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Zimbabwe’s platinum miners are staring down a liquidity abyss as unpaid export surrender balances in ZiG have ballooned to more than US$228 million, pushing an already fragile sector to its operational limits, industry leaders have warned.

By Rudairo Mapuranga

The staggering figure, confirmed at the recent PGM Producers’ Indaba at the Chamber of Mines Annual Conference in Victoria Falls, reflects the growing mismatch between foreign currency earnings and the government’s delayed settlement of the mandatory 30% surrender portion—paid in the local ZiG currency. Producers say the accumulating backlog is not just a balance-sheet headache but an existential threat that is stalling exploration, starving local suppliers, and forcing some operators to review their Zimbabwean exposure.

“The ZiG surrender delays have effectively locked up working capital equivalent to nearly four months of operating costs for some mines,” a senior executive who attended the indaba told Mining Zimbabwe on condition of anonymity. “We’re being asked to fund the state’s cash-flow gap while our own equipment ages, contractors go unpaid, and new shafts remain on ice.”

Fresh concerns have emerged around downstream service providers, while community trust funds are also feeling the pinch, as miners have slashed procurement budgets by over 15% in the first half of 2026 to preserve dollar-denominated reserves. The unpaid ZiG portion, which companies cannot easily use to import critical reagents or pay expatriate staff, has created a perverse two-speed economy within the mining houses.

Valterra’s Unki operation confirmed a US$100 million claim in February. Industry sources now suggest the combined figure has crept higher as new surrenders from Q1 2026 have been added without corresponding settlements.

The crisis comes at a cruel juncture. Global PGM prices recovered modestly from 2025 lows, boosting export earnings to US$1.9 billion last year, but producers argue they cannot leverage that uptick because the ZiG surrender mechanism acts as a drag on dollar liquidity. The central bank and Treasury have acknowledged the backlog and begun partial repayments, but miners say the pace is too slow to reverse project deferrals, notably a planned US$400 million concentrator expansion that has been shelved indefinitely.

Production data underscores the urgency: platinum output dipped to 17,882kg in 2025 from 18,911kg in 2024, while palladium fell to 14,620kg. The Chamber of Mines is forecasting a 5% rebound this year, but that projection hinges on improved cash flow, which the US$228 million ZiG albatross makes increasingly unlikely.

“We are not asking for a waiver or a handout; we are asking for the rules of the game to be honoured,” said Alexander Mhembere, Chair of the Platinum Producers Association. “Every day that this ZiG balance remains unsettled, we are effectively subsidising the fiscal deficit with our own survival. That cannot continue if Zimbabwe wants to remain a top-ten PGM producer.”

Mining executives are now calling for a radical overhaul of the surrender framework—either switching to a fully dollarised export retention model or introducing a guaranteed settlement window of no more than 30 days. Without such reforms, they warn, the US$228 million figure could exceed US$300 million by year-end, turning a crisis point into a full-scale collapse that would imperil 18,000 direct jobs and nearly 30% of formal mining employment.

For now, the sector watches and waits, but patience, like dollar liquidity, is wearing dangerously thin.

ZIMBABWE’S mining industry requires approximately US$10 billion in capital investment over the next five years to sustain operations and ramp up output, outgoing Chamber of Mines of Zimbabwe President Mr John Musekiwa has said.

By Rudairo Mapuranga

Delivering his final address at the Chamber’s 26th Annual Mining Conference and Exhibition in Victoria Falls, Mr Musekiwa painted a picture of a sector at a pivotal moment—recording robust growth and record earnings, but facing significant funding constraints that threaten to stall momentum.

The mining sector recovered strongly in 2025, recording growth of around 7 percent compared to 2.3 percent in 2024, Mr Musekiwa reported.

On the back of strong output growth in gold, coal, and lithium, the sector generated a record US$8.5 billion in export earnings in 2025, up from US$5.9 billion in 2024, driven by strong output performance and favourable prices, particularly for gold and PGMs.

The sector accounted for 81 percent of national exports in 2025, paid about 20 percent of earnings to the government through various taxes and levies, and contributed 10 percent to the country’s GDP, employing around 60,000 people in the formal mining sector.

Mr Musekiwa noted that the sector’s multiplier effect is estimated at around 3, “implying that for every dollar generated by the sector, three more dollars are created in other sectors of the economy.”

However, the outgoing president struck a cautionary note on the sector’s ability to sustain its growth trajectory.

“The funding gap to optimise operations and meet output targets remains huge. Approximately US$10 billion is required by the industry in the next five years for sustenance and ramping up output,” he said.

“A significant number of mining companies are struggling to raise offshore funding, thus relying on internally generated resources or retained earnings.”

Mr Musekiwa also highlighted several challenges weighing down the sector’s performance, including high royalties and levies, high capital costs, and uncompetitive electricity tariffs.

“While we appreciate ZESA’s commitment to prioritise mining companies for available power, the power supply situation for the mining industry remains a dominant issue. Some mining companies continue to experience power outages,” he said.

“To this end, some mining houses have been supplementing their power requirements through alternative solutions, including running expensive diesel-powered generators.”

The outgoing president raised concerns about foreign currency shortages affecting expansion projects and beneficiation facilities.

“Our mining houses, specifically those undertaking expansion projects and constructing beneficiation facilities, are reporting that the available foreign currency is inadequate to meet their requirements,” he said.

“It is our humble plea that the government allows mining companies to participate on the Willing Buyer, Willing Seller platform, specifically for legitimate forex requests to supplement their forex requirements.”

He also noted delays in the payment of the surrender portion of export proceeds, which have “adversely affected operating cash flows as well as delayed the execution of capital projects.”

Despite the challenges, the outlook for the mining sector remains bright, with the sector projected to grow by a further 10 percent in 2026 as output for all minerals is expected to expand.

Gold output is expected to increase from 50.6 tonnes in 2025 to around 55 tonnes in 2026, generating corresponding exports of around US$5 billion. PGM output is projected to increase by an average of 5 percent in 2026, with exports reaching US$2 billion. Lithium output is expected to increase to 3 million tonnes in 2026, from around 2.5 million tonnes in 2025, with exports anticipated to reach US$700 million.

“I would like to take this opportunity to thank the executive committee, management, members, and all stakeholders for their support during my tenure,” he said.

“It is without doubt that the Chamber of Mines will remain in safe hands as my able successor, Mr Fungai Makoni, steers the ship as the industry scales to new heights.”

Zimbabwe’s mining industry could generate greater economic and social benefits if supported by stronger transparency measures, improved infrastructure, enhanced data systems, and targeted policy reforms, according to findings presented by the Zimbabwe Economic Policy Analysis and Research Institute (ZEPARI), Mining Zimbabwe can report.

By Ryan Chigoche

Speaking at the Chamber of Mines of Zimbabwe Annual Mining Conference and Exhibition in Victoria Falls held last week, ZEPARI Executive Director Dr Gibson Chigumira said the country needed to move beyond traditional measures of mining performance and develop mechanisms that capture the sector’s wider contribution to national development.

Mining has strengthened its position as one of Zimbabwe’s most important economic pillars in recent years. Its contribution to gross domestic product increased to 14.5% in 2025 from 12.8% in 2021, while mineral export earnings rose to US$7.3 billion from US$3.7 billion over the same period. The sector now accounts for approximately 75% of Zimbabwe’s total export receipts.

Despite this growth, concerns remain over whether the full value generated by the industry is being effectively measured and translated into sustainable development outcomes.

According to ZEPARI, one of the major weaknesses is the lack of reliable and comprehensive data to support policymaking. While mining’s contribution is typically measured through indicators such as GDP, employment, exports, fiscal revenue, and foreign direct investment, its broader developmental impact often remains undocumented.

These benefits extend to community empowerment programmes, environmental, social and governance initiatives, infrastructure development, education and healthcare investments, capital market growth, and rural industrialisation. However, the absence of systematic data collection and documented evidence continues to limit informed policy discussions and decision-making.

Addressing these shortcomings will require stronger transparency and accountability throughout the mining value chain. Recommendations include establishing a mining contract register, improving disclosure of production, value-addition and export information, and strengthening reporting of community social investments.

The institute also identified weaknesses in data management and sector oversight. Proposed interventions include creating a centralised mining data portal, adopting standardised reporting systems, installing additional weighbridges to improve the accuracy of mineral export measurements, and enhancing technological and technical capacity within Government institutions.

Legislative reforms and stronger stakeholder engagement were also highlighted as important measures to improve sector performance. Regular public disclosures and closer collaboration between Government, mining companies, and civil society organisations were identified as critical to building trust and supporting long-term growth.

The report further recommends comprehensive monitoring and evaluation frameworks incorporating key performance indicators, periodic economic assessments, and mechanisms to track environmental and social contributions made by mining companies.

However, unlocking mining’s full potential will also require addressing persistent operational constraints. High royalty rates, expensive electricity tariffs, elevated financing costs, unreliable power supplies, foreign currency shortages, delayed payments of surrendered export proceeds, and limited access to capital continue to weigh on the industry’s competitiveness.

These challenges are limiting the ability of mining companies to reinvest, expand production, and accelerate project development. With mineral resources finite by nature, ZEPARI stressed the need for long-term strategies that ensure mineral wealth translates into lasting economic transformation, industrial development, and sustainable benefits for future generations.

Gold Producers Association of Zimbabwe (GPA) is projecting production of more than 55 tonnes and export earnings of US$5 billion. However, foreign exchange shortages, delays in export proceeds, and persistent operational constraints are curbing the sector’s ability to expand capacity and fully capitalise on a sustained bullion price rally, Mining Zimbabwe can report.

By Ryan Chigoche

Gold production rose 31% to 50.6 tonnes in 2025 from 38.5 tonnes a year earlier, while export earnings surged to US$4.6 billion from US$2.5 billion, accounting for 44% of Zimbabwe’s total exports.

The strong performance has reinforced confidence in the sector’s growth prospects, supported by firm gold prices and a growing pipeline of expansion projects and mine restarts expected to add new production capacity.

Speaking at the Chamber of Mines Annual Conference in Victoria Falls (Gold Symposium) held last week, Gold Producers Association of Zimbabwe chairperson Qhubeka Nkomo said the medium- to long-term outlook for the industry remains favourable, with production expected to surpass 55 tonnes in 2026 and export earnings projected to reach US$5 billion.

“The medium- to long-term prospects for the gold industry are on the upside, with favourable prices expected to persist alongside ongoing expansion projects across the country. The revival of closed mines, including Red Wing in Penhalonga and Mazowe Mine, is also expected to support higher output as these operations and new developments ramp up production, with gold output expected to surpass 55 tonnes in 2026,” Nkomo said.

The GPA’s projections are underpinned by a combination of mine restarts and new developments. Efforts to bring previously closed operations such as Red Wing and Mazowe Mine back into production are expected to provide near-term output gains, while projects being advanced by Kavango Resources in Filabusi and at Dokwe in Tsholotsho are set to contribute additional supply over the medium term.

Despite the favourable outlook, producers say a number of structural constraints continue to limit the industry’s ability to fully benefit from the current gold price environment.

Producers say structural bottlenecks continue to constrain the sector’s growth potential, with access to capital and foreign currency emerging as the most significant challenges.

Many gold producers are struggling to secure offshore financing for expansion projects and are increasingly relying on internally generated cash flows to fund mine development and capacity upgrades. Financing conditions have also tightened, with some lenders demanding physical gold as collateral and requiring producers to maintain escrow accounts to mitigate counterparty risk.

Foreign exchange shortages are adding to the pressure, limiting producers’ ability to meet both operational requirements and capital equipment needs.

“Most gold producers that are expanding their operations continue to report foreign exchange shortages in meeting both operational requirements and capital equipment needs, which is already delaying plant expansion projects,” Nkomo said.

Delays in the settlement of ZiG equivalents under the Reserve Bank of Zimbabwe’s export surrender framework have further strained liquidity across the sector.

“Producers have also reported that payment delays are creating liquidity and operational pressures, with many now forced to operate on discounted cash flows,” he said.

Miners say the widening gap between official and parallel foreign exchange market rates is eroding value and complicating cash flow planning.

The financial pressures come as producers contend with a high-cost operating environment characterised by elevated electricity tariffs, significant fiscal charges, and a high cost of capital.

While strong bullion prices continue to support profitability, industry leaders warn that any sustained decline in gold prices could expose viability challenges, particularly for higher-cost operations.

Even so, producers remain confident the sector can sustain its growth trajectory if policy, liquidity, and infrastructure bottlenecks are addressed.

THE Chamber of Mines of Zimbabwe has elected new office bearers for the 2026–2027 term, with Mimosa Mining Company Managing Director Mr Fungai Makoni taking over as President and Falcon Gold’s Mr Qubeka Nkomo assuming the Vice Presidency, Chamber CEO Dr Isaac Kwesu has announced.

By Rudairo Mapuranga

The leadership transition was confirmed during the Chamber’s 26th Annual Mining Conference and Exhibition, currently underway in Victoria Falls, where delegates gathered under the theme “Unlock Value, Maximise Benefits, Sustain Growth”.

Mr Makoni, who previously served as Second Vice President under outgoing President Mr John Musekiwa of Zimasco, steps into the presidency at a critical juncture for the sector. A chartered accountant with 15 years of experience in the mining sector, he brings direct operational experience from Mimosa’s platinum operations and a track record in community development projects.

Mr Nkomo, who takes up the Vice Presidency, is the Chairman of the Chamber’s Gold Producers Committee and has extensive experience as Finance Director and Company Secretary at Falcon Gold Zimbabwe.

Mr John Musekiwa becomes the Immediate Past President.

Speaking at the conference opening, Dr Kwesu noted that the Chamber’s annual gathering has evolved into a premier mining event in the region. The conference is expected to shape policy formulation and industry strategies that promote the development, competitiveness, and growth of the mining sector in the medium to long term.

Over the past two days, the Chamber hosted a series of mineral-specific symposiums, including Coal, Oil and Gas, Gold, PGMs, Lithium, and Sustainability and ESG, providing platforms for robust discussions on opportunities, challenges, and policy innovations required to unlock growth across the various sub-sectors.

Mr Makoni’s appointment comes as miners navigate currency reforms following the March 2026 directive mandating ZiG payments to local suppliers, and efforts to boost beneficiation under the Government’s Vision 2030 mining targets.

His leadership is expected to focus on policy advocacy, investor confidence, and improving the operating environment for large-scale producers. As Zimbabwe targets US$7 billion in mineral revenue, the Chamber under Makoni is expected to push for stable policies, reliable energy, and infrastructure that support growth across the minerals value chain.

ZIMBABWE’S artisanal and small-scale mining sector must look beyond the glitter of the gold price and build a lasting legacy rooted in responsible practices, ethical operations, and community stewardship, Zimbabwe Miners Federation (ZMF) President Ms Henrietta Rushwaya has said.

By Rudairo Mapuranga

Speaking at the Chamber of Mines Gold Symposium, Ms Rushwaya painted a vivid picture of a sector at a crossroads – bursting with potential but shackled by financing constraints, a lack of working space, and the reality that 90 per cent of operators are currently working without proper tenure.

But amid the challenges, she celebrated a groundbreaking partnership between Mutapa Investments and Chegutu-based Magaya Mining as a template for the future – a consolidated mining framework that operates as a one-stop shop.

“Mutapa Investments have taken a lead with Chegutu-based Magaya Mining, and you’ve started a model which consolidates the sector through a consolidated mining framework, where everything is done under one roof, and it has become a one-stop shop,” Ms Rushwaya said.

“Well done to Mutapa Investments. You have become bigger, and yet there’s a model.”

She called on government and the private sector, including the Chamber of Mines, to create synergies that organise small-scale miners into productive teams and clusters, moving away from the fragmented and often informal operating environment.

Ms Rushwaya, herself a beneficiary of the government’s Gold Development Initiative Fund (GDIF) administered through Fidelity Gold Refinery, gave a compelling personal testimony of the facility’s transformative power.

“When I started mining, I used to produce plus or minus 25 to 30 grams every week. But I’ve actually grown in production exponentially to the extent that I’m now producing five kilograms of gold every month,” she revealed.

“That’s actually an upward trajectory insofar as mining is concerned. I’m one of the beneficiaries of the Government Gold Development Initiative Fund.”

She noted that the GDIF, introduced about five to six years ago, has enabled many small- to medium-scale miners to develop their mines, acquire yellow machinery, and access training, unlocking a wave of production that now accounts for more than 60 percent of national gold output.

Responsible mining is key to livelihoods

However, Ms Rushwaya cautioned that growth in output must be matched by growth in conscience. She urged miners to build a legacy that endures beyond the next gold price spike.

“I think as small-scale miners we need to prioritise ethical, environmental, and socially conscious practices. This goes beyond the price and the quality. It requires companies to evaluate how suppliers treat their workers, and it also needs to look at the impact on local communities and the effect on the environment across the entire supply chain,” she said.

“As a small-scale mining sector, I think responsible mining is key to our day-to-day livelihoods.”

Her message was clear: the sector’s long-term viability depends not on how much gold is pulled from the ground today, but on how responsibly it is extracted and on whether the communities and environments that host mining operations are left better off for generations to come.