Zimbabwe’s mining sector, widely regarded as the backbone of the economy and the country’s largest foreign currency earner, lost a staggering 1,216 jobs in 2024, marking a 314% increase from the 294 layoffs recorded in 2023.
The sharp rise in job losses is detailed in a new report by the Chamber of Mines of Zimbabwe (CoMZ), released on Thursday at the opening of the 2025 Mining Conference in Victoria Falls. CoMZ said:
For the year 2024, the (industry) recorded 1 216 retrenchments. As at December 31, 2024, records showed that at least 49 160 workers were employed in the mining industry, with a vast, but unknown number of unregistered…workers also operating largely in gold mining.
Generally, there was a decrease in the number of people employed within the mining industry due to retrenchments by various mines.
Zimbabwe’s mining industry is struggling with crippling power outages, weak global commodity prices, and severe foreign currency shortages.
Some miners reported blackouts lasting up to 18 hours a day. Last year, 69 mines retrenched staff, up from 42 in 2023, as the cost of doing business became increasingly unsustainable.
CoMZ noted that more than 500,000 artisanal and small-scale miners were employed in the sector during this period.
Power challenges have been a major factor in the industry’s downturn. To sustain operations, some mines have turned to alternative energy sources, including solar power and diesel generators.
CoMZ has partnered with companies such as SolarCentury Africa, Grid Africa, GEnergy, and Matobo Energy to develop more reliable off-grid energy solutions. The report noted:
Most of these potential suppliers required off-take agreements to make their projects bankable.
The Intensive Energy User Group also assisted some companies to import power directly from the region at competitive tariffs.
The general tariff stayed at USc14.21/kWh, with ferrochrome producers receiving a concessional USc8/kWh rate, provided they develop their own power facilities within two years.
Despite challenges, the sector posted modest gains in 2024. Output increased for gold, platinum group metals (PGMs), and chrome ore, while lithium and phosphate declined.
Mineral exports rose 9% to US$5.9 billion, driven by a 37% surge in gold shipments worth US$2.5 billion. Minerals accounted for 75% of Zimbabwe’s export earnings last year.
The report forecasts exports exceeding US$6 billion in 2025, supported by higher production and a modest price rebound. The sector aims to attract US$429 million in new investments to sustain growth.
Capacity utilisation held steady at 84% in 2024, with gains in gold, chrome, and diamonds, though coal production fell. Utilisation is expected to reach 90% in 2025 as expansion plans advance.
However, structural challenges persist, with gold, PGMs, and lithium making up 75% of mineral exports in 2023 and 85% of export revenue in 2024, showing limited diversification.
More: The Independent
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