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Zimbabwe Losing $100 Million Monthly from Illicit Trade in Critical Battery Metals

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A recent report by the Southern Africa Resource Watch (SARW) reveals that Zimbabwe is losing approximately US$100 million every month in critical battery metals crucial for energy transitions due to illicit trade which is a result of weak regulatory enforcement, Mining Zimbabwe reports.

By Ryan Chigoche

In addition to the losses in critical minerals, Zimbabwe is also losing at least US$100 million worth of gold every month, which is being smuggled out of the country through its porous borders. When combined with the losses from critical minerals, it is estimated that approximately US$200 million worth of minerals are being illicitly exported from Zimbabwe every month. This further undermines the country’s ability to fully leverage its natural resources for economic development.

This alarming figure underscores the country’s struggles to capitalize on its vast mineral wealth, particularly in essential resources like lithium, nickel, and rare earth elements, which are crucial for the global green energy transition.

Zimbabwe is a major player in the global minerals market, holding the second-largest platinum reserves in the world, along with high-grade chromium ores. The country also boasts the second-largest lithium reserves in Africa and the fifth-largest globally.

These critical minerals are essential for green technologies such as electric vehicles and renewable energy systems. However, Zimbabwe is failing to benefit from these resources due to revenue leakages driven by illicit financial flows (IFFs).

The SARW report estimates that Zimbabwe is losing around US$100 million per month in critical battery metals, primarily due to sophisticated syndicates exploiting gaps in the current systems.

“Critical minerals, such as lithium, nickel, and rare earth elements, are essential for green technologies, including electric vehicles and renewable energy systems. However, illicit financial flows (IFFs) often undermine financial benefits from these resources. Skills limitations to evaluate mining data and lack of verification and assaying processes have provided sophisticated mining companies with loopholes to engage in illicit activities…. Can the government detect illicit trade in minerals and machinery to distinguish minerals such as silica from lithium exports? Border controls are important, but small airplanes may still be a menace. Zimbabwe reportedly loses about $100 million monthly in leakages through sophisticated syndicates.” a part of the report read.

SARW also underscored how the ineffective implementation of taxation laws, combined with poor enforcement and a lack of legislative oversight on parliament’s resolutions concerning revenue leakages, has exacerbated the problem. This includes the inadequacy of weighbridges, which has made it easier for illicit trade to thrive without detection.

The report also highlights the lack of capacity within Zimbabwe’s regulatory bodies to effectively monitor and enforce compliance in the mining sector. With insufficient oversight, mining companies have been able to exploit weaknesses in the system to conduct illicit activities. The report further emphasizes the inadequacy of Zimbabwe’s weighbridge systems and border controls, pointing out that small aircraft are frequently used to smuggle minerals out of the country through unmonitored airstrips.

Illicit financial flows are not only draining Zimbabwe’s economy but are also hampering the country’s development. The report links these illicit activities to a loss of foreign exchange, stifled trade, and a reduction in domestic resources. The United Nations Conference on Trade and Development (UNCTAD) notes that such financial flows exacerbate poverty and inequality, making it even more difficult for Zimbabwe to leverage its mineral wealth for sustainable development.

In light of these challenges, the SARW report calls for stronger regulatory frameworks and improved technological solutions to track and control illicit activities. One key recommendation is enhancing air surveillance with new radar control systems to monitor aircraft entering and leaving Zimbabwe’s airspace. The report stresses that addressing illicit financial flows is critical for Zimbabwe to ensure that its critical mineral resources contribute to both domestic economic growth and global renewable energy efforts.

SARW, is an independent, non-profit organization that  monitors natural resource extraction in the region

Gold buying prices per gram in Zimbabwe 19 February 2025

Gold buying prices per gram in Zimbabwe today 19 February 2025, from the official gold buyer and exporter Fidelity Gold Refinery (FGR).

SG 90% and ABOVE US$88.93g
SG ABOVE 85% BUT BELOW 90% US$87.99g
SG ABOVE 80% BUT BELOW 85% US$87.05/g
SG ABOVE 75% BUT BELOW 80% US$86.10/g
SAMPLE BELOW 10g BUT ABOVE 5g US$84.69/g

Fire Assay CASH $89.40/g

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

Cash available. Fidelity Gold Refinery prices will be changing daily to match the world market.

YMF Partners with SAMYA to Boost Young Miners’ Growth and Opportunities

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The Young Miners Foundation (YMF) has partnered with the South African Mining Youth Association (SAMYA) to provide young miners in both Zimbabwe and South Africa with opportunities for growth and development in the mining sector.

By Ryan Chigoche

This strategic collaboration is designed to address the unique challenges faced by young miners in both countries, particularly focusing on access to capital and mining rights, and fostering entrepreneurship.

In Zimbabwe, young miners benefit from unique access to mining rights, positioning them to tap into the country’s rich mineral resources. However, many struggle to get started or expand operations due to a lack of capital.

In contrast, young miners in South Africa face significant challenges. While there is a strong interest in small-scale mining, it is often criminalized due to the lack of a clear legal framework.

In response to this, YMF CEO Payne Kupfuwa sees the partnership with SAMYA as a crucial opportunity for young miners from both countries to grow.

Speaking to Mining Zimbabwe, Kupfuwa highlighted the strategic advantage the partnership provides, as Zimbabwe’s young miners can gain access to capital, consumables, and mining expertise, all of which will drive efficiency and growth in mining operations.

“We look forward to evolving from small-scale mining to becoming entry-level junior miners as we grow. This partnership will initiate developmental programs that will help us establish larger mining houses in Zimbabwe. SAMYA will bring in the necessary resources to boost productivity in mining operations. Meanwhile, in Zimbabwe, we have access to mining rights as young people, making this partnership a perfect match that will help us build a more sustainable and developmental mining sector,” Kupfuwa said.

Commenting on the partnership, SAMYA Secretary Vumile Mbonani echoed the same sentiments, telling Mining Zimbabwe:

“The partnership between YMF and SAMYA will create valuable opportunities for young miners through exchange programs that foster business development, entrepreneurship, and collaboration… Together, we can amplify our collective voice and create more opportunities for youth in the mining sector across the continent,” he said.

By joining forces, the two organizations aim to create a platform for young miners to transition from small-scale mining operations to junior miners, fostering both economic growth and sustainable mining practices in the process.

In addition to providing mentorship and resources, the partnership seeks to facilitate cross-border cooperation, leveraging Zimbabwe’s access to mining rights and SAMYA’s support for young miners in South Africa to create a robust ecosystem for mining entrepreneurship across the continent.

Tharisa PLC Focuses on Value Engineering to Navigate Challenging PGM Pricing Environment

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Tharisa PLC, a Johannesburg Stock Exchange (JSE)-listed metals miner and the parent company of Karo Mining Holdings, stated in its Q1 2025 update that it will continue to evaluate and implement value engineering opportunities at its Karo Platinum project in Zimbabwe.

By Ryan Chigoche

This development comes amid a difficult period for the platinum group metals (PGM) sector, which is plagued by low global prices. The company’s focus on optimizing cost efficiencies is essential to maintaining the long-term viability of the Karo Platinum mine and its other operations.

Value engineering is a structured approach used in project management to improve the value of a product or process. It involves analyzing functions and identifying ways to reduce costs while preserving quality and performance. In mining, this may include finding more cost-effective alternatives for materials and methods, streamlining labour and operations, or improving logistical strategies.

For Tharisa, value engineering has become particularly important due to the prolonged period of low PGM prices. The company is scrutinizing every aspect of the Karo Platinum project, including equipment procurement and operational techniques, all aimed at ensuring the mine remains competitive and sustainable despite market fluctuations.

The global PGM market has faced significant pressure in recent months. One of the primary factors affecting the market is the decline in demand from key industries, particularly automotive manufacturing, which has long been one of the largest consumers of platinum. As vehicle production and demand for platinum-based components have slowed, the drop in PGM prices has been significant, forcing many mining companies to adjust their strategies.

In its first-quarter production update for the fiscal year 2025, Tharisa reported a marginal increase in PGM prices. The average price was US$1,381 per ounce, up slightly from US$1,370 per ounce in the final quarter of the fiscal year 2024. While this increase is a sign of modest improvement, it has done little to alleviate the broader challenges posed by subdued global demand. The persistently low prices have left companies like Tharisa searching for ways to reduce exposure to market volatility. Value engineering is now serving as a critical tool in that process.

Tharisa’s proactive response to this challenging environment involves reengineering its processes and projects to maximize efficiency.

For Tharisa, the Karo Platinum project represents a key part of its growth strategy. The mine, located on Zimbabwe’s Great Dyke, is expected to significantly increase the company’s platinum production and contribute to the country’s export revenues. Initially, Tharisa had hoped to begin production in mid-2024, but delays in securing funding and the weak PGM market have pushed back the timeline. Production is now expected in the second half of 2026.

Despite these delays, Tharisa remains committed to the Karo Platinum project. The company’s ongoing efforts in value engineering, along with its focus on securing the necessary financing, are critical to ensuring that the mine meets its potential once market conditions improve. The company believes that despite the volatility of the PGM market, demand for platinum will continue in the future, particularly as global supply deficits are forecasted to grow.

By maintaining a sharp focus on cost reductions through value engineering and optimizing development strategies, Tharisa aims to ensure that the Karo Platinum project delivers strong results even in a volatile pricing environment. As the company navigates these challenges, its long-term outlook remains positive, with the expectation that future price increases and supply shortages will ultimately drive the success of the Karo Platinum mine.

Mines Ministry & AMSZ team up to make mine surveying affordable & accessible

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In a groundbreaking move to enhance safety, operational efficiency, and regulatory compliance within Zimbabwe’s mining industry, the Ministry of Mines and Mining Development (MMMD) has partnered with the Association of Mine Surveyors of Zimbabwe (AMSZ) to make qualified mine surveying services accessible and affordable to all mining operators, from large-scale mining houses to small-scale and artisanal miners, Mining Zimbabwe can report.

By Rudairo Mapuranga

Announcing the program, Chief Government Mining Engineer Eng. Michael Munodawafa said the AMSZ has been engaged to provide technical advisory visits to mining operations of all sizes. They will offer expertise in areas such as operational optimization, regulatory compliance, and expert surveying services, particularly for small to medium entities.

“This program is designed to improve safety, operational efficiency, formalization, and regulatory compliance across the sector. By making qualified mine surveying services readily available, we hope to support miners of all sizes in operating more safely and productively,” Eng. Munodawafa said in a statement.

Under this arrangement, AMSZ will provide technical advisory visits and expert surveying services to all mining operations, with a particular focus on small- and medium-scale entities. To ensure seamless access, AMSZ will compile and maintain a register of qualified mine surveyors by province, updated monthly. This register will be made available to Provincial Mining Directors and shared with mining operators in their respective regions.

Miners will be able to consult the AMSZ register to engage qualified surveyors, with services offered at nominal, pre-negotiated rates. Miners are also encouraged to explore cooperative arrangements, pooling resources to hire a single surveyor for multiple operations, thereby making the service even more affordable.

AMSZ President Stewart Gumbi urged surveyors to regularize their membership with AMSZ.

“This milestone achievement is a significant step toward improving safety and compliance in the mining sector. We encourage all surveyors to ensure their details are registered and up to date to be included in the monthly registers and be part of this transformative initiative,” he said.

This partnership between MMMD and AMSZ is expected to bring numerous benefits to the mining sector:

  • Enhanced safety and efficiency across mining operations.
  • Greater compliance with mining regulations.
  • Affordable access to surveying expertise, particularly for small- and medium-scale miners.
  • Employment opportunities for independent and unemployed mine surveyors.

The initiative marks a significant shift toward professionalizing mine surveying services and fostering safer mining practices across Zimbabwe. The Ministry is confident that this program will benefit the entire mining community, helping miners operate more effectively while contributing to the nation’s economic growth.

Zimplats Delays SO₂ Abatement Plant Project to 2028

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Zimbabwe’s largest platinum producer and a subsidiary of Impala Platinum Holdings (Implats), Zimplats, has announced a delay in the completion of its much-anticipated Sulphur Dioxide (SO₂) abatement plant. The company’s operations account for 79% of Implats’ total direct SO₂ emissions, Mining Zimbabwe can report.

By Rudairo Mapuranga

Initially scheduled for completion in June 2026, the project has now been postponed to June 2028 due to capital constraints, according to the Implats 2024 Environmental, Social, and Governance (ESG) report.

The R4 billion smelter upgrade project, which began in 2022, includes the installation of best-in-class SO₂ abatement equipment. This equipment is critical for reducing harmful SO₂ emissions at Zimplats’ operations. Once completed, the project will bring the plant’s SO₂ emissions well below South Africa’s legislated limit of 1,200 mg/Nm³ for point-source emissions, ensuring Zimplats operates within strict environmental standards.

The delay comes as Zimplats continues to contribute significantly to the Group’s direct SO₂ emissions. In 2024, Zimplats’ operations were responsible for 79% of Implats’ total direct SO₂ emissions, up from 78% in 2023. This makes Zimplats the single largest contributor to SO₂ emissions within the Implats Group, highlighting the urgency of implementing the abatement project.

Implats’ other major operations, including the Rustenburg smelter and refineries, contributed the remaining 21% of emissions in 2024. The Rustenburg smelter, which operates without SO₂ abatement equipment, along with the coal-fired boilers at the refineries, collectively emitted 31,057 tonnes of SO₂ in 2023.

Once completed in 2028, the SO₂ abatement project will drastically reduce emissions from Zimplats’ smelter, bringing the operation into full compliance with global environmental standards. This development is crucial not only for improving air quality but also for addressing long-standing environmental concerns associated with sulphur dioxide emissions from smelting operations.

Despite capital constraints delaying the project, Zimplats remains committed to completing the upgrade as part of its broader efforts to align with international environmental governance frameworks. The abatement plant will mark a significant step forward in the Group’s sustainability goals, improving environmental outcomes for both local communities and the broader region.

As the largest platinum producer in Zimbabwe and a key player in the global PGM market, Zimplats’ efforts to reduce its environmental footprint will play a critical role in ensuring the long-term sustainability of its operations while protecting public health and the environment.

Gold buying prices per gram in Zimbabwe, 18 February 2025

Gold buying prices per gram in Zimbabwe today 18 February 2025, from the official gold buyer and exporter Fidelity Gold Refinery (FGR).

SG 90% and ABOVE US$88.12g
SG ABOVE 85% BUT BELOW 90% US$87.19g
SG ABOVE 80% BUT BELOW 85% US$86.28/g
SG ABOVE 75% BUT BELOW 80% US$85.32/g
SAMPLE BELOW 10g BUT ABOVE 5g US$83.92/g

Fire Assay CASH $88.59/g

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

Cash available. Fidelity Gold Refinery prices will be changing daily to match the world market.

EMA Approval Greenlights Muzarabani Gas Project Eureka Gold Mine Set for Gas-to-Power Production

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In a major boost for Zimbabwe’s energy sector, the Environmental Management Agency (EMA) has approved the Environmental and Social Impact Assessment (ESIA) for Invictus Energy’s pilot production activities at the Cabora Bassa Project (Muzarabani), enabling the commencement of pilot production activities, including the much-anticipated Eureka Gold Mine Gas-to-Power Project, Mining Zimbabwe can report.

By Rudairo Mapuranga

According to Invictus Energy Managing Director Scott Macmillan, the approval of the ESIA marks a critical milestone that paves the way for the commercialization of gas resources in the region, with a focus on the Mukuyu gas field and the broader Special Grant 4571 (SG 4571) and Exclusive Prospecting Orders (EPOs) 1848 and 1849.

He said the ESIA approval enables the commencement of pilot production activities, including the much-anticipated Eureka Gold Mine Gas-to-Power Project. This project, developed in collaboration with Dallaglio Investments and Himoinsa SA, aims to leverage Mukuyu’s gas resources to provide reliable and cost-effective power for the Eureka Gold Mine. The initial feasibility study for this project shows promising results, with gas prices exceeding US$10/GJ for gas-fired power generation based on current grid tariff rates.

“The ESIA approval is a critical milestone for Invictus and paves the way for the future development of the Mukuyu gas field and our broader exploration areas. We will now move to finalize pilot production planning, secure the necessary permits, and advance discussions with potential offtake partners,” Macmillan said.

The ESIA builds on the comprehensive 2019 environmental study, one of the largest assessments ever undertaken in Zimbabwe. It included thorough surveys and baseline measurements across disciplines such as hydrology, ecology, and archaeology, as well as extensive community consultations with local leaders and government ministries. The expansion of this assessment further demonstrates Invictus Energy’s commitment to responsible resource development, ensuring stringent environmental and social governance (ESG) compliance.

The ESIA approval is a key step toward the pathway to pilot production, which also includes the development of gas extraction, liquefaction, and transport infrastructure from the Mukuyu field. Invictus Energy and Himoinsa SA have been actively engaging with technology providers to identify the best solutions for gas processing, ensuring maximum efficiency and commercial viability as they transition from pilot production to large-scale development.

The approval is expected to unlock further gas potential in Zimbabwe, reinforcing the Mukuyu gas field’s role as a strategic energy source. This development comes at a crucial time when Zimbabwe is pushing for greater energy security and economic stability. The Eureka Gold Mine Gas-to-Power Project could serve as a catalyst for future projects and partnerships across the region.

As Zimbabwe continues to explore its gas potential, this ESIA approval represents a vital step toward creating long-term value for shareholders, stakeholders, and the broader region, reaffirming Invictus Energy’s commitment to sustainable energy solutions.

Mimosa Achieves Over 3% Production Growth Amid Slight Decline in Grade

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Zimbabwe’s second-largest platinum group metal (PGM) producer, Mimosa Mining Company, has once again demonstrated its operational strength with a 3.1% increase in tonnes milled and a 3% rise in 6E concentrate production, despite a slight 0.6% decrease in grade, Mining Zimbabwe can report.

By Rudairo Mapuranga

The company, jointly owned by Impala Platinum Holdings (Implats) and Sibanye Stillwater, has achieved this growth due to its positioning on the industry cost curve, emphasizing its critical role within the group’s portfolio of PGM operations, as highlighted in Implats’ recent Production Update and Trading Statement for the six months ended December 31, 2024.

According to the statement, Mimosa milled 1,467,000 tonnes in the first half of 2025 (H1 2025), up from 1,423,000 tonnes in H1 2024. This increase reflects the mine’s ability to optimize operations and maintain a steady output trajectory. However, the 6E grade per tonne, which measures the concentration of metals within the ore, dipped from 3.63 g/t in H1 2024 to 3.61 g/t in H1 2025. While the grade decline is marginal, it plays a significant role in overall metal recovery and production efficiency.

Despite this slight drop in grade, 6E in concentrate—which represents the output of platinum, palladium, rhodium, gold, and other valuable metals—increased from 125,000 ounces in H1 2024 to 129,000 ounces in H1 2025. This 3% growth in concentrate output highlights Mimosa’s ability to counterbalance fluctuations in ore quality through improved processing efficiency and production management.

In a recent analysis of Mimosa’s performance, Mining Zimbabwe emphasized the company’s strong competitive positioning on the global cost curve. Mimosa remains an industry leader in cost efficiency, with an all-in cost (cash cost plus capital expenditure) of approximately R20,000 per ounce for 4E metals. This places Mimosa within the mid-tier range of global PGM producers, reflecting its ability to maintain cost competitiveness even as it navigates challenges in the mining environment.

The mine also continues to benefit from a favorable basket price for its 6E production, with spot prices exceeding R30,000 per ounce. This ensures Mimosa’s profitability despite market volatility and operational cost pressures. The mine’s consistent ability to generate strong margins is a testament to its effective cost management strategies, driven by the partnership between Sibanye Stillwater and Implats.

Mimosa’s annual production hovers around 250,000 ounces, making it a significant contributor to both Sibanye Stillwater’s and Implats’ overall PGM output. The mine’s ability to balance production volume with cost control ensures that it remains a pivotal asset within both companies’ portfolios.

Looking ahead, Mimosa’s growth prospects remain promising, with planned investments aimed at further optimizing its operations and maintaining cost efficiency. As highlighted in the Implats statement, Mimosa is positioned to capitalize on its production growth and cost efficiency, ensuring it continues to deliver robust returns for its stakeholders.

The synergy between Sibanye Stillwater and Implats provides Mimosa with the tools and expertise necessary to sustain its position as a competitive force in the global PGM industry. By leveraging operational best practices, Mimosa has cemented its role as a leading player, delivering strong results and positioning itself for continued success in the future.

As demonstrated by its solid performance in H1 2025, Mimosa’s ability to consistently improve its output while managing operational costs reaffirms its status as a key contributor to Zimbabwe’s mining industry and the broader PGM sector.

AEGT Zimbabwe Calls for the Adoption of Sustainable Mining Initiatives

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African Extractivism & the Green Transition (AEGT) Zimbabwe is calling for the adoption of sustainable mining practices in Zimbabwe, emphasizing the need for a balanced approach to mineral extraction that benefits both current and future generations.

By Ryan Chigoche

As Zimbabwe and other African nations continue to rely heavily on their mineral resources for economic growth, the importance of sustainability has become a pressing concern for both environmental preservation and socio-economic development.

Sustainable mining practices are not just about minimizing environmental harm but also about ensuring the equitable distribution of the wealth generated from extraction.

In an interview with Mining Zimbabwe, African Extractivism & the Green Transition (AEGT) Zimbabwe Country Manager Lyman Mlambo said these practices must include both intra-generational and inter-generational equity.

“Sustainability also requires intra-generational equity and inter-generational equity in the distribution of monetary benefits from extractive activities. Intra-generational equity demands the use of some of the extractive proceeds to alleviate poverty in the current generation by addressing regional (geographical) development disparities. This has implications for the national budgetary process,” he said.

Mlambo’s call highlights that mining proceeds should be distributed equitably across Zimbabwe’s various regions, ensuring that wealth generated from the country’s mineral resources helps alleviate poverty and promote broader socio-economic development.

Moreover, Mlambo stressed the importance of inter-generational equity, which ensures that resources are preserved for future generations. He emphasized that part of the extractive proceeds should be reinvested in assets that can guarantee long-term income, particularly in non-exhaustible sectors.

“Inter-generational equity requires that some of the extractive proceeds be reinvested into alternative income-yielding assets (especially in non-exhaustible resource sectors), which can guarantee income in the future, or be invested in a fund that yields financial returns over time, or be used to establish permanent infrastructure that will benefit future generations,” he said.

A key part of this future-focused vision is the establishment of Sovereign Wealth Funds (SWFs). Mlambo proposed that a portion of the proceeds from mining should be set aside annually and invested in long-term projects to ensure financial stability beyond the extraction of finite mineral resources.

“This money, which should be reinvested—called Depletion or User Cost—should be computed every year and set aside,” he added.

For Zimbabwe, this approach could provide a much-needed safety net, ensuring that the wealth generated from mining is not spent recklessly but is instead reinvested in a way that supports the country’s long-term economic and social goals.

In addition to economic strategies, Mlambo emphasized the importance of adopting comprehensive sustainability measures to mitigate the environmental and social impacts of mining.

These include practices such as reforestation, land rehabilitation, and the creation of Mine Closure Plans (MCP), as well as ensuring fair compensation for displaced communities through Social Impact Assessments (SIA).

“All the sustainability measures (EIA, MCP, SIA, budgetary processes, and setting aside some current proceeds for the future or SWF) need to be adopted to ensure that our extraction processes as a whole are sustainable,” he said.

However, Mlambo also called for innovation and technological investment as key elements in the future of sustainable mining.

Various experts believe that investing in automation, AI, miniaturized end-user products, new recycling technologies, and the green transition or revolution is key to remaining competitive in the future as a mining industry and as a country.

The call from African Extractivism & the Green Transition (AEGT) to adopt sustainable mining practices is a crucial step in ensuring that Zimbabwe’s mining industry contributes to long-term prosperity for both its current population and future generations.