Mining ZimbabweLatest Mining News, Policy and Industry Updates

Kamativi Mining Company (KMC) has urged policymakers to take individual mine economics and resource life into account when implementing Zimbabwe’s beneficiation policies, warning that ambitious processing requirements must be matched by the geological realities of each operation, Mining Zimbabwe can report.

By Rudairo Mapuranga

KMC Chief Operating Officer Turkey Liang made the remarks while appearing before the Parliamentary Portfolio Committee on Mines and Mining Development, chaired by Hon. Remigious Matangira, during the committee’s fact-finding visit to the company’s Kamativi operation.

Liang said KMC fully supports the Government’s drive to end the export of unprocessed minerals and increase value addition, but cautioned that mines do not have identical resource profiles and therefore may not have the same capacity to sustain large-scale processing investments.

“We fully understand and firmly support the policy direction,” Liang said, “but a decision should be made first of all on the basis of a comprehensive study of each mine’s resource position.”

The comments highlight a key challenge facing Zimbabwe’s beneficiation strategy: ensuring that mandatory local processing creates sustainable value without imposing investments that may be difficult to justify over the life of a particular mineral resource.

Kamativi’s geological profile is central to the company’s concerns.

The former tin mine, which ceased production in 1994 after 58 years of operation, has since been revived as a lithium operation. KMC’s current mining plan faces a high stripping ratio and increasingly limited surface resources, with Liang telling the committee that open-pit reserves are expected to support approximately five years of mining.

He said the broader lithium resource at the current mining depths could support operations for about 10 years, after which further extraction would become more technically challenging and potentially require underground mining.

The distinction is important for a company investing heavily in downstream processing. A processing plant requires a reliable supply of feedstock over a sufficiently long period to justify its capital cost.

KMC’s resource estimate, updated in May 2024, places its indicated mineral resource at about 24.2 million tonnes grading 1.25 per cent Li₂O. The company has been developing additional processing capacity as it seeks to capture more value from the resource.

Despite the resource concerns, KMC is moving ahead with major downstream investments.

The company is developing a lithium sulphate project with an investment of about US$200 million. The project is designed to process spodumene concentrate into lithium sulphate, with planned production of about 75,000 tonnes a year and commissioning targeted for July 2027.

The development is part of Zimbabwe’s broader push to move beyond the export of lithium concentrates and capture more value domestically. KMC’s project has also been cited as an example of the country’s drive to establish a local lithium processing chain.

For KMC, however, the question is not whether beneficiation should take place, but how the policy can be implemented in a way that reflects the realities of individual mining operations.

KMC is also pursuing further recovery of minerals contained in its pegmatite resource.

The company is developing a Tin-Niobium-Tantalum Separation Project as well as an Amblygonite Concentrate Separation Project. An additional tin, niobium, and tantalum recovery system is scheduled for commissioning in September 2026.

The projects are intended to improve recovery of minerals beyond lithium and potentially increase the economic value extracted from the same resource.

The Initiative for Responsible Mining Assurance has also identified KMC’s proposed lithium sulphate, tin-tantalum-niobium recovery, and amblygonite separation projects as part of its assessment of the Kamativi operation.

Alongside geological constraints, Liang told the committee that regulatory and administrative delays have created operational difficulties.

He cited changes in Zimbabwe Revenue Authority (ZIMRA) export documentation requirements, saying a shift from a system allowing one document to cover up to 50 trucks to a requirement for individual paperwork for each truck created significant delays.

The problem was particularly severe where officials lacked sufficient personnel and printing capacity to process the increased volume of documentation.

“In March this year, because of this policy change, we were running out of cash and planning to reduce production,” Liang said.

ZIMRA has since reverted to the previous 50-truck arrangement, according to Liang.

The episode illustrates another challenge for mining companies investing in capital-intensive processing projects: while geological and market risks are inherent to mining, sudden administrative changes can also affect cash flow and production decisions.

Zimbabwe’s beneficiation drive is designed to retain more mineral value inside the country by encouraging or requiring producers to establish domestic processing capacity. The lithium sector has already committed significant capital to processing projects, with KMC among the companies developing lithium sulphate capacity.

KMC’s experience, however, suggests that the success of the policy will depend not only on the construction of processing plants but also on whether those facilities have sufficient and economically viable mineral feedstock over their operating lives.

For policymakers, that creates a delicate balance: pushing miners towards higher levels of value addition while ensuring that investment decisions remain commercially and geologically sustainable.

Liang’s message to Parliament was therefore not a rejection of beneficiation, but a call for a more tailored approach — one that considers the size, grade, mine life, extraction method, and economics of individual mineral deposits before determining the scale and pace of downstream investment.

Zimbabwe’s gold delivery figures for July 2026 recorded significant contractions, with total deliveries falling by 26.5% month-on-month and 17.3% year-on-year, according to data released by Fidelity Gold Refinery, Mining Zimbabwe can report.

By Rudairo Mapuranga

The total gold deliveries for July 2026 stood at 3,536.1364 kilograms, a sharp decline from the 4,810.0673 kilograms delivered in June 2026. This also represents a notable drop from the 4,274.3736 kilograms recorded in July 2025.

The decline was driven predominantly by a steep fall in deliveries from the Artisanal and Small-Scale Mining (ASM) sector, which has been the backbone of Zimbabwe’s recent production boom.

Large-scale miners delivered 1,188.5547 kilograms in July 2026. This represents a 3.4% month-on-month decline from the 1,229.7934 kilograms delivered in June 2026.

However, the year-on-year comparison paints a more resilient picture. Deliveries in July 2026 were 10.6% higher than the 1,074.5348 kilograms recorded in July 2025, underscoring the positive trajectory of major mining houses despite recent monthly volatility.

The ASM sector, which has been driving record national output, suffered the most significant decline. Deliveries from small-scale producers plummeted to 2,347.5817 kilograms in July 2026, a 34.4% month-on-month decline from June 2026’s robust 3,580.2739 kilograms.

Compared to July 2025, when small-scale deliveries stood at 3,199.8388 kilograms, the sector recorded a 26.6% year-on-year decline. This sudden drop raises questions about operational continuity, weather patterns, or potential policy shifts affecting informal miners.

The July 2026 figures mark a departure from the strong growth narrative that defined 2025, when national output reached a record 46.7 tonnes. The 26.5% monthly decline is the steepest in recent months and comes at a time when authorities had been targeting 55 tonnes for the full year 2026.

The small-scale sector’s volatility remains a persistent challenge. While formalisation initiatives and the introduction of the ZMF-FGR Gold Card were expected to stabilise deliveries, the 34.4% monthly drop suggests that structural issues—such as access to finance, equipment shortages, or seasonal factors—may still be hindering consistent output.

On the positive side, large-scale mining continues to demonstrate resilience with 10.6% year-on-year growth, reinforcing confidence in major projects like Caledonia Mining’s Bilboes development and Namib Minerals’ Redwing restart, which are expected to boost industrial production in the coming years.

Despite the July slump, Zimbabwe’s gold sector remains on a long-term growth trajectory. The government’s commitment to accumulating physical gold reserves—now at 4.4 tonnes and backed by over US$1.4 billion—provides a monetary anchor that cushions short-term production fluctuations.

However, reversing the decline in ASM deliveries will require urgent attention. Industry stakeholders have called for accelerated implementation of the ASGM Strategy, improved access to mechanisation, and faster processing of mining claims to sustain the formalisation momentum that delivered 34.9 tonnes from the sector in 2025.

With large-scale projects coming online and small-scale formalisation expected to deepen, analysts remain cautiously optimistic that Zimbabwe can still approach its ambitious 55-tonne target for 2026, provided that July’s downturn proves temporary rather than structural.

Caledonia Mining Corporation Plc Chairman July Ndlovu has purchased 21,400 common shares in the company for approximately US$492,842, increasing his beneficial interest in the Zimbabwe-focused gold producer to 250,489 shares.

By Rudairo Mapuranga

The transaction was conducted on the New York Stock Exchange on August 13, 2026, at US$23.03 per share, according to a director shareholding notification released by Caledonia on Monday.

The company said it received notification of the transaction on August 14. Ndlovu is identified in the disclosure as a Non-Executive Director and Chairman of Caledonia.

The latest purchase follows another acquisition by Ndlovu in May, when he bought 15,000 Caledonia shares at US$24.81 each. Following that transaction, his holding stood at 229,089 shares.

The latest purchase therefore represents a further increase in the chairman’s direct interest in the company, although Caledonia has not stated a reason for the acquisition in its regulatory notification.

Ndlovu’s latest share purchase comes as Caledonia continues to advance its Zimbabwe portfolio, anchored by the Blanket Gold Mine in Gwanda and the development of the Bilboes gold project.

Caledonia reported second-quarter revenue of US$75.9 million, up 16% from US$65.3 million in the same period last year, supported by higher realised gold prices.

Blanket produced 17,360 ounces during the quarter, an 18% decline from the 21,070 ounces produced in the second quarter of 2025. However, production increased 18% compared with the first quarter of 2026 as grades improved and the company gained access to higher-grade mining areas.

The company maintained its full-year Blanket production guidance of between 72,000 and 76,500 ounces and said measures to improve mine flexibility and ore availability were gaining traction.

Caledonia also expects its seven-day working week, introduced at Blanket in June, to support higher production, with the company planning to begin processing an additional 200 tonnes of ore per day from September.

The company is simultaneously advancing the Bilboes project, one of its key growth assets in Zimbabwe.

Ndlovu joined Caledonia’s board as an independent Non-Executive Director in November 2025 and became chairman following the company’s 2026 Annual General Meeting.

The latest purchase increases his shareholding at a time when Caledonia is seeking to improve production at Blanket while advancing its wider Zimbabwe growth portfolio.

The transaction itself, however, does not indicate the reason for Ndlovu’s purchase, and the company has not characterised it as an investment signal.

Caledonia is listed on the NYSE American, AIM and the Victoria Falls Stock Exchange under the ticker CMCL.

Economists have warned Zimbabwe against relying on gold, platinum group metals (PGMs) and lithium to sustain mining growth as production of several other minerals continues to decline despite strong export earnings, Mining Zimbabwe can report.

By Ryan Chigoche

The warning comes as Zimbabwe’s mining sector continues to post strong export earnings, with government figures showing mineral exports reached US$5.73 billion in the first half of 2026, driven largely by gold, PGMs and lithium.

But the strength of the headline export figures masks an uneven production picture across the sector. Data from the Ministry of Mines and Mining Development’s Research Department show chrome production fell 61.7% in the first quarter of 2026, while nickel declined 52%, copper 52.5%, cobalt 66.6% and diamond production 44% compared with the same period in 2025.

The contrasting performance is raising questions about how broad-based Zimbabwe’s mining growth really is, and whether the sector can sustain its momentum if conditions weaken in the commodities currently driving earnings.

Speaking to Mining Zimbabwe, Morgan & Co investment analyst Kudakwashe Taimo said the divergence between export receipts and production across the sector points to an increasing dependence on a small group of commodities.

“Zimbabwe’s strong mineral export earnings are encouraging, but the divergence between rising export receipts and declining production in several minerals suggests that growth is being driven more by favourable prices and a few dominant commodities, particularly gold, PGMs and lithium, than by broad-based expansion across the mining sector.”

That concentration, Taimo said, creates a vulnerability for an economy that relies heavily on mining for foreign currency.

“While this has supported foreign currency inflows, reserves and ZiG stability so far, it raises questions about the sustainability of mining-led growth if global commodity prices soften or production in the dominant minerals slows.”

The concern, therefore, is not simply about the performance of individual minerals, but about the resilience of the wider export economy. Taimo said Zimbabwe needs to use the current strength in mining to expand production across other minerals while retaining more value locally.

“To build a more resilient export economy, Zimbabwe needs to diversify both its mineral and non-mineral export base by incentivising production of other minerals, accelerating local mineral beneficiation, improving power and transport infrastructure, ensuring a predictable policy environment, and supporting value-added manufacturing and agro-processing.”

While Taimo’s focus is on broadening the country’s mineral and export base, renowned economist Eddie Cross told Mining Zimbabwe that diversification will have limited impact unless mining also feeds into wider industrial development.

“Producing and exporting minerals will not make a country rich. It might provide the vehicle for doing so, but not much more. It is industry that creates employment and value.”

That emphasis on what happens beyond the mine gate was also evident at the recently concluded Mine Entra 2026 in Bulawayo, where policymakers and industry players examined how mining can support wider economic transformation through stronger value chains, beneficiation, local supply chains and downstream industries.

For Zimbabwe, that means the diversification challenge extends beyond finding new mineral projects. It also requires building processing, manufacturing and supply industries capable of capturing more value from resources extracted locally.

The country’s push for lithium beneficiation provides one example of this shift, while similar opportunities exist across chrome, PGMs, base metals and other mineral segments.

Turning that potential into sustained industrial growth, however, will require the conditions needed to attract long-term investment.

Taimo pointed to reliable power and transport infrastructure, policy predictability and investment incentives as critical to developing new projects and expanding existing operations.

For policymakers, the challenge is to ensure that the strength of gold, PGMs and lithium becomes a platform for broader mineral development and industrialisation, rather than deepening Zimbabwe’s dependence on a narrow group of commodities.

The Parliamentary Portfolio Committee on Mines and Mining Development, led by Chairman Hon. Remigious Matangira, yesterday visited Kamativi Mining Company (KMC) as part of its ongoing fact-finding tour of Zimbabwe’s energy minerals sector.

On Friday, the Committee visited Zhongjin Heli Energy (Private) Limited, an industrial park in Hwange involved in coke production, cement production, and power generation.

The Committee also visited South Mining, a coke production facility, where they engaged with management and toured the coke production operations. These visits form part of the Committee’s broader mandate to understand the linkages between coal, coke, cement, and power production within the country’s industrial ecosystem.

The visit to Kamativi Mine comes as the lithium operation continues to expand following its revival from a former tin producer. The mine, operated through a joint venture between China’s Yahua Group and local partner Kamativi Tin Mines, represents a major success story in Zimbabwe’s mineral beneficiation drive:

• Phase I (commissioned April 2024): US$100 million investment, processing 300,000 tonnes of raw spodumene ore annually into 50,000 tonnes of concentrate, generating approximately US$50 million in yearly revenue.
• Phase II: US$149 million investment, targeting 2.3 million tonnes of ore processing capacity annually.
• New Lithium Sulphate Project: Over US$200 million invested, expected to produce 75,000 tonnes of lithium sulphate annually by July 2027.

The Kamativi investment aligns with the Government’s ban on raw lithium exports, intended to promote local beneficiation and curb leakages. The company is also developing Tin-Niobium-Tantalum recovery and Amblygonite concentration separation projects to enhance mineral recovery.

KMC currently employs 419 permanent workers and 195 security personnel, with the workforce expected to double upon completion of Phase II. The mine is also undergoing an independent IRMA responsible mining audit scheduled for October 2026.

Chairman Matangira has consistently emphasised that parliamentary oversight is a constitutional obligation, noting that visits are “not for witch-hunting” but to ensure transparency and accountability in state-linked enterprises. The Committee’s tour today includes meetings with KMC management and inspections of mine operations.

The Committee continues its fact-finding mission with further visits to Zulu Lithium and Sabi Star operations in the coming days.