Source: Mining sector earns Zimbabwe US$5bn | The Sunday Mail
Nqobile Bhebhe
Senior Business Reporter
ZIMBABWE’S mining sector continues to show remarkable resilience and growth, with value-added mineral exports reaching US$5,34 billion in 2024, exceeding the initial target of US$4 billion, an achievement attained despite global commodity price fluctuations, solidifying the industry as a key pillar of the country’s economy.
The sector grew by 2,3 percent.
Unlike other resource-dependent economies that faced mine closures and stoppages in production, Zimbabwe’s mining industry maintained steady operations, ensuring continued export earnings.
According to the 2024 Performance Evaluation Results for senior public sector officials, compiled in a report by the Ministry of Mines and Mining Development, 32 tonnes of gold were delivered to the Fidelity Gold Refinery (FGR), a wholly owned subsidiary of the Mutapa Investment Fund.
“Exports of value-added minerals increased to US$5,34 billion against a target of US$4 billion. At least 32 tonnes of gold were delivered,” reads part of the report.
The mining sector is anticipating strong recovery in 2025, driven by the projected 7 percent output growth and anticipated positive commodity market conditions, which are expected to boost mineral revenue, increase employment levels and enhance capacity utilisation.
Globally, the mining sector has been hamstrung by several factors, with a drop in commodity prices negatively affecting operations and productivity.
Local mining houses were not spared and some resorted to scaling down production.
Economist Mr Michael Phiri attributed the good performance to key factors, such as increased value addition and beneficiation, as well as strategic investments and sectoral expansions.
He emphasised the mining industry’s role as a primary revenue generator and economic stabiliser.
“The Government’s push for local mineral processing and value addition is bearing fruit, enhancing the sector’s revenue generation capacity. Pro-investment policies and regulatory frameworks have provided a conducive operating environment, while ongoing investments in mining infrastructure and exploration have sustained output and export growth,” said Mr Phiri.
He further noted the contribution of key minerals, such as gold, platinum, lithium and nickel, which have significantly boosted overall export earnings.
The report also cited the launch of new high-impact mining projects during the year, reinforcing the sector’s growth trajectory.
“Although international commodity prices were depressed, Zimbabwe’s mining sector still managed to grow by a modest 2,3 percent. Unlike others in the region, it avoided major disruptions like mine closures,” the report said.
“Despite this, new investments in the mining sector were recorded, with the most notable being the Palm River Mining Project.”
In February, President Mnangagwa commissioned the US$3,6 billion Palm River Energy Metallurgical Special Economic Zone project in Beitbridge district, Matabeleland South.
With the sector surpassing expectations, industry players and policymakers remain optimistic about maintaining this momentum.
Economist Ms Alice Chikonzi said further value addition, production efficiency and increased investment attraction will be critical for long-term growth in the extractive sector.
“The 2024 performance proves the sector’s resilience in the face of global economic challenges. The revival of closed mines has significantly contributed to increased output, job creation and strengthened supply chains, demonstrating the sector’s adaptability and the success of targeted investment strategies,” said Ms Chikonzi.
Small-scale miners have been a crucial driver of the mining sector’s success, as they have played a pivotal role in gold, lithium and chrome extraction.
Their contributions have not only stabilised output but also ensured sustained economic activity even under challenging conditions.
“The resilience of Zimbabwe’s mining sector in 2024 can also be largely attributed to small-scale miners,” added Mr Phiri.
“Their ability to maintain production despite financial and logistical constraints has been key to sustaining overall growth in the industry.”
However, small-scale miners continue to face challenges such as limited access to capital, outdated mining technology and regulatory hurdles.
To address these issues, the Government has introduced initiatives such as improved financing models, formalisation programmes and increased access to processing facilities.
“If properly supported with funding, training and modern equipment, small-scale miners can contribute even more to Zimbabwe’s mining industry. They are a vital pillar of the sector’s future growth,” Mr Phiri said.
Official records from FGR show that in 2024, small-scale gold miners contributed over 65 percent of the 36,48 tonnes of gold delivered.
This output not only exceeded the Government’s 35-tonne annual target but also represented a 21 percent increase from the 30,1 tonnes recorded in 2023.
Gold remains critical to Zimbabwe’s economic strategy, serving as a key reserve asset backing the national currency — Zimbabwe Gold (ZiG).
Since its launch in April 2024, ZiG has exhibited strong resilience, helping to stabilise the exchange rate and curb inflation.
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