Mining ZimbabweLatest Mining News, Policy and Industry Updates

President Emmerson Mnangagwa has called on private-sector investors to accelerate investment in mineral beneficiation, battery materials and manufacturing, as Zimbabwe seeks to retain more value from its mineral resources and strengthen its position in regional industrial supply chains, Mining Zimbabwe can report.

By Rudairo Mapuranga

Officially opening the 19th COMESA Business Forum in Harare on Tuesday, Mnangagwa said increased investment in critical minerals, energy, industrialisation and human capital was essential to expanding productive capacity and deepening regional economic integration.

“The need for increased investments in agriculture, critical minerals, energy resources, industrialisation and human capital development cannot be over-emphasised,” he said.

For Zimbabwe’s mining sector, the call reinforces the Government’s policy direction towards processing minerals locally rather than relying predominantly on exports of raw materials. The President specifically cited the restrictions introduced in December 2022 on exports of unbeneficiated lithium-bearing ore as part of efforts to accelerate industrialisation and retain value within the country.

“This was done in alignment with our determination to accelerate industrialisation and retain value at source,” Mnangagwa said.

He urged private-sector players to move beyond commodity exports and invest in value addition, beneficiation and manufacturing, identifying battery materials and clean-energy technologies as areas with potential to support new industrial activity.

The emphasis comes as mineral-producing countries across Africa seek to capture a greater share of the value generated between extraction and the manufacture of finished products. For Zimbabwe, this presents opportunities to expand domestic mineral processing and develop downstream industries, although the scale of investment required will depend on commercially viable projects, infrastructure and access to markets.

Regional partnerships key to beneficiation

Mnangagwa said mineral and industrial investments should not be developed as isolated national projects, arguing that stronger cross-border partnerships could help countries build interconnected production and supply chains.

“We remain committed to mutually beneficial partnerships that expand production, trade and investment across our region,” he said.

The approach places regional cooperation at the centre of efforts to develop mineral value chains, particularly in sectors requiring substantial investment, specialised technology and access to wider markets.

Through the Common Market for Eastern and Southern Africa (COMESA), Zimbabwe and other member states have an established framework for strengthening trade and investment links. The President called for greater productive capacity, the removal of tariff and non-tariff barriers, and harmonised trade procedures, while urging businesses to take advantage of opportunities under the African Continental Free Trade Area.

For mining companies and prospective investors, more efficient regional trade arrangements could support the movement of processing equipment, industrial inputs and mineral products across borders. However, turning these opportunities into operating businesses will require investment in processing capacity and the infrastructure needed to sustain competitive production.

Investment conditions remain critical

While Zimbabwe’s beneficiation policy seeks to encourage investment in domestic processing, the development of competitive mineral value chains also depends on reliable and affordable electricity, access to capital, suitable technology and stable operating conditions.

These factors are particularly important for energy-intensive mineral processing and manufacturing, where production costs can determine whether projects remain commercially viable.

Regional partnerships could help expand access to markets, technology and financing, but the call for beneficiation will ultimately need to translate into investments that can operate competitively and sustain production.

Mnangagwa also highlighted the need to improve transport corridors and trade facilitation, citing the modernisation of Beitbridge Border Post and the upgrading of the Chirundu One-Stop Border Post as efforts to improve the movement of goods across borders.

He said borders should function as gateways to markets rather than bottlenecks to trade, a consideration for mining companies that depend on cross-border supply chains and the movement of mineral products.

Zimbabwe is hosting the forum under the theme, “One Market, One Future: Advancing Inclusive Industrialisation, Investment and Regional Integration in COMESA.” The business gathering precedes the 25th COMESA Summit of Heads of State and Government.

For Zimbabwe’s mining industry, the central challenge is converting the region’s mineral endowment into competitive processing and manufacturing capacity, supported by investment, infrastructure and access to regional markets.

Deputy Chief Government Mining Engineer Tapererwa Paswavaviri has been named Guest of Honour at the Zimbabwe National Institute of Rock Engineering (ZINIRE)‘s 13th Annual General Meeting (AGM) and Annual Symposium, placing government mining oversight at the centre of discussions on technology-driven fall-of-ground management.

The event is scheduled for 22–24 October 2026 at Victoria Falls Safari Lodge, Mining Zimbabwe can report.

By Rudairo Mapuranga

The symposium will run under the theme, “Leveraging Technology for Next Generation Fall of Ground Management,” as mining professionals seek improved approaches to identifying ground hazards, assessing rock stability and strengthening ground-support systems.

Falls of ground remain a significant hazard, particularly in underground mines, where unstable rock masses and inadequate support can lead to fatalities, damage to infrastructure and costly production disruptions.

Paswavaviri’s participation brings the government mining inspectorate into discussions on how engineering practices, technological advances and regulatory oversight can improve the management of ground-related risks across mining operations.

ZINIRE Vice President and Organising Chairman Freddy Chikwiri said the symposium would bring together professionals from different disciplines to strengthen approaches to ground-control management.

“With Eng. Paswavaviri as our Guest of Honour, we are bringing together the regulatory authority, industry leaders, and technical practitioners under one roof to ensure that safety standards are not just discussed, but actively elevated,” said Chikwiri.

The focus on technology highlights the growing role of modern tools and engineering methods in ground-hazard identification, rock-mass assessment, excavation design and ground-support decisions.

For mining companies, improvements in these areas can help protect workers and infrastructure while reducing unplanned interruptions to production. Integrating rock engineering assessments into mine planning and operational decisions is therefore essential to managing both technical risks and operating costs.

The symposium is expected to bring together rock engineers, mine surveyors, geologists, mine managers and other industry practitioners to exchange knowledge and discuss practical approaches to fall-of-ground management.

Programme and Registration

The programme begins on Thursday, 22 October 2026, with a pre-event Map3D training session and software demonstration scheduled for 1500 hours.

The main symposium is scheduled for Friday, 23 October 2026, at Victoria Falls Safari Lodge, with the event running through Saturday, 24 October 2026.

Registration costs US$150, while students can attend free of charge.

Zimbabwe’s mining sector is facing tighter restrictions on foreign participation in artisanal and small-scale operations, as the Government moves to increase indigenous ownership, strengthen regulatory oversight and direct foreign investment towards larger mining projects, Mining Zimbabwe can report.

By Rudairo Mapuranga

The measures centre on Statutory Instrument 215 of 2025, which reserves artisanal and small-scale mining exclusively for Zimbabweans, alongside a separate policy statement issued by Mines and Mining Development Minister Polite Kambamura in May 2026 outlining new conditions for participation in the small- and medium-scale gold mining sector.

The developments have significant implications for gold production, mining claims, existing foreign-backed operations and investment decisions across Zimbabwe’s small-scale mining industry.

SI 215 reserves artisanal mining for Zimbabweans

Gazetted on 11 December 2025, SI 215 of 2025 introduced the Indigenisation and Economic Empowerment (Foreign Participation in Reserved Sectors) Regulations, establishing new conditions for foreign participation in designated sectors of the economy.

Artisanal mining is listed among 13 sectors exclusively reserved for Zimbabweans. Unlike certain other reserved activities, where foreign participation is subject to minimum investment and employment thresholds, the instrument does not specify a qualifying investment threshold for artisanal mining.

The regulations also provide a transitional framework for existing foreign-owned businesses in reserved sectors, requiring regularisation plans and progressive equity divestment. The Ministry of Industry and Commerce’s published guidance sets out a three-year process under which affected businesses are required to transfer at least 75% of their equity to Zimbabwean citizens, subject to the applicable provisions and requirements.

For mining investors, the distinction between the rules governing artisanal mining and those applicable to other business activities is important when assessing existing investments and proposed new ventures.

Gold mining policy sets out production and investment thresholds

In May 2026, Kambamura issued a separate policy statement addressing participation in Zimbabwe’s small- and medium-scale gold mining sector.

The statement defines the category by reference to monthly gold production of up to 20 kilogrammes and/or capital investment of up to US$15 million. It says foreign investors participating in the category must transition to operations above the prescribed small-scale thresholds to qualify under the applicable large-scale mining framework.

The policy also set 1 January 2027 as the deadline for existing operators to regularise their operations with the Ministry of Mines and Mining Development. The proposed process includes verification of citizenship and beneficial ownership, disclosure of corporate and financing structures, and checks on production, investment and regulatory compliance.

The policy statement is distinct from SI 215, although both address foreign participation and indigenous ownership. Their interaction is particularly important for operators whose activities may fall within both the reserved-sector regulations and the mining-specific policy framework.

Investors should therefore establish how their mining titles, ownership structures, production levels and proposed operations are treated under the applicable requirements rather than assume that meeting a production or investment threshold automatically resolves every compliance obligation.

Mining claims and operating performance under scrutiny

Kambamura’s policy statement also places emphasis on the use of existing mining assets and the performance of operators holding gold mining rights.

The Minister said applications for additional gold mining claims by existing operations would be considered on the basis of demonstrated productivity, operational performance and effective utilisation of currently held locations.

The statement further called for idle foreign-owned mining assets to be developed, warning against the speculative holding of mining assets without meaningful progress towards production. It also emphasised the need for transparent production records, compliance with mineral marketing requirements and the use of authorised gold-buying channels. <Cite refs={[“turn217238search5”]}/>

These measures bring operational performance into sharper focus for investors holding mining claims. Beyond securing mineral rights, operators will need to demonstrate that their assets are being developed and that production and deliveries can be verified.

For small-scale gold mining, where access to finance, equipment, geological information and processing capacity can determine whether a claim becomes commercially productive, the implementation of these requirements will be closely watched.

Implications for gold production and formalisation

Zimbabwe’s small-scale mining sector plays an important role in gold production and the livelihoods of mining communities. Any changes affecting ownership, investment and operating structures therefore have consequences beyond the legal status of individual businesses.

The Government has linked the mining-specific policy to broader objectives that include formalising indigenous mining enterprises, improving accountability, preventing illicit mineral trading and ensuring that mineral wealth contributes to national development.

The practical challenge will be implementing the restrictions while supporting productive operations, improving compliance and maintaining reliable gold deliveries through authorised channels.

For existing operators, uncertainty over ownership arrangements, financing structures and the classification of mining activities could affect investment decisions. Clear guidance from the Ministry of Mines and Mining Development will be important in determining how the policy applies to individual projects.

The distinction between an operation classified as small-scale and one qualifying under the large-scale framework will also be significant for foreign investors assessing whether to restructure, expand production or commit additional capital.

Foreign investment shifts towards larger projects

The policy direction does not amount to a blanket prohibition on foreign investment across Zimbabwe’s mining industry. Instead, the regulations reserve artisanal and small-scale mining for citizens, while the mining-specific policy encourages foreign participants in small- and medium-scale gold mining to transition to operations above the prescribed thresholds.

Large-scale mining, mineral beneficiation, processing and related infrastructure remain important areas for investment, subject to the laws and approvals applicable to each project.

For Zimbabwe, the central test will be whether the new measures increase meaningful local ownership and productive use of mineral resources while providing a clear, consistent regulatory pathway for responsible investment.

As the 1 January 2027 deadline set out in the gold-mining policy approaches, the response of existing operators and the clarity of implementation guidance will be critical in determining how the changes affect production, mining claims and investment across the sector.

The Ministry of Mines and Mining Development has launched a 90-day exercise to capture mining title records in its Mining Cadastre Information Management System (MCIMS), calling on title holders whose surveyed coordinates are missing from its records to submit supporting documents, Mining Zimbabwe can report.

By Rudairo Mapuranga

The exercise, which commenced on 15 October 2026, will be conducted at the Ministry’s head office in Harare and provincial mining offices in Bindura, Bulawayo, Chinhoyi, Gwanda, Gweru, Marondera, Masvingo and Mutare.

According to Public Notice No. 05/2026, teams appointed by the Ministry will undertake the data-capture process and will carry official identification while conducting the exercise.

The Ministry is asking affected title holders to submit their title or claim number, the title holder’s name, surveyed coordinates defining the claim or licence area, and the coordinate reference system used.

Applicants must also provide supporting documentation, such as a survey plan, survey diagram or beacon certificate, to substantiate the submitted coordinates.

The documents should be submitted to the relevant provincial mining office within the 90-day period. Ministry survey staff will verify the information before it is entered into the system.

The exercise is intended to improve the completeness of the Ministry’s mining title records by capturing surveyed coordinates that are not currently on file. Accurate spatial records are important in identifying the geographical boundaries of mining rights and supporting the administration of mineral titles.

However, the notice does not state that mining titles will automatically be cancelled or invalidated where coordinates are missing. Title holders should therefore distinguish between the requirement to submit outstanding information and the legal status of their existing titles.

The Ministry has also assured stakeholders that records will remain in its custody and be handled confidentially. Title holders may be contacted where the information submitted is incomplete or requires clarification.

Importantly, the Ministry said no payment is required for the digitisation exercise, and title holders should not be asked to pay fees for participation in the process.

Stakeholders requiring further information have been directed to contact their respective provincial mining offices.

…As President E.D. Mnangagwa officially commissions the facility

The Mining Industry Pension Fund (MIPF) has invested US$26.18 million in a student accommodation complex at Chinhoyi University of Technology, expanding its property portfolio as it seeks sustainable returns to preserve pension savings and improve member benefits, Mining Zimbabwe can report.

By Ryan Chigoche

The Legacy Heights complex, officially commissioned by President Emmerson Mnangagwa in Chinhoyi on Saturday, comprises three blocks with 578 rooms and 1,271 beds, providing the pension fund with a rental-generating asset intended to deliver returns over the long term.

Construction began in July 2023 and was completed on October 5, 2026. The development occupies 1.66 hectares and has been granted prescribed asset status, supporting MIPF’s compliance with prescribed investment requirements.

Speaking to Mining Zimbabwe on the sidelines of the commissioning ceremony, MIPF Principal Officer and Chief Executive Anymore Taruvinga said the project was designed to address student accommodation needs while generating income for the fund.

“Obviously, it’s a project that not only helps us to meet the socio-economic needs of the country, in terms of students’ accommodation, but as they are occupying, they are also paying rentals to us, and those rentals represent income to the fund, which hopefully should enable us to improve the benefits that we give to our members,” Taruvinga said.

He said the rental charges had been set after assessing average rates at comparable accommodation facilities in Chinhoyi, with the fund seeking to balance affordability for students with sustainable returns.

The complex has a mix of single, double and triple-occupancy rooms, including 24 single-occupancy rooms and suites strategically distributed across the three blocks to cater for students with disabilities. The facility covers slightly more than 20,000 square metres of floor space.

MIPF board member Dr Alex Mapako said the completion of the development marked the realisation of a three-year investment aimed at preserving pensioners’ funds through sustainable projects.

“As a board, we are quite happy that finally, after three years of investment, we’ve seen the results. Our intention is just to make sure that we preserve the pensioners’ funds through sustainable investments, and investing in the future, in particular for students, gives us that pride as a board that we are investing in our future for Zimbabwe,” Maposa said.

He also acknowledged the support provided by the Ministry of Mines and Mining Development and the Insurance and Pensions Commission (IPEC), adding that contributions from individual miners would be key to sustaining the fund’s investment capacity.

Legacy Heights forms part of MIPF’s broader strategy to diversify its portfolio through property investments capable of generating recurring income. The fund has also been pursuing retail and hospitality projects to broaden its asset base.

Last year, MIPF commissioned a shopping mall in Shurugwi following a US$9 million investment.

The fund is expanding its retail property portfolio with another mall in Gokwe, where construction is under way on a project costing slightly more than US$5 million. The facility is expected to be commissioned before the end of 2026.

MIPF is also looking to enter the hospitality sector through a hotel development in Victoria Falls, in partnership with another pension fund. Taruvinga said agreements had been signed, with the project awaiting the transfer of land to a special-purpose vehicle established to oversee the development.

Smaller investments in quick-service restaurants in Kwekwe and Harare are also under way.

The projects broaden MIPF’s exposure across property segments, giving the fund multiple potential sources of rental and operating income to support its long-term pension obligations.

For students, the new accommodation is expected to ease the burden of travelling long distances to attend lectures.

Speaking to Mining Zimbabwe on the sidelines of the commissioning ceremony, Moila Chiwota, a Level 2.2 Environmental Engineering student, said the complex would give students a place to live closer to their studies.

“Some students were travelling a very, very, very long distance every day. And because of your hard work, we have a place we can proudly call home. You did not just build walls and rooms, you built comfort, you built safety, and you built hope for us students,” Chiwota said.

“We really appreciate your effort and your time, and the quality of your work you’ve delivered to us.”

The Zimbabwe National Institute of Rock Engineering (ZINIRE) will put technology, mine planning and improved ground-control practices at the centre of efforts to reduce fall-of-ground (FOG) incidents when its AGM and Annual Symposium returns to Victoria Falls on 23 October 2026, Mining Zimbabwe can report.

By Rudairo Mapuranga

Organising Chairman and ZINIRE Vice President Freddy Chikwiri said the symposium aims to equip delegates across different levels of the mining industry with practical strategies to improve ground control, strengthen risk management and protect mineworkers without compromising production.

Held under the theme “Leveraging Technology for Next Generation Fall of Ground Management,” the event will bring together rock engineers, mine managers, surveyors, geologists, safety practitioners and other industry professionals to examine how improved engineering practices and technological advances can be applied to mining operations.

Chikwiri said ground control must be treated as an integral part of production planning rather than a constraint to mining output.

For general managers and mine managers, he said, the priority is to incorporate geotechnical engineering into capital budgeting and mine planning from the earliest stages of a project.

“A safer mine is inherently a more productive and profitable mine,” Chikwiri said, arguing that effective ground-control strategies should establish the conditions within which production can proceed safely.

He said investment in geological data collection, appropriate ground-control policies and their integration into mine designs could help reduce rehabilitation delays, ore dilution and the risk of stope failures that threaten workers and disrupt production.

For technical practitioners, including rock engineers, strata control officers and mine planners, the symposium will examine the potential application of artificial intelligence, machine learning and large datasets in mine design and predictive modelling.

Chikwiri noted that geological uncertainty presents challenges for the adoption of digital tools in mining, making the reliability of their outputs and the responsibilities attached to their use important issues for discussion.

Delegates will have opportunities to engage with software developers OHMS and Rocscience, discuss modelling approaches and compare methodologies used by specialist geotechnical consultancies.

The programme will also focus on Ground Control Management Plans (GCMPs) and Trigger Action Response Plans (TARPs), which help mines identify hazards, establish appropriate responses and match ground-support systems to specific rock-mass failure mechanisms.

Specialist manufacturers and distributors are also expected to showcase products relevant to ground-control management, giving practitioners an opportunity to assess technologies and support solutions applicable to their operations.

Chikwiri said effective fall-of-ground prevention also requires closer coordination between rock engineering teams and other technical departments.

Mine surveyors, geologists and Mineral Resource Management (MRM) teams generate information that can inform assessments of ground conditions, but its value depends on how effectively it is incorporated into engineering decisions.

The symposium will therefore examine ways to improve the integration of survey data, three-dimensional laser scans, geological logs and hazard maps into rock-engineering models.

Chikwiri said stronger collaboration between these disciplines could improve the identification of unsafe conditions and help mines respond to emerging ground-instability risks before they escalate.

Beyond individual mining operations, ZINIRE also hopes the technical programme will contribute to stronger professional capacity and the development of Zimbabwe’s next generation of rock-engineering specialists.

Technical papers and engagement among mining companies, regulators, safety practitioners, academics and technology providers are expected to support the exchange of experience and ideas on improving ground-control standards across the industry.

Zimbabwe earned US$62.3 million from diamond exports between January and September 2026, selling 2.52 million carats at an average of approximately US$24.72 per carat, as falling realised values continue to weigh on the sector despite efforts to increase production and improve processing, Mining Zimbabwe can report.

By Rudairo Mapuranga

The figures highlight a widening gap between the volume of diamonds reaching the market and the revenue generated from them, placing greater emphasis on product quality, recovery efficiency and the economics of Zimbabwe’s predominantly alluvial diamond resources.

The decline is particularly significant when compared with the country’s recent export performance. Zimbabwe exported 5.59 million carats worth US$297.38 million in 2023, equivalent to US$53.18 per carat. In 2024, exports increased to 7.77 million carats, but earnings fell to US$234.39 million, with the average value declining to US$30.16 per carat.

The deterioration continued in 2025, when Zimbabwe exported 4.61 million carats valued at approximately US$125.18 million, yielding US$27.16 per carat, according to Kimberley Process data.

Between 2023 and 2025, export volumes declined by approximately 17.6%, while earnings fell by nearly 58%. The average export value per carat dropped by about 49%, indicating that the revenue decline has been considerably sharper than the reduction in volumes.

The figures suggest that Zimbabwe’s diamond challenge extends beyond the quantity of stones mined or sold. The value of the product reaching the market, alongside prevailing rough-diamond prices and the composition of sales, has become central to the sector’s financial performance.

Export Earnings Expose the Value Problem

The weakness persisted in 2026. Diamond exports generated US$45.7 million between January and July, compared with US$85.6 million during the same period in 2025, a decline of approximately 46.6%. The seven-month figure was also about 82.9% below the US$267.5 million recorded between January and July 2023.

By the end of September, cumulative earnings had reached US$62.3 million from 2.52 million carats sold. The resulting average of US$24.72 per carat was below the US$27.16 recorded for the whole of 2025.

These figures point to continued pressure on realised export values, although the year-to-date average should not be interpreted as a like-for-like comparison with full-year prices without accounting for differences in the mix and timing of sales.

The first quarter of 2026 had already illustrated the pressure. Zimbabwe sold 784,764 carats for US$21.55 million, giving an average of approximately US$27.46 per carat. The reported year-on-year declines of 11% in volume and 29% in value indicated that revenue was falling faster than the number of carats sold.

The wider production outlook has also been challenging. Reported diamond output fell from 0.44 million carats in the first quarter of 2026 to 0.35 million carats in the second quarter, a sequential decline of approximately 20.6%. The reported second-quarter figure was also substantially below the 2.03 million carats recorded in the corresponding period of 2025, although the production series and reporting basis require confirmation before the comparison can be treated as definitive.

Zimbabwe Consolidated Diamond Company (ZCDC) has set a target of five million carats for 2026, up from 3.8 million carats in 2025. Achieving that target would represent an increase of about 31.6%, but higher output alone will not guarantee a corresponding improvement in export earnings if the additional production attracts similarly weak prices.

For the sector, the commercial question is increasingly whether additional carats can be recovered and sold at a price that justifies the cost of extracting and processing them.

Marange’s Mineral Characteristics Weigh on Value

Zimbabwe’s diamond pricing challenge reflects both conditions in the international rough-diamond market and the characteristics of its own production.

ZCDC has previously identified geological constraints, product profile, geopolitical tensions, synthetic diamonds, market behaviour and the sales framework among the factors affecting its performance. The relative contribution of each factor is difficult to quantify without comparable price and quality data, but the distinction between global market weakness and the characteristics of Zimbabwean stones is important.

Much of Zimbabwe’s production comes from the Marange alluvial deposits, where diamonds are recovered from unconsolidated sediments rather than directly from primary kimberlite rock.

The product mix includes industrial-grade stones, commonly referred to as boart, which generally command lower prices than gem-quality diamonds. ZCDC has previously reported that approximately 85% to 90% of its production comprises boart diamonds. The precise proportion in current production would need to be established through updated grading data.

Marange diamonds are also associated with brown surface coatings that can obscure the stones’ appearance and affect their marketability. Where the coating can be removed without damaging the diamond, treatment may improve its appearance and potentially its realised value.

However, de-coating does not automatically transform an industrial-grade stone into a gem-quality diamond. Intrinsic characteristics, including clarity, colour, size and structural integrity, continue to determine the commercial value of each stone.

The distinction matters because the sector cannot rely on cleaning technology alone to overcome the limitations of its product mix. The commercial benefit will depend on how much saleable quality improves, the proportion of stones responding to treatment and whether buyers pay a premium for the processed product.

Global Market Weakness Compounds the Challenge

Zimbabwe’s difficulties have unfolded during a sustained downturn in the natural rough-diamond market, with weaker jewellery demand, excess inventory and competition from laboratory-grown diamonds contributing to pressure on prices.

Laboratory-grown diamonds have changed consumer price expectations, particularly in segments where buyers are more sensitive to price than to the distinction between natural and synthetic stones. Their impact on rough-diamond demand, however, varies by market segment and should not be treated as the sole explanation for Zimbabwe’s declining export receipts.

The weakness has also affected major international producers. De Beers reported lower average realised prices during the first half of 2026, illustrating the extent to which the downturn has affected even established suppliers.

Comparisons with large producers nevertheless require caution. Their average prices reflect different mixes of gem, near-gem and industrial stones, as well as differences in size distribution, sorting and sales arrangements. Zimbabwe’s average export value cannot be compared directly with a producer’s realised price without accounting for these differences.

For Zimbabwe, the combination of weaker international prices and a production mix weighted towards lower-value stones leaves limited room to compensate for falling unit prices simply by increasing volumes.

De-Coating Technology Targets a Specific Weakness

ZCDC has begun a value-addition programme aimed at improving the marketability of diamonds recovered from Chiadzwa.

In August 2026, the company confirmed that it had started value-addition work in June after acquiring specialised de-coating equipment from India. The programme forms part of efforts to improve the value of diamonds before export.

The treatment targets surface coatings that can obscure the appearance of stones. Its potential commercial benefit lies in enabling buyers to assess the underlying characteristics more clearly and, where the treatment improves marketability, potentially offer better prices.

The next measure of success will be the difference between the realised prices of treated and untreated stones, taking account of their original quality and size. Without that comparison, improved appearance alone would not establish the financial return on the investment.

The programme also raises operational questions, including treatment costs, processing throughput, the proportion of stones suitable for de-coating and whether the technology can be applied economically at scale.

These considerations are important in a low-value product environment, where additional processing expenditure must be justified by a measurable improvement in recovery or sales revenue.

XRT and Plant Expansion Could Improve Recovery Economics

Alongside de-coating, ZCDC has pursued processing improvements intended to increase diamond recovery and reduce operating costs.

The proposed A700 Phase 3 plant expansion is intended to improve processing capacity and recovery across the ore body, while greater use of X-ray transmission (XRT) technology is expected to support diamond concentration and recovery.

XRT systems identify differences in the way materials absorb X-rays, allowing suitable processing equipment to separate diamond-bearing material from waste based on measurable characteristics. Their effectiveness depends on factors such as feed preparation, particle size, sensor performance, plant configuration and the characteristics of the material being treated.

Improved recovery can increase the proportion of diamonds recovered from mined ore, reducing the number of valuable stones lost during processing. However, the benefit depends on the additional carats recovered, their quality and value, and the capital and operating costs required to obtain them.

The proposed consolidation of processing operations within a single footprint is also intended to reduce ore-haulage costs. If implemented successfully, shorter or more efficient material-handling routes could lower unit costs and improve plant utilisation.

The critical indicators will be recovery rates, throughput, downtime, processing costs per tonne and the value of additional diamonds recovered. These measures will show whether the investment improves the economics of production rather than merely increasing installed capacity.

ZCDC has also reserved 10% of its production for the local market and previously worked with Aurex Diamonds Operations in Harare on cutting and polishing selected stones. Domestic beneficiation offers a route to retain more value within Zimbabwe, although its contribution will depend on the quality and quantity of stones suitable for cutting and polishing, as well as the competitiveness of local processing costs and access to buyers.

Kimberlite Exploration Offers a Longer-Term Option

A further part of ZCDC’s strategy is the acceleration of kimberlite exploration with Russian diamond producer Alrosa.

The distinction between alluvial and kimberlite deposits is important for long-term mine planning. Alluvial operations recover diamonds that have been eroded from their original host rocks and deposited in sediments. Kimberlite operations target the primary rock in which diamonds occur.

A successful kimberlite discovery could diversify Zimbabwe’s resource base and create opportunities for a different production profile. However, kimberlite deposits vary widely in diamond grade, stone quality, size distribution and economic viability. Their value cannot be assumed from the deposit type alone.

Exploration must establish the presence and continuity of mineralisation, diamond content, recoverable grade and the characteristics of the stones. Further work is then required to determine whether a deposit can support commercially viable mining and processing.

The transition from alluvial production towards primary deposits would therefore be a long-term resource-development strategy rather than an immediate solution to falling export earnings.

Its significance will depend on exploration results, the scale of any discoveries, development costs and the quality of diamonds ultimately recovered.

Fiscal Pressures and Investment Requirements

ZCDC has also sought changes to the fiscal framework governing diamond production.

Among the proposals reported by the company are a reduction in diamond royalties to 5%, an increase in foreign-currency retention on export sales from 70% to 80%, and the formal removal of a 2.5% depletion fee that it says remains on its books without a confirming statutory instrument.

The company has argued that changes to these arrangements would help it manage costs and retain more resources for investment at prevailing prices. These remain proposals and should not be confused with approved changes to the fiscal regime.

ZCDC has also identified a proposed US$7.2 million capital injection in connection with its transition towards an owner-mining model, which is intended to reduce reliance on contracted mining services.

The economic case for that transition will depend on the capital required to acquire and maintain equipment, workforce and maintenance capacity, fuel and other operating costs, and the productivity achieved compared with contracted mining.

In a low-price environment, changes that reduce unit costs can be as important as improvements in realised prices. However, lower royalties or higher foreign-currency retention do not, on their own, resolve the underlying problem of low-value production. Their impact depends on whether the additional cash retained is sufficient to support more efficient operations and commercially justified investment.

Measuring Whether the Recovery Is Real

Zimbabwe’s diamond sector faces two connected challenges: a difficult international market and the need to improve the value obtained from its own resources.

The export figures demonstrate the scale of the pressure. Between 2023 and 2025, the average value per carat fell from US$53.18 to US$27.16, while annual export earnings declined from US$297.38 million to about US$125.18 million. By September 2026, the reported year-to-date average had fallen further to approximately US$24.72 per carat.

The response will need to be judged by more than production targets. De-coating must demonstrate a measurable price benefit; plant upgrades must improve recovery and reduce unit costs; beneficiation must generate commercially sustainable returns; and kimberlite exploration must deliver economically viable resources before it can materially alter the country’s production profile.

The distinction between output and value is central. More carats can support higher revenue when prices and product quality justify the additional costs, but production growth alone cannot guarantee a recovery in earnings.

For Zimbabwe, the decisive test will be whether mining and processing improvements can raise the value realised from each carat while keeping the cost of recovering and marketing it under control. Until that happens, the country risks increasing physical output without achieving a commensurate improvement in the financial contribution of its diamond resources.