Mining ZimbabweLatest Mining News, Policy and Industry Updates

The Dokwe Gold Project in Zimbabwe has been valued at US$160 million following an updated resource estimate. The project, operated by AIM-listed Ariana Resources, saw a significant boost in its mineral resources, strengthening its potential as one of the country’s most promising undeveloped gold assets.

By Ryan Chigoche

This follows a 9% rise in the project’s In-Pit Mineral Resource Estimate announced in March. The updated Measured and Indicated resource now stands at 19.7 million tonnes at 1.54 grams of gold per tonne, equating to 977,000 ounces of gold using a 0.6g/t cut-off grade.

Including all categories—Measured, Indicated, and Inferred—the resource totals 44.9 million tonnes at 0.98g/t, approximately 1.42 million ounces of gold at a 0.3g/t cut-off.

The company attributes the stronger resource base to an improved geological model, providing greater flexibility in mine planning and supporting the updated project valuation.

Ariana presented the US$160 million valuation to its shareholders last week. This figure pertains solely to the Dokwe North deposit and excludes the 0.5% net smelter return royalty owed to Yataghan Investments.

Located in Tsholotsho District, about 110 kilometers northwest of Bulawayo, the Dokwe Project’s new model assumes a gold price of US$2,000 per ounce and targets an annual gold output of 60,000 ounces.

The company has also increased its expected capital expenditure to US$82 million, up from US$80 million, aiming to unlock value from the current 1.4 million ounces of gold within the optimized pit shells at Dokwe North and Central.

Ariana plans to update its pre-feasibility study (PFS) after completing a revised reserve estimate for both Dokwe North and Central.

The company sees strong potential to enhance the project’s economics by increasing gold output to 100,000 ounces per year and extending the mine life beyond 10 years. Plans include constructing a processing plant capable of handling 2 million tonnes of ore annually to support this expansion.

Between late 2023 and early 2024, Ariana drilled 1,222 meters of PQ and HQ diamond holes across both deposits. The drilling confirmed previous exploration data and indicated further growth potential.

Ariana identifies significant exploration opportunities near Dokwe North and Central. In the short term, the focus will be on areas with known gold anomalies and untested zones. Additional areas such as Dokwe Central, Siduli Pan, and Dokwe South remain underexplored and are considered key to future value.

Zimbabwe’s gold potential remains robust. In 1980, the country produced more gold than Western Australia. However, years of underinvestment have caused Zimbabwe to lag behind while WA has become a leading gold producer.

Experts highlight Zimbabwe’s promising geology, noting that the Zimbabwe Craton shares similarities with Western Australia’s Yilgarn Craton, one of the world’s richest gold regions. Companies like Caledonia Mining have demonstrated successful gold mining operations in the country.

Zimbabwe also boasts significant reserves of other minerals, including lithium and platinum group elements (PGEs), enhancing its appeal as a destination for international mining investment.

Ariana believes its early entry into Zimbabwe positions it advantageously. The company plans to advance the Dokwe Project into production while exploring additional growth opportunities as the country’s mining sector develops.

Gold Price Trends and Implications for the Dokwe Project

As of April 4, 2025, gold prices have surged to record highs, reaching approximately US$3,037.36 per ounce, driven by investor concerns over geopolitical tensions and economic uncertainties.

This marks a significant increase of over 18% since the beginning of the year.

Analysts attribute this surge to factors such as recent tariff announcements by President Trump, leading investors to seek safe-haven assets like gold.

Major financial institutions, including Goldman Sachs and Bank of America, have adjusted their gold price forecasts upward, anticipating continued gains driven by trade-war tensions and central bank demand.

This upward trend in gold prices could have positive implications for Ariana Resources’ Dokwe Gold Project. Higher gold prices may enhance the project’s profitability and attract additional investment, supporting Ariana’s plans to increase production and extend the mine’s operational life.

However, the gold market remains volatile, and prices can fluctuate based on global economic developments.

Ariana Resources will need to monitor these trends closely to optimize the project’s economic outcomes.

The Centre for Natural Resource Governance (CNRG) is calling for the immediate closure of Sino Africa Huijin’s Premier Estate mine in Old Mutare, following the fatal shooting of an artisanal miner, Alfred Dodzo.

By Ryan Chigoche

Dodzo was killed by a security guard after allegedly being caught stealing gold ore from the mine. The tragic incident has sparked outrage in the local community, with residents demanding justice and accountability.

CNRG is urging the government to permanently shut down the mine and ensure accountability for the killing while also addressing ongoing labour and environmental concerns at the operation.

Acting Manicaland Police Spokesperson, Assistant Inspector Wiseman Chinyoka, confirmed the incident and stated that authorities were on-site gathering evidence.

In response to Dodzo’s death, around 70 local community members stormed the mine. Enraged, they attacked the security guards, accusing them of taking the law into their own hands. While the guards managed to escape, several were injured.

The mine manager, Daniel Panganai, was not as fortunate. He was pelted with stones and seriously injured. He was rushed to Hartzell Mission Hospital and later transferred to Mutare General Hospital.

CNRG, which visited the scene, highlighted longstanding concerns among workers at Sino Africa Huijin. Workers have repeatedly raised alarms about the mine’s poor living and working conditions. They also allege that the Chinese nationals who own the mine are smuggling gold and failing to declare it to the government, depriving Zimbabwe of critical revenue.

CNRG also pointed to stark segregation at the mine. Zimbabwean workers live in wooden shacks, while Chinese nationals reside in comfortable accommodations within a secure compound. This inequality raises serious questions about the government’s commitment to fairness and equality, especially in light of Zimbabwe’s history of resistance to racial oppression.

Dodzo’s killing reflects a broader, troubling pattern at Chinese-owned mines in Zimbabwe. These companies have faced mounting criticism for violating labour rights, neglecting safety standards, and damaging the environment.

As reported by Mining Zimbabwe, in a separate incident at Sino Africa Huijin, a worker named Taurai Dozva died under mysterious circumstances during a night shift. His family was reportedly given just US$2,000 in compensation—an amount many considered a gross insult to his life and service.

These incidents underscore systemic issues at Chinese-run mines in Zimbabwe, where workers frequently report exploitation, unsafe conditions, and inadequate pay. Many such operations function with minimal oversight, often in violation of labour and environmental laws.

In response, CNRG is calling for the permanent closure of Sino Africa Huijin’s mine.

They propose reopening the site to Zimbabwean artisanal miners to operate under the supervision of the Zimbabwe Mining Development Corporation (ZMDC) and the Minerals Marketing Corporation of Zimbabwe (MMCZ). This, CNRG argues, would enable local communities to benefit directly from their natural resources while ensuring the government receives the revenue it is due.

CNRG has also called for a thorough investigation into the killing of Alfred Dodzo and demanded that those responsible be prosecuted under Zimbabwean law.

Additionally, the organisation is pressing for a full audit of Sino Africa Huijin’s financial activities, particularly in relation to alleged gold smuggling and other illegal practices.

CNRG is urging the government to take stronger action against companies that exploit workers, flout safety regulations, and engage in illicit activities.

Their ultimate goal is to ensure that Zimbabwe’s natural resources benefit all citizens—not just foreign investors.

Unki Mine, Zimbabwe’s third-largest producer of platinum group metals (PGMs), will invest US$700,000 in 2025 to expand its open-pit operations and solar energy infrastructure, Mining Zimbabwe can report.

By Rudairo Mapuranga

According to the 2025 Commodity Outlook Report by the Chamber of Mines of Zimbabwe, the mine will allocate US$500,000 to open-pit expansion and US$200,000 to solar projects. These efforts are expected to boost production by 1% while improving energy resilience and operational efficiency.

The investment comes as Unki faces production setbacks. In Q4 2024, PGM output fell 2% to 60,300 ounces due to a three-day nationwide power outage, according to its parent company, Anglo American Platinum (Amplats).

Earlier in 2024, Unki faced more challenges. In Q2, production dropped 7% to 54,700 ounces after mining through a lower-grade ore zone. Platinum output declined 9% to 25,700 ounces compared to Q2 2023.

Amplats CEO Craig Miller reaffirmed the company’s focus on safety and sustainability, stating, “We are resolute in our commitment to eliminate fatalities from our workplace and ensure zero harm becomes a daily reality.”

Despite challenges, Unki remains a key asset for Amplats. The Q4 2024 report showed a 6% decline in total group PGM output to 875,700 ounces, though own-mined production rose 1%, reflecting improved operations at mines like Unki.

Unki also contributed to a 20% increase in Amplats’ nickel production in Q2 2024, with total output reaching 7,300 tonnes. This resilience, despite a 37% drop in global rhodium prices, highlights the mine’s strategic value.

The US$700,000 investment in expansion and renewable energy positions Unki for stability and growth in 2025, reinforcing its role in Zimbabwe’s PGM sector and contribution to national mining revenues.

Zimbabwe’s chrome production is projected to rise to 2.7 million metric tonnes in 2025, up from 2.5 million metric tonnes in 2024, as key industry player ZimAlloys, under Kuvimba Mining House, revitalizes its high-carbon ferrochrome plant in Gweru, signaling a strong recovery in the sector, Mining Zimbabwe can report.

By Rudairo Mapuranga

ZimAlloys, one of Zimbabwe’s largest ferrochrome producers, has been at the forefront of chrome production revitalization. Once struggling, the company’s Gweru ferrochrome plant is now back in operation, significantly boosting Zimbabwe’s output.

“The restoration of ZimAlloys’ plant is a game-changer for Zimbabwe’s chrome sector,” said an industry analyst. “With Kuvimba Mining House’s backing, the company is well-positioned to contribute meaningfully to national production targets.”

Several key projects are expected to drive further growth in Zimbabwe’s ferrochrome industry:

1. Zimasco’s $22.6 Million Smelter Expansion

Zimasco Mining Company is investing $22.6 million in mine exploration and smelting upgrades to sustain ferrochrome production.

The company is also allocating $43,243 for the 19M01 Ngezi 3D 24 underground mine, enhancing the raw material supply.

2. Afrochine Smelting’s New Smelters

Afrochine Smelting, a subsidiary of Tsingshan Holdings, is constructing two new smelters with an estimated investment of $3 million.

The project, set for completion by October 2025, is expected to increase production by 28%.

3. Ferrochrome Mine Expansion

A strategic initiative is underway to ensure a steady supply of lumpy chrome ore, targeting 2,500 tonnes per month.

The government has been actively supporting chrome producers through favorable policies, including the lifting of the chrome ore export ban, which has incentivized production growth.

“Zimbabwe’s chrome sector is on an upward trajectory,” said the Chamber of Mines. “With ZimAlloys back in full swing and new investments coming online, we expect record output in 2025.”

Despite the positive outlook, challenges such as power shortages and logistical constraints remain. However, with Kuvimba Mining House’s financial muscle and ongoing private-sector investments, Zimbabwe is poised to solidify its position as a leading chrome producer in Africa.

As the country moves toward Vision 2030, the chrome sector’s resurgence—led by ZimAlloys and other key players—will be critical in driving industrial growth, job creation, and export earnings.

The Victoria Falls Stock Exchange-listed Caledonia Mining Corporation has reported a net foreign exchange loss of US$9.7 million in 2024, up from US$6.8 million the previous year, marking a 30% increase. The rise in these losses reflects the ongoing depreciation of the local currency, which continues to impact the mining industry’s financial performance.

By Ryan Chigoche

At the center of the crisis is Zimbabwe’s new monetary policy requiring exporters to convert 30% of their foreign currency earnings into the Zimbabwe Gold (ZIG) currency at the official interbank rate.

While the government insists that the policy will stabilize the economy, businesses argue that it is accelerating financial losses. The continuous decline of ZIG means that every forced conversion results in an immediate loss of value, reducing the real earnings of exporters and increasing their exposure to currency risk.

For the mining sector, which relies on predictable revenue flows to fund operations and expansion, this depreciation is a major challenge.

With key costs, including wages, fuel, and locally sourced inputs, rising due to the weakening currency, miners are struggling to balance their books in an environment where their retained earnings lose value almost immediately.

The Chamber of Mines of Zimbabwe has repeatedly warned that the current 70% forex retention threshold is inadequate and that businesses need a higher percentage of their earnings protected from currency fluctuations.

The issue is further compounded by inflationary pressures, which continue to drive up operational costs. As the local currency depreciates, suppliers adjust their prices upward to hedge against losses, creating a vicious cycle that raises the cost of doing business.

This instability threatens to derail the mining industry’s ambitious plans to invest US$600 million in capital projects and increase mineral exports from US$5.5 billion to US$6 billion in 2025.

While authorities remain firm on the new policy, industry players warn that unless measures are taken to address the rapid loss of value in the local currency, foreign exchange losses will continue to rise.

Without a reversal or adjustment to the retention framework, mining companies and other exporters could see profitability further eroded, dampening investor confidence and slowing economic growth in a sector that remains crucial to Zimbabwe’s economy.

Zimbabwe’s export earnings fell significantly in February 2025, dropping by 21.4% from US$652 million in January to US$512.6 million. The decline was driven by sharp reductions in revenues from key commodities, including gold, tobacco, diamonds, and ferroalloys, exposing deep vulnerabilities in the country’s export sector, according to the latest data from ZimStats.

By Ryan Chigoche

Gold, the country’s top export, which accounted for 42.3% of total exports, saw earnings contract from US$291 million in January to US$216 million in February, despite global gold prices being on the rise. This sharp decline points to persistent smuggling and under-reporting within the sector, long-standing issues that continue to erode Zimbabwe’s foreign currency inflows.

Tobacco, a vital cash crop making up 15.8% of Zimbabwe’s exports, also experienced a steep fall, with earnings dropping from US$120 million to US$83 million. The decline is likely linked to unfavorable weather conditions and inadequate support for farmers. Meanwhile, ferroalloy exports fell from US$22 million to US$14 million, and diamonds recorded a downturn from US$15 million to US$10 million. Power shortages and a lack of investment in value addition remain major constraints on these industries.

With exports contracting sharply and imports remaining high, Zimbabwe’s trade deficit widened to US$217.7 million in February, marking a staggering 124.2% increase from the US$97.1 million recorded in January. The growing deficit highlights structural weaknesses in the economy, where foreign currency earnings are failing to keep pace with the country’s rising import bill.

Imports decreased slightly by 2.5% from US$749.2 million in January to US$730.3 million in February. However, spending on petroleum products, motor vehicles, machinery, and wheat remained elevated, indicating continued reliance on imported goods.

Petroleum oil, the leading import, rose from US$117.8 million to US$129.9 million, reflecting Zimbabwe’s ongoing lack of refining capacity and growing fuel demand. Imports of transport vehicles increased from US$17 million to US$21 million, while industrial machinery imports rose from US$9 million to US$15 million, signaling efforts to improve infrastructure and mining operations, albeit at a high cost.

The sharp decline in export earnings highlights deep-rooted structural weaknesses in Zimbabwe’s economy. The gold sector continues to suffer from illicit flows, with estimates suggesting that up to 20% of production is lost through informal channels. In the tobacco sector, contract farming models often limit farmers’ ability to reinvest in production, affecting long-term sustainability.

Chronic power shortages have further weakened the export sector, disrupting mining and manufacturing activities and making Zimbabwe’s commodities less competitive in global markets. The economy’s heavy reliance on imports for essential goods also underscores the need for policy interventions to boost local production and reduce dependency on foreign suppliers.

To address these challenges, economic experts recommend key reforms. Reducing export retention rates from 30% to 10% could increase liquidity for exporters, encouraging reinvestment in production. Expanding renewable energy infrastructure and upgrading existing power facilities would help stabilize mining and manufacturing output. Additionally, curbing gold smuggling through enhanced oversight, including digital tracking systems, could recover lost revenue and strengthen formal trade channels.

With export earnings under severe pressure and the trade deficit widening, Zimbabwe faces growing economic strain. Immediate reforms are needed to restore the country’s export competitiveness, support key industries, and prevent further deterioration in foreign currency earnings.