Zimplats signs major equipment deal with Sandvik

Sandvik has won a major contract to supply underground mining equipment to Zimplats, Zimbabwe’s largest platinum group metals (PGM) producer. The order, valued at around $30 million, is one of the biggest recent investments in Zimbabwe’s mining sector and will play a central role in Zimplats’ shift from open-pit to underground mining at its flagship Ngezi operation.

A Strategic Move Underground

Located on Zimbabwe’s mineral-rich Great Dyke, the Ngezi mine has long been a cornerstone of the country’s PGM industry. Until recently, operations relied heavily on open-pit mining. But as surface resources decline and environmental pressures increase, Zimplats has turned its focus underground, a move requiring specialized equipment and significant capital investment.

Key Details of the Order

The package for Ngezi includes 28 pieces of underground equipment:

  • 12 low-profile loaders (LH209L)
  • 6 development jumbos (DD211L)
  • 5 DS211L-V bolters
  • 3 large haul trucks (TH545i)
  • 2 smaller haul trucks (TH430L)

Also included are parts and service kits to ensure long-term performance.

Building for the Future

The investment is not just about machinery. For Zimplats, it represents a long-term commitment to boosting productivity, cutting costs, and improving worker safety. Underground mining presents unique challenges, from tight working spaces to ventilation and rock stability, and the new fleet is designed to meet them.

Alexander Mhembere, CEO of Zimplats, remarked:

“This new Sandvik fleet is a strategic step in enhancing our underground capabilities and ensuring we continue to operate safely, efficiently and sustainably. Partnering with Sandvik gives us the confidence that our operations will be supported by proven equipment and dependable service.”

By phasing deliveries between the third quarter of 2025 and the second quarter of 2026, Zimplats will be able to integrate the new machines without disrupting current production. The staged rollout also allows time to train operators and maintenance crews, ensuring the mine gets full value from the technology.

Sandvik’s Growing African Footprint

For Sandvik, the contract underscores its role as a leading supplier of underground solutions in Africa. The company has been steadily expanding its presence on the continent, capitalizing on a wave of investment in underground operations as ore bodies become harder to reach.

Mats Eriksson, President of the Mining business area at Sandvik, expressed the company’s position:

“We are proud to partner with Zimplats on this significant investment in the Ngezi underground operations. This order reflects our strong commitment to providing reliable, fit-for-purpose equipment and services that help our customers achieve their productivity, safety and sustainability targets.”

The deal also gives Sandvik a long-term aftermarket stream. With parts, service, and maintenance baked into the agreement, the company will remain closely involved in the day-to-day operation of the fleet, ensuring performance and reliability over its lifecycle.

Challenges on the Horizon

Despite the positive outlook, several challenges could shape how the investment plays out. Zimbabwe’s mining industry has long grappled with policy uncertainty, currency volatility, and infrastructure gaps. Reliable power supply and access to skilled labor remain pressing concerns for operators.

Globally, the PGM market also faces fluctuations in demand and pricing, tied closely to the automotive sector’s use of platinum, palladium, and rhodium in catalytic converters. These dynamics could affect the speed at which Zimplats recoups its investment.

Still, industry watchers say the move is a necessary one. Underground mining offers Zimplats the chance to extend the life of its Ngezi asset, improve ore quality, and strengthen its position in a competitive global market.

A Signal for Zimbabwe’s Mining Industry

The contract is more than a win for Sandvik and Zimplats, it’s also a signal to the broader mining sector. It shows that even in a challenging operating environment, large-scale investments in Zimbabwe remain possible when supported by the right partners and long-term strategies.

With mining contributing significantly to Zimbabwe’s GDP and export earnings, projects like this one at Ngezi will be closely watched as a test of the country’s ability to attract and sustain international investment.

Looking Ahead

By mid-2026, Zimplats expects to have one of the most advanced underground mining fleets in the region. If successful, the project could become a model for other PGM operators in Africa seeking to balance efficiency, safety, and sustainability in a rapidly evolving industry.

For Sandvik, the deal strengthens its reputation as a trusted supplier for high-stakes mining projects. For Zimplats, it marks a decisive step into the next chapter of its operations. And for Zimbabwe, it represents another vote of confidence in the country’s mineral wealth, and its potential to fuel growth in the years ahead.

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