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Kambamura’s Presence at Mining Indaba Likely to Draw Heightened Investor Interest and Scrutiny

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Kambamura’s Presence at Mining Indaba Likely to Draw Heightened Investor Interest and Scrutiny

The presence of Zimbabwe’s newly appointed Minister of Mines and Mining Development, Dr Polite Kambamura, at the upcoming Investing in African Mining Indaba is expected to generate increased investor interest and scrutiny, as stakeholders seek early signals on how his leadership will shape policy direction in the country’s critical mining sector.

Mining Indaba, Africa’s premier mining investment platform, brings together global mining houses, institutional investors, financiers, governments, and service providers. For Zimbabwe, the timing of Dr Kambamura’s first major international engagement as Minister could not be more significant. The sector remains the backbone of the economy, accounting for the bulk of export earnings and foreign currency inflows, while also sitting at the centre of ongoing debates around fiscal policy, beneficiation, and regulatory reform.

Investors attending Indaba are likely to view Dr Kambamura’s participation as an opportunity to assess continuity versus change following his appointment. As a former deputy minister, he brings institutional knowledge and familiarity with existing frameworks, which may reassure investors seeking stability. At the same time, leadership transitions often signal a reset moment, and market participants will be watching closely for indications of a refined approach to reform, engagement, and implementation.

Responding to Mining Zimbabwe, Mineral Economics expert, independent mining policy consultant, and an adjunct lecturer at the University of Zimbabwe, Mr Layman Mlambo, said Dr Kambamura’s appointment will likely inspire confidence among investors.

“I think the combination of Dr Polite Kambamura (Minister) and Fred Moyo (Deputy Minister) is a very strong one, which is likely to inspire confidence among investors at the Mining Indaba. Kambamura is a core mining professional, being a Mining Engineer. He has significant experience in the mining industry across all scales of operations, Mlambo said.

“The same can be said of his Deputy Hon Fred Moyo, who is also a mining engineer by training and has significant and diverse industrial experience,” he continued.

“This is important because we have to balance or rather diversify the development of the mining industry both in terms of operational sizes (small-scale, medium-scale and large-scale) and minerals exploited (precious stones, precious and base metals, industrial minerals, hydrocarbons, green energy minerals, dimensional stones, rare earth elements, nuclear energy resources), as well as localize the higher stages of the value chains in the industry (beneficiation and value addition),” Mlambo noted.

“This is in line with our own development philosophy as a country, as well as in line with the Africa Mining Vision. For the first time in the history of the country, the Mines Ministry is being led by core mining professionals as Minister and Deputy Minister, which, in my view, is critical as these are experts in the area,” said Mlambo.

Mlambo said an important aspect of the appointment of the Minister and his deputy is their experience with mining policy issues.

“The other very important quality the two bring is experience with mining policy issues. Fred Moyo deputised former Mines Minister Walter Chidhakwa in the first dispensation, when many of the current legislative and policy reforms were already under discussion. Dr Polite Kambamura has also been driving these discussions as Deputy Minister of Mines and Mining Development since the advent of the New Dispensation. So this is a team of a Minister and Deputy Minister who are profoundly familiar with the genesis and course of the current policy and legislative discourses and have significant insights on and capacity to effectively articulate the expected mining industry trajectory going forward. This will definitely give confidence to both foreign and local investors across the board,” Mlambo concluded.

Key areas of scrutiny are expected to include regulatory clarity, fiscal stability, and the ease of doing business. Issues such as gold royalties, licensing timelines, security of tenure, export policies, and beneficiation requirements remain central to investment decisions. Even subtle shifts in tone or emphasis at Mining Indaba can influence how global capital perceives Zimbabwe relative to competing African jurisdictions.

In 2018, when former Minister of Mines and Mining Development Hon Winston Chitando was first appointed, he attended and addressed delegates at the Indaba. His responses impressed after being fired with questions, leading a German investor to comment that, “It is good to have one of us running the show.”

Delegates to the Mining Indaba are miners who know the mines and minerals business very well and are hard to fool. Dr Kambamura is likely to face the same scrutiny.

Beyond policy, Mining Indaba provides a platform for direct, face-to-face interaction between the minister and investors, mining executives, and development finance institutions. Such engagements are critical in building confidence, addressing misconceptions, and demonstrating a willingness to engage pragmatically with the private sector. For many investors, access to decision-makers and the ability to test policy assumptions directly carries as much weight as written legislation.

For local miners and mining suppliers, heightened investor interest driven by the minister’s attendance could translate into increased deal flow, partnerships, and financing discussions. International investors often track leadership changes closely, particularly in resource-rich economies, as they can signal shifts in enforcement, priorities, and responsiveness to industry concerns.

While long-term confidence will ultimately depend on policy delivery and consistency, Mining Indaba offers Dr Kambamura, a qualified Mining Engineer, an early opportunity to set the tone of his tenure on a global stage. How he balances reform ambitions with regulatory clarity and investment facilitation will shape not only investor sentiment at Indaba, but Zimbabwe’s broader mining narrative in the years ahead.

Gold Deliveries Increase 46.9% in 2025, ASM Sector Nearly Smashes Prior Year’s Total

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Gold Deliveries Increase 46.9% in 2025, ASM Sector Nearly Smashes Prior Year’s Total

Zimbabwe’s gold mining sector delivered a historic and record-shattering performance in 2025, officially surpassing the national 40-tonne target a month early and posting a 46.9% year-on-year surge in artisanal and small-scale mining (ASM) deliveries. The ASM sector alone produced 34,875.10 kg for the year, a figure that comes remarkably close to the entire industry’s 2024 total of 36,486.75 kg. The growth propelled national annual deliveries to a new high of 46,729.06 kg, a 28.1% increase from the previous year, Mining Zimbabwe can report.

By Rudairo Mapuranga

Preliminary December figures, released after the target was already met in November, solidified this spectacular year. Total deliveries to the country’s sole gold buyer and exporter, Fidelity Gold Refinery (FGR), for the month reached 4,941.72 kg, a significant 16.7% increase from November 2025 and an 18.7% rise compared to December 2024.

The ASM sector remained the dominant engine of growth. In December 2025, ASM deliveries reached 3,881.69 kg, representing a notable 20.0% increase from November and a 24.1% rise from December 2024. This monthly strength capped an extraordinary annual performance, where the sector’s 46.9% growth was the key driver in exceeding the government’s flagship 40-tonne goal, which was achieved by the end of November with 41,787.34 kg.

“The consistent month-on-month strength points to a transformed and formalising sector,” said an industry analyst, echoing sentiments from a previous Mining Zimbabwe exclusive. The success has been attributed to Fidelity Gold Refinery’s competitive pricing and improved support for small-scale miners.

The large-scale mining sector presented a more tempered picture. In December 2025, it delivered 1,060.03 kg, a 6.0% increase from November and a 2.5% rise year-on-year. However, the full-year tally for large-scale operations was 11,853.96 kg, reflecting a 7.0% decrease from 2024.

With the 40-tonne target secured ahead of schedule, the focus in the final month shifted to the scale of the surplus. The final 2025 total of 46.7 tonnes not only validates the confident forecasts made by industry leaders such as ZMF President Henrietta Rushwaya but also sets a formidable new benchmark for the nation’s most critical foreign currency earner, bolstering macroeconomic stability and marking a new chapter of productivity for Zimbabwe’s economy.

Bullish 2026 Gold Outlook Points to 10% Royalty Kicking In Sooner Rather Than Later

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Bullish 2026 Gold Outlook Points to 10% Royalty Kicking In Sooner Rather Than Later

Much sooner rather than later, local gold producers could find themselves subject to a 10% royalty to the Government of Zimbabwe, as global banks project gold prices to surpass US$4,800 an ounce this year, Mining Zimbabwe can report.

By Ryan Chigoche

In his 2025 National Budget presented last month, Finance Minister Mthuli Ncube proposed doubling the gold royalty rate to 10% for bullion sold above US$2,501 an ounce, a move that immediately raised concern among producers.

However, during a late-night budget debate in Parliament, Ncube softened the proposal, telling lawmakers that the higher royalty would only apply if gold prices exceeded US$5,000 an ounce.

The clarification offered temporary relief to large-scale producers, who had warned that a lower threshold could undermine viability.

Despite the adjustment, market analysts believe Zimbabwean gold producers may still be exposed to the higher royalty sooner rather than later, as major banks remain firmly bullish on the metal’s price trajectory.

Morgan Stanley said in a note released on Monday that gold prices could reach fresh record highs this year, potentially climbing to US$4,800 an ounce by the fourth quarter.

The bank cited falling interest rates, the possibility of a leadership change at the US Federal Reserve, and sustained buying by central banks and investment funds as key drivers.

Those same factors propelled gold to multiple record levels in 2025, with the metal last peaking at US$4,549.71 an ounce on Boxing Day.

Over the calendar year, gold was among the best-performing commodities, posting gains of nearly 65%.

Analysts expect the momentum to extend into this year, supported by ongoing geopolitical risks that continue to strengthen gold’s appeal as a safe-haven asset.

Morgan Stanley pointed to recent developments in Venezuela as one potential catalyst for further buying.

After delivering its strongest annual performance since 1979, gold is attracting increasingly bullish calls from major financial institutions.

Bank of America echoed the positive outlook on Monday, with analysts led by head of metals research Michael Widmer projecting gold to average US$4,538 an ounce in 2026, while remaining a key portfolio hedge.

Once the higher royalty is triggered, its material impact on producers remains uncertain.

Government officials argue that Zimbabwe must also benefit from the price boom unfolding in global gold markets, even as miners caution that higher fiscal burdens could affect production and investment decisions.

Karo Mining Cuts FY2025 Loss as Platinum Price Recovery Revives Project Momentum

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Karo Mining Cuts FY2025 Loss as Platinum Price Recovery Revives Project Momentum

Karo Mining Holdings Plc, the VFEX-listed investment company developing the Karo Platinum Project in the Great Dyke, reduced its consolidated loss in the year ended 30 September 2025, reflecting firmer platinum prices and a stabilisation of activity at a project that has faced years of weak markets and funding delays, Mining Zimbabwe reports.

By Ryan Chigoche

The group reported a loss of US$2.17 million, down from US$2.50 million in the previous year.

Although Karo remains pre-revenue and in a capital-intensive development phase, the improvement points to easing pressure after a prolonged downturn in platinum group metals that had constrained progress.

Karo holds an 85% stake in the project, with the remaining 15% owned by the Government of Zimbabwe through Generation Minerals on a free-carry basis following amendments to the Investment Framework Agreement.

The asset sits on the Great Dyke, one of the world’s most significant platinum-bearing geological formations.

The improvement follows a difficult period for the PGM market. In 2024, the average six-element basket price had fallen to around US$1,302 per ounce, weakening project economics and delaying financial close.

Construction activity was scaled back as funding discussions continued, with the impact visible in ongoing development costs and recurring losses.

Market conditions improved markedly in 2025, with the basket price rising to about US$1,882 per ounce.

The recovery was supported by tighter supply, improved industrial demand, renewed investor interest in precious metals, and persistent production challenges in South Africa.

The firmer price environment improved the project’s funding outlook and allowed construction momentum to stabilise.

This shift is reflected in the financials. Finance income rose to US$815,000 from US$329,000, mainly from interest on funds advanced to the project.

The increase helped offset higher operating expenses linked to ongoing development work and contributed to the narrower loss.

Capital investment continued to rise during the year. Property, plant and equipment increased to US$174.2 million from US$140.9 million, driven largely by capitalised mine development costs.

At the same time, liquidity remained under pressure, with cash and cash equivalents falling to US$5.6 million from US$12.4 million, while net cash used in investing activities approached US$80 million.

Funding continues to rely heavily on shareholder support, led by majority shareholder Tharisa Plc.

Total borrowings stood at about US$38 million at year-end, largely made up of VFEX-listed bonds guaranteed by Tharisa and related-party facilities.

The bonds, originally due to mature in November 2025, were extended to December 2028 following bondholder approval, with the coupon increased to 11%, reflecting tighter credit conditions and the project’s development risk.

Construction at the Karo site began in 2022 after several years of feasibility studies and permitting.

The project is planned as a fully integrated operation, including underground mining, concentrators, smelting, and refining facilities, supported by dedicated power and water infrastructure.

Capital and working capital requirements to first ore in the mill are estimated at US$499 million, making it one of the largest mining investments in Zimbabwe.

With platinum demand increasingly supported by industrial uses and emerging applications such as hydrogen technologies, and with supply constraints persisting in key producing regions, the market backdrop has improved from the 2023–2024 trough.

Karo is targeting financial close in 2026, which would unlock the next phase of construction and keep the first ore in the mill on track for around mid-2027.

While the FY2025 results do not signal a turnaround, the reduced loss suggests the worst of the downcycle may be over for the project. After years of delays driven by weak prices and funding constraints, Karo Platinum is once again moving forward under more supportive market conditions.

Gold buying prices in Zimbabwe per gram/ ounce, 8 January 2026

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Gold buying prices in Zimbabwe per gram/ ounce, 8 January 2026

Gold buying prices in Zimbabwe per gram/ ounce, 8 January 2026, from the official gold buyer and exporter Fidelity Gold Refinery (FGR).

1 oz = 31.1035 g

CategoryPrice ($/g)Price ($/oz)
SG 90% and above134.834,203.69
SG 85% and above but below 90%133.414,149.51
SG 80% and above but below 85%131.984,105.03
SG 75% and above but below 80%130.554,060.56
Sample 5g and above but below 10g128.413,994.00
Fire Assay CASH135.554,216.08

 

Note: The Fire Assay cash price applies to gold above 100g, with no sample deduction.

A sample of not more than 10g is deducted for the Fire Assay Transfer price.

High Court Dismisses Zdamwu’s Bid To Place Riozim Under Corporate Rescue

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High Court Dismisses Zdamwu’s Bid To Place Riozim Under Corporate Rescue

The High Court has dismissed an application by the Zimbabwe Diamond and Allied Minerals Workers Union (ZDAMWU) and two employees to place mining giant RioZim Limited under corporate rescue, ruling that the union lacked the legal standing to bring the case, Mining Zimbabwe can report.

By Rudairo Mapuranga

In a judgment delivered by Justice Mandaza, the court upheld a preliminary objection by RioZim, finding that ZDAMWU did not qualify as an “affected person” entitled to initiate such proceedings under the Insolvency Act. The decision halts, for now, a high-stakes legal attempt to force the troubled miner into a supervised rescue process. Notably, the court ordered each party to bear its own costs.

What is Corporate Rescue?

Corporate rescue is a legal process introduced in 2018 to replace the older judicial management system. It is designed to rehabilitate a financially distressed company by placing it under the temporary supervision of a practitioner. The goal is to develop and implement a plan to save the business, preserve jobs, and maximise returns for all stakeholders, while imposing a temporary moratorium on claims from creditors.

The Union’s Case and RioZim’s Defence

The applicants, ZDAMWU, an employee from Renco Mine, and a former employee from Kadoma, argued that RioZim was in “financial distress.” They pointed to alleged liabilities exceeding assets, adverse audit opinions, and the tragic death of a major shareholder as factors necessitating rescue to protect jobs and the company’s assets.

RioZim opposed the application vigorously, raising several technical objections. Its most successful argument was that ZDAMWU had no locus standi (legal right to sue). The company contended that while ZDAMWU is a registered trade union in the mining industry, the Insolvency Act specifically requires the applicant to be a union “representing employees of the company.”

The Court’s Reasoning: Why the Union Failed the “Busybody” Test

Justice Mandaza’s judgment centred on this point of standing. The court explained that to have locus standi, a party must show a direct, substantial, and legally recognised interest in the matter. It cited the classic distinction between a person with a genuine stake and a “busybody” who meddles without legitimate concern.

Crucially, the court referred to a Supreme Court precedent (Metallon Gold Zimbabwe v Shatirwa Investments). In that case, it was held that the Act does not provide for “a registered trade union in the industry,” but specifically for one “representing employees of the company.”

The court found that ZDAMWU, registered for the broader diamond and mining industry, did not meet this precise statutory definition for the purposes of an application against RioZim. “The first applicant is just a ‘busybody’ in the strictest sense of the word. It has no direct and substantial interest in the matter,” Justice Mandaza stated.

Consequently, the application was dismissed at this preliminary stage, without the court needing to delve into the detailed merits of RioZim’s financial health or the other technical disputes about board resolutions and affidavits.

Other Legal Arguments Briefly Addressed

The judgment also swiftly disposed of other technical points raised by the applicants:

  • Invalid Board Resolution: The court rejected the claim that RioZim’s board resolution authorising its defence was invalid, finding it met basic legal thresholds.

  • Approbation and Reprobation: The court dismissed the argument that RioZim was trying to “have its cake and eat it” by allegedly approving rescue in one context but opposing it here. The judge found RioZim had consistently opposed being placed under rescue.

  • Statutory Bar: The court clarified that the moratorium on legal proceedings (Section 126 of the Act) only takes effect after a company is placed under rescue, not before. Therefore, RioZim was fully entitled to defend itself against the application.

Outcome and Costs

The application was dismissed. On costs, RioZim had sought punitive costs, but Justice Mandaza ruled that each party should bear its own costs. The court reasoned that the case raised important legal issues and was not frivolous, vexatious, or an abuse of process; it was simply brought by a party without the required legal standing. Costs, the judge noted, should not be a deterrent to accessing justice in such circumstances.

Implications of the Judgment

The ruling reinforces a strict, formal interpretation of who can initiate corporate rescue proceedings. It underscores that a general industry union cannot automatically act for employees of a specific company under the Insolvency Act unless it is formally recognised as representing that company’s workforce. For employees seeking to place their employer under rescue, the path likely requires either a direct application by a sufficient number of them or action through a union specifically mandated for that company.

RioZim, for now, continues to operate outside the court-supervised rescue process. The judgment leaves open the possibility of a future application by a party with clear standing, should the company’s financial situation provoke further legal action.

Gold buying prices in Zimbabwe per gram/ ounce, 7 January 2026

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Gold buying prices in Zimbabwe per gram/ ounce, 7 January 2026

Gold buying prices in Zimbabwe per gram/ ounce, 7 January 2026, from the official gold buyer and exporter Fidelity Gold Refinery (FGR).

1 oz = 31.1035 g

CategoryPrice ($/g)Price ($/oz)
SG 90% and above136.424,242.37
SG 85% and above but below 90%134.984,197.57
SG 80% and above but below 85%133.544,152.78
SG 75% and above but below 80%132.094,107.67
Sample 5g and above but below 10g129.934,040.53
Fire Assay CASH137.144,264.77

 

Note: The Fire Assay cash price applies to gold above 100g, with no sample deduction.

A sample of not more than 10g is deducted for the Fire Assay Transfer price.

Mining Indaba – Why It Matters to Zimbabwe’s Mining industry

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Mining Indaba – Why It Matters to Zimbabwe’s Mining industry

Every February, the global mining industry converges in Cape Town for Investing in African Mining Indaba, the continent’s most influential mining investment conference. For Zimbabwe, participation in Mining Indaba is not ceremonial, it is strategic, economic, and increasingly critical to the country’s mining future.

By Keith Sungiso

Mining contributes more than 60% of Zimbabwe’s export earnings and remains the backbone of industrial growth, foreign currency generation, and employment. Mining Indaba offers Zimbabwe a unique, high-impact platform to engage global capital, policymakers, and technical partners in one place, at one time.

A Gateway to Capital in a Competitive Market

Africa is competing aggressively for a limited global share of mining capital. At Mining Indaba, Zimbabwe sits alongside jurisdictions such as the DRC, Zambia, Namibia, Ghana, and Botswana, which are all pitching for investment dollars. The event allows Zimbabwe to present its geological potential, policy reforms, and investment-ready projects directly to institutional investors, mining houses, development finance institutions, and private equity firms.

With capital discipline tightening globally, visibility matters. Mining Indaba allows Zimbabwean projects, particularly in gold, lithium, platinum group metals, chrome, and coal, to move from boardroom concepts to live investment conversations.

Policy Signalling and Investor Confidence

Mining Indaba is also where governments signal intent. For Zimbabwe, ministerial participation offers an opportunity to clarify policy direction, address investor concerns, and demonstrate commitment to stability and reform. Issues such as royalty structures, beneficiation, currency risk, licensing, and security of tenure are not theoretical, they are debated face-to-face with decision-makers who control capital flows.

Clear, consistent messaging at Mining Indaba can shift perceptions faster than policy documents alone. In an industry where confidence is everything, direct engagement helps narrow the trust gap.

Your chance to access high-quality investors

Mining Indaba offers Zimbabwean miners, service providers and mining suppliers a rare opportunity to connect directly with high-quality investors, strategic partners, and off-takers actively seeking viable African projects and service partnerships.

For miners, the platform opens doors to funding discussions with institutional investors, private equity firms, and development financiers looking for scalable, well-structured opportunities. For suppliers and contractors, it creates access to partnerships with major mining houses, EPCs, and technology providers seeking reliable local and regional collaborators. In a capital-constrained environment, Mining Indaba compresses months of outreach into a few days, turning visibility into real conversations that can unlock investment, joint ventures, and long-term commercial relationships.

Critical for Lithium and Energy Transition Minerals

Zimbabwe’s lithium sector has placed the country firmly on the global energy transition map. Mining Indaba is a key venue for battery manufacturers, automakers, and downstream processors seeking secure supply chains. For Zimbabwe, it is an opportunity to position itself not just as a raw material exporter, but as a future hub for value addition, refining, and regional processing.

The same applies to platinum, nickel, rare earths, and graphite minerals that are increasingly shaped by geopolitics and supply security rather than price alone.

Networking Beyond Deals

While investment deals are important, Mining Indaba’s value extends beyond transactions. Zimbabwean miners, suppliers, engineers, consultants, and regulators gain exposure to global best practice in ESG, mine safety, digitisation, financing structures, and community relations. These interactions influence how mines are planned, financed, and operated long after the conference ends.

For local mining companies, it is also a chance to benchmark themselves against continental peers and build partnerships that would be difficult to access from Harare alone.

Reframing Zimbabwe’s Mining Narrative

Perhaps most importantly, Mining Indaba allows Zimbabwe to tell its own story. For years, narratives around risk and policy uncertainty have overshadowed the country’s exceptional mineral endowment. Indaba provides a controlled environment where Zimbabwe can present progress, explain reforms, and highlight success stories directly to the global market.

As competition for capital intensifies and the energy transition accelerates, Zimbabwe cannot afford to be absent from platforms that shape Africa’s mining investment agenda.

For Zimbabwe’s mining industry, Mining Indaba is not just another conference, it is a gateway to capital, credibility, and long-term growth.

Mining Zimbabwe is distributing Edition 85 at Mining Indaba 2025. Get in touch with us for advertising opportunities on +263775523000 or email: [email protected].

Premier Secures Canmax Deadline Extension as Zulu Lithium Faces Creditor and Funding Pressure

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Premier Secures Canmax Deadline Extension as Zulu Lithium Faces Creditor and Funding Pressure

London Stock Exchange–listed mining and exploration company Premier African Minerals Limited has secured a critical extension to its long stop date under the Restated Offtake and Prepayment Agreement with Canmax Technologies Co., Ltd, offering the company temporary breathing room as financial and legal pressures mount around its flagship Zulu Lithium and Tantalum Project in Fort Rixon, Mining Zimbabwe can report.

By Rudairo Mapuranga

The extension comes days after Premier disclosed enforcement action by JR Goddard Contracting, which has moved to attach movable assets at Zulu Lithium in pursuit of more than US$2.2 million under a High Court writ. Together, the developments underscore the fragile balance Premier is attempting to maintain between creditor management, operational stabilisation, and funding negotiations.

Under the amended agreement, the long stop date has been extended from 31 December 2025 to the earlier of 30 June 2026 or the date on which a reputable buyer acceptable to Canmax enters into a binding agreement to settle or manage Canmax’s prepayment exposure, including accrued interest.

While Premier has welcomed the extension, the revised terms also increase Canmax’s oversight and leverage. Notably, the requirement for Premier to procure a non-binding expression of interest within 30 days has been removed, easing immediate pressure, but this has been replaced by stricter governance and security conditions.

These include a clause preventing current office bearers at both Premier and Zulu Lithium from resigning or being removed without Canmax’s prior written consent during the extension period, effectively giving the offtake partner veto power over leadership changes at a sensitive time.

Premier is also required to maintain the full security package agreed in December 2024, reinforcing Canmax’s position as a secured counterparty.

Managing Director Graham Hill described the extension as providing “welcome clarity,” but for investors, the announcement is a double-edged sword.

On one hand, the agreement reduces the immediate risk of Canmax enforcing its rights under the prepayment structure before the end of 2025, an outcome that could have been devastating for Premier given its current liquidity position.

On the other hand, the conditions highlight the extent to which Premier remains financially constrained and dependent on creditor goodwill, particularly as it seeks to bring the Xinhai flotation plant into operation and demonstrate consistent commercial production at Zulu.

Zulu Lithium remains the linchpin of Premier’s future, yet it is currently:

  • Subject to asset attachment risk from JR Goddard Contracting
  • Dependent on interim equity raises and debt-to-equity conversions
  • Under technical remediation following third-party plant audits
  • Required to meet production milestones to unlock refinancing or offtake restructuring options

Market observers note that while the Canmax extension buys time, it does not resolve the underlying issue: Zulu must deliver stable production quickly, or Premier risks further dilution, enforcement actions, or loss of strategic control.

The coming months will be critical. Failure to meet the conditions of the amended agreement would allow Canmax to immediately exercise its rights, potentially compounding the company’s already complex creditor landscape.

For now, Premier has avoided an immediate escalation with its largest offtake partner, but with enforcement proceedings active elsewhere, investor confidence will hinge on whether the Zulu turnaround can finally translate into sustained output.

Zimbabwe’s Royalty Revision Secures Bilboes Project’s US$484 Million Future

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Zimbabwe’s Royalty Revision Secures Bilboes Project’s US$484 Million Future

Multi-listed, gold-focused miner Caledonia Mining Corporation Plc has confirmed that the enacted Zimbabwe Finance Act of 2025 has formally cemented a favourable revision to the gold royalty regime, providing critical fiscal certainty for its flagship US$484 million Bilboes Gold Project, Mining Zimbabwe can report.

By Rudairo Mapuranga

The new law confirms the withdrawal of earlier, more punitive budget proposals that had threatened the project’s economics.

The key change, now signed into law, is the structure of a sliding-scale royalty for large-scale miners. The 10% top rate will now only apply when the gold price exceeds US$5,000 per ounce, a threshold far above current and historical market levels. This marks a significant retreat from the original 2026 budget statement in late November, which proposed the 10% rate kicking in at a price of just US$2,501 per ounce.

In its announcement, Caledonia stated that “no amendments are therefore required” to the Bilboes Project’s Technical Report Summary, which was published on November 25, 2025. This confirms that the project’s financial model and projected returns remain intact under the new fiscal terms.

“The enacted provisions confirm the position outlined in the announcement of December 19, 2025,” Caledonia stated. “Specifically, the higher royalty rate of 10% will only apply if the gold price exceeds US$5,000 per ounce, and the other proposed changes to the tax and royalty regime that were highlighted in the announcement of December 1, 2025 have been withdrawn.”

This finality removes a major investment risk that had clouded the project since the initial budget announcement.

The government’s policy shift is a direct result of concerted advocacy from the mining industry. The original proposal triggered immediate warnings from the Chamber of Mines and the Zimbabwe Miners Federation (ZMF), who argued it would render large-scale projects marginal and deter future investment.

By raising the 10% threshold to US$5,000—a price gold has never reached—the government has effectively created a royalty system that provides revenue upside only in an extreme bullion scenario, while maintaining a competitive base for investment. The 5% rate for prices between US$1,200 and US$5,000 aligns with regional norms and ensures project viability.

For Bilboes, a project designed to produce over 170,000 ounces of gold annually, the difference between a 10% royalty at US$2,500/oz and at US$5,000/oz is profound. It preserves the projected cash flows that underpin the project’s half-billion-dollar valuation and its potential to become one of Zimbabwe’s largest gold mines.

The swift government response to industry feedback and its decision to enact the more moderate regime is being viewed as a positive signal to foreign investors. It demonstrates a pragmatic approach to resource nationalism, seeking to balance fiscal needs with the capital-intensive nature of major mining projects.

With the fiscal framework now settled, Caledonia can accelerate its funding and development plans for Bilboes, moving the project closer to a construction decision. The project represents one of the single largest potential investments in Zimbabwe’s mining sector and is a cornerstone of the government’s ambition to grow gold output to 100 tonnes annually.

The resolution underscores a fundamental principle in resource economics: stability and competitiveness in fiscal policy are paramount to unlocking long-term, capital-intensive investments that ultimately deliver greater and more sustainable value to both shareholders and the nation.

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