Undercapitalisation and Mining Livelihoods: the Complexities of Chinese Investment in Small-scale Chromite Mining in Zimbabwe

Abstract

This study analyses how undercapitalised small-scale chromite miners have deployed Chinese capital to finance mining operations and promote a burgeoning rural economy in Zimbabwe. It highlights that the rapid expansion in small-scale mining activities has been facilitated by radical shifts that are linked to the country’s economic crisis and the Fast Track Land Reform Program (FTLRP). The injection of China’s foreign investment has provided mechanised operations and cushioned the industry from cyclical periods of hyperinflation and liquidity challenges in the
macroeconomy. The expansion in chromite mining has had mixed fortunes among rural livelihoods through the diversification and expansion of commerce and peasant agrarian activities. The paper, however, also examines the fraught nature of increased dependency on Chinese capital. This has led to a monopoly, which miners argue has
resulted in marketing manipulation and outright exploitation. I, however, argue that this exploitation should not be read as outright malignancy. Rather, I link it to several policy failures, misguided liberalisation, improper deregulation and politicisation of chromite mining.