Using Zimbabwe's untapped natural resources as collateral to secure loans from overseas was described as "resource looting" at a regional conference on the political economy on Friday.
The conference was attended by people in the mining industry in Southern African Development Community countries.
Speakers revealed that Zimbabwe had lost between $3bn and $15bn through looting, mostly of its diamond fields.
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Last week, Bloomberg reported that Harare had secured a $500m loan using an undeveloped platinum mine as collateral.
The money borrowed from the African Export-Import Bank has reportedly been injected into the country's banking sector through the Reserve Bank of Zimbabwe.
The government has not officially responded to reports of the mortgaging of the country's minerals to secure the loan.
Mutuso Dhliwayo, executive director of the Zimbabwe Environment Lawyers Association, said the secrecy raised concerns.
"This deal aids in resource looting. The deal is secretive. We don't know the terms and conditions. It may be a poor contract that does not unlock value," said Dhliwayo.
The secretary for finance, George Guvamatanga, refused to comment on the loan.
The government, according to law, needs to notify the public and give details of such contracts when natural resources are concerned, said legal expert Alex Magaisa, who served as an adviser to the late MDC leader Morgan Tsvangirai.
Claude Kabemba, an executive director of Southern Africa Resources Watch, said there was little transparency, accountability and governance in Zimbabwe's mining sector. This was especially apparent after revelations that the planned mine pledged as collateral was still undeveloped.
This deal aids in resource looting. The deal is secretive
— Mutuso Dhliwayo, executive director of the Zimbabwe Environment Lawyers Association
"I doubt the loan is going into the productive sector. The interest rate on the loan is unknown. It appears like a bad approach to business, even if you are under pressure economically or otherwise," said Kabemba.
"The danger is that the country will end up mortgaging other mineral resources that have nothing to do with the mining concession at hand. Other of the country's assets might also be seized or sold off to offset the loan in the event of problems around repayment. We have seen this happen in Zambia. This is a problematic arrangement."
In June last year the mines parliamentary portfolio committee heard from the Minerals Marketing Corporation of Zimbabwe that for the period 2006 to 2017, the country produced just over 51-million carats of diamonds, with a value of about $2.4bn.
From that figure, the government received about $300m in the form of royalties. This is in sharp contrast to former mines minister Obert Mpofu's claims that, annually, the country would generate diamond revenues of $2bn.
There are also fears of human-rights abuses or violations, as was the case in the controversial Marange diamond fields in Manicaland.
About 200 artisanal miners were said to have been killed by state security agents during the rush for the precious stones at the Chiadzwa diamond fields in 2007.
Tigere Chagutah, Amnesty International's deputy regional director for campaigns, said Zimbabwe did not even have the technical skill to quantify what it had mortgaged.
"Zimbabwe does not have the tools to value the mineral deposits and the quality of the minerals that are being mortgaged.
"There is a great risk of being cheated on the true value," he said.
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