Mining ZimbabweLatest Mining News, Policy and Industry Updates

After years of falling production, persistent strikes, and mounting losses, RioZim has confirmed that it is selling its mines to a new investor, Mining Zimbabwe reports.

By Ryan Chigoche

Once a major gold producer in Zimbabwe, the company has struggled with underinvestment, frequent equipment failures, and an unfavorable foreign currency regime that has squeezed operations.

These challenges have led to a steady decline in output, making it increasingly difficult for the company to sustain its operations.

In a statement on Thursday, RioZim announced that it is in the final stages of negotiations with a potential lender to address its financial and operational difficulties.

“The conclusion of the negotiations is imminent, which will resolve the company’s challenges,” the company said.

Alongside this, major shareholders have been in talks with several potential buyers and are now finalizing a deal with an investor set to acquire a majority stake in the company.

The transaction is still subject to due diligence, regulatory approvals, and the signing of sale and purchase agreements. Once completed, the new investor will be required to make a mandatory offer to minority shareholders.

RioZim’s production figures reflect the extent of its struggles. Gold output dropped by 27% in the first half of 2024, continuing a downward trend that has plagued the company for years.

Its flagship Renco Mine has been hampered by low ore grades, frequent breakdowns, and labor unrest. Meanwhile, in Kadoma, Cam & Motor Mine and Empress Refinery have remained in extended care and maintenance, despite a US$17 million investment in a BIOX plant that was intended to boost production by 50%. Instead, Cam & Motor’s gold output fell by 42% to just 130kg in the first half of last year.

Beyond gold, RioZim has interests in Murowa Diamonds and a 50% stake in the Sengwa coal project in Gokwe. However, these assets have not been enough to turn the company’s fortunes around.

With RioZim now on the verge of a change in ownership, the focus will shift to the new investor’s plans.

The key question is whether they will bring the capital and expertise needed to revive the company’s operations and restore its position as a major player in Zimbabwe’s gold mining industry.

Zimbabwe’s platinum production declined by 9% year-on-year to 121,000 ounces (koz), primarily due to reduced output at Zimplats, the country’s leading platinum group metals (PGM) producer, according to a recent report from the World Platinum Investment Council (WPIC).

By Ryan Chigoche

The decline in Zimplats’ production was caused by delays in commissioning its expanded smelter, leading to a temporary buildup of 14 koz in semi-finished inventory during the second half of 2024. Intermittent power supply disruptions further impacted operations, contributing to the overall reduction in output.

Despite the drop in Zimplats’ production, Zimbabwe’s total platinum output increased by 1% year-on-year, reaching 512 koz, an all-time high. This growth was primarily driven by a boost in production from Unki Mine, which offset the decline at Zimplats.

Mimosa Mine also saw a 3% increase in production during the period, processing 2.8 million tonnes of ore annually and producing 120,000 ounces of platinum (or 240,000 ounces of 4E). These positive performances helped mitigate the overall decline in Zimbabwe’s platinum production.

Globally, platinum supply grew by 3% year-on-year in 2024, reaching 5,766 koz, driven by stronger-than-expected output from South Africa and Russia. South Africa’s production increased by 4%, reaching 4,132 koz, aided by inventory drawdowns and a reduction in load-shedding. Russia’s output remained steady at 677 koz after furnace repairs were completed ahead of schedule.

However, global platinum supply is expected to contract by 5% in 2025, with production projected to fall to 5,506 koz. This decline is due to reduced palladium-related output in North America and further declines in South African production. Additionally, lower expectations for work-in-progress inventory releases are likely to tighten supply.

• Parks Orders Mines Ministry to Reject, Never Entertain Mining Applications targeting mining in the Hwange National Park

The Zimbabwe Parks and Wildlife Management Authority (ZimParks) has called on the Ministry of Mines and Mining Development to reject any application for mining activities in Hwange National Park, specifically targeting the Sinamatella Black Rhino Intensive Protection Zone.

ZimParks has also urged the Ministry to never entertain similar applications in the future to safeguard this critical wildlife habitat, Mining Zimbabwe can report.

By Rudairo Mapuranga

The Sinamatella region, a crucial sanctuary for the endangered black rhino, holds a growing population of the species, which is listed under the *Convention on International Trade in Endangered Species of Wild Flora and Fauna (CITES) Appendix I.* Mining activities in the area, according to ZimParks, would exacerbate the risk of extinction for the black rhino and hinder prospects of population recovery.

“The proposed mining project will actually increase the risk of species extinction, and prospects of population recovery will be negatively affected,” a ZimParks statement read.

Beyond its potential impact on black rhinos, ZimParks expressed deep concerns about the degradation of land in the region. The Sinamatella zone is part of Hwange National Park, home to Africa’s second-largest elephant population and other key wildlife species. The introduction of mining would undermine ecological conditions crucial for wildlife survival and reproduction.

In line with Zimbabwe’s commitment to restoring at least 30% of degraded terrestrial and inland water ecosystems by 2030, ZimParks stressed that approving mining activities in this sensitive area would derail progress in wildlife conservation. The move would also tarnish Zimbabwe’s global reputation as a leader in sustainable conservation.

The potential damage extends beyond conservation. Hwange National Park is one of Zimbabwe’s prime tourist destinations, and ZimParks warned that mining activities would severely affect tourism, a major revenue generator for the country. Noise, air, and land pollution created by mining would not only disrupt wildlife movement but also diminish the quality of visitor experiences.

“Our operations significantly rely on the revenue generated from tourism through leased concessions; thus, any mining operations introduced could adversely affect our ability to deliver quality experiences for tourists,” ZimParks stated.

Furthermore, ZimParks highlighted the broader risks of mining in the area, including increased poaching incidents and interference with groundwater flow. This disruption could threaten water sources essential for wildlife, worsening existing water shortages and leading to higher mortality rates among species. In turn, this could intensify human-wildlife conflicts in surrounding communities.

Sinamatella is also home to the historic Bumbusi Ruins, which hold significant cultural and historical value for the local Nambian-speaking communities. Annual cultural rituals and rain-making ceremonies are performed by traditional leaders, and mining activities could endanger this important cultural heritage.

ZimParks spokesperson Tinashe Farawo emphasized that the organization will continue to advocate for the protection of critical wildlife habitats and uphold its commitment to conservation for the benefit of future generations.

As Zimbabwe grapples with balancing economic development and environmental conservation, the outcome of this appeal will be a telling sign of the nation’s priorities.

Five individuals, including a heavily pregnant woman and three relatives, tragically lost their lives on Sunday after their Honda Fit plunged into an abandoned chrome mining pit in Shurugwi, highlighting the dangers posed by unrehabilitated mining pits—a longstanding issue that has claimed numerous lives in mining areas across the country, Mining Zimbabwe can report.

By Rudairo Mapuranga

The incident underscores the critical need for stronger mining rehabilitation measures in Zimbabwe.

According to Shurugwi District Development Coordinator Romeo Shangwa, the fifth body was retrieved after water was pumped out of the 30-meter-deep pit overnight, following efforts by the police’s sub-aqua unit. Fortunately, one passenger managed to escape by swimming out of the flooded pit, but the other five occupants did not survive.

While this incident is devastating, it is not an isolated case. Unsecured and unrehabilitated mining pits continue to pose a significant threat to communities near mining areas. Disused pits, often left abandoned after mining activities cease, turn into death traps for both humans and wildlife, as evidenced by this latest tragedy.

The Chamber of Mines of Zimbabwe has long called for the introduction of a comprehensive Mining Rehabilitation Fund, which would mandate mining companies to set aside resources for rehabilitating mined land. Rehabilitation of mining sites involves filling in pits, managing waste dumps, and restoring the land to its natural state or to a safe and usable condition.

This tragedy, among others, has reignited the debate on the urgent need for this fund to be included in the Mines and Minerals Amendment Bill, a legislative step that would hold mining companies accountable for restoring the land once extraction activities are complete.

The Chamber of Mines has emphasized the importance of addressing this issue in the bill, as rehabilitation is crucial not only for preventing such accidents but also for reducing environmental damage. Without a mandatory rehabilitation fund, mining companies may abandon sites without any obligation to mitigate the risks associated with disused pits.

The failure to rehabilitate mining sites has far-reaching consequences, including environmental degradation, soil erosion, and the contamination of water sources. However, the most immediate and devastating impact is the risk posed to human life. Abandoned mining pits, often filled with water, become hazards that can easily trap vehicles, animals, or unsuspecting individuals.

In areas like Shurugwi, where mining is prevalent, local communities face constant danger from unmarked and unprotected mining pits. These areas become even more dangerous during the rainy season when water fills the pits, making them appear less hazardous than they actually are.

The incident in Shurugwi is a stark reminder of the urgent need for mining companies to take responsibility for the environmental and social impacts of their operations. The absence of a regulatory framework enforcing rehabilitation leaves communities exposed to unnecessary risks, while the environment continues to suffer long-term damage.

If implemented, the Mining Rehabilitation Fund could provide a systematic approach to ensuring that mining companies restore mined areas, reducing the risks associated with abandoned pits. By making rehabilitation mandatory and holding companies financially accountable, Zimbabwe can prevent future tragedies and ensure that mining activities are conducted in a more responsible and sustainable manner.

Inspector Emmanuel Mahoko, Midlands Police Spokesperson, stated that the names of the five deceased individuals are yet to be released. However, their deaths serve as a powerful call to action for all stakeholders in the mining sector. It is time for the government, mining companies, and communities to work together to prioritize safety and environmental stewardship, ensuring that no more lives are lost due to neglected mining practices.

The Mines and Minerals Amendment Bill, with the inclusion of provisions for a Mining Rehabilitation Fund, is a critical step in this direction. By taking action now, Zimbabwe can create a safer environment for its people while ensuring that the legacy of mining is one of sustainability rather than tragedy.

Watch: As the vehicle is retreaved from below the disused shaft https://www.facebook.com/share/r/1BP9fzsrq6/