Mining ZimbabweLatest Mining News, Policy and Industry Updates

Gold demand surged significantly in the second quarter of 2025, reaching a record value of $132 billion, a 45% increase from the previous year, according to the World Gold Council’s Gold Demand Trends report, Mining Zimbabwe can report.

By Ryan Chigoche

Total demand, which includes investments made outside regular markets, rose by 3% to 1,249 tonnes in the same period. This growth was largely driven by strong interest in gold-backed exchange-traded funds (ETFs), fueled by uncertainty in global trade, geopolitical tensions, and rising gold prices, the Council noted. Investors’ increased appetite for gold bars and coins also contributed, attracted by gold’s reputation as a safe investment during volatile times. This marked the strongest first half for bar and coin investments since 2013.

Central banks continued to play a major role, adding 166 tonnes to their reserves in Q2. Although their buying pace slowed slightly compared to previous quarters, their overall interest in gold remains robust.

According to the World Gold Council’s recent Central Bank Gold Survey, 95% of central banks expect global gold reserves to grow over the next year, with 43% planning to increase their holdings—the highest level recorded since the survey began.

Central bank purchases in 2023 exceeded 1,129 tonnes, marking the third-largest annual total on record and extending a 16-year buying streak. Rising inflation, geopolitical risks, and waning trust in traditional reserve currencies like the U.S. dollar—now at its lowest global reserve share since 1994—are key drivers behind this trend.

Meanwhile, demand for gold jewellery showed mixed trends. The physical amount of gold used dropped to near 2020 pandemic levels, reflecting price sensitivity among consumers, particularly in key markets like India and China. However, global spending on jewellery increased due to higher gold prices, underscoring gold’s enduring cultural value even as affordability challenges persist.

The technology sector faced headwinds amid potential U.S. tariffs that pressured gold demand in electronics manufacturing. Nonetheless, demand for gold linked to artificial intelligence-related technologies remained a bright spot, reflecting gold’s vital role in emerging high-tech applications.

Gold prices hit record levels, averaging $3,280.35 per ounce in Q2, up 40% from the previous year and 15% from the prior quarter, with June reaching a new price peak.

On the supply side, gold production grew by 3% year-on-year, with mine output reaching a record 909 tonnes. Despite high prices, recycling remained low as many Indian consumers chose to trade old jewellery for new pieces or use gold as collateral for loans rather than selling it outright.

Additional off-market investments and shifts in gold stocks contributed 170 tonnes to demand, driven by strong interest from wealthy global investors and institutional buyers seeking greater control amid uncertain market conditions.

Overall, the second quarter of 2025 reaffirmed gold’s position as both a strategic asset for central banks and a trusted safe haven for investors worldwide. With strong fundamentals and broad-based demand, analysts expect gold’s momentum to continue throughout the remainder of the year.

Two men have been sentenced to two years in prison each after they were caught prospecting for diamonds without a licence in the Marange diamond fields, a powerful reminder of Zimbabwe’s strict stance on illegal mining in one of Africa’s richest diamond deposits, Mining Zimbabwe can report.

By Rudairo Mapuranga

According to the National Prosecuting Authority of Zimbabwe (NPAZ), Charles Ziwoya (46) and Keith Muzuwe (24) were arrested on July 30, 2025, by Zimbabwe Consolidated Diamond Company (ZCDC) security guards patrolling the Chiadzwa area. The pair was found in possession of two sacks filled with diamond ore, commonly referred to as “chubs,” as they tried to sneak out of the mining concession under the cover of darkness.

The suspects were apprehended around 3 a.m. and handed over to the ZCDC Criminal Investigations Unit before being taken to the Zimbabwe Republic Police in Marange for further processing. The Mutare Magistrates’ Court convicted both men of illegal prospecting for minerals without a licence, sentencing them to the mandatory minimum of two years in jail—a sentence designed to deter others from invading the highly secured diamond fields.

While some might see these arrests as routine, they are in fact a stark demonstration of Zimbabwe’s diamond policy in action. Under the country’s 2018 Diamond Policy, only four companies are licensed to mine diamonds:

• Zimbabwe Consolidated Diamond Company (ZCDC)
• Anjin Investments
• Alrosa Zimbabwe
• Murowa Diamonds

All other prospecting or mining activities in diamond-rich areas like Marange are strictly prohibited, with illegal panning or trading carrying harsh penalties. The policy is part of Zimbabwe’s strategy to bring order, accountability, and maximum benefit to the state and its citizens after years of smuggling, leakages, and violent illegal mining syndicates that once plagued Marange.

Speaking after the conviction, the NPAZ reminded the public that illegal prospecting—not only for diamonds but also for gold or other minerals—attracts a mandatory two-year jail term without the option of a fine, highlighting that #CrimeDoesNotPay.

As Zimbabwe pushes towards harnessing its natural resources under President Mnangagwa’s 2030 Vision, the government’s unwavering enforcement of mining laws and the diamond policy will remain central to efforts to ensure diamonds contribute meaningfully to the country’s economy instead of being siphoned off by rogue elements.

Police in Bulawayo have busted a robbery syndicate targeting small-scale miners, recovering 50 kilogrammes of gold ore and arresting two suspects linked to a violent raid at Happy Valley C Mine, a small-scale operation emblematic of the sector’s growing vulnerability to criminal gangs, Mining Zimbabwe can report.

By Rudairo Mapuranga

According to the Zimbabwe Republic Police, Dylan Ndlovu (26) and Vuyani Ndlovu (28) were arrested on 2 August 2025 in connection with the robbery, which saw five men storm the small-scale mine, assault mine workers, and loot valuables from the mine house. The suspects allegedly made off with three smartphones, three blankets, a solar panel, a pair of shoes, and groceries—everyday essentials vital for workers at small mining operations.

In a statement confirming the arrests, National Police Spokesperson Commissioner Paul Nyathi declared:
“The Zimbabwe Republic Police reiterates that there is no going back in the fight against crime in the country. The police will ensure that robbery syndicates are brought to justice and the law takes its course without fear or favour.”

The police recovered the stolen shoes, a button stick, a 20-litre bucket, the 50kg of gold ore, and a hammer mill cracker, a piece of processing equipment suggesting the suspects intended to quickly monetize their loot.

Three other accomplices remain on the run as police intensify efforts to dismantle the gang. The incident starkly highlights the increasing dangers faced by Zimbabwe’s small-scale miners, who are not only battling economic hardships but also a surge in violent criminal activity in gold-producing areas.

Authorities have called on the public to assist with information that could lead to the arrest of the remaining suspects.

Zimbabwe’s gold sector continues to prove that it is the real driver of economic stability, contributing a staggering 33.3% of total foreign currency earnings in the first half of 2025. According to the 2025 Mid-Term Budget and Economic Review, gold fetched US$2 billion out of the US$6 billion in total forex receipts earned by the country between January and May, Mining Zimbabwe can report.

By Rudairo Mapuranga

And if the latest gold delivery figures are anything to go by, Zimbabwe has barely scratched the surface of what gold — especially from artisanal and small-scale miners (ASM) — can do for the economy.

Nearly 46% Growth: ASM Doubles Down

Gold deliveries to the country’s sole buyer and exporter, Fidelity Gold Refinery (FGR), from January to June 2025 reached 20,103.55 kg — a 45.85% increase from the 13,784.29 kg recorded during the same period in 2024.

Artisanal and small-scale miners delivered 14,561.68 kg — a massive 96.31% jump from 7,416.97 kg in the first half of 2024. This surge signals growing trust in the formal gold market, driven by better pricing (now above US$105 per gram) and timely payments from FGR.

On the flip side, large-scale producers delivered 5,541.87 kg, down 12.95% from last year. While restructuring and infrastructure projects are partly to blame, it’s clear the ASM sector is carrying the industry on its back.

Despite gold’s dominance in foreign currency generation — and the ASM sector’s explosive growth — the Ministry of Mines and Mining Development remains one of the least-funded arms of government.

In the 2025 National Budget, the Ministry was allocated just ZiG664.8 million, which translated to around US$20 million. Meanwhile, the same economy it is expected to support earned US$2 billion from gold alone in six months.

We’re expecting billion-dollar results from a ministry we budget like a backyard committee.

Time to Match Output with Investment

The numbers speak clearly:

• Gold = 33%+ of forex
• ASM = 73% of total gold deliveries
• Ministry = Underfunded

We must stop admiring the numbers and start backing them. The ASM sector needs:

• Exploration support
• Access to credit
• Timely payments
• Fair and transparent markets
• Safety and training programmes
• Support for formalisation

The Ministry of Mines, which regulates this critical sector, should not be struggling with outdated vehicles, thin staffing, and no digital cadastre system while gold is plugging the national current account.

From Policy Praise to Practical Support

The government must move beyond slogans and handshakes at miners conferences. The 2026 Budget Strategy Paper has already projected mining to grow by 7.6% in 2025 and 8.3% in 2026. But growth cannot be wished into reality — it must be funded, structured, and nurtured.

With 40 tonnes targeted annually, and ASM already delivering over 14.5 tonnes by June, Zimbabwe is on course — but only if this momentum is supported through deliberate investment in small-scale operations and a fully capacitated Mines Ministry.

Feed What Feeds You

Zimbabwe’s economy is eating from the hands of small-scale gold miners. It’s about time we clean those hands, strengthen them, and place tools in them, not just clap for them after delivery.

If gold can bring a third of the forex, and ASM can deliver nearly triple the gold of large-scale producers, then our national budget and policies must reflect that reality.

We cannot afford to starve the cow that is giving us milk — or in this case, gold that’s literally keeping the economy breathing.

Kavango Resources Plc, a UK-based mining exploration company listed on the London Stock Exchange (LSE), has announced plans for a secondary listing on the Victoria Falls Stock Exchange (VFEX), scheduled for August 29.

By Ryan Chigoche

This strategic move aims to raise US$13.5 million to fund Kavango’s ongoing operations and exploration projects in Zimbabwe.

As of last week, the company’s market capitalisation stood at US$44.24 million, reflecting investor confidence in its growth potential.

In recent years, VFEX has emerged as an increasingly attractive platform for mining companies seeking to tap local capital markets.

Caledonia Mining Corporation, for example, has highlighted how its VFEX fundraising has outperformed efforts on the New York Stock Exchange since 2021, underscoring the exchange’s growing significance.

Kavango’s planned listing follows promising developments at its Bill’s Luck Gold Mine, part of the broader Hillside Gold Project in southern Zimbabwe.

Recent drilling results returned a high-grade intercept of 11.79 grams per tonne of gold, marking a notable exploration breakthrough.

To better communicate its progress, Kavango has resumed using traditional names for its first four gold prospects — Bill’s Luck, Britain, Nightshift, and Steenbok — which were previously designated Prospect 1 through 4.

Currently, Kavango’s core exploration focus lies on two gold projects, Hillside and Nara, both situated on the Filabusi greenstone belt just west of Zimbabwe’s Great Dyke. These projects underpin the company’s ambition to expand its resource base in the country.

In its pre-listing statement, Kavango disclosed that shareholders authorised the issuance of up to 622,841,000 ordinary shares at the annual general meeting on May 29 to facilitate the VFEX listing and related fundraising efforts.

Of the targeted US$13.5 million, US$5 million is earmarked for Comarton through a convertible loan note facility, which includes 37,034,293 shares worth approximately US$500,000 already issued at admission.

An additional US$3.5 million worth of shares — equivalent to 259,240,056 shares — has been allocated to Purebond Limited, Kavango’s largest shareholder, also issued upon admission. The remaining US$5 million is planned to be offered to new investors, subject to demand.

To meet VFEX’s minimum public shareholder requirements and to align employee interests with shareholders, Kavango will set aside a portion of the offered shares for eligible employees through a structured share ownership scheme.

Following its VFEX admission, the company also intends to launch a UK subscription offering. Purebond Limited, incorporated in England and Wales, has committed to invest around US$1.32 million in this UK round, reflecting continued support from major stakeholders.

In Zimbabwe, Corpserve Registrars will act as Kavango’s share registrar and transfer agent. Shares worth up to US$5 million will be made available for direct subscription or held through nominee accounts, depending on investor preferences.

Once the fundraising is complete and shares are allocated, Kavango will list them on VFEX by way of introduction while maintaining its primary listing on the LSE. It’s important to note that shares listed on VFEX will not be tradable on the main LSE market unless formally transferred to the UK share register.

This dual listing structure offers Zimbabwean investors greater flexibility, enabling them to hold shares locally, trade on VFEX, or migrate holdings to the LSE through Share Registrars Limited, Kavango’s UK registrar.

Should demand increase, Kavango has indicated it may issue additional shares to local investors, further deepening its presence in the domestic market.

Zimbabwe’s mining sector, long burdened by rising costs and regulatory red tape, may finally be seeing signs of relief.

By Ryan Chigoche

While the 2025 Mid-Term Budget and Economic Review Statement did not explicitly focus on mining, Finance and Investment Promotion Minister Mthuli Ncube announced a series of reforms that could ease pressure on the industry, particularly through reduced statutory charges and simplified compliance procedures.

Presenting the review, Minister Ncube revealed that the government had “with immediate effect” initiated the process of reviewing statutory fees and charges, alongside efforts to streamline the number of bureaucratic steps required for regulatory compliance.

“During the second half of the year, the government will be seized with the implementation of ease of doing business reforms, targeting the reduction of fees and charges, as well as regulatory requirements and the number of steps,” he said. “This is imperative to significantly reduce the operational costs of the industry to enable it to compete both domestically and internationally.”

These proposed changes may be cautiously welcomed by mining executives, who have for years raised concerns over a fragmented permitting system, overlapping institutional mandates, and excessive statutory costs all of which hamper project development and investor confidence.

“If these reforms are applied to institutions like the Ministry of Mines, EMA, and other regulatory bodies, we could see meaningful operational improvements,” noted a mining executive familiar with compliance challenges in the sector.

In addition to regulatory streamlining, Minister Ncube also hinted at broader fiscal reforms. He said the government is reviewing the existing tax framework to eliminate distortions and enhance the country’s investment competitiveness.

While not mentioned directly in the statement, the mining sector remains heavily impacted by fiscal policy shifts.

Operators have repeatedly highlighted the unpredictability of royalties, the burden of multiple taxes, and the lack of a consistent fiscal regime as critical investment deterrents.

These mid-term announcements follow the introduction of significant fiscal measures in the 2025 National Budget, which came into force in January. That budget introduced new tax provisions and royalty hikes aimed at boosting revenue, improving compliance, and encouraging beneficiation.

However, these changes have tightened the fiscal space for mining firms, who now face special capital gains taxes, beneficiation-linked penalties, and heightened compliance obligations, further stretching operational budgets.

The delayed passage of the Mines and Minerals Amendment Bill has also added uncertainty, with many in the industry viewing it as a critical reform to modernise the legal framework governing mining.

In this context, Ncube’s mid-term reforms—especially the move to review fees and ease compliance—raise an important question:

Will they be enough to counterbalance the financial and regulatory weight imposed earlier this year?

While the proposals offer a glimmer of hope, the mining industry remains cautious.

Much will depend on the speed and effectiveness of implementation and whether the reforms are fine-tuned to meet the practical needs of one of Zimbabwe’s most critical economic sectors.

As it stands, the Mid-Term Budget signals a willingness to engage with some of the sector’s long-standing structural concerns. But the road ahead hinges on execution and consistent policy direction.

Zimbabwe’s mining sector has long been the economy’s backbone, contributing nearly 15% of GDP, over 70% of export earnings, and anchoring the country’s foreign currency stability. Yet, despite this undeniable importance, the Ministry of Mines and Mining Development remains systematically underfunded, Mining Zimbabwe can report.

By Rudairo Mapuranga

In the original 2025 National Budget, the Ministry of Mines was allocated ZiG$664.8 million, roughly US$22 million at the time. To put this in context, the Ministry of Finance itself received ZiG$28.7 billion, and Agriculture received ZiG$22.9 billion. Education and Health received ZiG$56.9 billion and ZiG$28.2 billion, respectively.

While other ministries are undeniably critical, mining is the only sector that consistently brings in billions in foreign currency, which in turn supports all other sectors. The 2025 Mid-Term Budget and Economic Review confirmed this: Zimbabwe received US$6 billion in foreign currency receipts between January and May 2025, and gold alone fetched US$2 billion in just the first six months.

Yet, the Ministry tasked with overseeing this billion-dollar sector operates on crumbs.

The Sector Pulling the Economy – but Starved of Resources

According to the 2026 Budget Strategy Paper, mining is expected to grow by 7.6% in 2025 and 8.3% in 2026, driven by lithium, coal, and PGMs. But how can such growth be managed or sustained when the very Ministry responsible for exploration, licensing, cadastre, environmental monitoring, and ASM formalisation is under-resourced?

This contradiction — a billion-dollar industry supervised by a ministry with a barely hundred-million-dollar budget — borders on policy negligence.

In contrast, nations like Namibia, Botswana, and Zambia have heavily invested in mining cadastre systems, digital licensing, ESG frameworks, and exploration data. Zimbabwe, despite its mineral richness, continues to expect maximum output from minimal input.

Foreign Currency Cow, Budget Goat

The Government continues to milk the mining sector for foreign currency but refuses to adequately feed the cow.

Let’s recall that in just five months, the economy earned US$6 billion in foreign currency, with mining leading the charge. The sector also played a huge role in stabilising the exchange rate, strengthening the current account, and ensuring macroeconomic stability, as stated in the Budget Review. And yet, the Ministry is expected to enforce compliance, attract investment, regulate over 500,000 small-scale miners, and monitor ESG issues — with the lowest operational capacity among top-performing ministries.

This is akin to demanding Olympic performance from a barefoot athlete.

Budget Priorities Need Urgent Realignment

As of June 2025, only 35% of the national budget had been utilised. That means there’s still fiscal space to support the true drivers of economic growth, and mining must top that list. The Budget Strategy Paper correctly identifies mining as a pillar of value-chain-driven development, but policy recognition must now be followed by real resource allocation.

It’s not enough to praise mining’s contribution. We must fund it.

Time for the Finance Ministry to Finally Listen

For years, the Ministry of Finance has acknowledged mining’s potential. But talk alone doesn’t build cadastre systems, fund geological surveys, or formalise artisanal miners.

In 2026, the Ministry must break from tradition and meet the Mines Ministry’s full budget requirements. This includes funding:

• Provincial Mines Offices and inspectorate teams
• Up-to-date geological data collection
• A digital mining cadastre system
• Artisanal mining support centres
• Environmental compliance and ESG oversight
• Public-private partnerships in beneficiation

Let this be the year Zimbabwe feeds the hen that lays the golden eggs, not just claps when it delivers.

If we continue underfunding our most lucrative ministry, we are not being frugal—we are being foolish.

AIM-listed mining and exploration junior, Premier African Minerals Limited, has announced the commencement of the second phase of test runs at its Zulu Lithium and Tantalum Project in Fort Rixon, scheduled to begin today, as the company continues its long journey toward achieving steady-state production at one of the country’s most anticipated lithium operations, Mining Zimbabwe can report.

By Rudairo Mapuranga

According to the latest update, all Original Equipment Manufacturers (OEMs) are now on-site to guide the plant’s optimisation efforts. Key operating parameters—including reagent dosing, flow controls, and minor mechanical adjustments—will be finalised during this phase.

According to Premier CEO George Roach, plant personnel and OEMs have been conducting inspections and maintenance, alongside implementing a minor change in the spodumene flotation section.

“Some operating parameter changes and the possible reintroduction of an additional reagent successfully used in 2024, to the extent necessary, round out the preparations,” Roach stated. He added that the company remains hopeful that the improvements will mark another “major step forward” in the optimisation process.

The company’s goal is to reach a consistent 22-day-per-month operating availability, which it believes is essential for meeting its projected spodumene concentrate production levels.

Ongoing Optimisation — But At What Cost?

While Premier has painted an optimistic outlook in its latest RNS, the path to full production has been long, winding, and fraught with delays. From multiple test phases to repeated optimisation work, the Zulu project has yet to reach the output levels initially promised when construction commenced.

In a 1 August 2024 update, Premier stated that no major plant equipment changes were required, and test work was focused on fine-tuning chemical dosing, agitation speeds, slurry densities, and cell residence times. These adjustments were aimed at achieving the required recovery and concentrate grades. At that time, Enprotec—the supplier of the flotation plant—had committed to completing all laboratory work to support the recommencement of operations. Yet, one year later, Zulu has still not entered steady commercial production.

Roach acknowledged in earlier comments that the true optimisation work only began after the commissioning of a new mill and scrubber in Q1 2024. Despite progress, frustration remains visible in the subtext of these updates. This raises questions: Why has the optimisation taken so long? Have earlier commissioning and design stages contributed to current delays?

Financial Manoeuvring Amid Delays

Beyond technical hurdles, Premier African Minerals is also contending with serious financial challenges. As reported in February 2025, the company failed to complete a US$4 million fundraising effort as initially structured. The retail offering, which was supposed to raise significant capital from existing shareholders, did not meet expectations.

To manage its obligations, Premier opted to pay US$300,000 in contractor invoices through the issue of over 1 billion new ordinary shares, further increasing the company’s share capital to nearly 40 billion shares. While this move averted immediate cash pressures, it also deepened concerns about shareholder dilution and the company’s ability to attract conventional funding.

This decision followed a previously cancelled fundraising initiative that aimed to raise £3.5 million through a placing and a retail offer, but managed just £1.2 million before being scrapped. With the project still requiring additional capital to move into production, the question lingers: can Premier continue to rely on equity financing to keep Zulu afloat?

Canmax Remains Committed — For Now

In the face of these financial and operational headwinds, Premier’s relationship with its strategic partner Canmax Technologies Co., Ltd has provided a critical lifeline. In January 2025, Canmax reaffirmed its commitment to support the completion of the Zulu flotation plant under an amended offtake and prepayment agreement.

The Chinese tech company made it clear that its involvement is limited to securing spodumene concentrate under agreed specifications and not to pursue control or ownership of the project. George Roach has continuously expressed confidence that the partnership with Canmax will help finalise the project’s commissioning, but even this alliance is not immune to market impatience and unmet delivery timelines.

Premier African Minerals has consistently framed each update as a step forward in a highly complex process. Yet, from a broader perspective, investors and stakeholders are justified in asking hard questions:

• Why has full optimisation taken more than a year post-plant commissioning?

• How sustainable is Premier’s current funding model, especially with heavy reliance on share issuance?

• Can the company meet the prepayment obligations made under its agreement with Canmax?

The importance of the Zulu project—Zimbabwe’s flagship lithium development—cannot be overstated, particularly as global demand for lithium continues to surge. However, after years of updates, test runs, and incremental improvements, observers are left wondering whether Premier is truly nearing the finish line or if the goalposts will continue to shift.

As the second phase of test runs begins, all eyes will remain fixed on Zulu—and whether it can finally shift from potential to production.