrogeological (water inflow) and ventilation factors.

How do you incorporate evolving resource models and grade control data into long-term mine plans without disrupting production continuity?

Immediately, three key terms should come to mind, mine planning stages (strategic (long term), tactical (medium term) and operational (short term)), data reconciliation and risk management. The first step is to establish rolling strategic (long–term) and tactical (medium) term plans. These plans should be flexible and subject to periodic review. Resource model updates should be done regularly and integrated into the existing plans. Reconciliations and variance analysis will be used to refine the estimation parameters and planning assumptions applied through the determination of your F-factors. Reconciliation should be an implicit part of the mining process, and reconciliation targets should be a key performance indicator for well-run mines.

Scenario planning and sensitivity analysis are then utilised to assess the stability of the strategic (long-term) and tactical (medium-term) plans. Your grade control data should feed into your operational (short-term) plans on a weekly and monthly basis and then progressively into the tactical and strategic plans in that order. What is also key is to have your mine models designed in modular blocks or phases to allow updates to only affected areas/zones, thus making the process manageable. A cross-functional review process should also be established to allow for the integration of different functions (geology, mine planning, operations and finance) and trigger action planning when major shifts and alignment to production priorities. Your model updates should align with the operation’s budget cycles or annual planning and production reforecasts. A good record of the updates and changes also supports accountability and future planning audits.

With increasing pressure on cost efficiency, what innovations in underground design or scheduling have yielded the most value in your operation?

Some of the most valuable innovations in our underground mine design came with digital integration and strategic design choices. Development design optimisation software helps us to reduce development costs. Stope optimisation software allows us to rapidly reforecast and auto-schedule production utilising real-world operational rules.  Drill and blast optimisation software has allowed for less overbreak and optimised fragmentation, which reduces secondary blasting. The use of digital tools and technology incorporating LiDAR scanning allowed for seamless development and stope excavation measurement for reconciliation processes. The use of semi-autonomous equipment has also reduced our labour costs, improved productivity and allowed for the removal of man from high-risk tasks/zones.

 

How do you manage trade-offs between ore recovery, dilution, and safety when designing stopes and production sequences?

Firstly, a multi-criteria approach is key to an advanced mine planning approach. An integrated value-based design framework is utilised, measured by the Net Smelter Return (NSR) or value per tonne of ore mines. Modelling and analysis of trade-offs for:

  • Stope shape optimisation is done using modelling software and economic outcomes are compared for different designs.
  • Dilution vs Safety, where wider stopes increase recovery but lead to unstable spans and hence wall failure, so safe stope spans should be employed, and
  • Ore recovery vs safety, where maximum recovery will require tighter stope boundaries near wall contacts and increase risks of overbreak and unsupported voids. This is regulated by the enhancement of ground support design and sequencing adjustment to control exposure of man (lead and lag of stopes).

Overall, the mine design should be practical and flexible. Production sequencing will require a balance of ground conditions and value attained from extracting the stopes (block evaluation). The trade-offs highlighted above should be quantified and compared to evaluate stope designs. Monitoring of the actual recoveries and dilution provides a feedback loop that allows for design improvement in future mining.

Given Zimbabwe’s energy supply challenges, how do mine plans incorporate power reliability, ventilation demand, and backup systems?

Mine plans now incorporate energy availability into both the design and operational strategies. Shift scheduling should be based on power availability to allow for high-energy activities to utilise off-peak periods. Equipment deployment should also be staggered to avoid simultaneous startups at once. Development scheduling should also allow for ventilation as it goes especially in shaft sinking or decline systems.

Ventilation management can integrate the use of Ventilation on Demand (VoD) i.e., use of sensors and schedules to control underground airflow. Fan selection should include the use of high-efficiency axial fans or the use of variable speed drives (VSDs) on main or booster fan installations.

Use of backup and hybrid energy systems such as diesel generators and/or solar systems, which lower base demand and stabilise power during peak outages.

Plans should allow for buffering of headings and the creation of stope inventories for flexibility and maintenance of the production schedules.

What role do software and digital mine planning play in your daily work, and which tools have proven most reliable under local conditions?

The core roles of digital mine planning tools are for 3D geological and resource modelling, stope and development design, scheduling and production planning, and reporting and communication. Various tools are utilised in different mining operations in Zimbabwe, but the Deswik Suite comes highly recommended under local conditions. Other software packages include Datamine Studio UG/Studio RM, Leapfrog Geo (for geological modelling), Maptek (Vulcan and Evolution), and AutoCAD/MineSight, although less flexible, but are useful for most legacy systems.

How are sustainability and ESG considerations shaping the future of underground mine planning in Zimbabwe?

Sustainability and Environmental, Social and Governance (ESG) are increasingly redefining the future of mining in Zimbabwe, driven by both regulatory and economic necessity.  Companies are now under scrutiny from investors, the community, and the government to align with the Sustainable Development Goals. Environmental considerations are being made on mind design to cater for water management, energy efficiency, carbon reduction and environmental rehabilitation at the closure of operations. Social impacts and community expectations are being met with access designs being planned away from community zones, employment of locals and progressive rehabilitation for future land use. Planning Teams are increasingly required to document ESG risks with technical studies and mine design documentation in alignment with the Environmental Management Act and other guiding principles such as the Global Reporting Initiative (GRI). Technology also now plays a part in monitoring key elements such as water quality, emissions and noise utilising the Internet of Things (IoTs). In future, ESG compliance will become central to financing as investors and Banks will increasingly demand transparency in ESG-integrated feasibility studies.

How do you calculate the economic cut-off grade for an underground operation, considering factors like mining cost, recovery, and metal price?

This calculation integrates several key variables, i.e., mining cost, processing, and General and Administration (G&A) costs, metal prices, recoveries, and payability. Your economic cut-off grade in an underground mine distinguished between ore and waste.

A simple equation for economic cut-off grade for a single metal mining operation is given as:

COG=C/(R*P*F)

Where:

  • C = Total cost per tonne (Mining + Processing _ G&A) in $/t
  • R = Recovery rate (given as a decimal e.g. 0.85 to 0.95 this is based on lab test and plant performance.
  • P = Metal price in $/oz or ($/g or $/t)
  • F = Payability factor (if selling concentrates) (if selling to a smelter or refinery, you apply deduction factors, e.g. 98%).

For multi-metal (polymetallic) deposits, the Net Smelter Return (NSR) approach is used and the NSR/t is compared to the cost per tonne. COG is applied to mine planning for block modelling and generation of ore/waste classifications.

Can you share insights into how mine planning aligns with compliance, such as Mine Survey regulations, Safety Standards, or Environmental Management Plans?

Cross-functional planning teams involve Mine Planners, Geologists, Geotechnical Engineers, Surveyors, Environmental Officers and SHEQ Personnel, which ensures legal obligations, risk management and stakeholder expectations are built into the mine plan from the onset. Misalignment risks legal penalties, operational delays and the loss of social license to operate.

Mine Survey Regulations stipulate how mine plans should comply with the Mining (Management and Safety) Regulations SI109 of 1990 and subsequent updates, giving accurate spatial data for legal boundaries, certified survey outputs and stope tonnage reconciliation and void tracking.

Safety and Occupational Health Standards guide how mine designs comply with ground support requirements, establishment of escape routes and refuge bays, ventilation planning, blasting and explosives regulations.

Environmental Management Plan (EMP) integration stipulates for designs that minimise surface disturbance, meet progressive rehabilitation/reclamation goals and plans for water management.

Regulatory submissions and reviews require quarterly production reports where the mine plan provides the stope tonnage estimates, survey submissions reflecting actual developments, environmental audits require plans showing the disturbed areas, water use and backfilling (if any) and safety files showing drawings of escape routes, support designs and ventilation plans.

Lastly, what advice would you give to young Zimbabwean professionals aspiring to become mine planners in a rapidly evolving mining sector?

I will close off this interview with a quote by an Abstract African, which says, “The future belongs to those who believe in the beauty of their dreams.”

Success in the Mine Planning field does not depend only on technical competence but the ability to adapt, lead and think systematically in an evolving and sometimes resource-constrained environment. Proficiency in software is a non-negotiable advantage in modern planning. Pursue certifications and continuous improvement through learning new skills. Get mentorship and field exposure, and be bold to explore new approaches.

“The future of Zimbabwe’s mining landscape requires Mine Planners who can think like Engineers, act like Economists and speak like Strategists.”

You can get in touch with Eng Mukonoweshuro at [email protected]

PGM Sector Grapples with 77% Effective Tax, Power Woes, and Currency Losses — Kwesu

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PGM Sector Grapples with 77% Effective Tax, Power Woes, and Currency Losses — Kwesu

Zimbabwe’s Platinum Group Metals (PGM) sector, a major foreign currency earner second only to gold, is reeling from a combination of suppressed global prices, power supply fragility, and a punishing effective tax burden now estimated at a staggering 77%, Mining Zimbabwe can report.

By Rudairo Mapuranga

Speaking during the Chamber of Mines Annual General Meeting in Victoria Falls, Chamber CEO Isaac Kwesu painted a sobering picture of the industry’s current struggles. He warned that despite Zimbabwe’s enviable geology—boasting the third-largest PGM reserves in the world—the sector’s contribution to national exports had dropped to 26% in 2024, down from previous highs, due largely to subdued prices and operational hurdles.

“Gold is now contributing more than 43% to national exports, a figure previously shared with PGMs, which have been severely affected by price declines and rising production costs,” Kwesu said.

The CEO noted that formal employment in the sector remains around 10,000, roughly 20% of total formal mining jobs in the country, with current producers still running robust local enterprise development and community empowerment programs.

However, he stressed that these contributions were under threat.

“The sector has seen effective tax rates rise from 70% to 77% when factoring in all payments to government and its related entities. This is happening in an environment where revenues are falling, viability is under pressure, and price recovery remains uncertain,” Kwesu warned.

Electricity Crisis and Power-Hungry Smelters

One of the most pressing challenges, Kwesu said, is Zimbabwe’s fragile power supply. Some PGM smelters were suspended in late 2024 due to electricity shortages.

“Smelting capacity has expanded significantly over the past year, and power demand is projected to surge beyond 500 megawatts in the coming years—up from the current average of 200 megawatts,” he revealed.

While some producers have turned to alternative energy solutions, the Chamber is pushing for industry prioritization in electricity allocation through ongoing engagements with ZESA and government authorities.

Foreign Currency Shortages and Implicit Taxes

Kwesu also decried the foreign currency retention framework, highlighting that the disparity between the official and black market exchange rates erodes the value of forex retained through official channels.

“The forced liquidation of a portion of export earnings at the official rate effectively acts as an implicit tax on miners,” he said, adding that this has significantly undermined the sector’s ability to procure imported inputs.

Output and Revenue Drop

In terms of production, the Chamber noted slight declines in output year-on-year: palladium production dropped from 19.1 tonnes in 2023 to 18.9 tonnes in 2024, while platinum output dipped from 15.9 tonnes to 15.6 tonnes over the same period.

These production losses, coupled with price pressure, saw total PGM export revenues fall from US$1.55 billion in 2023 to US$1.5 billion in 2024.

Hope in Expansion Projects and New Entrants

Despite these setbacks, Kwesu remained cautiously optimistic. He highlighted new PGM projects underway by Karo Resources, Great Dyke Investments, Bravura, and Todal Mining. He also noted ongoing expansion projects at existing giants—Zimplats, Mimosa, and Unki—which are investing in beneficiation and smelting capacity.

“Zimbabwe has over 32 million ounces of PGM reserves—comparable to North America and parts of South Africa’s Bushveld Complex. This provides long-term opportunities if we can survive this difficult phase,” Kwesu emphasized.

Regulatory Bottlenecks

On the regulatory front, the CEO lamented delays in VAT registration processes for new projects, which he said were tying up capital required to begin operations.

He urged the government to refine policy clarity, stabilize the operating environment, and reduce the cost of doing business for the PGM sector to retain investor interest.

A Call for Urgent Support

With expansion efforts underway and billions of dollars in investment potential on the line, Kwesu said the sector urgently needs government support.

“Our producers are doing all they can to remain afloat and expand. But without a more investor-friendly fiscal and policy framework, the sector risks stagnation,” he warned.

As Zimbabwe eyes Vision 2030, the message from the Chamber of Mines is loud and clear: the PGM sector remains a pillar of the mining economy—but it cannot bear the burden of high taxes, poor infrastructure, and policy uncertainty alone.

“We’re Not Just Digging—We’re Building an Industry” – Lithium producers

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“We’re Not Just Digging—We’re Building an Industry” – Lithium producers

Lithium Producers Urge Zimbabwe to Support Value Addition with Fair Policy and Infrastructure

Zimbabwe’s lithium sector is not just exporting raw minerals—it is building a future, Chairman of the Lithium Producers Committee and CEO of Sinomine-owned Bikita Minerals, Gong Xuedong, said.

By Rudairo Mapuranga

As he addressed policymakers and stakeholders during the 2025 Chamber of Mines Annual Mining Conference and Exhibition in Victoria Falls, Xuedong painted a vivid picture of a rapidly evolving industry—one that has already invested over US$1.2 billion since 2021 and created over 5,000 direct and indirect jobs. Yet, he warned that despite these achievements, the sector’s long-term viability hinges on policy alignment, supportive infrastructure, and a collaborative approach with the government.

“We are not just digging—we are processing,” Xuedong declared. “We’re investing, adding value, and building an industry that can lead Africa in lithium production.”

A Sector on the Move

Zimbabwe’s lithium production has seen exponential growth. Exports leapt from just US$7 million in 2022 to over US$600 million in 2023—a staggering 800% jump. Key players such as Bikita Minerals, Prospect Lithium Zimbabwe (PLZ), Sabi Star, Kamativi, Bravura, and Sandawana are at various stages of developing beneficiation plants, with annual processing capacities now reaching 600,000 tonnes for Bikita and PLZ, and 300,000 tonnes for Sabi Star and Kamativi.

“Three companies—Bikita, PLZ, and Kamativi—have already committed to investing US$700 million collectively in lithium sulphate plants. That’s how serious we are about value addition,” Xuedong said.

Challenges Threatening Growth

Despite these strides, the sector is battling four main challenges: infrastructure, finance, regulation, and skills.

1. Power and Raw Material Shortages
Xuedong emphasised the urgent need for a stable electricity supply, particularly as companies shift to midstream operations like lithium sulphate production, which require more complex raw materials and uninterrupted power.

“Infrastructure, especially power, is a key challenge. Without reliable electricity, we can’t maintain efficient operations or scale beneficiation,” he said.

2. Financial Constraints and Low Lithium Prices

With global lithium prices plummeting, the business case for heavy investment in beneficiation has become increasingly fragile. High capital expenditure, limited credit access, and volatile pricing are stifling growth.

“The current lithium price is affecting our viability. We are investing with a long-term vision, but without support, future investment may be at risk,” he cautioned.

3. Unfair Taxation and Regulatory Misalignment

Xuedong raised serious concerns over Zimbabwe’s royalty structure, which currently imposes the same high rates on raw and processed lithium products. Additionally, a 5% levy is being applied to beneficiated products, undermining the government’s own value addition goals.

“This is discouraging investment in beneficiation. We ask the government to develop clear, fair, and consistent tax policies,” he urged.

4. Need for Technical Skills and Flexible Labour Policy

As Zimbabwe moves up the lithium value chain, companies are grappling with a shortage of skilled technical labour. Xuedong appealed for the government to ease restrictions on the importation of specialist foreign workers, especially for high-investment projects.

“We understand the need to protect local jobs, but for large projects bringing advanced technology, there should be special policies. Investors who bring in US$100 million or more should not be treated the same as small players,” he said.

Committed to Sustainability and Community Development

Xuedong also used the platform to underscore the industry’s commitment to ESG principles. Companies, he said, are not only complying with environmental standards but actively contributing to community development.

“We plant trees, manage dust and water, build schools, clinics, and roads. We hire locally. Our goal is not only profit—it’s to grow Zimbabwe sustainably,” he said.

A Call for Partnership and Policy Stability

In his closing remarks, Xuedong struck a hopeful yet firm tone, calling for deeper collaboration between government, communities, and investors.

“Lithium is a gift to Zimbabwe. Let’s treat it with care. Give us stable policy, reliable infrastructure, and supportive partnerships—and we will lead Africa in lithium,” he said. “If you doubt our commitment, just know we’ve already invested US$1.2 billion in less than three years. We want to do more.”

Mines Amendment Bill Returns to Parliament—Again: Chitando Says It Will Be Gazetted in Two Weeks

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Mines Amendment Bill Returns to Parliament—Again: Chitando Says It Will Be Gazetted in Two Weeks

Zimbabwe’s long-awaited Mines and Minerals Amendment Bill, hailed as the key to unlocking responsible and modernised mining in the country, is now set to be gazetted “in the next two weeks,” Mines and Mining Development Minister Hon. Winston Chitando said.

By Rudairo Mapuranga

Speaking at the Chamber of Mines Annual General Meeting on Friday in Victoria Falls, Chitando confirmed the government’s intention to finally move forward with the Bill, whose history is riddled with false starts, legal objections, and over a decade of delays.

“We have a very good opportunity time because the amendments to the Mines and Minerals Act are being gazetted in the next two or so weeks,” Chitando said. “Working together with the Parliamentary Committee and the ruling party, we must make these amendments clear and give them teeth.”

However, this is not the first time the Bill has been gazetted. The Mines Bill was previously gazetted during the Ninth Parliament, only to be stalled by constitutional inconsistencies and a lack of political consensus. In 2018, the Bill even reached President Mnangagwa’s desk but was sent back for further revisions after concerns were raised about clauses that risked centralising excessive power in the Ministry of Mines.

The President himself, in a speech during the opening of the First Session of the 10th Parliament, underscored the importance of finalising the Bill. He placed it among key legislative items that must be completed without further delay.

“The Mines and Minerals Amendment Bill… which was outstanding from the Ninth Parliament, must be concluded during the First Session of this Parliament,” said President Mnangagwa, urging lawmakers to act.

“Use It or Lose It” Principle to Be Strengthened

A major highlight of the new Bill is the legal reinforcement of the “use it or lose it” policy—an area the Ministry of Mines has publicly struggled to enforce under the existing law. Chitando made it clear that title holders who continue to sit on claims without developing them will face forfeiture.

“We cannot continue allowing individuals or companies to hold mining titles and do nothing. That is speculation. If you’re not developing your mine, you will lose the title,” said Chitando.

The Minister lamented how Zimbabwe’s mineral sector growth has been hampered by speculative landholding, with some title deeds dating as far back as the 1970s still undeveloped.

Environmental Violations Will Cost You Your Claim

Chitando also announced a radical shift in how environmental accountability will be enforced. In line with the Responsible Mining Initiative, environmental negligence will now carry legal consequences, including the loss of mining rights.

“There is no reason to maintain a mining title when you damage the environment. If you violate the environment, you lose your mining title—simple,” he declared.

He cited examples of destructive coal and granite mining operations that have left roads unusable and communities at risk, describing some current practices as “irresponsible” and unsustainable.

Strategic Minerals and Local Reservations

The upcoming Bill will also formalise the classification of certain minerals as “strategic,” giving the state greater control over key commodities such as lithium, platinum, and rare earths. Furthermore, certain mining blocks and claim sizes will be reserved for Zimbabwean citizens.

“The amendments will include having some conditions in terms of size being reserved for locals. This is about ensuring our people benefit from the mineral wealth beneath their feet,” said Chitando.

Special Mining Leases to Be Tied to Mutual Benefit

The Bill will also tighten the framework for awarding Special Mining Leases (SMLs) for investments above US$100 million. The government will demand reciprocal value from investors who seek policy stability guarantees.

“Some companies want all the benefits of a Special Mining Lease, but there’s no upside for the government. We are saying: if we guarantee stability, then you must guarantee value in return,” the Minister emphasised.

Over a Decade of Delay

The Mines and Minerals Act (1963) is widely regarded as outdated and unfit for Zimbabwe’s 21st-century mining ambitions. Efforts to overhaul it began over ten years ago, yet the process has been repeatedly derailed by stakeholder disagreements, constitutional hurdles, and lack of momentum.

In 2023, the Parliamentary Legal Committee ruled that the previous draft violated several constitutional provisions, forcing further revisions. Earlier this year, the Bill underwent public consultations across the country under the oversight of the Parliamentary Portfolio Committee on Mines and Mining Development.

Despite repeated commitments, critics say the delay has enabled land hoarding, lack of transparency in title allocation, weak enforcement on ESG compliance, and minimal community benefit.

Hope for a New Era

If passed, the Bill could usher in a new era for Zimbabwe’s mining sector—one where mineral resources are no longer hoarded, communities are respected, and environmental protection is taken seriously.

“Let’s all respect the law,” Chitando told delegates. “You follow the law, and government will follow the law. That’s how we unlock growth in the mining sector in a responsible manner.”

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