The local coal industry is increasingly reorienting itself towards market expansion, as producers seek to unlock higher production levels and improve profitability amid firm global prices and rising regional demand.
The shift comes as the coal sub-sector cements its place at the centre of the country’s mining growth trajectory, with industry executives highlighting its dual role as both a revenue generator and a critical enabler of industrial activity.
Coal and coke remain indispensable inputs across key sectors such as power generation, steelmaking and ferrochrome production, giving the commodity strategic weight beyond its direct export earnings. Industry leaders say this interconnectedness positions coal as a backbone of Zimbabwe’s broader industrialisation agenda.Zimbabwe Business Directory
The coal and coke sector plays a very important role in the whole mining industry. It not only contributes directly to revenue but also supports the entire industrial chain.
Industries such as ferrochrome, steelmaking and power generation all depend on coal, meaning it contributes both directly and indirectly to the wider economy.
Against this backdrop, producers are now prioritising the expansion of domestic and regional markets as a pathway to scale output.
Makomo Resources general manager Kuda Nyabonda said: “Our focus is on expanding the coal market because increased demand naturally drives higher production. As production rises, it strengthens our margins, while export earnings will also contribute towards achieving broader mining sector targets.”
The mining sector continues to show steady gains, with mineral exports surpassing US$3 billion in 2025, up from US$2,9 billion the previous year. Although coal still accounts for a relatively small share of export earnings, momentum is building.
Data from the Reserve Bank of Zimbabwe show coal exports generated US$16,5 million in February 2026, representing about 1,7 percent of total merchandise exports. The figures point to gradual but meaningful growth in the sector’s external contribution.
Global market conditions are also tilting in the industry’s favour. According to research firm BMI, thermal coal prices have remained elevated amid geopolitical tensions in the Middle East.
Mining engineer Takudzwa Mashonga said prices surged sharply between late February and March before stabilising at around US$139 per tonne, well above last year’s average.
“The resilience in prices is attributed to rising natural gas costs, which are prompting several Asian markets to revert to coal as a more reliable and cost-effective baseload energy source. This trend is creating opportunities for emerging exporters such as Zimbabwe, particularly within regional markets where logistical advantages exist,” Eng Mashonga said.Zimbabwe Business Directory
Despite this export potential, the domestic market continues to dominate. Zimbabwe consumes between 2,5 million and 3 million tonnes of coal annually, with most output feeding into power generation and industrial processes.
The Hwange Thermal Power Station remains the largest single consumer, underscoring coal’s central role in sustaining electricity supply. Recent developments are expected to reinforce this position.
In September, Zimbabwe signed a US$455 million concession with Jindal Africa to rehabilitate six ageing units at the Hwange Thermal Power Station.
The four-year project is designed to restore 920 megawatts of capacity, with the investor set to recover costs through electricity sales over a 15-year period. Authorities expect the upgrade to ease persistent power shortages and improve reliability at the country’s largest power facility.
Eng Mashonga added: “Beyond electricity generation, coal remains integral to cement manufacturing, metallurgical processes and general industry, reinforcing its role as a cornerstone of Zimbabwe’s productive sectors.
“The industry is also beginning to shift towards beneficiation, with growing interest in higher-value products such as coke. This transition reflects a broader policy push to move away from raw commodity exports and capture more value within the domestic economy.”
BMI’s revised 2026 price outlook of around US$115 per tonne adds further support to the sector’s prospects. Sustained global demand, combined with targeted market expansion and value addition, could see coal evolve from a secondary export earner into a more significant driver of both industrial growth and foreign currency inflows.
As producers position themselves for this next phase, the strategy is becoming clear: expanding markets is no longer optional but essential to unlocking the coal sector’s full economic potential.-herald
