Mining ZimbabweLatest Mining News, Policy and Industry Updates

• Namib Minerals Charts Five-Step Pathway to Redwing Restart as DFS Technical Programme Secures Full Funding

Nasdaq-listed Namib Minerals has laid out a defined five-step pathway and targeted milestone schedule for the restart of the historic Redwing Mine in Penhalonga while confirming that the technical programme of the Definitive Feasibility Study (DFS) is now fully funded through to completion, Mining Zimbabwe can report.

By Rudairo Mapuranga

The DFS, being conducted by WSP Global, comprises the SEC S-K 1300-compliant feasibility study for Redwing and is expected to conclude in early Q1 2027. The technical programme covers engineering, metallurgical, geotechnical, hydrological, environmental, and financial modelling workstreams, validating the technical and economic parameters of the restart.

The restart follows five sequential steps, with each step gating the next:

Step 1 – Dewatering: A staged pumping programme to safely access underground workings. It is underway and on track, with expected completion by Q4 2026.

Step 2 – DFS Technical Programme: Fully funded through to completion and expected to conclude in early Q1 2027.

Step 3 – Resource Definition and Bankability: An 8,750-metre surface exploration drilling programme advancing the DFS to full bankability. It will commence upon the close of the next funding stage and is expected to conclude in Q4 2027.

Step 4 – Construction: Mobilisation of staged restart capital and execution of the construction and development programme upon completion of the DFS and a positive restart decision.

Step 5 – Restart: Commissioning and a phased return to production at the redesigned operation.

Two parallel site workstreams are already underway as enablers: power infrastructure upgrades, targeting Q3 2026, and refurbishment of existing equipment, also targeting Q3 2026.

Creative Funding Structure Unlocks DFS Progress

The company has funded the DFS technical programme from internally generated cash flow to date. However, its wholly owned subsidiary, Bulawayo Mining Company, which owns and operates the producing How Mine, has now secured a US$5.0 million, 36-month non-dilutive term facility from Ecobank Zimbabwe Limited.

The facility, which finances capital works at How Mine, is expected to be serviced entirely from How Mine’s existing production revenue. With How Mine’s capital works financed on dedicated terms, the internally generated cash flow previously absorbed by those works has now been released and committed to funding the DFS technical programme through to completion.

Step 3: The Critical Gateway

The company regards Step 3 as a critical milestone. Its purpose is to assess whether Redwing’s mineral resource base, together with its significant strike extent and potential down-dip extensions, supports a redesign of the operation into a larger-scale, sustainable mining operation.

Step 3 workstreams include resource expansion and conversion drilling, geotechnical and metallurgical programmes, Front-End Engineering Design (FEED), capital and operating cost refinement, and environmental and permitting readiness.

The company continues to engage with strategic investors, lenders, and development finance institutions to secure funding for Step 3, consistent with its phased and systematic funding approach.

The asset currently hosts 1.18 million ounces of gold in measured and indicated resources and has historically produced roughly 650,000 ounces. The company has earmarked between US$300 million and US$400 million to revive the Redwing and Mazowe mines while expanding production at How Mine.

Redwing is expected to enter the execution phase with the pathway now defined, the DFS technical programme fully funded, and the milestone schedule published. The company will report progress against these milestones in each operational update.

Hwange Colliery Company Limited Holdings has commissioned its rehabilitated Coke Oven Battery at the Hwange Mining and Processing Company, marking the revival of coke production after operations ceased in 2014 and signalling a major shift towards value addition and beneficiation of Zimbabwe’s coal resources, Mining Zimbabwe can report.

By Rudairo Mapuranga

The milestone represents a significant transformation in the company’s strategy—from mining and selling raw coal to processing it into higher-value metallurgical coke that supports steel manufacturing and industrial growth.

“Today marks a defining milestone in the reconstruction and transformation journey of Hwange Colliery Company Limited Holdings with the successful commissioning of the rehabilitated Coke Oven Battery at our strategic business unit, Hwange Mining and Processing Company,” HCCL Holdings said in a statement.

“This commissioning is more than the revival of a production facility; it is a bold statement of HCCL Holdings’ commitment to beneficiating Zimbabwe’s vast coal resources, transforming them into higher-value metallurgical coke that supports steel manufacturing, drives industrial growth, and creates greater economic value.”

The project directly advances the aspirations of Zimbabwe’s National Development Strategy 2 (NDS2) by promoting value addition and beneficiation, strengthening domestic industrial capacity, reducing reliance on imports, enhancing export potential, and contributing to sustainable job creation.

From US$8 Million Project to Operational Facility

The coke oven battery, refurbished at a cost of approximately US$8 million, was 95 per cent complete by August 2025, with pre-heating tests beginning later that month. The battery needs to operate at temperatures of about 1,200 degrees Celsius, requiring 65 to 90 days to build up the necessary heat before coal can be introduced.

The plant is expected to produce 18,000 tonnes of metallurgical coke per month, bolstering cash flow, profits, and market competitiveness for HCCL while reinforcing Zimbabwe’s energy and steel industries.

Multi-Stream Revenue Generation

HCCL Administrator Munashe Shava previously highlighted that the project would revolutionise operations, moving the company beyond mere coal mining into high-value processing.

“What we are doing, as we already alluded to, is we are now not just mining coal and selling coal products. We are now producing coke,” Shava said in August 2025.

“We are now value-adding into coke, and not only that, we are also going to be processing by-products, tar into bitumen. We are also going to do gas recovery, and we are also going to do what we call further processing to get carbon black, which is a high-value product. So our revenue generation is now going to be multi-streamed, and we are excited about that.”

Supporting Underground Mining Expansion

The coke oven battery is directly supported by a US$60 million investment in HCCL’s underground coal mining project, a joint venture with China’s Zhongjin Investments designed to unlock the underground potential of Zimbabwe’s oldest colliery operation.

Two shafts have been drilled, each a kilometre deep at an inclination of 12 degrees. The company is already producing 600,000 tonnes per annum, with plans to increase production to 2.5 million tonnes next year and 3 million tonnes the following year.

The joint venture is expected to ultimately produce 1.8 million tonnes of coke per annum.

By-Products to Power 420MW Station

In an integrated approach, coal from the underground mine will be washed and delivered to the coke ovens. The gases produced during coking will be used to fire a power station with a combined generation capacity of 420 megawatts.

The project is expected to create numerous direct and indirect jobs, stimulate economic activity in the Hwange area, and strengthen Zimbabwe’s industrial value chain by reducing import dependency and increasing domestic beneficiation of coal resources.

Vice President Constantino Chiwenga previously described HCCL as a cornerstone of Zimbabwe’s economic development, noting that the pace of recovery has been “truly remarkable.”

The commissioning marks a significant step in HCCL’s reconstruction journey, transforming the company from mining coal to creating value, from reconstruction to transformation, and from potential to production.

As Zimbabwe pushes for greater domestic beneficiation of its natural resources under NDS2, HCCL’s revived Coke Oven Battery stands as a tangible demonstration of what is possible when strategic investment meets national development aspirations.

For a company that once faced an uncertain future, the commissioning is more than a production milestone—it is a declaration that HCCL is back, and it is here to stay.

Introduction

This topic deserves at least two comprehensive articles. For now, however, I shall focus on one critical aspect that has haunted the dreams of countless diaspora investors: how to retain control of your mining investment when you are thousands of miles away.

Three years ago, a colleague of mine, a successful businesswoman based in the USA called me with infectious enthusiasm. She had heard about Zimbabwe’s mining boom and, more importantly, about the Government’s new policies designed to support local investors in the sector. The timing seemed perfect.

Within weeks, she had secured mining claims and purchased equipment, including a small processing plant for ore extracted. She had committed her life savings to this venture. It was, by any measure, a bold and calculated investment. Then came the critical decision: she appointed her brother to manage the day-to-day operations. What could possibly go wrong? For months, her brother’s updates were remarkably consistent. Each call brought news of a “visible belt” of gold, tantalisingly close, yet always requiring just a bit more capital to access and extract.

One month became two. Two months became a year. Her life savings dwindled. Her patience evaporated. Yet the promised gold never materialised. She found herself trapped in a peculiar limbo: waiting for a return on investment that would never arrive, unable to intervene because she was an ocean away and increasingly aware that something had gone terribly wrong. But what, exactly, had gone wrong? Was it bad luck? Poor geology? Or was it something far more preventable?

In this article, I will share my perspective informed by sixteen years of legal practice on the specific legal safeguards you must put in place to protect your diaspora mining investment. More importantly, I will show you how to ensure that you retain absolute control of your mining operation, regardless of where you live or who manages it on the ground.

Summary of the safeguards

The fundamental problem facing diaspora miners is this: you are investing significant capital in an operation you cannot physically monitor. You are entrusting your money to a local manager or partner whom you may not know well. You are operating in a foreign legal system. And you are hoping that the person on the ground is acting in your best interests.

This is a recipe for disaster unless you put specific legal safeguards in place. These safeguards fall into five categories: corporate structure, contractual agreements, financial controls, operational transparency, and dispute resolution mechanisms.

A proper corporate structure ensures that you own the mining operation, not your local manager. A comprehensive contractual agreement specifies exactly what your manager can and cannot do. Financial controls ensure that every dollar is accounted for. Operational transparency ensures that you know what is happening on the ground in real time. And dispute resolution mechanisms ensure that if something goes wrong, you have a legal pathway to recover your investment.

Without these safeguards, you are vulnerable to mismanagement, theft, unauthorised spending, and complete loss of control.

Common nightmares experienced by Diasporas

My colleague’s story is not unique. I have seen variations of it dozens of times in my practice. There is the diaspora investor who appointed his cousin to manage the mine. The cousin spent $50,000 on a new vehicle “for operational purposes.” The vehicle was used for personal transport. When the diaspora investor objected, the cousin refused to return the money, claiming it was his compensation for managing the operation.

There is the diaspora investor who appointed a local mining partner. The partner secretly negotiated with a third party to sell the mining claim. By the time the diaspora investor found out, the claim had been transferred. The diaspora investor had no legal recourse because the claim was registered in the partner’s name.

There is the diaspora investor who sent monthly payments to her local manager. The manager deposited the money into a personal bank account, not a company account. When the diaspora investor asked for financial statements, the manager provided vague, undocumented figures. Years later, the diaspora investor discovered that the manager had been skimming 40% of the funds for personal use.

There is the diaspora investor who appointed a local director to his company. The director, without authorisation, took out a loan in the company’s name. The company is now liable for a debt the diaspora investor never authorised.

These are not hypothetical scenarios. They happen regularly. And they happen because diaspora investors fail to put legal safeguards in place.

What mistakes are you making?

If you are a diaspora investor, you are likely making one or more of these critical mistakes.

1. Registering the mining claim in someone else’s name

You appoint a local manager or partner and register the claim in their name “for convenience.” This is a catastrophic mistake. Once the claim is in their name, it is legally theirs. You have no ownership. They can sell it, mortgage it, or abandon it. You have no recourse.

2. Failing to formalise the management arrangement

You appoint your brother, cousin, or friend as manager based on a handshake and WhatsApp messages. There is no written agreement specifying their responsibilities, their authority, their compensation, or what happens if they breach their duties. When disputes arise, you have no contract to enforce.

3. Failing to establish financial controls

You send money to your manager, and they deposit it into a personal bank account. There are no monthly financial statements. There is no independent audit. There is no segregation of personal and business funds. You have no visibility into how your money is being spent.

4. Failing to establish operational transparency

You do not know what is happening on the ground. You do not receive regular operational reports. You do not know how much ore is being extracted. You do not know how much is being sold. You do not know the profit margins. You are flying blind.

5. Failing to establish a dispute resolution mechanism

If something goes wrong, you have no agreed-upon process to resolve the dispute. You end up in expensive, time-consuming litigation in Zimbabwe courts while your mining operation sits idle.

How can you be protected?

Here are the legal safeguards you must put in place before you send a single dollar to Zimbabwe.

1. Use a Private Limited Company

Do not register the mining claim in your personal name or in your manager’s personal name. Register it in the name of a Private Limited Company. You own the company through shares. Your local manager is an employee or director of the company, not the owner. This ensures that you retain legal ownership of the mining operation.

2. Draft a comprehensive management agreement

Before appointing a local manager, draft a detailed written agreement that specifies: their exact responsibilities, their authority limits, their compensation, how they will report to you, what financial controls they must follow, what happens if they breach the agreement, and how disputes will be resolved. This agreement must be signed and registered with the appropriate authorities.

3. Establish a company bank account

Do not allow your manager to use a personal bank account. Open a company bank account in Zimbabwe. All funds must be deposited into this account. All expenses must be paid from this account. You must receive monthly bank statements. This creates a clear audit trail.

Require monthly financial reporting

Your manager must provide you with detailed monthly financial statements showing: cash received from ore sales, all expenses incurred, the balance remaining, and a reconciliation to the bank account. These statements must be signed by your manager and verified by an independent accountant.

Require operational reports

Your manager must provide you with detailed monthly operational reports showing: the amount of ore extracted, the grade of the ore, the amount sold, the selling price, the profit margin, and any operational challenges. This allows you to monitor the actual mining operation, not just the finances.

6. Establish a tiered authority structure

Your manager should not have unlimited authority. Specify that expenses above a certain threshold (e.g. US$5,000) require your written approval. Specify that major decisions (e.g. hiring new staff, purchasing new equipment, changing operational procedures) require your approval. This prevents unauthorised spending.

7. Include a dispute resolution clause

Your management agreement should specify that any disputes will be resolved through mediation and arbitration, not litigation. This is faster, more confidential, and more enforceable than court proceedings.

8. Conduct regular site visits

Even though you live abroad, you should visit the mining site at least twice per year. Verify that the equipment exists and is in good condition. Verify that mining operations are actually taking place. Verify that the financial statements match the operational reality. A site visit often reveals problems that financial statements hide.

Wither profitability?

You may be wondering: if I put all these safeguards in place, will my mining operation still be profitable?

The answer is yes. In fact, these safeguards will make your operation more profitable because they eliminate waste, prevent theft and ensure that your manager is focused on maximising production and profit. The safeguards do not prevent your manager from earning a good income. They simply ensure that the income is earned through legitimate operational profit, not through skimming funds or misusing company resources.

A well-managed mining operation with proper safeguards in place can generate excellent returns. A poorly managed operation with no safeguards will generate nothing but losses.

The choice is yours. You can either invest the time and money upfront to establish proper safeguards, or you can invest the time and money later to recover from fraud and mismanagement.

In conclusion

My colleague in the USA eventually recovered part of her investment through litigation. However, it took three years, cost her US$50,000 in legal fees, and she lost the opportunity to develop the mining operation further. The mining claim was eventually forfeited to the State because it was not actively worked during the dispute.

She learned a hard lesson: legal safeguards are not optional. They are essential.

If you are a diaspora investor considering investing in a Zimbabwe mining operation, do not make her mistake. Before you send a single dollar, put these safeguards in place. Register the claim in a company you control. Draft a comprehensive management agreement. Establish financial controls. Require operational transparency. Include dispute resolution mechanisms.

These safeguards will not guarantee success. Mining is inherently risky. They will, however, protect you from the most common causes of diaspora mining failure: mismanagement, theft, and loss of control. Your investment is too important to leave to chance. Protect it with proper legal safeguards.

Namatirai Ruzvidzo is a registered Legal Practitioner, Conveyancer and Notary Public. She possesses over 15 years specializing in Commercial law, Mining law and Property law. She practices in Avondale, Harare under the Law Firm Ruzvidzo Legal Counsel. She can be reached on +263 784 228 534 or by email: [email protected], copying [email protected]

• Small-Scale Miners Push for New Lending Model to Unlock Mining Growth

Zimbabwe’s young miners are calling for a radical overhaul of lending practices, urging financial institutions to assess mining projects on their production potential rather than traditional collateral requirements that they say continue to shut out emerging entrepreneurs, Mining Zimbabwe can report.

By Ryan Chigoche

The proposal emerged during a dialogue on access to finance for artisanal and small-scale miners organised by planetGOLD Zimbabwe, where stakeholders examined ways of closing the long-standing financing gap facing the sector.

Speaking at the meeting, Young Miners Foundation Chief Executive Officer Payne Farai Kupfuwa said conventional lending models were built around established mining companies with fixed assets, leaving many young miners unable to secure capital despite having viable operations and the capacity to increase production.

“As young miners, we should not be considered based on what we already have, but on the potential that we have to extract more minerals through financing,” he said.

Kupfuwa argued that banks and other financiers should broaden their credit assessment criteria to include production history, operational performance, and growth prospects, particularly for youth-led mining enterprises that often lack title deeds or other forms of conventional collateral.

The call comes as access to affordable finance remains one of the biggest barriers to growth in Zimbabwe’s artisanal and small-scale mining sector. While the segment contributes a significant share of the country’s gold output, many miners struggle to raise capital to invest in equipment, expand production, and improve operational efficiency because they fail to meet traditional lending requirements.

Beyond financing, Kupfuwa said greater formalisation and professionalisation of artisanal and small-scale miners would improve their ability to access alternative sources of capital. Strengthening governance and business practices, he said, would increase confidence among lenders while opening the door to innovative financing models tailored to the realities of small-scale mining.

He also linked the financing challenge to Zimbabwe’s drive towards more responsible mining, saying limited access to capital is slowing the adoption of mercury-free gold processing technologies.

While cleaner processing methods are becoming increasingly important as the country seeks to reduce the environmental and health risks associated with mercury use, the high cost of acquiring modern equipment remains beyond the reach of many young miners.

“Most of the youth are setting up their mining enterprises. They need to be assisted even from the start, even without titles. There can be evidence of production track records and other proof showing that a young person is already producing,” Kupfuwa said.

He said financing products should be co-designed with miners to reflect the realities of the sector, enabling young entrepreneurs to invest in safer technologies, increase productivity, and participate more meaningfully across the mining value chain.

The discussions form part of broader efforts by government, financial institutions, and development partners to improve financial inclusion within Zimbabwe’s artisanal and small-scale mining sector. As the country pursues higher mineral output and more sustainable mining practices, stakeholders say expanding access to appropriately structured finance will be critical to unlocking the growth potential of the next generation of miners.

• Government Moves to Overhaul Mining Loan Fund to Widen Access for Small-Scale Miners

The Ministry of Mines and Mining Development has begun overhauling the Mining Industry Loan Fund (MILF), with authorities reviewing its mandate and lending criteria in a bid to make the facility more accessible to Zimbabwe’s artisanal and small-scale miners, Mining Zimbabwe can report.

By Ryan Chigoche

The review targets a long-standing financing gap that has left many miners unable to secure affordable capital for mechanisation, mine development, and business expansion despite the sector’s growing contribution to national gold production.

Speaking to Mining Zimbabwe, Mining Industry Loan Fund Manager Ranga Mhazo said reforming the facility had become an urgent priority to ensure it better reflects the realities of Zimbabwe’s mining sector.

“The transformation of the fund is critical and very urgent,” Mhazo said. “We are reviewing the mandate of the fund as well as the eligibility criteria so that it becomes more inclusive and removes many of the challenges faced by our miners. At the same time, we must remember that this is a revolving fund and beneficiaries have to repay their loans so that the fund remains sustainable.”

The Mining Industry Loan Fund was established to provide affordable financing and equipment to small-scale miners, helping them develop into medium- and eventually large-scale operations. However, miners have for years complained that restrictive eligibility requirements, limited funding, and cumbersome application processes have prevented many deserving operators from accessing the facility.

The latest review builds on previous government efforts to strengthen the fund, including a US$5 million recapitalisation aimed at increasing lending capacity. Authorities now hope that revising the fund’s operational framework will improve its effectiveness and broaden its reach.

The reforms come at a time when access to affordable finance remains one of the biggest constraints facing Zimbabwe’s artisanal and small-scale mining sector. Limited access to capital has restricted investment in modern equipment, mine development, exploration, and safer mining technologies, slowing efforts to improve productivity and formalise mining operations.

The reforms are expected to support the government’s broader efforts to formalise the artisanal and small-scale mining sector, which consistently accounts for the majority of Zimbabwe’s gold deliveries to Fidelity Gold Refinery but continues to face significant financing constraints.

If successfully implemented, the overhaul could widen access to government-backed funding, helping miners invest in equipment, improve productivity, and build more formal and sustainable mining businesses.

• NMB Links Mining Finance to ESG as Miners Seek Affordable Capital