Mining ZimbabweLatest Mining News, Policy and Industry Updates

Zimbabwe risks missing out on a mining boom due to low investment in exploration, industry experts warn. With gold prices at a 20–30-year high and deposits still shallow, the country may fail to attract significant foreign investment, potentially leaving valuable mineral wealth untapped, Mining Zimbabwe reports.

By Ryan Chigoche

Global data highlights the scale of the problem. In 2024, Canada invested roughly US$2.5 billion in exploration, about 20% of global spending, while Zimbabwe spent only US$11 million, representing less than 0.2% of the global total and 2% of Africa’s exploration budget.

Even when unreported expenditures are considered, Zimbabwe remains far behind other jurisdictions actively courting global mining capital.

The Ernst & Young 2026 Top 10 Risks and Opportunities report ranks resources and reserves fourth, signaling global concern over declining reserves and insufficient exploration.

This ranking underscores the importance of exploration as a central factor in attracting investment and sustaining mining growth.

Central to Zimbabwe’s mining challenge is the need for reliable geological data and transparent reporting, which are essential to attract meaningful investment, according to Ernst & Young.

Misleading or incomplete exploration results can erode investor confidence, as seen in historical cases like the Bre-X scandal.

With systematic exploration having declined since the mid-1990s, adopting internationally aligned standards such as CRIRSCO is critical. Even modest increases in credible exploration could significantly boost Zimbabwe’s appeal to global investors.

Speaking at a recent event in the capital, Eng. Godknows Njowa, a Partner at Ernst & Young, said documenting and communicating findings properly is key, calling for increased exploration.

“Once we understand the geology, we need to be able to convey the same message to investors… you need to use the industry reporting standards to be able to convey what we have found, what we expect, and how we have done it. Exploration is not just about finding minerals — it’s about building the geological understanding that underpins the entire mining operation. Once that knowledge is properly documented and reported according to international standards, investment will follow,” he said.

His remarks underscore why exploration is central to any sustainable mining strategy.

Most global exploration funding is directed toward existing mines or feasibility studies on known deposits, leaving only 22% allocated to new greenfield projects. This trend is mirrored in Zimbabwe, where underinvestment in greenfield exploration limits the country’s potential to discover new deposits and fully develop its mineral wealth.

Over the past two decades, commodity price fluctuations have shaped mining strategies worldwide.

Rising prices increased resource nationalism, as governments sought to maximize benefits from mineral wealth. Conversely, during low-price periods, mining companies focused on cost-cutting, productivity improvements, and technology adoption.

Throughout these cycles, workforce skill shortages and capital allocation challenges have remained persistent pressures for the sector.

Recent global disruptions, including COVID-19 and geopolitical tensions, have further reshaped the investment landscape.

Mining companies are increasingly prioritising long-term growth, making licensing, productivity, capital allocation, and resource and reserve management central to strategic planning.

This global context highlights the urgency for Zimbabwe to strengthen its exploration and reporting practices.

Within Africa, exploration spending is concentrated in Ghana, Côte d’Ivoire, South Africa, and the Democratic Republic of Congo.

Zimbabwe accounts for only 2% of the continent’s exploration budget, underscoring the need for strategic investment to remain competitive in attracting global mining capital.

Eng. Njowa emphasised the urgency of action, linking Zimbabwe’s opportunity to current market conditions:

“For gold, this is our time. Prices are at their highest in decades, and our deposits are still shallow. If we don’t act now, we risk missing this generation’s opportunity.”

Experts say Zimbabwe could attract global investment by aligning with international reporting standards such as CRIRSCO, following industry best practices, and increasing geological and greenfield exploration.

Proper exploration would also address the threats highlighted in EY’s Top 10 Risks report, transforming potential risks into actionable opportunities for growth.

Without immediate action, Zimbabwe risks losing ground to better-prepared mining jurisdictions. Targeted exploration, proper capital allocation, transparent reporting, and adherence to international standards are essential for unlocking the country’s mineral wealth and driving sustainable economic growth.

Zimbabwe’s mineral revenues are expected to close 2025 at US$7 billion before rising to US$7.5 billion in 2026, a 7 per cent increase driven by firmer commodity prices and growing gold output, Mining Zimbabwe can report.

By Ryan Chigoche

These revised earnings forecasts were issued by the Chamber of Mines of Zimbabwe (CoMZ) in its newly released Mining Prospects 2026 report, marking a significant upward revision from the chamber’s earlier projection of US$6 billion and US$6.5 billion for the same period.

This stronger outlook comes as Fidelity Gold Refinery (FGR) is projecting gold deliveries of 45 tonnes by year-end, surpassing initial expectations of 40 tonnes.

Producers have been ramping up output to take advantage of soaring bullion prices, which have surged by more than 50 per cent this year to US$4,159.52 per ounce and are forecast to reach US$4,900 next year.

“Mineral earnings are expected to reach US$7.5 billion in 2026 from approximately US$7 billion in 2025. This growth is expected to be driven by anticipated strong output performance and favourable commodity prices. Gold and PGMs are expected to account for more than 70% of mineral earnings in 2026,” CoMZ’s report revealed.

Building on this positive outlook, the survey noted improving sentiment among mining executives regarding global market conditions.

“Commodity market conditions are expected to improve. Respondent mining executives are generally optimistic about prospects of improved commodity market conditions in 2026, with a measured index of +18. Most respondents are expecting prices for key commodities such as PGMs, lithium and gold to firm up in 2026.”

However, despite the optimism around commodity markets, the chamber cautioned that several domestic pressures could temper growth. Key concerns cited include taxation, regulatory bottlenecks, and unreliable power supply.

“Mining fiscal framework expected to worsen. Mining executives are generally pessimistic about the prospects for an optimal fiscal regime in 2026, with a measured index of -13,” the report stated. “The executives indicated that they are already experiencing increased pressure from the government and Zimra to collect more revenue from the mining industry and are concerned that the government may introduce new taxes or increase existing ones in 2026.”

Among other bottlenecks expected to weigh on the 2026 projection, the report notes ongoing power shortages that have forced miners to invest heavily in alternative energy, leaving respondents “generally pessimistic about power supply availability at their operations in 2026 with a measured index of -6.3.” Concerns over access to foreign currency are also mounting due to the 70 per cent retention threshold and uncertainty surrounding de-dollarisation, with the chamber warning that “availability of foreign currency may worsen in 2026.”

The outlook is further constrained by policy uncertainty, as executives “expect the mining policy and legislative environment to remain suboptimal in 2026,” citing delays in finalising key laws and frameworks, including amendments to the Mines and Minerals Act and unresolved issues under the Use It or Lose It policy.

Speaking at the report launch, Mines and Mining Development Minister Winston Chitando said the government would meet stakeholders to address the concerns raised.

“We will engage outside this (launch) on the results of this survey so that when we meet again next year, those areas that were negative will have been addressed,” he said.

“Those areas where there were negative perceptions will have been addressed. We are going to engage to ensure that we have a mining environment which has the right ingredients for the success of the industry,” he added.

While their contribution to the national fiscus is undeniable, artisanal mining, although a reserved sector for citizens, has been trapped in a legislative paradox that leaves its practitioners vulnerable and disenfranchised, Mining Zimbabwe can report.

By Rudairo Mapuranga

The Indigenisation and Economic Empowerment Act [Chapter 14:33] explicitly reserves artisanal mining for Zimbabwean citizens, yet the nation’s primary mining legislation contains no formal definition of what constitutes artisanal mining or who qualifies as an artisanal miner.

The fundamental oversight has created a governance vacuum where the very citizens the law seeks to protect operate in a state of legal ambiguity, subject to inconsistent enforcement and unable to access the full benefits of their reserved status. Despite producing over 60% of Zimbabwe’s gold output and sustaining livelihoods for millions, artisanal miners remain caught between empowering legislation and implementing statutes that fail to recognise their existence.

Zimbabwe’s approach to artisanal mining is caught between two conflicting legislative intentions. On one hand, the Indigenisation and Economic Empowerment Act, reinforced by the Finance Act No. 1 of 2018, unmistakably reserves artisanal mining for “citizens of Zimbabwe.” This provision was designed to ensure that the nation’s citizens directly benefit from the mineral wealth beneath their soil. On the other hand, the Mines and Minerals Act (Chapter 21:05), the very statute that should provide the operational framework for all mining activities, remains silent on defining artisanal mining. This omission creates a foundational ambiguity with several critical consequences:

a) Unclear Eligibility and Status: Without a legal definition, determining who qualifies as an artisanal miner remains subjective. This ambiguity strips miners of a clear legal identity, making it difficult to claim rights, access support services, or formalise their operations.

b) Barriers to Formalisation and Protection: The legislative gap prevents the development of a tailored regulatory framework that could protect artisanal miners. This includes access to secure financing, safety standards, and fair market channels, leaving them in a perpetual state of informality and vulnerability.

c) Vulnerability to Selective Enforcement: The lack of a clear legal standing makes artisanal miners easy targets for enforcement actions, while other actors may operate with comparative impunity due to the same regulatory ambiguity.

This contradictory stance, simultaneously reserving the sector while failing to define it, has created a governance vacuum where selective enforcement can thrive, often to the detriment of the local miners the law was designed to protect.

Despite its informal status, artisanal and small-scale mining (ASM) represents a critical component of Zimbabwe’s economy, particularly in a context of high unemployment and economic challenges. The sector is a vital source of livelihood, providing income for millions of Zimbabweans. Globally, artisanal mining supports the livelihoods of an estimated 130 to 270 million people, and in sub-Saharan Africa, over eight million people work directly in ASM, with more than 45 million relying on it indirectly.

In Zimbabwe, the sector’s contribution is substantial. Artisanal and small-scale miners are responsible for a significant portion of the country’s gold production, contributing over 60% of this key export mineral. This is crucial for a sector that accounts for more than 13% of Zimbabwe’s Gross Domestic Product (GDP) and attracts substantial direct investment into the country. The sector provides essential employment opportunities, especially in rural areas where formal jobs are scarce, making it a vital economic cushion for the country.

The consequences of Zimbabwe’s legal ambiguity and selective enforcement are starkly illustrated in the case of a local miner who found himself in a dispute with a Chinese-owned mining entity. This case exemplifies the uneven application of environmental and mining regulations.

The conflict emerged when the Chinese entity accused the miner of conducting environmentally destructive operations along a river, specifically using hazardous chemicals like cyanide within a protected zone. Following this complaint, the Environmental Management Agency (EMA) investigated and confirmed that the miner had indeed violated his Environmental Impact Assessment (EIA) licence by mining too close to the riverbank. The agency subsequently suspended his operations until he complied with environmental regulations.

However, the situation took a revealing turn. The miner successfully obtained an order from a local magistrates’ court allowing him to resume mining — a ruling that legal experts subsequently challenged as irregular, arguing that magistrates lack the jurisdiction to overturn decisions of a statutory body like EMA. Meanwhile, the Chinese entity that reported him was itself mired in controversy. At one of its associated operations, it was recently convicted of a massive gold ore theft and ordered to pay US$875,667.67 in restitution. Furthermore, the same entity was accused of creating a new, illegal syndicate to circumvent this conviction and continue its activities.

This case highlights a disturbing pattern: while a local miner faced immediate regulatory action for environmental violations, the Chinese entity, despite being involved in serious legal breaches, including theft and fraudulent schemes, continued to operate and even positioned itself as a champion of environmental compliance. This duality underscores a system where accountability appears to be applied selectively, often to the disadvantage of local miners.

The disparities in environmental regulation extend beyond individual cases to broader patterns of enforcement. While local artisanal miners are frequently penalised for environmental breaches, larger Chinese operations often face less severe consequences, even for significant violations.

For instance, one Chinese mining company was fined US$520,000 by the Environmental Management Agency for conducting gold mining activities without an environmental impact assessment certificate. Despite this substantial fine and an order to cease all operations, subsequent reports from the ranch owner indicated that the company continued to mine, leading to further legal action. This case is not isolated. Across Zimbabwe, Chinese mining ventures have been linked to widespread environmental degradation, including water pollution, habitat loss, and landscape destruction that threaten local ecosystems and agricultural livelihoods.

In response to growing public anger over such environmental damage, the Zimbabwean government has announced sweeping reforms. The forthcoming Responsible Mining Initiative Part 2 will introduce one of the sector’s toughest enforcement regimes yet, with Mines Minister Winston Chitando stating that companies could lose their operating licences for environmental violations. This shift from voluntary compliance to strict enforcement reflects the government’s recognition of the severe ecological toll of unregulated mining, though its impartial application remains to be seen.

The inconsistent enforcement of mining regulations and the legal ambiguity surrounding artisanal mining have profound implications for Zimbabwe’s governance, economic development, and social fabric.

a) Erosion of the Rule of Law: When laws are applied selectively based on the identity of the operator, it undermines the fundamental principle of equality before the law. This erosion fosters a culture of impunity where powerful actors can circumvent regulations while smaller players bear the brunt of enforcement.

b) Economic Disempowerment: The Indigenisation and Economic Empowerment Act’s goal of empowering Zimbabwean citizens is fundamentally undermined when the reserved sector lacks the legal framework to operate securely. Without formal recognition, artisanal miners cannot access credit, technical support, or fair market prices, perpetuating cycles of poverty and informality.

c) Social and Environmental Costs: The ongoing conflicts and environmental degradation create social strife and long-term ecological damage that communities will grapple with for generations. Addressing these issues requires not only better enforcement but a fundamental rethink of how mining is regulated.

The reservation of artisanal mining for Zimbabwean citizens in the Indigenisation and Economic Empowerment Act represents a powerful commitment to economic sovereignty. However, this promise remains hollow without the necessary legal framework to define, protect, and support these miners. The continued legislative silence in the Mines and Minerals Act creates a vacuum that enables selective enforcement and unequal application of environmental standards.

For Zimbabwe to truly honour the spirit of its empowerment legislation, several critical steps are necessary. First, the urgent incorporation of a clear legal definition of artisanal mining in the forthcoming Mines and Minerals Bill is paramount. This definition must provide a foundation for recognising miners’ rights and responsibilities. Second, consistent and impartial enforcement of environmental and mining regulations across all operators, regardless of origin, is essential to level the playing field. Finally, developing pathways to formalisation would help integrate artisanal miners into the formal economy, providing them with security, support, and the opportunity to contribute even more significantly to Zimbabwe’s development.

Until Zimbabwe resolves the fundamental contradiction in its approach to artisanal mining, the sector will continue to be characterised by the very inequalities the Indigenisation Act was designed to eliminate. The definitional vacuum surrounding artisanal mining undermines not only environmental protection but also the economic empowerment of the Zimbabwean citizens in whose name the sector has been reserved.

The Ministry of Finance and Investment Promotion has, in the 2026 National Budget, introduced a harmonised tiered royalty structure for gold and the Quoted Price Method for mineral exports. Both measures, which take effect in January 2026, are aimed at boosting mining revenues and closing long-standing loopholes, Mining Zimbabwe can report.

By Ryan Chigoche

Finance Minister Mthuli Ncube said these reforms are designed to seal gaps in the current tax regime, gaps he argues have been exploited by miners and have prevented the government from earning a fair share of revenue during periods of strong commodity prices, while investors reap the main benefits.

This development contradicts industry expectations. For years, miners through the Chamber of Mines Zimbabwe have lobbied for a reduction in taxes, arguing that the current effective rate of around 14% is already too high. However, in the 2026 budget, Ncube took the opposite view, describing the existing framework as too generous relative to industry earnings.

This debate comes at a time when mining revenue has been expanding rapidly, driven by the surge in gold prices and the rise of new minerals such as lithium.

Mining Gross Revenue grew from US$4.948 billion in 2023 to nearly US$6 billion in 2024, while fiscal contributions rose from US$671 million to US$747 million over the same period. This year, buoyed by record bullion prices, the sector is projected to surpass US$7 billion in earnings.

Against this backdrop, Ncube argued that the current tax structure is failing to capture a fair share of this growth. He noted that despite escalating commodity prices, the Fiscus is not benefiting proportionately, with most of the gains accruing to investors.

“Whilst mining companies contend that high royalties discourage investment and exploration, statistics on mining revenues indicate that the Fiscus is not benefiting from increased mining activity and commodity booms. Ultimately, a significant portion of the profits accrues to investors,” he said.

He added that the historic surge in global gold prices, exceeding US$4,000 per ounce as of October 2025, presents a strategic moment for the government to strengthen value retention without undermining investment.

“International gold prices have reached historically high levels… This exceptional price environment presents a strategic opportunity for both Government and mining operators to enhance value retention from the mineral resource, whilst ensuring continued investment and viability in the gold subsector,” he said.

Ncube explained that fixed royalty rates on most minerals limit fiscal responsiveness to commodity price movements. To address this, he proposed harmonising and reviewing royalty rates for all gold producers under a tiered system effective 1 January 2026.

Under the new structure, royalties will be set at 3% when gold prices range between US$0 and US$1,200 per ounce, 5% when prices are between US$1,201 and US$2,500, and 10% for prices above US$2,501.

Justifying the shift, Ncube said the current system, where small-scale and large-scale producers pay different rates, has created administrative complexities and opportunities for tax arbitrage.

He warned that these differences have been exploited through misreporting, under-declaration and strategic restructuring of ownership.

The minister also highlighted persistent challenges with transfer pricing, where opaque contracts and related-party sales have allowed companies to declare lower taxable profits.

“Notable schemes include related-party transactions of minerals, which are often undervalued through opaque transfer pricing practices such as market price adjustments and intercompany agreements,” he said.

To tighten controls, the government is introducing the Quoted Price Method as the primary transfer pricing rule for mineral exports.

This method relies on globally recognised price benchmarks, including the London Metal Exchange, Metal Bulletin and the Shanghai Metals Market, to ensure minerals are valued in line with prevailing international prices.

For decades, the mining industry has been the backbone of Zimbabwe’s economy, accounting for over 60% of export earnings and supporting hundreds of thousands of jobs. However, instead of merely driving growth, the government now wants the sector to contribute a more equitable share of national revenue through these strengthened fiscal measures.

Despite contributing over 60% of Zimbabwe’s export earnings and approximately 12% to GDP, the Ministry of Mines and Mining Development has once again received disproportionately low funding in the 2026 national budget, raising serious concerns about the financial commitment to harnessing the mineral sector for economic transformation, Mining Zimbabwe can report.

By Rudairo Mapuranga

The 2026 National Budget, presented by Finance Minister Mthuli Ncube, has allocated ZiG 789 million (approximately US$26.3 million) to the Ministry of Mines and Mining Development, representing a mere 1.05% of the total budget. This allocation comes despite the mining sector being poised for a strong rebound in 2026, with the Chamber of Mines projecting exports of up to US$6.5 billion.

The disparity in funding becomes stark when comparing the mining allocation to other ministries. The Ministry of Health received a colossal ZiG 47.4 billion (approximately US$1.58 billion), while Primary and Secondary Education was allocated ZiG 30.4 billion (approximately US$1.01 billion). These sectors are undoubtedly vital, but the scale of the difference is difficult to reconcile with mining’s role as the primary foreign exchange earner.

Even the Ministry of Transport and Infrastructure, tasked with critical road rehabilitation, was allocated ZiG 4.6 billion (approximately US$153.3 million). Meanwhile, the Ministry of Defence, while important for national security, continues to command a significant portion of the budget, with the broader security sector receiving a staggering ZiG 46.8 billion (approximately US$1.56 billion).

Further scrutiny reveals allocations to ministries whose immediate economic impact is less tangible. The newly established Ministry of Skills Audit and Development was allocated ZiG 229 million (approximately US$7.63 million). While understanding the nation’s skills base is important, many question the necessity of a fully funded ministry for this task at a time when core economic engines may be in need of more resources.

Within its constrained budget, the Ministry of Mines must address multiple critical failures. The modernisation of the mining cadastre system remains underfunded, perpetuating delays and a lack of transparency in title management. The ministry also lacks sufficient vehicles for mine inspections, hampering efforts to enforce responsible mining practices and environmental regulations. Furthermore, inadequate survey capacity leads to bottlenecks in the release of mining titles, creating uncertainty.

Perhaps the most significant casualty of this underfunding is exploration. Zimbabwe’s geological potential is vastly under-explored, and the government has no capacity to fund a meaningful national exploration program. To properly identify new mineral deposits, the ministry requires funding to support the exploration of at least 100,000 hectares annually, a goal that is impossible with the current budget of US$26.3 million. This lack of exploration directly limits the pipeline of new mines and future investment, effectively mortgaging the country’s long-term economic prospects.

The consequences of underfunding the Ministry of Mines extend beyond bureaucratic inefficiencies. They directly translate into lost investment opportunities, reduced royalty collections from inadequate monitoring, and environmental damage from insufficient oversight.

As Zimbabwe pursues its Vision 2030, prioritising investment in the institutions that manage the country’s most valuable economic assets is not just prudent, it is essential. The government must align its budgetary allocations with its economic rhetoric. Increasing the mining ministry’s budget to a level commensurate with its contribution is a critical first step in signalling a genuine commitment to sustainable economic transformation.

The Zimbabwean government will launch the “Responsible Mining Initiative Part 2” by the end of this year, a policy framework that will introduce some of the sector’s toughest enforcement measures to date, Mining Zimbabwe can report.

By Rudairo Mapuranga

The announcement was made by the Minister of Mines and Mining Development, Hon Winston Chitando, at the State of the Mining Industry Report event. Minister Chitando unveiled that the new initiative will enforce a strict zero-tolerance policy towards environmental damage, with the most severe penalty being the revocation of operating licenses for violators. He explicitly stated that the document will “entail loss of title for those who damage the environment,” sending a clear warning to all industry operators.

The Minister emphasised that the initiative is designed to rigorously address the “totally unacceptable” level of degradation in certain mining areas and will serve as a firm alert on non-compliance with existing laws. This new framework represents a significant shift from guidance to mandatory enforcement, placing a paramount emphasis on protecting the environment and improving the industry’s social license to operate. The government is set to communicate the official launch date to the Chamber of Mines and other industry representatives by the end of the week, with a strong urging for full attendance to understand the gravity of the new measures.

This groundbreaking policy introduces an unprecedented level of risk for mining entities that fail to adhere to environmental standards. The threat of losing one’s mining title addresses a critical gap in previous enforcement mechanisms, which often lacked the teeth to deter powerful and recalcitrant operators. The initiative underscores the government’s commitment to ensuring that the economic benefits of mining are not derived at the cost of ecological destruction and community well-being. By making the security of a mining lease contingent upon exemplary environmental stewardship, the government aims to catalyse a fundamental change in industry behaviour.

The Responsible Mining Initiative Part 2 dovetails with broader legal reforms, including the pending Mines and Minerals Bill, which also seeks to modernise the country’s mining legislation and strengthen environmental protections. This comprehensive approach signals a coordinated effort to bring clarity and higher standards to the sector. The government’s stance acknowledges that the long-term viability of Zimbabwe’s mining industry, which contributes over 60% of the country’s export earnings, is inextricably linked to its sustainability and social responsibility. The success of this bold initiative will hinge on its consistent and impartial implementation, a process that the nation and its communities will be watching with keen interest as the government prepares to unveil the full document.