Mining ZimbabweLatest Mining News, Policy and Industry Updates

The Zimbabwe Diamond and Allied Minerals Workers Union (ZDAMWU) has issued a scathing statement condemning the deteriorating labour conditions across the country’s diamond sector, as companies reel from falling global prices, unpaid wages, mass retrenchments, and growing unrest among mine workers, Mining Zimbabwe can report.

By Rudairo Mapuranga

With Zimbabwe’s rough diamonds reportedly selling for as little as US$30 per carat—a stark contrast to past highs—the entire industry is under pressure. The price collapse has led to sharp revenue losses, triggering a fresh wave of instability in the country’s diamond-producing regions.

In a press statement released on July 9, 2025, ZDAMWU General Secretary Justice Chinhema described the situation as a “triple threat” comprising plummeting productivity, rampant illicit trade, and a devastating labour crisis. He warned that the industry is “on the brink of collapse” if urgent reforms and protections are not implemented.

“Our members, hardworking mine workers in the diamond sector, are suffering amid a wave of layoffs, unpaid wages, and deteriorating labour standards at the country’s three diamond mining companies—ZCDC, Anjin Investments, and Murowa Diamonds,” Chinhema said.

ZCDC Retrenchments: Hundreds Face Job Loss Without Compensation

At Zimbabwe Consolidated Diamond Company (ZCDC), the union revealed that up to 600 workers are being laid off, with 295 already retrenched. Shockingly, those retrenched through the so-called “voluntary” process have not received their packages. The company has reportedly initiated compulsory retrenchments, which the union says violates the principles of fair labour practice and social protection.

“We condemn any forced or unfair retrenchment processes that violate workers’ rights and dignity,” ZDAMWU stated, urging ZCDC to halt the downsizing and engage workers in transparent and humane restructuring processes.

Anjin and Murowa: Sit-Ins and Protests Over Unpaid Salaries

At Anjin Investments, workers recently staged a protest demanding four months of unpaid salaries, while Murowa Diamonds workers are currently holding a sit-in over five months of unpaid wages. In both cases, the companies have reportedly failed to communicate adequately with employees or resolve long-standing salary disputes.

“These acts of negligence toward Zimbabwean workers are a gross betrayal of trust. Workers are producing wealth they never get to benefit from,” said a ZDAMWU representative on condition of anonymity.

Diamond Sector in Crisis as Global Prices Tank

The crisis is further compounded by weak global demand for rough diamonds and oversupply in international markets. Zimbabwe’s diamonds are now fetching as low as US$30 per carat—a figure industry observers say is unsustainable and undermines both profitability and viability for mining companies.

This has raised concerns that companies are using low prices as a justification to neglect labour obligations, while failing to introduce value addition, beneficiation, or domestic auctions to stabilise returns.

“We can’t allow the so-called price crash to become an excuse for abuse. These companies must honour their commitments to workers and explore real beneficiation to protect jobs,” said Chinhema.

ZDAMWU Demands Immediate Government Intervention

The union is now calling on the Government of Zimbabwe to intervene decisively. ZDAMWU has outlined the following key demands:

• Immediate payment of all outstanding wages across ZCDC, Anjin, and Murowa

• A halt to the forced retrenchments at ZCDC

• Transparent dialogue and restructuring processes with worker participation

• Long-term reforms to encourage value addition, protect jobs, and end reliance on raw diamond exports

Central banks around the world are expected to continue increasing their gold reserves, extending a trend that has already seen record levels of bullion buying over the past three years.

By Ryan Chigoche

According to the World Gold Council’s (WGC) latest Central Bank Gold Survey, 95% of the 73 central banks that participated believe global gold reserves will grow over the next 12 months.

Notably, 43% said they expect their own holdings to increase — the highest proportion recorded since the survey began and up significantly from 29% in 2024.

Last year marked the third-largest annual increase in central bank gold reserves on record, with net purchases reaching 1,129.8 tonnes.

That figure was just 6.2 tonnes below 2023 levels and only 91 tonnes short of the all-time high of 1,136 tonnes set in 2022 — the largest annual total since at least 1950.

To put that in context, central bank gold purchases averaged just 473 tonnes annually between 2010 and 2021.

The current buying streak has now extended into its 16th consecutive year.

The WGC noted that the rise in survey participation is not merely statistical but “a powerful signal of engagement with gold amongst the central banking community.” Seventy-six percent of respondents said they expect gold to hold a moderately or significantly higher share of total reserves over the next five years, up from 69% in last year’s survey.

“Expectations point to continued gold buying over the next 12 months, reflecting sustained confidence in gold’s strategic role amid evolving geopolitical and macroeconomic dynamics,” the WGC stated.

Declining Role of the Dollar

While gold’s share of global reserves has been rising, the U.S. dollar’s role has been slipping.

IMF data shows the dollar accounted for 57.8% of global reserves at the end of 2024 — its lowest level since 1994 and a 7.3 percentage point decline over the past decade. In 2002, the dollar made up roughly 72% of reserves.

WGC survey data suggests this trend is likely to continue. About 73% of central banks said they expect their dollar reserves to fall further over the next five years. The euro’s share of global reserves has remained relatively steady, meaning that gold — rather than the euro — has taken up the space left by the dollar’s decline.

Analysts have pointed to concerns about sanctions and the politicisation of major reserve currencies as reasons for the shift. As CNBC noted, gold is increasingly attractive to countries looking to shield themselves from the potential erosion of traditional monetary systems.

Why Gold?

The WGC survey found that interest rates are the most important factor influencing reserve management decisions. Inflation was cited as the second most important. Among emerging markets and developing economies (EMDEs), inflation and geopolitical risks were tied as the top reasons for buying gold, each cited by 84% of respondents.

When asked to rank the relevance of various factors in their gold allocation decisions, central banks pointed to gold’s historical performance during crises and its function as an inflation hedge as the most compelling attributes.

As the WGC concluded, “Gold’s safety, liquidity and return characteristics — the three key investment objectives for central banks — have risen in importance.” The Council added that demand for gold is expected to “remain healthy for the foreseeable future” as diversification and risk management become central to reserve policy.

Nickel has surpassed lithium as the most valuable battery metal used in electric vehicles (EVs) so far this year, according to a new report by Toronto-based research firm Adamas Intelligence.

By Ryan Chigoche

This shift comes despite falling prices across the battery metals sector and growing adoption of nickel-free battery chemistries.

Much like cobalt and lithium, nickel has endured extreme price volatility since the EV boom sent demand projections sky-high. A memorable peak occurred in March 2022, when a short squeeze involving Elliott Management’s Paul Singer and Tsingshan’s Xiang Guangda drove prices above $100,000 per tonne within minutes.

The incident triggered over $12 billion in cancelled trades, legal disputes, and a major rethink of the London Metal Exchange’s rules—but its market impact was short-lived.

Nickel sulphate prices, used in EV battery cathodes, briefly soared above $30,000 per tonne (100% Ni basis) but have steadily declined since, averaging around $17,000 in the second quarter of 2025.

Lithium’s fall has been even steeper. After peaking above $80,000 per tonne in late 2022, prices collapsed to $8,450 by June this year—a nearly 90% drop in under three years.

Yet despite these price corrections, nickel has taken the lead in deployed value in EVs. Between January and May 2025, global EV sales consumed $2.2 billion worth of nickel, edging out lithium’s $2.15 billion, according to the Adamas Intelligence data.

This trend highlights the continuing importance of nickel-rich chemistries in EV battery design, particularly for high-performance and long-range vehicles.

This comes even as nickel-free alternatives like lithium iron phosphate (LFP) gain traction. LFP batteries now represent nearly half of all EV battery capacity deployed this year, a dramatic rise from less than 1% at the start of the decade.

In Zimbabwe, the nickel landscape reflects broader global challenges. The country’s largest nickel producer, Bindura Nickel Corporation (BNC), remains shut due to ongoing operational and financial difficulties.

As a result, national output is now primarily derived from PGM operations run by major players such as Zimplats, Mimosa Mining Company, and Unki Mine, where nickel is recovered as a byproduct.

Despite the price slump and supply shifts, nickel continues to hold its ground as a critical material in the energy transition—remaining a key target for investors and battery manufacturers alike.

Kavango Resources is positioning the historic Nara gold mine for a major comeback, with early observations suggesting the potential to process high-grade ore ranging between 5 and 20 grams per tonne (g/t). This became clear during the new General Manager Everjoy Ngomatiti’s recent tour of the mine, which brought senior management face-to-face with both the site’s promise and its challenges.

By Ryan Chigoche

During the tour of the Killarney shaft — a key part of the Nara project — Kavango executives outlined their technical vision for reviving the mine, located within Zimbabwe’s historically rich Filabusi greenstone belt. The shaft, once mined down to the seventh level, is now flooded from levels five through seven. However, its historical production of approximately 20,000 ounces between 1938 and 1959 offers a solid foundation for redevelopment.

“Looking at the history of this mine as well, they mined about 20,000 ounces between 1938 and 1959. And we also don’t have the other data, but from the look of things, we’re talking of grades ranging between five grams per tonne to 20 grams per tonne, with the reef, which is like 20 centimeters to up to 1.5 meters wide. So there’s lots of potential. I believe there’s potential. Of course, we still need to come in and do the drilling, get more geological data, but there’s lots of potential here,” Ngomatiti said.

This would be a significant achievement, especially considering that one of the country’s biggest miners, Freda Rebecca, currently processes ore with a grade of around 1.55 grams per tonne.

Kavango believes the Nara project area may host up to four kilometres of gold-bearing strike. Identifying and proving up the first mineable resource along this corridor is now a priority.

“So, looking at the entire project area, we believe we have up to four kilometers of strike stretching from the west of the ground to the east behind us. So one of the key objectives that Everjoy and I have been looking at for the first time today is how we can build up our first mineable resource to deploy our exploration team here with that specific objective in mind,” Kavango CEO Ben Turney added.

The recent site visit marked the first time that Kavango’s new General Manager, Everjoy Ngomatiti, toured the mine since assuming office just a fortnight ago. CEO Ben Turney personally accompanied him on the ground inspection of the historic Killarney shaft. Despite the flooding challenges, the company sees significant underground development opportunities. Preliminary drill tests have been completed, with results expected soon.

With Everjoy at the helm, Kavango’s underground development plan involves a phased rollout using spiral declines, requiring approximately 400 metres of strike length per section. The company intends to define, model, and control an initial 400-metre block before opening a portal, then proceed incrementally in similar-sized segments.

Reflecting on the aging infrastructure and the way forward, Kavango’s General Manager Everjoy Ngomatiti outlined the company’s focus on three key pillars: modernization, productivity, and efficiency.

He explained that improving efficiency will require modernizing the existing headgear to a larger, more productive, and more efficient design. Additionally, Ngomatiti noted that the current processing facilities rely on outdated milling techniques, and Kavango plans to replace these with more advanced carbon-in-pulp (CIP) and carbon-in-leach (CIL) plants to enhance processing performance.

He also highlighted the site’s strong gold potential, drawing from both its historical production records and recent geological assessments.

Kavango recently secured financial backing from Purebond to support the development of Nara. The site now joins the company’s growing Zimbabwean portfolio, which also includes the Hillside gold project. However, Nara is being described internally as a flagship asset due to its scale and near-term potential.

“This is the biggest project in Kavango’s portfolio. Nara is much larger than Hillside. It’s taken us longer to exercise the Nara option simply because we’ve needed to do much more work here,” Turney said. “But over the coming months, we’ll be putting out a series of announcements, providing the market and our shareholders with the data that we’ve gathered and the interpretation. We’re really excited to be here now today. It’s excellent that Purebond has given us the finances to be able to exercise this option. And with Everjoy now on the team, working with the rest of our people that we’ve recruited, we really can’t wait to get stuck into this project,” Turney said.