Sep 29, 2025 (The Herald/All Africa Global Media via COMTEX) --
Senior Business Reporter
Zimbabwe's mining sector performance has remained strong despite mixed commodity prices, with the growth being driven by foreign inflows and strategic investments.
Analysts contend that the sector remains a fairly attractive area for investment.
According to the Zimbabwe Investment and Development Agency (ZIDA), the sector saw the largest number of licences granted in the year, at 280, an uptick from the 277 recorded in the prior year.
During the first quarter of 2025, cash investment from foreigners into mining, according to ZIDA, amounted to US$651,18 million, an increase from US$434,54 million in the previous quarter.
The agency also recorded US$211,09 million in capital equipment brought into the country, whilst foreign currency loans registered were at US$43,25 million.
According to the IH Securities 2025 Mining Sector Report, while global commodity markets remain under pressure for platinum group metals (PGMs), lithium and base metals, gold's surge to record levels has reinforced its dominance as Zimbabwe's largest foreign currency earner.
"The sector remains on a growth path, driven largely by foreign inflows and strategic reinvestments, even as local funding lags behind," reads part of the report. "The positive momentum, underpinned by ongoing projects and sizeable pipeline commitments, positions mining as a key pillar for investment in 2025 and beyond."
IH added that sustaining this trajectory will likely depend on continued policy support to unlock the sector's full potential.
Several companies in the sector are investing in new and additional capacity, while also augmenting power supply through solar energy investments. IH, in its report, said Zimbabwe's gold sector is set for significant growth in 2025, with output projected to increase from 38 454kg in 2024 to 43 390kg in 2025.
"The rally in global gold prices, which hit a record of around US$3 673/oz (ounce) in early September, has created strong incentives for producers to expand operations and channel deliveries through formal markets," said the report.
Deliveries to Fidelity Gold Refinery recorded a sharp rise in the first eight months to August; from 20 679kg in 2024 to 28 497.8kg in 2025, marking a 37,8 percent increase, IH said.
In 2025, major minerals of the PGMs category are projected to experience headwinds compared to 2024 levels, primarily due to a continued drop in international mineral commodity prices, especially for palladium and rhodium.
According to IH's report, during the first quarter, platinum, palladium and rhodium output contracted by 16,2 percent, 17,5 percent and 9,5 percent, respectively, compared to the same period in 2024.
"In view of this, platinum and palladium outputs are projected to decline in 2025 to 17 539.60kg and 14 244.33kg, respectively, down from the 2024 output levels of 18 910.90kg and 15 603.22kg," IH said.
Commenting on Zimbabwe's mining sector growth trajectory, which is being driven by a combination of favourable market conditions, analyst Mr Walter Mapfumo said there is need to build on the strengths to sustain the momentum.
"The sector requires consistent and predictable policies to attract further investment and ensure stability," he said.
High operational costs, including energy and transportation charges, he added, need to be addressed to improve competitiveness.
Mr Mapfumo noted that the Government's efforts to improve the regulatory framework and promote local beneficiation and value addition are crucial for long-term sustainability and maximising economic benefits.
Meanwhile, Karo Platinum (Tharisa's Chegutu project) is advancing construction and raising US$165 million for Phase 1 via gold by-product streaming.
Located on the Great Dyke, it will run a 10-year open pit, then a 30-year underground mine, producing 226 000 ounces of PGMs annually, becoming Zimbabwe's third-largest producer after Zimplats and Unki.
Moreover, Zimplats has completed a US$398 million smelter expansion project, commissioning a 38-megawatt (MW) furnace that triples capacity to 380 000 tonnes of concentrate (1,09 million ounces of PGMs) annually.
According to the IH report, coal production in Zimbabwe is exhibiting a notable recovery in 2025, with total output expected to hit approximately 6,3 million tonnes, up from 5,7 million tonnes in 2024, a 10,5 percent year-on-year increase, building on the 4,9 million tonnes recorded in 2023.
"There are numerous projects driving this recovery. Hwange Colliery has injected US$17 million for maintenance of Unit 3, plus US$3 million into its battery oven, aiming to improve output by 13 percent and potentially double coke production," the IH report read.
"Zambezi Gas Investments is boosting capacity with a US$450 000 coke oven facility. Moreover, the Muchesu Coal Project, boasting over 2 billion tonnes of reserves, is accelerating its development trajectory, and Makomo Resources has resumed operations following a successful turnaround, adding urgency and depth to national coal supply."
Diamonds export volumes plummeted by 60 percent in H125 (first half), falling to 2,72 million carats, down from 6,85 million carats in the same period in 2024.
Despite this slump, diamond production is still expected to grow by 7 percent in 2025, supported by expansion efforts from ZCDC and Anjin Investments.
Nickel production is projected to decline by 3,87 percent in 2025, reaching approximately 14 542 tonnes, down from 15 128 tonnes in 2024.
FBC Securities, in its economic snapshot for August 2025, said the mining sector continues to be a major growth driver, with PGMs and gold sustaining revenues.
It said the global platinum market is in a structural deficit in 2025, a dynamic that has kept prices firm despite global headwinds, while gold prices remain historically elevated relative to pre-pandemic levels as the World Uncertainty Index continues to rise.
"By contrast, lithium, once heralded as Zimbabwe's future growth engine, has seen prices collapse from the highs of 2022. Spot prices slipped below US$10 000 per tonne in early 2025, though modest recoveries have been recorded in recent months as supply rationalisation met revived Chinese demand," FBC said.
FBC said market research from Johnson Matthey indicates that the platinum market will remain in a deficit in 2025, reflecting supply constraints in South Africa and steady industrial demand.
"Zimbabwean producers stand to bene
fit from firmer pricing, although volatility remains high. Palladium, by contrast, is moving closer to balance, but overall export earnings from PGMs should remain supportive," reads part of the report.
COMTEX_469147540/2029/2025-09-29T09:40:21
by Nelson Gahadza
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