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ZELA Designs Toolkit for Parliamentarians

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ZELA Designs Toolkit for Parliamentarians

The Zimbabwe Environmental Law Association (ZELA) has developed and published a toolkit aimed at equipping lawmakers with resources to pose relevant questions and draft motions in Parliament focused on natural resource governance, Mining Zimbabwe can report.

 

By Rudairo Mapuranga

 

ZELA’s toolkit serves as a timely resource to enhance legislative oversight of natural resource management, promoting transparency and accountability in Zimbabwe’s extractive industries.

 

Speaking on Saturday at the 2024 Civil Society Organisations (CSOs)-Parliament Indaba, organized by ZELA and ActionAid, Chiremba highlighted the event’s theme: “Positioning CSOs’ Submissions into the 2025 National Budget on Domestic Resource Mobilization (DRM) Strategies and Responsible Mining Standards in the Mining Sector.”

 

Tafara Chiremba, a representative from ZELA, outlined the toolkit’s purpose and scope, stating that it covers issues related to natural resource governance.

 

“Just to give you an overview, some of the topics we’ve been discussing from day one are actually included in this publication. Additionally, we have provided legal and policy questions that MPs should consider asking in Parliament based on current issues in the natural resource sector. One of the contributors to this toolkit is Dr. Tsabora, our technical advisor, who contributed significantly to this publication,” he said.

 

Chiremba further elaborated on the toolkit’s sections, noting that it includes essential guidance on motion drafting for issues related to natural resource governance.

 

“Since raising critical motions in Parliament is one of your areas of focus, we’ve included preliminary guidance on motion drafting, along with principles to help you in raising motions related to natural resource companies,” Chiremba said.

 

According to Chiremba, the toolkit also provides sample motions addressing various natural resource issues, which MPs can adapt and present in Parliament.

 

“These examples can be refined with additional information before being presented in Parliament,” he added, emphasizing the toolkit’s utility.

 

 

 

YMF Encourages ASM to Adopt Artificial Intelligent to Improved Workplaces

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YMF Encourages ASM to Adopt Artificial Intelligent to Improved Workplaces

The Youth Mining Foundation (YMF) has urged artisanal and small-scale miners (ASM) in Zimbabwe to adopt the use of artificial intelligence in their operations as a means to improve working conditions and enhance their livelihoods.

 

By Patricia Rwafa

 

 

Speaking at the SMEs International Expo 14th Edition Conference at Monomutapa Crown Hotel on the 4 October, Payne Farai Kupfuwa, CEO of the Young Miners Foundation, argues that scale miners should adopt Artificial intelligence for better lives in Artisanal Mining.

 

He emphasized that Artificial intelligence is a driving force for innovation in the mining industry. By incorporating automation, artificial intelligence, and information technology, mining operations can reduce costs, increase productivity, and enhance safety.

 

 

Additionally, technological solutions can help minimize environmental impacts and optimize resource utilization. AI-powered analytics offer valuable insights to support informed decision-making, further contributing to the overall improvement of the mining sector.

 

 

”The self-driving vehicles, robotic drilling, and autonomous maintenance reduce human involvement in hazardous tasks, improving safety. The continuous operations and reduced downtime lead to higher productivity and lower costs”.

 

 

”The AI analyzes data to improve decision-making, predict equipment failures, and enhance resource management. Hence AI-powered systems can monitor worker safety and detect potential hazards such as accidents in the artisanal mine sector”.

 

He added that the Internet of Things (IoT) includes IoT sensors and AI to enable predictive maintenance, reducing downtime and costs. IoT provides real-time data for operational oversight and compliance. These Internet of Things sensors can also help to predict where the gold is in the mine.

 

 

” Drones create detailed maps for exploration, planning, and monitoring.

They can also help assess environmental impacts and ensure compliance with regulations and security reasons”.

 

”The 3D mapping provides better visualization of mining sites, while 3D printing enables on-site parts manufacturing. These 3D technologies streamline processes and allow for customized tools and equipment”, he said.

 

RBZ implored to shore up gold reserves as the current 2.5 tonnes insufficient to fully back ZWG currency

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RBZ implored to shore up gold reserves as the current 2.5 tonnes insufficient to fully back ZWG currency

In order to fully support the recently devalued Zimbabwe Gold ( ZWG) currency analysts have implored the authorities to shore up the reserves as the current gold reserves of 2.5 tonnes are not sufficient to fully back the troubled local currency, Mining Zimbabwe can report.

 

By Ryan Chigoche

 

In an unsettling turn of events, Zimbabwe’s gold-backed currency, established recently in April, experienced a 44% devaluation last week, amid rising market pressure on the Reserve Bank of Zimbabwe (RBZ) to adopt a more realistic exchange rate. The steep decrease has created severe concerns about the currency’s stability and trustworthiness, particularly when world gold prices have risen significantly.

The Zimbabwe Gold (ZWG) currency has devalued despite rising gold prices the ZIG had plummeted by more than 80% in value on the black market. In contrast, the gold backing this currency has seen significant price increases After hitting a historic high of US$2,480 per ounce in July, gold set a new record at US$2,530 (US$90 per gram) on August 20.

 

Economists have expressed skepticism, pointing out that while the ZIG was supposed to be gold-backed, its value has fallen even as gold prices rise. This disconnect with gold prices has raised concerns over the actual backing of the currency and whether its promise of stability, tied to gold, can hold up under the current economic conditions.

 

Commenting on the development investment analyst Takudzwa Kudenga said the reserves are insufficient to support a fully backed gold-backed currency as he edged the authorities to adjust policy surrounding the currency or shore up the gold reserves, although challenging.

 

”With only 2.5 tonnes of gold and total reserves of US$370 million, Zimbabwe’s current reserves are insufficient to back a fully convertible gold-backed currency in any meaningful way. This would severely limit the country’s monetary flexibility, increase vulnerability to economic shocks, and potentially lead to a crisis of confidence in the currency. To successfully implement a gold-backed currency, Zimbabwe would need to accumulate significantly more reserves or redefine the scope of its gold-backing strategy,”

 

”Given the limitations of the current gold reserves, Zimbabwe may have to adjust its gold-backed currency policy. This could involve limiting the scope of gold convertibility (e.g., only offering gold-backed digital tokens rather than physical currency convertibility) or pursuing efforts to accumulate more gold reserves, though that would be a significant challenge” Kudenga said.

 

Renowned economist Gift Mugano commenting on the same development concurred with Kudenga arguing that Zimbabwe lacks the foreign reserves necessary to support a floating exchange rate and the ZWG.

 

Since late 2022, miners have been required to pay part of their royalties to the state in both commodities and cash to help bolster reserves. Through Statutory Instrument 189 of 2022, the government mandated that mineral royalties, including those from gold, diamonds, and platinum, be paid partly in kind and partly in monetary form.

 

Amid the currency conundrum Minister of Finance and Investment Promotion Mthuli Ncube this Wednesday addressing journalists in Mt Hampden maintained that the local currency was indeed backed by gold but surprisingly said the currency wasn’t fixed to gold.

 

However when the currency was introduced was introduced in April 2024, the government touted it as a currency backed by gold reserves, claiming this would make it resistant to exchange rate fluctuations. These recent statements by Ncube have cast doubt on this assertion, echoing past instances where government promises about currency stability have fallen short.

 

 The Reality of Gold-Backed Currencies

The concept of gold-backed currencies has gained renewed interest in recent years, especially as concerns about inflation and fiat currency stability grow. For a currency to be genuinely considered gold-backed, several key conditions must be met:

 

Establishment and Maintenance of a Fixed Exchange Rate

A fundamental requirement for a gold-backed currency is the establishment of a fixed exchange rate between the currency and gold. This means that a specific amount of currency is directly tied to a specified weight of gold, creating a stable and predictable value. Maintaining this fixed rate is crucial; any fluctuations can undermine trust in the currency. It necessitates careful management by the issuing authority, which must be prepared to intervene in the market to uphold the peg, especially in times of economic instability or sudden changes in gold prices.

 

Sufficient Gold Reserves

The issuing authority must possess adequate gold reserves to fully back the currency in circulation. This involves not only having enough physical gold to match the amount of currency issued but also ensuring that these reserves are securely stored and regularly audited. Transparency regarding gold reserves is essential to maintain public confidence. If the public perceives that the gold reserves are insufficient or not properly managed, it can lead to a loss of trust in the currency, potentially resulting in currency devaluation or a run on the currency.

 

Mechanism for Exchange

 

A viable gold-backed currency must include a clear mechanism for currency holders to exchange their notes for gold at the established fixed rate. This feature is critical for ensuring liquidity and allowing individuals to convert their currency into a tangible asset. The process should be straightforward and accessible, fostering confidence among users that they can redeem their currency for gold whenever they choose. This might involve designated banks or institutions where exchanges can be made, along with clear regulations governing how the exchange process works.

 

Market Confidence and Adoption

Ultimately, the success of a gold-backed currency hinges on market confidence and widespread adoption. For individuals and businesses to use such a currency, they must believe in its stability and value. This requires effective communication from the issuing authority about the currency’s backing, its redeemability, and the overall health of the economy. The more trust that users have in the gold-backed currency, the more likely it is to gain traction in everyday transactions.

 

Zimbabwe boasts over 4,000 recorded gold deposits. More than 90% of gold
deposits are situated within the greenstone belts.  According to the RBZ, Zimbabwe possesses the second-largest gold reserves per square kilometer in the world with 13 million tonnes of confirmed deposits. At least 95% of Zimbabwe’s total gold production has been derived from orogenic lode gold style mineralisation, which occurs within many of the greenstone belts.

 

According to financial experts to back a currency effectively, the total amount of gold reserves must equal or exceed the value of all currency in circulation. For instance, if a country issues $1 billion in currency and the fixed exchange rate is set at $1 per gram of gold, the country would need at least 1 billion grams (or approximately 32,150 ounces) of gold reserves.

 

Three Years of Research Could Effectively Tax ASM

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Three Years of Research Could Effectively Tax ASM

The artisanal and small-scale mining (ASM) sector is crucial for Zimbabwe’s economic growth and development, contributing significantly to foreign direct investment and revenue generation, particularly in gold and chrome production, recent findings suggest that three years of focused research can help design a tax system that ensures the country fully benefits from this vital industry, Mining Zimbabwe can report.

 

By Rudairo Mapuranga

 

These remarks were made by Gorden Tonde Chibanda of the Tax Justice Network Africa (TJNA) on Friday at the 2024 CSOs-Parliament Indaba, organized by ZELA and ActionAid. The event ran under the theme, “Positioning CSOs’ Submissions into the 2025 National Budget on Domestic Resource Mobilization (DRM) Strategies and Responsible Mining Standards in the Mining Sector.”

 

In his presentation titled International Tax Architecture and illicit financial flows (IFFs )– Developments, Challenges, and Opportunities,  Chibanda  discussed the potential for effectively taxing ASM based on three years of research.

 

“We inherited most of our taxes from the colonial era, so they don’t reflect our current economic situation,” Chibanda said. He emphasized that the ASM sector is organized in its own way, and authorities need to explore these structures in order to work collaboratively with the miners.

 

According to Chibanda, proper taxation systems should not only regulate the sector but also ensure that ASM miners feel supported and appreciated by the government.

 

A key takeaway from Chibanda’s presentation is that a fair taxation system could improve ASM’s contribution to the economy without stifling its growth. He highlighted the need to shift from outdated tax frameworks that do not align with the current realities of the sector. In this regard, developing policies tailored to ASM operations and needs could bridge the gap between miners and authorities, fostering a more productive relationship.

 

ASM in Ghana: Lessons for Taxation

 

Ghana offers a potential model for how ASM can be taxed effectively. The country has implemented a system that combines regulation and formalization, which allows small-scale miners to obtain legal licenses while paying taxes. This approach not only helps the government capture revenue but also ensures that miners operate within a structured framework, thereby reducing illegal activities.

 

By adopting a similar model, Zimbabwe could ensure that ASM miners are formally registered and taxed in a way that benefits both the miners and the country. Supporting miners through formalization initiatives and incentivizing compliance could further boost revenue collection while promoting sustainable mining practices.

 

In conclusion, for Zimbabwe to truly unlock the potential of its ASM sector, a more nuanced and supportive tax system is essential—one that reflects the sector’s complexities and integrates lessons from other countries like Ghana. This could pave the way for greater economic inclusion and growth in the mining industry.

 

Parliament Urged to Prioritize Research for Improved Policies and a Stronger Economic Future

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Parliament Urged to Prioritize Research for Improved Policies and a Stronger Economic Future

The Parliament of Zimbabwe has been urged to prioritize research-driven policymaking to foster sustainable development and a stronger economic and mining future for the country, Mining Zimbabwe can report.

 

By Rudairo Mapuranga

 

These remarks were made by Farai Mutondoro of the Zimbabwe Environmental Law Association (ZELA) on Friday at the 2024 CSOs-Parliament Indaba, organized by ZELA and ActionAid. The event ran under the theme, “Positioning CSOs’ Submissions into the 2025 National Budget on Domestic Resource Mobilization (DRM) Strategies and Responsible Mining Standards in the Mining Sector.”

 

Speaking at the event, Mutondoro emphasized the need for research and development (R&D) to inform legislative and oversight functions, ensuring that policies are data-driven and reflective of the country’s long-term needs.

 

He noted that Zimbabwe could learn from nations like China, which heavily invest in research to shape their policies. Mutondoro urged Parliament to allocate more resources towards R&D, particularly in sectors like mining, which remain critical to the economy but face sustainability challenges.

 

“Zimbabwe’s mining sector must focus on responsible mining practices that balance economic benefits with environmental protection,” Mutondoro said, adding that policy decisions should be informed by comprehensive data to prevent future environmental degradation and economic losses.

 

He further encouraged lawmakers to be open to challenging existing frameworks and seeking innovative solutions, stressing the importance of transformative research in shaping a better future for all Zimbabweans.

 

The call for research-led policies comes as Zimbabwe aims to meet its targets under the National Development Strategy 2 (NDS2), which prioritizes sustainable growth across sectors.

 

Govt Commends Palm River for Generating Own Electricity, Utilizing Gas Emissions for Power at Its US$3.6 Billion Ferrochrome Project

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Govt Commends Palm River for Generating Own Electricity, Utilizing Gas Emissions for Power at Its US$3.6 Billion Ferrochrome Project

The Minister of Mines and Mining Development, Hon. Winston Chitando, has praised Palm River for its pioneering role in generating its own electricity and utilizing gas emissions for power— a first in Zimbabwe, as reported by Mining Zimbabwe.

 

By Rudairo Mapuranga and Ryan Chigoche

 

This investment comes as local ferrochrome miners face a 2026 deadline to establish their own power generation facilities, addressing the sector’s growing energy needs. Continued economic growth is expected to push power demand above 3,000 megawatts within the next two years, with the mining sector projected to account for 80% of that increase.

 

During an appreciation tour of Palm River, Hon. Chitando, accompanied by the Minister of State for Matabeleland, commended the company for setting a benchmark in responsible high-carbon thermal power production.

 

“I want to commend Palm River for being a responsible high-carbon thermal power producer for two main reasons. Firstly, they have chosen to generate their own electricity rather than burdening the national grid, demonstrating leadership that other high-carbon producers should emulate. Secondly, they have introduced closed-loop technology, which is more efficient and environmentally friendly, including the use of gas emissions to generate electricity,” said Hon. Chitando.

 

This initiative underscores Zimbabwe’s goal of becoming a self-sufficient energy producer while enhancing its industrial capacity within a framework of responsible environmental practices. Miners have long identified power shortages as a major challenge, as ZESA has struggled to meet the mining sector’s demands.

 

The Zimbabwe Electricity Supply Authority (ZESA) currently has a generating capacity of only 2,000 megawatts (MW) but produces just 1,400 MW due to regular breakdowns at its thermal power stations and ongoing water shortages at its hydroelectric plants. As a result, miners across the country have begun investing in their own power solutions.

 

This project followed discussions between the company’s chairman and His Excellency, President Emmerson Mnangagwa, who directed that it be established as an integrated mining and energy park. Spanning 5,100 hectares within a special economic zone, this initiative promises to be transformative for Zimbabwe’s energy and mining sectors.

 

The project’s first phase is being developed through a joint venture involving the Government of Zimbabwe, Palm River, and Thuli Coal, focusing on three key components:

 

Thermal Power Production: Starting with 50 megawatts of electricity, with plans to add another 50 megawatts.

 

Coking Coal Production: Utilizing inputs from Thuli Coal and Hwange, the first phase will produce 100,000 tonnes of coke, scaling up to over 1 million tonnes.

 

High-Carbon Ferrochrome Production: Initially producing 100,000 tonnes, with potential for future expansion.

 

This US$3.6 billion project aims to establish stainless steel production in Zimbabwe, significantly reshaping the country’s industrial landscape.

 

Hon. Chitando expressed gratitude to President Mnangagwa for his vision and commitment to securing capital for the project. He noted that the President has actively monitored its progress, with the company’s chairman Mr Xong visiting Zimbabwe multiple times over the past year to provide updates.

 

“We look forward to further discussions with the Honourable Member of Parliament and Palm River management to determine the best time for His Excellency to officiate the groundbreaking ceremony of this transformative project,” Chitando concluded.

 

The Shanxi Palm River Energy Metallurgical project is strategically located 20 kilometers west of Beitbridge Town in Matabeleland South Province, just 17 kilometers from the South African border and 18 kilometers from the railway line.

 

The project will be constructed in three phases, including 1,200 MW of green power, comprehensive power generation, and supporting facilities; a coking plant with a capacity of 1 million tons per year; ferrochrome smelters producing 2 million tons annually; and stainless and carbon steel production of 1 million tons per year. Additionally, it will include community support facilities such as infrastructure, power and water supply, hospitals, schools, churches, and training centers.

 

Palm River’s parent company, Shanxi, is the world’s largest ferrochrome producer and the only Chinese enterprise with overseas chrome mines. Ferrochrome is a crucial raw material for stainless steel production and special steel applications.

 

Palm River, operating in Zimbabwe, ranks 25th among the top 100 enterprises in Inner Mongolia.

 

To promote industry and education, Shanxi Engineering Vocational College has partnered with Harare Polytechnic College for the College Enterprise College Project, aiming for mutual benefits in professional skills transfer, talent exchange, job creation, and local economic development.

Demand Outstrips Supply: Platinum Market Faces Second Year of Deficit Amid Strong Demand and Supply Challenges

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Demand Outstrips Supply: Platinum Market Faces Second Year of Deficit Amid Strong Demand and Supply Challenges

In 2024, the platinum market is experiencing a significant deficit for the second consecutive year, according to the World Platinum Investment Council. This situation is primarily driven by robust demand and ongoing supply challenges. Despite these conditions, platinum prices have remained relatively stable.

By Ryan Chigoche

In the second quarter of 2024, global platinum demand rose by 13% year-on-year, reaching 2,421 koz. This increase was fueled by a remarkable 137% surge in investment demand and a 5% rise in the jewellery sector. Stable demand from the automotive and industrial sectors further contributed to the overall growth.

Demand is anticipated to continue its robust growth, with the jewellery sector leading the way, partly due to platinum’s price differential with gold. The automotive industry is significantly driving demand as platinum increasingly substitutes palladium, particularly with the rise of heavy-duty vehicles and hybridization trends. Overall, total demand is forecast to reach 8,118 koz in 2024, resulting in a substantial market deficit of 1,028 koz.

On the supply side, while mine production increased and secondary supply stabilized, total global supply still fell short, reaching only 1,958 koz. This resulted in a significant deficit of 464 koz. For the full year, total platinum supply is projected to decline by 1% compared to the already weak levels of 2023, dropping to 7,089 koz. This decrease is largely attributed to reduced refined production in key regions, including South Africa, Zimbabwe, Russia, and North America.

In response to these supply constraints, platinum prices rebounded to around $920 per troy ounce in September, the highest in two months. Expectations of lower supply and declining global interest rates have enhanced the appeal of precious metals. Bloomberg forecasts suggest that the average platinum price will be $957.33 per ounce in 2024, before climbing to $1,005.42 per ounce in 2025.

In Zimbabwe, operating PGM mines—Zimplats, Unki, and Mimosa—are majority-owned by South African companies and have been involved in various expansion and new mine development projects, despite weakening commodity prices.

To boost production, Zimbabwe’s largest platinum producer, Zimplats, is progressing according to plan with its capital projects aimed at expanding capacity.

Under its US$1.8 billion capital expenditure investment, Zimplats’ strategy includes the development of new mines, the expansion of its smelter, the construction of an additional concentrator, a base metal refinery, a sulfuric acid plant, and the establishment of a 110-megawatt solar power plant.

Additionally, Karo Platinum Holdings is moving ahead with the development of its platinum mine despite falling PGM prices, with US$100 million already spent on mine infrastructure development.

The mining company’s project in Zimbabwe is an open-pit platinum group metals (PGMs) asset under construction, with a projected cost of US$391 million for phase 1.

According to GlobalData, Zimbabwe was the world’s third-largest producer of platinum in 2023, with output up by 6% compared to 2022. Over the five years leading up to 2022, production in Zimbabwe increased by a compound annual growth rate (CAGR) of 0.8% and is expected to rise by a CAGR of 3% between 2023 and 2027.

Mnangagwa to Headline Mine Entra Expo

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Mnangagwa to Headline Mine Entra Expo

The 27th Mining, Engineering, and Transport Expo (Mine-Entra) will be officially opened by President Emmerson Mnangagwa as the annual event kicks off next week. The event, rescheduled to October 9-11, was initially postponed last month to accommodate the SADC Industrialisation Week and the subsequent SADC Summit.

By Ryan Chigoche

Organized by the Zimbabwe International Trade Fair (ZITF) Company, the expo will officially open on October 10, with a theme focused on the mining value chain, innovation, and industrialization. ZITF board chairman Busisa Moyo emphasized the importance of collaboration across all sectors to foster economic growth in Southern Africa.

President Emmerson Mnangagwa has long emphasized the importance of the mining sector as a cornerstone of Zimbabwe’s economic recovery and growth. He has often highlighted the government’s commitment to increasing mineral production and attracting foreign investment.

Mnangagwa has also stressed the need for modernization and technological advancements in mining practices to boost efficiency and sustainability at a time when miners are contending with high operational costs.

In recent speeches, he has indicated plans to enhance value addition in the mining industry, urging miners to process more minerals domestically rather than exporting raw materials.

The event will gather local and international leaders, investors, and stakeholders to discuss advancements and challenges in mining. It will kick off with a Mining Industry Suppliers Forum, followed by a conference addressing sustainable practices, technological innovations, and investment opportunities. The event will conclude on October 11 with a conference for small-scale and artisanal miners.

Mine-Entra has established itself as a key platform for showcasing the latest innovations in the mining sector, attracting 250 exhibitors this year, including nine international firms from China, South Africa, and the UK. The mining industry is crucial to Zimbabwe’s economy, contributing over 75% of national export earnings, primarily from gold and platinum.

The expo promises to be a significant event for fostering resource-based industrialization and enhancing Zimbabwe’s mining landscape.

ZCDC Targets 10 Million Carats Through Exploration Expansion

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ZCDC Targets 10 Million Carats Through Exploration Expansion

Zimbabwe’s largest diamond producer, the Zimbabwe Consolidated Diamond Company (ZCDC), is on a steady path toward increasing its production to 10 million carats annually, primarily through aggressive exploration and the opening of new mining areas, said the Minister of Mines and Mining Development, Hon. Winston Chitando.

By Rudairo Mapuranga

Speaking to Mining Zimbabwe, Minister Chitando emphasized that ZCDC remains the frontrunner in diamond production in the country.

The company aims to double its current output of 5 million carats per year to 10 million carats.

“This year, ZCDC is targeting close to 6 million carats, which is a remarkable achievement compared to a few years ago when the company was producing just 1.8 million carats annually,” Chitando said.

The minister noted that ZCDC’s expansion strategy is centred on opening new mining areas and capitalizing on the company to ensure it meets the ambitious goal of producing over 10 million carats per year. The government and the company are actively exploring ways to further unlock the sector’s potential through investments in advanced exploration and production technologies.

“In Zimbabwe’s diamond sector, ZCDC is leading the way. As reported, the goal is to double output to over 10 million carats. ZCDC is expanding steadily, and the current focus is on capitalizing the company and opening new mining areas, all with the aim of reaching over 10 million carats per annum,” he said.

Zimbabwe’s diamond sector has other notable players contributing to the country’s overall production. Murowa Diamonds, a key private producer, has consistently delivered steady output, reportedly producing around 600,000 carats annually. Meanwhile, Anjin Zimbabwe has resumed operations and is projected to make significant contributions to the national output as it ramps up production.

In addition to these active producers, exploration activities by Alrosa Zimbabwe are showing promise. Alrosa, one of the world’s largest diamond producers, has been conducting extensive exploration in Zimbabwe, focusing on identifying new diamond-rich deposits. The joint venture between Alrosa and the Zimbabwean government reflects the country’s commitment to expanding its diamond industry by tapping into unexplored areas.

Zimbabwe’s combined diamond production from its major players—ZCDC, Murowa, and Anjin—positions the country as a growing force in the global diamond market. With ZCDC’s expansion efforts and Alrosa’s exploration activities gaining traction, Zimbabwe is poised to significantly increase its diamond output in the coming years, further enhancing its contribution to the mining sector.

The goal of producing over 10 million carats annually will not only cement Zimbabwe’s standing as a key player in the diamond industry but also generate substantial economic benefits through export revenues, employment opportunities, and infrastructure development.

Hwange Colliery Unveils Strategic Overhaul for Competitive Repositioning

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Hwange Colliery Unveils Strategic Overhaul for Competitive Repositioning

HCCL Holdings formerly Hwange Colliery Company Limited (HCCL) has embarked on a transformative journey through the launch of a comprehensive organizational reform strategy known as the Business Improvement Project (BIP), Mining Zimbabwe can report.

 

 

By Rudairo Mapuranga

 

 

The initiative according to the company CEO William Gambiza is designed to address the company’s operational inefficiencies and reposition it as Zimbabwe’s leading coal producer, capable of competing on both regional and global markets.

 

 

The BIP is a bold move aimed at safeguarding shareholder value while ensuring that employees, local communities, and business partners continue to benefit from HCCL’s operations.

 

 

Central to the project is the objective of reducing business risks and streamlining processes for optimal performance.

 

 

Speaking to Mining Zimbabwe Gambiza, emphasized that the Business Improvement Project is more than a corporate restructuring effort—it is a complete overhaul of the company’s business culture.

 

 

“I’m thrilled to be part of this exciting phase in HCCL’s journey towards rebuilding itself. The BIP is focused on re-examining every aspect of our operations. We need to evaluate all our ongoing and future projects, retaining only those that make business sense and abandoning the rest. It’s about ensuring that our business moves in the right direction and adapts to shifting market dynamics,” Gambiza remarked.

 

 

According to Gambiza, the success of the BIP hinges on its ability to enable HCCL Holdings to continuously manage costs, protect its margins, and maintain competitiveness in a volatile market. The initiative will prioritize high-margin opportunities and low-cost production, key factors in the company’s future success.

 

 

Enhancing Productivity and Cost Control

 

Gambiza said the Business Improvement Project aims to boost productivity by maximizing output per worker shift, controlling organizational spending, and ensuring efficient management of contractors. A significant focus will also be placed on managing debts and growing market share, areas which Gambiza views as essential for long-term sustainability.

 

He said that the BIP is also about building a unified team that shares the company’s vision and purpose.

 

“We’re focusing on nurturing a workforce that aligns with HCCL’s core values. Everyone needs to understand the bigger picture—this is how we build a team that moves in unison towards a common goal,” said Gambiza.

 

The project also aims to modernize mine planning by adopting a dynamic investment policy. This approach will allow HCCL Holdings to quickly respond to market changes, whether they signal a growth phase requiring expansion or a contraction phase necessitating the scaling down of operations.

 

“If we identify a high-growth opportunity, we can ramp up operations by increasing shifts and developing new business assets. However, if the environment shifts negatively, we’ll need to be agile enough to scale back, as we’ve done with our 3-Main Underground mine, currently under care and maintenance,” Gambiza elaborated.

 

Strategic Investments in Infrastructure

 

As part of HCCL’s long-term growth strategy, the BIP will focus on optimizing the company’s product portfolio to prioritize high-value products that maximize cash flow and profitability. This includes significant investments in infrastructure, such as the development of modular coal washing plants and the construction of a new coke oven battery.

 

These strategic investments, according to Mr. Gambiza, will help the company achieve its broader goal of improving cash flow and enhancing its overall market position.

 

“We’re not just looking at volume, we’re focusing on value. The modular coal plants and coke oven battery are steps towards achieving this,” he said.

 

Customer-Centric Approach

 

A key component of the Business Improvement Project is the introduction of a Customer Value Management (CVM) strategy, which will fundamentally shift the company’s focus towards meeting customer needs. CVM is a business model that emphasizes creating, delivering, and capturing value for customers by tailoring services to their demands.

 

“The coal business is driven by customer needs. We are transitioning from a production-oriented mindset to a marketing-focused one. It’s about understanding what the customer wants and crafting our business strategies around that,” Gambiza said.

 

To support this shift, HCCL will establish a series of key commercial metrics, including customer lifetime value, retention ratios, acquisition costs, and recurring revenues. The company will also revisit its coal supply chain to identify areas where more value can be generated for both HCCL and its customers.

 

People-Centered Transformation

 

Gambiza highlighted that the success of BIP relies not only on numbers and operational efficiencies but also on the people behind the processes.

 

“People are the business. While numbers and efficiencies matter, it’s the people who make the difference. We aim to work with world-class talent, bringing in experts from diverse fields to improve processes and upskill our team,” he noted.

 

The CEO further explained that key deliverables for the BIP would revolve around improving safety, enhancing environmental stewardship, reducing costs, boosting market share, and ensuring that HCCL remains compliant with local regulations. The company will also focus on improving its return on capital employed and optimizing its balance sheet.

 

Change Management and Implementation

 

To ensure the effective implementation of the BIP, HCCL has rolled out employee roadshows and introduced a change management model based on Kotter’s 8-Step process. This model emphasizes urgency, vision, empowerment, and the creation of short-term wins as part of a broader cultural shift within the company.

 

“Change agents will be appointed and trained to oversee the implementation of this transformative project across different departments. This is a journey we are taking together as a company, and the involvement of everyone is crucial to its success,” Gambiza concluded.

 

In summary, HCCL Holdings Business Improvement Project is poised to transform the company’s operational landscape by introducing modern business practices, optimizing its product portfolio, and focusing on customer-centric strategies. This multi-year project is expected to position Hwange Colliery as a leading player in Zimbabwe’s coal industry, offering long-term value for shareholders, employees, and other stakeholders alike.

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