In a strong vote of confidence in domestic capacity, local contractors and suppliers will spearhead Mutapa Gold Resources’ (MGR) upcoming multi-phase expansion. The programme includes a US$150 million redevelopment at Shamva, with additional expansions planned across the group’s other mines, anchoring a broader growth strategy, Mining Zimbabwe reports.
By Ryan Chigoche
The move offers relief to Zimbabwe’s local supply chain at a time when several listed mining firms have raised concerns over the dominance of foreign contractors, who often favour imports over goods and services readily available in the domestic market.
That trend has fuelled debate within the sector, with industry players questioning whether the reliance on imports reflects genuine capacity and quality constraints among local suppliers or a strategic preference that sidelines domestic industry.
MGR is rolling out a multi-phase growth plan to lift group output over the next few years, anchored on the redevelopment of Shamva Mine. The company plans to invest about US$150 million to transform the operation into a large, low-cost open-pit mine with significantly expanded processing capacity.
Chief Executive Trevor Barnard said the project will be led primarily by Zimbabwean contractors and suppliers, underscoring confidence in the country’s technical skills and industrial capability.
“All the projects that we are planning to implement within the gold company over the next 5 to 10 years… We want to make sure that we support our local contractors. We want to make sure that we support our local suppliers. And certainly, we do have the skills and the competencies in the mining space in Zimbabwe to do that and to implement these projects. The skill is definitely available,” Barnard said.
Alongside Shamva, the company plans to expand Jena through a new processing plant and a transition to open-pit mining, targeting higher volumes at lower cost. The two projects will run partly in parallel and anchor the group’s near-term production growth.
Once Shamva and Jena are firmly established, focus will shift to the full-scale development of Elvington, moving beyond the current interim model to unlock the deeper main resource. Together with existing operations, these projects are expected to lift overall gold output over the medium term and sustain growth across the company’s broader asset base.
Industry data underscores the significance of this local-first approach. According to the Chamber of Mines of Zimbabwe, about US$2.1 billion of the US$5.4 billion generated by the sector in 2023 was spent on imported machinery, equipment, and services, while local manufacturing accounted for just 15%, highlighting heavy reliance on foreign suppliers.
Figures from the Zimbabwe Investment and Development Agency (ZIDA) show the pattern persists. In the first quarter of 2025, US$2.65 billion of the projected US$4.75 billion investment went toward imported capital equipment, meaning more than half of inflows did not directly benefit domestic suppliers.
Despite this, local contractors have repeatedly demonstrated the capacity to deliver large-scale mining infrastructure. At Mimosa Mining Company, the US$75 million Tailings Storage Facility (TSF-4) was executed entirely by Zimbabwean contractors, reinforcing the case for greater local participation in major mining projects.
