Despite the continued challenges being faced by the mining sector, some mines have managed to defy odds by consistently churning out positive results both for shareholders and the nation in general.
During the course of the year, some mining companies have folded due to the crippling power crisis and depreciating global mineral prices.
This publication however for the second time is going to come up with a top ten list of operating companies in Zimbabwe.
1. Caledonia Mining Corporation
The second time in a roll the mining company has managed to top the rest by continuously churning out fantastic results.
Since inception, the mining company immensely showed its image as a good corporate citizen and has been on the best-performing companies owned by foreign investors.
Listed on the New York Stock Exchange, the mining firm being run by Steve Curtis and Mark Learmonth is currently carrying out an ambitious expansion drive aimed at producing 80 000 ounces of gold by 2021.
The company’s strategic focus remains the implementation of its investment plan at Blanket Mine which was announced in November 2014 and is expected to extend the life of mine. The expansion project is expected to be commissioned this year.
Zimplats, the country’s biggest platinum miner has been true to its economic standing by playing a huge role in anchoring the ailing Zimbabwean economy. The mining firm has remained an anchor to the Zimbabwean economy and its professionalism cannot be compared to any.
The mining firm has been consistent in posting positive results and its role in economic development is unquestionable. The platinum miner’s total payments to Government in direct and indirect taxes has been sitting at $17 million in the quarter to March 2018.
The platinum miner last year commissioned its US$60 million making it one of the leading miners in Zimbabwe in terms of production and profitability.
Modest in nature and quite in its activities, the Anglo platinum owned miner, Unki has been doing well and this has been seen through projects put in place to date.
The Zvishavane based platinum producer has always been visible in its corporate responsibility initiatives with the sponsoring of the famed FC Platinum. Its role in economic development should never be underestimated especially from the fact that it has managed to keep alight the mining town of Zvishavane following the folding of the once vibrant Shabani Mines.
The company has been consistent in its production despite earlier clashes with Government where at one time, it’s South African shareholder mooted shutting down the Zimbabwe mining operation.
5. Rio Zimbabwe
RioZim was incorporated on August 29, 1956 as Rio Tinto Southern Rhodesia Ltd. It was set up initially to develop and mine the Empress Nickel deposit in the Midlands and was the first mining operation to be set up outside Europe by Rio Tinto plc.
RioZim separated from Rio Tinto plc in 2004 and became a wholly-owned Zimbabwean company that produces gold, coal, toll refines nickel and copper. The company is listed on the Zimbabwe Stock Exchange (ZSE). Despite challenges, the company has managed to stay afloat.
Arguably the country’s biggest ferrochrome producer, the firm
has had its fair share of challenges which saw it being placed under judicial management.
Zimasco was placed under JM in June 2016 after its indebtedness to banks and creditors had gradually increased to about $65 million. However following various initiatives, the company has since exited judicial management and by January 2018 the company had posted $160 million in turnover and a profit of $45 million.
Despite the debt albatross hanging around the firm, Zimasco has managed to defy the odds and has so far managed to repay its debt is one of the profitable companies at the moment.
8. Asa Resource Plc
Despite massive shareholder scandals rocking the group company, its mining subsidiaries, Bindura Nickel Corporation and Freda Rebecca Gold Mine have continued to show massive resilience posting encouraging results. There have been some allegations of externalization of funds at Freda Rebecca by Chinese shareholders amounting to about $15 million. This was a major setback to the mining group, a situation that eventually led to the suspension of its share on the London Stock Exchange.
The mining group is currently under the stewardship of administrators, Mark Skelton and Trevor Birch of Duff and Phelps Limited. There are also plans currently underway to restart the smelter at Bindura Nickel Corporation.
9. Makomo Resources
Over the past six years, Makomo Resources has grown to become the biggest coal miner by output and has also become the biggest supplier of coal to Zimbabwe Power Company.
Over the years the miner has managed to clinch a contract of supplying 600 000ntonnes a month of coal to ZPC and the miner has a monthly output of 160 000 tonnes of coal. At its peak the output was 180 000 tonnes.
At the moment Makomo Resources also exports coal to Zambia and Malawi.
10. Zimbabwe Consolidated Diamond Mining Company
Following the consolidation of diamond mines by the Government, there has been sanity and order in that sector. Production has been consistent and this also saw Government injecting a considerable amount of investment capital to boost production.
The diamond miner, however, is targeting to produce 10 million carats by 2023, an output that is expected to feed into President Mnangagwa’s vision of a middle-income country by 2030.
The diamond mining sector earnings are expected to hit $18 billion by 2023.
This article first appeared in the February 2020 issue of the Mining Zimbabwe Magazine