THE mining sector is projected to grow by an average of 7% in 2025, raking in US$6 billion in exports, driven by a strong recovery in gold, platinum group metals (PGMs) and diamonds, the Chamber of Mines has said.
Zimbabwe in 2023 initiated a roadmap aimed at transforming the mining sector into a US$12 billion industry, establishing a solid foundation for future growth.
However, the industry fell short of the target, recording US$5,6 billion in 2023 and US$5,4 billion last year.
In 2024, the mining industry contributed approximately 12% to the country’s gross domestic product and nearly 70% of export earnings, despite facing several challenges.
Chamber of Mines of Zimbabwe CEO, Isaac Kwesu, said the mining industry is poised for growth this year.
“In the outlook for 2025, the prospects for the mining industry look positive. Findings from the 2024 State of the Mining Industry Survey Report, released on October 9 2024, indicate that the sector’s output is expected to grow by a weighted average of around 7%, benefiting from strong recoveries in gold (9%), PGMs (5%) and diamonds (7%),” Kwesu said
“Mineral exports for 2025 are anticipated to be US$6 billion. These optimistic projections are primarily supported by ongoing expansion projects and expectations of recovering prices for key minerals.”
However, he cautioned that power supply issues are expected to persist, particularly in the first half of the year.
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Zimbabwe is currently facing a daily power deficit of approximately 600MW, exacerbated by low water levels at Kariba and ageing thermal power infrastructure at Hwange.
This shortfall has resulted in power outages, severely impacting businesses and the mining sector, with companies reportedly losing up to US$500 million in potential revenue.
The mining industry encountered a couple of challenges in 2024, characterised by weak commodity prices, fragile power supply, foreign currency shortages, depreciation of export proceeds, high costs and capital constraints.
“The industry faced a high-cost structure due to elevated electricity prices, high royalties especially for platinum, lithium , diamonds and unsustainable funding costs. Power outages were frequent in 2024, with estimates from the 2024 State of Mining Industry Survey Report indicating potential revenue losses exceeding US$500 million due to these outages.”
Kwesu said the industry experienced a decline in value on the surrender portion of export proceeds, receiving their surrender portion at the official rate while local inputs were priced at the parallel market rate.
