Mining ZimbabweLatest Mining News, Policy and Industry Updates

The Reserve Bank of Zimbabwe (RBZ) has collected US$402 million from exporters between January and May 2025 through the compulsory foreign currency surrender mechanism.

By Ryan Chigoche

This inflow, largely driven by the mining sector, is part of the central bank’s broader strategy to stabilise the local economy and strengthen the ZiG, Zimbabwe’s gold-backed currency.

Under the current policy framework, exporters are required to surrender 30% of their foreign currency earnings to the RBZ in exchange for the ZiG.

This initiative is aimed at enhancing liquidity within the interbank foreign exchange market and ensuring that the central bank retains greater control over the management and distribution of hard currency.

In February, the RBZ implemented a key policy change by reducing the foreign currency retention threshold from 75% to 70%.

This move formed part of a broader package of monetary reforms introduced to consolidate the strength of the ZiG and bring more foreign currency under the central bank’s direct supervision.

By increasing the surrender portion, the RBZ aims to better manage currency flows, support the official forex market, and maintain exchange rate stability.

The mining sector plays a pivotal role in this process. As the country’s leading source of foreign currency, mining contributes about 70% of Zimbabwe’s total export earnings.

With mineral exports exceeding US$5 billion annually, the 30% surrender requirement means that miners alone are expected to contribute over US$1.5 billion in forex inflows to the central bank each year.

This makes the sector indispensable to the RBZ’s strategy of reserve accumulation and currency stabilisation.

Governor John Mushayavanhu has emphasised that the surrendered funds are being strategically allocated to meet pressing national needs.

A substantial portion is being used to fulfil government obligations that require foreign payments.

Another significant share is being channelled into the interbank market to satisfy demand from companies and individuals who require forex for imports and other international transactions. A smaller, yet vital, portion is being directed toward building up the nation’s foreign currency reserves.

As of May 2025, Zimbabwe’s total reserve holdings had risen to nearly US$700 million, a level that marks a significant improvement in the country’s financial buffers.

Of this, US$352 million is held in gold, providing a tangible and widely accepted store of value. An additional US$258 million is held in cash and nostro balances—foreign currency accounts maintained by the RBZ in overseas financial institutions.

The remaining reserves are composed of other diverse assets. This reserve composition is critical in underpinning the credibility of the ZiG and boosting investor and public confidence in the currency’s long-term viability.

At the Chamber of Mines conference earlier this year, Governor John Mushayavanhu underscored the importance of compliance within the mining sector, stating:

“Since miners are the major contributors to foreign exchange in this country, they should comply… where is this country going to get forex?”

His remarks reflect the RBZ’s reliance on mining as the foundation of Zimbabwe’s forex ecosystem and its efforts to anchor monetary policy on solid export fundamentals.

Through a combination of policy tightening, increased centralisation of forex inflows, and strategic reserve management, the RBZ is working to entrench the stability of the ZiG and create a more predictable and sustainable economic environment—with the mining sector at the heart of this transformation.

In a powerful declaration of Zimbabwe’s economic direction, President Emmerson Dambudzo Mnangagwa has reaffirmed his government’s commitment to anchoring the national currency in physical gold reserves—while simultaneously acknowledging the crucial role of artisanal and small-scale miners (ASM) in achieving this vision, Mining Zimbabwe can report.

By Rudairo Mapuranga

Addressing the nation through a news interview, the President emphasized that a stable and respected national currency must be backed by tangible wealth, particularly gold.

“A country to be solid, even a currency to be respected, it must have backing of solid gold. We didn’t have this before, and we decided to have it — and physically, here it is,” said President Mnangagwa.

“I believe our currency will now stand on solid ground because it is backed. We cannot continue to have a currency that goes up and down.”

The President’s comments come in the wake of the April 2024 introduction of Zimbabwe’s new structured currency, the Zimbabwe Gold (ZiG), which is backed by reserves in gold, precious minerals, and foreign currency held by the Reserve Bank of Zimbabwe (RBZ). The central bank reported in May that Zimbabwe held $285 million in gold and foreign currency reserves, supporting the initial rollout of the ZiG currency.

From Criminalisation to Contribution: Embracing ASM

In a shift that has drawn praise from across the mining sector, the President also signalled a new policy direction regarding artisanal and small-scale miners—often pejoratively labelled as “makorokoza.”

“Instead of us identifying them as criminals, we are taking them on board as Zimbabweans who are contributing to the economy of the country. We need only to regularise what they are doing and put them into the mainstream of gold production,” he stated.

This landmark statement aligns with ongoing discussions around the formalisation and legitimisation of ASM operations. According to Fidelity Gold Refinery, ASM players account for over 60% of Zimbabwe’s gold deliveries, producing an estimated 22 tonnes in 2023 alone out of the total 38.5 tonnes of national output.

Miners for Economic Development Applaud Vision

Miners for Economic Development (Miners for ED), a national body representing small-scale miners and mining stakeholders, has lauded the President’s remarks as “visionary and patriotic.”

In a statement released by Edmund Dru Kucherera, the organisation’s Vice Chairperson and Spokesperson, Miners for ED expressed unequivocal support:

“We fully support the President’s recent statements recognising the vital importance of artisanal and small-scale miners (ASM) to Zimbabwe’s economic future,” said Kucherera.

“We particularly applaud his decisive plan to anchor the national currency in physical gold reserves, viewing this as a crucial move towards achieving economic stability and fostering national pride.”

Formalising ASM: A National Imperative

Miners for ED outlined the benefits of integrating artisanal miners into the formal economy, a stance that aligns closely with government goals:

• Boosting transparent and sustainable gold output

• Increasing tax and royalty contributions to the fiscus

• Improving mine safety and environmental standards

• Reducing poverty through job creation and economic empowerment

The organisation also called on financial institutions, government agencies, and communities to rally behind efforts to support ASM and ensure they have access to financing, equipment, legal mining claims, and electricity.

A New Era for Economic Stability

The gold-backed ZiG currency, supported by growing gold reserves from both large-scale and ASM producers, is already generating confidence in economic circles. Analysts note that tying the value of money to physical assets such as gold can curb inflation, reduce currency volatility, and promote savings.

The ZiG replaced the embattled Zimbabwe dollar (ZWL) at an exchange rate of 1 ZiG to 2,498 ZWL, and the RBZ has committed to maintaining a 100% reserve backing to defend its value.

Kucherera added:

“This strategy marks the beginning of a new era where Zimbabwe’s currency, grounded firmly on tangible gold reserves, can achieve lasting stability. This will encourage investment, promote savings, and safeguard citizens’ purchasing power.”

Harnessing Zimbabwe’s Mineral Wealth

Zimbabwe is home to more than 60 gold belts and over 4,000 recorded gold deposits, many of which remain underdeveloped or are exploited through informal mining. By investing in exploration, geological data, and ASM formalisation, Zimbabwe could significantly expand its gold output—potentially reaching the long-term national goal of 100 tonnes annually, as envisioned by the Chamber of Mines.

President Mnangagwa’s commitment to building a gold-backed currency and recognising the role of ASM signals a deliberate step toward inclusive, resource-based economic growth.

A Shared Responsibility

As Miners for ED concluded in their statement:

“Supporting artisanal miners is both an economic necessity and an act of patriotism. We commend the President’s visionary leadership and pledge our full commitment to realising this promising path forward.”

The message is clear: Zimbabwe’s path to economic stability and national pride is paved not just with gold—but with the hands that mine it. By embracing artisanal miners and placing real gold behind its currency, Zimbabwe is asserting a bold new model for home-grown development.

The Reserve Bank of Zimbabwe (RBZ) has officially suspended the sale of gold coins with effect from June 16, 2025, after clearing out the remaining stock through a final mop-up exercise. This move brings to a pause one of the country’s most notable monetary policy tools, launched in 2022 to combat inflation and stabilize the currency.

By Ryan Chigoche

The suspension comes at a time when global gold prices are climbing sharply, further strengthening the case for many investors to hold on to their coins rather than return them. Since their introduction in July 2022, gold prices have risen from around US$1,700 per ounce to over US$2,400 per ounce by mid-2025—an increase of more than 40%.

According to the World Bank’s April 2025 Commodity Markets Outlook, gold prices are expected to surge by another 30% this year, driven by heightened global economic uncertainty, central bank demand, and investor appetite for safe-haven assets.

This outlook helps explain the reluctance of holders to redeem their coins, reducing the central bank’s ability to recirculate them and prompting the current sales suspension.

The final sales conducted by the RBZ did not involve the minting of any new coins. Production had already been halted in April 2024, and the recent transactions were limited to clearing existing inventory, including previously redeemed coins.

In a statement, the central bank indicated that any future sales would depend on the return and accumulation of a significant number of coins, which, in the current climate, seems increasingly unlikely.

Launched in July 2022, the gold coin program was part of a broader monetary stabilisation package designed to offer investors an inflation-proof store of value amid a collapsing local currency. The coins were made available in various sizes and denominations, appealing to both institutions and ordinary citizens, and were also used to mop up excess liquidity in the economy.

Their introduction was timely. Zimbabwe faced acute inflationary pressures in 2022, and confidence in the Zimbabwean dollar was at a low. The gold coins quickly became a popular investment choice, allowing holders to preserve value without resorting to informal foreign currency markets.

However, as inflation moderated and broader monetary reforms took shape—particularly under the new structured currency, ZiG—the RBZ began phasing out the coin program. Still, the global gold rally has extended the utility of the coins for many holders, some of whom view them as appreciating assets rather than short-term liquidity tools.

The RBZ has confirmed that all gold coins currently in circulation remain valid, tradable, and redeemable through authorized financial institutions. However, the slowdown in redemptions, fueled by expectations of continued price increases, has left the central bank with fewer options to resupply the market, reinforcing the decision to pause further sales.

This suspension forms part of a broader shift in Zimbabwe’s monetary policy framework. The RBZ is now focused on introducing new financial instruments that align with the country’s long-term reform goals, rebuild trust in the financial system, and support a savings culture under the ZiG regime.

While the gold coin initiative has served its purpose during a period of volatility, its temporary exit from the market underscores both the success and the limits of policy tools that rely on dynamic global commodity trends.

With gold expected to continue its upward trajectory, the coins may still prove valuable—not just for individual investors, but as a lasting reminder of how alternative monetary assets can function in times of crisis.

A chrome mining company operating in Chiromo Village, Zaka, has been ordered to shut down operations after the High Court ruled in favour of local villagers who argued that the mining activities threatened their homes, livelihoods, and sacred ancestral sites, Mining Zimbabwe can report.

Bailzone Mining (Pvt) Ltd, which held 60 mining certificates covering vast swathes of the rural village, was forced to down tools following a legal challenge mounted by villagers who said their constitutional rights were being violated by the company’s presence.

The applicants in the case—Gideon Rushinga, John Rushinga, Million Rushinga, and Pride Garauzive—successfully argued that Bailzone’s mining operations were encroaching on their homesteads, agricultural fields, grazing land, and graveyards. These sites, they said, were not only vital for their economic survival but also held deep traditional and spiritual significance.

The villagers also challenged the legal standing of the mining company’s operations, citing the Minister of Mines and Mining Development and the Sheriff of Zimbabwe as respondents in the matter. They demanded the cancellation of Bailzone’s certificates of registration, which were issued by the Provincial Mining Director for Masvingo.

In addition to questioning the legality of the mining claims, the villagers called for the nullification of the Environmental Impact Assessment (EIA) report that was approved by the Environmental Management Agency (EMA). They insisted that no mining activities should be allowed in Chiromo without community consultation, consent, and a proper assessment of environmental and cultural impact.

Court documents revealed that Bailzone’s attempt to obtain a court order barring villagers from interfering with its operations had earlier been dismissed, setting the stage for the more decisive case that followed. The court found that the mining company had failed to produce any evidence proving it had the legal authority—or the consent of the Zaka Rural District Council—to prospect or operate in the area.

Riding on the momentum of that ruling, the villagers escalated their legal fight, this time targeting the EIA reports and seeking a declaration that the chrome mining operations were both unlawful and socially disruptive.

Bailzone Mining contested the villagers’ arguments, claiming its mining certificates were still valid and had not been withdrawn by the Ministry. However, the court remained unmoved, siding with the community’s demand for protection of land rights, heritage, and their right to development in dignity and peace.

The judgment has been welcomed by many within Zimbabwe’s rural communities as a landmark decision highlighting the growing tension between rural landholders and mining companies in the country. It also reinforces calls for more responsible mining practices that respect environmental laws, traditional land uses, and the rights of rural citizens to free, prior, and informed consent.

As Zimbabwe pushes to boost investment in the mining sector under the US$12 billion target, the ruling is a timely reminder that development must not come at the expense of people’s homes, heritage, and fundamental rights.

Zimbabwe’s gold sector is poised for a potentially lucrative 2025 as the World Bank projects a 30 per cent increase in global gold prices, driven by safe-haven demand amid ongoing geopolitical and economic uncertainty, Mining Zimbabwe can report.

By Ryan Chigoche

According to the World Bank’s Global Economic Prospects 2025 report, annual average gold prices are expected to reach record highs this year before stabilizing through 2026 and 2027.

This positive forecast comes amid a broader slowdown in global commodity markets, with the prices of base metals projected to fall by 5 percent in 2025 and continue drifting lower before stabilizing. The decline in base metals such as copper and aluminium reflects persistent headwinds in global manufacturing and trade tensions, which have weighed on industrial demand.

In contrast, the precious metals price index, which primarily reflects gold along with silver and platinum, is expected to buck this trend with a significant price increase. This divergence highlights gold’s traditional role as a safe-haven asset during times of uncertainty.

“The precious metals price index, reflecting principally gold but also silver and platinum, is projected to buck the broader trend, increasing by more than 30 percent in 2025. Annual average gold prices are expected to reach a record high this year, supported by safe-haven flows, before plateauing in 2026–27,” the report said.

For Zimbabwe, where gold remains the largest contributor to export earnings and foreign currency inflows, this forecast carries important implications. The country’s national gold production target for 2025 is set at 40 tonnes, a goal that appears achievable based on current trends and planned investments.

Data from Fidelity Gold Refinery indicates that year-to-date gold deliveries reached 15.8 tonnes by the end of May 2025, marking the highest recorded figure for this period. While deliveries in May fell by 9.48 percent compared to April, mainly due to a 13 percent decline in small-scale mining output, large-scale mining production increased by 1 percent month-on-month.

Year-on-year figures show a 28 percent rise in total gold production, driven largely by small-scale miners whose output increased by 52 percent compared to May 2024. Conversely, large-scale mining output declined by 11.34 percent year-on-year.

Small-scale and artisanal miners remain vital to Zimbabwe’s gold production, historically contributing over 60 percent of output. In 2024, small-scale miners accounted for approximately 65 percent of total gold deliveries.

With government efforts to formalize and incentivize this sector, including payments in 100 percent US dollars, small-scale miners are expected to contribute around 25 tonnes toward the 2025 target.

Among large-scale producers, Caledonia Mining Corporation’s Blanket Mine is on track to meet its 2025 target of approximately 2,050 to 2,160 kilograms (2.05 to 2.16 tonnes), having recorded a strong first-quarter output of 530 kilograms. Padenga Holdings, through Dallaglio Investments, aims to produce between 2,638 and 2,799 kilograms (2.64 to 2.80 tonnes) as part of a $30 million capital investment plan to boost gold output.

Kuvimba Mining House is targeting a 13 percent increase in gold production in 2025, with a $38 million investment in Freda Rebecca Mine to extend its life and raise output to around 2,548 kilograms (2.55 tonnes), up from 2,229 kilograms (2.23 tonnes) in 2024. The company is also conducting exploration activities aiming to unlock approximately 40 million tonnes of ore containing nearly 2 million ounces of gold.

Together, these companies are expected to contribute at least 9,000 kilograms (9 tonnes) of gold, with other large-scale producers such as RioZim bringing total large-scale output to approximately 10,000 kilograms (10 tonnes). This strong production outlook positions Zimbabwe well to benefit from the World Bank’s forecasted 30 percent surge in gold prices, potentially translating into significant revenue gains amid a challenging global economic environment.

Global gold prices have already surged to record levels in 2025, hitting $3,500 per ounce in April and $3,432 per ounce in early May. Goldman Sachs projects prices could reach $3,700 per ounce by the end of the year, driven by geopolitical tensions and safe-haven demand.

The surge in prices is expected to increase revenues for Zimbabwean gold producers, helping to offset production challenges and boost export earnings. The mining sector is projected to grow by seven percent in 2025, with gold expected to exceed $3 billion in value, contributing significantly to foreign currency reserves.

However, challenges remain, including electricity shortages that disrupt mining operations and smuggling that leads to estimated annual losses of $1.5 billion. Regulatory changes, such as export surrender requirements, also pose hurdles for producers.

Small-scale miners, estimated to number between 500,000 and 1.5 million, remain a key driver of production and have the potential to increase output further with continued financial and policy support.