Mining ZimbabweLatest Mining News, Policy and Industry Updates

Kavango Resources, a London Stock Exchange-listed mining exploration group, has expressed concerns about the risks its overseas projects face, particularly in jurisdictions outside the UK. The company is worried about the potential impacts of political and economic instability, changes to regulatory frameworks, and the uncertainty surrounding licences and permits, all of which could affect its operations in Zimbabwe.

By Ryan Chigoche

Kavango Resources, a London Stock Exchange-listed mining group, has raised concerns about the risks its projects face in Zimbabwe. These risks stem from the country’s political, economic, and regulatory challenges, which could affect the company’s operations.

Kavango Resources, an exploration company focused on base and precious metals in Southern Africa, is developing gold deposits in Zimbabwe. The company aims to bring these deposits into production using modern mechanised mining methods.

In Zimbabwe, Kavango owns three projects: Hillside, Nara Gold, and Leopard. Hillside, covering 503 hectares with 44 gold claims, is the company’s primary focus due to its high potential. The Nara Gold project, located near Bulawayo, includes four mines that historically produced over 90,000 ounces of gold. Leopard, which consists of two claim groups, has a recorded output of 2,000 ounces.

However, operating in Zimbabwe comes with its challenges. Kavango has expressed concerns about the country’s regulatory environment, which is often subject to changes. The company relies heavily on a stable legal and fiscal framework, making these uncertainties a significant risk to its operations.

In its 2024 strategic report, CEO Ben Turney commented: “The licences and operations of the Group are in jurisdictions outside the United Kingdom and accordingly there will be a number of risks which the Group will be unable to control.” He further added, “Whilst the Group will make every effort to ensure it has robust commercial agreements covering its activities, there is a risk that the Group’s activities will be adversely affected by economic and political factors such as the imposition of additional taxes and charges, cancellation or suspension of licences, and changes to the laws governing mineral exploration and operations.”

Turney also highlighted the uncertainty surrounding its licences and permits, noting that these could be withdrawn or changed at any time. “The Group’s activities will be dependent upon the grant of appropriate licences, concessions, leases, permits, and regulatory consents that may be withdrawn or made subject to limitations. There can be no assurance that they will be granted or renewed or, if so, on what terms. There is also the possibility that the terms of any licence may be changed other than as represented or expected.”

Despite these challenges, Kavango Resources is committed to advancing its Zimbabwean projects. The company raised £6.5 million to fast-track development and secure financial resilience. Furthermore, Kavango secured a US$5 million interest-free loan from Zimbabwean pension funds to help develop its gold mines and build a processing plant at the Hillside Project.

While Kavango has made significant progress, the political and economic risks in Zimbabwe remain substantial. The company will need to carefully navigate these challenges to ensure the success of its mining ventures in the region.

The Zimbabwe Miners Federation (ZMF) is set to enter into a transformative partnership with Dinson Iron and Steel Company (DISCO), marking a new era of collaboration between Zimbabwe’s burgeoning steel manufacturing sector and the nation’s influential small-scale mining industry.

By Rudairo Mapuranga

Speaking during a recent tour of DISCO’s state-of-the-art facility in Manhize, ZMF President Henrietta Rushwaya emphasised that Zimbabwe’s mining sector, particularly its small-scale players, will no longer rely on imported steel machinery and tools. She announced that ZMF will soon sign a Memorandum of Understanding (MoU), leading to a formal agreement positioning ZMF as a key consumer and distributor of DISCO’s steel products.

“This is the right time for us to engage with Dinson Iron and Steel Company,” said Rushwaya. “Gone are the days when we imported hammer mills, ball mills, and other steel products from outside Zimbabwe. ZMF represents a significant market for these products, and we are committed to supporting local industry.”

According to Rushwaya, ZMF will mobilise its vast network of small-scale miners and the broader public to consume locally manufactured steel, which she said is “cheaper, stronger, and better” than imported alternatives. The collaboration is expected to spur growth within Zimbabwe’s industrial ecosystem by strengthening backward linkages between mining and manufacturing.

“Our small-scale miners are eager to access affordable, high-quality equipment. This partnership guarantees supply, improves reliability, and most importantly, puts money back into the Zimbabwean economy,” she said.

Rushwaya hailed DISCO as one of Zimbabwe’s most strategic industrial assets, with the capacity to revolutionise the country’s manufacturing and export potential.

“Dinson is a game-changer not just for the mining sector but for Zimbabwe’s re-industrialisation as a whole. For the first time in years, Zimbabwe will not just stop importing steel—we will begin exporting it. That speaks volumes about where our economy is headed,” Rushwaya said.

The move aligns with Zimbabwe’s vision of becoming an upper-middle-income economy by 2030 through local value addition and beneficiation. As the mining sector contributes over 70% to foreign direct investment and 80% to exports, strengthening domestic industrial capacity will further anchor the country’s development strategy.

Invictus Energy Limited, listed on both the Australian and Victoria Falls stock exchanges, has been granted approval by Zimbabwe’s Environmental Management Agency (EMA) to proceed with pilot production activities at its Cabora Bassa Project, following a successful Environmental and Social Impact Assessment (ESIA) for the quarter ending March 31, 2025.

By Ryan Chigoche

This clearance paves the way for the company to begin commercial development of the Mukuyu Gas Field and other nearby discoveries, positioning Invictus as a potential solution to Zimbabwe’s ongoing energy deficit.

According to the company’s quarterly update, the ESIA builds upon a thorough 2019 assessment—one of the most detailed environmental reviews ever carried out in the country. This approval marks a turning point in the company’s efforts to unlock the commercial potential of natural gas in the Cabora Bassa Basin.

Invictus is also spearheading a Gas-to-Power initiative at Eureka Gold Mine in partnership with Dallaglio, which owns the mine, and Spanish energy firm Himoinsa SA.

The project plans to convert natural gas from Mukuyu into liquefied form and transport it to the mine to provide a stable and cost-effective power supply, reducing reliance on the national grid.

Initial studies suggest the project could generate electricity at over US$10 per gigajoule, a rate that is competitive with current power tariffs, underscoring the economic strength of the venture.

This initiative is not only aimed at powering the Eureka Mine but could also serve as a regional energy source, especially as southern Africa continues to struggle with energy shortages.

Beyond this, Invictus is exploring further gas extraction opportunities within its broader license area, including Special Grant 4571 and Exclusive Prospecting Orders 1848 and 1849, as it looks to expand the scale of the project.

The company is currently focused on conducting detailed feasibility studies and finalising technical plans for pilot production. It is also reviewing technology partners for gas liquefaction and transportation logistics, in collaboration with Himoinsa.

By tapping into local gas reserves, Invictus aims to lower energy costs, improve electricity reliability, and stimulate industrial growth in Zimbabwe, where power outages remain a major obstacle.

This approach also supports the global transition toward cleaner energy sources, as natural gas produces significantly fewer emissions than coal or diesel fuels that currently dominate Zimbabwe’s energy landscape.