Mining ZimbabweLatest Mining News, Policy and Industry Updates

A Chinese national accused of misappropriating US$3.65 million from a Zimbabwean lithium company has been denied bail after a Harare magistrate ruled that he posed a flight risk, Mining Zimbabwe can report.

Li Shigang (58), of Borrowdale, Harare, appeared before Harare Magistrate Mrs Jesse Kufa, who denied him bail on the grounds that he is facing a serious offence and has a propensity to abscond from trial.

The matter was remanded to July 29 to allow for the finalisation of investigations.

According to the State, the complainant is Chen Dehu (57), a director of San Ding Lithium (Private) Limited, who resides at Golden Peacock Villa in Borrowdale.

Prosecutor Lawrence Gangarahwe told the court that Li joined San Ding Lithium in 2022 as the company’s Chief Finance Officer and Commercial Manager.

The State alleges that, by virtue of his position, Li exercised full control over the company’s financial affairs, including the collection and disbursement of funds, financial supervision, commercial settlements, payment approvals and overall management of the company’s finances.

Court papers state that on October 12, 2022, Li invested US$630,000 of his own funds into the company, after which he was granted access to its financial systems.

During his tenure, the company is alleged to have accumulated capital exceeding US$3.65 million.

However, prosecutors allege that Li, acting in connivance with an alleged accomplice, Zhu Guozhonga, diverted company funds without the knowledge or approval of the complainant or other company directors.

The State alleges the pair used forged receipts and invoices to conceal the transactions before converting funds intended for company operations to their personal use, resulting in the suspension of the company’s activities.

In addition to the alleged financial misappropriation, prosecutors claim the accused also disposed of two company-owned Toyota Hilux double-cab vehicles and converted the proceeds for personal benefit.

The court further heard that in January 2024, Li and his alleged accomplice resigned from the company without completing formal handover procedures or surrendering key financial documents, including accounting records, reconciliation reports and company books.

According to the State, Li was intercepted by the complainant and another employee, Chen Xingmei, while allegedly attempting to remove company financial records from the company’s premises during his resignation.

Despite repeated attempts by the complainant to recover the records and resolve the matter, Li allegedly failed to cooperate or account for the missing funds.

The State maintains that the total prejudice amounts to US$3.65 million, with nothing recovered to date.

The allegations remain before the court, and Li has not yet been required to plead. Under Zimbabwean law, an accused person is presumed innocent until proven guilty in a court of law.

The Planet GOLD Zimbabwe project is spearheading a renewed push to unlock responsible finance for artisanal and small-scale gold miners (ASGM), bringing together government, financial institutions, and mining stakeholders to tackle funding barriers that have long constrained investment in mechanisation, mercury-free processing technologies, and the formalisation of one of Zimbabwe’s most important gold-producing sectors, Mining Zimbabwe can report.

By Ryan Chigoche

The initiative took centre stage at the National Dialogue on Access to Finance for ASGM held in Harare recently under the theme, “Unlocking Responsible Finance for Formalised ASGM: Pathways to Investment, Business Growth and Mercury-Free Mining.”

The dialogue brought together policymakers, regulators, banks, development partners, and representatives of the mining sector to explore financing models that can help artisanal miners access capital, strengthen business practices, and accelerate the adoption of cleaner mining technologies.

Speaking to Mining Zimbabwe on the sidelines of the dialogue, PlanetGOLD Zimbabwe Project Manager Nyaradzo Mutonhori said improving access to finance remains central to the project’s mission of reducing mercury use in Zimbabwe’s artisanal and small-scale gold mining sector.

“We are in the second year of implementing this project, and today we are gathered with stakeholders to discuss innovative financing solutions for artisanal and small-scale gold mining, specifically to access funding to be able to purchase technologies to reduce the use of mercury,” she said.

The financing push comes as many ASGM operators continue to struggle to secure formal credit despite the sector’s growing contribution to Zimbabwe’s gold output. Weak financial records, informal business structures, limited collateral, and inadequate financial literacy continue to prevent many miners from meeting lending requirements, restricting investment in exploration, mechanisation, and modern mineral processing technologies.

Mutonhori said the challenge is not the availability of finance but ensuring that miners are able to satisfy lenders’ eligibility requirements.

“The funds are there. The challenge is meeting the eligibility criteria,” she said.

Drawing on lessons from other countries implementing the global PlanetGOLD programme, she said expanding finance for artisanal miners requires stronger collaboration between governments, financial institutions, and mining communities, particularly through mechanisms that reduce lending risks.

“The greatest issue is about de-risking the sector,” she said, noting that guarantee facilities and strategic partnerships have helped encourage financial institutions in other jurisdictions to finance responsible artisanal mining operations.

To help bridge this gap, PlanetGOLD Zimbabwe is working with the Ministry of Mines and Mining Development, the Zimbabwe School of Mines, financial institutions, and other partners to strengthen miners’ financial literacy, business management capacity, and compliance with environmental, social, and governance (ESG) standards.

A key component of the programme will be the establishment of a Mining Academy to train artisanal miners in financial management, business planning, record-keeping, and responsible mining practices. The initiative will also help miners build verifiable gold delivery records through Fidelity Gold Refinery while promoting occupational safety, environmental management, and the adoption of mercury-free technologies.

Through these interventions, the project aims to improve the investment readiness of at least 20 artisanal and small-scale mining groups, strengthening links between miners and financiers while supporting Zimbabwe’s transition towards a more formal, productive, and environmentally responsible gold mining sector.

Mines Minister Dr. Polite Kambamura has rejected calls from lithium producers to delay the planned January 2027 ban on lithium concentrate exports, saying the government will not grant a waiver despite industry appeals for more time to complete processing facilities, Mining Zimbabwe can report.

By Rudairo Mapuranga

“For now, we are not talking about the waiver. We are still sticking to the 1st of January,” Kambamura told reporters during a technical visit to the Arcadia lithium sulphate plant.

Producers have asked the government to extend the deadline to around mid-2027, arguing that the construction of lithium sulphate plants required under Zimbabwe’s beneficiation strategy needs additional time. The request was made by the country’s Lithium Producers’ Association at a mining conference in Victoria Falls.

Kambamura dismissed the appeals, saying producers were given a comprehensive notice in June 2025, providing an 18-month window to prepare for the ban. The February 2026 suspension of raw mineral and concentrate exports, he said, was merely a “reminder” that the government remains committed to the original timeline.

“The producers were given a notice in June 2025. This is an 18-month period to January 2027. So the February ban was just a reminder, a thing to say, hey, we are still on with the notice that we gave you. So we are not going to change everything. They have to run with pace. They have to construct a lithium sulphate plant,” he said.

The January 2027 ban is the next step in Zimbabwe’s progressive tightening of controls over its lithium resources, following the 2022 ban on unprocessed ore exports. The government aims to ensure that only lithium sulphate and higher-value products are exported, capturing a larger share of the value from Africa’s largest lithium reserves.

Industry data shows Zimbabwe exported 1.128 million metric tons of spodumene concentrate in 2025, an 11% increase from the previous year, yet export earnings remained largely unchanged at about $513.8 million as weaker global prices offset higher volumes. The figures have reinforced government arguments that raw exports limit the country’s ability to benefit fully from its mineral wealth.

Chinese companies, including Huayou Cobalt, Sinomine, and Yahua Group, have invested billions of dollars in Zimbabwe’s lithium sector since 2021, but only Huayou’s Arcadia facility is currently operational at a more advanced stage in terms of producing lithium salts. Other projects remain under construction or feasibility assessment.

Despite the challenges, industry executives project annual lithium sulphate production could reach 344,000 tons by 2030 if planned investments are completed. Kambamura said the government will not be deterred.

“We are leaving no stone unturned so that the government will continue to benefit immensely from our lithium resources,” he said.

Mines and Mining Development Minister Dr Polite Kambamura has commended Prospect Lithium Zimbabwe (PLZ) for delivering Africa’s first lithium sulphate processing plant, while urging the company to accelerate compliance with government commitments on skills transfer, local staffing, and laboratory development, Mining Zimbabwe can report.

By Rudairo Mapuranga

Speaking during a technical visit to the Arcadia facility, Kambamura said the $400 million plant built by Zhejiang Huayou Cobalt represents a significant milestone in Zimbabwe’s beneficiation strategy under the Second Republic. The facility, which processes spodumene and petalite into lithium sulphate, has an installed capacity of 50,000 metric tons a year and is currently operating at 60% of that level.

“This is the largest three-line single-phase lithium sulphate plant in Africa,” Kambamura said. “We are very happy as a government to be witnessing this milestone, especially as the government is pushing for local value addition and beneficiation.”

The Minister noted that a lithium carbonate plant is already 90% complete at the same site, with completion expected in August this year. The progression from lithium sulphate to carbonate, a higher-value product used directly in electric vehicle batteries, is part of a broader strategy to move Zimbabwe up the lithium value chain.

“We’ll rest only after we can now produce, or will be able to produce, lithium batteries and solar panels. That’s the thrust of government: to produce finished products from lithium,” he said.

Compliance Commitments Under Scrutiny

While praising PLZ for its investment, Kambamura said the government will closely monitor the company’s progress on commitments made following the February suspension of raw mineral and concentrate exports. He identified several areas requiring urgent attention, including the development of laboratories, skills and knowledge transfer, training for local personnel, and the placement of Zimbabweans in senior management roles.

“We are here again to follow up on the commitment that the company made, especially after the February ban, the commitment that they agreed to stick to. We’ve seen they’ve managed to do some, and some are still a work in progress,” he said.

The Minister emphasised that the government will examine the sector “with a new eye” to ensure that all producers adhere to their obligations.

“So that they understand what is happening, compliance issues, and audited financials. We are leaving no stone unturned so that the government will continue to benefit immensely from our lithium resources,” he said.

Kambamura urged other lithium producers operating in Zimbabwe to follow PLZ’s example in developing domestic processing capacity. The government has identified 17 lithium projects that are either operational or under development, with Chinese companies including Sinomine and Yahua Group among the major investors.

“I would like to urge other lithium producers to follow suit, the good example, the good steps that Huayou Cobalt has shown to the government,” he said.

The Arcadia project has created 2,000 direct jobs and another 2,000 indirect positions, with the majority of workers drawn from surrounding communities, according to the company. However, the government is pushing for greater local participation in higher-skilled roles and management positions.

Zimbabwe holds Africa’s largest lithium reserves, with the government estimating the mineral could generate significant foreign currency earnings and support industrialisation. The push for beneficiation aligns with the National Development Strategy 2 and the broader Vision 2030, which aims to transition the country to an upper-middle-income economy.

“The construction of the first lithium plant, a lithium sulphate plant in Africa, is behind me, and this was done in Zimbabwe,” Kambamura said, emphasising the significance of the achievement.

Data shows the country exported 1.128 million metric tons of spodumene concentrate in 2025, an 11% increase from the previous year. Yet, export earnings remained largely unchanged at about $513.8 million as weaker global prices offset higher volumes. The figures have reinforced government arguments that raw exports limit the country’s ability to benefit fully from its mineral wealth.

Kambamura said the government is committed to supporting the sector’s development while ensuring that Zimbabweans benefit from the resource.

“So all the talk of lithium sulphate, now we are going to lithium carbonate. The next step will be getting lithium batteries in Zimbabwe. That’s where we are going,” he said.

• State-owned miner exceeds first-quarter output despite gold price headwinds.

Mutapa Gold Resources Ltd. produced 1,826 kilograms of gold in the six months to June 2026, putting the company firmly on course to meet its full-year target of 3,400 kilograms, Mining Zimbabwe can report.

By Rudairo Mapuranga

Production for the quarter ended June reached 925 kilograms, exceeding the 901 kilograms recorded in the first quarter and demonstrating improved operational momentum following lower grades that had weighed on output at the Freda Rebecca and Shamva operations in the previous year.

The company’s half-year production of 1,826 kilograms – equivalent to approximately 58,700 ounces – compares favourably with the 2,354 kilograms produced in the nine months to December 2025, the period following the company’s restructuring under the Mutapa Investment Fund.

“We are very much on course to achieving 3,600 kilograms for the year to December 2026,” Maseva-Shayawabaya said in a recent presentation.

The company has revised its annual forecast to 3,400 kilograms, supported by better ore grades, improved recovery rates, and increased milling throughput. Recovery rates are currently averaging 83%, with management targeting 90% through ongoing investments in processing efficiencies at Freda and Jena.

At current gold prices of around US$4,100 per ounce, Mutapa expects annual revenue of approximately US$500 million and profit before tax of about US$200 million, though the recent softening of the gold price presents a key risk to margins.

The company posted a profit after tax of US$70 million for the nine months to December 2025, declaring a maiden dividend of US$35 million that was paid to shareholders, including parent Mutapa Investment Fund, CBZ Bank, and various state pension and insurance entities.

The half-year production figures come as Mutapa prepares to launch the US$152 million Shamva Hill Project next month, which will triple Shamva’s monthly output to 200 kilograms. A US$15 million expansion at Jena Mine is also scheduled to commence in the fourth quarter.

By December 2029, the company expects to be producing approximately 570 kilograms of gold per month, more than double its current run rate.

Mutapa Gold Resources, formed in January 2026 following the restructuring of the former Kuvimba gold cluster, operates the Freda Rebecca, Shamva, and Jena mines, with additional assets in Kwekwe and an artisanal mining initiative at Elvington. The company controls 52,000 hectares of mining claims nationwide and directly employs 2,800 people, with a further 1,300 employed through contractors.

Mutapa Gold Resources Ltd. will commence construction of its flagship US$152 million Shamva Hill Project next month, marking one of Zimbabwe’s largest single mining investments in recent years and a cornerstone of the state-owned producer’s plan to double annual output by 2029, Mining Zimbabwe can report.

By Rudairo Mapuranga

The project, located about 100 kilometres northwest of Harare, will develop a new two-million-tonne-per-year open-pit mine and dedicated processing plant at the Shamva operation. The company has secured US$75 million in first-stage financing from a consortium of four domestic banks – CBZ Bank, Ecobank, CABS and NMB Bank – with negotiations ongoing with international financiers for the remaining capital requirement.

“We initially approached the market seeking US$75 million. A consortium of four banks came together and raised the amount,” Chief Executive Officer Patrick Maseva-Shayawabaya said in a presentation on the company’s three-year growth plan. “Since then, other banks have indicated interest in participating, meaning we could ultimately raise as much as US$100 million from local financial institutions.”

Shamva currently produces about 66 kilograms of gold per month, with ore trucked for processing at Freda Rebecca’s plant. The Shamva Hill Project will eliminate this bottleneck, boosting monthly output to 200 kilograms.

The project’s impact ripples across Mutapa’s portfolio. Once Shamva processes its own ore, Freda Rebecca’s 2.8 million-tonne-per-annum plant will be freed to process additional ore from the Freda mine, enabling the operation to increase output from 204 kilograms to 270 kilograms per month.

2029 Target: 570kg per Month

The Shamva Hill Project is the largest component of a three-year expansion programme that includes a US$15 million Phase One expansion at Jena Mine, scheduled to commence in the fourth quarter of 2026.

“The picture for us is that, by the end of December 2029, we will be producing around 570 kilograms of gold per month,” Maseva-Shayawabaya said.

Annual production would reach approximately 220,000 ounces, more than double the 104,626 ounces the company produced in the 12 months to March 2026.

Minister of Mines and Mining Development Dr Polite Kambamura has expressed his admiration for the expansion drive underway at Freda Rebecca Gold Mine, describing the state-owned operation as a model for Zimbabwe’s mining sector following a technical tour of the facility.

By Rudairo Mapuranga

“The plans that the mine has to increase production, we are very excited as the Government,” Kambamura said after touring the operation in Bindura. “I would like to urge other operations also to follow suit by increasing their production, considering that our currency is backed by gold.”

Freda Rebecca, which contributes about 70% of Mutapa Gold Resources’ total output, produced 2.2 tonnes of gold in 2025, accounting for roughly 7% of Zimbabwe’s national gold production. The mine currently employs about 2,200 people and is a flagship asset of the state-owned gold producer.

The Minister noted that Mutapa Gold Resources is targeting to lift monthly gold production from the current 300-310 kilograms to between 570 and 600 kilograms by the end of 2026 and into the first half of 2027. The company has already secured funding for the expansion programme, with US$75 million raised from local banks as part of a broader US$250 million life-of-mine investment drive.

“The company has already secured funding for the expansion of its operations,” Kambamura said. “Look at Shamva Gold Mine; they are going to develop a pit at the top of that hill, and that will see production increasing from 66 kg to 200 kg. Here at Freda, they are currently in the range of 204 kg, and they are also going to increase their production.”

Freda’s General Manager, Alfred Chinyere, has confirmed the mine is operating at maximum plant capacity, with monthly production reaching 240 kg in March 2026. The real growth opportunity, he explained, lies in utilising capacity freed up once Shamva begins processing its own ore at a new US$152 million facility expected to commence construction in August.

Safety Milestone

During the visit, Kambamura also acknowledged the mine’s recent achievement of one million fatality-free shifts, a milestone spanning 455 days without a single work-related death. CEO Patrick Maseva-Shayawabaya credited the turnaround to improved safety practices and a “Zero Harm” approach following four fatalities recorded between October 2022 and February 2025.

“Environmental considerations and safety in workplaces are key issues we are mainly looking at,” Kambamura said, urging the company to “keep doing good” and to engage with the Government where assistance is needed.

The Minister underscored the strategic importance of gold production in strengthening Zimbabwe’s currency, the ZiG.

“Every gramme, every kilogramme that is mined will speak volumes towards our goal of improving our gold reserves at the Reserve Bank of Zimbabwe,” he said.

Kambamura added that the Government is “leaving no stone unturned in an effort to increase gold production and to make sure that all gold deliveries go to the legal market,” with technical visits being conducted nationwide to monitor operations and combat gold smuggling.

“I wish you good luck and best wishes,” he told the management team. “Keep on driving this expansion programme, working as a team, winning as a team. When we fall, we fall as a team. I don’t expect you to fall, but to continue to grow as a team.”