THE Zimbabwean government has forecast a 5.6% growth in the mining sector for 2025, attributing this to increased production of key minerals, despite challenges in the global economy.
Officials are optimistic that the mining industry will continue to withstand the ups and downs of commodity prices.
This follows a successful 2023 that saw the sector play a crucial role in reaching the US$12 billion mining economy target.
At the recent Xintai Palm River Energy Metallurgical Ground Breaking ceremony in Beitbridge, Mines and Mining Development Minister Winston Chitando emphasised that mining is a cornerstone of the economy, accounting for 13.3% of GDP and over 68% of export earnings.
“Mining is critical to Zimbabwe’s economic stability,” Chitando said.
“Despite challenges such as fluctuating commodity prices and global economic headwinds, the sector has shown remarkable resilience, with continued growth expected from platinum group metals, gold, chrome, and diamonds.”
The anticipated growth is supported by several key factors.
Gold production is projected to reach 42 tonnes by 2025, exceeding the 39 tonnes recorded in 2023.
Notably, 63% of this output is generated by small-scale miners, bolstered by government initiatives such as the Gold Development Initiative, which provides equipment financing at a 7% interest rate.
Platinum Group Metals (PGMs) continue to play a vital role in the sector’s expansion, despite fluctuations in the global market.
Furthermore, an increase in the output of chrome and diamonds is expected to enhance the overall performance of the industry.
To maintain this growth trajectory, the government is actively pursuing policy reforms to improve the investment climate.
These reforms aim to modernise the Mines and Minerals Act, which dates back to 1961, by incorporating environmental considerations and aligning with current standards.
Proposed amendments are anticipated to be submitted to Parliament by May 2025.
In addition, the government is tackling environmental issues linked to mining activities.
Each year, around 200,000 hectares of forest cover are lost due to mining, resulting in deforestation and land degradation.
To address these challenges, comprehensive sustainability measures are being implemented to ensure a balance between economic gains and environmental protection.
The Xintai Palm River Energy Metallurgical Industrial Park, a US$3 billion investment, highlights Zimbabwe’s commitment to attracting international investors.
The groundbreaking of this industrial park underscores the country’s dedication to fostering responsible mining practices and energy innovation.
“The successful launch of this project underscores the ongoing transformation of Zimbabwe’s mining sector and solidifies our position as a leader in responsible mining practices,” Chitando concluded.
