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The International Monetary Fund (IMF) has projected Zimbabwe’s economy will rebound to 6 percent growth this year, but warns that the recovery, powered by record-high gold prices, is shielding the nation from its unresolved and deep-seated structural problems, Mining Zimbabwe can report.

By Rudairo Mapuranga

In its concluding statement for the 2025 Article IV consultation, the IMF confirmed that the growth surge is being driven by “better climate conditions and record high gold prices,” which have boosted mining activity and strengthened the country’s current account .

However, this golden lifeline offers only a temporary reprieve. The IMF Executive Board highlighted that intense fiscal pressures, critically low foreign reserves, and persistent parallel market exchange rate gaps continue to pose severe threats to medium-term stability .

“The growth is welcome, but it is growing on a weak foundation,” a Harare-based economic analyst noted. “The IMF is essentially saying that without fundamental reforms, this gold boom will only provide a short-term shield, not long-term health.”

The report underscores the mining sector’s dual role as both Zimbabwe’s economic engine and a reflector of its vulnerabilities. While gold has surged, the IMF also noted that declining prices for other key metal exports previously weighed on growth, revealing an over-reliance on a narrow range of volatile commodities .

The fund’s directors emphasized that “a tighter fiscal stance is needed,” urging authorities to rein in spending and rationalize tax incentives to build on the recent stability achieved through tighter monetary policy. They also stressed that accelerating governance reforms is critical to building investor confidence .

For Zimbabwe’s miners, the IMF assessment translates to a period of both opportunity and risk. The high gold price creates a profitable environment, but the underlying macroeconomic weaknesses—including currency instability and policy uncertainty—remain a direct challenge to sustainable expansion and investment.

The challenge for the government will be to leverage this period of high mineral revenue to implement the very reforms that can secure the economy’s future once the gold price shield inevitably weakens.

The Delicate Balance of Stability and Risk

Zimbabwe is currently “experiencing a degree of macroeconomic stability,” a hard-won achievement after recent periods of significant volatility . This stability is attributed directly to tighter policies, including the halting of quasi-fiscal operations and monetary financing by the central bank, which have helped reduce inflation and exchange rate pressures .

The introduction of the ZiG currency in April 2024 was a cornerstone of this effort. However, its path has been rocky. The IMF reports that between the ZiG’s introduction and September 2024, the ZiG monetary base increased by a staggering 215 percent, leading to an overnight drop in the currency’s value . In response, the Reserve Bank of Zimbabwe (RBZ) halted monetary financing, increased statutory reserve requirements, and raised the policy rate. These actions have since narrowed the premium between the official Willing-Buyer-Willing-Seller (WBWS) rate and the parallel market, bringing monthly ZiG inflation down to 0.3 percent by June 2025 .

Despite this progress, the IMF points to a persistent and concerning gap between the official and parallel exchange rates, indicating that confidence in the local currency is still fragile . This gap, along with a highly dollarized monetary system and low reserve buffers, forms a triad of vulnerabilities that could quickly undermine the current stability .

The Fiscal Conundrum: Spending Pressures and Mounting Debts

While the mining sector boosts national revenues, the government’s fiscal position remains precarious. The IMF notes that fiscal financing pressures have intensified despite higher revenues, as net external financing turned negative and spending needs increased .

The revenue improvements, achieved through measures like a reduction in VAT tax reliefs, increased fees and levies, and steps to reduce smuggling, have been overshadowed by rising expenditures . Key spending pressures include:

1)Higher public sector wages

2)Increased capital outlays

3)Servicing debt taken over by the Treasury from the RBZ

4)Servicing liabilities related to the acquisition of assets for the Mutapa Investment Fund

This squeeze led to the accumulation of nearly US$600 million of domestic expenditure arrears in 2024 alone, with the deficit financed by T-bill issuance and direct borrowing from the central bank’s overdraft facility . The IMF’s Executive Board has stressed that a tighter fiscal stance is “needed to close the fiscal financing gap, prevent further accumulation of domestic arrears, and preclude a return to monetary financing” . They recommend rationalizing tax incentives and reducing spending, particularly on the public compensation bill, while protecting social spending and public investment .

The ZiG and the Dollar: A Clarion Call for Clarity

A significant part of the IMF’s advice centers on Zimbabwe’s plan to transition to a “mono-currency” system by 2030, phasing out the multi-currency system that has long dollarized the economy . The Fund is urging the government to provide greater clarity on the operational implications of this plan .

Key unanswered questions include whether the use of a mono-currency will be limited to domestic transactions and whether bank deposits can remain denominated in both US dollars and ZiG . The IMF argues that providing this clarity is essential to reduce uncertainty, which is currently weighing on financial intermediation and broader market confidence .

To support this transition, the IMF recommends enhancing the monetary and foreign exchange frameworks. This involves:

1) Reducing the RBZ’s FX market footprint by gradually redirecting surrender requirements into the market.

2) Improving monetary control through market-based instruments.

3)Encouraging ZiG demand, notably by increasing the share of the Treasury’s operations (revenues and expenditures) in the local currency .

The Broader Reform Agenda and the Path Forward

Beyond immediate fiscal and monetary fixes, the IMF highlights that closing structural gaps is vital for unlocking Zimbabwe’s economic potential. The Fund’s directors “concurred that closing important structural gaps could significantly boost Zimbabwe’s economic potential” .

A critical area is governance and the management of state-owned enterprises. The IMF specifically calls for strengthening the governance framework for the Mutapa Investment Fund, including enhancing its reporting, audit, disclosure, and oversight requirements in line with international best practices . This is essential to mitigate fiscal risks and ensure transparency.

Furthermore, the IMF welcomes recent progress on Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) reforms, noting that an acceleration of these and other governance reforms is “critical for reducing vulnerabilities and sustaining medium-term growth” .

Ultimately, Zimbabwe’s ability to attract external financing and achieve debt sustainability hinges on its reengagement with international creditors. The Structured Dialogue Platform (SDP) provides a framework for this, focusing on economic, governance, and land reforms . The IMF notes that a stronger policy reform track record, potentially supported by a Staff-Monitored Program (SMP), could be pivotal in these efforts .

A Golden Opportunity for Fundamental Change

The IMF’s 2025 assessment presents a clear message to Zimbabwe’s policymakers and the mining industry: the current boom is a respite, not a solution. While high gold prices are driving a welcome recovery, they are also buying time to implement the difficult reforms that have been delayed for years.

For the mining sector, the report underscores that its long-term success is inextricably linked to the country’s overall macroeconomic health. Persistent exchange rate gaps, low reserve buffers, and fiscal unpredictability are as much a threat to mining investment as a drop in global commodity prices.

The path forward requires more than just weathering the next economic storm. It demands building a more resilient and diversified economic structure. The choices made today, while gold revenues are high, will determine whether Zimbabwe can transform this period of growth into a lasting era of prosperity or whether it will once again find itself vulnerable when the global market shifts. The golden shield is strong for now, but the foundation it protects needs urgent reinforcement.

Zimbabwe has recorded its first trade surplus in six years, thanks largely to stronger mineral exports led by gold, nickel, and ferrochrome, Mining Zimbabwe can report.

By Ryan Chigoche

According to the latest trade data from ZimStat, the country posted a US$7 million surplus in August 2025, reversing July’s US$10.2 million deficit. Exports rose slightly to US$878.2 million, while imports fell to US$871.1 million.

Mining once again anchored Zimbabwe’s external earnings, accounting for over 80% of total exports. Gold alone brought in US$462.7 million, representing more than half of export receipts, while nickel mattes generated US$122.2 million and ferrochrome added US$44 million.

The modest trade surplus was driven almost entirely by the mining sector. While tobacco exports reached US$70 million, it was gold and base metals that had the biggest influence. Improved output from large-scale gold producers and firming international prices helped lift receipts, while ferrochrome and nickel remained steady performers.

Foreign currency inflows climbed to US$10.4 billion by August, up from US$8.2 billion in 2024, supported mainly by gold and platinum sales. The mining sector’s strong showing also helped boost reserves to US$900 million by September, up from US$700 million in June  the highest level since dollarisation.

Despite the positive headline, analysts warn that the surplus remains fragile and heavily commodity-driven. Zimbabwe’s export profile is still concentrated in minerals, leaving the economy exposed to price swings, operational disruptions, and global demand shifts.

With over 80% of foreign earnings coming from mining, any drop in global metal prices could quickly reverse the current gains.

Economists also note that the surplus was aided by the government’s maize import ban, which slashed the import bill from an average US$55 million to just US$1 million in August. Once the ban is lifted, import pressures are likely to resurface, narrowing the surplus.

Historically, every period of trade stability in Zimbabwe has been tied to mining performance  from gold and nickel in the 1980s to platinum and ferrochrome in the 2010s. The trend remains consistent: when mining thrives, trade balances improve; when it slows, deficits widen.

However, this dominance also exposes a structural weakness  the lack of value addition and export diversification. Zimbabwe continues to ship out largely unprocessed minerals, forfeiting billions in potential revenue that could be generated through local beneficiation and refining.

Outlook: Turning a Short-Term Gain into Long-Term Stability

Experts say sustaining the trade surplus will depend on how effectively Zimbabwe leverages its current mining boom. Expanding beneficiation capacity, improving power supply to mining operations, and maintaining consistent mining policies are viewed as key to turning this short-term gain into a lasting recovery.

With new projects in lithium, platinum, and gold expanding across the country, the potential for sustained surpluses exists  but only if the economy moves beyond raw exports.

Otherwise, the August surplus could end up as another brief recovery, similar to 2019, when mineral exports rose but quickly fell back due to policy inconsistency and falling global metal prices.

Premier African Minerals Limited has entered fresh negotiations to revise its offtake agreement with Canmax Technologies and secure additional funding to increase production at its Zulu Lithium and Tantalum Project in Fort Rixon,Mining Zimbabwe can report.

By Ryan Chigoche

The discussions aim to restructure debt, improve cash flow, and allow the mine to reach its full operational capacity.

The British-listed miner initially signed an offtake deal with Canmax in 2023, which provided prepayment financing for future spodumene concentrate deliveries.

Following delays in meeting production targets, Premier is now seeking a reworked agreement and supplementary funding to stabilise operations.

In a notice to shareholders managing director Graham Hill said the negotiations are key to unlocking Zulu’s production potential.

“The pathway to achieving full capacity at Zulu lies in finalising a revised offtake agreement and securing the necessary funding,” Hill said. “We are making progress with Canmax and a major trading house, both committed to concluding this agreement successfully.”

Hill noted that additional site inspections are scheduled in the coming weeks, complementing ongoing optimisation work at the plant. Operational improvements and cost management remain a central focus for the company.

“Zulu is a strategic asset with strong resources, infrastructure, and market access,” Hill added. “The board is confident that the steps we are taking will restore value and create sustainable growth for shareholders.”

Financially, Premier is under pressure. For the six months ended June 30, 2025, the company posted an operating loss of US$7.68 million, largely due to administrative and optimisation costs at Zulu. Cash reserves stood at US$29,000 at the end of June, although shareholder support continued during the period.

Despite limited liquidity, total assets exceeded liabilities by US$5.88 million. Current liabilities, however, outweighed current assets by US$54.42 million, primarily because of a US$46 million prepayment from Canmax.

The company said this advance would be repaid through spodumene concentrate deliveries or, if unresolved by December 31, 2025, via equity issuance based on a US$100 million market valuation of Zulu.

The board remains confident in the long-term value of Zulu but cautioned that failure to secure new investment or shareholder approval could cast doubt on the company’s ability to continue as a going concern.

Located about 80 kilometres east of Bulawayo, the Zulu Lithium and Tantalum Project is one of Zimbabwe’s largest undeveloped pegmatite deposits.

Spanning roughly 3.5 square kilometres, the site contains significant lithium and tantalum mineralisation, positioning Premier as a potential key player in Zimbabwe’s growing battery minerals sector.

THE Zimbabwe Miners Federation (ZMF) is set to host a pivotal conference aimed at driving formalisation and sustainable practices within the artisanal and small-scale mining (ASM) sector, which now accounts for the bulk of the country’s gold output, Mining Zimbabwe can report.

By Rudairo Mapuranga

Dubbed a “conference for change,” the event will be the official closing conference of the MineEntra 2025 Expo at the Zimbabwe International Exhibition Centre in Bulawayo on October 10.

In an interview, ZMF chief executive officer Wellington Takavarasha said the conference dovetails with the government’s “responsible mining” mantra and the recent responsible mining audit initiated by President Emmerson Mnangagwa.

“Much of the issues that have to do with that (audit) is hovering around the issues of ESG and also corporate social responsibility issues, the safety of the miners and also the welfare and well-being of the miners,” Takavarasha said.

He emphasised the need for harmony between miners and other land users, revealing that the conference would involve officials from the Ministry of Agriculture.

“So that there is cohabitation between the miners and the farmers… one person doing his farming activities without necessarily being interrupted by the mining, or the miner vice versa,” he said.

The ZMF CEO also stated that the forum would serve as a critical consultative platform for the ongoing Mines and Minerals Amendment Bill, gathering input from miners on the ground.

“This is also part of a forum where we can gather one or two points that you might have missed that can be added to the position paper that has already been put to government,” Takavarasha said.

“We really wanted to have a dialogue approach where the government realises the full potential and significance of artisanal and small-scale mining… the bottom line that we’re crying for, lamenting for, is to have policies that are palatable to a small-scale operation.”

The ASM sector has become the lifeblood of Zimbabwe’s gold production, contributing 65% of the yellow metal and a significant portion of chrome output.

Takavarasha said the conference would feature presenters from key government stakeholders, including the Minerals Marketing Corporation of Zimbabwe and the Reserve Bank of Zimbabwe, to discuss how miners can directly benefit from their activities.

“How do we come up with programmes and projects that benefit these artisanal small-scale miners?” he said.

“We anticipated we doing a very powerful MineEntra, that’s why one of our themes is a conference for change… we have been talking about these issues but we need a conference about change.”

According to a concept note from the federation, the conference is designed to “foster a collaborative ecosystem that drives the formalisation, modernisation, and sustainable development of the ASM sector in Zimbabwe.”

Expected outcomes include the development of a clearer pathway to formalisation for artisanal miners, enhanced regulatory understanding, and the promotion of a sustainability charter for environmentally responsible mining.

A palpable energy is building at the Zimbabwe International Exhibition Centre (ZIEC) in Bulawayo, with just one day until the gates swing open, the final, frantic touches are being put on exhibition stands for MineEntra 2025, but amidst this organised chaos, one thing has become undeniably clear, a new standard for excellence is being set, Mining Zimbabwe can report.

By Rudairo Mapuranga

The Hwange Colliery Company Limited (HCCL) Holdings stand is already the undisputed star of the show, drawing gasps of amazement and setting a buzz among the early-bird visitors who have been fortunate enough to catch a preview. For anyone planning to attend what is shaping up to be the most international MineEntra to date, the HCCL Holdings stand is not just a recommendation; it is the master class exhibition and the absolute must-visit destination.

This breathtaking display from HCCL is a fitting centrepiece for an event that has itself matured into a global powerhouse. MineEntra 2025 is not merely a trade show; it is a powerful statement of intent from the Zimbabwean mining sector. The event has solidified its status as a truly international platform, attracting a record number of exhibitors and participants from across the globe. This convergence of local expertise and international innovation creates an unparalleled environment for networking, deal-making, and knowledge sharing, positioning Zimbabwe firmly on the world’s mining map.

A Glimpse into the Future, Today

The awe inspired by the HCCL stand is not merely for its visual scale; it is a physical manifestation of a profound strategic shift. HCCL Holdings is publicly spearheading the modernisation of mining, and its exhibition is a live demonstration of this commitment. The company is championing a future anchored on purpose-driven and innovative mining, actively deploying cutting-edge digital technologies to redefine what is possible.

Guided by a powerful “Vision of Zero Harm,” the company is showcasing its revolutionary approach to rock engineering and geotechnical strategies. This includes the integration of digital mine planning systems, drones, and advanced geological software. These are not just flashy gadgets; they are presented as the essential safeguards for people and the environment, forming the very foundation of a resilient and responsible mining industry. HCCL’s stand tells a story of a company—and by extension, a nation—that is moving decisively beyond extraction to embrace a safer, more sustainable, and technologically advanced future.

More Than an Exhibition: A National Dialogue

The grandeur of MineEntra 2025 and the innovation on display at the HCCL stand reflect a larger, critical dialogue happening within Zimbabwe. The mining sector is a vital pillar of the national economy, and this event serves as the premier platform for shaping its trajectory. The conversations started here among government officials, mining executives, engineers, and investors will generate the key policy recommendations and partnerships that will drive the industry forward for years to come.

The event is a powerful testament to the sector’s readiness to embrace Environmental, Social, and Governance (ESG) principles, proving that operational excellence and ethical responsibility are not mutually exclusive but are in fact two sides of the same coin. This focus ensures that the growth of the mining industry translates into tangible, positive impacts for the nation and its people, aligning perfectly with broader national economic visions.

Your Unmissable Invitation

The stage is set for an extraordinary event. From the must-visit, innovative stand of HCCL Holdings to the hundreds of other international and local exhibitors, Mine Entra 2025 promises to be a transformative experience. It is where the future of mining in Zimbabwe will be visualised, debated, and ultimately, shaped.

If you have any stake in the future of mining—as an investor, executive, engineer, supplier, or policymaker—your presence at the Zimbabwe International Exhibition Centre is essential. Witness the innovation, engage in the critical dialogues, and experience for yourself why the Hwange Colliery Company Limited’s stand is the talk of the show. Come and see how a bold vision, combined with cutting-edge technology, is proudly redefining a legacy and building a safer, more sustainable, and incredibly exciting future for everyone.

Government’s latest attempt to tackle Zimbabwe’s ballooning external debt may be walking a fine line between innovation and risk, Mining Zimbabwe reports.

By Ryan Chigoche

This comes as Finance, Economic Development, and Investment Promotion Minister Mthuli Ncube recently revealed that authorities are exploring the use of the country’s vast mineral wealth, including platinum, gold, and lithium, to help clear part of the US$13.2 billion owed to foreign creditors.

He said the government has already begun servicing some arrears through a platinum-backed arrangement and is working to expand similar resource-based mechanisms to address the broader debt burden.

While the plan is seen as a creative way to leverage natural endowments, development economists are warning that without transparency and sound governance, Zimbabwe could end up worsening the very problem it seeks to solve.

The country’s debt crisis has long been a drag on growth and investor confidence. As of December 2024, Zimbabwe’s total public and publicly guaranteed debt stood at US$21.5 billion, or 47.1% of GDP, with US$13.2 billion owed externally and US$8.3 billion domestically. More than 70% of the external arrears are interest-related, a sign of how long Zimbabwe has been unable to access fresh concessional funding.

Zimbabwe’s main creditors include the World Bank (US$1.48 billion), African Development Bank (US$671 million), European Investment Bank (US$372 million), Paris Club lenders (US$3.55 billion), and non-Paris Club creditors (US$2.22 billion). Past efforts to clear arrears, such as the 2015 Lima Strategy and partial payments to the IMF in 2016, failed to unlock new credit lines. Even a more recent US$2.6 billion bridge financing proposal from the AfDB has stalled amid governance and policy credibility concerns.

Against this backdrop, analysts say the idea of resource-backed debt is not new, but it is fraught with pitfalls.

Speaking to Mining Zimbabwe, Morgan & Co. Head of Research Tafara Mtutu said using minerals to repay debt could have unintended consequences if underlying governance problems persist.

“In my humble opinion, I’m not optimistic about this because when you look at why we are in this debt conundrum in the first place, it’s not that Zimbabwe lacks the expertise to generate returns from borrowed funds, but rather a lack of proper governance by those entrusted with public resources,” Mtutu said.

He added that resource-backed loans — where underground assets are used as collateral — have often worsened debt distress in developing countries. “There’s a good chance that we could actually make the situation worse,” he noted, cautioning that such deals can be opaque and difficult to renegotiate if commodity prices fall.

Economist Chenai Mutambasere echoed similar concerns, saying the feasibility of turning mineral wealth into reliable debt repayments remains highly questionable.

“Minerals are physical assets while debt repayments require liquid hard currency,” she explained. “Turning ore in the ground into cash flows depends on efficient extraction, transparent contracts, and global demand — all areas where Zimbabwe has struggled due to governance weaknesses and underinvestment in mining.”

She added that relying on mineral-backed loans could expose the country to dangerous price shocks. “Global commodity prices are notoriously volatile; a slump in platinum or lithium could suddenly undermine repayment capacity,” she warned.

Mutambasere said the biggest risk lies in governance failures. “Zimbabwe’s mining sector is plagued by opacity and elite capture, raising fears that debt-for-minerals deals will enrich a few while entrenching corruption. Without reforms to strengthen institutions and diversify revenue, relying on minerals to service debt is unsustainable. At best, it only buys time; at worst, it deepens the resource curse.”

Analysts point to examples across Africa where similar approaches have gone wrong. In Angola and Congo-Brazzaville, opaque resource-backed loans led to undervalued mineral assets, mounting debt, and lost revenues. Experts warn Zimbabwe could face the same fate unless it strengthens transparency, ensures competitive contract terms, and links such deals to tangible economic outcomes.

The country’s long-term debt sustainability will depend less on what is mined and more on how its resources are managed. Stronger fiscal discipline, credible re-engagement with creditors, and reforms that restore confidence in governance remain key to breaking the debt cycle. Without that, economists say, mortgaging minerals may provide only temporary relief — at the cost of future generations.

Zimbabwe is set to showcase the growing synergy between its mining and agricultural sectors, as plans for a US$400 million coal-to-fertiliser project in Gudo, Chiredzi, move forward. Anchored on rich local coal deposits, the initiative will convert the mineral resource into urea fertiliser, boosting agricultural productivity and supporting key export crops such as tobacco, Mining Zimbabwe can report.

By Ryan Chigoche

The project has already engaged the Ministry of Mines and Mining Development, with Verify Engineering and its partners applying for a special mining grant, highlighting mining’s central role in driving rural industrialisation and national economic growth.

The plant, spearheaded by Verify Engineering in partnership with Rusununguko Nkululeko Trust and a Chinese investor, will ride on coal deposits that have been mined in the area for more than two decades.

Verify has operated a coal mine near the Mkwasine River since 2007, and the same resource will now feed into the fertiliser production facility.

Coal-to-fertiliser technology converts coal into synthetic gas, which is then processed into urea, one of the most widely used nitrogen-based fertilisers.

For Zimbabwe, where agriculture is viewed as the backbone of the economy and fertiliser shortages are a recurring challenge, the project is expected to be a game-changer.

Permanent Secretary for Masvingo Provincial Affairs and Devolution, Dr. Addmore Pazvakavambwa, said the plant would significantly boost fertiliser availability while reducing the country’s import bill.

“The coal-to-fertiliser project in rural Chiredzi will not only improve fertiliser supplies for our farmers but will also create employment and save foreign currency currently spent on imports,” he said.

Local authorities in Chiredzi have welcomed the development, pointing to its potential to reshape the district’s economy, which is heavily dependent on sugarcane production, where fertiliser is a key input. They indicated readiness to support the investors through incentives such as tax concessions.

At the provincial level, the project is being viewed as part of the government’s push to use mineral resources for rural industrialisation. Officials say the investment aligns with efforts to grow Masvingo’s economy and create new industrial hubs.

Verify Engineering’s track record in mineral-based industrial projects has bolstered confidence, with the company having previously established Zimbabwe’s first medical oxygen plant in Mutare, which proved critical during the Covid-19 pandemic.

Mining and agriculture, Zimbabwe’s two largest foreign currency earners, are increasingly becoming interconnected through projects such as this one.

Mining contributes about 75% of the country’s export receipts, while agriculture accounts for roughly 15–20%, led by tobacco, sugar, and horticulture.

By linking coal mining to fertiliser production, the project demonstrates how mining can directly support agriculture’s productivity, while agriculture provides sustained demand for mining-derived inputs — creating a mutually reinforcing cycle that strengthens the country’s balance of payments.

With abundant coal reserves ensuring feedstock supply, and with the Mines Ministry already engaged through the licensing process, the project reflects how mining can be leveraged to power agriculture, stimulate rural economies, and cement beneficiation as a pillar of national development.