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In a decisive display of economic sovereignty, Zimbabwe has reaffirmed that its new lithium export quotas are more than sufficient to sustain mining operations until the full ban on raw concentrate exports takes effect on 1 January 2027, Mining Zimbabwe can report.

By Rudairo Mapuranga

Speaking at a post-Cabinet briefing, Deputy Minister of Mines and Mining Development, Dr Polite Kambamura, laid bare the government’s rationale for the bold 26 February intervention that halted all raw lithium exports. Far from a sudden crackdown, Dr Kambamura explained that the move was a necessary response to years of silent plunder.

“The Cabinet gave a notice in June 2025 that beginning 1 January 2027, no exports of lithium concentrates would be allowed,” he said. “We advised producers to build lithium sulphate plants. However, the Cabinet observed that a significant part of the sector failed to develop any new business practices.”

According to Dr Kambamura, some lithium producers engaged in systematic abuse, including under declaration, under invoicing, and channelling their approved export capacities to middlemen who own no mines of their own.

“Some were shipping out large quantities of lithium concentrate and stockpiling them outside the country,” he revealed. “The aim was clear: by the time the January 2027 deadline arrived, there would be no resource left to talk about.”

That stark warning led the government to act immediately. On 26 February, Zimbabwe banned exports of raw lithium concentrate to force producers back to the negotiating table. “Some producers had already approached my office to say, ‘We no longer have a deposit. What do you want us to do?’” Dr Kambamura recalled.

A Monitoring Mechanism, Not a Weakness

To address these abuses without collapsing the industry, the government introduced calibrated export quotas. Dr Kambamura was emphatic: these quotas are not a concession to foreign mining houses but a strategic tool to enforce accountability.

“The export quotas we introduced are enough to see producers through the period until they set up lithium sulphate plants,” he stated. “We have used those quotas as a monitoring mechanism. Are they implementing government conditions? Are they building separate facilities to extract other economic minerals within the lithium concentrations?”

The Deputy Minister clarified that only six large lithium producers were approved to build concentration facilities in Zimbabwe. Those same producers made binding commitments that by 1 January 2027, they would have operational lithium sulphate or lithium carbonate plants.

“Once we are satisfied that they have built enough processing capacity, we will open up the quotas further, but only for lithium salts, not raw concentrates,” he said. “Zimbabwe will finally benefit from its own lithium next year.”

From Passive Exporter to Industrial Powerhouse

This policy shift signals that Zimbabwe is no longer a passive player in the global energy transition. By halting raw mineral exports and enforcing quotas that prioritise local beneficiation, the government has transformed a historic vulnerability into a source of national leverage.

Dr Kambamura’s message was unmistakable: the era of foreign middlemen stripping Zimbabwe’s resources for pennies is over. The quotas are not a retreat but a controlled ramp towards full-scale local processing. They ensure that the country’s lithium wealth will not be stockpiled abroad before the 2027 ban takes effect.

As global lithium prices surge in response to Zimbabwe’s assertive policy, one question now echoes from Harare to the world’s battery capitals: What will foreign investors build on Zimbabwean soil, not just extract from it, once the full ban on raw concentrate exports comes into force in 2027?

A fresh application to place RioZim Limited under corporate rescue has once again drawn attention to the company’s financial position, this time from a shareholder holding just 0.0012% of its issued share capital, Mining Zimbabwe can report.

By Ryan Chigoche

The filing comes less than a year after a similar attempt by the Zimbabwe Diamond and Allied Minerals Workers Union (ZDAMWU), which was dismissed by both the High Court and the Supreme Court. That earlier case placed RioZim’s financial position under judicial scrutiny, and while the company successfully defended it, the emergence of a second application has renewed focus on what corporate rescue law actually allows and what it tests.

What has drawn particular attention is not only the repeated application, but also the applicant’s profile. A shareholder holding such a marginal stake would ordinarily have no practical influence over corporate decision-making. RioZim has emphasised this point, describing the allegations as “bare and unsubstantiated.”

But legally, that framing misses the central issue.

What the law actually prioritises

Zimbabwe’s corporate rescue regime is governed by Part XXIII of the Insolvency Act [Chapter 6:07]. Its focus is not ownership size or corporate influence, but financial condition and viability.

At the heart of the framework is the statutory test for financial distress. Section 122 states that:

“A company is financially distressed if it appears to be reasonably unlikely that the company will be able to pay all of its debts as they become due and payable within the immediately ensuing six months.”

This makes corporate rescue a forward-looking assessment, not a reaction to current default alone.

Equally important is who is allowed to approach the court. Section 124 provides that an application may be made by:

“an affected person,” a category that includes shareholders, creditors, employees and trade unions, with no minimum shareholding requirement attached.

In effect, Zimbabwean law deliberately separates the right to file from the ability to control, placing emphasis instead on whether the allegation of distress has substance.

Where the court’s attention shifts

A corporate rescue legal expert who spoke to Mining Zimbabwe on condition of anonymity said the size of the shareholding is legally irrelevant once an application is before the court.

“The focus of the court is therefore not whether the applicant owns 0.0012% or 20%, but whether the underlying allegations have substance.”

According to the expert, the court will instead interrogate core indicators of financial distress, including whether the company can meet its obligations as they fall due, the extent of its debt exposure, creditor positions and the operational performance of its mining assets.

The assessment also extends to whether there is a realistic prospect of recovery through restructuring, recapitalisation, asset sales or strategic partnerships, and whether such intervention would produce a better outcome than continued deterioration or liquidation.

More than a shareholder dispute

Viewed in this context, the application begins to resemble less of a shareholder grievance and more of a broader test of financial and operational stability.

“From what is currently being alleged publicly, the application appears to go beyond a simple minority shareholder dispute,” the expert said.

That perspective becomes more significant when governance concerns are considered.

“If credible offers for joint ventures, recapitalisation, asset purchases or strategic investment were received by management or the controlling shareholder and were not properly disclosed to the board or the market, then serious governance questions arise,” the expert added.

Such issues, if substantiated, could shift the focus of the case beyond liquidity constraints to how the company is being managed and whether value is being preserved for all shareholders.

A source close to developments at the company echoed similar concerns, pointing to deeper structural issues around control and decision-making.

“They run the company as if it is their own private entity,” the source said. “The only way that company can be saved is through corporate rescue.”

The source further suggested that the concentration of control has enabled governance practices that may not align with expectations for a listed public company.

While these claims remain unverified, they highlight growing scrutiny around transparency, disclosure and decision making at RioZim.

Implications for a capital-intensive sector

RioZim Limited operates across gold, nickel and diamond assets in Zimbabwe, a sector characterised by high capital requirements, operational risk and sensitivity to liquidity constraints.

In such environments, corporate rescue provisions serve as an early intervention mechanism designed to preserve viable businesses rather than push them into liquidation.

The RioZim case illustrates a defining feature of Zimbabwe’s insolvency framework: access to court is deliberately broad, but success depends entirely on evidence.

What ultimately matters

Despite the focus on the 0.0012% shareholding, Zimbabwean law is clear that ownership size is not a deciding factor in corporate rescue proceedings.

What the court will ultimately determine is whether the applicant can demonstrate two key elements:

That the company is financially distressed as defined under the law and that there is a reasonable prospect of rescuing the business

If both thresholds are met, corporate rescue may be granted. If not, the application will be dismissed.

Either way, the case reinforces a central principle of Zimbabwe’s insolvency regime: even the smallest shareholder can initiate a high-stakes legal process, but only credible evidence can sustain it.

Caledonia Mining Corporation Plc is likely to draw renewed investor attention after posting a sharp 50.2% increase in EBITDA to US$33.87 million for the first quarter of 2026, a performance that strengthens the group’s earnings profile despite softer production, Mining Zimbabwe can report.

By Ryan Chigoche

With gold equities increasingly trading as a proxy for bullion prices, the company’s share price outlook is now closely tied to its ability to convert elevated gold prices into sustained earnings and cash flow growth.

A key metric underpinning this narrative is EBITDA, earnings before interest, tax, depreciation, and amortisation, which strips out financing and accounting effects to show the underlying strength of operations.

In capital-intensive sectors such as mining, EBITDA is closely watched by investors as it provides a clearer picture of operational efficiency, margin resilience, and the capacity to generate cash to support dividends and expansion.

Caledonia’s latest numbers highlight this dynamic. While gold production from its flagship Blanket Mine fell 20.9% to 14,767 ounces, the impact on earnings was more than offset by a 66.3% surge in the average realised gold price to US$4,816 per ounce.

This translated into an 18.3% rise in revenue to US$66.43 million and a 69.4% jump in profit after tax to US$18.91 million, while free cash flow more than doubled to US$12.28 million, key indicators that the business is still generating strong returns even under operational pressure.

The production decline was linked to constrained access to higher-grade ore, with head grade dropping from 3.1 g/t to 2.5 g/t. This weighed on recoveries and drove costs higher, with on-mine costs rising to US$1,740 per ounce and all-in sustaining costs averaging US$2,765 per ounce.

Even so, the broader investment case remains intact. Management pointed to improving grades through the quarter and into April, suggesting that output and cost performance could strengthen in the second half of the year. Full-year production guidance of 72,000 to 76,500 ounces has been maintained, with output expected to be weighted towards H2.

For shareholders, the combination of stronger earnings and cash generation is already feeding into returns. Earnings per share rose 77.8% to US$0.80, while the company declared a quarterly dividend of US$0.14 per share, reinforcing confidence in the sustainability of payouts.

Beyond near-term performance, investors are also tracking progress on the Bilboes gold project, where financing discussions continue following a US$150 million convertible notes raise earlier this year. The project represents a potential step change in production capacity and could become a key driver of future valuation.

In the near term, Caledonia’s share price trajectory will likely hinge on two key variables: continued strength in gold prices and evidence that operational recovery at Blanket is translating into higher output and lower costs. For now, the sharp uplift in EBITDA and cash flow provides a solid foundation for market support.