Source: The Herald

The mining sector is witnessing a record surge in investment under the Second Republic, with several large-scale projects underway across the value chain, Mines and Mining Development Minister Winston Chitando has said.

Mining is critical to Zimbabwe, representing a cornerstone of its economy as the second-most important sector, accounting for about 12 percent of the Gross Domestic Product (GDP) and over 80 percent of exports.

The sector's value is boosted by Zimbabwe's abundant resources of gold, platinum, diamonds and coal, driving Foreign Direct Investment (FDI), Government revenue and employment.

Zimbabwe is home to over 60 exploitable minerals.

In an interview, Minister Chitando said investor confidence in the sector has grown exponentially due to Government reforms that have created a competitive and transparent business environment.

"The appetite for investment in Zimbabwe's mining sector has significantly grown since the coming in of the Second Republic under the leadership of President Mnangagwa," he said.

"We have seen the establishment of major strategic projects covering exploration, mining, beneficiation and value addition."

Key developments include the Dinson Iron and Steel Project, the Palm River Energy Metallurgical Plant under the Beitbridge Special Economic Zone, expansion projects by Zimplats and Unki and the US$500 million Zhongjin Heli Energy Industrial Park near Hwange.

Other notable projects are the reopening of Eureka Gold Mine, expansion at Blanket and Pickstone Peerless mines, and the construction of lithium beneficiation plants at Bikita Minerals, Prospect Lithium and Kamativi.

Minister Chitando said the developments demonstrate Zimbabwe's growing importance in global mineral supply chains, particularly in the green energy transition.

"Zimbabwe's reserves of critical minerals such as lithium, nickel and graphite position the country as a potential leader in the global green economy," he said.

The Government, he added, is implementing legislative reforms to attract and safeguard investment. The Mines and Minerals Amendment Bill, gazetted in June 2025, replaces the outdated 1961 Act and introduces community benefit-sharing, mandatory social investment by mining companies and a digital mining cadastre to improve transparency.

"We are ensuring that mining benefits local communities through infrastructure, education and health services," Minister Chitando said.

"The new law also promotes inclusivity by reconstituting the Mining Affairs Board to include small-scale miners, farmers and professionals."

He said Government continues to offer incentives to investors, including a competitive 25 percent corporate tax rate, full deductions on capital expenditure, 100 percent repatriation of capital and dividends and VAT deferment on mining equipment.

The minister said the 2025 Mine Entra Conference, which starts today in Bulawayo, running under the theme "Beyond Extraction: Sustaining the Future of Mining", reflected Zimbabwe's shift toward sustainable and value-driven mining.

"The theme captures our commitment to local beneficiation, environmental stewardship and innovation," he said.

"Mining must contribute to industrialisation, job creation and the attainment of Vision 2030."

Minister Chitando said Government bans on the export of unprocessed minerals -- including chrome, lithium and granite -- have resulted in increased investment in beneficiation facilities such as smelters, concentrators and battery manufacturing plants.

"The ban on raw mineral exports has spurred the development of local processing industries," he said. "The Dinson Iron and Steel Project, the Zimplats smelter expansion and new coke oven batteries are tangible outcomes of that policy."

Minister Chitando said the mining sector is aligning with international Environmental, Social and Governance (ESG) standards, with the second phase of the Responsible Mining Initiative set to be launched before the end of the year.

"This initiative ensures that all mining companies comply with environmental, labour, immigration tax laws," he said. "Responsible mining is key to building a sustainable and globally competitive sector."

Minister Chitando said Zimbabwe remains open for business and urged investors to take advantage of the conducive investment climate.

"The future of Zimbabwe's mining sector is anchored on sustainability, beneficiation, and inclusive growth," he said.

"We are moving beyond extraction to build a strong, diversified and resilient mining industry."

Zimbabwe's mining sector experienced significant growth between 2017 and 2023, with mineral export earnings rising from approximately $2.7 billion to over $5.6 billion, with some reports even suggesting revenues reached $9.77 billion by 2023.

This growth was driven by Government initiatives, increased investment, expanded exploration and the strategic development of key minerals like gold, platinum and lithium.

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