Coal is on the Comeback Trail in Zimbabwe in 2025

Zimbabwe’s coal production is staging a notable recovery in 2025, with output expected to rise by around 10.5%, reaching approximately 6.3 million tonnes, up from 5.7 Mt in 2024 and just 5 Mt in 2023. This resurgence underscores coal’s central role in powering the nation’s electricity grid and bolstering its industrial base.

The key industry drivers behind this sudden resurgence in coal output are Hwange Colliery and Zambezi Gas Investments. Hwange Colliery is Zimbabwe’s largest coal producer, and has recently invested US $17 million in maintenance for its crucial Unit 3, plus an additional US $3 m into its battery oven - targeting a 13% overall production increase and potentially doubling its coke output.

Zambezi Gas is also enhancing its capabilities with a US $450,000 coke oven facility in order to scale up its operations. In addition, the Muchesu Coal Project, with over 2 billion tonnes of reserves, is gaining momentum, while Makomo Resources has restarted production following a successful turnaround, adding further depth to national supply.

Other factors are coming into play as well.The government’s re-engagement with global markets and its efforts to stabilise the ZiG currency have been lauded by industry leaders, enabling smoother procurement of essential imported machinery and parts. In addition, with growing thermal-coal reserves risking fire hazards, Energy Minister July Moyo has urged mining companies to build on-site power plants—leveraging extraction byproducts to generate electricity. In its UN climate plan, Zimbabwe indicated plans to refurbish Hwange’s thermal units, increasing capacity by 400 MW, alongside a proposal for a new 720 MW coal-fired plant to offset deficits from drought-hit hydropower.

Coal’s remarkable uplift, with 61% year-on-year growth in Q1 2025 alone, is also propelling the mining sector’s overall expansion of 7%, according to the Zimbabwean Chamber of Mines. Stronger coal supplies are critical to powering energy-intensive gold, PGM, and chrome operations, which collectively will receive a projected US $600 m in planned capex in 2025.

While coal’s revival stabilises energy and fuels industrial growth, critics caution against its environmental impacts. Chinese-backed coal‑fired power plants, like the Dinson and Jinan facilities, have sparked concerns over pollution and climate impact. Zimbabwe faces mounting pressure to balance immediate energy security with longer-term climate commitments.

Zimbabwe appears set to build on a multifaceted coal strategy in 2025—investing in mine upgrades, power-plant links, and infrastructure expansion. If these projects deliver on time, coal output could exceed 6 Mt, supporting grid stability and mining growth. That said, success hinges on sustained currency stability, timely project completion, and strategic policy alignment—especially as lifetime carbon emissions and climate resilience come into sharper focus.

The coal sector’s resurgence is a double-edged sword: a necessary short‑term boost to economic recovery and energy reliability, but one which must be carefully managed to avoid long‑term environmental debt.