Mining ZimbabweLatest Mining News, Policy and Industry Updates

Multi-listed gold-focused miner Caledonia Mining Corporation Plc has announced that gold production at its flagship Blanket Mine in Gwanda decreased by 12.5% in the fourth quarter of 2025, driven by operational challenges, while the operation still met its robust annual target, Mining Zimbabwe can report.

By Rudairo Mapuranga

According to the company, production for the quarter (Q4 2025) was 17,367 ounces, down from 19,841 ounces produced in the same period in 2024 (Q4 2024).

The quarterly decline was offset by strong performance earlier in the year, allowing Blanket to meet its revised annual guidance. The mine produced a total of 76,213 ounces for the full year 2025 (“FY2025”), which is nearly identical to the prior two years and within the guided range of 75,500 to 79,500 ounces.

The company attributed the Q4 decrease primarily to lower tonnage from key higher-grade areas, which is being addressed, and interruptions in the national electricity supply towards the end of the quarter. Robust milling throughput throughout the year helped mitigate some of the grade pressure experienced.

Looking ahead, Caledonia issued production and cost guidance for 2026 (“FY2026”), forecasting output between 72,000 and 76,500 ounces. The company anticipates a stronger production profile in the second half of the year as higher-grade areas increasingly come on stream.

However, cost guidance for 2026 is projected to rise due to inflationary pressures. The all-in sustaining cost (“AISC”) is expected to be between US$2,100 and US$2,300 per ounce sold, up from previous guidance, driven by higher costs for consumables, labour, and increased sustaining capital expenditure.

A significant feature of the 2026 plan is a substantial capital expenditure budget of US$162.5 million for the Group. The majority of this (US$135.9 million) is allocated as growth capital, predominantly for the advancement of the Bilboes development project (subject to board approval). A further US$26.6 million is earmarked for sustaining capital at Blanket, aimed at ensuring long-term operational reliability.

“We are pleased to report that Blanket has once again delivered production in line with annual guidance, demonstrating resilience,” said Mark Learmonth, Chief Executive Officer of Caledonia. “Our FY2026 budget reflects a commitment to sustained investment, ensuring Blanket remains well-positioned for consistent production and future growth.”

In an effort to compel miners to build domestic smelting plants and capture more value from its mineral wealth, Zimbabwe has enacted a stringent new export tax targeting raw chrome, with a 10% export tax levied on all “unbeneficiated chrome,” as detailed in Section 12I of the Finance Act, Act No. 7 of 2025, Mining Zimbabwe can report.

By Rudairo Mapuranga

The law defines “unbeneficiated chrome” with a scope that reveals its ambitious intent. It targets not only raw chrome ore and fines but also material that has undergone primary processing, including ore that is “crushed, milled and washed.” Crucially, it explicitly names “chrome concentrate that is smelted in pellet or ingot form.”

This definition is strategic. It establishes that only the final product of ferrochrome, the result of high-energy, capital-intensive smelting, will be considered “beneficiated” and thus potentially exempt from this punitive levy. The goal is clear: to make the export of any intermediate product financially untenable.

The most impactful provision, however, is the valuation method for the tax. According to subsection (3), the taxable value of exported unbeneficiated chrome will be deemed the higher of:
(a) the actual bill of entry value, or
(b) the market value of ferrochrome on the date of export.

This means a miner shipping raw chrome ore will have the 10% tax calculated not on the ore’s price, but on the significantly higher price of processed ferrochrome. This mechanism creates a powerful economic disincentive, artificially eroding the profit margin on raw exports by taxing a value that can only be captured through domestic investment in smelters.

The tax, calculated on this benchmarked value, must be paid in United States dollars or other foreign currency (Section 12K), ensuring the state secures hard currency from the sector. Combined, these measures form a coherent, coercive strategy: using fiscal policy to redirect investment and force the physical expansion of the nation’s industrial base up the value chain.

The immediate effect places chrome miners and processors at a critical juncture. The policy leaves two stark paths:

1. Comply: Secure massive capital (estimated in the hundreds of millions) to build or partner in smelting facilities, navigating Zimbabwe’s well-documented challenges with power supply and infrastructure.

2. Stagnate: Face a tax regime that deliberately undermines the profitability of existing business models.

The government’s wager is that the sector will choose to invest. Critics, however, warn that the simultaneous demand for foreign currency taxes and massive capital expenditure could create a cash flow crisis, stifling production before new smelters come online.

Zimbabwe’s 10% export tax on chrome is more than a revenue measure; it is an industrial policy experiment of high ambition and risk. By using tax law to redefine what constitutes a “finished” product and to penalise the export of anything less, the state is attempting to architect a new reality for its mining sector. The success or failure of this chrome clause will serve as a critical test of whether such aggressive fiscal coercion can successfully catalyse domestic industrialisation, or whether it will constrain the very industry it seeks to transform.

NYSE American, AIM, and Victoria Stock Exchange–listed gold-focused miner Caledonia Mining Corporation Plc (CMCL) has announced a change in its executive leadership, with Chief Operating Officer James Mufara leaving the company, Mining Zimbabwe can report.

By Rudairo Mapuranga

The mining firm moved quickly to assure investors and stakeholders that the departure will not alter its operational strategy or day-to-day management.

In a concise statement, the company confirmed that Mr. Mufara has left his executive role. Significantly, Caledonia indicated that it “does not currently intend to appoint another Chief Operating Officer,” suggesting a potential streamlining of its executive structure.

The core message from the announcement is one of continuity. The company explicitly stated that “operations and strategy remain unchanged” and are being managed by the existing executive and operating team. This is likely intended to prevent any uncertainty regarding the leadership of its flagship asset, the Blanket Mine in Zimbabwe, and other projects.

“The Company confirms that its operations continue to be managed by the existing executive and operating team,” the release stated, underscoring a planned and stable transition.

This leadership update follows closely on the heels of the company’s year-end production and 2026 guidance announcement, which highlighted consistent production at Blanket and a major capital expenditure plan focused on growth and operational reliability. The assurance of unchanged operations aligns with Caledonia’s recent narrative of focused execution and strategic investment.

The departure of a senior executive often prompts questions about corporate direction. However, by pre-emptively declaring no immediate plans to fill the COO role and affirming the strength of the existing team, Caledonia’s board appears to be signalling confidence in its current management structure and strategic path.

Market observers will now watch for the company’s next operational and financial updates to confirm that this leadership change proceeds as smoothly as indicated, with no impact on its production guidance or ambitious investment plans for the Bilboes project and sustaining capital at Blanket.

A seismic shift in Zimbabwe’s fiscal approach to its lithium sector took effect on January 1, 2026. Buried in the Finance Act 7 of 2025 is an amendment that draws a stark, intentional line in the sand: exports of high-value lithium sulphate attract a 0% Value Added Tax (VAT) rate, while exports of lithium ore and concentrates are levied a 10% VAT on their gross fair market value, Mining Zimbabwe can report.

By Rudairo Mapuranga

On paper, the policy is a masterstroke of economic engineering. It is the fiscal embodiment of the government’s oft-stated “beneficiation or bust” mantra. By making the refined product—lithium sulphate, a crucial feedstock for lithium-ion batteries—tax-free, the state is offering a powerful carrot to investors. Simultaneously, the 10% tax on unprocessed and semi-processed exports acts as a stick, designed to penalise and discourage the shipment of raw resources. The goal is unambiguous: to force the value chain to mature within Zimbabwe’s borders.

However, this strategic move lands in an industry that, according to the Mining Prospects 2026 survey, is in a fragile state of aggressive infancy rather than mature prosperity. While output is projected to “near double” and capacity utilisation to leap to 98%, these figures mask profound anxieties. Producers are “ramping up production” not from a position of strength, but to secure “adequate feedstock” for the very sulphate plants they are building under the government’s beneficiation roadmap. The sector is running to stand still, investing billions to comply while global market uncertainty looms.

This is where miners’ vehement concern over the 7% royalty, which they describe as “high and uncompetitive,” intersects dangerously with the new VAT structure. Producers argue that the Zimbabwe Revenue Authority (ZIMRA) currently calculates this royalty based on notional lithium carbonate prices—a far more processed and valuable product than the concentrates most are exporting. This, they contend, unfairly inflates their tax burden.

The new 10% VAT on concentrates now layers another cost on top of this disputed royalty. In the industry’s view, this creates a “double beneficiation tax.” They are being penalised once via a royalty calculated on a product they do not produce, and again via VAT for exporting the concentrate they do produce. This “double taxation,” they warn, directly threatens the viability of lithium projects already straining under colossal capital expenditure for mandated processing plants.

Contrast Zimbabwe’s predominantly punitive model with the strategies of critical minerals leaders.

Australia: While it levies royalties, its focus is on creating an unparalleled ecosystem of geological surveys, streamlined permitting, research partnerships (such as the Critical Minerals Research and Development Hub), and strategic co-investment through agencies like the Critical Minerals Office. The stick is minimal; the carrot is a stable, innovative, and globally competitive operating environment.

China: Its strategy is one of vertical integration and strategic stockpiling. Through state-backed enterprises, it secures global supply—often through equity investments in mines abroad—and dominates mid- and downstream processing. Its domestic policy is less about taxing raw exports and more about controlling the entire chain through corporate and state machinery.

Both nations treat critical minerals as a strategic marathon requiring patient capital and enabling infrastructure. Zimbabwe’s approach, while bold in its intent, risks treating the sector as a fiscal sprint, extracting maximum revenue from an industry still taking its first steps. The zero-rating of sulphate is a welcome nod to this strategic view, but it is undermined by the perceived predatory pressure elsewhere in the fiscal regime.

At the core of the issue is a paradox: Zimbabwe is legislating as if it has a mature, cash-generating lithium industry when, in fact, it has a nascent, debt-fuelled one building to order. The projected production boom is a sign of potential, not proof of profitability. The high royalty and new VAT on concentrates act as a drag on the cash flow needed to fund the very beneficiation plants the government desires.

The message from the amendment is clear: “Process here, and we will reward you.” The message from the broader fiscal regime, as perceived by miners, is contradictory: “Pay us as if you are already fully processed, while you borrow billions to build the capacity to do so.”

For Zimbabwe’s lithium dream to align with its critical minerals ambition, the state must view the sector as it truly is: an infant strategic industry. This requires a holistic review in which the supportive intent of the 0% VAT on sulphate is mirrored by a rational, sustainable royalty framework and a patient partnership that nurtures growth rather than squeezing it prematurely. The alternative is to win the beneficiation battle on paper while losing the war for a viable, globally competitive lithium industry.

Victoria Falls Stock Exchange and Australian Securities Exchange–listed energy exploration company Invictus Energy Limited, which is advancing the potentially transformative Cabora Bassa Project in the Muzarabani–Mbire district, has announced a key internal appointment aimed at bolstering its corporate governance and regulatory expertise, Mining Zimbabwe can report.

By Rudairo Mapuranga

The company confirmed that Victoria (Vicky) McLellan, who has served as Chief Financial Officer since August 2024, has been appointed as Joint Company Secretary with immediate effect.

McLellan brings a strong track record in governance and regulatory compliance from the oil and gas sector. A Chartered Accountant, her previous experience includes roles at FAR Limited (ASX: FAR) and as both Chief Financial Officer and Company Secretary at Metgasco Limited (ASX: MEL). This background is considered highly relevant for Invictus as it navigates the complex regulatory and financial landscape of developing a major multi-well exploration project.

In her expanded role, McLellan will share the Company Secretary responsibilities with Gabriel Chiappini, Invictus’s Non-Executive Director and Chair of Governance, who will continue as Joint Company Secretary. The company stated that this dual structure reinforces its commitment to robust corporate governance practices.

A critical component of the appointment is McLellan’s nomination as an additional key point of contact for the Australian Securities Exchange (ASX) on matters pertaining to Listing Rules. This ensures clear and continuous communication with the market as the company progresses.

The appointment comes at a significant time for Invictus Energy, which is focused on its operations in Zimbabwe’s Cabora Bassa Basin. The company is working to appraise the Mukuyu gas-condensate discovery and explore additional high-potential targets within its Special Grant 4571.

The move to strengthen its senior executive team with additional compliance and governance capacity is seen as a strategic step, aligning the company’s corporate structure with the scale and ambition of its Zimbabwe-based exploration campaign.

“The Board is pleased to expand Vicky’s responsibilities,” said a representative in line with the announcement. “Her extensive experience will be invaluable as we continue to execute our work programme in Zimbabwe and maintain the highest standards of reporting and governance for our shareholders.”

The announcement was approved for release by the Invictus Energy Board of Directors.