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The Zimbabwe Revenue Authority (Zimra) has detailed a suite of tax incentives for lithium miners while unveiling an aggressive digitalisation drive to clamp down on revenue leakage, as the government pushes to capture greater value from the country’s critical mineral resources, Mining Zimbabwe can report.

By Rudairo Mapuranga

Speaking at the Chamber of Mines of Zimbabwe Annual Mining Conference and Exhibition, held under the theme “Unlock Value, Maximise Benefits, Sustain Growth”, Zimra Domestic Taxes Regional Manager for Bulawayo, Mr Lisani Dube, outlined the tax regime governing the rapidly expanding lithium sector.

The conference comes as Zimbabwe’s mining industry projects foreign currency earnings of more than US$7 billion this year, up from around US$4 billion in 2025. Lithium output surged by 54% in the first quarter of 2026, with exports anticipated to reach US$700 million.

Tax Incentives for Mining Operations

Dube highlighted several provisions designed to encourage investment and beneficiation:

Special Mining Leases: An additional capital allowance is triggered when a project’s internal rate of return exceeds 15%. Holders of special mining leases are taxed at a special rate of 15%.

100% Capital Allowances: Full deductions are permitted in the year of assessment through the Special Initial Allowance (SIA).

Immediate Deductions: Exploration, development and shaft-sinking costs are immediately deductible.

Loss Carry-Forward: Assessed losses from mining operations may be carried forward indefinitely—a significant advantage over the six-year limit applicable to other entities.

Lithium Royalties: Set at 7% of gross market value, with half payable in physical refined mineral and the other half in the currency of trade. Despite exporting 1.5 million tonnes of lithium in 2025, generating US$571.6 million, the government received only approximately US$40 million in royalties.

Taxes must be paid in US dollars, in accordance with the Finance Act provisions.

Capital Gains Tax Framework

Dube also clarified the capital gains tax regime for mining assets:

Standard CGT is imposed at 20% on assets acquired after 2021, while 5% applies to assets acquired prior to 31 December 2020.

Listed marketable securities incur a reduced rate of 1% or 1.5% withholding tax.

Special Mining Capital Gains: Disposal of mining claims is treated as ordinary income, not capital gains, attracting normal income tax at preferential rates.

Indirect Transfers: Where an offshore parent company owning a Zimbabwean lithium asset is sold, the transaction triggers local tax liability.

Group Sales Relief: CGT is deferred on transfers between 100%-owned subsidiaries through a rollover mechanism. Tax payable by the transferring company is rolled over to the recipient until it eventually disposes of the asset.

Transfer of ownership at the Ministry of Mines requires a valid tax clearance certificate from Zimra.

Digitalisation Drive

Dube outlined Zimra’s key digital initiatives:

Tax and Revenue Management System (TaRMS): An integrated digital platform for taxpayer registration, filing, payment and compliance management, enabling risk-based monitoring across the mining value chain.

Fiscalisation Data Management System (FDMS): Enables real-time electronic transmission of transactional data to Zimra.

Virtual Fiscal Devices: Allow integration between taxpayer systems and Zimra platforms, improving transaction visibility and reducing under-declaration opportunities.

Zimra has also deployed artificial intelligence-enabled risk engines to cross-reference customs data, transfer pricing documentation, financial statements, banking flows and corporate group structures. The AI initiative forms part of a five-year transformation strategy launched in 2025. Companies flagged as high risk face backdated tax assessments, penalties, interest charges and potential criminal investigations.

The enforcement drive has sparked tensions. The Zimbabwe National Chamber of Commerce has warned that aggressive audits are increasing cost pressures, with some firms facing multiple audits within months.

The 10% Beneficiation Tax Controversy

Dube’s presentation did not directly address the ongoing dispute over the 10% beneficiation tax on lithium concentrates, an issue that has created significant friction between producers and Zimra.

The government and Zimbabwe Lithium Exporters had reportedly agreed that the tax would only take effect once local processing plants were operational, effectively deferring collection until 2027. However, Zimra has already begun enforcing the tax.

Producers argue this premature enforcement undermines ongoing investments in local processing infrastructure. The Chamber of Mines, with the support of the Minister of Mines, is engaging the Minister of Finance on the matter.

The taxation debate is further complicated by royalty calculations. The Chamber and the Minister of Mines have held meetings with the Minister of Finance to resolve concerns, with agreement in principle that royalties should be levied on lithium concentrates rather than the more expensive refined lithium carbonate.

Broader Context: Export Ban and Beneficiation Push

The tax discussions unfold against a backdrop of sweeping policy changes. On 25 February 2026, Mines Minister Dr Polite Kambamura suspended all raw mineral and lithium concentrate exports with immediate effect. The ban was driven by evidence of widespread under-declaration of mineral content, under-evaluation of exports and transfer pricing practices that have systematically stripped value from Zimbabwe’s lithium sector.

In April 2026, the Minister issued an 11-point directive outlining conditions for the ban’s removal, including:

• Lithium sulphate plants operational by 1 January 2027
• A 10% beneficiation tax on all concentrate exports
• Assay laboratories at each producing mine within three months
• Monthly progress reports to a ministerial committee

The government is transitioning the industry towards local beneficiation, with four major lithium sulphate plants expected to be operational by late 2026. Prospect Lithium Zimbabwe’s US$400 million sulphate plant in Goromonzi is already complete and is expected to produce 50,000–60,000 tonnes annually.

Dube outlined the Authority’s four key commitments:

1. Facilitating voluntary compliance through taxpayer education and digital transformation.
2. Promoting fairness and certainty in tax law administration.
3. Strengthening collaboration with industry and other stakeholders.
4. Combating tax evasion and other forms of illicit financial flows.

Industry Expectations

Zimra encouraged industry players to register for all applicable taxes, maintain proper accounting records, adopt transparent pricing mechanisms, make timely disclosures, and engage proactively with the Authority.

“Compliance is a shared responsibility. The government and the industry must work together,” Dube said.

Mines and Mining Development Minister Dr Polite Kambamura has delivered a stern message to the lithium mining industry: the era of prioritising volume over value is over, as Zimbabwe accelerates its push to transform mineral wealth into industrial capacity, jobs and sustainable national prosperity, Mining Zimbabwe can report.

By Rudairo Mapuranga

Speaking as guest of honour at the Chamber of Mines of Zimbabwe Annual Conference, held under the theme “Unlock Value, Maximise Benefit, Sustain Growth”, Dr Kambamura told delegates that the central challenge facing the country is no longer whether Zimbabwe is mineral-rich. “That question was settled long ago by geology, production and history.” The real challenge, he said, is “whether we can transform our mineral endowments into industrial capacity, jobs, exports, infrastructure, technology and sustainable national prosperity”.

‘Volumes Without Value’

In a pointed remark directed at the lithium sector, the Minister expressed frustration with the current export model.

“I am worried about volumes without value,” Kambamura said. “I would rather work with small volumes of high value. Volumes and values should be knitted together.”

The warning comes as data shows Zimbabwe exported more than 1.1 million tonnes of spodumene concentrate in 2025, mostly to China. While mining now contributes 14.3% of GDP, the Minister argued that raw exports alone cannot deliver the infrastructure and industrial development the country needs.

“We cannot build a railway, we cannot build industries, we cannot build infrastructure by exporting concentrates,” he stressed.

Dr Kambamura hailed the recent shipment of battery-grade lithium sulphate by Prospect Lithium Zimbabwe as a “historic milestone not only for Zimbabwe, but for Africa as a whole”.

In April 2026, Zimbabwe shipped the continent’s first-ever consignment of lithium sulphate, a high-value battery material, from the Arcadia lithium mine near Harare. The shipment came from a US$400 million processing plant commissioned by Zhejiang Huayou Cobalt, marking the first time a lithium salt has been produced on the African continent.

“It demonstrates that beneficiation is achievable where policy certainty, investment commitment and government support converge,” Kambamura said.

The milestone follows the government’s February 2026 suspension of all raw mineral and lithium concentrate exports, a policy shift aimed at promoting transparency, in-country value addition and accountability. The ban has since triggered a wave of investment, with commitments reaching nearly US$1 billion in domestic processing infrastructure. Major producers, including Huayou’s Prospect Lithium Zimbabwe and Sinomine’s Bikita Minerals, have committed approximately US$700 million and US$500 million respectively towards lithium sulphate processing facilities.

The Smuggling Threat

The Minister also declared an “uncompromising war” on mineral smuggling, warning that illicit exports of gold, lithium and diamonds are bleeding the economy of critical foreign currency, state revenue and jobs.

“A tonne of lithium smuggled out of the country, a carat of diamond exported illicitly, that is revenue lost and jobs exported,” Kambamura said.

The scale of the problem is staggering. Zimbabwe is estimated to lose up to US$15 billion annually through illicit financial flows, exceeding the government’s entire US$12 billion mining sector target. A 2025 report by the Global Initiative Against Transnational Organised Crime described Zimbabwe’s mineral leakages as “industrial-scale looting” involving “a complex web of criminal syndicates, state-embedded actors and private-sector entities”.

Lithium smuggling networks reportedly exploit porous borders through mislabelled shipments, forged customs documents and bribes paid to border officials. In one case, a truck driver carrying a sealed container he believed held chrome was impounded after inspectors discovered raw lithium inside, an illegal export under Zimbabwean law.

An undercover investigation by Oxpeckers in April 2025 exposed a transnational lithium smuggling ring moving ore through South Africa and Mozambique. The investigation highlighted a startling anomaly: South Africa, which has minimal domestic lithium production, recorded a 147,000-tonne surge in lithium ore exports to China in 2024, pointing directly to Zimbabwe as the source.

Kambamura framed Zimbabwe’s beneficiation push within the broader context of global geopolitical shifts. He noted that “the new norms shaped by global geopolitics require resilience, which is no longer an option but a strategic necessity”.

“Global financing systems are navigating economic turbulence, digital disruption, geopolitical risk and climate-related shifts,” he said. “To remain relevant, governments need to come up with deliberate and timely policy interventions to recover from such global shocks.”

The Minister’s address comes as Zimbabwe’s mining industry projects foreign currency earnings of more than US$7 billion this year, up from around US$4 billion in 2025. Lithium exports alone are anticipated to reach US$700 million in 2026, with output expected to increase to 3 million tonnes from around 2.5 million tonnes in 2025.

Dr Kambamura outlined the government’s beneficiation strategy as founded on “a simple principle: local value creation beyond extraction”. In the lithium subsector, he said the government has “progressively moved from restricting raw ore exports toward promoting downstream processing”, with the objective of developing local capacity in lithium sulphates, lithium carbonates and other high-value products that can position Zimbabwe within global battery mineral value chains.

“The lesson is clear: value, not volume alone, must drive our future mining sector,” he said.

The conference, which capped attendance at 500 delegates despite overwhelming demand, featured five thematic symposiums covering ESG and sustainability, gold, platinum group metals, lithium and critical minerals, and coal, oil and gas. Beyond Kambamura, the Chamber invited the Finance Minister, the Energy Minister and the Governor of the Reserve Bank of Zimbabwe to address policy levers critical to the sector.

As Zimbabwe forges ahead with its beneficiation agenda, the Minister’s message was clear: the country’s mineral wealth must translate into tangible industrial development—or risk being exported along with the ore itself.

Diamond Market Headwinds and Recovery Signs

RioZim’s Broader Restructuring

As artificial intelligence reshapes mineral exploration globally, helping companies uncover major copper, lithium and other critical mineral deposits faster than ever before, Zimbabwe is increasingly turning its attention to a challenge industry leaders say has been neglected for decades: finding the next generation of mineral discoveries needed to sustain mining-led economic growth, Mining Zimbabwe can report.

By Ryan Chigoche

With mining expected to remain one of Zimbabwe’s most important sources of export earnings, investment and economic growth, policymakers are increasingly turning their attention to a question that will determine the sector’s future: where the next generation of mineral deposits will come from.

The urgency of that challenge was underscored by the Minister of Mines and Mining Development, Dr Polite Kambamura, who argued that long-term growth in the industry depends on a renewed focus on exploration.

“Every tonne of ore exported today must eventually be replaced through new discoveries and expanded resource definition. Zimbabwe remains underexplored by modern international standards,” Kambamura told a packed Chamber of Mines of Zimbabwe conference in Victoria Falls recently.

The warning comes as governments and mining companies worldwide embrace technologies that are dramatically changing how mineral deposits are discovered. Artificial intelligence and machine-learning systems are increasingly being used to analyse vast amounts of geological, geophysical and drilling data, allowing exploration companies to identify promising targets in a fraction of the time traditionally required.

KoBold Metals, backed by Bill Gates, Jeff Bezos and T. Rowe Price, is among the companies leading that shift. The firm is using machine learning to analyse more than five decades of geological data across Africa to identify mineral deposits that could otherwise take years to locate through conventional exploration methods.

Its projects include a proposed US$2.3 billion copper mine in Zambia and a US$1 billion lithium development in the Democratic Republic of Congo. In Burundi, the company is helping to digitise the country’s entire geological archive, unlocking exploration data that has never before been readily accessible.

For Zimbabwe, however, the significance of such developments extends beyond the technology itself.

A Policy Challenge More Than a Geological One

Industry experts argue that Zimbabwe’s exploration deficit has less to do with geology than with policy and investment conditions.

Following independence, significant systematic exploration resumed after economic liberalisation opened the sector to international mining companies with access to capital, technology and modern exploration techniques.

Over roughly a decade, the industry witnessed the recognition and development of major mineral deposits, including Ayrshire, Connemara, Eureka, Giant, Freda Rebecca, Indarama, Isabella, Pickstone, Royal Family, Turkey and Vubachikwe, many of which had previously been regarded as relatively small deposits.

The same period saw new discoveries at Maligreen, Ipanema and Hungwe, while the Kanyemba uranium deposit was identified and Hartley Platinum Mine was commissioned.

However, exploration activity slowed significantly after 2000 as economic and political challenges reduced investment and curtailed large-scale exploration programmes.

The contrast, according to industry observers, demonstrates the extent to which policy can influence mineral discovery.

“Given an environment that encourages exploration, this country has unlimited opportunities for mineral discoveries,” one industry expert noted.

Experts frequently describe Zimbabwe’s known mineral resources as the visible tip of a much larger iceberg. While the country is already recognised as one of Africa’s leading mining jurisdictions, they argue that currently identified deposits likely represent only a small fraction of its total mineral endowment.

That reality has important implications for long-term mining growth.

Without continued exploration, existing mines eventually deplete their reserves, reducing future production capacity and limiting opportunities for new investment. It also threatens the sustainability of beneficiation and value-addition initiatives, which depend on a reliable pipeline of mineral resources to secure long-term feedstock supplies.

Building the Foundations for Discovery

Recognising the challenge, the government plans to undertake a national airborne geophysical survey incorporating aeromagnetic and electromagnetic mapping technologies to improve geological understanding and identify new mineral targets.

Kambamura said authorities are also strengthening the Geological Survey Department and improving geological data management systems to make information more accessible to investors and exploration companies.

The initiatives are intended to stimulate private-sector exploration spending while improving the quality of geological information available to the market.

Industry analysts say such investments could prove increasingly important as artificial intelligence becomes more integrated into mineral exploration.

While AI has demonstrated its ability to accelerate discoveries, its effectiveness depends heavily on the quality and availability of geological data. Machine-learning models require extensive datasets, including geological maps, geophysical surveys, drilling records and historical exploration results, to generate meaningful predictions.

In that regard, Zimbabwe’s planned geophysical surveys and geological data modernisation efforts could provide a critical foundation for future exploration.

Yet experts caution that technology alone will not guarantee success.

While artificial intelligence may help identify mineral targets faster, the broader economic benefits of new discoveries depend on the policy framework that governs exploration, mine development and mineral processing.

Exploration, they argue, is only the first step. The greater challenge lies in ensuring discoveries translate into investment, jobs, downstream industries and long-term economic value.

As countries across Africa race to modernise geological databases and attract exploration capital, Zimbabwe’s own history offers an important lesson: when policies encourage exploration, discoveries follow.

The question now is whether the country can create the data, investment and regulatory environment needed to unlock what may still be a largely hidden mineral resource base.

• Compliance Non-Negotiable, Says RBZ Deputy Governor as Lithium Sector Comes Under Spotlight

The Reserve Bank of Zimbabwe (RBZ) has issued a stern warning to the mining sector, declaring that compliance with export regulations is non-negotiable as it moves to tighten oversight of the lithium industry and ensure the country receives fair value for its mineral wealth, Deputy Governor Dr Innocent Matshe has said.

By Rudairo Mapuranga

Speaking at the Chamber of Mines Annual Conference in Victoria Falls, Dr Matshe delivered a robust defence of government policy interventions, including the February 2026 suspension of raw mineral and lithium concentrate exports, which he said was “not because of a lack of reason” but was driven by legitimate national interest concerns.

“Sometimes when we say policy changes unexpectedly, I think it’s slightly misplaced,” Dr Matshe said. “When we saw, in February 2026, the Minister of Mines suspending the export of all raw minerals and lithium concentrates, it was not because of a lack of reason. It was because there was concern that the measure needed to be be taken in the national interest, and it reaffirmed government’s commitment to transparency, in-country value addition, beneficiation, compliance and accountability.”

The Deputy Governor revealed that Zimbabwe exported 1.5 million tonnes of lithium in 2025, generating US$488 million. However, he noted that 2026 has already seen remarkable progress, with US$205 million collected to date, representing a significant acceleration in revenue generation.

Lithium has emerged as the country’s third-largest export commodity, and Dr Matshe described this as “a welcome development that the industry is developing this quickly, and it will go a long way towards supporting macroeconomic stability.”

While acknowledging that the lithium sector is “largely compliant” with RBZ measures, Dr Matshe outlined several compliance gaps that remain a concern for the central bank.

These include overdue export receipts currently standing at US$15.8 million, the non-alignment of export documents, and the issuance of credit notes that complicate the tracking of mineral movements. Transfer pricing through related parties and the undervaluation of exports were also identified as persistent challenges.

“Most countries publish their import data, and we take it that the import data is accurate. So when we reconcile any source of import data in a second country with our export data and they don’t tally, it’s already a red flag,” Dr Matshe said. “The Reserve Bank will go to each and every export destination to make sure that our data ties.”

Surrender Requirements and ‘Recycling’ Concerns

Addressing the issue of foreign currency surrender requirements, under which exporters must surrender 30 percent of their earnings to the central bank, Dr Matshe reiterated that the framework is “key to distributing foreign currency in our economy.”

However, he raised concerns about what he termed “surrender recycling,” where companies convert their surrendered funds back into foreign currency through the willing-buyer willing-seller market.

“As soon as companies receive their surrender, they go to the willing-buyer willing-seller market and turn that into foreign currency, and who knows what happens with that,” he said. “It’s important for the Reserve Bank to then trace where that foreign currency goes and how it is utilised.”

The Deputy Governor emphasised that the RBZ does not control the exchange rate, contrary to popular perception.

“We publish data on a quarterly basis in the centre spread of all major daily newspapers in this country. If there is an actuary or a practitioner in data science, I invite them to come and look at the data,” he said.

Border Challenges and Document Fraud

Dr Matshe also shed light on operational challenges at the country’s borders, describing a pattern of suspicious behaviour.

“When our teams from compliance get to the border, all the contracts disappear. When they go to lunch, you will find a mile-long queue. When they come back from lunch, they all disappear again,” he said.

He noted that dismantling falsified export documentation and combating connivance with buyers remain key priorities for the central bank’s compliance teams.

Despite the tough rhetoric, Dr Matshe struck a conciliatory tone, emphasising that the RBZ maintains an open-door policy for industry engagement.

“The Reserve Bank continues to implement enhanced compliance measures, but it keeps its doors open to all of us and assures everyone that it operates an open-door policy, particularly for our associations,” he said.

Zimbabwe’s coal producers are ready to invest in their own trains to unlock export markets, but approvals from state entities remain elusive, former chairman of the Coal Producers Association, Linos Masimura, has said.

By Rudairo Mapuranga

Linos Masimura, who is also a shareholder at Zambezi Gas, told the Chamber of Mines Annual Conference’s Coal, Oil and Gas Symposium that producers have been pushing to acquire rolling stock since 2023, only to be frustrated by a cycle of approvals and cancellations.

“Myself in particular have got a project that we have been running which should have trains on the road, helping our production make its way to the ports and to customers in bulk,” Masimura said.

“But at the moment, we then engage NRZ, we then engage the shareholder for NRZ. But what has been delaying us from starting is the approvals. There are no approvals for us to start.”

He stressed that producers do not expect the government to fund the initiative.

“We need the trains, and we don’t expect someone else to come and invest for us. We have to do it ourselves, and we are ready to do so,” he said.

Production Slumps as ZESA Orders Fall

Masimura also highlighted a sharp decline in domestic demand, with ZPC orders dropping from around 250,000 tonnes per month to between 100,000 and 150,000 tonnes.

“At the moment, the local uptake of coal in power generation Units 1 to 6 is a bit low,” he said. “So, in the end, it also influences the total amount of coal that can be produced because 50 to 60 percent of our coal goes into power generation. When there’s a slowdown in Units 1 to 6, there’s naturally going to be a slowdown in production as well.”

The reduced offtake from Hwange’s older units, which have faced persistent operational challenges, has forced producers to scale back operations. Zambezi Gas, which started full mining operations in March 2025 and has since doubled production from 50,000 to 100,000 tonnes per month, now sells 50 percent of its coal to ZPC.

New Technology Offers Cleaner Coal Pathway

Masimura also spoke about the industry’s environmental trajectory, pointing to integrated technologies such as coal-to-products (CFP), which can eliminate waste while keeping emissions below well-established standards.

“Power generation and cement making into one plant, and you can use CFP technology to produce all your products in an integrated way where there’s no waste in terms of physical waste, but at the same time you are producing well below wellbeing standards in terms of emissions,” he said.

“These new technologies are helping to achieve that sustainability as well as cleaning up coal operations.”

With domestic demand constrained and export ambitions stalled by bureaucratic inertia, Masimura’s message was clear: coal producers are willing to invest in their own future, but they need the regulatory green light to do so.

Martin Ma, China Representative Director of the International Lithium Association (ILiA), has called on Zimbabwe to develop domestic lithium processing capacity to capture greater value from its rapidly growing mining sector, Mining Zimbabwe can report.

By Rudairo Mapuranga

Speaking at the Chamber of Mines Annual Conference Lithium Symposium, Ma, who was visiting Zimbabwe and Africa for the first time, said, “Seeing is believing,” and what he witnessed in the local industry explains why Zimbabwe’s lithium sector has expanded so rapidly in recent years.

Ma presented a global supply chain map showing that East Asia, led by China, Japan and South Korea, dominates EV and battery manufacturing, with China being the world’s largest producer of lithium chemicals. Europe is moving slowly on battery manufacturing capacity, while the Americas are largely driven by Tesla. This concentration, he argued, makes restructuring the lithium supply chain urgent.

He noted that Zimbabwe’s spodumene supply has grown remarkably over the past three years. Currently, lithium is sourced from hard rock (spodumene and lepidolite) and brine, with lepidolite being low-grade and costly to process, making local processing the most suitable option. China remains the leading refiner, but Australia and Zimbabwe are expected to increase their refining capacity gradually.

Ma recalled that when he joined a lithium company in the 1990s, global lithium carbonate equivalent demand was below 100,000 tonnes. Last year, it reached approximately 1.6 million tonnes, and demand is expected to continue growing.

He divided the new energy supply chain into upstream (mining and lithium salts), midstream (cathodes, batteries, separators, anodes and electrolytes), and downstream (OEMs). He noted that while only cathodes and electrolytes currently consume lithium, the emergence of solid-state batteries could change that.

Challenges of Moving Up the Value Chain

Shifting from exporting ore to producing battery-grade lithium carbonate or hydroxide changes the customer base entirely—from traders to cathode manufacturers, battery producers and OEMs. These high-end customers require rigorous quality management systems and ESG standards, with qualification processes taking between six and 12 months, or even longer for premium clients.

Ma pointed to Europe’s Critical Raw Materials Act, which requires at least 40% of refining capacity to come from external sources, describing it as a clear opportunity for Zimbabwe given its proximity to Europe. Morocco was also highlighted as a potential partner due to its phosphate resources and trade ties with Europe.

He outlined several success factors:

• Partnering with technical providers, as Chinese companies can supply mature technology and equipment.
• Maintaining sustainable government policies and regulatory compliance.
• Securing long-term off-take agreements with battery manufacturers and OEMs, including their investment in projects.
• Accessing financial backing. Ecobank, for instance, has deployed US$369 million to mining operators and related businesses between 2021 and 2025.
• Strengthening industry collaboration. ILiA has published carbon footprint guidance already adopted by OEMs, which can help smaller producers meet global standards.

As Zimbabwe advances its beneficiation strategy, Ma stressed that long-term success will depend not only on ore quality but also on the ability to meet evolving global standards—a challenge that also presents a historic opportunity.

Makomo Resources has planted more than 800,000 trees since 2010 under a programme that sees the company plant one tree for every tonne of coal extracted, director Raymond Mutokonyi has revealed.

By Rudairo Mapuranga

Speaking at the Chamber of Mines Annual Conference’s Coal, Oil and Gas Symposium, Mutokonyi said the initiative forms part of the company’s broader environmental, social and governance strategy to mitigate the carbon footprint of its mining operations.

“As part of our programme, we’ve also introduced, for every tonne of coal that we take out of the ground, we plant a tree every time,” Mutokonyi said. “So since 2010, we’ve planted in excess of 800,000 trees as part of carbon offsetting.”

Makomo Resources, which emerged in 2013 as Zimbabwe’s largest coal producer, contributing 74.5 percent of total production, operates on 7,000 hectares of the Entuba coalfields, about 17 kilometres from Hwange in Matabeleland North, with a mine life of 30 years and underground resources sufficient for operations for over 100 years. The company has invested over US$200 million in operations since commencing operations.

Self-monitoring over regulatory enforcement

Mutokonyi emphasised that companies should not wait to be monitored by regulators but should take charge of their environmental responsibilities proactively.

“Companies don’t need to be monitored to effect what is required of them,” he said. “Naturally, they should take charge of that area and do self-monitoring. Regulatory experience has shown us that once you’re involved in mining activity, you have to follow the right things to do.”

He noted that while policies are in place, the challenge lies in practical application rather than the regulatory framework itself.

ESG investment in Hwange community

When pressed on the company’s investment towards reducing emissions following a recent Oxpecker report on pollution affecting Hwange residents, Mutokonyi said Makomo has allocated a portion of its ESG funds to sustainable energy initiatives coordinated through the Hwange community.

“Our contribution has largely been in educating and allocating resources towards the general outlook and development of Hwange,” he said. “We invest a portion of our ESG funds in sustainable energy, and that’s coordinated through the Hwange community.”

The company has been working with various stakeholders, including the Hwange Local Board, ZimParks, and the Ministry of Health, as part of its community engagement efforts.

Infrastructure and logistics challenges

Mutokonyi also addressed the sector’s transport challenges, noting that Makomo previously invested in locomotives through a tripartite arrangement but struggled due to the economic climate at the time. He called for greater private sector participation in rail infrastructure development.

“If we can get more locomotives and wagons on the rail network, they’ll move freight onto wagons as opposed to road transport,” he said. “Companies, as part of their ESG, should put a portion of their resources into infrastructure development — PPPs, that’s the route to go.”

Makomo currently supplies coal to the Zimbabwe Power Company for electricity generation at Hwange Thermal Power Station, as well as to other clients domestically and internationally. The company has the capacity to produce over 200,000 tonnes of coal per month.

The company successfully exited corporate rescue in March 2025 after two years, having regained financial stability. Mutokonyi described the process as having played a critical role in stabilising the coal producer after it voluntarily entered corporate rescue.

With production ramping up and the tree-planting programme continuing, Makomo is positioning itself as a responsible operator while maintaining its status as Zimbabwe’s dominant coal producer.