Zimbabwe miners weather power crisis

Zimbabwe's mining industry says it has largely been shielded from the worst of the country's electricity shortages thanks to a targeted power rationing strategy that prioritises the sector. But operators warn that falling global commodity prices and high domestic costs are threatening viability and jobs.

In an interview this week, Chamber of Mines of Zimbabwe (COMZ) chief executive officer Isaac Kwesu credited the country's power utility, Zesa Holdings, for taking "bold moves" to ensure a stable supply to mining firms despite nationwide blackouts.

"The chamber has been engaging Zesa and government on these matters," Kwesu told The Independent. "I am happy to report that these engagements have seen Zesa prioritising mining companies for available power.

As a result, and despite the country's fragile power supply situation, reports from mining companies show that electricity supply has generally been stable during the first half of 2025, with minimal outages reported."

While power stability has offered some relief, Kwesu warned that a global commodity price slump has unsettled markets and slashed revenues for Zimbabwe's miners. Platinum prices have fallen nearly 30% from mid‑2024 peaks, lithium has been hit by a global oversupply, and diamond demand remains subdued in key markets such as China and the United States.

The downturn has coincided with a steep domestic cost environment marked by high production expenses, steep government fees, and what miners describe as "unsustainable royalties and taxes."

"Mining companies continue to implement cost‑cutting measures, including negotiating with suppliers, reducing non‑essential spending, and improving operational efficiencies," Kwesu said. "However, these measures have been inadequate to restore viability in sectors such as PGMs, lithium, diamond, and ferrochrome, where prices have slowed."

He said the chamber has been pressing government for urgent fiscal reforms, including a review of royalties and other charges, to protect nearly 50 000 jobs tied to the sector.

The mining industry, which accounts for more than 70% of Zimbabwe's export earnings, has seen export revenues tumble despite a rise in output.

Industry data shows that export receipts fell by 27% in the first quarter of 2025 — down to US$555 million from US$759 million in the same period of 2024 — representing a US$204 million loss. This came despite a 16% increase in production volumes.

The sector had targeted US$6 billion in revenues for 2025, a 9% increase on 2024, but the slump in prices and ongoing global logistical disruptions have put that goal at risk.

Kwesu said the chamber remains hopeful that continued dialogue with government will deliver relief measures to restore viability.