Online Reporter
Nqobile Bhebhe
Zimpapers Business Hub
FOR decades, Zimbabwe’s mining industry was largely assessed through a narrow lens — mineral output, export earnings and foreign currency generation.
Gold, platinum group metals (PGMs), chrome, diamonds, coal and, more recently, lithium, have long underpinned the sector’s contribution to the economy.
Today, however, a fundamental transformation is taking shape.
Mining companies, policymakers and industry stakeholders are increasingly embracing a broader development agenda centred on sustainable value creation, signalling a departure from the traditional extraction-focused model towards one that delivers lasting economic, social and environmental benefits.
The shift comes as Zimbabwe advances towards its Vision 2030 goal of attaining upper middle-income economy status, with mining expected to play a far more strategic role in industrialisation, community development, skills transfer and economic diversification.
Industry experts argue that the future success of mining can no longer be measured solely by tonnes extracted or export revenues generated, but by the extent to which mineral wealth creates enduring value within the domestic economy.
At the centre of this transition is a growing commitment to environmental, social and governance (ESG) principles.
Across the sector, mining firms are investing heavily in renewable energy projects, water recycling systems, emission reduction technologies and improved waste management practices as they seek to balance profitability with sustainability.
Several producers have established solar power facilities to supplement grid electricity supplies, reducing operational costs while lowering carbon emissions.
Beyond environmental considerations, these investments are increasingly viewed as business imperatives.
Global investors, financiers and commodity buyers are placing greater emphasis on responsibly produced minerals, making sustainability a critical factor in securing market access and attracting capital.
Consequently, ESG compliance is evolving from a regulatory requirement into a source of competitive advantage for mining companies operating in international markets.
Perhaps the most significant aspect of the industry’s transformation lies in beneficiation and value addition.
Mining players have long bemoaned Zimbabwe’s stance of exporting large volumes of raw minerals, effectively allowing much of the value creation process to occur outside its borders.
Government policy is now increasingly geared towards retaining a greater share of that value within the country through local processing and manufacturing.
The platinum sector offers one of the clearest examples of this shift.
Zimbabwe’s PGMs industry, which has accounted for more than 40 percent of mineral exports over the past five years, is undergoing a major transformation led by Zimplats through a US$1,8 billion expansion programme implemented over the past five years.
The sector directly employs about 18 000 people, representing nearly 30 percent of formal employment within mining.
Globally, PGMs have become increasingly important due to their role in the energy transition, particularly in fuel cells, catalytic converters and emission-reduction technologies.
Recognising these opportunities, Zimplats has invested substantially in local processing infrastructure, including a new smelter commissioned in 2024 that tripled processing capacity to 380 000 tonnes of concentrate annually.
The company is also investing US$190 million towards the revival of its base metal refinery at the Selous Metallurgical Complex, with US$36 million already committed.
Speaking at the PGMs Symposium held on the sidelines of the Chamber of Mines Annual Conference in Victoria Falls recently, Zimplats chief executive officer Mr Alex Mhembere reaffirmed the company’s commitment to local beneficiation.
“We operate an integrated business model covering mining, concentration and smelting. This ensures that multiple stages of value addition occur locally rather than offshore,” said Mr Mhembere.
“The expansion programme is not simply about increasing output. It is about creating a globally competitive, integrated and sustainable mining business.”
The company’s investment programme extends beyond processing infrastructure.
Zimplats is developing a 185-megawatt (MW) solar power project aimed at improving energy security and reducing its carbon footprint.
Phase 1A, comprising 35MW, was completed at a cost of US$37 million, while Phase 2A, which will add 45MW, is currently under construction.
The impact of beneficiation policies is already becoming evident.
Following the Government’s restrictions on exports of unbeneficiated minerals, total mineral sales reached US$983,85 million during the first quarter of 2026, with PGMs contributing US$543,97 million.
Once operational, the revived base metal refinery is expected to significantly strengthen domestic processing capacity and further deepen value retention within the country.
The lithium sector is following a similar trajectory.
As one of the world’s emerging lithium producers, Zimbabwe is increasingly positioning itself beyond raw ore exports by encouraging investment in processing facilities capable of producing higher-value lithium concentrates and downstream products.
Economists argue that beneficiation offers benefits extending far beyond increased export revenues.
“Beyond increasing revenues, beneficiation helps build domestic technical expertise, encourages innovation and reduces vulnerability to fluctuations in global commodity prices,” said economist Ms Alice Chikonzi.
The expansion of value addition activities is expected to stimulate manufacturing, create skilled employment opportunities and strengthen linkages between mining and other sectors of the economy.
Equally significant is the industry’s growing emphasis on community development and shared prosperity.
Historically, mining operations often functioned as isolated economic enclaves with limited benefits reaching surrounding communities.
That approach is increasingly being replaced by a model that recognises sustainable mining as inseparable from inclusive development.
Mining companies are investing in schools, health facilities, water infrastructure, roads, irrigation schemes, vocational training programmes and youth empowerment initiatives designed to strengthen economic resilience in host communities.
One notable example is Caledonia Mining Corporation’s artificial insemination programme targeting 1 000 cattle in Gwanda rural district.
Implemented in partnership with the Department of Veterinary Services, the initiative seeks to rebuild drought-depleted herds while improving livestock productivity and household incomes.
According to Caledonia’s 2025 ESG Report, the firm said: “The initiative targets 1 000 cows with an envisaged conception rate of 90 percent, aiming to restock cattle herds severely depleted by recent droughts while improving herd genetics and productivity over time.
“By combining irrigated horticulture with livestock restocking and veterinary support, our agriculture investments are helping to stabilise rural livelihoods and strengthen the economic foundations of communities that have historically been highly vulnerable to climate variability and the incidence of seasonal bovine disease.”
Such investments are viewed as helping secure the industry’s social licence to operate, while ensuring mining contributes to sustainable rural development.
The sector’s evolution from extraction to sustainable value creation aligns closely with Zimbabwe’s Vision 2030 aspirations.
“By promoting beneficiation, expanding local content participation, investing in communities and embracing environmental sustainability, the industry is creating a foundation for broader national development,” said Mr Farai Dube, a mining expert.
“The sector’s contribution extends beyond export earnings and fiscal revenues to encompass infrastructure development, skills transfer, technology adoption and employment creation.
“As global demand for critical minerals continues to rise, Zimbabwe is uniquely positioned to leverage its mineral resources for sustainable growth.”
