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Balancing Planet, People, and Profit: ESG Priorities in Zimbabwe’s Mining Industry

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Balancing Planet, People, and Profit: ESG Priorities in Zimbabwe’s Mining Industry

Zimbabwe’s mining sector is increasingly embracing Environmental, Social, and Governance (ESG) principles to promote sustainable development that benefits both communities and the environment. The call to balance economic growth with the welfare of the planet and people is growing louder, as stakeholders advocate for a more responsible approach to resource extraction, Mining Zimbabwe can report.

By Rudairo Mapuranga

The message was reinforced at the recent Zimbabwe Alternative Mining Indaba (ZAMI) 2024, which focused heavily on promoting responsible mining practices.

The event, organized by the Zimbabwe Environmental Law Association (ZELA) alongside the Zimbabwe Coalition on Debt and Development (ZIMCODD) and the Zimbabwe Council of Churches (ZCC), explored how the mining industry can drive economic growth while adhering to global ESG standards.

At the heart of ZAMI 2024 was the need for mining companies to integrate ESG principles into their operations, ensuring that the environment, local communities, and economic interests receive equal attention.

Shamiso Mtisi, Deputy Director of ZELA, highlighted the importance of Zimbabwe’s Responsible Mining Order, a key framework that sets the stage for enforcing ESG compliance in the country.

“The Responsible Mining Order ensures that companies align their operations with national legislation on environmental protection, community development, and human rights,” Mtisi said during the Indaba.

Mtisi also stressed the role of governance in driving ESG adherence, noting that companies must be held accountable for their impact on local communities. This includes how they treat their workers, particularly women, and how they engage with issues like human rights, environmental sustainability, and social responsibility.

Water management was another key focus, especially given the growth of Zimbabwe’s lithium mining industry, known for its high water consumption, which can lead to conflicts between mining companies and local communities.

“Water is a critical resource for both mining operations and the communities living nearby. How companies manage this resource is a major test of their commitment to ESG principles,” said Mtisi.

Zimbabwe’s mining sector, particularly in the extraction of transition minerals like lithium, has come under increasing scrutiny regarding how it manages natural resources such as water. Equitable distribution of water between mining companies and local communities remains a contentious issue, with communities often expressing concerns that mining operations are depriving them of vital water resources needed for agriculture and daily life.

Further discussions at ZAMI also touched on the broader topic of environmental governance, with a particular focus on ensuring that economic development does not come at the expense of the planet.

“Putting the planet first is essential. We must ensure that mining activities are conducted in an environmentally responsible manner,” said a representative from one of Zimbabwe’s leading mining companies.

Health and social services in mining communities were also highlighted as essential ESG priorities. Mining companies were urged to invest in health infrastructure and ensure that workers have access to adequate healthcare services. Moreover, community development projects must be designed to uplift the quality of life for residents in mining areas.

Taxation and economic development were also key themes. Zimbabwean mining companies have been called upon to contribute more transparently to the national economy through fair taxation and revenue reporting. This is particularly important to ensure that the profits from mineral resources benefit the country and its people.

As Zimbabwe positions itself as a major player in the global mining industry, integrating ESG principles into its operations will be crucial for maintaining a sustainable and ethical mining environment. The mining sector has a vital role to play in driving the country’s economic future, but it must do so in a way that respects both people and the planet.

By focusing on balancing the planet, people, and profit, Zimbabwe’s mining industry can lead the way in sustainable development, setting an example for other resource-rich nations around the world. As the country continues to develop its ESG frameworks, it is clear that a responsible and just approach to mining is essential for long-term success.

Zimbabwe CIO Officials Under Fire for Extorting Chinese Miner

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Zimbabwe CIO Officials Under Fire for Extorting Chinese Miner

In a recent case of alleged corruption, two members of the Presidential Guard and three officers from the Central Intelligence Organisation (CIO) are facing serious accusations of extorting US$2,000 from a Chinese miner.

By Ryan Chigoche

The incident reportedly unfolded when the officers coerced the miner into paying the bribe, claiming it was necessary to facilitate business operations in Zimbabwe. This incident has raised significant concerns about the integrity of state security forces and their role in the business environment.

The situation escalated as the miner complied, transferring the bribe to the officers at the Zimbabwe House, a location typically associated with high-level government activities.

The suspects in the extortion case—Chamunorwa Victor Chinorwiwa (32), Hilary Maravanyika (28), Tawanda Ngoshi (39), Samuel Zvishamiso Simbabure, and Respect Zuva, whose age has not been disclosed—are currently facing serious legal challenges.

Simbabure and Zuva appeared in court last week, while their accomplices were presented before Magistrate Marehwanazvo Gofa on a subsequent date. All five are expected back in court on Tuesday for a ruling on their application contesting their placement on remand, and they are also facing robbery charges.

According to the State, the incidents occurred on October 19, 2024, when the group allegedly conspired to visit the Murodzi mining claim in Mazowe. Posing as members of the Criminal Investigations Department (CID), they ordered the miner, Enjie Zhang, along with his 25 workers, to gather and sit together in one location, asserting their authority under false pretences.

According to court documents, the lead suspect, Samuel Zvishamiso Simbabure, and his accomplices used threats to coerce the complainant, Enjie Zhang, and his workers into submission.

They allegedly ordered the group to remain still, brandishing a pistol and threatening to shoot anyone who attempted to flee. The suspects demanded that the complainant and fellow Chinese nationals, including Jinliang Xue, Hang Hainglin, and Shan Dong Zhou, present their identity documents, mining certificates, and work permits.

While the complainants produced their identity documents, they could not provide the mining certificates and work permits, claiming these were held by their general manager, Hu, in Harare.

The suspects accused them of conducting illegal mining operations and demanded a bribe of US$2,000 for their release. Following instructions, the complainant contacted Hu to arrange for the payment.

Prosecutors allege that Hu then contacted an informant, Godfrey Zambuko, instructing him to deliver the bribe to Ngoshi at Zimbabwe House. Zambuko complied and handed over the money; however, Ngoshi is reportedly still at large.

Additionally, Hang Hainglin, who managed to escape the initial confrontation, received US$1,000 from another Chinese national to facilitate a separate payment. Eventually, an interpreter named Kelvinator Don Paricha delivered US$800 to the suspects, resulting in the release of the complainant and his fellow workers. However, the plot thickened when Simbabure later contacted Zambuko for an additional bribe, prompting further investigation that led to the arrest of two suspects at Zimbabwe House.

In recent years, there has been a concerning rise in instances where local law enforcement officers and individuals claiming political connections extort kickbacks from Chinese miners engaged in illegal mining activities in Zimbabwe.

This troubling trend highlights a disturbing collaboration between corrupt officials and those exploiting the country’s natural resources.

As demands for bribes grow, miners often operating outside legal frameworks find themselves trapped in a cycle of corruption that undermines regulatory structures and ethical business practices.

This brazen act of impersonation not only raises serious questions about the conduct of those in positions of power but also highlights the broader issue of corruption and lawlessness in the mining sector.

ZCC Calls for Justice and Fairness in Zimbabwe’s Energy Transition

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ZCC Calls for Justice and Fairness in Zimbabwe’s Energy Transition

The Zimbabwe Council of Churches (ZCC) has called for a fair and equitable energy transition in Zimbabwe, emphasizing the need to prioritize community welfare and environmental sustainability. The church urges a balanced approach to resource extraction and community development, Mining Zimbabwe reports.

By Rudairo Mapuranga

The call was made at the Zimbabwe Alternative Mining Indaba (ZAMI) 2024, held under the theme “Energy Transition Minerals: Putting Communities First for Community Development,” which focused on ensuring that local communities benefit from the nation’s rich mineral resources.

The Indaba is co-hosted by the Zimbabwe Environmental Law Association (ZELA), the Zimbabwe Coalition on Debt and Development (ZIMCODD), and the Zimbabwe Council of Churches (ZCC).

In his keynote address, Bishop Makumbe, President of the ZCC, highlighted the importance of balancing economic growth with social justice and environmental responsibility. Drawing on biblical principles, he stressed the need for fairness and justice, stating that God’s desire for a just and righteous world should be reflected in human actions.

However, Bishop Makumbe expressed concern over the global energy transition, which he noted is often marked by inequality and injustice, particularly in developing nations like Zimbabwe.

“Countries with transition resources are still in the second industrial revolution, while those benefiting from the energy transition are far beyond the fifth industrial revolution,” he said. “One wonders if God is pleased with developed countries pushing developing nations to transition from fossil fuels to green energy when they have yet to satisfy their own energy needs.”

The ZCC President also called for greater accountability from mining companies operating in Zimbabwe. He criticized practices where companies prioritize profit over people and the environment.

“Mining companies lobby for tax exemptions, tax holidays, and tax relief while continuing to extract transition resources. One wonders how they intend for the country, and particularly the mining communities, to benefit from these resources. In earnest, there can be no just energy transition that disrespects property rights, evades taxes, or underreports profits,” he added.

Bishop Makumbe also emphasized the need for an energy transition that addresses the specific needs of marginalized communities, especially women and persons with disabilities. He urged a balance between economic development and social justice, ensuring that the benefits of resource extraction are shared equitably.

The ZCC’s stance aligns with the growing global movement for a just energy transition, which seeks to ensure that the shift to clean energy is fair and inclusive. By advocating for the rights of mining communities and promoting sustainable development, the ZCC is playing a crucial role in shaping Zimbabwe’s energy future.

GSZ Lobbying Government to Issue More Exploration Licenses as Mineral Resources Deplete

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GSZ Lobbying Government to Issue More Exploration Licenses as Mineral Resources Deplete

The Geological Society of Zimbabwe (GSZ) is urging the government to issue more exploration licenses due to the rapid depletion of the country’s mineral resources, as reported by Mining Zimbabwe.

By Ryan Chigoche

Zimbabwe’s mineral sector remains largely under-explored, hindered by a lack of modern technology necessary for thorough exploration and the creation of a comprehensive resource database. The country is believed to host deposits of around 40 different minerals, including lithium, chrome, nickel, platinum, gold, diamonds, iron ore, and coal.

Recently, Zimbabwe has witnessed a surge in mining sector investment, particularly following the adoption of the “Zimbabwe is open for business” mantra, which has led to increased resource extraction.

Significant exploration activities have been sporadic over the years and were often impeded by economic challenges and regulatory issues, despite the country’s vast potential.

With Zimbabwe lagging in the use of modern exploration technologies that are proving effective in other regions, GSZ Chair Ernest Mgandani emphasized the need for new exploration licenses to allow for the discovery of new mines, as current resources are depleting rapidly. He also highlighted the lengthy timelines required for exploration projects to transition into operational mines.

“The current mineral resources at operating medium to large-scale mines are depleting at a fast rate. If exploration licenses are not continuously issued, it will be difficult to replace old mines with new ones in the future, given the long time required for exploration projects to transition into successful operations. The Geological Society of Zimbabwe is lobbying the government to issue more exploration licenses so companies can deploy emerging exploration technologies and make mineral discoveries for a better future for all Zimbabweans,” said Mgandani.

As known resources are depleted due to overexploitation, there is a pressing need for further exploration to identify and develop untapped mineral deposits.

Enhanced exploration efforts could revitalize the mining industry, contributing to economic growth, job creation, and sustainable resource management. Investing in geological surveys and advanced mining technologies could unveil new opportunities and ensure the sector’s long-term viability.

This topic will be at the forefront of the upcoming GSZ Summer Symposium, scheduled for November 1st. The Summer Symposium is a flagship annual event where the society aims to promote the science and practice of geology and the advancement of Earth Sciences, in line with its constitutional mandate.

With a focus on geological exploration, the society intends for the Summer Symposium to share knowledge and experiences regarding various mineral resources (e.g., groundwater) and explore the best methods for locating these resources.

Gold buying prices per gram in Zimbabwe 29 October 2024

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Gold buying prices per gram in Zimbabwe 29 October 2024

These are the official gold buying prices per gram in Zimbabwe today 29 October 2024, from the official gold buyer and exporter Fidelity Gold Refinery (FGR).

SG 90% and ABOVE US$83.30/g
SG ABOVE 85% BUT BELOW 90% US$82.42g
SG ABOVE 80% BUT BELOW 85% US$81.53/g
SG ABOVE 75% BUT BELOW 80% US$80.65/g
SAMPLE BELOW 10g BUT ABOVE 5g US$79.33/g

Fire Assay CASH $83.74/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 world market prices.

ASM Ventilation Challenges to be Discussed at Mine Ventilation AGM

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ASM Ventilation Challenges to be Discussed at Mine Ventilation AGM

The upcoming Mine Ventilation Society of Zimbabwe (MVSZ) Annual General Meeting (AGM) and Symposium 2024 will address the critical issue of ventilation challenges, particularly in the Artisanal and Small-scale Mining (ASM) sector.

By Rudairo Mapuranga

The event, themed “Ventilation Engineering Solutions for Solid Safety Performance,” will take place from October 31 to November 1, 2024.

Speaking to Mining Zimbabwe, MVSZ Chairman Joshua Tigere identified gassing as the greatest ventilation challenge facing Zimbabwe’s mining industry.

He stated that this issue has been particularly problematic for artisanal and small-scale miners, who often lack knowledge about the sources, properties, and effects of dangerous gases encountered during mining. Without a proper understanding of these gases, miners are unable to manage the risks effectively, leaving them vulnerable to fatal incidents.

Tigere emphasized that the lack of knowledge about gases and their occurrence in mining environments poses a serious safety hazard. Many small-scale miners are unaware of the dangers lurking underground, which increases the likelihood of fatal accidents.

“The greatest challenge facing ventilation engineering in Zimbabwe is the loss of life due to gassing in the small-scale mining sector,” he stated.

To address this issue, Tigere announced that the MVSZ, in collaboration with the Ministry of Mines and Mineral Development, will conduct workshops across the country aimed at raising awareness among small-scale miners. These workshops will equip miners with the knowledge necessary to identify, manage, and mitigate the risks associated with gas exposure during mining operations. This initiative forms a crucial part of the MVSZ’s broader strategy to improve safety and reduce fatalities in the mining sector.

Additionally, Tigere cited the lack of monitoring equipment in small-scale mines as another major challenge. Many mines are unable to acquire the necessary tools to test for airflow and gas concentrations after blasting. This results in miners re-entering sites without verifying environmental safety, significantly increasing the risk of accidents. The symposium will offer solutions and insights into affordable ventilation monitoring technologies that can help these smaller operations improve safety.

The upcoming MVSZ AGM and Symposium will play a pivotal role in addressing these critical challenges. Through presentations, exhibitions, and interactive discussions, the event will provide a platform for mining professionals to share innovations in ventilation engineering and safety practices that could transform Zimbabwe’s mining industry for the better.

The Future of ZiG: RBZ Quells Concerns Over Legal Status

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The Future of ZiG: RBZ Quells Concerns Over Legal Status

The Reserve Bank of Zimbabwe (RBZ) has issued a public notice to clarify the legal status of the Zimbabwe Gold (ZiG) currency, addressing concerns raised by prominent lawyer Thabani Mpofu, Mining Zimbabwe reports.

By Rudairo Mapuranga

Mpofu had claimed that the ZiG currency had ceased to be legal tender following the expiration of the statutory instrument that introduced it. However, the RBZ maintains that the ZiG remains a valid form of currency.

In a statement, the RBZ emphasized that the lapse of the Presidential Powers (Temporary Measures) that established the currency does not create a legal gap.

The central bank asserts that currency reform measures, once implemented, do not automatically expire and require a specific legal instrument to be revoked.

According to the RBZ, the recent Finance Act, which was gazetted into law, aims to consolidate the legal framework for the ZiG currency.

The RBZ clarified that the Act does not merely validate the previous statutory instrument but instead reinforces the continued validity of the ZiG.

The central bank affirmed its commitment to strengthening the use and stability of the ZiG currency, reassuring the public that it remains legal tender in Zimbabwe.

Mining Zimbabwe advises the public to stay updated on official announcements from the Reserve Bank of Zimbabwe and other relevant authorities, as the situation continues to evolve.

Zimbabwe to Participate in Global Mine Rescue Competitions

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Zimbabwe to Participate in Global Mine Rescue Competitions

Zimbabwe is set to participate in the upcoming International Mine Rescue (IMR) Global Competitions, hosted by Zambia in 2026, Mining Zimbabwe reports.

By Ryan Chigoche

The announcement was made by the Chamber of Mines of Zimbabwe (CoMZ) at the recently concluded local Mine Rescue competitions, which were dominated by the host, Zimplats.

The International Mine Rescue (IMR) competition will feature over 20 participating countries, including the United States, Russia, and Colombia. These competitions are designed to enhance the skills and knowledge of team members who would respond to a mine emergency. Contestants are required to solve a hypothetical problem under timed conditions, observed by judges according to complex rules.

David Matyanga, Mining Affairs Manager at the Chamber of Mines, emphasized the importance of the competition for the country’s representatives and urged industry stakeholders to support the teams attending this global event.

“It is our wish as the Chamber of Mines to participate in the games so that we can benchmark ourselves against global industry players. The Mine Rescue Association of Zimbabwe has already taken that on board, and the winners of this year’s local competition will be eligible to participate next year. We need the support of the Ministry, teams, and sponsors to ensure that the load is shared and that it’s lighter for the participating teams,” Matyanga said.

This year’s local competition, which concluded on Friday, saw Zimplats emerge as the winner across all categories.

Mine rescue competitions date back to the early 20th century, emerging from the growing awareness of mining hazards. Organized competitions began as a response to the need for enhanced safety measures in mining operations. In Zimbabwe, the Mine Rescue Association was established in the 1970s to coordinate rescue efforts and training nationwide. The association conducts regular training and drills to prepare teams for emergencies, equipping them with the necessary skills and knowledge.

Typically, competitions involve simulated rescue scenarios where teams demonstrate their skills in a controlled environment. Participants are evaluated on various criteria, including problem-solving abilities, adherence to safety protocols, and overall performance during rescue operations. As the mining industry evolves, so do the challenges it faces. Modern mine rescue competitions reflect these changes, incorporating new technologies and techniques to address contemporary mining hazards.

Mine rescue competitions play a crucial role in enhancing safety and preparedness within the mining industry. These events sharpen rescue teams’ skills, allowing participants to practice essential techniques and learn effective responses to emergencies. This training is vital, as it can save lives during actual incidents. Additionally, competitions provide a platform for teams to benchmark their skills against national and international standards, raising the overall level of competency in the industry.

An emphasis on teamwork and coordination is another significant aspect of these competitions. Successful rescue operations rely heavily on effective collaboration and communication among team members.

The Mine Rescue Association of Zimbabwe has been operating since around 1973 and is tasked with coordinating mine rescue efforts across the country. Its activities are managed by the Mine Rescue Working Party, consisting of a chairman appointed by the Association of Mine Managers of Zimbabwe (AMMZ), zone coordinators, nationally trained personnel, a national coordinator, a representative from the Chamber of Mines, and a committee member.

The association is organized into four distinct zones. The North Zone includes Zimplats Mining, Freda Rebecca and Redwing Mine. The South Zone includes Unki, Renco Mine and Mimosa Mine. Finally, the West Zone consists of Blanket Mine, Hwange Colliery, and How Mine. This structured approach ensures effective coordination and response across various mining operations in the country.

Fresh air teams include Zimplats SMC, Shamva, Blanket Mine and Jena Mine.

From Riverbanks to Refineries to the Big Apple: The Golden Journey of Blessing Hungwe Nharara

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From Riverbanks to Refineries to the Big Apple: The Golden Journey of Blessing Hungwe Nharara

Blessing Hungwe Nharara’s eyes sparkle as she recalls childhood trips to the river with her grandmother—not for a picnic, but to mine for gold! She remembers watching her grandmother expertly sift through the water with a winnowing dish, the glimmer of gold a promise of adventure.

“That’s when I fell in love with gold mining,” she recalls.

Fast forward to today, and Blessing is no longer a curious observer. Now, she is a powerhouse in the industry, a small-scale miner, and this week, she addressed a United Nations General Assembly event on Accelerating Women’s Entrepreneurship Development in Africa.

“My contribution to this big conversation was rooted in my experience as an artisanal and small-scale miner, and in my leadership role assisting women miners to organize and ensure policymakers cannot ignore their concerns,” she says.

“We are where we are because of the support from the government and the large-scale miners who have given us some of their idle claims for us small-scale miners to work on.”

Her presentation in New York focused on five key pillars meant to support women miners in Africa.

“Ownership and control of natural resources, particularly land and minerals. This is an area dominated by corporate and patriarchal power,” she says.

“There is, however, a silver lining in Zimbabwe, as large-scale mines are tributing mining claims to promote artisanal and small-scale mining.”

Human Capital

She is supported by her son Engineer Panashe Muguza, a recently qualified Mining Engineer. She notes that his skills could help address the double challenge of formalizing ASM (Artisanal and Small-Scale Mining) through technical expertise and tackling the high unemployment rate among skilled youth. His presence has also boosted productivity at her mine.

“If it’s not about networking, then it’s not working. Women need spaces to network, learn, and share experiences about entrepreneurship.”

“Mining doesn’t scare me,” she says with a grin.

“When I’m on the job, it’s like a second home. This mindset should inspire solutions to the challenges of formalizing ASM and high youth unemployment among skilled workers.”

She cited the Delve Exchange platform—”by miners, for miners”—as an example of bridging this gap.

“Alone, one can go fast, but together, we can go far,” she says, borrowing from the wisdom of African elders.

Her passion wasn’t born solely by the riverbank. Visits to her gold-mining uncles in Kwekwe during high school fueled the fire. “Some classmates even lent me money because I always had a bit extra,” she chuckles. Blessing’s hustle started young!

But her journey extends beyond personal success. Now a champion for women in mining, she’s a patron of the Zimbabwe Association of Women in Mining Associations and a former Secretary General of SADC Women in Mining. She is the Regional Knowledge Exchange Coordinator for Anglophone Africa for the World Bank’s Delve Exchange program.

Blessing’s story is more than just about gold. It’s about a young girl captivated by the glint of possibility, a woman who carved her path in a male-dominated industry, and a leader empowering others to do the same.

Financial Control

She says although some small-scale miners do strike it rich, the lack of financial control has been detrimental to the sector.

“It’s common for gold miners to hit a jackpot. However, many times, the funds are squandered on luxury cars and drinks,” she says.

“The money should be reinvested to enhance mechanization and diversification beyond mining. Financial literacy is essential.”

Technology

She adds that access to technology is crucial in supporting women. “Through the Zimbabwe Association of Women in Mining Associations (ZAWIMA), we piloted the rehabilitation and repurposing of land into an avocado orchard,” she says.

“Thanks to Global Green Fund’s support, and a big thank you to the Ministry of Women’s Affairs and UNDP for making it possible for me to attend this wonderful event.”

Blow for Miners as Tax Holidays May Soon Be Over

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Blow for Miners as Tax Holidays May Soon Be Over

The mining industry may suffer a major setback as the Treasury considers removing tax incentives for mining companies, asserting that current measures are overly generous given the sector’s profitability.

By Ryan Chigoche

This development comes at a time when mining companies are pessimistic about profitability in 2025, citing an anticipated high-cost structure and weak commodity price outlook. This has led miners to call for a review of the tax environment. Earlier in the year, the Chamber of Mines of Zimbabwe sought temporary tax relief and lower electricity tariffs due to declining global prices impacting the sector, particularly for lithium and Platinum Group Metals (PGM) producers.

The government’s decision follows pressure from civil society organizations, which have long argued that tax incentives primarily benefit mining companies at the expense of the communities where they extract resources. Over the years, the government has offered these incentives to attract foreign investment in the mining sector. However, in a recent interview at the Employers’ Confederation of Zimbabwe annual congress, Deputy Minister of Finance David Mnangagwa confirmed that the government is reassessing these incentives, noting that current tax holidays are overly generous as mining companies are excessively profitable.

According to the recent Chamber of Mines Zimbabwe State of Mining Industry Survey Report, miners have urged the government to review the tax regime, expressing concern over high royalties for platinum and diamonds, as well as export taxes on PGMs and lithium concentrates, which they claim increase production costs and impact project viability. Over 90% of industry executives reported that miners are currently overtaxed, with the effective tax rate for the industry at 69%, the highest in the region. The survey indicated that this level of taxation is unsustainable, diverting capital intended for reinvestment in new projects.

The report also anticipated this policy shift, as mining executives expressed concerns that the fiscal framework will worsen in 2025, predicting further profit declines.

“Ninety percent of mining executives indicated that the fiscal framework for the industry is suboptimal, citing the multiplicity of taxes, high royalties, beneficiation taxes, retrospective special capital gains tax, and elevated mining fees and levies. They also expect the fiscal framework to worsen in 2025, highlighting increased stakeholder pressure on the perceived contribution of mining to the economy,” the report noted.

With Zimbabwe’s potential as a leading lithium producer and the second-largest platinum producer after South Africa, Mnangagwa stated that despite a recent downturn in platinum and lithium prices, trends show mining companies do not require tax holidays to invest. He acknowledged the need for better revenue distribution from the extractive industry, emphasizing the importance of preparing for economic shifts as platinum resources gradually deplete and the need for foresight in budgeting and developing subsidiary industries.

In Zimbabwe, many mining companies benefit from these substantial tax incentives, which can significantly enhance their profitability. However, this often leaves local communities with little to show for the resources extracted from their lands. While miners enjoy lower taxes, the funds available for public services and infrastructure in these areas are reduced, leading to underinvestment in essential services like healthcare and education. Consequently, there is a growing call for a fairer distribution of mining revenues to ensure that communities benefit from the resources extracted from their regions.

Despite the mining industry’s crucial role in the economy, the sector is projected to see mineral revenue rise by about 2% in 2024 and by 10% to reach $6 billion by 2025, driven by increased output and recovering commodity prices.

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