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Zimbabwe recorded a 27% increase in mineral export volumes during the first half of 2025, but total earnings fell short of last year’s levels due to tumbling global prices for key minerals, according to the Minerals Marketing Corporation of Zimbabwe (MMCZ).
By Ryan Chigoche
Data from the state-run agency show that mineral exports brought in US$1.4 billion between January and June 2025, down from US$1.56 billion over the same period in 2024.
The sharp drop in revenue came despite a strong uptick in production, underscoring how commodity price volatility continues to weigh on Zimbabwe’s mining sector.
Lithium grows in tonnes, not dollars
The lithium sector continued its rapid expansion, with spodumene concentrate exports rising to 586,197 tonnes, up from 451,824 tonnes in the first half of 2024. However, revenues fell by 24% due to declining lithium prices on the global market.
Coal and steel push ahead
Coal exports also showed strong performance, with shipments jumping 121% to 253,848 tonnes, driven by increased production capacity. Steel exports, MMCZ said, are also surging, benefiting from growing regional demand.
Diamonds disappoint amid falling prices and job cuts
Zimbabwe’s diamond sector took a heavy hit in the first half of 2025, with export volumes plunging 60% to 2.7 million carats and revenue falling 37%, according to the MMCZ.
This comes amid a prolonged global downturn in rough diamond prices, which have dropped from over US$3,000 per carat in 2020 to under US$1,000, as lab-grown alternatives gain traction and consumer demand weakens.
At the same time, operational challenges persist. The Zimbabwe Consolidated Diamond Company (ZCDC) recently retrenched around 400 workers, citing foreign currency shortages and declining profitability.
Logistics continue to choke export potential
Despite rising production, MMCZ highlighted that poor logistics remain a serious barrier to maximising export value, especially for bulk minerals like steel, coal, and granite.
“Limited inland logistic capacity, heavily reliant on road transport, continues to impede the efficient movement of materials to market. This also places local producers at a disadvantage against regional competitors benefiting from superior road and rail infrastructure and port access, particularly impacting steel, granite, coke, and coal exports where freight costs are risking customer churn,” said MMCZ.
Railways: A broken link slowly being repaired
Zimbabwe’s railway infrastructure, once the backbone of mineral logistics, has been eroded by decades of neglect, underinvestment, and aging equipment.
The National Railways of Zimbabwe (NRZ) operates at a fraction of its intended capacity, forcing mining companies to rely on expensive road transport and choking the flow of key exports to ports.
In a bid to reverse this, Zimbabwe last year entered into a US$533 million partnership with China Railway Group Ltd to modernise its rail network.
The project aims to overhaul critical infrastructure, improve locomotive availability, and streamline freight logistics.
The goal is to restore the railway as a competitive channel for bulk mineral movement and close the widening gap with neighbours like Mozambique and Zambia, whose upgraded corridors have given them a clear export advantage.
As global demand for critical minerals intensifies, Zimbabwe’s ability to resolve its transport constraints will be pivotal in unlocking greater value from its growing mineral output.
