What is the Zimbabwe Mining Index?

The Zimbabwe Mining Index is one of the two indices based on the Zimbabwe Stock Exchange, the other being the Zimbabwe Industrial Index. The mining index consists of four companies: Bindura Nickel, Falcon Gold, Hwange Colliery and RioZim. These firms mine several materials including gold, nickel, copper, and coal.

Where have you heard about the Zimbabwe Mining Index?

Your broker will likely have offered you the opportunity to invest in companies in global emerging markets, with some being riskier than others. Under long-term leader Robert Mugabe, Zimbabwe has become of the worst-performing economies in the world, and is an extremely risky destination for the private investor.

What you need to know about the Zimbabwe Mining Index.

The Zimbabwe Mining Index tracks the performance of four mining companies. It’s even more volatile than the Zimbabwe Industrial Index, regularly moving five percent or more in a single trading session. As of August 2017, the index was almost 200 percent higher than one year prior, so offers the brave investor the opportunity of significant profits. However, the previous year saw the index lose 80 percent of its value, so you should be aware of the potential for equally large losses. Although the mining sector is growing in Zimbabwe, it represents only a small share of the country’s GDP.