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Zimbabwe’s sovereign wealth fund-owned mining group, Kuvimba Mining House, has dramatically restructured its long-stalled Darwendale platinum project, opting for an open-pit development instead of the previously planned expensive underground model, Mining Zimbabwe can report.
By Rudairo Mapuranga
The move, driven by soaring platinum prices, is expected to accelerate a project once envisioned as the country’s largest mine.
A Shift from “Big Bang” to Pragmatic Start
Initially conceived in 2014 by then-President Robert Mugabe and Russia’s Foreign Minister Sergey Lavrov, Darwendale was meant to be a flagship underground mine, requiring around US$450 million in capital. However, the project faltered in 2022 following the withdrawal of its Russian partner amid slumping platinum prices.
Kuvimba CEO Trevor Barnard said the company is now adopting a more modest, phased approach: launching with an open-pit mine at around US$50 million, funded through its parent, the Mutapa Investment Fund, internally generated cash, and strategic borrowing.
“That is quite a change in scope and phasing,” said Barnard. “It’s very difficult to raise US$450 million specifically for a platinum project in Zimbabwe.”
Riding the Wave of Rebounding Platinum Prices
The timing of this strategy is no coincidence. Platinum prices surged a remarkable 36% in Q2, capped off with a 28% jump in June alone, topping US$1,430/oz—the highest monthly level since 1986.
Analysts highlight the perfect storm of robust Chinese demand, constrained output in South Africa, and speculative market activity as key drivers of the rebound. These market dynamics have reignited interest in projects that were previously shelved.
Regional Momentum in Platinum
Kuvimba isn’t alone in capitalising on this upswing. Tharisa PLC, which delayed its US$391 million Karo PGM project in Zimbabwe during the price downturn, recently confirmed it is accelerating final development following renewed market confidence.
Building on a Track Record in Gold
While awaiting the full-scale revival of Darwendale, Kuvimba has built credibility through its gold operations—producing 116,000 oz in 2024 from three functional gold mines. This steady performance strengthens its balance sheet and gives the company greater flexibility to support Darwendale’s new phased model.
A Model for Future Resilience
Kuvimba’s revised strategy offers a template for financial prudence in Zimbabwe’s mining sector. By aligning project pacing with revenue cycles and domestic investment, the company lowers its exposure to debt and external pressure.
“It’s extremely challenging to secure US$450 million specifically for platinum projects in Zimbabwe,” remarked Barnard.
As platinum prices continue to surge, Zimbabwe’s mining sector is entering a period of renewed opportunity. But success hinges on practical execution. The initial US$50 million investment must deliver rapid operational gains and investor confidence, lest the project falter again.
Kuvimba’s Darwendale pivot could signal the return of Zimbabwe as a serious player in platinum mining—but only if prudent planning, adaptability, and strong financing come together to deliver results.
