Mining ZimbabweLatest Mining News, Policy and Industry Updates

Zimbabwe is aiming to finalise the long-awaited Petroleum Production Sharing Agreement (PPSA) with Australian oil and gas explorer Invictus Energy by the end of 2026, according to Pfungwa Kunaka, the Permanent Secretary in the Ministry of Mines and Mining Development.

By Rudairo Maparanga

Speaking at a high-level workshop on energy minerals hosted by ActionAid Zimbabwe, Kunaka acknowledged that the agreement—a critical legal and fiscal framework governing how future oil and gas revenues will be shared between the government and Invictus—has been in negotiation for an extended period due to its complexity and significant international interest in its provisions.

“It has taken time because it is a legal document. There is very much international interest in what it contains,” Kunaka said. “We forecast by the end of 2026, we will have completed the PPSA.”

The timeline extension reflects the intricate nature of crafting a framework that must satisfy both domestic development objectives and the expectations of global investors.

“The investor wants it to be structured in a way that attracts investment,” he added, underscoring the PPSA’s role as the essential precondition for Invictus to secure the substantial financing required to move from exploration to commercial production at its Cabora Bassa Project in Muzarabani District.

What is a PPSA and Why Does It Matter?

A Petroleum Production Sharing Agreement is a legally binding contract between a government and an oil and gas company that outlines the terms under which the company can explore for and produce hydrocarbons. Unlike a simple tax-and-royalty system, a PPSA typically allows the government to receive a share of the actual oil and gas produced, rather than just taxes on profits.

For Zimbabwe, this structure serves multiple strategic purposes. It demonstrates responsibility by both the mining company and the government in managing national resources. It provides investment incentives by creating a transparent, predictable framework that international investors require before committing capital. Crucially, it ensures national benefits flow directly to Zimbabwe once commercial extraction begins.

The PPSA negotiations between Invictus Energy and the Zimbabwean government have been years in the making. The agreement is essential for Invictus to advance its Cabora Bassa Project, which has already recorded significant exploration success, including discoveries at the Mukuyu gas field.

In March 2025, the government and Invictus reached a landmark decision to consolidate two separate agreements—the Petroleum Production Sharing Agreement and the Petroleum Exploration Development and Production Agreement (PEDPA)—into a single, unified legal framework. This consolidation was designed to streamline approval processes, reduce bureaucratic duplication, and provide long-term regulatory clarity.

Scott Macmillan, Invictus Energy’s Managing Director, explained at the time that the unified agreement would provide “a clearer path forward and reflect the shared commitment to enabling a successful development.”

By late 2025, Invictus announced that the PPSA process had been finalised, with formal execution originally expected in January 2026. However, that timeline has since shifted.

Progress on the PPSA has continued despite a significant setback for the company. In late 2025, its proposed strategic partnership with Qatari investment group Al Mansour Holdings collapsed. The failed deal, which would have injected up to US$500 million into Invictus and potentially handed the Qatari firm and other investors a 50% stake, wiped approximately US$89.81 million off the company’s market value.

Earlier, in August 2025, Al Mansour Holdings had acquired a 19.9% stake in Invictus and pledged up to US$500 million in conditional funding—a deal that had sent Invictus shares surging and more than doubled the company’s market value. The collapse of that partnership added further complexity to the negotiations.

Kunaka’s confirmation that the PPSA is now expected by the end of 2026 represents a significant extension from earlier forecasts. In February 2026, multiple media reports indicated that execution was expected by the end of the first quarter of 2026. The African Energy Chamber reported in December 2025 that formal execution was anticipated in January 2026 following the successful completion of the PPSA process.

The extended timeline reflects the detailed work required to finalise a document that will govern one of Zimbabwe’s most significant energy projects for decades to come. Independent estimates suggest the Mukuyu gas field alone could hold up to 20 trillion cubic feet of gas and 845 million barrels of conventional gas condensate, placing it among the most significant sub-Saharan African discoveries in recent years. In addition, the basin hosts light oil and commercially attractive helium concentrations, further enhancing its strategic value.

What the PPSA Contains

While the final terms remain confidential until execution, Invictus has previously disclosed key elements of the draft agreement. According to Macmillan, the PPSA includes a product and profit petroleum split between Zimbabwe and the company that aligns with regional standards, ensuring Zimbabwe receives a fair share of its resources.

The agreement also provides fiscal and non-fiscal incentives essential for importing specialised equipment, services, and personnel required for drilling and development activities. It establishes an internationally competitive legal and commercial structure designed to attract foreign direct investment.

Some reports indicate that the government’s share could be as high as 40% of production, with the Mutapa Investment Fund—holding a 10% partnership in the project—managing the state’s interest.

The Cabora Bassa Project has already been granted National Project Status by the Zimbabwean government, a designation that provides fiscal incentives, duty exemptions on imported equipment, priority access to infrastructure, and expedited permitting. This status recognises the project’s potential to deliver national economic impact, employment creation, and energy security.

Once the PPSA is finalised, it is expected to unlock the next phase of work, including appraisal activities at the Mukuyu Gas Field and the drilling of the Musuma-1 exploration well, targeted for the first half of 2026.

“Musuma-1 is the first high-impact exploration well to be drilled outside the Mukuyu gas-condensate discovery area,” Invictus has stated. Success at Musuma-1 could unlock a substantial new resource base in addition to the proven Mukuyu Gas Field.

Early gas monetisation plans are already being considered, including a proposed gas-to-power project for the Eureka Gold Mine, illustrating how Cabora Bassa gas could be leveraged to deliver immediate domestic benefits once production begins.

Kunaka confirmed that the focus across key government institutions—including the Mutapa Investment Fund, the Ministry of Mines, and the Ministry of Finance—is to conclude the PPSA. This coordinated approach reflects the strategic importance of the agreement for Zimbabwe’s energy future and its ambitions to attract large-scale foreign investment into the sector.

With Invictus having already invested approximately US$90 million in exploration activities in Zimbabwe, the finalisation of the PPSA represents the last major piece of the regulatory puzzle required to transition the Cabora Bassa Project from exploration to commercial development.

The African Energy Chamber has welcomed the progress, describing the completion of the PPSA process as a “landmark moment for Zimbabwe and for African energy more broadly.”

“It shows that when governments put in place clear policy, transparent regulation, and competitive fiscal terms, Africa can unlock its resources and attract investment at scale,” the Chamber stated.

For Zimbabwe, the coming months will test whether the extended timeline can finally deliver the certainty investors require. For Invictus, the PPSA remains the key that unlocks the next chapter of the Cabora Bassa story. And for the nation, the promise of energy security, foreign investment, and a share of substantial resource wealth hangs in the balance.

Kavango Resources plc has raised approximately US$8.4 million through parallel subscriptions in the United Kingdom and Zimbabwe, funds that will accelerate the expansion of its gold production footprint in Zimbabwe, Mining Zimbabwe can report.

By Rudairo Mapuranga

The Southern Africa-focused metals exploration and gold production company announced on 6 March that it secured about US$4.7 million from investors on the Victoria Falls Stock Exchange (VFEX) and £2.8 million (approximately US$3.7 million) from the UK subscription, both at a price of £0.01 per share.

The pricing represents a significant vote of confidence in the company’s Zimbabwe strategy, coming in at approximately a 33% premium to the mid-market price recorded on 5 March 2026. A total of 629,991,138 new ordinary shares will be issued under the two subscription tranches.

In a move signalling strong internal confidence, Chairman and Interim Chief Executive Officer Peter Wynter Bee personally participated in the UK leg of the fundraising, subscribing for 20 million shares at the same price.

Wynter Bee brings extensive Zimbabwean mining experience, having previously worked on developing mines in the country, including his tenure at Reunion Mining plc, which developed operations in Zimbabwe and Zambia before being acquired by Anglo American in 1999. His participation is viewed by market observers as a strong signal of management’s alignment with shareholder interests.

The company has applied for the newly issued UK shares to be admitted to trading on the Main Market of the London Stock Exchange. For the VFEX shares, a two-step process will see them first admitted to trading on the LSE before being transferred to Zimbabwe through a branch register control account, enabling direct listing and trading on the VFEX.

Both admissions are expected to become effective, with trading set to commence at 8:00 a.m. on or around 16 March 2026.

US$13.5 Million War Chest for Zimbabwe Growth

The fresh capital injection significantly strengthens Kavango’s financial position. When combined with existing cash resources and previously committed funds, the company now has approximately US$13.5 million available for deployment across its Zimbabwean portfolio.

According to the company, proceeds will be used for:

• Expansion of the Hillside gold production
• Acquisition of the Nara Gold Project
• Associated legal and transaction costs
• Further exploration activities
• General working capital

The Hillside Gold Project, located in the Filabusi Greenstone Belt in Matabeleland South, remains Kavango’s flagship asset. The project includes multiple gold prospects such as Bill’s Luck, Nightshift, Britain, and Steenbok, where exploration has confirmed mineralised structures suitable for both open-pit and underground mining.

Currently, the project is producing approximately 2 kilogrammes of gold per month from small-scale operations. The company plans to scale up production through expanded mining and processing infrastructure, supported by the new funding.

The fundraising also supports the planned acquisition of the Nara Gold Project, which comprises approximately 45 contiguous gold claims near Bulawayo in Matabeleland South. Funds have been allocated for both the acquisition and any related legal processes.

Strong Timing Amid Gold Market Momentum

The successful capital raise comes at a strategic time for gold-focused miners. Gold remains one of Zimbabwe’s most important minerals, accounting for the largest share of mineral exports and serving as a key source of foreign currency.

Zimbabwe’s gold sector recorded a strong performance in 2025, with 44.7 tonnes valued at US$4.8 billion exported. With global bullion prices remaining near historic highs, investor appetite for gold exposure continues to grow.

Kavango’s ability to secure funding from both local and international investors is particularly notable given the challenging financing environment facing junior miners globally, characterised by tightening credit conditions and volatile commodity markets.

Growing Confidence in Zimbabwe Mining

Kavango’s fundraising reflects broader momentum in Zimbabwe’s mining investment landscape. While its projects remain at early production stages, other international players, including Caledonia Mining Corporation and Namib Minerals, are advancing plans to develop new gold mines in the country.

These developments support Zimbabwe’s long-term strategy to increase mining revenues and formalise gold production, which has historically seen significant volumes channelled through informal and artisanal mining.

A quiet but profound shift is underway in Zimbabwe’s mining sector, driven by a simple yet powerful question: why are foreign investors bringing their own chief executives, finance directors, and technical managers when Zimbabwe has a deep pool of qualified professionals?

By Rudairo Maparanga

Speaking at a workshop on energy minerals co-hosted by ActionAid Zimbabwe and the Parliament of Zimbabwe, the Ministry of Mines and Mining Development Permanent Secretary, Pfungwa Kunaka, put the issue squarely on the table, declaring that the era of imported management must end if the country is to truly benefit from its mineral wealth.

“Currently, we have concerns, Chairman, that in some mining projects, they are not employing our own people at senior levels. The chief executive officers, the operating officers, and those in finance, some of them are being brought from abroad,” Kunaka told lawmakers and civil society representatives.

His remarks strike at the heart of a tension that has long simmered beneath Zimbabwe’s mining boom: high levels of foreign investment have not translated into high-level local employment. While thousands of Zimbabweans work as miners, truck drivers, and general labourers, executive positions remain largely occupied by expatriates.

“We are looking at coming up with a policy, Chairman, so that employment in those areas recognises our skills. It is an area that we want to examine very critically,” Kunaka said.

Kunaka’s concerns are not theoretical. The platinum group metals (PGM) sector provides a strong counterexample of what is possible when companies commit to localisation.

At Zimplats, Zimbabwe’s largest platinum producer, the executive management committee reflects significant local expertise. Chief Executive Officer Alexander Mhembere leads a team that includes Chief Finance Officer Patricia Zvandasara, Managing Director Dr Stanley Segula, Chief Technical Officer Amend Chiduma, Human Resources Director Takawira Maswiswi, and Corporate Affairs Head Sibusisiwe Chindove.

The same trend is evident at Mimosa Mining Company and Unki Mine. These operations demonstrate that world-class mining standards do not require imported leadership. Zimbabwean professionals can and do run complex, multi-billion-dollar operations efficiently and profitably.

“Throughout the value chain, including laboratories and technical services, these issues need to be addressed,” Kunaka added, signalling that the localisation drive extends beyond executive roles to specialised technical functions where expatriates still dominate.

The gap between investment and local employment has not gone unnoticed by industry observers. Mining economist Lyman Mlambo emphasised that localising technical services must be a priority.

“Industry needs to reduce imports of technical services and utilise local resources. This includes Environmental Impact Assessments, Social Impact Assessments, Mine Closure Plans, feasibility studies, and repair and maintenance services,” Mlambo said.

He acknowledged that building local capacity requires strengthening educational institutions.

“Employing locals requires that our educational and training institutions produce high-quality graduates who are employable at all levels. Industry and government share the responsibility to strengthen mining training institutions and review curricula to align with industry needs.”

Government is already moving in this direction. Minister of Mines and Mining Development Polite Kambamura recently announced plans to compel mining companies to take students on industrial attachment.

“Graduates and undergraduates are not finding attachment opportunities, so we are going to make it mandatory for mining companies to absorb students. We will also strengthen skills and knowledge transfer,” Kambamura said.

The Caledonia Model: 100% Local Workforce

Caledonia Mining Corporation provides another compelling example. The company reports that its entire workforce at Blanket Mine consists of Zimbabwean nationals, with 92% of its 2023 procurement sourced from Zimbabwean-owned companies.

“100% of employees at Blanket Mine are Zimbabwean. All employees are paid in U.S. dollars, and all undergo safety training,” the company said in its latest ESG report.

Caledonia’s approach demonstrates that local employment is not merely a compliance requirement but a strategic advantage that strengthens community relations and operational stability.

The demand for local employment continues to gain traction in mining communities. The Association of Junior Mining Professionals of Zimbabwe (AJMPZ), through Secretary General Hazel Karoro, has called for policies that prioritise skills transfer and local employment across the mining value chain.

Karoro emphasised the need to empower local human resources managers to make independent hiring decisions, rather than having recruitment dictated by foreign headquarters.

At a recent minerals governance dialogue in Manicaland, workers echoed similar concerns. Proud Nyakunu of the Zimbabwe Diamond and Allied Workers Union stressed the importance of policies that favour local employment and procurement.

“This creates jobs and stimulates the local economy. Meaningful community participation in decision-making processes related to mining projects is essential,” Nyakunu said.

The ESG Dimension

Environmental, Social and Governance (ESG) considerations are increasingly shaping investor expectations around local employment and community benefit. Namib Minerals recently highlighted its community investments at How Mine, including staff housing, a school block, and healthcare support.

These initiatives reinforce the importance of strong community relationships in de-risking mining operations and ensuring long-term sustainability.

Kunaka’s intervention signals that government is preparing to move from concern to action. A policy framework that promotes local employment at senior levels, strengthens skills transfer, and ensures Zimbabweans occupy decision-making roles across the mining value chain is now under consideration.

The PGM sector has shown it can be done. Caledonia has shown it can be done. The question remains: why should every mining investor in Zimbabwe not meet the same standard?

“When you look at the ban, these are the opportunities it will create,” Kunaka said, linking export restrictions to a broader vision of a mining sector that delivers not only revenue, but also skills, jobs, and industrial capacity.

The implementation of that vision, he acknowledged, will be critical. But the direction is clear: investment without meaningful local participation at senior levels is no longer sufficient. Zimbabweans must benefit—not only as labourers, but as leaders.

Police in Zimbabwe have arrested a foreign national in connection with an alleged US$1.5 million mining investment fraud, as authorities intensify efforts to curb financial crimes and illegal mineral activities in the sector.

According to a press statement issued by the Zimbabwe Republic Police, the suspect is linked to a case involving fraud and the externalisation of funds in which another foreign investor was allegedly duped of US$1.5 million in a mining investment deal.

The suspect was arrested on 14 March 2026 at the Norton Tollgate while travelling in a black Lexus SUV with three other individuals. During a search of the vehicle, police reportedly recovered prepared dagga, leading to an additional charge of unlawful possession.

Authorities later searched the suspect’s residence in Borrowdale, an affluent suburb of Harare. The operation resulted in the recovery of approximately 10 grammes of suspected gold nuggets.

Police indicated that investigations are ongoing to determine whether the suspect possessed the necessary permit for holding the recovered gold.

The Zimbabwe Republic Police urged members of the public, particularly investors, to exercise caution when entering into mining transactions.

“Investors are encouraged to conduct thorough due diligence and verify ownership of mining claims with the relevant authorities before committing funds,” the police said in the statement.

Diversified mining group RioZim Limited has lost its mining special grant for the Sengwa coalfields after the Government cancelled the licence under its “use-it-or-lose-it” policy, marking the latest setback for the struggling miner, Mining Zimbabwe can report.

By Ryan Chigoche

The development comes as the company continues to grapple with financial pressures and legal challenges that have weighed on its operations in recent months, effectively stripping it of control over one of Zimbabwe’s largest undeveloped coal resources.

The decision follows an unsuccessful appeal by the Zimbabwe Stock Exchange-listed company against the revocation of its coal mining rights for the Sengwa Colliery, a project that has remained undeveloped for decades.

In a letter addressed to RioZim director Wilson Gwatiringa, the Permanent Secretary in the Ministry of Mines and Mining Development, Pfungwa Kunaka, confirmed that the appeal against the cancellation had been dismissed.

“Following the cancellation of your coal mining Special Grant Number 849 (Sengwa Colliery) and your subsequent appeal against the proposed cancellation, please be advised that the appeal was unsuccessful,” Kunaka wrote.

“By notice of this letter, Special Grant Number 849 is hereby cancelled with immediate effect in terms of the provisions of the Mines and Minerals Act [Chapter 21:05].”

The Sengwa coalfields, located in Midlands Province, Zimbabwe, are estimated to hold around 1.3 billion tonnes of coal, making them one of the country’s largest undeveloped coal resources.

RioZim had planned to develop the deposit alongside a large-scale 2,800-megawatt coal-fired thermal power station, a project valued at about US$3 billion and intended to help address the country’s electricity shortages.

However, the project failed to reach financial closure despite several attempts over the years to attract investment.

The Sengwa concession was historically held under a joint venture between RioZim Limited and global mining group Rio Tinto, with both companies sharing the asset equally. Since the early 1990s, RioZim has been searching for investors to finance the power project, but without success.

In an effort to revive the development, the company later proposed restructuring the project into four phases of 700 megawatts each, a model aimed at reducing upfront capital requirements. However, limited funding and the absence of a bankable power purchase agreement prevented the project from progressing.

The Government’s decision to cancel the licence suggests the authorities may now seek to allocate the Sengwa coal resource to new investors capable of developing the asset.

The move is consistent with Zimbabwe’s “use-it-or-lose-it” policy, which allows the State to reclaim mining concessions that remain undeveloped for extended periods.

Meanwhile, concerns have emerged regarding disclosure obligations, as RioZim is yet to issue a cautionary statement to investors regarding the loss of the Sengwa concession.

Under the listing rules of the Zimbabwe Stock Exchange, listed companies are required to notify the market of any material developments that could affect their asset base or share price.

The development comes at a time when RioZim is already facing mounting operational and financial pressures.

In recent months, the company has been dealing with a corporate rescue push initiated by mine workers. The legal challenge has added further uncertainty around the future of the group’s assets and restructuring plans.

The dispute recently forced the miner to halt a planned US$21 million sale of some of its mining operations after a court setback linked to the ongoing corporate rescue proceedings.

With the loss of the Sengwa coal concession and the ongoing legal battles, RioZim’s path to recovery is likely to remain closely watched by investors and the mining sector.