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Caledonia Seeks Smart Funding for Bilboes Project Expansion

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Caledonia Seeks Smart Funding for Bilboes Project Expansion

Multi-listed, gold-focused miner Caledonia Mining Corporation Plc is sharpening its focus on what could become Zimbabwe’s largest gold operation the Bilboes gold project, with the company exploring multiple funding routes to bring the $400 million capital-intensive vision to life, Mining Zimbabwe can report.

By Rudairo Mapuranga

Speaking to Mining Zimbabwe, Caledonia CEO Mark Learmonth described the Bilboes project as “transformational” not only for the company but also for Zimbabwe’s broader economic and mining landscape. The project is expected to produce approximately 1.5 million ounces of gold over an initial 10-year life-of-mine, positioning it as one of the most significant gold ventures in the country’s recent history.

“A project as big as Bilboes, if successful, would be transformational for Caledonia. It would also be transformational for Zimbabwe—not just in terms of economic contribution, but by forcing international investors to revisit and reconsider their misconceptions about Zimbabwe as a mining investment destination,” Learmonth said.

According to Learmonth, internal cash flows and external debt financing will be key pillars in advancing Bilboes, with the company deliberately seeking to minimise equity dilution for existing shareholders. He acknowledged that raising new equity funding is expensive, given that Caledonia’s share price currently does not reflect the true underlying value of the business.

“To fund this project, we are looking at maximising internally generated equity while exploring debt to avoid unnecessary dilution. Our disciplined approach is to build value, not just raise capital for the sake of it,” Learmonth emphasised.

The CEO noted that while Bilboes is a long-term flagship project, near-term revenue opportunities elsewhere in Caledonia’s portfolio are being actively considered to further strengthen the company’s equity base. This, he said, could lead to an even greater internal contribution toward the Bilboes’ development.

Adding to the upside is the potential expansion of the project through the incorporation of the neighbouring Motapa property, where Caledonia has just started exploration. The inclusion of Motapa could make the Bilboes footprint even larger, extending its life and boosting gold output beyond initial expectations.

“Bilboes is already a big project. But the integration of Motapa could scale it further, and that’s where the real transformational value lies—for us and for Zimbabwe,” Learmonth added.

Despite Zimbabwe’s historical challenges with perception in global capital markets, Caledonia believes that Bilboes could be the catalyst that reshapes narratives, especially if executed with transparency, discipline, and adherence to international standards.

“It is beholden on all participants in the Zimbabwe mining sector to actively work toward changing these misperceptions. If we get this right, it could open the door to more capital being available at lower costs to fund not just Bilboes, but other mining projects across the country,” said Learmonth.

The Preliminary Economic Assessment (PEA) for Bilboes, released last year, pegged the total capital requirement at over US$400 million. While this presents a financing challenge, Caledonia is confident in its methodical approach, prioritising value optimisation, capex efficiency, and smart financing.

As the company continues to engage both local and international partners, the success of Bilboes could usher in a new era for Zimbabwe’s gold sector—a future built on scale, confidence, and investment-grade performance.

Stronger together: Partnerships will transform Africa’s mining sector

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Stronger together: Partnerships will transform Africa’s mining sector

The time is opportune for Africa’s mining sector to step up and realise its full potential. With its vast mineral reserves, the continent possesses the resources to power the next phase of development for the continent and the globe. Given robust debate around which minerals will be most important to fuel that development, there is renewed interest in Africa from across the world.

Unlocking this potential requires more than resource extraction — it demands a collective effort from governments, private-sector players, downstream buyers, communities and civil society.

The 2026 Investing in African Mining Indaba (MI26) theme, “Stronger together: Progress through partnerships” highlights the transformative power of collaboration in addressing the sector’s challenges and opportunities.

MI26 is a pivotal event for mining professionals, investors, and industry leaders looking to capitalise on the vast opportunities in Africa’s mining sector. Mining Indaba 2026 comes at a crucial time for Africa, as it maps the role it will play in the global economy.

The conference theme is powerfully expressed in the visual identity for MI26, with a fingerprint motif representing the human component of the industry and underscoring the need for collaboration across the sector.

Frans Baleni, chairman of the Mining Indaba executive advisory board, explains that this year’s theme aligns with the South African philosophy of ubuntu – a belief in a shared, essential humanism.

“Ubuntu holds that unity is strength — that when we work together, we craft a better future. This is fundamentally true. By collaborating, we can shape outcomes for the betterment of all stakeholders – and the environment.”

This was echoed by Gwede Mantashe, South Africa’s Minister of Mineral and Petroleum Resources. “Our strength lies in building partnerships that recognise the mutual value of investment. We understand that investors seek returns, and rightly so, but we are equally committed to ensuring that the benefits of growth and development are shared with workers, communities, and the country at large. Progress is only meaningful when it lifts all stakeholders,” he said.

Community-centric mining: A new paradigm

One of the most significant shifts in Africa’s mining landscape has been the recognition of the need to involve indigenous and local communities. Historically not prioritised, these groups today have a seat at the table, as stakeholders, beneficiaries and equal partners. This shift is encouraging mining companies to adopt more sustainable and community-centric approaches.

Dr Marit Kitaw, economic affairs officer at the United Nations Economic Commission for Africa, calls for a reimagining of the way that the continent’s mineral bounty can be developed, so that it benefits a wider range of stakeholders.

“The theme ‘Stronger together: Progress through partnerships’ is a call to reimagine partnerships on Africa’s growth journey, to see minerals not as tools of convenience, but as instruments of collective empowerment,” she says. “Africa’s transformation through minerals can only be achieved when everyone, including women, youth, marginalised communities, artisanal miners, governments, industry, civil society, academia, and cooperating partners, sit at the table as equal partners. Stronger together, we rise!”

By fostering mutual respect, transparent dialogue, and inclusive decision-making, mining operations can ensure that local communities benefit from resource development while preserving cultural heritage and environmental integrity. From skills sharing and job creation to improving livelihoods and empowering indigenous voices, this new paradigm recognises that mining success must extend beyond production outputs to include shared prosperity and social equity.

Mzila Mthenjane, CEO of the Minerals Council South Africa, emphasises the role of collaboration in driving growth.

“The South African mining sector is positively impactful, but even more so in collaboration with government and other social partners,” he says. “The sector is poised for growth and will enable the investment and development of key infrastructure that supports livelihoods and economic growth.”

Defining critical minerals

A crucial global debate is underway around the idea of critical minerals – resources deemed strategically important for economic, technological, or developmental reasons.

Precisely which minerals are critical varies according to national interests. For Africa, its reserves of iron ore and gold see it well placed to power infrastructure and technology development as well as financial markets. According to the United Nations, the continent has 40% of the world’s gold and up to 90% of its chromium and platinum.

The continent also holds around 55% of global reserves of cobalt – a major input in batteries for electric vehicles, smartphones and laptops. DRC accounts for 70% of global production.

However, to maximise the benefits of these resources, Africa must move beyond exporting raw materials to developing local beneficiation and refining capabilities.

Tony Carroll, a member of the Mining Indaba Executive Advisory Board, advocates for a strategic pivot.

“We can no longer operate as before,” he says. “Neither bulk exports of unrefined ore nor export bans are durable solutions. The industry has to pivot toward practices that provide more value and technology transfer in African nations. This transition will be aided by the introduction of more nimble and economically viable refining technologies and the provision of supportive infrastructure via public-private partnerships.”

This shift will require governments, investors, and mining companies to work together to develop industrial hubs, reliable transport networks, and energy systems that support local processing and manufacturing. By prioritising infrastructure and industrialisation, Africa can position itself as a leader in the global energy transition while ensuring that its mineral wealth benefits its people.

Kwasi Ampofo, Head of Mining and Metals at BloombergNEF, highlights the significance of collaboration in this context.

“‘Stronger together: Progress through partnerships’ means uniting governments, private sector, communities, and civil society to transform mining, achieving a shared triumph for Africa’s future,” he says.

Technology and sustainability: The way forward 

Innovation is another cornerstone of the 2026 Mining Indaba. From AI-driven exploration to digital-twin technology, the mining sector is embracing disruptive technologies to enhance efficiency, safety, and sustainability.

Laura Nicholson, content and communities director for Mining Indaba, stresses the importance of innovation.

“Investing in African Mining Indaba is a platform where transformative ideas and collaborations come to life,” she says. “Our goal is to drive both investment and the kind of innovative technology partnerships that create shared prosperity.”

Disruptive technologies also offer an opportunity to engage Africa’s youth. By investing in skills training and education programmes around advanced mining technologies, the industry can create pathways for young people to lead the sector’s transformation, building a resilient, future-ready workforce.

Governance and policy harmonisation

Strong governance and harmonised policies are essential for a stable, attractive investment environment. When African governments unite, they unlock growth in mining and the broader economy. Harmonised regulations, better infrastructure and responsible investment create a stable foundation, while international partnerships bring technology, funding and expertise to fast-track success.

Mantashe underscores the importance of aligning investment goals to build mutual value.

“Investors seek returns, and rightly so, but at the Department of Mineral and Petroleum Resources, we are equally committed to ensuring that the benefits of growth and development are shared with workers, communities and the country at large. Progress is only meaningful when it lifts all stakeholders.”

Building Africa’s future together

As the 2026 Mining Indaba approaches, it is clear that the future of African mining lies in partnerships. Whether it’s governments harmonising regulations, companies investing in communities, or innovators pushing technological boundaries, collaboration is the key to unlocking Africa’s full potential.

By fostering mutual respect, transparent dialogue and inclusive decision-making, the mining sector can ensure that Africa’s mineral wealth becomes a catalyst for justice, prosperity and dignity for all.

Investing In African Mining Indaba 2026, with its theme enjoining the industry to be “Stronger Together”, offers participants a golden opportunity to partner with industry stakeholders to unlock possibilities and strengthen the sector.

  • Prospective delegates, exhibitors, sponsors and event partners can get involved in #MI26 and help to co-create the next phase of the sector’s evolution by visiting miningindaba.com.

 

Gold buying prices per gram in Zimbabwe, 12 June 2025

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Gold buying prices per gram in Zimbabwe, 12 June 2025

Gold buying prices per gram in Zimbabwe today, 12 June 2025, from the official gold buyer and exporter Fidelity Gold Refinery (FGR).

SG 90% and ABOVE US$101.16/g.
SG ABOVE 89% BUT BELOW 90% US$100.09/g.
SG ABOVE 80% BUT BELOW 85% US$99.02/g.
SG ABOVE 75% BUT BELOW 80% US$97.95/g.
SAMPLE BELOW 10g BUT ABOVE 5g US$96.34/g.

Fire Assay CASH $101.69/g.

NB: Fire Assay cash price is for gold above 100g; no sample is deducted.
A sample of not more than 10g is deducted for the Fire Assay Transfer price.
A 2% royalty is charged on all deposits (Small-scale miners).
A 5% royalty is set for Primary Producers.

Zimbabwe Eyes Ferrochrome Dominance as Palm River Ramps Up to 1 Million Tonne Output

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Zimbabwe Eyes Ferrochrome Dominance as Palm River Ramps Up to 1 Million Tonne Output
  • With a design capacity of 1 million tonnes, Palm River is set to surpass all local output and establish Zimbabwe as a leader in ferrochrome production.

Zimbabwe’s ferrochrome industry is set for a seismic shift as the Palm River Project, located within the Palm River Energy Metallurgical Special Economic Zone, continues ramping up operations toward its design capacity of 1 million tonnes per annum—a production milestone that will position it as the country’s largest ferrochrome producer by far, Mining Zimbabwe can report.

By Rudairo Mapuranga

Commissioned in February 2025, the Palm River ferrochrome complex, driven by Xintai Energy and Metallurgical Company, has already begun contributing to the country’s beneficiation and value addition drive in chrome. The mega project is expected to dwarf existing operations, whose combined current output hovers around 270,000 tonnes per year.

Speaking at a post-Cabinet briefing on Tuesday, Minister of Information Hon. Jenfan Muswere said the Cabinet reaffirmed its ban on the export of chrome ores, stressing the urgent need to develop Zimbabwe’s ferrochrome industry locally rather than ship raw ores to offshore processors.

“With immediate ramping up to a design capacity of 1,000,000 tonnes of ferrochrome production, the Palm River Project will make Zimbabwe a key ferrochrome hub in Southern Africa. It is also a response to the Government’s thrust on value addition and beneficiation, aligned with Vision 2030,” said Minister Muswere.

Ferrochrome, a critical input in stainless steel manufacturing, remains one of the most volatile minerals in terms of pricing, subject to global economic and industrial cycles. Zimbabwe’s push to value-add and dominate regional ferrochrome supply comes at a time when the global market is seeking stable, high-volume suppliers of the mineral.

According to Minister of Mines and Mining Development Hon. Winston Chitando, there are currently about 10 ferrochrome producers in Zimbabwe, with capacity ranging from as low as 3,000 tonnes to 84,000 tonnes per annum. The combined national installed capacity is around 270,000 tonnes, making the 1-million-tonne Palm River vision a true outlier and game-changer.

To complement ferrochrome beneficiation, the government has suspended the issuance of chrome mining titles exceeding 100 hectares to maintain orderly development and focus efforts on value addition through smelting and processing.

Palm River’s Green Energy Advantage

What makes Palm River’s rise even more strategic is its self-sufficiency in power—an Achilles’ heel for most of Zimbabwe’s heavy industries. Xintai’s US$3.6 billion investment has received commendation for generating its own electricity by capturing gas emissions and converting them into clean energy for use in its smelting operations.

This model not only reduces pressure on the national grid but also puts Zimbabwe in line with global best practices on green metallurgy. Minister Chitando earlier commended Xintai’s move, describing it as “a breakthrough in sustainable mining and processing that other producers must emulate.”

What the Future Holds

As the Palm River facility continues to scale up, the ripple effects across Zimbabwe’s chrome and steel industry will be enormous:

  • Increased employment, especially for metallurgists, engineers, and technicians.
  • Local downstream industries such as stainless steel manufacturing will benefit from reliable ferrochrome supplies.
  • Export earnings are set to increase significantly as Zimbabwe moves from ore exporter to a regional ferrochrome powerhouse.

Yet challenges remain. Price volatility, infrastructure gaps, and capital access for smaller players still hinder broader industry growth. However, with a mega project like Palm River setting the pace and showcasing what’s possible with visionary investment, Zimbabwe’s long-standing ambitions for a value-driven mining industry are finally being realised.

As the country transitions from just being a source of chrome ore to a global ferrochrome player, the Palm River Project proves that Zimbabwe is not just mining—it’s building a world-class metallurgical industry.

ZIDA Launches Investor Grievance Response Mechanism, A Step Towards Mining Investment Security

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ZIDA Launches Investor Grievance Response Mechanism, A Step Towards Mining Investment Security

In a move that may redefine investor confidence in Zimbabwe’s mining sector, the Zimbabwe Investment and Development Agency (ZIDA) has unveiled a new Investor Grievance Response Mechanism (IGRM) designed to protect existing investments from disruption due to sudden policy shifts, bureaucratic hurdles, or adverse actions by government institutions, Mining Zimbabwe can report.

By Rudairo Mapuranga

For Zimbabwe’s mining industry—arguably the bedrock of the economy—this development could not have come at a more critical time.

The IGRM seeks to address investor concerns swiftly and transparently before they escalate into disputes that may derail entire projects. With mining operations often requiring significant upfront capital, long-term commitment, and a delicate relationship with multiple government agencies, the existence of a formal channel for resolving grievances represents a significant boost to investment retention.

In recent years, miners—especially large-scale and foreign investors—have expressed concerns over abrupt regulatory changes, delays in approvals, and contractual uncertainties. These issues, while sometimes minor, often have a ripple effect on production timelines, supply contracts, and ultimately on export earnings.

By launching a dedicated grievance mechanism, ZIDA is not only acknowledging these realities but acting to correct them in a structured, investor-friendly manner.

The mechanism operates through a straightforward digital submission process. When a miner, for instance, is affected by a regulatory change from a Ministry, Department or Agency (MDA)—whether it involves delays in Environmental Impact Assessment approvals, changes to mining title policies, or forex payment challenges—they can submit a grievance directly via the ZIDA portal. The grievance is then reviewed and assessed for urgency and impact. ZIDA promises to act as a bridge, ensuring timely communication and accountability between the investor and the relevant authority, with a five-day deadline set for MDA responses.

If additional information is needed from the investor, they have up to thirty days to furnish details—ample time considering the operational demands within mining companies. ZIDA will then coordinate the dialogue, provide resolution, and, where necessary, facilitate meetings to bring all parties together.

The mining sector is among the most regulated in Zimbabwe, with touchpoints across Ministries including Mines, Finance, Environment, and Local Government. A mechanism such as this, which centralises grievance resolution, could dramatically cut down delays and restore investor faith in the administrative system. Most importantly, it sends a message that Zimbabwe is serious about safeguarding investments already on the ground.

ZIDA, established under the ZIDA Act (Chapter 14:38), has already made notable progress through its One Stop Investment Services Centre, which assists with business registration, licensing, tax facilitation and now, investor aftercare. With the addition of the IGRM, the Agency is adding a critical layer of support, particularly for mining investors navigating complex stakeholder environments.

The mining sector needs institutional certainty to thrive. Whether it’s a foreign lithium producer facing delays in plant commissioning or a local gold miner battling access to electricity due to unclear government priorities, the IGRM provides a structured recourse to ensure operations continue unhindered.

ZIDA’s Corporate Affairs Manager, Judith Mbetu, noted that the mechanism aligns with global best practice and is not just about resolving disputes, but fostering trust. It’s an approach that ensures grievances don’t escalate into legal battles that could jeopardise the mining operation or deter potential reinvestment.

As Zimbabwe works to attract and retain mining investment—be it in lithium, gold, coal, or PGMs—the introduction of this mechanism adds another layer of credibility to its investment promotion efforts. In a competitive African landscape where investor confidence is shaped by ease of doing business and dispute resolution frameworks, the IGRM stands as a clear signal: Zimbabwe is not only open for mining business—it is ready to listen, act, and protect those who dare to invest.

Premier Secures Fresh Funding to Complete Zulu Lithium Project Overhaul

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Premier Secures Fresh Funding to Complete Zulu Lithium Project Overhaul

London Stock Exchange-listed mining and exploration junior Premier African Minerals has once again demonstrated its resilience and determination to deliver Zimbabwe’s most promising lithium project by securing fresh interim funding amounting to £1.575 million, Mining Zimbabwe can report.

By Rudairo Mapuranga

The funds, announced on Wednesday, are earmarked to accelerate the critical final works at the Zulu Lithium and Tantalum Project in Insiza, with a view to stabilising operations, improving recovery, and positioning the mine for long-term profitability.

The latest capital injection, raised through the issuance of new ordinary shares at 0.012 pence per share, comes at a crucial time for Premier. The company is racing against time to address underperformance at the original flotation plant, and this funding signals a pivotal step towards completion of the corrective works. In addition to the subscription raise, Premier also settled contractor invoices worth US$1.1 million—equivalent to £0.740 million—through the issuance of over six billion new shares. It’s a clear indication of Premier’s intent to meet its obligations while keeping operations on track.

At the heart of this new funding round is the installation and commissioning of new inserts designed to enhance concentrate retention time in the plant’s cleaner section. The company expects these changes to significantly improve both grade and recovery—two key technical hurdles that have plagued the project since its initial ramp-up. In the event the upgraded primary plant fails to deliver the expected performance, Premier has already begun civil works on an alternative flotation circuit, ensuring the company is not caught flat-footed should contingencies arise.

Premier’s Chief Executive Officer, George Roach, confirmed that the work is proceeding within budget and on schedule. He expressed confidence that the solutions now being implemented—long envisioned and tested since the third quarter of 2024—will finally deliver the product quality the market demands. The extensive test work undertaken in recent months, he noted, supports the company’s belief that satisfactory results are within reach.

“The inserts and the secondary flotation circuit are exactly as proposed in Q3 2024, but now with many more months of test work that all indicate proper recovery and grade should be achieved,” Roach said.

Importantly, the company revealed that its previously announced Letter of Intent with an FTSE100-listed entity remains active, and further negotiations with both that party and Canmax will resume as soon as the plant achieves acceptable grade and recovery. Premier expects this could be as early as July 2025 if the inserts perform as anticipated, or by late August should the secondary plant need to be commissioned.

Beyond the push to stabilise spodumene production, Premier is already looking further into the future. The company has used this interim period to explore alternative ore sorting technologies while also investigating the potential recovery of high-purity quartz and tantalite. As Roach pointed out, Zulu’s pegmatites are not only rich in lithium-bearing minerals but also host other industrial mineral opportunities that could significantly improve the mine’s economics over time.

The announcement of this latest funding round comes after a series of recent efforts by Premier to breathe life into the Zulu project. Earlier this year, the company raised US$1.25 million to accelerate civil works and a further US$2 million to fast-track commissioning. These moves followed on the heels of a broader strategy aimed at solving persistent plant challenges that had threatened to derail production targets.

In terms of market operations, the new capital raise—comprising a total of 19.3 billion shares—was arranged within the company’s existing share authorities and facilitated by CMC Markets UK Plc, trading as CMC CapX. Admission of the shares to AIM trading is expected around 17 June 2025, with a short lock-up period applied to settlement shares.

Following this issue, Premier’s total issued share capital now stands at 70.27 billion shares, a significant increase that reflects both the cost of stabilisation and the scale of ambition the company has for Zulu.

Premier’s long journey toward becoming a key lithium supplier is being watched closely by stakeholders and policymakers alike. With Zimbabwe’s global lithium aspirations gaining momentum and new players continuing to emerge in the space, Premier’s success or failure at Zulu will carry implications far beyond Matabeleland South. For now, however, the company appears to be digging deep—both financially and operationally—to ensure its place in Zimbabwe’s lithium future is not just reserved, but earned.

Eureka Gold Production Rises 0.05% in May, Continues Upward Momentum on the Back of Strategic Investments

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Eureka Gold Production Rises 0.05% in May, Continues Upward Momentum on the Back of Strategic Investments

Guruve-based Eureka Gold Mine has continued its steady production momentum into the second quarter of 2025, with May gold output rising to 178.7 kilograms, slightly above the 178.6 kilograms recorded in April, reflecting a 0.05% month-on-month increase, Mining Zimbabwe can report.

By Rudairo Mapuranga

While the increase may appear marginal, it reinforces the mine’s consistent performance and its commitment to maintaining operational excellence.

The mine, operated by Dallaglio Investments, the gold mining subsidiary of VFEX-listed Padenga Holdings, has been on a solid growth trajectory. This latest production data comes on the heels of an already impressive first-quarter performance in which Eureka produced 438 kilograms, surpassing its Q1 target of 409 kilograms by 7.09 per cent.

Speaking to Mining Zimbabwe, Eureka General Manager Nelson Banda credited the mine’s resilience and steady growth to strategic investments, plant stability, and operational discipline.

“Our Q1 2025 performance reflects a combination of operational discipline and long-term planning,” Banda said.

This growth builds on a highly successful 2024 in which Eureka recorded 1,811.03 kilograms of gold, 6.69% above its annual production target of 1,697.37 kg. The final quarter of 2024 alone saw production beat forecasts by 12.19%, a trend that has carried through into the new year.

A key enabler of Eureka’s dependable output is its tailings infrastructure investment strategy, with US$4 million allocated in 2025 to expand its Tailings Storage Facility (TSF). To date, over US$12 million has been invested in the TSF programme—ensuring environmental compliance, uninterrupted processing, and long-term sustainability.

“The capex is part of an ongoing annual investment into the TSF construction program. The facility is currently downstream and will transition into a modified upstream arrangement in 2026,” Banda explained.

Eureka’s TSF is also one of the most technologically advanced in the country. The mine has installed pressure sensors, flow meters, delivery line interlocks, and 24/7 CCTV surveillance, ensuring safety, efficiency, and early detection of faults. Moreover, water recycling systems have been implemented to promote sustainability and reduce environmental impact.

The mine’s ISO 14001 certification and progress toward compliance with the Global Industry Standard on Tailings Management (GISTM) further demonstrate its commitment to world-class practices.

“We are not just building infrastructure; we are securing the future of our operations, protecting our environment, and ensuring the safety of our workers and surrounding communities,” Banda added.

With consistent production levels and sustained infrastructure development, Eureka Gold Mine is increasingly being viewed as a benchmark for responsible gold mining in Zimbabwe. Its role in supporting the nation’s 2030 vision is becoming more prominent with each passing quarter.

As output continues to rise—even marginally—Eureka is proving that deliberate planning, investment in sustainability, and adherence to global standards can result in not only stable but exceptional performance.

If current trends continue, Eureka is on track to once again exceed its annual production targets, strengthening its position as one of Zimbabwe’s top-performing gold producers and a vital contributor to economic transformation.

Interview Caledonia Mining Chief Executive Officer Mark Learmonth

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Interview Caledonia Mining Chief Executive Officer Mark Learmonth

As Zimbabwe’s mining sector continues to attract global attention, companies like Caledonia Mining stand out for their long-term commitment, operational excellence, and strategic investment in the country. At the helm of Caledonia is a seasoned professional whose journey from chartered accountancy in London to leading one of Zimbabwe’s top gold producers reflects a deep understanding of both finance and African mining dynamics.

Here is our interview with Caledonia Mining Chief Executive Officer (CEO) Mark Learmonth.

Could you briefly share with us your professional background and journey in the mining sector leading up to your appointment as CEO of Caledonia Mining?

I qualified as a chartered accountant in London in 1991, before moving into merchant/investment banking – initially in London and then in Johannesburg, mainly doing transactions in the mining sector in Africa. I joined Caledonia in June 2008, at which time Caledonia was focused on exploration for copper and cobalt in Zambia.

Over the following years, we decided to divest non-core assets and focus our efforts on gold production in Zimbabwe. I became CFO in 2014 and was appointed CEO in 2023.

Caledonia has been a consistent performer in Zimbabwe’s gold sector, particularly through Blanket Mine. What have been the key drivers of this sustained performance despite a “challenging operating environment”?

Our success is based on tight operating and financial controls and disciplined capital allocation. It helps that we have a cash-generating asset in Blanket Mine, which has allowed us to fund growth using internally generated funds. However, this did require very close attention to forecasting and spending to ensure that we never ran out of money. It is only relatively recently that we have had access to external funds such as debt or the ability to raise equity.

Regarding Zimbabwe, I would challenge the common perception that it is a difficult jurisdiction. Yes, there are difficulties such as the frequent and rapid changes in policy; the heavy administrative and bureaucratic burden, the risk of repeated foreign exchange losses and inadequate access to dollars. Electricity is a problem, but electricity is also a significant problem in other jurisdictions, and the Zimbabwe government has been more flexible than most in facilitating private-sector solutions. In other respects, Zimbabwe is markedly less difficult than other jurisdictions: there is a plentiful supply of well-educated, highly-experienced, hard-working labour; the country is stable from a security perspective; consumables can be procured either locally, or relatively easily in South Africa; there is no low-level corruption and, notwithstanding the frequent policy changes, government is not doctrinally opposed to commercial mining operations.

The Bilboes project has been described as potentially Zimbabwe’s biggest gold asset. Could you provide an update on its progress and its strategic importance to Caledonia’s growth plans?

Bilboes will be Zimbabwe’s largest gold project and represents a major opportunity for Caledonia. Based on the Preliminary Economic Assessment published last year, Bilboes will produce approximately 1.5 million ounces of gold over an initial 10-year life of mine. The inclusion of the neighbouring Motapa property, where we have just started exploring, could make the Bilboes project even bigger. Bilboes is a big capital project: total capital expenditure, based on the PEA, is over $400m.

To fund this project will require us to maximise our internal cash flows and to raise external debt finance so that we can minimise the amount of new equity that we need to raise. New equity funding is expensive because our share price does not fully reflect the underlying value of the business. The reasons for this disconnect reflect these broader misconceptions about Zimbabwe. It is beholden on all participants in the Zimbabwe mining sector to be more positive. To minimise the dilution of our existing shareholders, our approach is to build value through disciplined growth. We are working hard to optimise the economics of the project and to reduce the up-front funding requirement.

We are also considering some near-term revenue opportunities elsewhere in our portfolio, which may increase our own internally generated equity contribution to the project. A project as big as Bilboes, if successful, would be transformational for Caledonia. It would also be transformational for Zimbabwe, not just in terms of contribution to the economy and broader stakeholders, etc, but also by forcing international investors to revisit and reconsider their misperceptions about Zimbabwe. This could result in more capital being available at a lower price to advance other projects in Zimbabwe.

ESG (Environmental, Social, and Governance) has become a central focus in global mining. How is Caledonia integrating ESG principles into its operations in Zimbabwe?

ESG is fully integrated into our operating model – we will shortly publish our 2024 ESG report, which provides ample information on this, where you see we do an enormous amount. Whether it’s a computer lab at Sitezi Secondary School, our support for local health clinics, or our investments in renewable energy, we are committed to making a tangible and positive impact. ESG is very much part of our core principles and something we take very seriously. In Zimbabwe, social impact can be profound, and our ESG commitments are not only a reflection of our values but also a business imperative for long-term sustainability.

With the recent appointment of Mr. Ross Jerrard as CFO, what strategic focus or operational improvements should stakeholders expect as Caledonia enters its next growth phase?

We are delighted that Ross has joined us. He was previously the CFO at Centamin, which accomplished in Egypt what we hope to achieve in Zimbabwe i.e. build and operate a world-class gold mine in a previously unfashionable, overlooked jurisdiction. However, Ross is just the latest addition to an excellent management team at Caledonia and at Blanket, which includes Mr James Mufara who joined us as COO in May last year. They are great recent additions to the team, but I would highlight that we already had very good-calibre individuals across many of our functions. Caledonia’s senior management is focused on improving operating efficiencies across the entire business as well as implementing our growth strategy.

The commissioning of the Central Shaft at Blanket Mine was a significant milestone. How has this impacted production capacity, operational efficiencies, and the overall outlook for Blanket Mine?

The commissioning of the Central Shaft has been transformative for Blanket Mine and allowed us to increase production from approximately 40,000 ounces to about 75- 80,000 ounces per annum. More importantly, Central Shaft has also given us the operational flexibility to restart deep-level exploration at Blanket. Last year we doubled Blanket’s reserves, after which Blanket’s mine life was extended out to 2041. Exploration continues at Blanket – at depth, in the shallower areas of the existing mine footprint and on other areas within Blanket’s lease area that are not currently being mined. I am confident that Blanket can maintain production at the current level for many decades to come. Depending on exploration success, it may be possible to increase Blanket’s production above 80,000 ounces per annum.

How do you view Zimbabwe’s gold mining sector evolving over the next 3 to 5 years, and what role do you envision Caledonia playing in this transformation?

Zimbabwe’s gold industry has been starved of capital for many decades: notwithstanding the current high gold price, many of Zimbabwe’s gold mines are struggling to survive due to a lack of historic investment. Large amounts of capital – hundreds of millions of dollars – are needed to recapitalise the industry and to fund new projects. Caledonia has already demonstrated that Zimbabwe can attract meaningful investment. In fact, we’ve raised more equity on the VFEX than on the NYSE. But this is not enough. International gold investors recognise that Zimbabwe has massive potential for world-class gold projects; it is also helpful that many other African Jurisdictions that were previously favoured by investors are now regarded as being unattractive. Zimbabwe could turn this situation to its advantage with a few policy initiatives – the most important of which is the liberalisation of the foreign exchange market. Investors will continue to be cautious about investing dollars into Zimbabwean projects if they are not confident they will get a dollar-denominated return. It’s basically a global competition. Mining companies have choices, and Zimbabwe must compete globally for discretionary investment. With the right reforms, Zimbabwe has every opportunity to emerge as a preferred mining jurisdiction, particularly as investors grow wary of instability elsewhere on the continent.

Finally, what message would you like to share with stakeholders and delegates attending the Chamber of Mines Annual Mining Conference and Exhibition regarding Caledonia’s commitment to Zimbabwe and the mining industry at large?

Caledonia is fully committed to Zimbabwe. All our projects are in Zimbabwe, 100% of our employees at Blanket Mine are Zimbabweans, we have increased the representation of Zimbabweans in the senior management team and on our Board and an increasing proportion of Caledonia’s shares are owned by  Zimbabweans. Over the last 10-12 years we have demonstrated a commitment to share the benefits of our success with all stakeholders: 34% of Blanket mine is owned by Zimbabweans, including the government, the Gwanda community and Blanket’s employees.  We are excited at the prospects to grow Caledonia’s business in Zimbabwe – for the benefit of all stakeholders.

Since we acquired Blanket in 2006, we have proven that responsible, long-term investment in Zimbabwe is possible. We now want to build on that foundation. I see strong growth for Caledonia and the wider industry. I believe that Zimbabwe and the Zimbabwe gold industry in particular has a unique opportunity to take advantage of current conditions – it requires a constructive and coordinated approach by the industry and government to unlock this opportunity.

This interview first appeared in the Mining Zimbabwe Magazine edition 70, which was first distributed at the 2025 Chamber of Mines Annual Mining Conference and Exhibition

Making Sense of Zimbabwe’s New Chrome Mining Policy

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Making Sense of Zimbabwe’s New Chrome Mining Policy

From Resource Control to Industrial Value Addition

Zimbabwe has introduced a pivotal policy linking the issuance of chrome mining titles exceeding 100 hectares directly to the expansion or establishment of ferrochrome furnace capacity. Alongside intensifying enforcement of the “use it or lose it” principle, these measures form part of a strategic effort to boost local beneficiation in the chrome sector.

By Ryan Chigoche

Announced yesterday by Mines and Mining Development Minister Winston Chitando, the government’s move targets two key challenges: curbing speculative mining title holding and accelerating the growth of local ferrochrome production.

This approach aligns with Zimbabwe’s broader plan to add value locally to its vast chrome ore reserves, creating jobs, increasing economic benefits, and strengthening industrial capacity.

To appreciate the significance of this new policy, it helps to understand Zimbabwe’s role in the global chrome ore market.

South Africa holds the largest reserves worldwide—about 72%, primarily concentrated in UG2 ore bodies, where chrome ore is often produced as a by-product of platinum mining.

Zimbabwe follows as the second-largest holder with approximately 12%, and together, the two countries control roughly 84% of the world’s chromium reserves. Other producers such as Kazakhstan, Turkey, and India hold smaller reserves.

Most of the world’s chrome ore is processed into ferrochrome, a vital component in stainless steel production. Although chrome ore has other uses, ferrochrome remains the largest derivative product. Despite its significant reserves, Zimbabwe is notably absent from the list of top global producers of chrome ore—a reflection of deliberate government policy.

To encourage value addition, Zimbabwe has banned the export of raw chrome ore, focusing instead on exporting value-added ferrochrome. However, the country has yet to break into the top five ferrochrome producers—a gap the government is determined to close.

Minister Chitando explained that while the raw chrome export ban was intended to encourage local beneficiation, the country’s full potential remains untapped.

“Some investors have secured large chrome concessions without developing corresponding furnace capacity, limiting Zimbabwe’s ability to maximise the economic benefits of its mineral wealth,” he noted.

To address this, the government is stepping up enforcement of the “use-it-or-lose-it” principle. Mining titles that are not effectively utilised, particularly those lacking associated furnace capacity, face forfeiture. Recognising the significant investment required to build furnace capacity, the government considers the need for a stable resource supply to sustain such operations for about 25 years an important factor in applying this policy.

“To explain clearly: when you look at most minerals, including chrome operations, you have mining and you also have processing capacity, which are the furnaces. Generally, as a rule of thumb, when furnaces are established, you want to ensure that you have sufficient resources for about 25 years to sustain the feed during that period and recover the investment in the processing capacity, which is expensive,” Minister Chitando said as he addressed the media today.

“So when we talk of use-it-or-lose-it, yes, the government is sensitive to producers or investors who invest in ferrochrome capacity, but they want to be assured of feed to supply that processing capacity. That’s factored in when considering the use-it-or-lose-it principle. This will be intensified. Secondly, with immediate effect, all chrome titles above 100 hectares will only be issued where they are directly going to expand current furnace capacity or feed into current or new furnace capacity.”

The government’s insistence that large chrome mining titles be tied to smelting capacity is intended to prevent resource hoarding without industrial development. Minister Chitando stressed that the policy is inclusive of smaller-scale operations as well.

“We would like investors to come, get resources, and establish furnaces. You get very small furnaces, too. If you look at the profile of Zimbabwe’s ferrochrome producers, you have large producers like Afrochine doing about 180,000 tons, and producers ranging as low as 3,000 tons. So you can have fairly small furnaces. The whole idea is to say, come investors, apply for title, and at the same time set up furnaces so that we unlock the potential in the ferrochrome industry.”

Together, the 100-hectare smelting capacity requirement and the strengthened “use-it-or-lose-it” enforcement are twin pillars of Zimbabwe’s effort to transform its mining sector. By tying mining rights to real production and value addition, these measures aim to attract investors willing to commit to local beneficiation, securing long-term economic benefits, job creation, and industrial diversification.

This policy framework supports Zimbabwe’s broader ambition to become an upper-middle-income economy by moving beyond simple mineral extraction to industrial manufacturing. Minister Chitando emphasised that the government’s decisions send a clear message: mining rights must translate into real production and value addition. With immediate enforcement, the government expects a surge in investor interest in smelting capacity and a more vibrant ferrochrome sector.

Ultimately, Zimbabwe’s refined approach positions the country to better leverage its abundant chrome ore reserves, enhance its ferrochrome output, and strengthen its standing in the global minerals market.

No Chrome Titles Above 100ha Without Smelting Capacity: Chitando

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No Chrome Titles Above 100ha Without Smelting Capacity: Chitando

The issuance of new chrome mining titles exceeding 100 hectares will now, with immediate effect, be contingent upon the development or expansion of furnace capacity, Mines and Mining Development Minister Winston Chitando has announced.

By Ryan Chigoche

This directive forms part of Zimbabwe’s broader value addition strategy aimed at maximising economic benefits from its mineral resources, particularly through promoting local ferrochrome production. The government’s move seeks to bolster the ferrochrome industry in Zimbabwe, a critical sector for the production of stainless steel. The focus is on enhancing local processing capacities rather than relying on raw material exports to external markets.

During the recent Post-Cabinet briefing, Minister Chitando elaborated on this new directive, stating:

“On this broader value addition drive on chrome ores, the issuance of new titles of chrome ores above 100 hectares will only be allowed where it is associated with the development or expansion of furnace capacity. Previously, and traditionally, investors would come seeking chrome ore concessions, and they would be considered on their capacity to mine. But with immediate effect, concessions of chrome above 100 hectares will only be considered if they are directly linked with the development of ferrochrome production capacity — once again, as part of the value addition programme.”

Zimbabwe currently has about 10 ferrochrome producers, with capacities ranging from 3,000 to 84,000 tonnes per annum, culminating in an estimated total production capacity of approximately 270,000 tonnes per annum. This capacity underscores the country’s potential to strengthen its position in the ferrochrome market through local beneficiation.

Further emphasizing the government’s commitment to efficient resource utilisation, Chitando highlighted the enforcement of the “use it or lose it” policy within the chrome sector. This policy aims to boost production and curb speculative ownership of mining titles.

According to the provisions of the Mines and Minerals Act, mining titles should not be held for speculative purposes, with a clear emphasis that every holder of a mining title, claim, or special grant should produce on that mining title.

The law further provides for monthly returns, where a registered mine manager or representative of a mine location has to submit monthly returns reflecting production from the particular claim or mine title.

Chitando warned that failure to produce optimally, or non-production, would result in the forfeiture of mining titles under this principle.

“In an effort to ensure that Zimbabwe gets optimum value from its minerals and that minerals play their rightful place in the development of the country, the Ministry will be accelerating the implementation of the ‘use it or lose it’ principle where there is zero or suboptimal production.”

Zimbabwe’s mining sector has increasingly embraced value addition by processing raw minerals locally rather than exporting them unprocessed.

This strategic shift aims to enhance economic benefits, create jobs, and build local industrial capacity.

Chrome ore remains one of Zimbabwe’s key mineral resources and a major export commodity.

However, the global market value of raw chrome ore is significantly lower than that of ferrochrome, an alloy produced by smelting chrome ore and iron.

Ferrochrome is a vital material in stainless steel manufacturing and commands substantially higher prices internationally.

To support industrialisation and maximise economic returns, Zimbabwe has been promoting downstream processing through local ferrochrome production.

This approach is designed to transform the mining value chain from mere extraction to manufacturing, thereby ensuring greater domestic beneficiation.

Historically, some investors acquired large chrome mining concessions without investing in ferrochrome smelting capacity, limiting the country’s ability to fully benefit from its mineral wealth.

The government’s renewed emphasis on linking mining rights to ferrochrome production capacity addresses this challenge, encouraging greater investment in smelting infrastructure.

Ultimately, this policy shift aligns with Zimbabwe’s broader goal of fostering industrial development through value addition in mining. It aims to diversify the economy and increase the country’s share of the mineral value chain, positioning ferrochrome production as a cornerstone for sustainable growth.

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