Mining ZimbabweLatest Mining News, Policy and Industry Updates

• Consortium of eight local banks oversubscribes facility by US$50 million as Zimbabwe’s financial sector backs mining expansion

Mutapa Gold Resources Ltd. has secured US$125 million in syndicated financing from a consortium of eight domestic banks, significantly exceeding its initial US$75 million target in a landmark transaction that signals growing confidence in Zimbabwe’s mining sector, Mining Zimbabwe can report.

By Rudairo Mapuranga

The funding, which was oversubscribed by US$50 million, will support the development of the US$152 million Shamva Hill Project and expansion works at Jena Mine. The project will transform Shamva from a 66kg-per-month producer to a 200kg-per-month operation while freeing up processing capacity at Freda Rebecca.

“The financial services industry in Zimbabwe surprised us. When all those participating have signed, the amount that we have raised is US$125 million – US$50 million more than the US$75 million that we wanted,” said Patrick Maseva-Shayawabaya, CEO of Mutapa Gold Resources. “That US$50 million is what we’re going to allocate to Jena.”

Banking syndicate details

The financing facility was arranged and fully funded by Zimbabwean institutions, marking one of the largest domestic syndications for a mining expansion project in recent years. The breakdown of commitments is as follows:

Patrick Matute, Group General Manager of CBZ Holdings, speaking on behalf of the banking consortium, described the transaction as “the making of a billion-dollar business”. CBZ, which is one of Zimbabwe’s largest financial services groups, has committed approximately US$254 million towards mining-related financing across the extractive industry.

“Today, Mutapa Gold is already Zimbabwe’s largest gold producer, delivering around 115,000 ounces annually across Freda, Shamva and Jena,” Matute said. “That alone is a remarkable position. But the ambition we’re financing today goes much further – with the development of the Shamva open-pit mine and its state-of-the-art processing plant, Mutapa Gold has a clear path to annual output of over 200,000 ounces.”

Project timeline and impact

Gift Mapakame, General Manager of Shamva Mine, confirmed that site works are expected to commence in September 2026, with mainstream construction starting toward the end of the year. The project is scheduled for commissioning in 2028, following a 24-month construction period.

“Shamva Mine’s production is going to grow by about 264%. We’re basically going to move from a production platform of 0.8 tonnes per year to about 2.4 tonnes – an increment of 6% contributing to national gold production, which is quite huge,” Mapakame said.

The broader expansion programme will see Mutapa Gold’s monthly production rise from approximately 300 kilograms to 570 kilograms by 2029. The breakdown includes:

• Shamva Hill: 66kg to 200kg per month
• Freda Rebecca: 204kg to 270kg per month
• Jena Mine: 44kg to 100kg per month

Community benefits

Mapakame emphasised that the project will deliver significant community infrastructure, including bulk water and power supply designed to serve both the mine and surrounding communities.

“The biggest benefactors of this project will be the community,” he said. “The project will come with bulk infrastructure that will not only cater for Shamva but will be able to cater for communities at large. We are having discussions with ZINWA and ZETDC to ensure we’ve got built-in capacity that communities will tap into.”

The project is expected to create approximately 1,800 jobs, including contractors and plant operators.

Billion-dollar ambition

Matute drew parallels with Zimbabwe’s largest corporates, saying the country could soon count Mutapa Gold among its billion-dollar revenue businesses.

“I think in Africa there are just about 365 businesses that have revenues of over a billion, and in Zimbabwe you can count about four – Innscor, Delta, Zimplats and, lately, Econet,” Matute said. “But I believe in two years we’ll be adding Mutapa Gold to that list. Owned here, mined here, financed here – all Zimbabwe.”

Corporate Social Responsibility (CSR) in Zimbabwe’s mining sector remains a contentious issue for all parties involved. Host communities argue that they are not receiving fair value for the social and environmental costs they bear from mining operations. Meanwhile, mining companies express frustration about being treated as bottomless funding sources by various actors pursuing political or other agendas. The central question everyone is asking is simple but critical: where should CSR start, and where should it stop?

By Alexandra Tokozile Mliswa

The Mining Paradox

The National Development Strategy (NDS) 1 and 2 rightfully prioritise mining, considering the sector generates 75% of national exports. Yet, despite these impressive figures, the communities hosting mining operations, and the nation at large, have seen limited tangible development benefits. This disconnect points to a systemic problem that demands a structured solution.

A Framework Already Exists—We Just Need to Use It

Rather than reinventing the proverbial wheel, we should leverage existing legislative foundations. The Finance Act [Chapter 23:04], Section 22P (as amended by Act No. 7 of 2025), already requires mining companies to pay a levy equivalent to 3% of the gross value of coal, lithium, quarry stone, black granite, and dimensional stone.

Here’s where things get fuzzy: the Finance Act doesn’t explicitly state that this levy is for CSR—and that’s a problem. However, the intent has been signalled through official channels. ZIMRA’s Public Notice 09 of 2024 (issued on January 24, 2024) specifies that “the levy will be ring-fenced for community development.” More recently, in November 2025, the Minister of Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube, explicitly branded this as a “Corporate Social Responsibility levy” and emphasised mining companies’ obligation to pay it.

The Critical Questions

So, we have a CSR fund in place, yet communities continue to struggle. The immediate question becomes unavoidable: where has this 3% levy actually gone? Beyond that, several troubling questions remain unanswered:

• Is there a formal record of collected funds?
• Which companies have paid, and which haven’t?
• How are the funds allocated?
• What accountability mechanisms exist?
• Who oversees compliance?

Clear Recommendations for Moving Forward

To establish a functional, transparent CSR framework, I recommend the following three-pronged approach:

Legislative Clarity

Amend the Finance Act to explicitly state that the 3% levy is designated for CSR purposes. This eliminates ambiguity and prevents overlapping or conflicting legislation down the line.

Operational Detail

Introduce secondary legislation (an SI, for instance) that outlines clear application and enforcement mechanisms for the 3% levy. This creates the scaffolding necessary for consistent implementation across all mining operations.

Public Transparency (Critical)

Make the levy a matter of public record. This is non-negotiable for building community trust and ensuring accountability. Section 13(4) of Zimbabwe’s Constitution provides that:

“The State must ensure that local communities benefit from the resources in their areas.”

To that end:

Transparency Mechanisms: Making Management Open

To complement these recommendations, I propose the following transparency measures:

• Community Reporting: The relevant government department should publish annual CSR reports detailing how levy funds were deployed to host communities.
• Community Oversight Committees: Create local committees with community representation to review and approve CSR spending proposals.
• Accessible Dashboard: Develop user-friendly online platforms where stakeholders can track levy collection and disbursement in real time.

Unless we embed these accountability mechanisms, the CSR landscape will continue to face the same problems. The solution lies in openness—a framework where every monetary stream is visible to all interested parties.

Caledonia Mining Corporation Plc has unveiled a transformative exploration discovery at its Blanket Mine in Zimbabwe, with surface drilling confirming a previously unrecognised gold zone that could fundamentally reshape the mine’s production profile and add substantial value through low-cost processing, Mining Zimbabwe can report.

By Rudairo Mapuranga

The discovery at the K-Pits target, located within the existing mining lease approximately 200 metres east of the nearest projected underground orebody, represents a potential new mineralised horizon that has never been exploited by historic underground mining operations. This is not merely a resource extension—it is an entirely separate mineralised system with significant implications for both near-term production and long-term exploration upside.

The exploration programme, comprising 2,304.1 metres of trenching from 13 trenches and 7,063 metres of shallow reverse circulation drilling across 155 holes, has successfully defined continuous near-surface mineralisation with compelling grades.

Selected drilling highlights demonstrate the consistency and quality of the mineralisation. Hole KPT0EX2553 returned an oxide intersection of 23.00 metres at 2.61 grams per tonne from surface, representing one of the more extensive near-surface zones identified. Hole KPT0EX2545 delivered 15.00 metres at 1.69 grams per tonne from surface in oxide material, with a further 4.00 metres at 2.08 grams per tonne in transitional mineralisation immediately below. Hole KPT0EX2567 produced 20.00 metres at 1.22 grams per tonne from 19 metres downhole in transitional material, while Hole KPT0EX25124 returned 12.00 metres at 1.20 grams per tonne from 23 metres in the transitional zone.

Sulphide mineralisation beneath the oxide cap delivered notably higher grades. Hole KPT0EX2510 returned 16.00 metres at 6.04 grams per tonne from 29 metres downhole, while Hole KPT0EX2542 yielded 7.00 metres at 5.96 grams per tonne from 13 metres. Hole KPT0EX2576 produced 5.00 metres at 3.96 grams per tonne from 40 metres downhole. All intersections reported are down-hole lengths, with estimated true widths calculated at approximately 60% to 70% of core length based on drill orientation.

“This is an exciting development at Blanket and further demonstrates the significant exploration potential that exists within the mining area. The K-Pits programme was originally designed to evaluate near-surface targets within the Blanket mining lease that had received little exploration attention. Results from trenching and reverse circulation drilling have confirmed the presence of significant gold mineralisation associated with shear structures and lithological contacts,”

Mark Learmonth, Chief Executive Officer of Caledonia Mining Corporation Plc, said.

Geological interpretation indicates the mineralisation is associated with strong shearing and silicification at the contacts of talc chlorite schist and surrounding metabasalts within the Archaean Gwanda Greenstone Belt. The vertical extent tested to date is approximately 40 metres, with further drilling planned from both surface and underground platforms to probe the system at depth.

What makes this discovery particularly significant for investors is the dual-track value proposition it presents.

Near-term oxide opportunity

The presence of near-surface oxide mineralisation opens the door to conventional heap leaching—a processing route with substantially lower capital and operating costs than underground mining. Metallurgical test work is already underway, with encouraging preliminary results. Management intends to commence a trial heap leach operation on an initial 10,000-tonne sample during the second half of 2026 if test work confirms acceptable recoveries.

Learmonth elaborated on the processing strategy:

“We have commenced metallurgical test work on the oxide material at Blanket to evaluate its amenability for conventional heap leaching, and the preliminary results are encouraging. If the conclusion of the test work shows an acceptable recovery, we intend to commence a trial heap leach operation on an initial sample of 10,000 tonnes of material during the second half of 2026. The potential to develop a low-cost processing route for this near-surface mineralisation could provide an attractive opportunity to complement Blanket’s existing underground operations and unlock additional value.”

Long-term sulphide potential

Below the oxide zone, the mineralisation extends into fresh sulphides with significantly higher grades, including 6.04 grams per tonne over 16 metres, suggesting a potentially larger mineralised system at depth. This could support conventional underground development and extend the mine life beyond the current production horizon. Importantly, geological interpretation suggests the mineralisation may represent a separate mineralised system that has not been exploited by historic underground mining activities, raising the possibility of a previously unrecognised orebody approximately 200 metres east of the nearest projected underground orebody.

Operational Context: Production Recovery Gaining Momentum

The K-Pits discovery comes as Blanket Mine demonstrates strong operational recovery. The company reported 17,360 ounces of gold production in Q2 2026, an 18% increase from Q1 2026, reflecting improving access to higher-grade areas. The average grade delivered to the plant improved to 2.88 grams per tonne in Q2 2026, with July grades to date tracking at 3.05 grams per tonne—a level management expects to maintain for the remainder of the year.

Learmonth addressed the operational trajectory, stating:

“Production in Q2 2026 was 17,360 ounces, an improvement on the first quarter, reflecting continued improvement in access to higher-grade mining areas. Encouragingly, we are now seeing improved grades in deliveries of ore to the plant, indicating that the measures we have taken to restore access to higher-grade ore are gaining traction. We are now tracking a grade of approximately 3 grams per tonne, and we expect to remain at that level for the rest of the year.”

Looking ahead, production is expected to strengthen further in the second half of 2026, supported by improved access to higher-grade mining areas as the mining sequence normalises, completion of the elution plant upgrade in Q3 2026, enabling processing of stockpiled fine-grain loaded carbon from September, and implementation of a seven-day working week from June 2026, adding approximately 200 tonnes per day of additional ore processing capacity.

Full-year 2026 production guidance remains firmly at 72,000 to 76,500 ounces, with output expected to be weighted towards the second half.

Learmonth reaffirmed the company’s confidence in its outlook:

“With the introduction of a seven-day working week and the completion of the elution plant upgrade due in the third quarter of 2026, we expect production to further increase in the second half of the year, in line with our guidance. We therefore remain confident in our full-year production guidance for 2026.”

Resource Update and Investment Thesis

Caledonia expects to publish an updated mineral resource statement in August 2026, incorporating the K-Pits surface exploration results alongside recent underground drilling and the Motapa exploration programme, where encouraging initial drilling results were also recently announced.

For investors, the combination of operational recovery at Blanket with improving grades, a near-term oxide processing opportunity through low-cost heap leaching, significant exploration upside from a previously unrecognised mineralised system, and an advancing development portfolio, including Bilboes targeting first gold in late 2028, positions Caledonia as a compelling opportunity in the gold sector. The company’s ability to maintain its production guidance while simultaneously identifying new mineralised horizons within its existing mining lease highlights the exploration potential that remains within Zimbabwe’s established gold belts.

Learmonth concluded:

“We are well advanced in our work to incorporate the results of this surface exploration programme into a revised resource statement expected to be published in August 2026, which will reflect the results of surface and underground exploration at Blanket alongside the exploration programme at Motapa.”

Sandawana Mines, a subsidiary of Mutapa Energy Resources, has officially announced a JORC-certified mineral resource of 39.9 million tonnes of lithium-bearing ore, marking a significant milestone for Zimbabwe’s mining sector, Mining Zimbabwe can report.

By Rudairo Mapuranga

The announcement was made by Mutapa Energy Resources CEO Innocent Rukweza during a press briefing in Harare, where he detailed the results of an aggressive 11-month exploration programme on Block A of the mining claims.

The JORC-compliant resource, independently verified by a competent person, consists of 39.9 million tonnes of ore. Significantly, 72% of this resource—amounting to 28.7 million tonnes—is classified as measured and indicated, representing the highest level of geological certainty.

“It is my singular honour to announce that we are the first Zimbabwean mine with measured resources constituting 72% of our total resource,” said Rukweza. “Most mines are way below that. It passes the test because it was measured by a competent person, and it means that it becomes bankable.”

The remaining 8 million tonnes is classified as inferred. The resource has an average grade of 1.39% lithium oxide (Li₂O), with the highest-grade sample recorded at 5.7% and a cut-off grade of 0.4%.

Extensive Exploration Programme

The exploration on Block A Phase 1 involved 103,000 metres of drilling across 570 holes, with 33,000 samples collected and tested. The exercise cost US$24 million.

Dr Brighton Bumira, Head of Geology and Projects at Mutapa Energy Resources, explained the exploration methodology:

“We did mapping to identify rocks and minerals on the surface, then trenching up to one metre before planning the 570 holes targeting different elevations. We used Datamine software and ordinary kriging methodology for resource estimation, with SWATH validation confirming our numbers.”

70% of Claims Unexplored

The Sandawana mining claims cover 3,800 hectares divided into three blocks: Block A, Block B, and Block C. Notably, the current results relate exclusively to Block A, which constitutes only 30% of the total mining claims.

“The remaining 70%—Block B and Block C—has not yet been explored. We are currently conducting geochemical and geophysical analyses on those areas, with initial results expected soon,” Rukweza stated.

Investment and Infrastructure

Mutapa Energy Resources is advancing plans to establish a 3 million-tonnes-per-annum concentrator plant, with construction expected to begin by June 2026. The plant will take approximately 18 to 24 months to complete.

The total investment required for Block A development is estimated at US$700 million, broken down as follows:

• Concentrator plant and infrastructure: US$300 million
• Sulphate plant for battery-grade lithium production: US$400 million

To date, the mine has mined 2 million tonnes of ore, with more than 600,000 tonnes stockpiled for processing.

Additional Minerals Present

The resource contains six elements alongside lithium, of which only tantalum and niobium can be economically extracted. These elements occur in small quantities measured in parts per million (ppm) rather than percentages. Other elements, including caesium and beryllium, occur in uneconomical quantities.

Future Exploration Plans

The company has outlined an aggressive exploration roadmap:

• Phase 2 (Block A): Additional 23,500 metres of drilling, 8,500 samples, US$6 million cost
• Phase 3 (Block A upgrade): 70,000 metres of drilling, 30,500 samples, US$12 million cost

The company aims to upgrade the resource from 39.9 million tonnes to 90 million tonnes on Block A alone. Vice President Dr Constantino Chiwenga recently indicated that exposed reserves currently stand at 39 million tonnes, with the full concession potentially hosting up to 600 million tonnes of lithium resources.

The development aligns with Zimbabwe’s National Development Strategy 2 (NDS2) and the planned 2027 ban on lithium concentrate exports, as the country pushes for beneficiation and value addition.

“We are committed to value addition. In conjunction with NDS2, there is going to be a ban around 2027 on the export of concentrates. We have started receiving interest from partners who can assist us in setting up lithium sulphate plants,” Rukweza confirmed.

Accredited facility to enhance assay accuracy, reduce exploration costs, and strengthen gold sector credibility

BINDURA – Freda Rebecca Gold Mine is constructing a new US$1.2 million laboratory facility as part of a broader strategy to enhance technical competence and operational efficiency, following the achievement of ISO/IEC 17025 accreditation for its existing laboratory.

By Rudairo Mapuranga

The investment, comprising US$1 million for the building and US$200,000 for accessories, will feature a Laboratory Information Management System (LIMS) to further improve data integrity and predictability. The new facility is expected to be operational within the coming months.

“We have actually started building a new lab,” said Alfred Chinyere, General Manager of Freda Rebecca Gold Mine. “This is going to cost us a million US dollars. With accessories, it’s going to be around 1.2 million.”

First accredited gold mine laboratory

The mine became Zimbabwe’s first gold mining operation to achieve ISO/IEC 17025 accreditation when SADCAS officially handed over the certificate on 21 July 2026. The accreditation, valid for five years until 15 March 2031, covers chemical analysis—the core function that determines ore grades, guides exploration decisions, supports mine planning, and validates bullion for commercial transactions.

SADCAS CEO Dr Eve Gadzikwa, who personally handed over the certificate, noted that as of 31 May 2026, SADCAS had issued 442 certificates of accreditation to 365 facilities across the region, including five certificates beyond the SADC region.

“This achievement is particularly important in a mining environment because the lab is the brain of the mine,” said Sibongile Maphosa, Human Resources Manager at Freda Rebecca. “The accuracy and reliability of assay results influence all our processes—from exploration to plant performance and critical decision-making.”

Strategic importance

The accreditation and new laboratory investment align with the Government’s broader strategy to build domestic analytical capacity and reduce reliance on foreign testing facilities. In April 2026, Cabinet approved a Minerals Value Chain framework that includes a National Minerals Research and Analytical Scientific Laboratory Infrastructure pillar, aimed at ending “costly and risky reliance on foreign laboratories for mineral certification.”

Patrick Maseva-Shayawabaya, CEO of Mutapa Gold Resources, which owns Freda Rebecca, emphasised the commercial significance:

“Reliable internal testing will reduce the delays associated with repeat testing, uncertainty, disputes over results, and over-dependence on external verification. With the aggressive exploration drive that we are on, this certification will enable us to better manage and therefore reduce our exploration costs.”

Operational impact

The new laboratory will support Freda Rebecca’s ambitious exploration programme, which has tripled expenditure to nearly US$8 million this year. The mine is drilling 46,000 metres as part of a programme aimed at extending the mine’s life from its current four years to at least 10 years.

Chinyere said the transition of the accreditation certificate to the new laboratory would showcase further improvements in analytical capability.

“My hope is that the next time we also get that lab, the transition of that certificate to the new lab, there should be something very good to showcase. And then we are expecting that there will be better results.”

National context

The investment comes as Zimbabwe intensifies efforts to increase gold production to support its gold-backed currency, the ZiG. Mutapa Gold Resources, which contributes about 70% of Freda Rebecca’s output, is targeting to increase monthly gold production from the current 300–310 kilograms to between 570 and 600 kilograms by the end of 2026 and into the first half of 2027.

The company has already secured US$125 million from a syndicate of local banks for expansion projects at Shamva and Jena mines, with the new laboratory investment forming part of Freda Rebecca’s broader operational improvement programme.

A Chinese national accused of misappropriating US$3.65 million from a Zimbabwean lithium company has been denied bail after a Harare magistrate ruled that he posed a flight risk, Mining Zimbabwe can report.

Li Shigang (58), of Borrowdale, Harare, appeared before Harare Magistrate Mrs Jesse Kufa, who denied him bail on the grounds that he is facing a serious offence and has a propensity to abscond from trial.

The matter was remanded to July 29 to allow for the finalisation of investigations.

According to the State, the complainant is Chen Dehu (57), a director of San Ding Lithium (Private) Limited, who resides at Golden Peacock Villa in Borrowdale.

Prosecutor Lawrence Gangarahwe told the court that Li joined San Ding Lithium in 2022 as the company’s Chief Finance Officer and Commercial Manager.

The State alleges that, by virtue of his position, Li exercised full control over the company’s financial affairs, including the collection and disbursement of funds, financial supervision, commercial settlements, payment approvals and overall management of the company’s finances.

Court papers state that on October 12, 2022, Li invested US$630,000 of his own funds into the company, after which he was granted access to its financial systems.

During his tenure, the company is alleged to have accumulated capital exceeding US$3.65 million.

However, prosecutors allege that Li, acting in connivance with an alleged accomplice, Zhu Guozhonga, diverted company funds without the knowledge or approval of the complainant or other company directors.

The State alleges the pair used forged receipts and invoices to conceal the transactions before converting funds intended for company operations to their personal use, resulting in the suspension of the company’s activities.

In addition to the alleged financial misappropriation, prosecutors claim the accused also disposed of two company-owned Toyota Hilux double-cab vehicles and converted the proceeds for personal benefit.

The court further heard that in January 2024, Li and his alleged accomplice resigned from the company without completing formal handover procedures or surrendering key financial documents, including accounting records, reconciliation reports and company books.

According to the State, Li was intercepted by the complainant and another employee, Chen Xingmei, while allegedly attempting to remove company financial records from the company’s premises during his resignation.

Despite repeated attempts by the complainant to recover the records and resolve the matter, Li allegedly failed to cooperate or account for the missing funds.

The State maintains that the total prejudice amounts to US$3.65 million, with nothing recovered to date.

The allegations remain before the court, and Li has not yet been required to plead. Under Zimbabwean law, an accused person is presumed innocent until proven guilty in a court of law.