Online Reporter
Online Reporter
Zimbabwe’s mining sector, rich in gold, platinum, lithium, chrome and diamonds, has long been central to the economy, but the key challenge has been retaining more value locally.
That is now changing. The Ministry of Mines and Mining Development says the sector is entering a new phase focused on beneficiation, value addition, modern regulation and digital transformation. Success is increasingly measured by how much value is kept in Zimbabwe through processing and industrialisation.
Permanent Secretary Dr. Thomas Utete Wushe says the first half of 2026 shows clear progress.
Zimbabwe earned about US$5.73 billion in mineral exports between January and June 2026—US$2.53 billion via MMCZ and US$3.20 billion from gold through Fidelity Refinery. This is a 106% increase on the same period in 2025 and already equals about 67% of total 2025 earnings.
Crucially, export volumes rose only slightly, meaning Zimbabwe is earning far more from nearly the same output—evidence that beneficiation is taking hold.
The shift is most visible in lithium, which surged 230% to US$782.2 million. Zimbabwe also exported lithium sulphate for the first time after new processing capacity and restrictions on raw exports.
Platinum group metals remained strong at over US$1.2 billion, making up about 78% of MMCZ-marketed exports alongside lithium.
Gold stayed the top single earner, with 21.40 tonnes delivered to Fidelity, keeping the sector on track for its annual target.
Diamonds declined due to weaker prices and resource depletion, while granite exports fell as policy shifts encourage local processing instead of raw exports.
Dr. Wushe said these trends show the core goal: Zimbabwe’s mining future will depend less on extraction volumes and more on how effectively mineral wealth is turned into jobs, industry and long-term economic growth.
If record export earnings demonstrate the mining sector’s growing economic strength, Dr. Thomas Utete Wushe believes sustaining that momentum will depend on deep institutional and legislative reform. He says increasing production alone is no longer enough; the industry needs a modern legal framework that promotes investment, secures tenure, strengthens environmental accountability and improves transparency.
Against this background, the Ministry is prioritising the Mines and Minerals Amendment Bill, 2025, which will replace legislation more than six decades old. The Bill is expected to modernise mineral administration, improve licensing, strengthen dispute resolution, enhance investor certainty and reinforce environmental obligations. Dr. Wushe says these reforms are part of a broader effort to build a globally competitive mining sector that supports long-term economic growth.
He also stressed that legal reform must be supported by policies that promote beneficiation, investment and greater local participation. Beneficiation is central because it increases value addition, drives industrialisation, creates jobs and strengthens supply chains. Government is therefore encouraging investment in mining, processing, infrastructure and downstream manufacturing.
A key policy change is the reservation of the small and medium-scale gold mining sector for Zimbabwean citizens and wholly locally owned companies, effective 22 May 2026. Foreign participation, including through proxies or indirect arrangements, will no longer be allowed. Dr. Wushe said this closes loopholes that previously limited local benefit from mineral resources.
However, Government remains open to foreign investment in large-scale mining and processing. Existing foreign operators have until January 2027 to expand or meet required thresholds. The aim, he said, is to protect local opportunities while still attracting international capital and expertise.
Small-scale miners are especially important, having contributed most of Zimbabwe’s gold output last year. Protecting the sector is intended to ensure more mineral wealth benefits local communities and national development.
The Ministry is also intensifying efforts to curb mineral leakages, which cost the country an estimated US$1.5–2 billion annually through gold smuggling alone. To address this, Government has tightened oversight, suspended raw mineral and lithium concentrate exports, and strengthened coordination among key regulatory bodies to improve traceability and compliance.
Artisanal and small-scale miners accounted for nearly 70% of gold delivered to Fidelity Gold Refinery in early 2026, showing the sector’s importance and the benefits of formalisation. Despite temporary disruptions from stricter enforcement, output has since recovered.
Environmental protection is also central to reforms. Through the Responsible Mining Initiative, Government has introduced stricter penalties, including licence cancellations for serious violations. Dr. Wushe said environmental compliance is now both a legal requirement and a market necessity, as global buyers increasingly demand responsibly sourced minerals.
Another pillar of the Ministry’s reform agenda is the modernisation of Zimbabwe’s mining title administration through a fully integrated digital mining cadastre. Although discussed for over a decade, Dr. Thomas Utete Wushe says the project is now at a critical stage. He noted that effective mining administration depends on accurate rights data, but past reliance on paper records and handheld GPS devices led to boundary errors, overlapping claims and disputes that delayed projects and weakened investor confidence.
To address this, Government now requires all title holders and applicants to submit survey-grade coordinates. Dr. Wushe clarified that this is not a re-pegging exercise, but a way of accurately mapping existing claims into a national digital database. These coordinates will form the backbone of a transparent system that reduces disputes and improves certainty.
The Ministry currently manages over 60,000 mining titles, about 60 percent of which have already been digitised. Once fully implemented, the cadastre will replace fragmented manual systems with a unified electronic platform that improves efficiency, transparency and investor confidence.
The system will also integrate with key institutions such as MMCZ, Fidelity Gold Refinery, ZIMRA and environmental regulators to provide a single verified source of mining data. This is expected to strengthen governance and support better policy decisions, while giving investors greater certainty over mining rights.
Dr. Wushe also reaffirmed Government’s stance on the ban of unrefined lithium concentrate exports from January 2027. He said the timeline remains unchanged, as producers were given sufficient notice in 2025. Companies are encouraged to invest in processing facilities or use toll-treatment arrangements instead of seeking extensions.
This policy reflects a broader push to ensure more value is retained locally. By promoting domestic beneficiation, Government aims to drive industrialisation, create jobs, increase export earnings and position Zimbabwe to benefit from global demand for battery minerals.
Overall, Dr. Wushe said the Ministry’s reforms—spanning digital governance, beneficiation, environmental oversight and tighter regulation—form an integrated strategy to improve transparency, competitiveness and sustainability in the mining sector.
The first half of 2026 has therefore signalled the direction of travel for the industry. While challenges remain, the Ministry believes the foundations for a more resilient and value-driven mining sector are being established.
For Dr. Wushe, success will not be measured only by output, but by how effectively mineral wealth is transformed into industrial growth, jobs and broad-based prosperity. Through beneficiation and modern regulation, Zimbabwe aims to position mining as a key driver of sustainable development under NDS2 and Vision 2030, with ongoing reforms set to reshape the sector’s long-term contribution to the economy.
