Online Reporter
Business Reporter
Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube recently outlined an ambitious mining transformation agenda under the National Development Strategy 2 (NDS2), anchored in deeper beneficiation, climate-responsible operations, formalisation of small-scale miners and expanded value chains across lithium, PGMs, iron and steel, coal, and oil and gas.
Presenting the sector’s trajectory, Minister Ncube said NDS2 will drive the country up the mining value chain to retain more value within the economy.
He emphasised that the period to 2030 must consolidate all beneficiation progress achieved under NDS1.
Lithium beneficiation will be one of the most significant changes under NDS2.
Minister Ncube said the Government will intensify value addition.
“NDS2 will prioritise further beneficiation of lithium concentrates to lithium salts.”
He confirmed that producers are already investing in facilities to beneficiate ore into lithium salts by 2027, and the Government is tightening policy to support this transition.
In order to develop a full battery mineral value chain, Minister Ncube said: “Government will phase out the export of lithium concentrates by January 2027.”
The strategy prioritises production of lithium sulphate, lithium carbonate and lithium hydroxide, all vital inputs for global battery manufacturing.
Minister Ncube said NDS2 will also require platinum producers to deepen value addition beyond concentrate and matte.
“Producers will be required to move up the value chain through further beneficiation of PGM (platinum group metals) matte to residue and ultimately isolate the individual metals, including platinum, palladium and rhodium.”
To discourage the low-value mine-to-port export model, the Government will introduce restrictions on exports of PGM concentrate.
Building on the success of Dinson Iron and Steel Company (Disco), the Government intends to form a fully integrated iron and steel industry. Minister Ncube said this will be achieved by developing synergies between Disco and ferrochrome producers to manufacture high-value steel products, noting that this approach will localise mining procurement and stimulate downstream industries.
He highlighted that Government infrastructure projects will be required to source steel locally, ensuring predictable demand for domestic producers.
A comprehensive coal mining policy will be rolled out during NDS2 to promote value addition into downstream products such as fertiliser, while maximising the recovery of by-products such as tar, gas and benzene.
On oil and gas, Minister Ncube said NDS2 will prioritise domestic processing of any discovered resources, emphasising: “NDS2 will prioritise the conversion of natural gas from the Muzarabani project into electricity to strengthen energy security and industrial productivity.”
To align with climate-resilient growth, the Ministry of Mines will also implement a responsible mining initiative. Minister Ncube said environmental compliance will be central to the next phase, with zero tolerance for environmental degradation and the strengthening of the Environmental Management Agency (EMA) through geographic information systems (GIS)-based digital monitoring systems.
The Treasury chief announced that the Government will introduce simplified licensing, digital registration and cooperative models to bring artisanal miners into the formal economy.
“Interventions to formalise and transform artisanal and small-scale mining into a productive and environmentally responsible sub-sector will be pursued.”
Modern equipment financing through an expanded Mining Industry Loan Fund will help improve safety, productivity and environmental stewardship.
Minister Ncube said the country’s achievements under NDS1 laid a solid foundation for the next phase of mining-led growth.
“The contribution of mining and quarrying to GDP (gross domestic product) rose from 13 percent in 2023 to an estimated 14,5 percent in 2025, while mining’s share of export earnings expanded from 68 percent in 2018 to 76 percent in 2024,” he said.
The mining sector recorded average growth of 8,4 percent, underpinned by increased exploration in iron ore, lithium, coal and rare earth elements.
Zimbabwe moved from exporting raw ore to producing lithium concentrate and lithium sulphate during NDS1.
Minister Ncube said:
“Zimbabwe advanced the beneficiation of lithium from the export of lithium ore to the export of lithium concentrate.”
This was supported by major operations such as Bikita, Sabi Star, Zulu, Arcadia and Kamativi investing in processing capabilities.
The minister described the US$1,5 billion Disco steel plant as a flagship achievement, saying it represented a landmark achievement in Zimbabwe’s mining value addition drive.
The plant’s 600 000-tonne annual capacity, over 2 000 jobs created and production of more than 50 000 tonnes per month of steel products by the third quarter of 2025 positioned Zimbabwe as an emerging steel hub. During NDS1, PGM producers expanded smelting capacity to process all national PGM concentrates locally.
Minister Ncube highlighted that PGMs producers expanded their local smelting capacity to process all the PGMs concentrate in the country, a significant stride in the beneficiation agenda. Gold production increased from 31 tonnes in 2021 to 38 tonnes in 2024, with 45 tonnes projected for 2025.
The Treasury chief acknowledged the significant role of artisanal miners, noting that artisanal and small-scale mining supplied in excess of an estimated 60 percent of gold output during NDS1.
The opening of Muchesu coal mine expanded the domestic supply of energy and industrial inputs, while the Muzarabani exploration programme advanced under National Project Status. Minister Ncube admitted that leakages, smuggling and weak environmental compliance persisted during NDS1, threatening revenue and ecological stability.
He said the next phase will correct these weaknesses through stricter monitoring, rehabilitation funds and improved enforcement.
