Mining ZimbabweLatest Mining News, Policy and Industry Updates

In Zimbabwe’s mining sector, there is a crucial opportunity for companies to reduce their reliance on imported goods by strengthening the local supply chain. While Zimbabwe excels in extracting valuable resources such as gold, platinum, chrome, diamonds, and lithium, mining operations still depend heavily on imported specialized equipment, chemicals, and other components required for extraction and processing.

By Ryan Chigoche

By investing in local enterprises and developing the domestic value chain, mining companies can cut costs, reduce imports, and significantly boost the national economy. PGM miners, such as Zimplats and Mimosa, have already set a strong example, demonstrating that supporting local suppliers doesn’t just benefit the mining companies themselves; it also drives broader economic growth.

However, the Local Enterprise Development (LED) programs these companies have implemented are not as pronounced in other key sectors, such as lithium and gold, where similar investments in local supply chains could have a profound impact on Zimbabwe’s economy.

The PGM Sector Leading the Way

The PGM sector, particularly through companies like Zimplats and Mimosa, has shown how mining companies can significantly reduce import dependency by investing millions into the local economy.

Zimplats, for instance, has invested nearly US$460 million into local businesses through its LED program since its launch. This program supports a network of 23 local SMEs, which supply vital goods and services ranging from engineering to catering, medical supplies, and protective clothing.

This initiative has led to the creation of over 2,600 jobs, benefiting local communities and reducing the need for imports.

In FY2024, Zimplats spent US$357 million locally, accounting for 51% of its total procurement spending. Even with a 19% reduction in LED spending due to global price volatility, the company remains committed to fostering local suppliers, ensuring that they meet international standards, and can contribute to the mining sector’s growing demand for quality services and products. Zimplats’ commitment to its LED program demonstrates the significant potential for the mining sector to not only reduce imports but also contribute meaningfully to the growth of Zimbabwe’s domestic industries.

Mimosa Mine has followed in Zimplats’ footsteps with its own LED Program and Supplier Support Program, which provide crucial financial support to local suppliers, helping them improve operations, create jobs, and maintain a resilient supply chain.

Mimosa’s LED program offers funding of up to US$2 million per participant, backed by a US$5 million internal revolving fund and US$15 million in bank facilities, demonstrating a similar commitment to fostering local enterprise growth. To date, Mimosa has advanced US$6.3 million to local suppliers, further solidifying the impact of these programs.

A Call to Action for Other Sectors

While the PGM sector has made significant strides, the same cannot be said for other sectors such as lithium and gold, where the development of local supply chains and LED programs remains underdeveloped.

The lithium sector, which has seen a surge in global demand, is yet to replicate the PGM sector’s commitment to investing in local suppliers and businesses. This sector’s potential for growth within Zimbabwe could be far more substantial if similar LED programs were implemented to develop a self-sustaining, resilient local supply chain.

The gold sector, too, remains relatively untapped in terms of structured support for local suppliers. If mining companies within this sector invested even a fraction of what Zimplats and Mimosa have into Local Enterprise Development, the impact on the Zimbabwean economy could be transformative.

Imagine if the entire mining sector — PGMs, lithium, gold, and beyond — emulated the efforts of Zimplats and Mimosa. The results would be truly revolutionary. Local suppliers could create thousands of additional jobs, bolster the manufacturing sector, reduce Zimbabwe’s reliance on imported goods, and increase the country’s foreign currency reserves.

The cumulative effect of such initiatives would lead to a stronger, more diversified economy and could catalyze the development of other industries beyond mining, such as agriculture, construction, and manufacturing.

The Economic Potential

By adopting these practices across the entire mining industry, Zimbabwe could significantly increase its industrial capacity, contributing to economic diversification, the growth of SMEs, and a more self-sufficient economy. The benefits would be twofold: mining companies would reduce their import costs, while Zimbabwe’s domestic industries would thrive.

The examples set by Zimplats and Mimosa show that mining companies in Zimbabwe have the potential to drive significant change by investing in local enterprises. If the rest of the mining sector, including lithium and gold, follows this path, the country’s economy could experience transformative growth, helping Zimbabwe move towards sustainable development while addressing the challenge of import dependency.

In a near-tragic incident last week, two illegal miners narrowly escaped death at Mazowe’s Lonhro site, a location notorious for unregulated mining activities.

The miners were working underground at the infamous Jumbo Mine when a collapse nearly buried them, caused by dangerous mining practices happening directly above them, Mining Zimbabwe can report.

By Rudairo Mapuranga

The individual allegedly responsible for the collapse, known as “Skiri” (not his real name), is reportedly engaged in illegal mining operations at Mazowe Gold Fields Lonhro site. Sources claim that “Skiri” is conducting unregulated mining while collecting undeclared ores and gold, with allegations that he may have close ties with some of the mine’s management. This has allowed him to operate unchecked, despite the dangerous conditions his activities create for others working in the area.

The incident occurred when “Skiri” began opening an open pit above the site where the two miners were working underground, resulting in the collapse. Fortunately, the miners managed to escape with their lives, but the near-miss has intensified concerns over the safety of the Mazowe mine and its growing reputation for deadly accidents.

Mazowe’s Lonhro site has been marred by a string of fatal incidents. Just over the Christmas period, a miner tragically lost his life on Christmas Eve. In early January, three more miners reportedly died following another accident at the same site. These deaths have raised alarms, as many believe that the site, under its current state of operation, is responsible for a significant number of fatalities every year.

The hazardous conditions at Mazowe are largely driven by illegal mining activities, which persist due to a lack of regulation and enforcement. The allure of gold and the economic hardships facing many Zimbabweans push miners into dangerous and unregulated environments, where the risks of fatal accidents are high. These dangers are further compounded by the activities of operators like “Skiri,” who continue to mine recklessly with little regard for safety protocols.

With fatalities mounting, authorities are being called upon to take urgent action to address the ongoing illegal mining operations at Mazowe. The continued loss of life has become a serious concern, with many urging tighter enforcement of mining regulations, improved safety standards, and greater accountability from mine management.

As Zimbabwe pushes to formalize its mining sector, the situation at Mazowe highlights the urgent need for stronger oversight and regulation to prevent further tragedies. Without swift intervention, more lives will be at risk in Mazowe, making it one of the most dangerous mining sites in the country.

The near-fatal accident last week is a stark reminder of the perilous conditions that persist at Mazowe, as miners continue to work in unsafe and unregulated environments in their pursuit of gold. If action is not taken soon, Mazowe risks becoming the site of even more devastating accidents in the near future.