Online Reporter
Ray Bande
Senior Reporter
THE proliferation of Lab Grown Diamonds (LGDs), coupled with subdued global prices on the international market, are squeezing life out of the local diamond production sector by resulting in viability challenges.
Presenting the Minerals Marketing Corporation of Zimbabwe (MMCZ) trading update recently, General Manager, Dr Nomusa Moyo said the diamond sector continues to face pressure from subdued global prices and heightened competition from lab-grown diamonds.
Dr Moyo said the production of spodumene, a pyroxene mineral composed of lithium aluminum inosilicate, a commercially important source of lithium, is also being affected by subdued global prices.
“Export performance was temporarily affected by specific supply-side constraints. Mimosa Mining Company suspended exports between February and mid-May 2025 pending the resolution of a 15 percent beneficiated material tax exemption applicable to Zimplats.
“In addition, Bikita Minerals (Pvt) Ltd halted lithium petalite concentrate exports from January to June 2025 due to depressed international prices.
“The diamond segment continued to face pressure from subdued global prices and heightened competition from lab-grown diamonds (LGDs), which dampened revenue growth for the period,” said Dr Moyo.
In Manicaland, diamonds are being mined in the Chiadzwa area of Marange as well as in Chimanimani, while lithium is being extracted in Buhera District.
However, in her report, Dr Moyo said prices for the bulk of locally produced minerals were on the rebound towards the close of the third quarter.
“The market outlook began to improve towards the close of the third quarter, with notable recovery in key commodities that drive the bulk of Zimbabwe’s mineral exports.
“Prices of Platinum Group Metals (PGMs) firmed by 54,5 percent, ferrochrome by 24 percent, chrome by 22,6 percent, and lithium by 7,54 percent. This rebound positions the Corporation to meet its full-year export target, buoyed by strengthening global demand and renewed industrial activity in major consuming markets,” he said.
Dr Moyo said high energy costs have also affected the mining industry in recent times.
“MMCZ has reported a strong third-quarter performance, achieving significant growth in both mineral sales volumes and export earnings, despite a challenging operating environment characterised by high energy costs, logistics bottlenecks and soft global commodity prices.
“The trading environment in the quarter under review remained dynamic, shaped by both domestic and global developments in the minerals sector.
“While Zimbabwe’s mining industry demonstrated resilience, several operational constraints; particularly high electricity costs, intermittent power supply and logistical bottlenecks dealt our producers a challenging deck. This continued to affect smelter efficiency and mineral delivery timelines,” she said.
Dr Moyo said MMCZ continues to play a pivotal role in advancing the Government’s vision for mineral beneficiation, value addition and equitable participation in the extractive sector.
“At the end of September 2025, a total of 1 million metric tonnes of spodumene were sold, generating US$386,9 million. This represents a 27 percent increase in volume compared to 784,746Mt recorded during the same period in 2024.
“However, despite the rise in tonnage, export value declined by 11 percent, from US$432,4 million in 2024 to US$386,9 million in 2025, largely due to lower international spodumene prices,” she said.
On the sales performance, the MMCZ general manager said cumulative sales surged 14 percent in volume from 3,3 million Mt and 0,66 percent in value from US$2.34 billion.
“In the nine-month period to September 2025, total mineral sales reached 3,8 million Metric Tonnes (Mt) valued at US$2,36 billion. Compared to the same period in 2024, cumulative sales surged 14 percent in volume from 3,3 million Mt and 0,66 percent in value from US$2,34 billion, reflecting steady export performance despite pricing headwinds.”
Dr Moyo said MMCZ is also concerned with combating mineral leakages.
“As part of its governance and accountability drive, the Corporation intensified its mineral resource monitoring and inspection framework. To date, MMCZ has deployed officers at all key border posts to enhance oversight and curb leakages.
“We have also instituted mandatory sampling and assaying of mineral exports for independent verification prior to export documentation as well as conducted granite inspections, random post-loading checks, and 15 mine audits.
“In the same breath, we have also collaborated with key agencies including the Zimbabwe Republic Police (ZRP), ZIMRA, MFFU, and the Ministry of Mines and Mining Development in joint enforcement operations.
“We have equipped the Government Metallurgical Laboratory with state-of-the-art analytical technology to support accurate mineral valuation and compliance assurance,” she said.
