Features desk
The story of Zimbabwe’s coal industry is one of immense promise turned into profound decline, a journey marked by mismanagement, economic instability, and shifting global energy trends.
Once a thriving sector, coal mining played a crucial role in the nation’s industrialization, fueling power stations, providing employment, and contributing significantly to the economy. Hwange Colliery Company Limited (HCCL), the nation’s largest coal producer, was a symbol of industrial success, supplying both local and regional markets.
At its peak in the 1990s, Zimbabwe produced over five million tonnes of coal annually, with ambitious expansion plans that aimed to transform the country into a regional energy powerhouse.
However, over time, the industry began to falter, leading to a gradual collapse driven by financial mismanagement, outdated infrastructure, economic instability, and dwindling investment.
By the early 2000s, the coal industry was already showing signs of distress. Poor corporate governance, corruption, and financial mismanagement plagued HCCL and other coal mining firms.
Despite being a major coal producer, HCCL struggled with mounting debts, with liabilities exceeding US$150 million by 2019. The government, which owns a majority stake in the company, intervened several times, yet failed to implement lasting solutions.
Frequent changes in management further exacerbated the crisis, leading to operational inefficiencies and worker unrest. Coal miners faced months without salaries, leading to a mass exodus of skilled labor.
Once-bustling mines, filled with the echoes of drilling machines and conveyor belts, slowly turned into ghost towns as operations came to a standstill.
Coal production in Zimbabwe has declined sharply over the years. In 2010, the country was producing around four million tonnes per year, but by 2023, this had plummeted to approximately 2.5 million tonnes, representing a 37.5% drop.
The decline in production meant that Zimbabwe, which once met its domestic coal demand with ease, started experiencing energy deficits. Thermal power stations, particularly Hwange Power Station, suffered from erratic coal supplies, leading to frequent power outages across the country.
The domestic market was not the only casualty; Zimbabwe also lost its competitive edge in regional coal exports. Countries like South Africa and Mozambique, with more efficient mining operations and stable policies, outcompeted Zimbabwe, leading to reduced demand for local coal on the international market.
A significant contributor to the collapse of the coal sector has been the reliance on outdated infrastructure. Much of the machinery used in Zimbabwe’s coal mines dates back to the pre-independence era, resulting in frequent breakdowns and inefficiencies.
Maintenance costs skyrocketed, forcing companies to operate at a loss. Additionally, coal transportation became increasingly difficult. The National Railways of Zimbabwe (NRZ), which played a crucial role in ferrying coal from mines to power plants and export terminals, suffered its own crisis.
Frequent derailments, fuel shortages, and corruption within NRZ resulted in delayed coal deliveries, further crippling the industry. By 2023, transportation costs accounted for nearly 40% of the total cost of coal production, making it economically unviable for many mining firms to continue operations.
The collapse of the coal industry has left deep scars on the surrounding communities, particularly in Hwange, where the majority of coal mining activities are concentrated.
Thousands of workers lost their jobs, leading to increased poverty and social dislocation. The once-thriving mining towns are now plagued with abandoned houses, closed schools, and struggling local businesses.
Additionally, the environmental damage caused by decades of coal mining has been severe. Open-pit mines left unrehabilitated have become hazardous, with frequent reports of children falling into deep, unprotected pits. Air and water pollution from coal dust and toxic waste continue to affect nearby communities, leading to respiratory diseases and water contamination.
Over the years, the government has attempted several interventions to revive the coal sector, but most have yielded minimal results. In 2020, Zimbabwe announced plans to attract new investors into the coal industry, granting licenses to new players such as Zambezi Gas and Makomo Resources.
While these companies injected some life into the sector, overall production remained below expectations. The government also launched the National Development Strategy 1 (NDS1), which aimed to increase energy production and reduce dependency on imported power.
However, without adequate funding, infrastructure upgrades, and a stable economic environment, these initiatives struggled to gain traction. Foreign direct investment (FDI) into the coal sector remained low, as international investors viewed Zimbabwe as a high-risk destination due to policy inconsistencies and an unstable currency.
Zimbabwe’s coal industry collapse is not solely a domestic issue; global trends have also played a role. As the world moves towards cleaner energy sources, coal has faced declining demand internationally.
Major coal importers such as China and India have gradually shifted towards renewable energy and natural gas, reducing their reliance on Zimbabwean coal. Furthermore, global financial institutions, including the World Bank and International Monetary Fund (IMF), have cut funding for coal-related projects, making it difficult for Zimbabwe to secure capital for the industry’s revival.
Many investors now prefer funding renewable energy projects, leaving coal mining firms struggling to secure the necessary capital to modernize operations.
Despite the bleak outlook, industry experts believe that with the right policies and investments, Zimbabwe’s coal sector can be revived. Modernization of equipment would significantly improve efficiency and reduce production costs.
Incentives for companies to import new mining equipment without excessive taxation could help rejuvenate the sector. Investment in clean coal technologies, such as carbon capture and storage (CCS), could make coal use more environmentally friendly, allowing Zimbabwe to still benefit from its vast coal reserves while meeting global climate change commitments.
Instead of solely exporting raw coal, Zimbabwe could invest in coal-to-liquid (CTL) technologies and coal-based energy production, creating a more sustainable revenue stream for the industry.
The government should consider partnering with private firms to rehabilitate existing coal mines and enhance production capacity. A more business-friendly regulatory framework would attract investors back to the sector.
The broader economic challenges facing Zimbabwe, including currency instability and inflation, need to be addressed. A stable economy will boost investor confidence and make coal mining financially viable again.
Zimbabwe’s coal industry, once a symbol of economic prosperity, has faced a dramatic decline due to mismanagement, outdated infrastructure, economic instability, and global energy shifts.
However, while the current outlook is bleak, the sector is not beyond salvation. With strategic investments, policy reforms, and a commitment to modernizing operations, Zimbabwe still has an opportunity to breathe new life into its coal industry.
For now, the mines of Hwange remain a stark reminder of what was once a thriving industry—an industry that powered a nation but was left to crumble under the weight of poor governance and shifting global dynamics.
Whether Zimbabwe can reclaim its place as a key coal producer remains to be seen, but one thing is certain: without decisive action, the echoes of mining drills and conveyor belts may soon become a distant memory.