Mining ZimbabweLatest Mining News, Policy and Industry Updates

Small-scale chrome miner and former Chrome Miners Association chairman, Shelton Lucas, has called for urgent investment in the country’s railway infrastructure, arguing that the lack of efficient rail transport is undermining the competitiveness of Zimbabwean chrome producers in global markets, Mining Zimbabwe can report.

By Rudairo Mapuranga

Lucas, speaking to Mining Zimbabwe, noted that while South Africa — Zimbabwe’s biggest competitor in chrome — is already supported by an extensive rail network with City Deep in Johannesburg as a key logistics hub, Zimbabwe continues to rely heavily on road transport, making its chrome exports significantly more expensive.

“From Mvurwi to Beira or Maputo by road, transport costs range between US$50 to US$60 per tonne. With proper rail investment, this could drop to between US$10 and US$20 per tonne,” Lucas said. “That difference is enough to transform our competitiveness and attract more buyers and investment in both chrome concentrates and ferrochrome.”

He added that Zimbabwe’s chrome sector is being priced out of key export markets due to high inland transport costs, which cut into producer margins and discourage beneficiation and value addition.

“When we talk about value addition in Zimbabwe, we must also talk about cost reduction through infrastructure. Railways are the artery of bulk mineral movement. Without rail, we can’t talk of serious growth,” he said.

Lucas said improved railway infrastructure could stimulate downstream investments in smelting and ferrochrome production, as investors would see Zimbabwe as a logistically viable destination.

His sentiments echo those of Dinson Iron and Steel Company (DISCO) CEO, Ben Xu, who recently told delegates at the Chamber of Mines Annual Conference in Victoria Falls that rail is not just an option, but a necessity if Zimbabwe is to become a global player in mineral exports and steel production.

“Zimbabwe is a landlocked country, but we want to make it trade-linked,” Xu said. “To link markets effectively, logistics are critical. Whether it’s steel, lithium, iron ore, or chrome, we need to ensure these products can move efficiently to ports and buyers.”

Xu warned that the country’s growing mineral output — particularly from iron ore, steel, lithium, and chrome operations — could soon overwhelm existing road-based logistics systems. He said DISCO has taken the lead in proposing the “Grand Railway Solution,” a special purpose vehicle (SPV) designed to partner with the National Railways of Zimbabwe (NRZ), government, and the private sector to modernise and expand rail infrastructure.

“Steel is not a light product. It’s not ideal for long-distance road haulage. To move large volumes efficiently, we must depend on the railway network,” Xu said. “DISCO is not a railway company, but we have initiated the Grand Railway Solution and are engaging with government to move the project forward quickly.”

The proposed solution would enable bulk cargo transport at a lower cost, making Zimbabwe’s exports more competitive in the region and beyond.

Lucas added that beyond cost savings, rehabilitating the railway system would decongest roads, reduce carbon emissions, and extend the life of road infrastructure, aligning with Zimbabwe’s environmental and climate objectives.

“We should look at this not just as a mining issue, but as a national economic strategy. From the farmer to the smelter, everyone wins when rail works,” Lucas said.

Currently, Zimbabwe’s mining companies pay a premium to haul minerals to ports in Beira, Maputo, or Durban, eroding profit margins and reducing incentives for beneficiation. Analysts estimate that a functioning railway system could save chrome and steel producers millions annually and make Zimbabwe a serious mineral export hub in Southern Africa.

As DISCO ramps up production at its US$1 billion steel plant in Manhize, targeting 600,000 tonnes annually, the urgency to fix rail becomes even clearer. Both Lucas and Xu agree: the time for talk is over, and the railway renaissance must begin now.

“If we don’t fix rail soon, we risk collapsing the entire vision for a value-added mining economy,” Lucas warned. “Zimbabwe’s future in chrome and steel depends on this.”

Multi-listed, gold-focused miner Caledonia Mining Corporation Plc is sharpening its focus on what could become Zimbabwe’s largest gold operation the Bilboes gold project, with the company exploring multiple funding routes to bring the $400 million capital-intensive vision to life, Mining Zimbabwe can report.

By Rudairo Mapuranga

Speaking to Mining Zimbabwe, Caledonia CEO Mark Learmonth described the Bilboes project as “transformational” not only for the company but also for Zimbabwe’s broader economic and mining landscape. The project is expected to produce approximately 1.5 million ounces of gold over an initial 10-year life-of-mine, positioning it as one of the most significant gold ventures in the country’s recent history.

“A project as big as Bilboes, if successful, would be transformational for Caledonia. It would also be transformational for Zimbabwe—not just in terms of economic contribution, but by forcing international investors to revisit and reconsider their misconceptions about Zimbabwe as a mining investment destination,” Learmonth said.

According to Learmonth, internal cash flows and external debt financing will be key pillars in advancing Bilboes, with the company deliberately seeking to minimise equity dilution for existing shareholders. He acknowledged that raising new equity funding is expensive, given that Caledonia’s share price currently does not reflect the true underlying value of the business.

“To fund this project, we are looking at maximising internally generated equity while exploring debt to avoid unnecessary dilution. Our disciplined approach is to build value, not just raise capital for the sake of it,” Learmonth emphasised.

The CEO noted that while Bilboes is a long-term flagship project, near-term revenue opportunities elsewhere in Caledonia’s portfolio are being actively considered to further strengthen the company’s equity base. This, he said, could lead to an even greater internal contribution toward the Bilboes’ development.

Adding to the upside is the potential expansion of the project through the incorporation of the neighbouring Motapa property, where Caledonia has just started exploration. The inclusion of Motapa could make the Bilboes footprint even larger, extending its life and boosting gold output beyond initial expectations.

“Bilboes is already a big project. But the integration of Motapa could scale it further, and that’s where the real transformational value lies—for us and for Zimbabwe,” Learmonth added.

Despite Zimbabwe’s historical challenges with perception in global capital markets, Caledonia believes that Bilboes could be the catalyst that reshapes narratives, especially if executed with transparency, discipline, and adherence to international standards.

“It is beholden on all participants in the Zimbabwe mining sector to actively work toward changing these misperceptions. If we get this right, it could open the door to more capital being available at lower costs to fund not just Bilboes, but other mining projects across the country,” said Learmonth.

The Preliminary Economic Assessment (PEA) for Bilboes, released last year, pegged the total capital requirement at over US$400 million. While this presents a financing challenge, Caledonia is confident in its methodical approach, prioritising value optimisation, capex efficiency, and smart financing.

As the company continues to engage both local and international partners, the success of Bilboes could usher in a new era for Zimbabwe’s gold sector—a future built on scale, confidence, and investment-grade performance.

• With a design capacity of 1 million tonnes, Palm River is set to surpass all local output and establish Zimbabwe as a leader in ferrochrome production.

Zimbabwe’s ferrochrome industry is set for a seismic shift as the Palm River Project, located within the Palm River Energy Metallurgical Special Economic Zone, continues ramping up operations toward its design capacity of 1 million tonnes per annum—a production milestone that will position it as the country’s largest ferrochrome producer by far, Mining Zimbabwe can report.

By Rudairo Mapuranga

Commissioned in February 2025, the Palm River ferrochrome complex, driven by Xintai Energy and Metallurgical Company, has already begun contributing to the country’s beneficiation and value addition drive in chrome. The mega project is expected to dwarf existing operations, whose combined current output hovers around 270,000 tonnes per year.

Speaking at a post-Cabinet briefing on Tuesday, Minister of Information Hon. Jenfan Muswere said the Cabinet reaffirmed its ban on the export of chrome ores, stressing the urgent need to develop Zimbabwe’s ferrochrome industry locally rather than ship raw ores to offshore processors.

“With immediate ramping up to a design capacity of 1,000,000 tonnes of ferrochrome production, the Palm River Project will make Zimbabwe a key ferrochrome hub in Southern Africa. It is also a response to the Government’s thrust on value addition and beneficiation, aligned with Vision 2030,” said Minister Muswere.

Ferrochrome, a critical input in stainless steel manufacturing, remains one of the most volatile minerals in terms of pricing, subject to global economic and industrial cycles. Zimbabwe’s push to value-add and dominate regional ferrochrome supply comes at a time when the global market is seeking stable, high-volume suppliers of the mineral.

According to Minister of Mines and Mining Development Hon. Winston Chitando, there are currently about 10 ferrochrome producers in Zimbabwe, with capacity ranging from as low as 3,000 tonnes to 84,000 tonnes per annum. The combined national installed capacity is around 270,000 tonnes, making the 1-million-tonne Palm River vision a true outlier and game-changer.

To complement ferrochrome beneficiation, the government has suspended the issuance of chrome mining titles exceeding 100 hectares to maintain orderly development and focus efforts on value addition through smelting and processing.

Palm River’s Green Energy Advantage

What makes Palm River’s rise even more strategic is its self-sufficiency in power—an Achilles’ heel for most of Zimbabwe’s heavy industries. Xintai’s US$3.6 billion investment has received commendation for generating its own electricity by capturing gas emissions and converting them into clean energy for use in its smelting operations.

This model not only reduces pressure on the national grid but also puts Zimbabwe in line with global best practices on green metallurgy. Minister Chitando earlier commended Xintai’s move, describing it as “a breakthrough in sustainable mining and processing that other producers must emulate.”

What the Future Holds

As the Palm River facility continues to scale up, the ripple effects across Zimbabwe’s chrome and steel industry will be enormous:

• Increased employment, especially for metallurgists, engineers, and technicians.
• Local downstream industries such as stainless steel manufacturing will benefit from reliable ferrochrome supplies.
• Export earnings are set to increase significantly as Zimbabwe moves from ore exporter to a regional ferrochrome powerhouse.

Yet challenges remain. Price volatility, infrastructure gaps, and capital access for smaller players still hinder broader industry growth. However, with a mega project like Palm River setting the pace and showcasing what’s possible with visionary investment, Zimbabwe’s long-standing ambitions for a value-driven mining industry are finally being realised.

As the country transitions from just being a source of chrome ore to a global ferrochrome player, the Palm River Project proves that Zimbabwe is not just mining—it’s building a world-class metallurgical industry.

In a move that may redefine investor confidence in Zimbabwe’s mining sector, the Zimbabwe Investment and Development Agency (ZIDA) has unveiled a new Investor Grievance Response Mechanism (IGRM) designed to protect existing investments from disruption due to sudden policy shifts, bureaucratic hurdles, or adverse actions by government institutions, Mining Zimbabwe can report.

By Rudairo Mapuranga

For Zimbabwe’s mining industry—arguably the bedrock of the economy—this development could not have come at a more critical time.

The IGRM seeks to address investor concerns swiftly and transparently before they escalate into disputes that may derail entire projects. With mining operations often requiring significant upfront capital, long-term commitment, and a delicate relationship with multiple government agencies, the existence of a formal channel for resolving grievances represents a significant boost to investment retention.

In recent years, miners—especially large-scale and foreign investors—have expressed concerns over abrupt regulatory changes, delays in approvals, and contractual uncertainties. These issues, while sometimes minor, often have a ripple effect on production timelines, supply contracts, and ultimately on export earnings.

By launching a dedicated grievance mechanism, ZIDA is not only acknowledging these realities but acting to correct them in a structured, investor-friendly manner.

The mechanism operates through a straightforward digital submission process. When a miner, for instance, is affected by a regulatory change from a Ministry, Department or Agency (MDA)—whether it involves delays in Environmental Impact Assessment approvals, changes to mining title policies, or forex payment challenges—they can submit a grievance directly via the ZIDA portal. The grievance is then reviewed and assessed for urgency and impact. ZIDA promises to act as a bridge, ensuring timely communication and accountability between the investor and the relevant authority, with a five-day deadline set for MDA responses.

If additional information is needed from the investor, they have up to thirty days to furnish details—ample time considering the operational demands within mining companies. ZIDA will then coordinate the dialogue, provide resolution, and, where necessary, facilitate meetings to bring all parties together.

The mining sector is among the most regulated in Zimbabwe, with touchpoints across Ministries including Mines, Finance, Environment, and Local Government. A mechanism such as this, which centralises grievance resolution, could dramatically cut down delays and restore investor faith in the administrative system. Most importantly, it sends a message that Zimbabwe is serious about safeguarding investments already on the ground.

ZIDA, established under the ZIDA Act (Chapter 14:38), has already made notable progress through its One Stop Investment Services Centre, which assists with business registration, licensing, tax facilitation and now, investor aftercare. With the addition of the IGRM, the Agency is adding a critical layer of support, particularly for mining investors navigating complex stakeholder environments.

The mining sector needs institutional certainty to thrive. Whether it’s a foreign lithium producer facing delays in plant commissioning or a local gold miner battling access to electricity due to unclear government priorities, the IGRM provides a structured recourse to ensure operations continue unhindered.

ZIDA’s Corporate Affairs Manager, Judith Mbetu, noted that the mechanism aligns with global best practice and is not just about resolving disputes, but fostering trust. It’s an approach that ensures grievances don’t escalate into legal battles that could jeopardise the mining operation or deter potential reinvestment.

As Zimbabwe works to attract and retain mining investment—be it in lithium, gold, coal, or PGMs—the introduction of this mechanism adds another layer of credibility to its investment promotion efforts. In a competitive African landscape where investor confidence is shaped by ease of doing business and dispute resolution frameworks, the IGRM stands as a clear signal: Zimbabwe is not only open for mining business—it is ready to listen, act, and protect those who dare to invest.