The mining sector of Zimbabwe is a key part of its economy, making around 60% of total exports. The country has a wide range of mineral sources, including gold, diamonds, lithium, coal, and platinum.  The mining companies of Zimbabwe play a big role in the employment and economic growth of the country. The government has also been working on several policies to attract investors and increase mining production. With ongoing developments, Zimbabwe aims to expand its mining sector in the upcoming years.

In this blog, we will discuss the top five mining companies in Zimbabwe, their operations, and economic status.

In this blog, we will learn about

1. Zimplats Holdings Limited

• Locations of Operations
• Five-Year Review
• Direct Economic Value Generation and Distribution
• Statements of Profit or Loss and Other Comprehensive Income
• Statement of Cash Flows

2. Mimosa Mining Company

• Overview of the company
• Recent Activity
• Mimosa’s Mtshingwe Nursery Project for Sustainable Agriculture and Women Empowerment 
• Mimosa’s Solar-Powered Nutritional Gardens

3. Kuvimba Mining House 

• Mineral Portfolio 
• The Mining Holdings of Kuvimba Mining House
• Operations Details – Gold, Nickel, Lithium, Chrome, Platinum

4. Bindura Nickel Corporation (BNC) (A member company of Kuvimba Mining House)

• Location of operations
• Recent Activity 

• Trojan Nickel Mine Limited (TNML) 
• The Trojan Mine Re-deepening Project 
• Hunters Road Nickel Mine (Private) Limited

• Operational Performance

5. Hwange Colliery Company Limited

• Products like all categories of coal and coke
• Markets

Zimbabwe’s mining sector is a significant contributor to the country’s economy. There are several key players in this sector. Here are five of the top mining companies in Zimbabwe:

1. Zimplats Holdings Limited
2. Mimosa Mining Company
3. Kuvimba Mining House
4. Bindura Nickel Corporation (BNC) (A member company of Kuvimba Mining House)
5. Hwange Colliery Company Limited

Overview of Zimplats Holdings Limited: Zimplats has a deep connection with the history of Zimbabwe and its natural resources. The company’s primary focus is the extraction and marketing of platinum and other associated metals. Besides Zimplats focusing on extracting and marketing platinum, they also give importance to the ancient infrastructure of Zimbabwe, such as the ones in Masvingo. Zimplats continues to follow this path, making Zimbabwe stronger for the future generations that will come into the country.

Zimplats’ main business focus is the production of platinum group metals that are mined from the Great Dyke in Zimbabwe. Their objective is to be a responsible and important metals producer that benefits investors and creates a better future for the country. The company encourages sustainability, creativity, and responsibility. This way, Zimplats will not only just benefit the present generation, but also the future generation that is to come in Zimbabwe.

Locations of Operations: The Zimplats operations are located in the Mashonaland West province of Zimbabwe along the Great Dyke. The mines- 

• Rukodzi Mine

• Ngwarati Mine

• Mupfuti Mine

• Bimha Mine
• Mupani Mine (Under development)

Five-Year Review: The company’s revenue and profits depend on metal prices, efficiency, and production costs. They are focused on growing and maintaining mining operations by investing heavily in capital projects. Safety and workforce data show their operational standards and social impact.

Figure 1: Five-Year Review of Zimplats Holdings Limited

Direct Economic Value Generation and Distribution: Zimplats distributes economic benefits based on its yearly goals, plans, and budget.

Figure 2: The chart shows how Zimbabwe Platinum Mines (Private) Limited utilized US$12.7 billion from FY2003 to FY2024.  

45% (US$5.837B) – Loan repayments (largest expense).  

22% (US$2.547B) – Payments to the government (taxes, royalties, etc.).  

15% (US$1.034B) – Employment costs.  

8% (US$799M) – Procurement costs.  

6% (US$783M) – Capital expenditure for expansion.  

4% (US$513M) – Dividends to shareholders.  

The company prioritized loan repayments, taxes, and employee wages, with a smaller focus on expansion and shareholder returns.

Statements of Profit or Loss and Other Comprehensive Income: June 30, 2024, at the end of the year, Zimbabwe Platinum Mines made very little profit than before. Revenue dropped from $962.9M in 2023 to $767.1M in 2024. The gross profit fell from $310.4M to $82.4M. Even though the company reduced certain costs, such as administration fees and foreign exchange losses, the finance costs remained high at $ 3.6 million.  

Before paying taxes, the profit went down from $286.8M to $37.6M, and the final profit dropped from $205.5M to $8.2M. The company itself lost $870K, a big change from its $73.3M profit in 2023. Earnings per share fell from 191 cents to 8 cents, and the company had a loss of 1 cent per share. 

These numbers show that the company had a tough year and needs to make smart changes to improve.

Statement of Cash Flows: For the year ending 30 June 2024, the group made $217.5 million from its business but spent money on finance costs and taxes, leaving a net cash inflow of $212.5 million. The company, however, lost $1.18 million. The group spent $350 million on buying property and equipment but earned only $3.88 million from selling assets, resulting in a cash outflow of $345.5 million. 

It also borrowed and repaid $2 million but paid $120 million in dividends, while the company paid $100 million. By the end of the year, the group had $78.06 million in cash, and the company had $15.94 million, showing good earnings but high spending on investments and dividends.

Overview of Mimosa Platinum Mine: It is one of the leading platinum producers in Zimbabwe. It has a rich history dating way back to 1926. In 1926, the Granger Brothers extracted 60 ounces of platinum from an oxide ore. Between the period 1966 to 1975, trial mining was undertaken by Union Carbide Zimbabwe. In 1994, mining was resumed with an updated pilot plant, gradually increasing production. In 1996, then, Zimasco united claims and increased output to 30,000 tonnes per month by 1998. Implay got a 35% stake in 2001 and later increased it to 50% in 2002, with 50% of the stake being held by Aquarius. 

Due to Several plant processing expansions, it increased a lot, reaching 185,000 tonnes per month in 2009. Infrastructure upgrades continued, including the establishment of a second exit shaft in 2017. Also, in 2021, Mimosa expanded its charter area to 7,635 hectares through strategic purchasing, confirming its future operations.

Recent Activity:

• Mimosa’s Mtshingwe Nursery Project for Sustainable Agriculture and Women Empowerment: Mimosa came up with the Mtshingwe nursery project. It provided better and improved horticulture training to farmers in Zimbabwe’s Zvishavane district. The main focus of this project was to improve the livelihoods of the farmers by enhancing agronomic practices. The project was designed to align with the UN’s goal of ending hunger and promoting sustainable agriculture. 
• Mimosa’s Solar-Powered Nutritional Gardens: Mimosa has set up fenced gardens with solar-powered watering systems. The farmers who work in these gardens learned their skills at Mtshingwe Nursery. They can now grow valuable crops to feed their families and sell in the market. The focus of this initiative is to make sure the community owns and runs all the projects started by Mimosa.

Overview of Kuvimba Mining House: It is a leading Zimbabwean mining company that specializes in gold and nickel, while also producing important and valuable minerals such as chrome and lithium. The company holds the largest chrome and lithium deposits in Zimbabwe, protecting its position as a vital part of the country’s mining sector. 

With the vast and diverse mineral resources of Zimbabwe, mining always remains an important pillar of economic growth. It contributes over 16% to the National GDP and accounts for more than 60% of the exports. Despite its huge potential, the mining sector faces several challenges, such as power shortages, low infrastructure, handcrafted mining concerns, and currency policies. Kuvimba remains committed to overcoming all of these challenges through creativity and investment, ensuring sustainable growth and long-term contributions to Zimbabwe’s economy.

They are a leading mining investment company committed to creating national wealth for Zimbabweans. Their approach includes:

1. Bringing in money and support from around the world
2. Helping struggling mining companies work better
3. Digging up different types of minerals in three main groups

Mineral Portfolio:

1. Precious Metals: Gold, Platinum
2. Bulk Commodities: Zimbabwe Alloys
3. Energy Group Metals: Lithium

Mines based on Operations: 

1. Gold Operations: Jena Mines, Shamva Mine
2. Nickel Operation: Bindura Nickel Corporation
3. Lithium Operation: Sandawana Mines
4. Chrome Operation: Zimbabwe Alloys Limited
5. Platinum Operation: Great Dyke Investments

The Mining Holdings of Kuvimba Mining House:

1. Gold Clusters: Freda Rebecca Mine, Shamva Mining Company, Jena Mines, Homestake, Elvington
2. Energy Cluster: Sandawana Mines, Bindura Nickel Corporation
3. Platinum Group of Minerals: Great Dyke Investments

Overview of Bindura Nickel Corporation (BNC): It is a reputed mining company in Zimbabwe specializing in nickel, copper, and cobalt. The company started its journey in 1966 and has been part of the Zimbabwe Stock Exchange since 1971. BNC operates a nickel mine in Bindura and owns a smelter and refinery that are currently not in operation. Nickel from BNC is mostly used to make stainless steel, and it is becoming more important for electric cars. The first nickel was found at Trojan Mine in 1956, and its production began in 1964. BNC has over 1,100 workers and runs three smaller companies, including Trojan Nickel Mine Limited.

Location of operations

Bindura Nickel Corporation has three mining locations in Zimbabwe- 

1. Trojan Mine (Bindura), 
2. Shangani Mine (Shangani), and 
3. The Hunters Road Project (between Gweru and Kwekwe). 

Recent Activity

1. Trojan Nickel Mine Limited (TNML): TNML operates two mines: 

a. Trojan Mine – produces 400,000 tonnes of ore and 5,500 tonnes of nickel concentrate annually and has proven reserves of 2.76 million tonnes of nickel ore.

b. Shangani Mine- holds 12.03 million tonnes of ore. 

2. The Trojan Mine Re-deepening Project: Trojan Mine successfully completed the Shaft Re-deepening Project in 2021. It deepened the shaft by 244 meters to access additional ore resources. The project also involved upgrading the sub-vertical rock winder. Additionally, there were replacements of mechanical and electrical systems. Some important infrastructures were modified to support future production.

3. Hunters Road Nickel Mine (Private) Limited: It is located 25 km from Kwekwe and 37 km from Gweru. It contains 36.4 million tonnes of mineral resources with a 0.55% nickel grade, equivalent to 200,000 tonnes of contained nickel. An additional 11 million tonnes at 0.43% nickel was estimated in 1993. This project is still ongoing.

Operational Performance: 

1. BNC is currently using half of the processing plant capacity at Trojan Mine.

2. The company aims to produce 10,000 tonnes of nickel per year, which is double the current output.

3. BNC is shifting to a high volume for long-term growth.

4. The Shaft Re-deepening Project will increase the plant’s capacity to 90,000 tonnes per month.

5. With a large confirmed resource of 8.33 million tonnes, BNC plans to ramp up development and produce 6,500 tonnes of nickel per year.

HCCL Holdings is a group of companies operating in mining, real estate, healthcare, agriculture, energy, and finance. It has been in the coal mining business for over 120 years. In 2024, it established six new companies, including Hwange Mining and Processing, Hwange Property, and Hwange Medical, among others. HCCL focuses on building strong businesses that help people and protect the environment. The company believes in teamwork and trust to create a better future. Right now, HCCL is going through exciting changes, using its skills and experience to grow and make a positive impact on communities.

Products: 

Coal Categories:

1. Thermal Coal (HPS)
2. Industrial Coal (HIC)
3. Coking Coal (HCC)

Coke Categories:

1. Foundry coke (+80mm)
2. Metallurgical coke (-80 + 20mm)
3. Coke peas (-30 + 10mm)
4. Coke breeze (-10mm)

By-products: Benzol, tar, naphthalene, and coke oven gas.

Markets

1. Hwange is the top coal producer in Zimbabwe, supplying coal to meet national demand.
2. The largest consumer is Hwange Power Station, which receives 180,000 tonnes of coal per month.
3. High-quality coal is sold for agriculture, mining, industry, homes, etc.
4. Zimbabwe Iron and Steel Company uses washed coking coal for its coke ovens.
5. By-products like crude tar and benzol are refined into chemicals, while excess coke oven gas is sold to Hwange Power Station.

Zimbabwe’s economy is steadily growing. The industry is led by five major companies, including Zimplats, Mimosa Mining, Kuvimba Mining House, Bindura Nickel Corporation, and Hwange Colliery. These companies are driving growth and expansion in the sector. 

Zimbabwe has abundant mineral resources, and the government provides strong support for investors. The mining sector has great potential. As global demand for minerals increases, the industry continues to expand, fueling the country’s economic future. The dedication and hard work of these mining companies are remarkable. If this growth continues, Zimbabwe will soon be ready for significant economic progress. Therefore, now is your time to invest in the mining industry in Zimbabwe.

To learn about investment opportunities and guidelines to invest in Zimbabwe, and much more, you can read Investment Opportunities and Guidelines: Your Guide to Invest in Zimbabwe