Mining sector poised for growth

CLOUDINE MATOLA
The Chamber of Mines Zimbabwe president, Thomas Gono, has expressed optimism about the mining sector’s prospects this year, forecasting significant growth across key minerals driven by expansion efforts and fovourable government policies.
As a vital contributor to the country’s GDP, the mining industry remains a critical focus for the government, which has introduced several policies designed to support its growth, such as mineral export incentives, tax reliefs, and investment promotion strategies.
Gono has expressed a positive outlook for the mining sector in 2025, fueled by increased production and the introduction of new players in the coal, lithium, and ferrochrome sectors.
Gono highlighted that mining companies are focused on ramping up their production targets, with several investing in expansion activities to meet the growing demand for key minerals.
“In 2025, the mining industry’s prospects look favorable, with most mining houses actively planning to increase their output,” said Gono.
“We are also seeing new entrants in sectors like coal, lithium, and ferrochrome, which is expected to contribute positively to overall sector growth.”
The mining industry’s growth in 2025 is expected to be driven primarily by an increase in the production of these strategic minerals.
As global demand for energy and electric vehicle production rises, coal and lithium, in particular, are seeing heightened interest from investors and industry players.
Ferrochrome, a key component in stainless steel production, is also poised to expand, driven by both local and international market demand.
The expected growth is also reflected in the projection for mineral exports, which are anticipated to reach US$6bn in 2025, up from US$5.5bn in 2024. This increase in exports is forecasted to come alongside higher production volumes across all major minerals, including gold, platinum group metals (PGMs), diamonds, and coal.
According to Gono, gold production is expected to rise to 40 tons in 2025, up from 36 tons in 2024. The platinum group metals (PGMs) sector is projected to grow by 4%, diamonds by 7%, and coal by 10%, further solidifying the mining sector’s positive trajectory.
These projections are in line with the government’s goal of enhancing mining sector productivity through strategic investment in exploration and processing infrastructure.
The support for key sectors like gold and PGMs, alongside new developments in coal and lithium, signals a promising year for Zimbabwe’s mining industry.
Despite the optimistic outlook, challenges remain that could impact the pace of growth in certain mineral sectors.
Morgan and Co, in its 2025 Economic Outlook and Equity Strategy report, warned that Zimbabwe’s gold sector— which accounts for about 30% of mining sector receipts— is likely to experience slower growth in 2025 due to external factors such as the ongoing La Niña weather event and the weakening of central bank gold purchases.
“Gold receipts, which are a crucial part of the mining sector, will continue to grow but at a slower pace in 2025,” Morgan and Co said.
“This is primarily due to the impacts of La Niña, which is expected to cause heavy rains, potentially depressing output in the first quarter of the year.”
The La Niña phenomenon, which brings above-average rainfall to Southern Africa, may lead to flooding and other adverse weather conditions, affecting mining operations, particularly in the gold sector.
However, the country is expected to maintain a strong gold price, hovering around US$2,650 per ounce, which may mitigate some of the potential losses from lower production in the first quarter.
In 2024, Zimbabwe saw a significant recovery in gold output, reaching 36.6 tonnes, largely attributed to tax incentives for small-scale miners. These incentives led to increased gold deliveries starting in March 2024, with many small-scale miners entering the market in response to favorable policies.
However, with La Niña’s potential to disrupt gold mining activities, the first quarter of 2025 may see a dip in production. Despite this, the sector remains optimistic, with expectations that the overall recovery of the sector in the following months will outweigh the challenges posed by the weather event.
Government policies have played a significant role in the resurgence of the mining sector.
Zimbabwe’s investment in improving mining infrastructure, coupled with tax breaks and export incentives, has made the sector more attractive to both local and foreign investors.
As the country continues to unlock the potential of its mineral resources, the government is also focusing on creating an enabling environment for investment through policy reforms and industry partnerships.
Foreign investment, particularly in coal and lithium projects, is expected to continue its upward trend in 2025. These investments will help strengthen Zimbabwe’s position as a key player in the global mining market, especially as the world shifts toward renewable energy and electric vehicles—both of which rely heavily on minerals such as lithium.
Looking ahead, 2025 promises to be a year of growth for Zimbabwe’s mining sector, with significant gains expected in key minerals such as gold, PGMs, coal, and lithium.
While challenges such as La Niña-related weather disruptions and the global gold price slowdown may temper the pace of growth, the sector’s overall trajectory remains positive. With ongoing government support, policy reforms, and strategic investment in mining infrastructure, Zimbabwe is poised to further solidify its role as a mining powerhouse in the region.