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Nqobile Bhebhe, [email protected]

MINING companies expect to spend up to US$500 million next year on various capital projects with executives indicating general optimism in the sector’s prospects and willingness to spend more, a new mining report shows.

The mining sector is a major contributor to the economy, accounting for 13 percent of the Gross Domestic Product, and employing over 50 000 people. The sector also generates more than 70 percent of the country’s exports.

According to the latest Mining Industry Prospects for 2025 report findings released on the sidelines of the 27th Mining, Engineering, and Transport Expo (Mine Entra) last week, mining executives are generally optimistic about spending on capital projects in 2025.

The survey commissioned by the Chamber of Mines of Zimbabwe (CoMZ) which generated insights from mining executives, showed that lithium, gold, Platinum Group Metals (PGMs) and the ferrochrome companies have made substantial investments.

“The measured index for prospects for expenditure on capital expenditure is +3,2. This means that mining executives are generally optimistic about spending on capital projects in 2025,” reads part of the report.

“About 56 percent of respondent executives indicated that they will spend more capital in 2025 compared to 2024 while 13 percent are planning to inject the same level of capital as in 2024.”

According to the report, gold capital projects have a financial outlay of US$65 million, coal sector players intend to inject US$20 million, ferrochrome sector (US$25 million), platinum firms (US$2,8 million) and lithium sector is expecting to inject US$380 000 000. Mining industry capital requirements are pegged at US$600 million.

PGMs require US$69 million, gold (US$100 million), lithium (US$380 million), ferrochrome (US$30 million) and coal US$21 million.
Under the gold sector, Freda Rebecca plans to expand its tailing storage facility with an investment of US$11 million. It plans to complete the project by July next year.

Shamva Mine will work on exploring drilling, Blanket Mine expects to spend US$27 million on future projects while Bulawayo Mining Company expects to inject US$4,5 million on expansion projects. Under coal sector, Hwange Colliery expects to spend US$3,1 million on battery oven resuscitation.

Turning to the PGMs, Unki Mines plans to spend US$200 000 on solar project expected to be complete in 2027. Under the Second Republic, Zimbabwe has witnessed remarkable growth and transformation in its mining sector.

This positive trajectory is marked by the creation of jobs and increased investments. Zimbabwe has 60 mineral occurrences, according to official Government reports, the major ones being diamond, platinum, gold, nickel and lately lithium, among others, that can be fully exploited for quick economic turnaround.

The State of the Mining Industry Survey was conceived in 2015 to provide a detailed account of the state of affairs in the mining industry vis-à-vis key performance opportunities, prospects and challenges in the mining sector.

Since its inception, the report has become the main reliable source of information on the performance and prospects of the mining industry.
The survey reports have assisted in bridging the information gap and providing leverage for Government policy as well as strategic planning for other key stakeholders that include mining houses, investors, financiers, suppliers, labour and communities.