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Mineral exports surge . . . Zim defies global commodity slump
@Source: heraldonline.co.zw
Martin Kadzere
Business Reporter
ZIMBABWE’S volume of mineral exports jumped 27 percent in the first half of the year, compared to the same period last year despite a challenging global commodity market, latest official figures show.
The Minerals Marketing Corporation of Zimbabwe (MMCZ), which handles the sale of all minerals except gold and silver, facilitated the disposal of about 2,4 million tonnes of minerals valued at US$1,395 billion between January and June.
Last year MMCZ sold about 1,9 million tonnes during the first 6 months valued at US$1.56 billion.
Mining is strategically important to Zimbabwe’s economy, accounting for around 12 percent of the country’s gross domestic product.
The sector also accounts for about 80 percent of the country’s exports.
Zimbabwe is rich in several key minerals, including platinum group metals, gold, chrome and diamonds.
This comes as President Mnangagwa recently commended the growth of the country’s mining sector.
“I want to commend mine workers throughout the country who continue to make an important contribution to the economy. The growth of the mining sector since 2018 from a mere US$2.8 billion industry to the current levels of close to US $12 billion has positively contributed to the overall growth of our national GDP. Congratulations to the mining sector,” he said
“The Second Republic, since its inception, has always been about accelerated development, production, productivity, and the realisation of economic prosperity and a higher quality of life for all the people of Zimbabwe. This agenda remains on course despite the climate change induced drought that we are currently experiencing in our country and indeed the SADC sub-region,” the President said.
Mining has benefited from the National Development Strategy 1 (NDS1 2021-2025), which seeks to drive the beneficiation of five key minerals, gold, platinum group metals (PGMs), chrome, diamond and coals to enhance socio-economic development.
The Government also approved the establishment of 10 national priority areas that will guide development and implementation of the National Development Strategy 2 (NDS2) in line with the aspirations of Vision 2030 of transforming Zimbabwe into an upper middle-income economy.
The NDS2 is an economic blueprint to complete the second five-year medium-term development plan, riding on the success of NDS1.
While overall mineral export volume increased during the half-year period, the total sales value saw a marginal decline.
This was mainly due to subdued markets for ferrochrome, lithium, and rough diamonds, which were impacted by reduced activity in the downstream industries.
Geopolitical tensions, however, had a positive effect on gold prices, which in turn boosted platinum prices as platinum is increasingly being used as an alternative to gold in the jewellery industry.
The lithium sector experienced a notable contradiction; prices declined despite a continuous rise in demand for lithium metal.
This was exacerbated by the imposition of high tariffs on Chinese-made electric vehicles by the US and European Union, leading to high inventories of upstream lithium concentrates.
Despite these challenges, lithium prices are expected to improve in the medium term.
The trend highlights the need for Zimbabwe’s innovation hubs to increase research into developing more sustainable, lithium-efficient batteries.
An increase in ferrochrome sales is anticipated in the third quarter of 2025, driven by new production capacities and a stabilising global market.
However, the chrome ore and concentrate market remains pressured by weak global stainless-steel demand and growing stockpiles in China.
Chinese port inventories reached nearly 2,9 million tonnes, necessitating a strategic review of chrome ore export policies given the current market oversupply.
In response, the MMCZ will engage the Ministry of Mines and Mining Development to advocate for a total ban on chrome ore exports, MMCZ general manager Dr Moyo said.
This measure aims to address the oversupply and potentially encourage in-country processing.
Dr Moyo also noted that limited inland logistic capacity, heavily reliant on road transport, continues to impede the efficient movement of minerals to the market.
“This also places local producers at a disadvantage against regional competitors benefiting from superior road and rail infrastructure and port access, particularly impacting steel, granite, coke and coal exports where freight costs are risking customer churn,” said Dr Moyo.
Relying on road transportation also presents a significant challenge in meeting strict maritime regulations.
Tight timeframes for loading vessels are difficult to achieve with road haulage, potentially causing exporters to miss loading targets.
This can result in hefty charges for unoccupied vessel space, further squeezing profit margins for the exporters.
The National Railway of Zimbabwe network is characterised by outdated tracks, signalling systems, and locomotives.
This leads to slow travel times, frequent breakdowns, and a higher risk of derailments. Underinvestment in maintenance and upgrades has also left the NRZ struggling to keep up with basic operations.
The combination of these factors has significantly reduced the NRZ’s capacity to handle large volumes of freight efficiently and made transporting minerals to ports for export slow and expensive.
Dr Moyo further noted that environmental concerns persist within the granite and chrome mining sector.
“Granite and chrome mining operations continue to cause significant environmental degradation, including vegetation clearing, rubble dumping, disruption of natural river flows and pollution,” said Dr Moyo.
“This necessitates stringent enforcement of environmental laws by relevant agencies to ensure sustainable mining practices and land rehabilitation.”
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