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Mineral Earnings Poised to Hit US$7bn in 2025, with 7% Growth Forecast for 2026

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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.

The Legal Limbo of Zimbabwe’s Artisanal Miners: A Reserved Sector Without Definition

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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.

Govt Overhauls Mining Tax Regime to Capture More Revenue Amid Rising Commodity Prices

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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.

Zimbabwe’s 2026 National Budget Continues to Sideline the Mining Sector

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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.

Non-Compliant Miners to Lose Titles

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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.

Dinson Iron and Steel Achieves SABS Certification as New Steel Products Roll Out

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Dinson Iron and Steel Company (DISCO) has strengthened its regional footprint after securing certification from the South African Bureau of Standards (SABS) for its reinforcing steel bars, while simultaneously rolling out new products that include steel balls and wire rods, Mining Zimbabwe can report.

By Ryan Chigoche

These milestones come shortly after the company resumed operations on 3 November 2025, following a scheduled shutdown for maintenance and system upgrades. The successful restart set the stage for DISCO to accelerate both product diversification and quality assurance initiatives.

Together, the SABS certification and the introduction of new steel products mark a significant advancement in Dinson’s growth trajectory, reinforcing its position as an emerging industrial hub in Zimbabwe and a key contributor to expanding value-added steel manufacturing across the region.

The SABS certification confirms that Dinson’s steel rebars comply with the South African National Standards (SANS 920:2011) for concrete reinforcement—an internationally recognised benchmark for safety, performance, and manufacturing quality.

The approval places DISCO among a select group of regional steel producers whose products meet stringent global technical standards, boosting confidence among buyers and regional markets.

Commenting on this milestone, DISCO CEO Benson Xu said the certifications reflect its commitment to consistent product quality, robust internal systems, continuous improvement, and adherence to international manufacturing protocols.

“These internationally recognised certifications affirm our commitment to consistent product quality and reliability, robust internal systems and continuous improvement, enhanced customer satisfaction and stakeholder confidence, and compliance with global standards in manufacturing and management.

“For our stakeholders, these certifications serve as a guarantee that Dinson’s steel products are produced under stringent quality controls and that our operations meet the highest benchmarks of professionalism and accountability. This milestone strengthens our position as a trusted industrial partner in Zimbabwe and across the region,” Xu said.

The company has also secured major endorsements from the Standards Association of Zimbabwe (SAZ). Dinson is certified under ISO 9001:2015 for its management systems, while its steel bars have been tested and approved to carry the SAZ Standards Mark. According to the company, both SABS and SAZ assessments are conducted impartially and independently, in line with global best practices.

Meanwhile, the certifications coincide with the company’s expansion into new product lines. Dinson has commenced production of steel balls and wire rods as part of its growth and value-chain development strategy.

Management says the additions will support Zimbabwe’s broader industrialisation agenda by creating opportunities for downstream players to invest in value-added steel products, thereby strengthening the domestic and regional steel ecosystem.

Gold buying prices in Zimbabwe per gram/ ounce, 27 November 2025

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Gold buying prices in Zimbabwe per gram/ ounce, 27 November 2025, from the official gold buyer and exporter Fidelity Gold Refinery (FGR).

1 oz = 31.1035 g

CategoryPrice ($/g)Price ($/oz)
SG 90% and ABOVE125.773911.89
SG 85% and above but below 90%124.443870.52
SG 80% and above but below 85%123.103828.84
SG 75% and above but below 80%121.773787.47
Sample 5g and above but below 10g119.783725.58
Fire Assay CASH126.433932.42

 

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.

Hwange CEO Urges Policy-Level Action to Include Local Suppliers in Major Foreign-Led Mining Projects

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Hwange Colliery Company Limited (HCCL) has highlighted the need for policy-level measures to ensure local suppliers and contractors are meaningfully involved in major mining projects, Mining Zimbabwe can report.

By Ryan Chigoche

This call comes amid an influx of large-scale projects, particularly led by Chinese firms. While these investments have brought billions into Zimbabwe’s economy, a significant portion of spending has gone toward imported machinery, equipment, and services, leaving domestic suppliers with limited opportunities.

Some listed local mining companies have observed that foreign contractors often purchase imported items even when local alternatives exist. Hwange Colliery CEO Wilson Gambiza says this is not a reflection of local incapacity but an issue that needs attention at the policy level.

In an interview with Mining Zimbabwe, Gambiza acknowledged the expertise of Chinese contractors while emphasizing the importance of including domestic businesses.

“We find that with the influx of Asian investors, the Chinese, they have clinched most of the contracts because they have the expertise of how to build or to construct, to address the needs of the communities,” Gambiza said.

“But I think the issue is related to where the materials are coming from. I would not think it’s an issue which portrays or reflects failure by the locals to supply enough. But I think it’s an issue which needs to be addressed at the policy level, whereby the government needs to put restrictions or legislative measures which can also allow participation of the locals in some of these construction projects. Because with the current scenario, you will find the bulk of the stuff, the Chinese contractors they are bringing it from China. So literally it means they are promoting their home industries.”

Gambiza’s remarks underscore the gap between the potential of local contractors and their current involvement in high-value mining projects.

Imported equipment dominates local mining

The Chamber of Mines reports that around US$2.1 billion of the US$5.4 billion revenue generated in 2023 was spent on imported machinery, equipment, and services, with local manufacturing contributing just 15%.

ZIDA data for Q1 2025 shows that US$2.65 billion of the projected US$4.75 billion investment in the mining sector went toward imported capital equipment, indicating room for policies that encourage domestic sourcing.

“I think there should be a way whereby the government can also try to strike a balance in such a manner that even the locals also participate, and they are also promoted, and also they can participate in the construction projects in the mining industry,” Gambiza added.

Local contractors have proven their capacity

Zimbabwean firms have demonstrated their ability to handle complex mining projects. Mimosa Mining Company’s US$75 million Tailings Storage Facility (TSF-4) is an example: local contractors managed the construction while South African firm SRK handled design. Imported materials were limited to specialised items, keeping most costs in-country.

This shows that with careful planning, procurement, and supportive policies, local contractors can deliver projects to international standards.

Hwange Colliery’s underground project

Hwange Colliery is advancing a US$60 million underground mining venture in partnership with a Chinese firm. While foreign expertise and financing underpin the project, local companies such as Dinson Iron and Steel are involved in specific components.

“We have got another joint venture that we have with Dinson, in which we want to extract the Number Three underground pillars,” Gambiza said.

This demonstrates that even in technically complex operations, local firms can play a significant role. Expanding domestic participation ensures foreign investment benefits Zimbabwean industry.

Currently, Zimbabwe lacks strict local content requirements, and enforcement is inconsistent. Policymakers could consider minimum local procurement or skills transfer thresholds, drawing lessons from South Africa and Botswana. Such measures would encourage foreign investors to source locally, reduce foreign exchange outflows, and strengthen domestic industrial participation.

The rise in foreign investment presents both opportunities and challenges. Gambiza emphasises that without deliberate policy attention, mining inflows may primarily support imports rather than domestic growth.

Success stories like Mimosa’s TSF-4 project, Hwange’s underground operations, and joint ventures with local firms such as Dinson show that Zimbabwean contractors are capable; the key is ensuring policy frameworks allow them to contribute effectively.

Zimbabwe’s Mining Industry Poised for Robust Growth in 2026, Survey Reveals

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Zimbabwe’s mining sector is set for a significant upswing in 2026, driven by attractive commodity prices and ongoing expansion projects, according to the latest State of the Mining Industry Report presented by Prof. Albert Makochekanwa, Mining Zimbabwe can report.

By Rudairo Mapuranga

While executive confidence has surged, the report underscores that persistent challenges in infrastructure, foreign currency access, and fiscal policy threaten to cap the sector’s full potential.

The comprehensive survey, which gathers views from mining executives for planning purposes, paints a picture of an industry on the rise. The overall mining business confidence index has improved to a positive 8.4, a marked increase from the previous year, reflecting widespread optimism about the year ahead.

The report highlights several key indicators pointing towards a strong performance in 2026:

Surge in Mineral Revenue: Mineral revenue is projected to reach $7.5 billion in 2026, up from an expected $7 billion at the close of 2025 and $5.9 billion in 2024. This growth is attributed to a combination of increased output and anticipated rises in international prices for key commodities like platinum group metals (PGMs), gold, and lithium.

Increased Mineral Output: The overall mineral output is forecast to grow by an average of 6%. Prof. Makochekanwa provided a detailed baseline projection for gold, expecting an increase from 47,000 kg in 2025 to 50,000 kg in 2026, with the potential to reach 53,000 kg if supportive policy changes are implemented.

Record-High Capacity Utilisation: The average capacity utilisation for the industry is expected to climb to 95% in 2026, up from 88% in 2025. Some sub-sectors, notably PGMs and coal, are already operating at 100% capacity.

Profitability and Employment: Executives are generally optimistic about the profitability of their projects, with a measured index of 7. This positive outlook is also expected to translate into more jobs, with employment prospects showing a measured increase of 6.5.

Despite the bullish forecasts, the presentation did not shy away from the significant headwinds facing the industry. Prof. Makochekanwa identified several “key constraints” that mining executives believe require urgent attention:

Power Supply Deficits: Electricity was highlighted as the most critical bottleneck. The mining industry loses approximately 10% of its potential output due to power outages. With the demand for electricity from the sector expected to rise from 750 megawatts to 880 megawatts in 2026, a consistent and adequate power supply was cited as a non-negotiable requirement for growth.

Foreign Currency Shortfalls: Access to foreign currency remains a major concern, with executives pessimistic about prospects for 2026. These shortfalls are estimated to cause a 4% loss in potential output and hamper the industry’s ability to import essential operational inputs.

Fiscal and Investment Environment: The mining fiscal framework is viewed pessimistically, with an index of minus 10. Executives expressed concern that the government may introduce new taxes or increase existing ones. Furthermore, the high cost of doing business, infrastructure gaps, and difficulties in raising offshore capital due to perceived country risk are stifling investment competitiveness.

Prof. Makochekanwa specifically noted that for positive policy statements to be effective, they must be backed by concrete statutory instruments. “Implementers in Zimbabwe just say, ‘can we see where the instrument is?’” he stated, urging policymakers to provide the necessary legal documents to support reforms.

The report also detailed the industry’s efforts in Environmental, Social, and Governance (ESG) and local content development, areas of increasing global importance.

Mining companies reported that they are planning to spend an average of 11% of their revenue on ESG initiatives in 2026. These measures include adopting environmental rehabilitation plans, investing in renewable energy, and implementing reforestation programs. On community investment, companies are currently spending up to 2% of their revenues on Corporate Social Investment (CSI) projects, focusing on infrastructure like schools and clinics, education, health, and sports.

On local content, the report noted a shared view between government and stakeholders that current levels are still low. While mining companies are undertaking initiatives to support local enterprise development, suppliers face challenges competing due to the “proliferation of foreign products,” poor payment turnaround times, and issues with stock management.

Prof. Makochekanwa summed up the sentiment: “The mining industry of 2026 has improved compared to 2025… We are looking forward to all the support to unlock the full potential and maximise the contribution of the sector to the economy.” The success of the coming year appears to hinge on a collaborative effort to address the persistent constraints while capitalising on the favourable market conditions.

Prospect Resources sells Step Aside lithium to Fatima Resources

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Prospect Resources Limited has completed the sale of its Step Aside Lithium Project in Goromonzi to Fatima Resources Pty Ltd for up to US$2.2 million, marking another strategic transaction for the company in Zimbabwe’s evolving lithium sector, Mining Zimbabwe can report.

By Rudairo Mapuranga

The sale, executed through a Share Sale and Purchase Agreement, transfers ownership of Prospect’s Singapore-registered subsidiary, Promin Resource Holdings Pte Ltd, which holds a 90% interest in the Step Aside Project located 35 kilometres east of Harare. The transaction represents Prospect’s continued portfolio optimisation following their previous sale of the flagship Arcadia Lithium Mine to Chinese battery materials giant Zhejiang Huayou Cobalt for US$378 million in 2022.

The decision to divest from Step Aside comes as Prospect sharpens its focus on the Mumbezhi Copper Project in northern Zambia, signalling a strategic shift toward copper exploration amid changing market conditions for battery metals. Company management noted that the sale allows them to concentrate resources and capital on what they view as a more significant opportunity in the copper space, while also simplifying their corporate structure and reducing overhead costs.

Prospect Resources CEO Sam Hosack commented on the strategic rationale: “We are satisfied with the outcome of this sale agreement with a reputable company with extensive operating experience in Zimbabwe. This transaction offers us both upfront cash return and future upside to subsequent exploration success and value growth at Step Aside.”

The sale agreement is structured to provide both immediate and potential long-term value to Prospect Resources:

The final potential payment of up to US$1.2 million is contingent upon Fatima Resources achieving specific development milestones within 24 months, which may include securing binding offtake agreements, successfully upgrading the project’s Mineral Resource estimate, or completing a future sale transaction valuing the project at more than US$5 million.

The Step Aside Lithium Project covers approximately 100 hectares within the Archaean Harare Greenstone Belt, just 8 kilometres north of the producing Arcadia Lithium Mine. The project has been the subject of extensive exploration between 2022 and 2024, with four phases of mixed RC and diamond drilling programs confirming multiple high-grade lithium intersections across six visible mineralised pegmatites.

Technical work at the site led to the discovery of an additional lithium mineralised pegmatite dubbed “WinBin” in October 2023, with subsequent drilling demonstrating thickened, deep-set lithium mineralisation that connects to an extension of Pegmatite C, forming an arcuate system striking over at least 580 meters that remains open at depth.

Intersection | Lithium Grade | Depth | Pegmatite
63.1m | 1.17% Li₂O | from 74.9m | WinBin
17.0m | 1.54% Li₂O | from 52.0m | WinBin
15.3m | 1.25% Li₂O | from 179.9m | Pegmatite E
13.0m | 1.68% Li₂O | from 75.5m | WinBin
7.4m | 1.28% Li₂O | from 43.6m | Pegmatite E

The project benefits from excellent infrastructure with access to roads, power, and water systems, and is already permitted for mining, pending only environmental approvals. The lithium mineralisation is predominantly spodumene-bearing, with pegmatites running parallel to each other in a north-south orientation.

This transaction continues Prospect’s established “explore-develop-sell” strategy that the company successfully applied with its nearby Arcadia Mine. While Step Aside showed considerable potential, the company decided to pare back activities at the project to minimum holding commitments following the decline in global lithium prices, choosing instead to redirect capital toward its Zambian copper assets.

An industry analyst familiar with the transaction described it as “smart capital allocation in volatile commodity markets,” noting that “Prospect’s ability to monetise non-core projects gives it flexibility to pursue higher-value opportunities.” The deal represents a disciplined approach to portfolio management that allows the company to maintain some exposure to Step Aside’s future upside through the milestone-linked payments while freeing up resources for what management views as more promising opportunities.

The sales process was managed by Nurture Capital Zimbabwe, a Harare-based financial services firm providing asset management, private equity, and corporate advisory solutions across sub-Saharan Africa. Prospect indicated that proceeds from the sale will be channelled directly into advancing ongoing exploration activities at Mumbezhi, including a Phase 2 drilling program, and evaluating other copper opportunities within Zambia.

Zimbabwe continues to establish itself as a significant player in the global lithium sector, with substantial hard-rock lithium deposits making the country a critical node in the supply chain for electric vehicle batteries and energy storage systems. The country has seen growing interest from international investors, particularly Chinese companies that have invested over US$400 million in local lithium projects since 2023.

The government has positioned lithium development as a priority, with the Minister of Mines recently stating that lithium projects would receive priority support, potentially including exemptions under the Indigenisation Policy. With more than 60 lithium exploration licenses issued in the past five years, Zimbabwe is actively working to build its reputation as Africa’s “green metal” powerhouse.

As Prospect Resources turns its attention fully to copper development in Zambia, the future stewardship of the Step Aside Lithium Project falls to Fatima Resources, a private company described as having extensive local operational experience in Zimbabwe. With the mineralised system justifying additional drill testing, according to Prospect’s CEO, the project’s potential remains to be fully unlocked by its new owners.

The transaction demonstrates continued investor confidence in Zimbabwe’s lithium sector despite recent volatility in global lithium prices and showcases the strategic decisions mining companies are making to navigate the evolving battery metals landscape. As Hosack noted: “We believe the future stewardship of Step Aside is in good hands and look forward to seeing just how far the project can continue to grow.”