Mining ZimbabweLatest Mining News, Policy and Industry Updates

In Zimbabwe’s mining sector, there is a crucial opportunity for companies to reduce their reliance on imported goods by strengthening the local supply chain. While Zimbabwe excels in extracting valuable resources such as gold, platinum, chrome, diamonds, and lithium, mining operations still depend heavily on imported specialized equipment, chemicals, and other components required for extraction and processing.

By Ryan Chigoche

By investing in local enterprises and developing the domestic value chain, mining companies can cut costs, reduce imports, and significantly boost the national economy. PGM miners, such as Zimplats and Mimosa, have already set a strong example, demonstrating that supporting local suppliers doesn’t just benefit the mining companies themselves; it also drives broader economic growth.

However, the Local Enterprise Development (LED) programs these companies have implemented are not as pronounced in other key sectors, such as lithium and gold, where similar investments in local supply chains could have a profound impact on Zimbabwe’s economy.

The PGM Sector Leading the Way

The PGM sector, particularly through companies like Zimplats and Mimosa, has shown how mining companies can significantly reduce import dependency by investing millions into the local economy.

Zimplats, for instance, has invested nearly US$460 million into local businesses through its LED program since its launch. This program supports a network of 23 local SMEs, which supply vital goods and services ranging from engineering to catering, medical supplies, and protective clothing.

This initiative has led to the creation of over 2,600 jobs, benefiting local communities and reducing the need for imports.

In FY2024, Zimplats spent US$357 million locally, accounting for 51% of its total procurement spending. Even with a 19% reduction in LED spending due to global price volatility, the company remains committed to fostering local suppliers, ensuring that they meet international standards, and can contribute to the mining sector’s growing demand for quality services and products. Zimplats’ commitment to its LED program demonstrates the significant potential for the mining sector to not only reduce imports but also contribute meaningfully to the growth of Zimbabwe’s domestic industries.

Mimosa Mine has followed in Zimplats’ footsteps with its own LED Program and Supplier Support Program, which provide crucial financial support to local suppliers, helping them improve operations, create jobs, and maintain a resilient supply chain.

Mimosa’s LED program offers funding of up to US$2 million per participant, backed by a US$5 million internal revolving fund and US$15 million in bank facilities, demonstrating a similar commitment to fostering local enterprise growth. To date, Mimosa has advanced US$6.3 million to local suppliers, further solidifying the impact of these programs.

A Call to Action for Other Sectors

While the PGM sector has made significant strides, the same cannot be said for other sectors such as lithium and gold, where the development of local supply chains and LED programs remains underdeveloped.

The lithium sector, which has seen a surge in global demand, is yet to replicate the PGM sector’s commitment to investing in local suppliers and businesses. This sector’s potential for growth within Zimbabwe could be far more substantial if similar LED programs were implemented to develop a self-sustaining, resilient local supply chain.

The gold sector, too, remains relatively untapped in terms of structured support for local suppliers. If mining companies within this sector invested even a fraction of what Zimplats and Mimosa have into Local Enterprise Development, the impact on the Zimbabwean economy could be transformative.

Imagine if the entire mining sector — PGMs, lithium, gold, and beyond — emulated the efforts of Zimplats and Mimosa. The results would be truly revolutionary. Local suppliers could create thousands of additional jobs, bolster the manufacturing sector, reduce Zimbabwe’s reliance on imported goods, and increase the country’s foreign currency reserves.

The cumulative effect of such initiatives would lead to a stronger, more diversified economy and could catalyze the development of other industries beyond mining, such as agriculture, construction, and manufacturing.

The Economic Potential

By adopting these practices across the entire mining industry, Zimbabwe could significantly increase its industrial capacity, contributing to economic diversification, the growth of SMEs, and a more self-sufficient economy. The benefits would be twofold: mining companies would reduce their import costs, while Zimbabwe’s domestic industries would thrive.

The examples set by Zimplats and Mimosa show that mining companies in Zimbabwe have the potential to drive significant change by investing in local enterprises. If the rest of the mining sector, including lithium and gold, follows this path, the country’s economy could experience transformative growth, helping Zimbabwe move towards sustainable development while addressing the challenge of import dependency.

In a near-tragic incident last week, two illegal miners narrowly escaped death at Mazowe’s Lonhro site, a location notorious for unregulated mining activities.

The miners were working underground at the infamous Jumbo Mine when a collapse nearly buried them, caused by dangerous mining practices happening directly above them, Mining Zimbabwe can report.

By Rudairo Mapuranga

The individual allegedly responsible for the collapse, known as “Skiri” (not his real name), is reportedly engaged in illegal mining operations at Mazowe Gold Fields Lonhro site. Sources claim that “Skiri” is conducting unregulated mining while collecting undeclared ores and gold, with allegations that he may have close ties with some of the mine’s management. This has allowed him to operate unchecked, despite the dangerous conditions his activities create for others working in the area.

The incident occurred when “Skiri” began opening an open pit above the site where the two miners were working underground, resulting in the collapse. Fortunately, the miners managed to escape with their lives, but the near-miss has intensified concerns over the safety of the Mazowe mine and its growing reputation for deadly accidents.

Mazowe’s Lonhro site has been marred by a string of fatal incidents. Just over the Christmas period, a miner tragically lost his life on Christmas Eve. In early January, three more miners reportedly died following another accident at the same site. These deaths have raised alarms, as many believe that the site, under its current state of operation, is responsible for a significant number of fatalities every year.

The hazardous conditions at Mazowe are largely driven by illegal mining activities, which persist due to a lack of regulation and enforcement. The allure of gold and the economic hardships facing many Zimbabweans push miners into dangerous and unregulated environments, where the risks of fatal accidents are high. These dangers are further compounded by the activities of operators like “Skiri,” who continue to mine recklessly with little regard for safety protocols.

With fatalities mounting, authorities are being called upon to take urgent action to address the ongoing illegal mining operations at Mazowe. The continued loss of life has become a serious concern, with many urging tighter enforcement of mining regulations, improved safety standards, and greater accountability from mine management.

As Zimbabwe pushes to formalize its mining sector, the situation at Mazowe highlights the urgent need for stronger oversight and regulation to prevent further tragedies. Without swift intervention, more lives will be at risk in Mazowe, making it one of the most dangerous mining sites in the country.

The near-fatal accident last week is a stark reminder of the perilous conditions that persist at Mazowe, as miners continue to work in unsafe and unregulated environments in their pursuit of gold. If action is not taken soon, Mazowe risks becoming the site of even more devastating accidents in the near future.

The Zimbabwe Environmental Law Association (ZELA), led by the Danish Institute for Human Rights (DIHR), has launched an initiative that seeks to promote Responsible Business Conduct (RBC) in the mining of transition minerals across Africa, Mining Zimbabwe can report.

By Rudairo Mapuranga

This project, titled “Supporting a Just Energy Transition Through Responsible Business Conduct in Africa (2024-2027),” is backed by the Swedish International Development Cooperation Agency (SIDA) and aims to address the social and environmental challenges associated with the extraction of critical minerals needed for the global energy transition.

The project brings together key stakeholders, including African Resources Watch (AFREWATCH) from the Democratic Republic of Congo, the Centre for Environment Justice (CEJ) in Zambia, and HakiRasilimali from Tanzania. Its overarching goal is to support the promotion and protection of human rights in the context of the fast-growing demand for minerals such as lithium, cobalt, and nickel, which are essential for technologies like electric vehicles and renewable energy systems.

The extraction of these minerals presents a significant economic opportunity for resource-rich countries like Zimbabwe. However, it also raises concerns about the long-term environmental and social impacts on local communities. The initiative will work closely with the Zimbabwean government, mining companies, and civil society groups to ensure that these resources are mined responsibly, with respect for human rights and sustainable development.

ZELA, as part of the consortium, emphasized that the transition to green energy must be inclusive and just.

“While the global demand for transition minerals is growing, we must ensure that mining operations do not come at the expense of local communities or the environment. This project will help us develop strategies to address the risks and impacts of mining while promoting responsible business conduct in the sector,” Obert Bore from ZELA said at the launch.

The project will focus on three main objectives:

1. Ensuring that state and business actors take steps to address the social and environmental impacts of mining.
2. Promoting dialogue among national and regional stakeholders to encourage responsible mining practices.
3. Encouraging investors and buyers in the global mineral supply chain to adopt RBC principles.

Hon. Matangira, Chairman of the Parliamentary Portfolio Committee on Mines and Mining Development, also highlighted the importance of value addition in the mining sector.

“We must focus on how to add value to our minerals so that we can maximize their benefits,” Matangira said. “This includes ensuring that local communities benefit from infrastructure improvements and that mining operations are conducted in a way that conserves resources like water for both human consumption and agricultural use.”

The launch of this project comes as Zimbabwe positions itself as a key player in the supply of critical transition minerals. With substantial reserves of lithium, platinum, and other minerals essential to clean energy technologies, Zimbabwe is attracting increased interest from international investors. However, the country faces challenges related to the social and environmental impacts of mining, which the project seeks to address.

A representative from the Buhera community, one of the areas affected by mining activities, stressed the importance of community involvement. “We bring indigenous knowledge and must be consulted on matters that impact our livelihoods,” the representative said. “Mining companies need to engage with local communities, support local businesses, and ensure that we benefit from social cooperation programs like scholarships and infrastructure development.”

The project will also work to ensure greater transparency in the mining sector. Communities are calling for clearer communication regarding how much mining companies extract and how they are contributing to local development through corporate social responsibility initiatives. This aligns with the project’s long-term vision of a just energy transition in which human rights are respected and local communities are not left behind.

By focusing on responsible mining practices, the project aims to contribute to a more sustainable and equitable energy transition while ensuring that Zimbabwe’s rich mineral resources benefit both the country and the global clean energy movement.