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Arcadia Lithium Mine’s Goromonzi Community Development Project, spearheaded by Huayou Cobalt, has been awarded a prestigious spot in the “2025 Innovative Cases of Business for Good” at the Family Philanthropy Inheritance Exchange Conference held in China, Mining Zimbabwe can report.

By Rudairo Mapuranga

The recognition places Zimbabwe at the centre of a global conversation on inclusive mining and corporate social responsibility (CSR). Arcadia Lithium, owned by Prospect Lithium Zimbabwe (PLZ) — a subsidiary of Shanghai-listed battery metals giant Huayou Cobalt — is not only known for running one of the largest hard-rock lithium processing plants in Africa, but is also fast gaining respect for embedding community impact at the heart of its operations.

The event, hosted by the Family Culture Inheritance and Charity Trust Committee of the China Charity Federation, included Huayou Cobalt’s Goromonzi Community Development Project — which supports the community surrounding its lithium operations in Zimbabwe — among the “2025 Innovative Cases of Business for Good.”

Arcadia Lithium Mine is operated by Prospect Lithium Zimbabwe (PLZ), a subsidiary of China’s Huayou Cobalt, which acquired the mine in 2022.

Community Projects Cited for Practical Model

The recognition highlights Huayou’s approach to community support in Goromonzi, where the company is implementing a range of social development initiatives aligned with broader sustainability goals. The project was promoted in collaboration with the UN Global Compact’s Sino-African Sustainable Development Action Network, alongside input from three Chinese-listed companies and the University of Zimbabwe.

According to the organisers, the Goromonzi initiative was recognised for its “innovative practice model and measurable community outcomes” — particularly in health education, skills training, women’s empowerment, and local energy access.

What the Project Covers

The Goromonzi Community Development Project is structured around four core areas:

• Health Promotion: Community programmes to raise awareness about basic health and hygiene, mainly targeting children.

• Youth Skills Development: Vocational training aligned with local employment needs.

• Women Empowerment: Sewing skills training with access to income-generating orders.

• Access to Renewable Energy: Support for decentralised power supply to schools, homes, and small businesses.

According to sources familiar with the programme, the projects were selected following feasibility studies and stakeholder consultations, including with some local residents.

Recognition Comes Amid Broader ESG Push in Mining

While the recognition is notable, industry observers say it also comes at a time when ESG (Environmental, Social and Governance) expectations are rising in Zimbabwe’s mining sector.

Though still largely voluntary, CSR activities are becoming more central to how mining companies are evaluated — both locally and globally. In that context, Arcadia Lithium’s efforts are consistent with a broader trend among producers seeking to align operations with development priorities.

A Measured Step, Not a Benchmark

While the Goromonzi recognition helps shine a light on social investment practices in Zimbabwe’s mining sector, experts say context is important.

“Recognition doesn’t always mean replication,” said one mining analyst in Harare. “What works in Goromonzi may not work in Hwange or Zvishavane. But it’s a signal that companies are expected to do more than extract.”

In practical terms, this also highlights the need for stronger community engagement models, especially around high-value minerals like lithium, which are now central to the global energy transition.

Huayou’s approach, in this case, includes working with academic institutions and tapping into multilateral development networks — a move some believe could shape how other new entrants structure their CSR.

The recognition of Arcadia Lithium’s Goromonzi community development efforts in China reflects a growing shift in how mining projects are assessed — not just by production figures, but by their social footprint.

For Zimbabwe, it’s a reminder that resource development is now closely tied to how well companies engage communities, build skills, and contribute to local resilience. While not perfect or universal, Arcadia’s example offers a case study worth monitoring.

One of the country’s leading gold producers, Caledonia Mining Corporation Plc, has reported further encouraging high-grade results from its ongoing resource expansion drilling programme at its 64%-owned Blanket Mine in Zimbabwe.

By Ryan Chigoche

The latest results are expected to significantly enhance the mine’s mineral resource base and potentially extend its operational life.

The drilling campaign, which commenced in January 2024, is aimed at evaluating the continuity of mineralised zones within three of Blanket Mine’s key orebodies: Blanket, Eroica, and Lima.

These efforts are focused on increasing confidence in existing resources and expanding the mineral resource estimate below the 34 level of the mine (1,110 metres).

This positive development at Blanket Mine comes at a time when gold prices are surging globally and are widely expected to continue rising. Driven by ongoing geopolitical conflicts and economic uncertainties, gold’s status as a safe-haven asset is strengthening investor demand. As a result, the potential increase in high-grade resources and extended mine life at Blanket positions Caledonia well to benefit from a favourable market environment, enhancing both production prospects and long-term value for shareholders.

Between January 2024 and the end of April 2025, Caledonia completed 6,976 metres of underground drilling, which confirmed that the Blanket and Eroica orebodies contain grades and widths that are generally better than previously expected.

Drilling also shows that the Lima orebody continues below the 22 level (750 metres). Additionally, a new potential orebody has been intersected in the Blanket orebody area, returning particularly strong early results.

Commenting on the development, Caledonia CEO Mark Learmonth said the company anticipates an increase in the mineral resource estimates thanks to the drilling results.

“Our ongoing drilling campaign continues to demonstrate encouraging results, further improving our confidence in the Blanket Mine mineral resource and pointing to additional future mineral resource growth. The grades and widths we are seeing from this drilling campaign are as good as, and in some cases considerably better than, results from previous drilling campaigns, which is highly encouraging. We anticipate that the positive grades and widths will result in an increased overall mineral resource estimate, which in due course should result in the extension of the existing life of mine. We have invested heavily in Blanket Mine over the last seven years to increase production capacity, resulting in a mine infrastructure that can sustain production beyond the current production horizon.”

The company said the increased density of drilling intersections is expected to upgrade existing inferred resources to the indicated category or higher, strengthening the foundation for long-term mine planning.

With deeper crosscuts developed to access the steeply dipping orebodies, Caledonia is now able to optimally drill and evaluate the mineralised zones at depth.

Current underground drilling is targeting the Blanket, ARM, and ARS orebodies down to the 38 level (1,230 metres below surface), representing a major push to identify deeper mineral potential.

At the same time, Caledonia has initiated a surface exploration programme within the Blanket Mine lease area, focused on a Banded Iron Formation (BIF) that runs in a north-westerly direction.

This BIF structure has historically supported gold production at nearby operations such as Vubachikwe and Sabiwa. Initial Induced Polarisation (IP) and Ground Magnetic (GM) surveys over a selected area delineated anomalies across a 600-metre strike. Follow-up mapping and shallow pitting confirmed the presence of quartz-filled shear zones within the BIF.

Grab samples from surface pits returned assay results ranging from 0.59 g/t to 32.12 g/t, based on analysis conducted at Blanket Mine’s onsite laboratory.

To further assess the potential of this surface target, Caledonia plans to undertake trenching at 50-metre spacing across the anomalous zone and initiate reverse circulation (RC) drilling to evaluate the presence of shallow oxide resources during 2025.

With both underground and surface exploration programmes delivering robust early-stage results, Caledonia is confident that Blanket Mine remains on a growth path, with additional high-grade discoveries enhancing the outlook for sustained production well into the future.

International oil prices have climbed to their highest levels in five months, with Brent crude briefly jumping 5.7% to US$81.40 a barrel before easing to US$78.39. Meanwhile, U.S. West Texas Intermediate rose 2.6% to US$75.76.

By Ryan Chigoche

The price spike follows U.S. airstrikes over the weekend targeting Iran’s nuclear sites at Fordow, Natanz, and Isfahan.

These strikes have intensified an already volatile situation in the Middle East, sparked two weeks ago by Israeli attacks on Iranian targets.

In response, Iran has threatened to shut down the Strait of Hormuz, a vital shipping lane that handles about 20% of global oil and 30% of liquefied natural gas.

The potential closure has sent global energy markets into disarray, raising fears of rising costs across fuel, freight, and consumer goods.

For Zimbabwe, which already endures the highest fuel prices in Africa, this global disruption is likely to lead to further local price hikes and economic stress.

The U.S. airstrikes, ordered by President Donald Trump, aimed to cripple Iran’s nuclear program and came shortly after Israel’s June 13 assault on Iranian military infrastructure. That Israeli offensive prompted a barrage of over 180 ballistic missiles from Iran in retaliation.

Amid this escalation, Iran’s parliament voted to consider shutting the 21-mile-wide Strait of Hormuz.

The waterway is a crucial route for oil exports from countries like Saudi Arabia, Iraq, Kuwait, and Iran itself, which pumps around 3.3 million barrels daily. A shutdown would pose a serious threat to global energy supplies.

The implications are particularly severe for Zimbabwe, which depends heavily on imported fuel sourced via South African ports and the Feruka pipeline from Mozambique’s Beira port.

As international oil prices surge, Zimbabwe’s import costs rise in tandem, adding pressure to an already strained economy that is battling persistent structural challenges and repeated external shocks.

The country’s fuel sector, already precarious, now faces a worsening outlook. In May 2025, petrol and diesel were priced at US$1.53 per litre—already among the highest in the Southern African Development Community (SADC) region—despite a prior drop in global oil prices earlier in the year.

The situation is further complicated by the role of the National Oil Company of Zimbabwe (NOCZIM), which oversees bulk fuel procurement.

The company has a troubled track record, with previous mismanagement contributing to erratic fuel supplies.

In past shortages, supply levels dropped to just 40% of demand, crippling both business operations and public transport.

With oil prices rising again, Zimbabwe could face a repeat of such supply disruptions, especially as the country continues to struggle with limited access to foreign currency, which is essential for importing fuel.

Zimbabwe’s multicurrency system—where the U.S. dollar dominates alongside the ZiG—adds another layer of complexity.

Fuel importers, already battling currency scarcity, now face soaring procurement costs that are likely to further deplete the country’s thin foreign reserves.

The economic impact will ripple across key sectors. Agriculture and mining, the two pillars of Zimbabwe’s economy, are highly vulnerable to fuel price volatility.

The 2024 El Niño-induced drought reduced agricultural output by 15%, leaving 7.7 million people food insecure.

For farmers reliant on diesel for irrigation and machinery, rising fuel costs will intensify production challenges, particularly as Zimbabwe’s fuel prices already exceed those in neighbouring countries such as Zambia and Botswana.

Higher shipping costs, driven by rising oil prices, also threaten to raise the price of maize imports—an essential staple for millions of households.

The industrial sector is equally exposed. Zimbabwe’s manufacturers are already grappling with chronic power cuts due to low water levels at Lake Kariba.

Blackouts lasting up to 12 hours a day have forced many factories to rely on diesel-powered generators. A jump in fuel prices will push operating costs even higher, undermining production and profitability.

Mining, one of Zimbabwe’s top export earners—especially through gold—may also take a hit. Increased transport and energy costs could squeeze margins, posing a setback to the government’s ambition of transforming the sector into a US$12 billion industry by 2030.

In the face of these converging pressures, Zimbabwe’s economy remains deeply exposed to global oil market shocks, especially when geopolitical instability in the Gulf region sends energy prices surging.