Mining ZimbabweLatest Mining News, Policy and Industry Updates

A chrome mining company operating in Chiromo Village, Zaka, has been ordered to shut down operations after the High Court ruled in favour of local villagers who argued that the mining activities threatened their homes, livelihoods, and sacred ancestral sites, Mining Zimbabwe can report.

Bailzone Mining (Pvt) Ltd, which held 60 mining certificates covering vast swathes of the rural village, was forced to down tools following a legal challenge mounted by villagers who said their constitutional rights were being violated by the company’s presence.

The applicants in the case—Gideon Rushinga, John Rushinga, Million Rushinga, and Pride Garauzive—successfully argued that Bailzone’s mining operations were encroaching on their homesteads, agricultural fields, grazing land, and graveyards. These sites, they said, were not only vital for their economic survival but also held deep traditional and spiritual significance.

The villagers also challenged the legal standing of the mining company’s operations, citing the Minister of Mines and Mining Development and the Sheriff of Zimbabwe as respondents in the matter. They demanded the cancellation of Bailzone’s certificates of registration, which were issued by the Provincial Mining Director for Masvingo.

In addition to questioning the legality of the mining claims, the villagers called for the nullification of the Environmental Impact Assessment (EIA) report that was approved by the Environmental Management Agency (EMA). They insisted that no mining activities should be allowed in Chiromo without community consultation, consent, and a proper assessment of environmental and cultural impact.

Court documents revealed that Bailzone’s attempt to obtain a court order barring villagers from interfering with its operations had earlier been dismissed, setting the stage for the more decisive case that followed. The court found that the mining company had failed to produce any evidence proving it had the legal authority—or the consent of the Zaka Rural District Council—to prospect or operate in the area.

Riding on the momentum of that ruling, the villagers escalated their legal fight, this time targeting the EIA reports and seeking a declaration that the chrome mining operations were both unlawful and socially disruptive.

Bailzone Mining contested the villagers’ arguments, claiming its mining certificates were still valid and had not been withdrawn by the Ministry. However, the court remained unmoved, siding with the community’s demand for protection of land rights, heritage, and their right to development in dignity and peace.

The judgment has been welcomed by many within Zimbabwe’s rural communities as a landmark decision highlighting the growing tension between rural landholders and mining companies in the country. It also reinforces calls for more responsible mining practices that respect environmental laws, traditional land uses, and the rights of rural citizens to free, prior, and informed consent.

As Zimbabwe pushes to boost investment in the mining sector under the US$12 billion target, the ruling is a timely reminder that development must not come at the expense of people’s homes, heritage, and fundamental rights.

Zimbabwe’s gold sector is poised for a potentially lucrative 2025 as the World Bank projects a 30 per cent increase in global gold prices, driven by safe-haven demand amid ongoing geopolitical and economic uncertainty, Mining Zimbabwe can report.

By Ryan Chigoche

According to the World Bank’s Global Economic Prospects 2025 report, annual average gold prices are expected to reach record highs this year before stabilizing through 2026 and 2027.

This positive forecast comes amid a broader slowdown in global commodity markets, with the prices of base metals projected to fall by 5 percent in 2025 and continue drifting lower before stabilizing. The decline in base metals such as copper and aluminium reflects persistent headwinds in global manufacturing and trade tensions, which have weighed on industrial demand.

In contrast, the precious metals price index, which primarily reflects gold along with silver and platinum, is expected to buck this trend with a significant price increase. This divergence highlights gold’s traditional role as a safe-haven asset during times of uncertainty.

“The precious metals price index, reflecting principally gold but also silver and platinum, is projected to buck the broader trend, increasing by more than 30 percent in 2025. Annual average gold prices are expected to reach a record high this year, supported by safe-haven flows, before plateauing in 2026–27,” the report said.

For Zimbabwe, where gold remains the largest contributor to export earnings and foreign currency inflows, this forecast carries important implications. The country’s national gold production target for 2025 is set at 40 tonnes, a goal that appears achievable based on current trends and planned investments.

Data from Fidelity Gold Refinery indicates that year-to-date gold deliveries reached 15.8 tonnes by the end of May 2025, marking the highest recorded figure for this period. While deliveries in May fell by 9.48 percent compared to April, mainly due to a 13 percent decline in small-scale mining output, large-scale mining production increased by 1 percent month-on-month.

Year-on-year figures show a 28 percent rise in total gold production, driven largely by small-scale miners whose output increased by 52 percent compared to May 2024. Conversely, large-scale mining output declined by 11.34 percent year-on-year.

Small-scale and artisanal miners remain vital to Zimbabwe’s gold production, historically contributing over 60 percent of output. In 2024, small-scale miners accounted for approximately 65 percent of total gold deliveries.

With government efforts to formalize and incentivize this sector, including payments in 100 percent US dollars, small-scale miners are expected to contribute around 25 tonnes toward the 2025 target.

Among large-scale producers, Caledonia Mining Corporation’s Blanket Mine is on track to meet its 2025 target of approximately 2,050 to 2,160 kilograms (2.05 to 2.16 tonnes), having recorded a strong first-quarter output of 530 kilograms. Padenga Holdings, through Dallaglio Investments, aims to produce between 2,638 and 2,799 kilograms (2.64 to 2.80 tonnes) as part of a $30 million capital investment plan to boost gold output.

Kuvimba Mining House is targeting a 13 percent increase in gold production in 2025, with a $38 million investment in Freda Rebecca Mine to extend its life and raise output to around 2,548 kilograms (2.55 tonnes), up from 2,229 kilograms (2.23 tonnes) in 2024. The company is also conducting exploration activities aiming to unlock approximately 40 million tonnes of ore containing nearly 2 million ounces of gold.

Together, these companies are expected to contribute at least 9,000 kilograms (9 tonnes) of gold, with other large-scale producers such as RioZim bringing total large-scale output to approximately 10,000 kilograms (10 tonnes). This strong production outlook positions Zimbabwe well to benefit from the World Bank’s forecasted 30 percent surge in gold prices, potentially translating into significant revenue gains amid a challenging global economic environment.

Global gold prices have already surged to record levels in 2025, hitting $3,500 per ounce in April and $3,432 per ounce in early May. Goldman Sachs projects prices could reach $3,700 per ounce by the end of the year, driven by geopolitical tensions and safe-haven demand.

The surge in prices is expected to increase revenues for Zimbabwean gold producers, helping to offset production challenges and boost export earnings. The mining sector is projected to grow by seven percent in 2025, with gold expected to exceed $3 billion in value, contributing significantly to foreign currency reserves.

However, challenges remain, including electricity shortages that disrupt mining operations and smuggling that leads to estimated annual losses of $1.5 billion. Regulatory changes, such as export surrender requirements, also pose hurdles for producers.

Small-scale miners, estimated to number between 500,000 and 1.5 million, remain a key driver of production and have the potential to increase output further with continued financial and policy support.

Contango Holdings Plc, the developer of the Muchesu Coal Project in Zimbabwe, has announced the receipt of an additional US$500,000 in royalty payments since February 2025.

By Ryan Chigoche

This brings total royalties received under the Mineral Royalty Agreement (MRA) with Huo Investments (Pvt) Limited to US$1,000,000.

The agreement stipulates a minimum annual royalty payment of US$2,000,000, with expectations that actual receipts will significantly exceed this amount.

The second tranche of US$1,000,000 is currently being finalised between the parties.

Commenting on the development, Carl Esprey, the CEO of Contango, said:

“We have now received US$1,000,000 in royalty payments under the MRA. These royalty payments strengthen the Company’s capital position and reaffirm the investor’s commitment to Muchesu. Work and capital investment have continued at Muchesu since our last update, including the commencement of installation of coke batteries. An additional RNS will be made addressing operational activities. It is, however, highly encouraging to report continued investment and expenditure at site by the investor, who remains the Company’s largest shareholder (20.42%).”

This strategic transition to a royalty-focused model marks a significant milestone for Contango, enabling the company to reduce operational risk while maintaining exposure to the long-term upside of the Muchesu Project.

The partnership with Huo Investments—an entity led by a prominent Zimbabwe-based Chinese investor—has already delivered substantial financial backing, which is accelerating production capacity on site.

Recent half-year results also confirmed strong progress at Muchesu, with ongoing infrastructure upgrades and capital deployment aimed at scaling output.

With its new structure in place and royalty revenues secured, Contango is positioning itself as a low-risk, cash-generative player in the Southern African coal sector.

Zimbabwe’s steel sector is on the brink of a long-overdue transformation but remains shackled by the outdated Iron and Steel Industry Act of 1942, a colonial-era statute ill-suited for modern industrial ambitions, Mining Zimbabwe can report.

By Rudairo Mapuranga

According to Martin January, Training and Operations Manager at the Zimbabwe School of Mines, the archaic law poses serious obstacles to investment, job creation, and sustainable growth — particularly as dynamic players like Dinson Iron and Steel Company (DISCO) ramp up operations.

“Zimbabwe stands at a critical juncture in its industrial development, where modernising the antiquated Iron and Steel Industry Act of 1942 could unlock significant economic opportunities for both businesses and workers,” January stated.

Originally enacted during World War II, the Act was designed to maintain state control over steel production through a monopolistic framework centred around the now-defunct Zimbabwe Iron and Steel Company (ZISCO). Today, that model persists in law but not in practice — to the detriment of emerging private sector giants like DISCO, which is investing over US$1.5 billion in a massive steel manufacturing complex in Manhize.

“With the once-dominant ZISCO now non-operational, the legislation must evolve to support dynamic private sector players like Dinson Iron and Steel Company while protecting national interests,” January explained.

The Act effectively centralises power over licensing, production quotas, and pricing decisions, creating barriers to entry and stifling the flexibility required in a competitive, export-oriented industry. January highlighted that the law’s preservation of single-player dominance is counterproductive. “The current framework, conceived in a colonial era of monopolistic state control, now inadvertently hinders job creation and economic growth.”

He added that DISCO’s project — expected to be the largest integrated steel plant in Africa — represents exactly the kind of high-impact development Zimbabwe needs to industrialise, yet regulatory bottlenecks persist. January is calling for a multi-licensing system that welcomes both large-scale operators and smaller downstream firms, creating a diverse and inclusive steel value chain.

“By transitioning to a multi-licensing system, we can foster healthy competition while maintaining strategic oversight — benefitting both large operators and smaller downstream businesses,” he said.

Crucially, January argued that Zimbabwe must redefine steel legally — not as a mineral, but as a manufactured product. This single change would open new doors for trade, beneficiation incentives, and alignment with regional industrial policies.

“Redefining steel as a manufactured product rather than a mineral would create new export opportunities, translating to more stable jobs in mining, processing, and fabrication,” he stated. He further called for the introduction of modern environmental standards to ensure that Zimbabwean steel remains globally competitive, responsibly produced, and community-conscious.

Beyond regulations, the real-world human impact of reform is enormous. “The human impact extends beyond direct employment,” January noted. “A revitalised steel sector could support thousands of indirect jobs in transportation, equipment maintenance, and related services — particularly in steel-producing regions like Redcliff and Manhize.”

He also emphasised the value of building local capacity: “By linking investment incentives to skills development and technology transfer, we can ensure Zimbabwean workers gain valuable expertise for long-term career growth.”

January’s remarks echo broader concerns from the private sector and industrialists like DISCO CEO Ben Xu, who have repeatedly stressed that Zimbabwe’s steel potential cannot be fully realised without a modernised, investor-friendly legal framework.

With the African Continental Free Trade Area (AfCFTA) opening regional export markets and Zimbabwe’s industrial projects gaining momentum, the call to repeal or overhaul the Iron and Steel Industry Act of 1942 is growing louder. As January put it, these changes are not just about enabling private profits — they are about reshaping Zimbabwe’s entire steel economy and positioning the country as a competitive player in global trade.