Bulawayo, (New Ziana)- The mining sector remains a cornerstone of the Zimbabwean economy, contributing 14.5 percent to the Gross Domestic Product (GDP) and ranking as the second-largest economic sector after manufacturing, an official has said.
Chamber of Mines of Zimbabwe president John Musekiwa said this while giving an Overview and Prospects for the Mining Industry during the just ended Mining, Engineering and Transport Expo (Mine Entra) held at the Zimbabwe International Conference and Exhibition Smart City (ZICES).
He also highlighted that the sector was experiencing both remarkable gold-driven growth and significant challenges in other mineral commodities.
“Gold production has surged with 44 percent while platinum, lithium and other key minerals have declined, prompting the government to revise the sector’s growth forecast downward from 5.6 percent to 2.9 percent for the year,” he said.
“The first half of 2025 revealed a stark divergence in mineral commodity markets. While gold surged by 44 percent and diamond and coal posted modest gains of 8 and 4 percent respectively, other key metals faced significant headwinds. Platinum and palladium fell by 7 and 8 percent, while nickel and lithium saw steep declines of 17 and 45 percent
“Despite temporary price pressures on some metals, the medium to long-term prospects remain positive, supported by industrial demand and emerging application in green technologies,” he said.
Musekiwa explained the role of the mining sector in the Zimbabwean economy, noting that it accounts for approximately 76 percent of total export earnings, with mineral exports reaching US$5.9 billion in 2024 and projected to exceed US$6 billion in 2025.
“The sector’s impact extends far beyond the mine gates. Every dollar generated in mining, three more are created in other parts of the economy through supply chains, services, transport, power generation, and manufacturing to mention a few. The industry also provides substantial fiscal contributions and employment, with mining companies contributing around 20 percent of government revenues through taxes and levies while directly employing roughly 58 000 people. Artisanal and small-scale mining supports livelihoods for approximately 2 million Zimbabweans,” he said.
He said despite production decline in several key minerals, overall mineral exports surged by 28 percent to US$3.2 billion, driven primarily by strong gold performance and favourable prices.
The industry was also moving towards value addition and beneficiation, processing raw materials domestically rather than exporting them in their basic form, he said.
“In the PGM (Platinum Group Metals) sector, Zimplats completed its smelter expansion, enabling in-country total processing of concentrates from current and future producers. Industry players are working towards establishing some refining capacity as well. The lithium sector is undergoing similar transformation, with producers moving toward producing lithium sulphate for export. Some producers indicate that by end of 2025, they will already be exporting these value-added products,” said Chamber President.
Musekiwa indicated that the beneficiation drive is creating new energy demands that mines are addressing through renewable investments.
“Many mines have invested in solar plants to supplement grid power and further investments are planned as beneficiation increases energy demand,” he noted.
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