Beitbridge- THE Palm River Energy Metallurgical Special Economic Zone project in Beitbridge is expected to generate US$1,7 billion by 2030, significantly contributing to the country’s Vision 2030 goal of becoming an upper-middle-income economy.
Mining remains a key pillar of Zimbabwe’s economic growth, contributing substantially to GDP, export earnings, and employment. The sector has seen a surge in investments, with companies committing resources to exploration, expansion, and plant construction. Strong Government policies, improved regulatory frameworks, and rising global demand for minerals have positioned the industry as a cornerstone of the country’s economic transformation.
Speaking at the ground-breaking ceremony in Beitbridge on Monday, Mines and Mining Development Minister Winston Chitando underscored the project’s role in achieving Vision 2030. “In terms of the milestones, there was a reference to the contribution to Vision 2030 of transforming the country into an upper-middle-income economy. At that stage, this project envisages 500 000 tonnes of ferrochrome, 500 000 tonnes of coking coal, at least 250 MW of power, and one million tonnes of carbon steel production,” he said.
“Which means that by 2030, this project will be generating about US$1,7 billion.”
Minister Chitando further highlighted how the initiative aligns with the “Zimbabwe is open for business” mantra and its broader economic development agenda. “President Mnangagwa’s 2030 vision and the Zimbabwe is open for business mantra is what is being implemented here. And as you have said, brick by brick, we are building the country and leaving no place and no one behind,” he said.
Minister Chitando expressed satisfaction with the steady progress of the project across all phases.
The thermal power station that is under construction at the Palm River Energy Metallurgical Industrial Industrial Park in Beitbridge
“There are defined work plans towards the achievement of the targets. In terms of those business objectives, on the power station, there is a 50 MW power plant ready to put power into the grid,” he said.
“The shell structure that has been constructed will facilitate the speedy construction of an additional 50 MW of power production.” Minister Chitando also revealed that a 100 000-tonne high-carbon ferrochrome production plant is already in place and is set to become operational by March.
The mining and metallurgical project represents a significant step toward Zimbabwe’s industrialisation and economic transformation, reinforcing Government’s commitment to sustainable development.
Zimbabwe has over 60 recorded mineral types, but only 10 are being actively extracted. Further mining of the remaining resources depends on adequate exploration and resource definition.
There have been growing calls within the sector to incentivise exploration activities as unlocking new mineral discoveries is essential for the mining industry’s contribution to sustainable socio-economic development. Exploration data is considered critical for attracting investors and determining the resources needed for mineral exploitation.
Infrastructure development, particularly in energy and transport plays a crucial role in mining sector growth.
The Government, in collaboration with private investors, is working to improve electricity supply, road networks, and rail transport to facilitate efficient mineral extraction and export. The adoption of modern mining technologies, such as automation and environmentally friendly extraction methods, is also boosting productivity and sustainability in the sector.
According to the Chamber of Mines 2025 mining industry prospects report, mining executives expressed optimising on spending on capital projects this year.
“About 56 percent of the respondents executives indicated that they would spend more capital in 2025 compared to 2024 while 13 percent are planning to inject the same level of capital as in 2024,” reads part of the report.
A World Bank report titled “Improving Resilience to Weather Shocks and Climate Change,” noted that Zimbabwe’s mining sector continues to exhibit strong growth.
This expansion is supported by rising gold prices and new investments expected to boost lithium production as well as iron and steel manufacturing.
Source:The Herald
