Published: 1 hour ago

ONGOING and new mining projects are playing a key role in steering Zimbabwe towards an industrialised, modern, and prosperous economy by 2030, Mines and Mining Development Minister Winston Chitando has said. Touring Hwange Colliery Company and the Zhongjin Heli Energy 5 Miles Industrial Park in Hwange, Minister Chitando said these initiatives, alongside others nationwide, align with government goals on 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 GDP. It is not an event; it is a process, and the process is underway," he said.

The minister highlighted the joint venture between Hwange Colliery Company and Zhongjin Investments, which has invested US$60 million into underground mining to unlock the potential of Zimbabwe's oldest colliery. The project supports the resuscitation of the Hwange Colliery coke oven battery, producing 18,000 tonnes of coke per annum, with the joint venture aiming for 1.8 million tonnes annually. Chitando noted that the investment is driving downstream activities, including heavy mining machinery, transport infrastructure, and bespoke power generation.

The Zhongjin Heli Energy 5 Miles Industrial Park, valued at over US$500 million, features a coal-fired power plant, cement factory, and coking plant, with 100MW of the planned 235MW already operational. The project is expected to generate significant employment and economic activity, with estimated annual revenues of US$500 million.

In addition, the expansion of Zimplats and development at Karo are set to boost platinum group metals production, with the local platinum industry expected to contribute US$2 billion to mining revenues. Brokerage firm IH Securities reported US$651.18 million in foreign cash investment into mining during the first quarter of 2025, along with capital equipment worth US$211.09 million and foreign currency loans of US$43.25 million. The sector received 9.6 percent of total outstanding credit in the market, maintaining an upward trajectory driven largely by foreign inflows and strategic reinvestments.

Victoria Falls Stock Exchange-listed Padenga plans to invest US$19.18 million towards expansion this year, while Pickstone Mine will receive US$14 million to improve capacity. FBC Securities noted that platinum and gold continue to sustain revenues, with platinum in structural deficit and gold prices remaining historically elevated, while lithium has seen a drop in prices after 2022 peaks.

Analysts say Zimbabwe's mining sector is gaining momentum and remains an attractive area for investment, requiring consistent policies to sustain growth. The sector, highly diversified with close to 40 minerals including PGMs, chrome, gold, coal, lithium, and diamonds, accounts for about 12 percent of GDP and 80 percent of national exports. Zimbabwe holds the world's second-largest platinum deposits and high-grade chromium ores, estimated at 2.8 billion tonnes of PGMs and 10 billion tonnes of chromium ore.
- zimpapers

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