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Mining Contracts Lifts Masimba Holdings Cashflows, but Margins Under Pressure

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Masimba Holdings’ 2025 performance was supported in part by growing exposure to private sector contracts, including mining-related infrastructure work, which helped lift revenue and strengthen cash flows. However, rising costs continued to weigh on profitability, resulting in a decline in margins, Mining Zimbabwe can report.

By Ryan Chigoche

Revenue rose 9.6% to ZWG1.6 billion for the year ended 31 December 2025, driven by increased activity in private sector projects. Within this mix, mining-linked infrastructure work played a supporting role, alongside housing and commercial developments, as the contractor deepened its exposure to clients outside the public sector.

Operating cash flows increased 68% to ZWG129 million, while working capital improved to ZWG500 million, reflecting stronger collections from private clients. The shift toward privately funded projects, including mining-related contracts, helped ease long-standing payment delays typically associated with government infrastructure work.

Private sector contracts now account for 56% of total revenue, up from 46% a year earlier, underscoring the group’s gradual pivot toward mining and other non-state-driven projects. While Masimba does not disclose mining revenue separately, industry exposure through civil works and infrastructure delivery continues to grow.

The group’s order book stood at US$278 million, covering mining, housing, and broader infrastructure projects. Management cautioned, however, that execution timelines remain sensitive to domestic liquidity constraints, particularly in public sector-linked work.

Despite stronger cash generation, profitability weakened. EBITDFVA declined 10% to ZWG319 million, with margins narrowing from 24% to 20% as cost inflation outpaced revenue growth.

Mining and heavy civil engineering projects are typically cost-sensitive, and the results suggest that while activity levels have improved, particularly from private sector and mining-related contracts, rising input costs are limiting the translation of higher volumes into stronger earnings.

Profit before tax rose marginally to ZWG220 million, supported by a ZWG39 million fair value gain on investment properties. Excluding this one-off gain, underlying profit before tax fell 17% to ZWG181 million, reflecting weaker core performance.

Capital expenditure increased to ZWG109 million, directed toward an asphalt plant and quarry operations aimed at strengthening the group’s capacity to service infrastructure demand, including mining-related supply chains such as roadworks and materials.

The expansion was partly funded through borrowings, with total debt rising 30% to ZWG107 million, increasing balance sheet pressure in a lower-margin environment.

Despite the earnings pressure, the board declared a 30% increase in dividends to 0.61 US cents per share, supported by stronger cash flows.

Eureka Gold Mine Beats 2025 Target, Continues Production Growth Streak

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Eureka Gold Mine Beats 2025 Target, Continues Production Growth Streak
  • Eureka Gold Production Rises 1.46% in FY2025, Extends Beat Streak with Strong January Performance

Eureka Gold Mine has delivered another year of robust operational performance, surpassing its full-year 2025 production forecast and extending its impressive track record of beating budget targets into the new year, Mining Zimbabwe can report.

By Rudairo Mapuranga

The Guruve-based mine, owned by Dallaglio Investments, recorded actual gold production of 1,969.5 kilogrammes for the 2025 financial year, exceeding the forecast target of 1,941.2 kg by 1.46 per cent. This follows the mine’s exceptional 2024 performance, when it produced 1,811.03 kg, a 6.69 per cent increase above its annual target of 1,697.37 kg.

The momentum has carried strongly into 2026, with January actual production reaching 183.8 kg against a budgeted 174.4 kg, representing a 5.39 per cent overperformance for the first month of the year.

Eureka’s consistent budget-beating performance has become a hallmark of its operations. Throughout 2024, the mine demonstrated sustained growth across all quarters:

Q1 2024: Actual production of 402.12 kg exceeded the budget of 395.48 kg by 1.68 per cent

Q2 2024: Production rose to 414.86 kg, surpassing the 394.25 kg forecast by 5.23 per cent, with quarter-on-quarter growth of 3.18 per cent

Q3 2024: Output increased to 456.11 kg against a budget of 428.13 kg, a 6.54 per cent beat and 9.93 per cent growth from the previous quarter

Q4 2024: The strongest quarter saw production reach 537.93 kg, exceeding the 479.52 kg budget by 12.19 per cent, with remarkable 17.99 per cent quarter-on-quarter growth

2025 Performance Maintains Excellence

The trend of exceeding expectations continued through 2025. In the first quarter, Eureka produced 438 kg, surpassing its 409 kg target by 7.09 per cent. Monthly production remained steady, with May 2025 output of 178.7 kg representing a marginal 0.05 per cent increase from April’s 178.6 kg.

The third quarter of 2025 demonstrated the mine’s resilience, producing 494 kg against a budget of 492.9 kg, a narrow but significant 0.22 per cent overrun. This followed an exceptionally strong second quarter, where production hit 530.4 kg, surpassing the budget of 483.3 kg by an impressive 9.74 per cent.

Infrastructure Investment Driving Reliability

Speaking to Mining Zimbabwe earlier, Eureka General Manager Nelson Banda attributed the mine’s consistent performance to “a combination of operational discipline and long-term planning.”

A key enabler of Eureka’s dependable output is its tailings infrastructure investment strategy, with US$4 million allocated in 2025 to expand its Tailings Storage Facility (TSF). To date, over US$12 million has been invested in the TSF programme, ensuring environmental compliance, uninterrupted processing, and long-term sustainability.

“The capex is part of an ongoing annual investment into the TSF construction programme. The facility is currently downstream and will transition into a modified upstream arrangement in 2026,” Banda explained.

Eureka’s TSF is among the most technologically advanced in the country, featuring pressure sensors, flow meters, delivery line interlocks, and 24/7 CCTV surveillance. Water recycling systems have also been implemented to promote sustainability and reduce environmental impact.

The mine’s ISO 14001 certification and progress toward compliance with the Global Industry Standard on Tailings Management (GISTM) further demonstrate its commitment to world-class practices.

Path to Two Tonnes and Beyond

The mine is on track toward significant production milestones. By December 2025, Eureka was approaching two tonnes of annual gold production, underscoring its steady recovery and growth following its revival under Zimbabwe’s “open for business” policy.

Milling capacity has risen to 120,000 tonnes per month, enabling sustained increases in gold output. “We started operations in September 2021; since then, we have been doing very well in terms of gold production. We quickly hit our capacity in terms of plant production. We are now milling 120,000 tonnes per month,” Banda said.

Addressing power supply challenges, the mine has commenced construction of a solar farm. In February 2026, Solarcentury Africa and Dallaglio signed an agreement to build a 7 MWp solar plant for Eureka Gold Mine, representing a significant sustainability step that reduces production costs.

Long-term Outlook Strengthened

Dallaglio’s successful exploration programme has extended the mine’s life from 2032 to 2039, with potential for underground mining beyond that date. The Eureka Mine Mineral Resource estimate stands at 1,199,080 ounces, JORC-compliant, of which 945,807 ounces are in the Measured and Indicated Resource category.

With consistent production levels, sustained infrastructure development, and the January 2026 overperformance extending its beat streak, Eureka Gold Mine continues to cement its position as a benchmark for responsible and reliable gold mining in Zimbabwe. Its role in supporting the nation’s 2030 vision grows more prominent with each passing quarter.

By consistently beating its budgets, even amidst typical operational fluctuations, Eureka is proving that deliberate planning, investment in sustainability, and adherence to global standards are the true drivers of exceptional and reliable performance.

Women in Mining Urged to Seize Opportunity as Zimbabwe’s New Mines Bill Enters Crucial Parliamentary Phase

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Women in Mining Urged to Seize Opportunity as Zimbabwe’s New Mines Bill Enters Crucial Parliamentary Phase

The Chief Director in the Ministry of Mines and Mining Development, Eng. Charles Simbarashe Tahwa, has urged women in the mining sector to actively participate in the legislative process as the new Mines and Minerals Amendment Bill enters a critical phase in Parliament, Mining Zimbabwe can report.

By Rudairo Mapuranga

Speaking at an event organised by the Zimbabwe Women in Mining Association (ZAWIMA) last month, Eng. Tahwa confirmed that the bill is no longer under executive review but is now formally under parliamentary consideration.

“It’s now under the parliamentary process,” Eng. Tahwa said. “It will go through its first reading. It will go through its second reading, where comments will be required to be submitted.”

He stressed that organisations and individuals must not be passive observers.

“Please, don’t lose that opportunity,” he added. “As an organisation, you are also free to put your comments in respect of the area that you want to address.”

The proposed legislation, gazetted in June 2025 as H.B. 1, 2025, seeks to replace the Mines and Minerals Act of 1961. The current law has been widely criticised by stakeholders as archaic and misaligned with Zimbabwe’s economic aspirations under Vision 2030.

President Emmerson Mnangagwa highlighted the bill during his 2025 State of the Nation Address, noting that it is expected to be finalised during the current parliamentary session.

The draft bill introduces several radical shifts in mineral rights and community engagement, which include:

Strategic Minerals Clause: The bill empowers the Minister to declare specific minerals “strategic,” requiring investors to commit a minimum of US$1 million or enter into structured partnerships with the government.

Landowner Rights: For the first time, the legislation explicitly allows farmers and landowners to negotiate benefits, including potential equity shares in mining companies, before relocation or mining commences. Deputy Minister of Mines and Mining Development, Dr. Caleb Makwiranzou, recently told the Senate that this aims to end long-standing conflicts between miners and rural communities.

Digitisation: The bill provides for a modern Mining Cadastre Register to replace the current manual systems, aiming to enhance transparency, reduce corruption, and secure tenure for small-scale and women miners.

While the bill modernises operations, analysts warn that its gender-neutral language may inadvertently sideline women. A recent Gender Impact Assessment Report noted that women face specific barriers, such as access to financing, land ownership rights, and exposure to toxins like mercury, that are not explicitly addressed in the current draft.

Eng. Tahwa’s call to action suggests that the second reading is the optimal time for ZAWIMA and other bodies to submit amendments addressing these specific gaps.

The parliamentary calendar for the second reading has not yet been announced, but stakeholders are advised to prepare submissions. Once the bill passes the second reading, it proceeds to the committee stage for clause-by-clause amendments before the third reading.

“We are charting a decisive path,” Eng. Tahwa said, emphasising that the door for input is still open but will not remain so indefinitely.

Gold Deliveries Rise 8.2% in First Quarter as March Slump Exposes Policy Fallout

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Gold Deliveries Rise 8.2% in First Quarter as March Slump Exposes Policy Fallout

Zimbabwe’s gold deliveries increased 8.2% in the first quarter of 2026 to 9,311.92 kg from 8,599.10 kg in Q1 2025, according to the latest statistics from Fidelity Gold Refinery (FGR).

By Rudairo Mapuranga

However, the March performance tells a different story, with total deliveries falling 16.4% month-on-month to 2,854.00 kg from 3,412.95 kg in February.

The March slowdown was not primarily about rainfall. Industry sources point to the short-lived 10% ZiG retention policy and payment disruptions linked to the Middle East conflict as the main drivers of the decline.

Small-Scale Miners Bear the Brunt

Small-scale deliveries in March 2026 fell to 1,748.70 kg, a 30.8% decline from 2,525.65 kg in February and a 6.2% decline from 1,864.99 kg in March 2025. This marks the first significant year-on-year drop for the ASM sector in recent memory, coming just weeks after the RBZ introduced the 90:10 framework requiring miners to receive 10% of proceeds in ZiG.

For the first quarter as a whole, small-scale miners delivered 6,510.91 kg, a 12.8% increase from 5,770.86 kg in Q1 2025 but a 37.1% decline from 10,345.95 kg in the fourth quarter of 2025.

Large-Scale Miners Show Rare Recovery

Large-scale producers delivered 1,105.31 kg in March 2026, a 24.6% increase from 887.30 kg in February and a 14.0% increase from 969.28 kg in March 2025 — the first significant year-on-year growth for the segment in months.

First-quarter large-scale deliveries totalled 2,801.01 kg, a marginal 1.0% decline from 2,828.24 kg in Q1 2025 and a 6.2% decline from 2,985.02 kg in Q4 2025.

Policy Reversal Came Too Late

The RBZ suspended the 10% ZiG retention on March 24, acknowledging “implementation challenges” and that many miners are not banked. But the damage was done. For the weeks the policy was in effect, delayed ZiG payments and the inability to use local currency for imported inputs, diesel, explosives, and spares forced many small-scale operators to scale back or seek informal buyers.

A gold buyer told Mining Zimbabwe, “Money has not been circulating in the gold industry. We are short of money to buy the gold that is there.”

Compounding the policy disruption, the Middle East conflict has affected payment channels for gold exporters who rely on UAE markets, which take a major share of Zimbabwe’s gold shipments.

Total first-quarter deliveries of 9,311.92 kg represent an 8.2% increase year-on-year but a 30.1% decline from the record fourth quarter of 2025. With the 10% ZiG policy now suspended and full USD payments restored, the stage is set for a recovery in April. But March’s 16.4% monthly decline serves as a warning: policy missteps have consequences, and the 50-tonne annual target depends on getting implementation right.

MINEX 2026 Marks Turning Point in Funding Access for Small-Scale Miners – YMF

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MINEX 2026 Marks Turning Point in Funding Access for Small-Scale Miners – YMF

Access to finance for small-scale miners dominated discussions at MINEX 2026, with the Young Miners Foundation (YMF) describing the platform as a breakthrough moment for unlocking capital into the sector, Mining Zimbabwe can report.

By Ryan Chigoche

For years, access to bank funding has remained a major constraint for artisanal and small-scale miners, largely due to the sector’s informal structure, high-risk profile, and lack of tailored financial products.

Many commercial banks have traditionally been reluctant to lend to miners, often citing the absence of specialised mining desks and limited understanding of the industry’s operational cycles, leaving most operators reliant on informal financing or self-funding.

Speaking to Mining Zimbabwe, YMF Chief Executive Officer Payne Kupfuwa said the conference provided rare, direct engagement with financial institutions, offering clarity on funding pathways that have long remained out of reach for many miners.

“The MINEX 2026 was an eye-opener for us as the Young Miners Foundation family because one of the key issues that always affects us in production are issues to do with funding of our mining projects. Issues around financing and funding were discussed because there were quite a number of financial institutions that were exhibiting and participating in the discussions at MINEX 2026, giving us hope and enlightenment on how best we can actually access funding from their institutions, and they showed great willingness to support young miners and small-scale miners in terms of funding to boost efficiency,” he said.

The strong participation of lenders and financiers at the event marks a shift in engagement with small-scale miners, a segment that has historically struggled to secure formal funding despite its growing contribution to mineral output.

Beyond funding, the conference also focused on broader sector development issues.

The Deputy Mines Minister, who was the Guest of Honour, Fred Moyo, emphasised the need for formalisation, including the creation of a structured database of miners to improve access to financing facilities being developed in partnership with Fidelity Gold Refinery.

MINEX 2026 brought together a wide spectrum of stakeholders, including academic institutions such as the Zimbabwe School of Mines, financial institutions, consultants, insurers, and legal firms, creating a comprehensive platform for collaboration across the mining value chain.

Discussions also covered safety, health, and environmental compliance, as well as emerging trends such as artificial intelligence in mining and new opportunities in hydrogen exploration.

The event further provided networking opportunities for young miners to engage directly with industry players, with YMF indicating that connections made during the conference are already being leveraged to improve project development and long-term sustainability.

Zimbabwe Bans Short-Term Mining Contracts, Forces 12-Month Minimum

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Zimbabwe Bans Short-Term Mining Contracts, Forces 12-Month Minimum
  • New labour rules are effective immediately, targeting exploitative rolling one-month deals

Zimbabwe’s mining industry has outlawed the practice of placing workers on consecutive one-month contracts, a move that effectively guarantees every mineworker a minimum employment term of 12 months under newly registered labour rules, Mining Zimbabwe can report.

By Rudairo Mapuranga

Statutory Instrument 71 of 2026, a collective bargaining agreement registered under the Labour Act, explicitly states that “all contracts shall be for a period of not less than twelve months.” Any contract shorter than that, unless for genuine casual, seasonal, or specific project work, is automatically deemed a permanent contract without limit of time.

The provision strikes at a common industry tactic where companies repeatedly renew very short-term contracts, leaving workers without job security, benefits, or access to leave entitlements for years. Under the new rules, employers may renew a fixed-term contract only twice. After that, “an employee shall be deemed to be… on a contract without limit of time.”

Defining the ‘Contract Worker’

The agreement redefines a “contract worker” as someone engaged for a period of “twelve months and above.” Any contract below that threshold that is not for casual work, seasonal work, or a specific task or project will be treated as a permanent contract from day one.

“This closes a loophole that has been used to create a class of workers who are perpetually temporary,” said a labour lawyer familiar with the negotiations. “For years, miners have been kept on 30-day cycles, renewed month after month, with no annual leave, no housing allowance, and no path to permanency.”

Leave and Termination Rights

The new rules carry significant financial and operational consequences for employers. Contract workers on terms of more than one year are now entitled to take annual leave rather than merely receiving a cash payout at termination. Termination notice periods are also sharply defined: three months for indefinite contracts or those of two years or more, two months for contracts of one to two years, and one month for six-to-twelve-month deals.

Crucially, any employee who has had a fixed-term contract renewed twice automatically converts to permanent status on the day of the second renewal.

Industry Context and Exemptions

The mining industry has been a cornerstone of Zimbabwe’s economy, but labour practices have drawn criticism from unions. The Associated Mine Workers of Zimbabwe and the Zimbabwe Diamond & Allied Minerals Workers Union, both signatories to the agreement, have long argued that short contracts suppress wages and undermine collective bargaining.

The agreement does allow employers to apply for exemptions from the National Employment Council, but only after discussing the matter with the mine’s works council or affected employees. Exemption applications must be filed within 30 working days of a wage review and must include audited financial statements.

Enforcement and Penalties

The National Employment Council for the Mining Industry is charged with the administration of the agreement. Employers must keep copies freely available for worker inspection, and contracts must be in writing, signed by both parties, with a copy given to the employee.

Any dispute over a worker’s contract status or category can be referred to the council, whose decision is final.

The agreement, which repeals and replaces previous collective bargaining instruments from 1990 and 1993, came into effect upon its publication in the Government Gazette.

Why Australia Benefits from Lithium Without Full Beneficiation, and Zimbabwe is not

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Why Australia Benefits from Lithium Without Full Beneficiation, and Zimbabwe is not
  • Tight fiscal rules, not processing, are the key. Zimbabwe has neither.

There is a persistent assumption in Zimbabwe’s mining policy debate: that the only way to capture value from lithium is to process it locally. Australia proves otherwise.

By Rudairo Mapuranga

Australia is the world’s largest lithium producer. It ships spodumene concentrate to China, just like Zimbabwe. It does not process all its lithium into battery-grade materials domestically. Yet Australia captures significantly more value from its resources than Zimbabwe does.

The difference is not processing. The difference is fiscal discipline.

Speaking at a breakfast meeting on Zimbabwe’s export ban organised by the Zimbabwe Environmental Law Organisation (ZELO), analyst Obert Bore drew a critical distinction.

“There are some countries that are already benefiting even without necessarily going through all the stages of value addition. For example, Australia, but they make sure that their fiscal rules are tight enough for them to get revenue from the royalties,” Bore said.

What does that mean in practice? Australia’s fiscal framework specifies exactly what miners must declare and pay for.

“When you look at the fiscal control, they specify the percentages that are required for processing, for lepidolite, spodumene, and petalite, about 5 per cent processing content requirement,” Bore explained.

Crucially, the Australian system also mandates that companies declare other valuable minerals found in lithium ore.

“It does specify what other resources are found in lithium that should also be claimed for purposes of charging royalties,” he said.

The Hidden Value: Caesium, Tantalum, Niobium

This is where Zimbabwe has been losing billions.

Research conducted by the National Institute of Technology has discovered that Zimbabwe’s lithium ore contains significant quantities of rare elements that are more valuable than the lithium itself.

“Lithium ore exports contain significant rare elements, caesium, tantalum-niobium, and beryllium, which are more valuable than the lithium content we are exporting,” Bore said.

In Australia, these by-minerals would be declared and royalties paid. In Zimbabwe, they have been leaving the country without declaration, without payment, and without any benefit to the nation.

Zimbabwe has the same minerals in its ground as Australia. It has the same buyers in China. What it has lacked is the fiscal framework to ensure it gets paid for what it ships.

The export ban announced on 25 February 2026 is designed to address this gap. By stopping all raw exports until conditions are met, the government is forcing a restructuring of how lithium is valued and declared.

But the ban alone is not the Australian model. Australia does not ban exports. It simply ensures that every tonne leaving its ports is properly declared, properly valued, and properly taxed.

The 11 Conditions: Building an Australian-Style Framework

The 11 conditions issued by Mines Minister Dr Polite Kambamura on 7 April 2026 move Zimbabwe in this direction.

Assay laboratories at each producing mine, within three months, will ensure that mineral content is verified before shipping. Annual financial statements from December 2025 onward will make transfer pricing visible. Monthly progress reports to a ministerial committee will create accountability.

These are the building blocks of the fiscal discipline that Australia has perfected.

The Revenue Arithmetic

The gap is not theoretical. Figures from the Minerals Marketing Corporation of Zimbabwe show that a tonne of concentrate exports is priced at around US$1,500. Process that same material to lithium carbonate, and the value jumps to around US$22,000 per tonne.

Zimbabwe has been earning the low end while its by-minerals, caesium, tantalum, and niobium, have been shipped out without any return.

The Indonesian Precedent

Indonesia offers a different model: full beneficiation through export bans. That country increased nickel revenue from US$1–2 billion annually to US$30 billion by 2023, a tenfold increase driven by domestic processing.

Zimbabwe appears to be pursuing a hybrid approach: using the ban to force compliance while building the fiscal infrastructure to capture value even from concentrate exports once they resume.

Australia proves that a country does not need to process every tonne of lithium to benefit from it. What it needs is the political will to enforce declaration rules, the technical capacity to verify mineral content, and the fiscal framework to tax what is actually being shipped.

Zimbabwe has none of these. Yet.

The ban and the 11 conditions are the beginning of building them. The question is whether the country can execute with the same discipline that Australia has maintained for decades.

As Bore noted, the Australian model is not about banning exports. It is about making sure that when exports happen, the country gets paid for every mineral in every container. That is the lesson Zimbabwe is only now beginning to learn.

Gold buying prices in Zimbabwe per gram/ ounce, 12 April 2026

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Gold buying prices in Zimbabwe per gram/ ounce, 12 April 2026

Gold buying prices in Zimbabwe per gram/ ounce, 12 April 2026, from the official gold buyer and exporter Fidelity Gold Refinery (FGR).

1 oz = 31.1035 g

CategoryPrice ($/g)Price ($/oz)
SG 90% and above141.684,406.74
SG 85% but less than 90%140.184,360.08
SG 80% but less than 85%138.684,313.42
SG 75% but less than 80%137.184,266.76
Sample (5–10g)134.934,196.79
Fire Assay (CASH)142.434,430.07

 

Note: The Fire Assay cash price applies to gold above 100g, with no sample deduction.

A sample of not more than 10g is deducted for the Fire Assay Transfer price.

Understanding the newly introduced SI 71 of 2026 of the Zimbabwe Mining Collective Bargaining Agreement

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Understanding the newly introduced SI 71 of 2026 of the Zimbabwe Mining Collective Bargaining Agreement

HARARE – A landmark agreement for the mining industry has officially been registered, introducing modernised rules for thousands of workers across the country. Known as Statutory Instrument 71 of 2026, this Collective Bargaining Agreement (CBA) replaces decades-old regulations from 1990 and 1993, aiming to bring mining labour practices into the 21st century.

Here is a layman’s guide to the major changes and rules now in effect.

Fair Pay and the “Dollar Value” Rule

One of the most significant pillars of this deal is the “dollar value principle.” This ensures that if a company is already paying its workers more than the industry minimum, it must still apply any newly agreed-upon pay increases on top of those higher rates.

  • Grade System: Workers are categorised into 13 grades across different sectors, like skilled trades and general mining.
  • Acting Pay: If an employee is asked to fill a higher-level role temporarily (acting), they must be paid the higher rate for the entire time they perform those duties.

A Hard Line on Child Labour

The agreement sets strict new standards to protect children. No one under 18 years old can be employed in the mining industry, except as an apprentice or for specific vocational training.

  • Prohibited Tasks: Even as apprentices, those under 18 are strictly banned from “hazardous work,” including underground mining, night shifts, and using heavy power tools or grinding blades.

Stronger Protection for Contract Workers

To prevent the “perpetual contract” trap, the agreement introduces new limits on short-term hiring:

  • Standard Length: All standard contracts must be for at least 12 months.
  • Automatic Permanency: An employer can only renew a contract twice. If a worker is kept on beyond two renewals, they are automatically considered a permanent employee with a contract “without limit of time”.
  • Termination Notice: Depending on how long you’ve worked there, notice periods range from one day (for casual/short-term work) to three months (for those employed over two years).

Working Hours and Benefits

The “new normal” for a mining work week is set at 48 hours.

  • Overtime and Rest: If you are asked to work on a normal day off or a public holiday, you are entitled to double pay (twice the current wage).
  • Shift Work: To protect health, employees cannot be forced to work night shifts for more than four consecutive weeks without their consent.
  • Allowances: The deal outlines specific extra payments for stand-by duty (being available for emergencies) and a 10% premium for those working night shifts (between 6 p.m. and 6 a.m.).

Workplace Harmony: The “Works Council”

Every mine must now have a Works Council, which is a committee made up of an equal number of management and worker representatives. Their job is to solve problems before they become massive disputes and to consult on major changes like new technology, plant closures, or mergers.

Housing and Rentals

For workers living in mine-provided housing, the agreement caps what bosses can charge:

  • Newer Housing: For homes 20 years old or less, rent is capped at 5% of the worker’s minimum wage.
  • Older Housing: For homes older than 20 years, employers can only charge a service fee of 2.5%.

This agreement is binding for all employers and employees in the mining industry, regardless of whether they belong to a union or an employer’s organisation. It aims to balance “productivity and job security” while ensuring that the “fundamental rights of employees” are respected on every mine site in the country.

DOWNLOAD Statutory Instrument 71 of 2026

Zimbabwe Eyes Coal Export Boom as Global Prices Surge on Middle East Tensions

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Zimbabwe Eyes Coal Export Boom as Global Prices Surge on Middle East Tensions

According to BMI, coal prices are holding firm amid escalating geopolitical tensions in the Middle East, a trend that could present Zimbabwe with a timely opportunity to strengthen its position in regional energy markets, Mining Zimbabwe reports.

By Ryan Chigoche

BMI notes that Newcastle thermal coal prices surged by about 23% between late February and the end of March, driven largely by conflict-linked disruptions tied to Iran that have lifted broader energy prices. Although prices have slightly eased, thermal coal remains elevated at around $139 per tonne, well above the 2025 average of $106/t.

The agency attributes this resilience to rising natural gas prices, which are prompting a shift back to coal in key Asian markets. As a result, coal is regaining traction as a dependable and relatively low-cost baseload energy source in a volatile global energy environment.

This global backdrop comes at a time when Zimbabwe is quietly rebuilding its coal export profile. According to the Reserve Bank of Zimbabwe’s latest data, the country generated US$16.5 million from coal exports in February 2026, accounting for about 1.7% of total merchandise exports.

While this contribution remains modest compared to dominant exports such as gold and tobacco, it underscores coal’s growing relevance, particularly as global prices strengthen.

However, Zimbabwe’s coal story is less about exports alone and more about its strategic role in the domestic economy. The bulk of coal produced locally is consumed within the country, feeding into power generation and industrial processes. The Hwange Thermal Power Station, the country’s largest power plant, relies heavily on coal to supply electricity to the national grid.

Beyond electricity, coal is critical in sectors such as steelmaking, ferrochrome smelting, cement production, and general manufacturing, making it a backbone of Zimbabwe’s industrial base.

Zimbabwe’s coal industry is anchored by key producers, led by Hwange Colliery Company Limited, alongside a growing number of private players operating in Matabeleland North and the Hwange Basin. These producers collectively supply both domestic industries and regional export markets such as Zambia, the Democratic Republic of Congo, and South Africa.

Industry estimates suggest the country consumes between 2.5 million and 3 million tonnes of coal annually, with only a fraction exported. This highlights a key structural reality: Zimbabwe is still largely a domestic coal economy, with exports representing untapped upside rather than core revenue.

That upside could become more significant if current global trends persist. Higher international prices, combined with rising demand for affordable energy, create room for Zimbabwe to scale exports, particularly within the region where logistics are more favourable.

At the same time, there is an increasing focus on moving up the value chain. Rather than exporting raw thermal coal, Zimbabwe is looking to expand into processed products such as coke, which are essential for metallurgical industries. This aligns with broader calls to boost beneficiation and reduce reliance on raw commodity exports.

BMI’s upward revision of its 2026 Newcastle thermal coal price forecast to $115/t reinforces this outlook. For Zimbabwe, the implication is clear: while coal may currently play a secondary role in export earnings, a sustained global price rally, combined with local value addition, could turn it into a more meaningful contributor to both export revenues and industrial growth.

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