Mining boom masks thousands of job losses

Zimbabwe's mining industry shed more than 3,500 jobs in 2025 despite recording one of its strongest performances on record, highlighting a widening disconnect between robust mineral export earnings and employment creation.

According to the Chamber of Mines of Zimbabwe (CoMZ) Annual Report, employment in the sector declined from 54,600 workers in 2024 to 51,022 by December 31, 2025, as several mining companies embarked on retrenchments.

The sector generated mineral export earnings of US$7.3 billion during the year, accounting for about 75 percent of Zimbabwe's total export receipts.

"There was a decrease in the number of people employed within the mining industry due to retrenchments by various mines," the Chamber said in its report.

The job losses come against the backdrop of a deteriorating formal labour market.

According to the Zimbabwe National Statistics Agency (ZimStat), more than 65,000 workers across various sectors lost their jobs during the second quarter, with organised labour identifying mining as one of the hardest-hit industries.

Zimbabwe Diamond and Allied Minerals Workers Union secretary-general Justice Chinhema recently warned that the sector had entered what he described as a dangerous phase of accelerated retrenchments.

"We are deeply alarmed that the mining sector has entered a phase of accelerated job shedding, with the heaviest impact being felt in diamond and lithium operations," Chinhema said.

"Available industry figures indicate that the formal mining industry recorded over 1,000 retrenchments in 2024, compared to just a few hundred in 2023, which also increased in 2025, a clear sign that the crisis is man-made and accelerating under the current policy and regulatory environment."

He said several diamond mining companies had embarked on large-scale contract terminations, while workers at some operations had reportedly gone for more than six months without receiving salaries.

Chinhema attributed the crisis to a combination of declining global diamond prices, weak labour protection, high electricity costs and inconsistent government policies.

"Global price fluctuations may be the spark, but it is weak enforcement that has turned a price downturn into a full-blown jobs catastrophe," he said.

Zimbabwe Congress of Trade Unions president Florence Mucha Taruvinga also expressed concern over the worsening employment situation in the mining sector.

"We are concerned as a trade union about the current state of affairs," she said.

The retrenchments occurred despite exceptional production and export performance.

Mineral exports rose by 24 percent to US$7.3 billion in 2025 from US$5.9 billion the previous year.

Gold exports surged by 72 percent to US$4.3 billion from US$2.5 billion, supported by record production and favourable international prices.

Gold output increased by 31 percent to 50,514 kilogrammes, while coal production expanded by 26 percent to 7.28 million tonnes.

Average capacity utilisation also improved from 84 percent in 2024 to 88 percent in 2025, with the Chamber projecting a further increase to 95 percent this year.

Despite the impressive growth, employment moved in the opposite direction.

The Chamber attributed the retrenchments to a challenging operating environment characterised by escalating production costs, foreign currency shortages, unreliable electricity supplies and limited access to capital.

"The operating environment for the mining industry was predominantly challenging on the back of high costs of production, fragile power supply…" the report said.

The latest figures raise fresh questions about Zimbabwe's mining-led growth strategy.

Mining contributes about 14.5 percent of Zimbabwe's gross domestic product and remains the country's largest source of foreign currency, yet the sector's strong financial performance has not translated into increased employment.

The strain facing mining companies was also reflected in labour relations during the year.

The National Employment Council for the Mining Industry approved 37 applications from companies seeking exemptions from paying prescribed minimum wages, while its technical sub-committee spent much of the year considering retrenchments, wage exemption requests and measures aimed at preserving jobs.

"The committee also deliberated on matters relating to retrenchments and job evaluation. Attention was given to the prevailing economic challenges faced by the industry and the imperative to preserve and create jobs," the Chamber said.

More than 90 percent of the exemption applications considered by the technical sub-committee reflected agreements negotiated between employers and workers at company level.

Despite the employment challenges, the Chamber remains optimistic about the industry's outlook, projecting weighted average mineral output growth of 7 percent in 2026, driven by expansion projects, new investments and higher production across several mineral commodities.