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The mining industry, once envisioned as a key driver for achieving a US$12 billion industry by 2023, is now grappling with critical challenges that have left the country far short of its target. Despite efforts to boost mining output, the sector failed to meet its revenue goal. This failure is now threatening Zimbabwe’s broader objective of becoming an upper-middle-income economy by 2030, Mining Zimbabwe can report.

By Rudairo Mapuranga

A 2023 report by the Ministry of Mines and Mining Development highlights the operational constraints faced by key mining companies, including Bindura Nickel Corporation (BNC), Prospect Lithium Zimbabwe (PLZ) and Natural Stone Export. The report reveals how electricity shortages, water scarcity, and limited access to capital have stifled production.

As the country shifts focus from the missed US$12 billion milestone to the 2030 vision, these unresolved challenges raise concerns about the mining sector’s ability to contribute meaningfully to national economic transformation.

A Missed Milestone: The US$12 Billion Target Failure

Zimbabwe’s mining sector was projected to generate US$12 billion in annual revenue by 2023, leveraging the nation’s rich mineral resources, including gold, platinum, lithium, and nickel. This goal aimed to catalyze economic growth, create jobs, and secure foreign currency reserves. However, the Ministry of Mines’ report shows that operations across the sector operated at reduced capacity due to electricity shortages, water scarcity, and financial constraints.

In 2023, mines operated at only about 50% of their capacity, diminishing output across key minerals and contributing to the sector’s inability to reach its target.

Bindura Nickel Corporation: From Production to Care and Maintenance

Among the hardest hit is Bindura Nickel Corporation (BNC). In 2023, BNC produced nickel concentrates below full capacity due to electricity and equipment challenges. By 2025, it had been placed under care and maintenance, a consequence of persistently low global nickel prices and depleted high-grade ore at its Trojan Mine.

The company had shifted from a high-grade, low-volume production model to a low-grade, high-volume one. Rising costs, high electricity tariffs, and outdated equipment rendered operations unsustainable, forcing the company to cease production while awaiting improved market conditions.

Electricity Crisis: A Sector in the Dark

Electricity shortages remain a critical threat. The Ministry of Mines’ 2023 report noted that BNC was spending USD 550,000 to USD 700,000 per month on electricity, yet frequent outages hindered full-capacity operation.

Companies like Natural Stone Export in Mutoko faced even harsher challenges, accessing electricity for just two hours daily in 2023. This forced reliance on diesel generators, consuming up to 4,000 liters of fuel daily, driving up costs, and lowering output.

Without reliable electricity, the mining sector cannot operate efficiently or expand. Resolving this issue is crucial for achieving the 2030 vision.

Water Scarcity: A Growing Concern

Water scarcity also undermines mining production. PLZ, operating in Goromonzi, reported that water shortages limited its ability to process lithium concentrates. The company plans to build a processing plant in 2024, but this expansion depends on securing reliable water supplies.

Similarly, Natural Stone Export and Hongri Trading Company in Mashonaland East have faced significant disruptions due to water shortages, with local dams drying up and production capacities further constrained.

Capital Shortages: Limiting Growth Potential

Capital shortages compound the sector’s challenges. BNC, Umbrella 77 B Gold Mine, and Tabatana Mining Syndicate have struggled to secure funding for expansion and modernization.

For instance, BNC needs USD 200 million to repair its Subvertical Service Shaft but has raised only USD 100 million internally. Umbrella 77 B Gold Mine cannot complete its fourth shaft, while Tabatana Mining Syndicate lacks modern equipment, resulting in suboptimal production.

The government must facilitate access to affordable capital, particularly for small- and medium-scale operations, to enable growth.

Corporate Social Responsibility: Contributions Amid Challenges

Despite these challenges, some companies continue to prioritize corporate social responsibility (CSR). PLZ allocated USD 2 million in 2023 for projects such as schools, clinics, and boreholes in Goromonzi, along with road infrastructure improvements. Similarly, Natural Stone Export has built schools, drilled boreholes, and supported local services.

Looking Ahead: Urgent Interventions Required

Zimbabwe’s mining sector faces significant obstacles, as outlined in the Ministry of Mines’ 2023 report. Electricity, water, and capital shortages persist into 2025, threatening the sector’s ability to support the 2030 vision.

To address these issues, the government must prioritize investments in infrastructure, particularly electricity and water supply systems, and improve access to affordable financing for mining operations.

While the failure to achieve the US$12 billion milestone is a setback, the mining sector still holds potential to drive sustainable growth. With the right support and investment, Zimbabwe’s vast mineral resources could unlock prosperity by 2030. However, time is running out, and swift action is needed to ensure the industry fulfills its role in the country’s economic ambitions.

In a significant development, China has announced a sharp increase in its lithium reserves, now accounting for 16.5% of global resources, up from just 6% previously.

By Ryan Chigoche

This surge places China as the second-largest holder of lithium reserves worldwide, trailing only Chile. The discovery of new reserves, particularly along the 2,800-kilometer West Kunlun-Songpan-Ganzi lithium belt, has been pivotal to this dramatic growth, further solidifying China’s strategic importance in the global lithium market.

The findings have expanded the variety of lithium ores available in China, bolstering its position as a dominant global player.

Advancements in lithium extraction technologies have also driven this surge in reserves. More efficient extraction from salt lakes and lithium mica has significantly increased determined resources. Newly identified salt lake lithium resources alone exceed 14 million tons.

The extraction of lithium from brine in salt lakes, known for its lower cost and reduced environmental impact, has notably boosted reserves in regions like the Qinghai-Tibet Plateau. This development positions China as the third-largest salt lake lithium resource hub globally, after South America’s Lithium Triangle and the U.S. western region.

Breakthroughs in lithium mica extraction have also been crucial. Previously, high costs and complex processes made this challenging, but improved technologies have added 10 million tons of proven lithium resources to China’s stock.

These advancements have eased China’s historically tight lithium supply and contributed to stabilizing the global lithium market.

Lin Boqiang, Director of the China Center for Energy Economics Research at Xiamen University, emphasized the significance of these developments, highlighting how China’s lithium reserves and technologies reinforce its leadership in the global market. He also noted that China’s comprehensive industrial chain enables the production of high-quality batteries at lower costs, strengthening its dominance in the lithium-ion battery industry.

From January to October 2024, China produced 890 gigawatt-hours of batteries, a 16% year-on-year increase. During this period, over 200 gigawatt-hours of energy storage lithium-ion batteries were produced, and installations for new energy vehicles reached approximately 405 gigawatt-hours.

Opportunities for Zimbabwe

Zimbabwe, one of the world’s largest untapped lithium sources, can strategically leverage its potential amid China’s increasing dominance. While China’s advancements intensify global competition, Zimbabwe has the opportunity to attract investments, enhance mining technology, and develop a competitive edge.

By aligning with global trends, Zimbabwe could position itself as a key player in the global lithium supply chain, benefiting from the surging demand for electric vehicles and renewable energy technologies.

China’s continued leadership in extraction technologies also presents collaboration opportunities for Zimbabwe. By adopting similar innovations, Zimbabwe could significantly boost its lithium production, drive economic growth, and contribute to global market stability.

Three years after the government of Zimbabwe imposed a ban on chrome ore exports, Tharisa’s Salene Chrome project in Mhondoro Ngezi remains under care and maintenance, Mining Zimbabwe can report.

By Rudairo Mapuranga

This continued inactivity has raised serious concerns, as small mining companies in Zimbabwe have already adapted to the ban, producing chrome concentrates to meet the government’s beneficiation policy. In contrast, Tharisa, one of the largest chrome producers in the world, has made little progress in beneficiation, a glaring failure that reflects poorly on the company’s commitment to Zimbabwe’s value addition goals.

In its FY2024 Results Presentation, Tharisa explained that “Salene Chrome (Private) Limited (‘Salene Chrome’) is a development stage, low-cost, open-pit asset located on the Great Dyke in Zimbabwe. Salene Chrome was placed on care and maintenance following the introduction of a ban on exports of chrome concentrates by the Government of Zimbabwe and the business case is pending a review.”

However, this justification fails to account for why a major global chrome producer like Tharisa has not been able to invest in beneficiation facilities within a three-year period. The government’s decision to ban chrome ore exports was intended to push mining companies to add value to the raw materials before export, ensuring that Zimbabwe maximizes the economic benefits of its resources.

Small-scale miners, despite their limited resources, have managed to rise to the challenge, producing chrome concentrates in compliance with the government’s directive. Yet, three years later, Tharisa’s Salene Chrome is still unable to beneficiate chrome into either concentrates or ferrochrome. This is unacceptable for a company of Tharisa’s size, resources, and global standing.

The failure to act raises serious questions about Tharisa’s commitment to Zimbabwe’s economic growth and the role of local beneficiation in strengthening the mining industry. While other companies, including small-scale miners, have made significant investments to meet the new regulations, Tharisa has lagged behind. For a giant in the global chrome industry to still be reviewing its business case for beneficiation three years after the export ban, there is a lack of urgency and possibly a disregard for local policy.

The government’s decision to ban chrome concentrate exports, which came into effect in July 2022, was intended to give producers enough time to invest in beneficiation. The cabinet even noted that the investment in beneficiation technology was low-cost and relatively simple to implement. Yet, Tharisa has failed to capitalize on this window, leaving its Salene Chrome project stagnant and unable to contribute to the country’s goals.

Zimbabwe’s chrome sector has the potential to be a key player in the global market, particularly as stainless steel production – the main consumer of chrome – has seen a resurgence, with global production increasing by 6.3% in the first half of 2024. China, which accounts for a significant share of this production, remains a major market for Zimbabwean chrome. However, Tharisa’s inaction has meant that it cannot fully participate in this booming market.

The company’s failure to move forward on beneficiation is even more perplexing given its strong global presence. South Africa supplies 80% of China’s chrome needs through companies like Tharisa. Despite logistical challenges and supply chain disruptions in Southern Africa, the company has managed to deliver on its commitments in other regions, making its inaction in Zimbabwe even more concerning.

While the Zimbabwean government has continued to support local smelters and promote beneficiation as part of its national economic strategy, the smelting capacity is at risk of shrinking due to insufficient feedstock from companies like Tharisa. If large-scale operators like Salene Chrome fail to step up and increase chrome beneficiation, the entire sector could face bottlenecks, ultimately undermining the country’s efforts to build a thriving mining industry.

Three years is more than enough time for a company of Tharisa’s caliber to comply with Zimbabwe’s beneficiation policies. Small-scale miners have proven that it is possible to adapt to the regulations and continue operations successfully. Tharisa’s failure to do so is uncalled for, and it needs to be held accountable for not prioritizing the local beneficiation of chrome.

The government and industry stakeholders must now demand that Tharisa expedite its efforts to bring Salene Chrome into full operation, including beneficiation. Zimbabwe cannot afford to have one of its key players in the chrome sector idling, while smaller players make progress. If Tharisa does not act swiftly, it risks not only damaging its reputation but also hindering the country’s economic development goals.