Online Reporter
Business Reporter
ONGOING and new mining projects are increasingly driving the country towards the realisation of an empowered, industrialised, modern and prosperous country by 2030, Mines and Mining Development Minister Winston Chitando has said.
Several mining companies are currently engaged in projects aimed at improving capacity, efficiency and value addition.
In an interview after touring Hwange Colliery Company and the Zhongjin Heli Energy 5 Miles Industrial Park in Hwange recently, Minister Chitando said ongoing projects at the two companies, in addition to other projects countrywide, align with the Government’s vision and commitment to value addition and beneficiation.
“The projects are a fulfilment of President Mnangagwa’s vision of growing the economy, and when he talks of an upper middle-income economy, it means growing the gross domestic product (GDP) so that we get to an upper middle-income economy. It is not an event; it is a process, and the process is underway,” he said.
Minister Chitando said the joint venture between Hwange Colliery Company (HCCL) and Zhongjin Investments, where they have since invested US$60 million into underground mining, is designed to unlock the potential of Zimbabwe’s oldest colliery operation.
“Initially, this is supporting the resuscitation of the Hwange Colliery coke oven battery, which will be producing 18 000 tonnes of coke per annum.
“The joint venture company between Hwange and the partner is starting with a foundation of a staggering 1,8 million tonnes of coke per annum. This is in fulfilment of His Excellency’s vision of growing the economy by 2030,” he said.
The projects, he said, are having a massive impact on downstream activities in Hwange.
“Besides direct investment in mining, there is a significant opportunity to provide heavy underground mining machinery and other supplies, as well as transportation infrastructure and materials, including railways, and bespoke power generation alternatives. All this points to downstream activities and service provision.”
The Zhongjin Heli Energy 5 Miles Industrial Park under development in Hwange, Minister Chitando added, has significant potential to contribute to Zimbabwe’s economy through its investments valued at over US$500 million.
“The value addition and beneficiation aspect of this project is particularly impressive, as it maximises the use of our natural resources and creates a range of economic benefits,” he said.
The industrial park is an integrated development that includes a coal-fired power plant, a cement factory and a coking plant.
The power plant has a capacity of 235 megawatts (MW), with 100MW already being produced.
Overall, the project’s economic impact in terms of employment opportunities and economic activity is substantial, with
an estimated annual revenue of US$500 million.
“This project demonstrates the potential for industrial development to drive economic growth and create wealth in Zimbabwe,” he said.
“We are committed to supporting initiatives like this that contribute to our economic development goals.”
Platinum
The expansion project at Zimplats and development at Karo are expected to result in continuous growth in the production of platinum group metals (PGMs).
The local platinum industry is expected to contribute US$2 billion to total mining revenues.
In its 2025 mining sector report, brokerage firm IH Securities said the first quarter of the year had seen “cash investment from foreigners into mining as per Zida (Zimbabwe Investment and Development Agency) amounting to US$651,18 million, which was an increase from US$434,54 million in the previous quarter”.
Zida also recorded US$211,09 million in capital equipment being brought into the country, while foreign currency loans registered were at US$43,25 million.
As per the Midterm Monetary Policy Statement, the mining sector received 9,6 percent of the total outstanding credit in the market, says part of the IH report.
“The mining sector remains a fairly attractive sector for investment, with activity maintaining an upward trajectory,” added the report.
“The sector remains on a growth path, driven largely by foreign inflows and strategic reinvestments, even as local funding lags behind. The positive momentum, underpinned by ongoing projects and sizeable pipeline commitments, positions mining as a key pillar for investment in 2025 and beyond.”
Victoria Falls Stock Exchange-listed Padenga plans to invest US$19,18 million towards expansion this year, while US$14 million will be spent on improving capacity at Pickstone Mine.
Platinum and gold
In its economic snapshot for August 2025, FBC Securities said the mining sector continues to be a major growth driver, with PGMs and gold sustaining revenues.
It said the global platinum market is in a structural deficit in 2025, a dynamic that has kept prices firm despite global headwinds, while gold prices remain historically elevated relative to pre-pandemic levels owing to geopolitical tensions.
“By contrast, lithium, once heralded as Zimbabwe’s future growth engine, has seen prices collapse from the highs of 2022. Spot prices slipped below US$10 000 per tonne in early 2025, though modest recoveries have been recorded in recent months as supply rationalisation met revived Chinese demand,” FBC Securities said.
Market watchers believe Zimbabwe’s mining sector is gaining momentum, driven by significant investments and strategic initiatives that could help the country achieve its economic goals.
“The mining sector remains a fairly attractive area for investment and requires consistent and predictable policies to attract further investment and ensure stability,” analyst Mr Walter Mapfumo said.
Zimbabwe’s mining sector is highly diversified, with close to 40 different minerals, and the predominant minerals include PGMs, chrome, gold, coal, lithium and diamonds.
The country also boasts the second-largest platinum deposits and high-grade chromium ores in the world, with approximately 2,8 billion tonnes of PGMs and 10 billion tonnes of chromium ore.
The sector accounts for about 12 percent of the country’s GDP and 80 percent of national exports.
