Mining ZimbabweLatest Mining News, Policy and Industry Updates

Central banks around the world are expected to continue increasing their gold reserves, extending a trend that has already seen record levels of bullion buying over the past three years.

By Ryan Chigoche

According to the World Gold Council’s (WGC) latest Central Bank Gold Survey, 95% of the 73 central banks that participated believe global gold reserves will grow over the next 12 months.

Notably, 43% said they expect their own holdings to increase — the highest proportion recorded since the survey began and up significantly from 29% in 2024.

Last year marked the third-largest annual increase in central bank gold reserves on record, with net purchases reaching 1,129.8 tonnes.

That figure was just 6.2 tonnes below 2023 levels and only 91 tonnes short of the all-time high of 1,136 tonnes set in 2022 — the largest annual total since at least 1950.

To put that in context, central bank gold purchases averaged just 473 tonnes annually between 2010 and 2021.

The current buying streak has now extended into its 16th consecutive year.

The WGC noted that the rise in survey participation is not merely statistical but “a powerful signal of engagement with gold amongst the central banking community.” Seventy-six percent of respondents said they expect gold to hold a moderately or significantly higher share of total reserves over the next five years, up from 69% in last year’s survey.

“Expectations point to continued gold buying over the next 12 months, reflecting sustained confidence in gold’s strategic role amid evolving geopolitical and macroeconomic dynamics,” the WGC stated.

Declining Role of the Dollar

While gold’s share of global reserves has been rising, the U.S. dollar’s role has been slipping.

IMF data shows the dollar accounted for 57.8% of global reserves at the end of 2024 — its lowest level since 1994 and a 7.3 percentage point decline over the past decade. In 2002, the dollar made up roughly 72% of reserves.

WGC survey data suggests this trend is likely to continue. About 73% of central banks said they expect their dollar reserves to fall further over the next five years. The euro’s share of global reserves has remained relatively steady, meaning that gold — rather than the euro — has taken up the space left by the dollar’s decline.

Analysts have pointed to concerns about sanctions and the politicisation of major reserve currencies as reasons for the shift. As CNBC noted, gold is increasingly attractive to countries looking to shield themselves from the potential erosion of traditional monetary systems.

Why Gold?

The WGC survey found that interest rates are the most important factor influencing reserve management decisions. Inflation was cited as the second most important. Among emerging markets and developing economies (EMDEs), inflation and geopolitical risks were tied as the top reasons for buying gold, each cited by 84% of respondents.

When asked to rank the relevance of various factors in their gold allocation decisions, central banks pointed to gold’s historical performance during crises and its function as an inflation hedge as the most compelling attributes.

As the WGC concluded, “Gold’s safety, liquidity and return characteristics — the three key investment objectives for central banks — have risen in importance.” The Council added that demand for gold is expected to “remain healthy for the foreseeable future” as diversification and risk management become central to reserve policy.

Nickel has surpassed lithium as the most valuable battery metal used in electric vehicles (EVs) so far this year, according to a new report by Toronto-based research firm Adamas Intelligence.

By Ryan Chigoche

This shift comes despite falling prices across the battery metals sector and growing adoption of nickel-free battery chemistries.

Much like cobalt and lithium, nickel has endured extreme price volatility since the EV boom sent demand projections sky-high. A memorable peak occurred in March 2022, when a short squeeze involving Elliott Management’s Paul Singer and Tsingshan’s Xiang Guangda drove prices above $100,000 per tonne within minutes.

The incident triggered over $12 billion in cancelled trades, legal disputes, and a major rethink of the London Metal Exchange’s rules—but its market impact was short-lived.

Nickel sulphate prices, used in EV battery cathodes, briefly soared above $30,000 per tonne (100% Ni basis) but have steadily declined since, averaging around $17,000 in the second quarter of 2025.

Lithium’s fall has been even steeper. After peaking above $80,000 per tonne in late 2022, prices collapsed to $8,450 by June this year—a nearly 90% drop in under three years.

Yet despite these price corrections, nickel has taken the lead in deployed value in EVs. Between January and May 2025, global EV sales consumed $2.2 billion worth of nickel, edging out lithium’s $2.15 billion, according to the Adamas Intelligence data.

This trend highlights the continuing importance of nickel-rich chemistries in EV battery design, particularly for high-performance and long-range vehicles.

This comes even as nickel-free alternatives like lithium iron phosphate (LFP) gain traction. LFP batteries now represent nearly half of all EV battery capacity deployed this year, a dramatic rise from less than 1% at the start of the decade.

In Zimbabwe, the nickel landscape reflects broader global challenges. The country’s largest nickel producer, Bindura Nickel Corporation (BNC), remains shut due to ongoing operational and financial difficulties.

As a result, national output is now primarily derived from PGM operations run by major players such as Zimplats, Mimosa Mining Company, and Unki Mine, where nickel is recovered as a byproduct.

Despite the price slump and supply shifts, nickel continues to hold its ground as a critical material in the energy transition—remaining a key target for investors and battery manufacturers alike.

Kavango Resources is positioning the historic Nara gold mine for a major comeback, with early observations suggesting the potential to process high-grade ore ranging between 5 and 20 grams per tonne (g/t). This became clear during the new General Manager Everjoy Ngomatiti’s recent tour of the mine, which brought senior management face-to-face with both the site’s promise and its challenges.

By Ryan Chigoche

During the tour of the Killarney shaft — a key part of the Nara project — Kavango executives outlined their technical vision for reviving the mine, located within Zimbabwe’s historically rich Filabusi greenstone belt. The shaft, once mined down to the seventh level, is now flooded from levels five through seven. However, its historical production of approximately 20,000 ounces between 1938 and 1959 offers a solid foundation for redevelopment.

“Looking at the history of this mine as well, they mined about 20,000 ounces between 1938 and 1959. And we also don’t have the other data, but from the look of things, we’re talking of grades ranging between five grams per tonne to 20 grams per tonne, with the reef, which is like 20 centimeters to up to 1.5 meters wide. So there’s lots of potential. I believe there’s potential. Of course, we still need to come in and do the drilling, get more geological data, but there’s lots of potential here,” Ngomatiti said.

This would be a significant achievement, especially considering that one of the country’s biggest miners, Freda Rebecca, currently processes ore with a grade of around 1.55 grams per tonne.

Kavango believes the Nara project area may host up to four kilometres of gold-bearing strike. Identifying and proving up the first mineable resource along this corridor is now a priority.

“So, looking at the entire project area, we believe we have up to four kilometers of strike stretching from the west of the ground to the east behind us. So one of the key objectives that Everjoy and I have been looking at for the first time today is how we can build up our first mineable resource to deploy our exploration team here with that specific objective in mind,” Kavango CEO Ben Turney added.

The recent site visit marked the first time that Kavango’s new General Manager, Everjoy Ngomatiti, toured the mine since assuming office just a fortnight ago. CEO Ben Turney personally accompanied him on the ground inspection of the historic Killarney shaft. Despite the flooding challenges, the company sees significant underground development opportunities. Preliminary drill tests have been completed, with results expected soon.

With Everjoy at the helm, Kavango’s underground development plan involves a phased rollout using spiral declines, requiring approximately 400 metres of strike length per section. The company intends to define, model, and control an initial 400-metre block before opening a portal, then proceed incrementally in similar-sized segments.

Reflecting on the aging infrastructure and the way forward, Kavango’s General Manager Everjoy Ngomatiti outlined the company’s focus on three key pillars: modernization, productivity, and efficiency.

He explained that improving efficiency will require modernizing the existing headgear to a larger, more productive, and more efficient design. Additionally, Ngomatiti noted that the current processing facilities rely on outdated milling techniques, and Kavango plans to replace these with more advanced carbon-in-pulp (CIP) and carbon-in-leach (CIL) plants to enhance processing performance.

He also highlighted the site’s strong gold potential, drawing from both its historical production records and recent geological assessments.

Kavango recently secured financial backing from Purebond to support the development of Nara. The site now joins the company’s growing Zimbabwean portfolio, which also includes the Hillside gold project. However, Nara is being described internally as a flagship asset due to its scale and near-term potential.

“This is the biggest project in Kavango’s portfolio. Nara is much larger than Hillside. It’s taken us longer to exercise the Nara option simply because we’ve needed to do much more work here,” Turney said. “But over the coming months, we’ll be putting out a series of announcements, providing the market and our shareholders with the data that we’ve gathered and the interpretation. We’re really excited to be here now today. It’s excellent that Purebond has given us the finances to be able to exercise this option. And with Everjoy now on the team, working with the rest of our people that we’ve recruited, we really can’t wait to get stuck into this project,” Turney said.

As Zimbabwe’s mining sector continues to battle electricity shortages, rising costs, and operational disruptions, a new energy model is quietly gaining ground — one that could reshape how mines access power. A Build-Operate-Transfer (BOT) solar solution, spearheaded by Seke Energy in partnership with Chinese multinational SANY International, is being rolled out as a zero-upfront-cost alternative tailored to miners using one megawatt and above.

By Rudairo Mapuranga

This development comes at a critical time. Zimbabwe’s miners, particularly in the Platinum Group Metals (PGM) sector, are facing compounded pressures — from crippling load shedding and rising energy tariffs to foreign currency losses and excessive taxation. According to the Chamber of Mines Zimbabwe, the country’s mining operations are becoming less competitive, with electricity accounting for up to 30 percent of total production costs.

The new BOT model offers an alternative: a solar power plant fully funded, installed, and operated by Seke Energy and SANY for an agreed period (typically 8–12 years), after which full ownership of the plant is transferred to the miner. During the BOT period, miners pay a fixed rate — currently between 10 and 13 US cents per kilowatt-hour — which is comparable to or lower than ZESA tariffs. After ownership is transferred, costs drop to around 4 US cents per kilowatt-hour, covering only maintenance.

“We’re targeting miners with proven reserves and stable operations,” says Ashley Maumbe, Managing Director of Seke Energy. “If a mine uses one megawatt or more, we set up a solar system with backup storage at no upfront cost. Once the BOT period is over, the plant becomes theirs.”

The model has also been adapted to support small-scale miners. Where a single operator may not meet the minimum threshold, clusters of five or more miners operating in the same area can be grouped to share a system.

“Small-scale miners usually lack access to reliable energy and can’t afford to invest in solar independently,” Maumbe explains. “But if they come together, we can install a one- or two-megawatt system and deliver shared power under the same BOT arrangement.”

This shift comes as the PGM sector, once a strong contributor to national export earnings, now struggles with viability. In a recent Mining Zimbabwe article, Chamber of Mines CEO Isaac Kwesu cited electricity disruptions, currency conversion losses, and a 77% effective tax burden as key factors threatening the survival of PGM mines. He warned that if urgent interventions are not introduced, some operations could scale down or shut entirely.

The Ministry of Energy and Power Development has acknowledged the need for private-sector solutions to ease pressure on the national grid, which continues to struggle with demand far outstripping generation capacity. The BOT model provides one such solution — decentralized, predictable, and affordable power, installed on-site and managed under contract.

Unlike diesel generators, which have become a common — but expensive and environmentally unfriendly — fallback, solar offers long-term sustainability. With the systems designed to last up to 25 years, the benefit to miners extends well beyond the BOT period.

Crucially, the model also shields miners from foreign currency volatility and policy inconsistencies. Currently, miners are paid 75% of their earnings in forex, yet many services, including electricity, are billed in USD at rates determined by ZESA. The solar BOT model locks in pricing, giving miners cost stability.

Industry observers note that the BOT model represents a broader shift in mining operations — from reliance on central utilities to self-sustained, private energy systems that enhance production reliability and reduce downtime.

While adoption is still in its early stages, interest is growing, particularly in regions like Mashonaland West, Midlands, and Matabeleland South, where power challenges have consistently disrupted output.

The financing structure also aligns with the challenges miners face in accessing credit or capital for infrastructure. By covering all upfront costs, Seke Energy removes a major barrier to entry for solar adoption, especially among small-to-medium-sized producers.

“You don’t need to go to the bank or raise funding. We take on the risk and the capital burden. The miner only pays for power used and eventually owns the plant,” Maumbe says.

As Zimbabwe continues its push toward a US$40 billion mining economy, energy remains one of the most pressing constraints. Solutions like the BOT solar model present a practical, scalable approach that could help unlock production capacity while contributing to the country’s renewable energy targets.

What sets this model apart is not just its technical viability, but its fit-for-purpose design: built around the needs, limitations, and realities of Zimbabwe’s miners.

“This isn’t about selling solar. It’s about solving a structural problem. If miners can’t operate due to power shortages, the entire economy suffers. What we’re offering is energy security — and a pathway to ownership.”

With miners increasingly seeking stable, affordable, and independent power sources, zero-upfront solar systems under BOT may soon become the norm — not the exception — in Zimbabwe’s evolving mining landscape.

Zimbabwe’s young mining professionals and entrepreneurs are calling for direct representation on the proposed Mining Affairs Board under the Mines and Minerals Bill, 2025. With the country’s demographic dominated by youth and their growing footprint across all levels of the mining value chain, youth organisations say their contribution must now be reflected in national mining governance structures, Mining Zimbabwe can report.

By Rudairo Mapuranga

The newly proposed Board structure includes members from key government ministries, the Chamber of Mines, small-scale mining, the Environmental Management Agency, and other industry players. However, no explicit seat is reserved for youth or young professionals, despite their increasing role in shaping the sector’s future.

Young Miners Foundation (YMF) Chief Executive Officer Payne Farai Kupfuwa said that although the inclusion of small-scale miners on the Board is a progressive step, there is a critical need for a dedicated youth representative.

“As the Young Miners family, our humble submission is that, given that youths constitute over 65% of Zimbabwe’s demographic structure and dominate the small-scale mining sector with over 80% participation, it is imperative that their interests are represented on the Mining Affairs Board,” Kupfuwa said.

He added that youth representation would not only enrich the Board’s decision-making with fresh perspectives, but would also formalise the voice of a majority group that is often excluded from policymaking.

“While a representative for small-scale mining is a step in the right direction, a dedicated youth representative would provide a crucial perspective, ensuring that our concerns and ideas are integrated into the decision-making process. This would enable us to move from the periphery to the centre of policy formulation and implementation, fostering more inclusive and youth-friendly mining policies,” he said.

Also weighing in, Hazel Tsungai Karoro, Secretary General of the Association of Junior Mining Professionals of Zimbabwe (AJMPZ), said it is vital to recognise that youth in mining are not limited to artisanal activities, but are engaged in all stages of the mining value chain, including prospecting, exploration, extraction, processing, and high-tech value addition.

“Our association isn’t just focused on ASM. We’re involved in building the full mining value chain—from finding the minerals in the ground, to extracting them efficiently, processing them responsibly, and finally adding value through innovation. Some of our members are already working on future-focused projects like electric vehicle components and battery minerals,” Karoro said.

She stressed that the contribution of young geologists, engineers, metallurgists, surveyors, and processing experts is indispensable to Zimbabwe’s ambition to grow a US$40 billion mining sector that aligns with global energy and technology trends.

“Innovation in mining is being driven by young professionals. If the Mining Affairs Board is to shape the future of the sector, it must include the voices of those who are the future,” Karoro added.

She further emphasised the importance of gender inclusion in youth representation, calling for the appointment of representatives who understand the challenges faced by young women in the sector, and who can advocate for gender-responsive policy development.

“Representation must be intersectional. Young women are participating across mining professions and must not be excluded from the leadership table. The Board must reflect not only age diversity but also gender equity,” she said.

Both YMF and AJMPZ agree that youth inclusion on the Mining Affairs Board should not be symbolic or tokenistic, but instead grounded in practical engagement that allows young stakeholders to influence policy, regulation, and strategic direction.

With the mining sector poised to drive Zimbabwe’s industrialisation and energy transition, youth advocates believe that representation on the Mining Affairs Board would position young people as co-architects of the country’s mining future, rather than mere participants.

“Youths have the energy, the ideas, and the innovation. What we ask for now is the platform,” said Karoro.

As the Mines and Minerals Bill continues through public consultation and review, the call for a youth seat on the Mining Affairs Board presents lawmakers with an opportunity to bridge the generational gap in mining governance—and ensure that the future of Zimbabwe’s minerals is also the future of its young people.