Mining ZimbabweLatest Mining News, Policy and Industry Updates

A mine bus driver was injured on Tuesday after the vehicle was struck by a train at a level crossing in Hwange, following an apparent attempt to beat the oncoming locomotive.

According to the National Railways of Zimbabwe (NRZ) the accident occurred at the Old Hwange Number 2 level crossing when the driver reportedly tried to race across the tracks but failed to clear the crossing before the train arrived. The bus was hit, resulting in injuries to the driver.

The injured driver was taken to the hospital for treatment and is reported to be receiving medical care. Authorities have since wished him a speedy recovery.

In the aftermath of the incident, the National Railways of Zimbabwe (NRZ) reiterated that motorists are legally required to stop at all level crossings, even when no train is visible, warning that failure to do so can have serious and potentially fatal consequences.

In a significant corporate development, Australian-listed Invictus Energy Limited (ASX: IVZ) has announced the immediate termination of its Subscription Agreement with African Management Holdings (AMH), citing a repudiation of contractual obligations by the latter, Mining Zimbabwe can report.

By Rudairo Mapuranga

The decision, approved by the Invictus Board and announced on 27 January 2026, brings a sudden end to negotiations over a strategic investment that was intended to support the company’s operations in the Cabora Bassa Basin.

According to the announcement, it became apparent to Invictus that AMH “does not intend to satisfy its contractual obligations.” Invictus stated that AMH’s conduct constituted a repudiation of the agreement, leading the company to accept that repudiation and terminate the deal outright.

“Invictus has ceased all discussions with AMH, and no further negotiations or transactions are being progressed between the parties,” the release stated definitively.

The Board framed the termination as a necessary move to safeguard the company. They emphasised that ending the discussions was critical “to protect the Company’s assets, governance framework, and the interests of shareholders, and to ensure continued compliance with Australian regulatory requirements and the Company’s governance standards.”

This focus on governance follows a recent strengthening of Invictus’s executive team, including the January 2026 appointment of CFO Vicky McLellan as Joint Company Secretary alongside Gabriel Chiappini, to enhance regulatory and compliance oversight.

Despite the setback, Invictus struck a forward-looking tone. The company stated it is “disappointed” but believes the termination is in the best long-term interests of its shareholders.

Attention is now firmly on alternative options. “The Company remains focused on advancing its core asset portfolio in the Cabora Bassa Basin and continues to actively engage with a number of alternative strategic and funding counterparties,” the announcement read.

The Board expressed confidence, noting it is “encouraged by the level of interest being received” and believes Invictus is “well positioned to progress value-accretive transactions and partnerships” that support its planned work programme at Mukuyu and other prospects within SG 4571.

The collapse of this funding deal represents a hurdle for Invictus, requiring a swift pivot to secure alternative financing. However, the firm language on governance and the proactive termination suggest a board prioritising operational control and regulatory compliance. The stated high level of external interest will be crucial to monitor, as securing a new, reliable partner is the immediate next step for the company’s ambitious Zimbabwean exploration plans.

The Zimbabwe Consolidated Diamond Company (ZCDC) is advancing its Area 3 Diamonds Processing Plant Expansion in Chiadzwa, with the diamond recovery section slated for completion by 30 August 2026, Mining Zimbabwe can report.

By Rudairo Mapuranga

This critical infrastructure project aims to enhance diamond recovery, boost foreign currency inflows, and create employment, even as the industry grapples with calls for fiscal reform and stricter environmental regulations.

The Area 3 expansion is a strategic response to the shifting geology of the Marange fields. The easily accessible alluvial diamonds are largely depleted, forcing miners to tackle deeper, harder conglomerate deposits that are more expensive and complex to process. The new plant is engineered specifically for this challenge. This focus on deeper, harder-rock mining aligns with ZCDC’s long-stated strategy to transform into a highly mechanised firm capable of extracting these deeper gemstones.

While specific production targets for Area 3 are not detailed in public reports, the project fits within ZCDC’s broader ambition to boost national output significantly. The company has previously stated goals of ramping up production to 10 million carats annually, leveraging Zimbabwe’s substantial 56 million-carat diamond reserve base. Success in Area 3 is crucial for maintaining the country’s trajectory toward joining the prestigious “one tonne club” of top diamond-producing nations.

Three core economic benefits for Zimbabwe justify the expansion:

Improved Diamond Recovery: The new, modern plant is expected to deploy advanced technology to increase the efficiency and volume of diamonds extracted from the challenging conglomerate ore, directly boosting output.

Enhanced Foreign Currency Inflows: As Zimbabwe’s mining sector contributes over 60% of foreign earnings, every increase in diamond production translates to vital hard currency for the national economy. More recovered carats mean more auction revenue.

Employment Creation: The construction and operation of a major new plant will generate jobs. This aligns with ZCDC’s history of sourcing about 45% of its workforce from surrounding communities, offering a direct local benefit.

However, the path to achieving these benefits is fraught with significant headwinds that the project must navigate.

The Fiscal Pressure Point

The most urgent challenge comes from the industry’s unified call for fiscal reform. Diamond producers, including ZCDC, argue that Zimbabwe’s fixed 10% royalty rate is unsustainable, one of the highest globally, and fails to account for market volatility. With rough diamond prices plummeting and competition from lab-grown diamonds intensifying, this fixed cost severely squeezes margins.

The industry’s proposal is a sliding-scale royalty model, similar to the system recently implemented for gold, where the government’s take adjusts with profitability or price. For the capital-intensive Area 3 expansion, such a reform could mean the difference between a viable long-term investment and a struggling operation, especially during market downturns.

The Environmental Imperative

Simultaneously, the regulatory landscape is tightening. The forthcoming Responsible Mining Initiative (RMI) Part 2 promises “severe penalties, including loss of mining titles” for environmental violations. This adds a critical layer of operational cost and compliance necessity for the new plant.

This is not an abstract concern for the Chiadzwa community. Past mining by other companies has left a legacy of unreclaimed pits and slime dams filled with stagnant water, leading to sharp rises in malaria and posing deadly hazards to villagers. The Area 3 project will be a high-profile test of whether new development can break from this destructive past. The RMI Part 2 framework will require rigorous rehabilitation and mine-closure plans from the start, shifting compliance from voluntary to mandatory.

ZCDC brings relevant experience to this challenge. Under former CEO Mark Mabhudhu, the company executed a notable turnaround, moving from perennial losses to profitability by changing processes and adopting new technology. During the COVID-19 pandemic, ZCDC effectively used drone technology and remote surveillance for security and community awareness, demonstrating an ability to integrate advanced systems. Applying this technological mindset to environmental monitoring and efficient resource recovery will be essential for Area 3’s success under the new regulatory regime.

The Area 3 expansion is a microcosm of the entire Zimbabwean diamond sector’s dilemma. The unified call from ZCDC, Anjin, Alrosa, and RZM Murowa for a developmental partnership with the state underscores a critical juncture. They seek a fiscal framework that incentivises the very investment needed for projects like Area 3, warning that the current system “risks stifling the goose that lays the golden eggs”.

The government’s ambition to build a multi-billion-dollar annual export sector is clear. Achieving it requires balancing immediate revenue collection with long-term sector growth and environmental sustainability.

As the deadline for the diamond recovery section nears, the progress of the Area 3 plant will be closely watched. Its success or failure will hinge not just on engineering prowess but on the broader ecosystem in which it operates:

• Will the fiscal regime evolve to support capital-intensive, deep-level mining?
• Will the formidable new environmental regulations be enforced consistently and transparently?
• Can the project deliver on its promises of economic benefit while unequivocally protecting the community and ecosystem?

The completion of the Area 3 expansion by August 2026 will offer a powerful indication of whether Zimbabwe’s diamond industry can transform into a modern, responsible, and globally competitive sector or remain constrained by the challenges of the past. The ball, as the industry report states, is in the policymakers’ court.

Gold prices surged beyond the US$5,000 per ounce mark for the first time in history this week, extending a powerful rally that has reshaped global precious metals markets and opened the door to a significant fiscal windfall for major producing countries, including Zimbabwe, Mining Zimbabwe reports.

By Ryan Chigoche

The metal briefly traded above US$5,100 an ounce in early trading, capping a gain of more than 60 per cent over the past year as investors intensified their search for safe-haven assets.

The rally has been driven by a combination of geopolitical tension, economic uncertainty, and shifting monetary policy expectations.

Renewed trade frictions involving the United States, prolonged conflicts in Ukraine and the Middle East, stubborn inflation, and expectations of interest rate cuts by major central banks have all undermined confidence in riskier assets.

In response, investors have increasingly turned to gold, pushing prices into uncharted territory.

For Zimbabwe, the record price carries immediate fiscal consequences.

Under a tiered royalty regime introduced by the Ministry of Finance, gold royalties are directly linked to international prices.

Once gold trades at or above US$5,000 per ounce, the royalty rate rises to 10 per cent, the highest band under the framework.

With bullion now above that threshold, the elevated rate is set to be triggered, positioning the government to pocket a significantly larger share of gold revenues.

The revised royalty structure followed consultations with mining companies after earlier proposals raised concerns about investment viability.

Authorities argued that the final model protects producers during normal market conditions while allowing the state to capture exceptional gains during periods of unusually high prices. The current rally represents the first major test of that approach.

Gold remains Zimbabwe’s largest foreign currency earner and one of the most critical pillars of the economy.

Export receipts already run into the billions of US dollars annually, and analysts say the shift from a 5 percent to a 10 percent royalty at current prices could translate into hundreds of millions of dollars in additional revenue for the Treasury, depending on production volumes and the level of formal deliveries.

The windfall comes at a time when the government is under pressure to strengthen public finances and stabilise the economy. In previous commodity upcycles, Zimbabwe struggled to fully benefit from rising mineral prices due to low royalty rates, tax leakages, and high levels of informal production.

Globally, gold’s rally has been reinforced by strong central bank buying, a weakening US dollar, and continued concerns about inflation and financial stability.

Unlike equities or bonds, gold is not tied to corporate earnings or sovereign debt, making it an attractive hedge during times of uncertainty. Industry data indicate that just over 216,000 tonnes of gold have ever been mined, highlighting the metal’s relative scarcity.

Despite the bullish momentum, analysts caution that gold prices remain vulnerable to sudden shifts in sentiment. Any easing of geopolitical tensions or stronger-than-expected economic data could introduce volatility.

For Zimbabwe, this underscores the importance of translating the current price spike into lasting fiscal gains while market conditions remain favourable.

As gold continues to trade at historic highs, attention is now turning to how effectively Zimbabwe can harness the opportunity.