Mining ZimbabweLatest Mining News, Policy and Industry Updates

Copper prices have plummeted to their lowest levels in over three months as escalating tensions in the Middle East unsettle financial markets and cloud the global growth outlook, Mining Zimbabwe can report.

On the London Metal Exchange (LME), copper declined by as much as 1.8%, extending a sharp 6.7% fall from last week—the steepest weekly drop since April 2025. Prices were recently trading near US$11,840 per tonne, while contracts on the Shanghai Futures Exchange fell approximately 2% to 92,930 yuan per tonne.

Rising Energy Costs & Inflationary Pressure

The recent slide reflects a major shift in market sentiment. Investors are increasingly concerned about the economic ripple effects of surging oil and gas costs. As the conflict intensifies, energy prices are driving up industrial input costs while simultaneously weakening global consumption.

This environment heightens the risk of an economic slowdown paired with persistent inflation. Such a combination complicates the policy path for central banks, as expectations of prolonged high interest rates continue to weigh down commodity prices.

China’s Opportunistic Buying

China, the world’s leading copper consumer, is showing signs of opportunistic buying. The lower price point has encouraged industrial users to restock, particularly as domestic prices dipped below key support levels. This internal demand has helped cushion the decline in Chinese markets, even as international benchmarks remain under heavy pressure.

Across the broader metals complex, price movements remain subdued, reflecting a generally cautious tone among global investors.

The Long-Term Structural Story

Despite the short-term volatility, the structural case for copper remains robust. The metal’s central role in critical sectors continues to underpin long-term consumption growth:

• Power & Digital Infrastructure
• Renewable Energy Systems
• Electric Vehicles (EVs)

According to the International Energy Agency (IEA), global supply may struggle to keep pace with demand in the coming years. Projections point toward a widening deficit unless significant capital is deployed into new mining projects.

Short-Term Headwinds

For now, immediate macroeconomic factors are dominating the narrative:

• Margin Squeeze: Higher energy costs are tightening margins for producers.
• Weak Industrial Activity: Sectors like construction and manufacturing are showing reduced immediate demand.
• Stable Inventories: Relatively comfortable stock levels in exchange warehouses are limiting the impact of supply constraints on prices.

Outlook

The direction of copper prices will largely depend on the evolution of the geopolitical situation and the stabilisation of energy markets. Until uncertainty regarding global growth and monetary policy subsides, the market is expected to remain volatile. While the long-term “green metal” demand story is intact, it currently sits in the shadow of macroeconomic pressures and geopolitical risk.

Once considered a background engineering service, ventilation is emerging as a central factor in the safety, productivity, and economic viability of Zimbabwe’s underground mines, Mining Zimbabwe can report.

For Dr Tonderai Chikande, President of the Mine Ventilation Society of Zimbabwe (MVSZ), ensuring that ventilation systems keep pace with the full Life of Mine (LoM) has become one of the sector’s most pressing challenges. He notes that as mines deepen and mechanise, ventilation can no longer be treated as a secondary concern. Instead, it plays a decisive role in whether operations remain safe and economically sustainable.

“Ventilation is no longer a background engineering service,” Dr Chikande explained. “It has become a primary determinant of safety, productivity, energy performance, and the economic viability of mines—whether large-scale mechanised operations or smaller conventional and artisanal workings.”

In recent years, Zimbabwe’s mining sector has pushed into deeper ore bodies while increasing mechanisation to boost production. Rising safety standards and higher energy costs have reinforced the need for ventilation to be treated as a strategic priority rather than a reactive afterthought.

Heat and Environmental Pressures at Depth

Deep-level mining brings inherent risks, particularly the challenge of rising underground temperatures. In some operations, rock temperatures can exceed 60°C, creating extreme heat and humidity. Mechanised mines add to this pressure with diesel fleets, high-powered machinery, and electrical infrastructure, all of which intensify thermal loads.

For large mechanised operations, Dr Chikande says robust cooling systems, high-volume fans, and carefully engineered airflow networks are essential. Conventional mines must balance adequate airflow against energy costs, while artisanal miners face the gravest risks; narrow shafts and minimal monitoring leave workers vulnerable to heat stress and oxygen deficiency.

The Complexity of Airflow Management

Managing airflow is not just about heat; it requires meticulous network planning. As mines expand laterally and vertically, airway resistance increases, making it harder to deliver sufficient ventilation to working faces. Dr. Chikande warns that many conventional operations only respond once problems arise, rather than anticipating them.

• Large Mines: Require advanced modelling, booster fans, and staged infrastructure aligned with LoM plans.

• Small/Artisanal Operations: Informal development can unintentionally block airflow, increasing exposure to dust, fumes, and gases.

Early integration of ventilation design into mine planning is the key to preventing these hazards.

Mechanisation and Automation Demands

The move toward mechanised and automated mining brings fresh challenges. Diesel particulate matter, concentrated production zones, and higher energy use all increase airflow requirements. Simultaneously, tele-remote and autonomous operations demand stable underground conditions to keep machinery and sensors functioning reliably.

Technology is playing an increasingly central role. Dr Chikande observes that larger mines are turning to real-time environmental monitoring, automated airflow controls, and integrated sensor networks. Even smaller operations can benefit from low-cost monitoring tools and structured airflow management to improve safety and efficiency.

Strategic Planning for the ‘Life of Mine’

Ventilation infrastructure is capital-intensive and difficult to relocate, yet mining layouts evolve constantly as ore bodies shift. Proactive planning is essential.

“Regular updates to ventilation models, involving specialists in strategic mine planning, and progressive expansion of infrastructure can prevent costly retrofits,” says Dr Chikande.

Smaller operations can achieve flexibility through modular fans and staged airway development, allowing systems to adapt as the mine grows.

Energy Efficiency: The Bottom Line

Ventilation is a major energy consumer, sometimes accounting for nearly half of the total power consumption in deep mines. Rising energy costs and sustainability pressures have put efficiency at the forefront. Mechanised operations are adopting technologies such as variable speed drives (VSDs) and ventilation-on-demand (VoD) systems, while conventional and artisanal miners are encouraged to focus on simple, well-planned airflow strategies.

Dr Chikande concludes that across all mining sectors, the challenge remains the same: ventilation must shift from reactive compliance to a core component of strategic mine planning. Without this shift, safety, productivity, and operational viability remain at risk.

Caledonia Mining Corporation Plc has posted record-breaking financial results for 2025, with revenue jumping 46% to US$267.7 million. A surging gold price combined with stable production drove the strongest year in the company’s history, Mining Zimbabwe can report.

By Rudairo Mapuranga

Explosive Profit Growth

Profit after tax more than doubled to US$67.5 million, a staggering 193% increase from the US$23.1 million reported in 2024. This growth was mirrored in earnings per share, which rose “211% to US$2.83″.

The dramatic earnings surge was fueled by a 44% increase in the average realised gold price, which reached US$3,383 per ounce. This windfall more than offset inflationary pressures and rising operational costs across the business.

Financial Highlights at a Glance (2025 vs. 2024)

Strengthened Balance Sheet and Liquidity

Caledonia’s cash generation saw a marked improvement, with free cash flow rising to US$62.1 million, up from US$10.6 million in the prior year. By the end of 2025, the company successfully transitioned from a net debt position of US$8.7 million to a robust net cash position of US$23.8 million.

“2025 has been a strong year for the Group, marked by record financial performance, excellent cash generation, and continued strategic progress across the business,” the company stated in its preliminary results announcement.

Reflecting this confidence, Caledonia maintained its quarterly dividend of 14 US cents per share, payable on April 17, 2026.

Operational Costs and Grades

While financial performance reached new heights, operational costs faced upward pressure:

• On-mine cash costs: Averaged US$1,263 per ounce.
• All-in sustaining costs (AISC): Reached US$1,952 per ounce.
• Processed Grade: Declined slightly from 3.2 g/t to 3.07 g/t.

These figures were marginally above guidance, primarily due to higher labour, consumables, and power costs.

Future Outlook: Bilboes and Beyond

In early 2026, Caledonia further fortified its liquidity with a US$150 million convertible senior notes offering, yielding approximately US$130 million in net proceeds. To protect future margins, the company initiated a hedging program, securing a floor price of US$3,500 per ounce for 3,000 ounces per month through December 2028.

This fortified financial standing provides the “greater flexibility” required to fund high-impact growth initiatives, including the development of the Bilboes project and ongoing exploration at Motapa.

A seasonal slowdown in global electric vehicle (EV) sales at the start of 2026 is masking a more critical structural shift in battery markets, one that could ultimately favour resource-rich countries like Zimbabwe, provided they move decisively up the value chain.

By Ryan Chigoche

The Numbers Behind the “Slowdown”

New data from Adamas Intelligence reveals that global passenger xEV sales, including battery electric (BEV), plug-in hybrid (PHEV), and hybrid vehicles, fell 39% month-on-month in January, representing a 6% decline compared to the same period last year.

The decline was most pronounced in the Asia-Pacific region, where sales dropped 46% from December, reflecting a typical early-year cyclical slowdown in the world’s largest EV market. Consequently, battery deployment mirrored this trend, falling 42% month-on-month to 64,381 MWh.

Key Data Summary: The 2026 EV & Battery Mineral Outlook

Structural Shifts: Larger Batteries, Higher Mineral Intensity

Beneath these headline declines, a more durable structural shift is taking shape. Despite weaker sales volumes, the average size of EV batteries continues to grow.

In January 2026, the global sales-weighted average battery capacity rose 8% year-on-year. As automakers push for longer range and higher performance, the amount of raw materials required per vehicle is increasing.

Lithium, Zimbabwe’s flagship battery mineral, remains central to this transition:

• Total Deployment: 37,275 tonnes of Lithium Carbonate Equivalent (LCE) were deployed globally in January, up marginally year-on-year.

• Average Intensity: The lithium content per battery rose 8% to 21.4 kg.

For Zimbabwe’s key assets, including Bikita Minerals, Arcadia Lithium Mine, and the Zulu Lithium Project, the implications are significant. Demand is no longer driven solely by sales volume, but increasingly by the specific mineral requirements of each unit.

The Push for Domestic Beneficiation

This shift coincides with the Zimbabwean government’s efforts to tighten control over its lithium value chain. The current ban on the export of raw lithium concentrates aims to force investment into domestic processing, ensuring more value is retained within the country.

In principle, this aligns with global trends. As battery chemistry evolves, the highest margins are shifting downstream into refined products like lithium carbonate and hydroxide.

The Industrial Challenge

However, the data also highlights a significant hurdle. The global battery supply chain remains heavily concentrated:

• CATL leads deployment across lithium, nickel, cobalt, manganese, and graphite.
• BYD continues to dominate EV battery demand.

These firms operate within deeply integrated ecosystems where chemical conversion and manufacturing are largely situated outside of Zimbabwe. Without sufficient local refining infrastructure, Zimbabwe’s push for beneficiation risks outstripping its current industrial base.

Untapped Potential: The Graphite Opportunity

Beyond lithium, the data points to a missed opportunity in graphite. As the largest material component in EV batteries by volume, graphite recorded a 10% year-on-year increase in average usage per vehicle. Currently, Zimbabwe’s graphite segment remains underdeveloped, potentially excluding the nation from a fast-growing market segment.

At the same time, the global shift toward Lithium Iron Phosphate (LFP) batteries is reducing demand for nickel and cobalt. This trend reinforces Zimbabwe’s resource advantage in lithium but highlights its vulnerability to over-reliance on a narrow commodity base.

Conclusion: A Delicate Balancing Act

Zimbabwe’s policy direction is broadly aligned with global market fundamentals: capturing more value from mineral wealth. However, execution remains the deciding factor.

• The Risk of Delay: Moving too slowly leaves the country as a raw material exporter in a chain dominated by foreign entities.
• The Risk of Aggression: Moving too fast without the necessary infrastructure risks disrupting production at a time when long-term demand remains resilient.

The latest data suggests the EV market is not weakening; it is maturing. For Zimbabwe, the real question is whether its industrial policy can mature alongside it.

Australia’s Invictus Energy (ASX: IVZ) is racing against a ticking financial clock. Despite a world-class discovery of oil and gas at the Mukuyu-2 well, a tightening cash squeeze and the collapse of a massive funding deal have placed Zimbabwe’s most ambitious energy project at a critical crossroads.

The $500 Million “Lifeline” That Vanished

In a major blow to investor sentiment, the US$500 million joint venture agreement with Qatar-based Al Mansour Holdings collapsed in January 2026. The deal, which would have seen the firm take a 19.9% stake in Invictus, was seen as the definitive “green light” for the Cabora Bassa Basin.

Without this capital, a significant funding gap has opened just as the project moves into the expensive appraisal and early development phases.

By the Numbers: A Tightening Cash Position

According to recent financial reports, the “burn rate” for exploration is hitting hard:

• Half-Year Loss: A$4.23 million (up 27.6% from the previous year).

• Cash Reserves: A$4.51 million remaining as of late 2025.

• The Runway: At current spending levels, Invictus has approximately six months of operations covered before needing a new equity injection or a strategic partner.

National Project Status: A Silver Lining?

While the balance sheet is under pressure, the geological and political support for the project remains ironclad. In September 2025, the Zimbabwean government granted the project National Project Status, providing:

• Duty Exemptions: Drastically lowering the cost of importing specialized drilling equipment.

• Strategic Security: Exclusive Prospecting Orders (EPOs) extended through 2028.

The Eureka Pilot: Proving the Concept

Invictus isn’t standing still. A pilot project is already underway to supply gas to the Eureka Gold Mine.

• Phase 1: 12 MW of gas-to-power electricity.

• Phase 2: Potential expansion to 50 MW. This move is critical. If Invictus can prove that Mukuyu’s gas can power a Zimbabwean mine, it becomes an “investment-ready” asset for a major International Oil Company (IOC).

Beijing has moved to tighten discipline among its lithium investors in Zimbabwe, warning companies to strictly comply with local laws or risk significant financial losses in an increasingly unpredictable policy environment.

A Formal Advisory from the Embassy

In a formal advisory issued by the Chinese Embassy in Harare, Chinese enterprises and nationals were urged to strengthen risk prevention measures and fully align their operations with Zimbabwe’s regulatory framework. The notice follows the government’s recent sweeping ban on lithium concentrate exports.

The advisory makes it clear that the burden of risk now sits squarely with the investors. Companies are being told to:

• Thoroughly assess Zimbabwe’s policy environment before committing capital.
• Ensure strict legal compliance during all phases of operation.
• Prepare for financial losses arising from “sudden policy changes.”

This blunt language serves as a pointed reminder that regulatory shifts in the region can no longer be treated as exceptional events, but as a standard cost of doing business.

The “Sudden” Export Ban

The guidance comes just weeks after Zimbabwe imposed an immediate and indefinite ban on the export of raw minerals, including lithium spodumene concentrate. Authorities stated the move was necessary to curb smuggling and force the sector toward local beneficiation (processing).

Announced by Mines Minister Polite Kambamura on February 25, 2026, and later approved by the Cabinet, the ban was enforced with unusual speed. It applies even to shipments already at the border. Exports are now strictly limited to companies with approved in-country processing facilities and compliant mining titles.

The Stake: $1.4 Billion and Growing

For Chinese firms, which dominate Zimbabwe’s lithium sector, the shift has triggered an abrupt and costly adjustment. Since 2021, Chinese investors have poured more than US$1.4 billion into Zimbabwe, transforming it into Africa’s largest hard-rock lithium producer.

Industry titans—including Zhejiang Huayou Cobalt, Sinomine Resource Group, Chengxin Lithium, and Yahua Industrial—now control the bulk of production, supplying a significant share of China’s global spodumene imports. However, this dominance has not shielded them from the new regulatory risks.

A New Era of “Financial Discipline”

The embassy’s advisory stops short of criticising Zimbabwe’s policy direction, but the message is firm: adapt or suffer. It signals a shift in Beijing’s overseas investment strategy—moving away from aggressive expansion toward a model defined by risk awareness and legal caution.

“Investors shall conduct a comprehensive and in-depth assessment… so as to avoid losses resulting from government policy changes,” the embassy stated.

Market Impact

In the short term, the export ban has halted shipments and tightened the supply into China, providing some support for global lithium prices. However, for operators on the ground in Zimbabwe, the immediate challenge is not market volatility—it is the high cost of non-compliance under Beijing’s watchful eye.