Finance minister highlights $18.4M budget for sustainable mining growth FINANCE Minister Professor Mthuli Ncube presented Zimbabwe's 2025 national budget on November 28, 2024, allocating ZIG664.8 million (approximately US$18.4 million) to the Ministry of Mines and Mining Development to drive economic transformation through sustainable mining. The budget aims to enhance mineral exploration, promote local value addition, and implement environmentally friendly practices, projecting a 5.6% growth in the mining sector by 2025. “The mining sector is projected to grow by 5.6% in 2025, driven by increased outputs in platinum group metals (PGMs), gold, chrome, and diamonds,” said Prof. Ncube during his budget presentation. A significant portion of the budget aims to support mineral beneficiation, which involves processing raw minerals within Zimbabwe to boost their value before export. This approach aligns with the nation’s Vision 2030 goal of achieving upper-middle-income status. By prioritising local processing, Zimbabwe seeks to mitigate the impacts of fluctuating global commodity prices, a persistent challenge for the sector. The government is optimistic that these initiatives will bolster export revenues and economic stability. Acknowledging the environmental toll of mining, the budget includes policies aimed at rehabilitating degraded landscapes and promoting sustainable practices. These measures align with Zimbabwe’s National Climate Change Adaptation Plan (2024–2030), which seeks to balance economic growth with environmental conservation. Incentives such as reduced customs duties on electric mining vehicles reflect the government’s commitment to greener mining technologies. Mining activities remain concentrated in resource-rich areas such as the Great Dyke, known for PGMs and chrome, and Mutare, renowned for diamonds. However, these regions face challenges like deforestation and water contamination. The government has pledged to ensure that communities benefit from mining revenues through improved infrastructure and social programmes. Global commodity price fluctuations have historically affected Zimbabwe’s mining revenues. In 2024, lower PGM prices dampened performance, but targeted investments in local beneficiation and cleaner technologies aim to shield the economy from similar disruptions in the future. The adoption of advanced mining technologies is a cornerstone of Zimbabwe’s strategy. By integrating renewable energy sources and modern mineral separation methods, the government hopes to reduce the carbon footprint of mining operations while improving efficiency. Zimbabwe’s approach to the mining sector reflects its broader economic priorities. The 2025 national budget also emphasises macroeconomic stability and infrastructure development, laying the groundwork for sustained growth.
