- Mining executive Thomas Lusiyano says mining strategy must account for geological risk.
- Exploration and mine development require large investment and long planning.
- He says timing, market cycles and disciplined investment are critical in mining.
THE MINING sector in Zimbabwe needs to adopt strategies that focus on geology, capital intensity, and market cycles instead of sticking to traditional business models, according to mining executive Thomas Lusiyano.
Lusiyano, who is a mining engineer and serves on the board of the Zimbabwe Consolidated Diamond Company, has over twenty years of experience in the mining value chain, including leadership positions at Bindura Nickel Corporation.
“While many sectors can borrow strategies from other industries, mining demands a unique approach,” Lusiyano explained.
“Mining strategy must take into account geological, financial, and political factors because the operating environment is quite distinct.”
Mining companies often grapple with uncertainty during exploration, as they need to locate mineral deposits before they can start production.
“In most industries, supply is secured through procurement contracts,” Lusiyano noted.
“In mining, the goal is to discover supply through exploration, which can be both expensive and unpredictable.”
He pointed out that geological risk is one of the most significant strategic challenges for mining companies.
“Exploration is a complicated process, and even with strong geological confidence, there’s no guarantee of a viable mine,” Lusiyano said.
“Thus, strategy must prioritise managing geological risks.”
Mining projects also demand large capital investments and tend to operate over long periods, making it challenging to implement rapid changes.
“Mining operations can’t easily scale up or down when market conditions shift,” Lusiyano stated.
“Companies need to concentrate on capital sequencing, optimising the life of the mine, and maintaining disciplined investment.”
Timing plays a crucial role, especially in volatile commodity markets.
“Timing is everything in mining,” Lusiyano said.
“Firms must synchronise exploration pipelines, development timelines, and production ramp-ups with market cycles.”
Mining projects typically take years to develop and require considerable funding before production can start.
Because of this, companies must balance long-term planning with shifting commodity prices and global demand.
Lusiyano said integrating exploration, investment planning and market intelligence is essential for sustainable mining growth.
“When companies align these elements, they can respond better to market volatility while protecting long-term value,” he said.
