Zimbabwe Mining overview:
2014 - 2017
Background
Zimbabwe is emerging as an important mining centre within Southern Africa as foreign investment drives growth in mineral and metals production. In particular, the country will rise in prominence as a producer of platinum, gold and diamonds; however, we note that political and economic risks, coupled with increased government intervention, threatens to disrupt the industry's development over the next few years.
For example In May 2017, the government of Zimbabwe proposed a 'Use it or Lose it' policy in a draft policy paper of the Ministry of Mines regarding large gold mines that were left unused. Zimbabwe may confiscate these unused mining licenses from companies and liberalize gold trading as ways to boost output.
However in this document we discuss facts that are affecting the mining industry in Zimbabwe directly and indirectly.
Latest Updates & Structural Trends
Zimbabwe is growing in prominence as a global mining hub as it begins to leverage its considerable minerals and metals resources. The country is richly endowed with gold, nickel, diamonds, chrome and platinum, among other minerals.
The country's longstanding economic and political instability has constrained the development of the mining industry; however, foreign investors and mining groups have shown renewed interest in the country in recent years as the business environment has calmed slightly.
Investment in these markets has seen Zimbabwe mount a growing challenge to the world's leading platinum producers, Russia and South Africa, while a reduction in taxes on junior and artisanal gold miners is leading to significant growth in gold output.