Mining ZimbabweLatest Mining News, Policy and Industry Updates

One of the country’s leading bullion producers, Caledonia Mining Corp, has lowered its 2026 capital expenditure forecast by 42% to $103.3 million, citing clearer visibility on the timing of deposits for long-lead equipment at its Bilboes project in Zimbabwe, Mining Zimbabwe can report.

By Ryan Chigoche

The $75.6 million reduction comes as the gold producer redirects spending towards its Blanket Mine in Gwanda, where output is recovering from a weak start to the year.

The Victoria Falls, New York and London-listed company cut planned growth capital for Bilboes to $48 million from $132.1 million.

Sustaining capital at Blanket was increased to $48 million from $43 million, with an additional $3.5 million allocated to growth initiatives at the same operation. Exploration spending at the Motapa project was maintained at $3.8 million.

Management said the revised programme does not reflect any change to Bilboes’ timetable, scope or overall cost. Rather, it stems from a better understanding of when deposits for long-lead equipment are due, based on ongoing procurement activity.

“The reduction in the planned capital expenditure at Bilboes does not reflect any change in the project timetable, scope or costs,” the company said in its second-quarter results. “It reflects a better understanding of the timing of deposits required for long-lead-time equipment, which continues to emerge from the ongoing procurement programme.”

Production Recovery

The capital reset arrives alongside a stronger second-quarter performance, with surging gold prices offsetting an 18% year-on-year production decline at Blanket.

Profit after tax climbed 27% to $30.02 million from $23.60 million in the same period last year, while revenue increased 16% to $75.9 million from $65.3 million, largely driven by a higher realised gold price.

Turning to operational metrics, Blanket produced 17,360 ounces during the quarter, down from 21,070 ounces a year earlier. Yet output rose 18% compared to the first quarter of 2026, signalling early momentum in the company’s recovery strategy.

This improvement reflects three key operational changes: better access to higher-grade mining zones, the completion of an elution plant upgrade and the introduction of a seven-day working week. The new shift schedule is anticipated to boost ore processing by approximately 200 tonnes per day starting in September.

Financial metrics similarly improved, with earnings before interest, tax, depreciation and amortisation rising 16% to $45.8 million from $39.5 million, while net cash from operating activities edged up to $28.4 million from $28.1 million.

Exploration and Cost Pressures

While Caledonia advances exploration across its portfolio, cost pressures continue to weigh on the company’s near-term profitability.

Drilling at Motapa has confirmed mineralisation over approximately six kilometres of strike, with a maiden resource estimate expected later this year. At Blanket, the K-Pits programme has identified significant oxide and sulphide mineralisation near existing operations, which could provide a new near-term mining opportunity.

First-half costs remained elevated, partly due to non-operating items, including US$3.2 million in employee trust dividend payments, US$4 million in advisory fees from the convertible bond issue and US$3.2 million in additional government royalties tied to higher gold prices. Sustaining capital expenditure also rose, reflecting ongoing infrastructure and workforce investments.

Management maintained full-year on-mine cost guidance of US$1,600-US$1,800 per ounce, while all-in sustaining costs are expected to be between US$2,500 and US$2,700 per ounce. The higher AISC guidance reflects increased sustaining capital aimed at boosting production from 2027 onwards, with further details expected towards year-end.

The company faces a balancing act between investing for future growth and managing near-term cost pressures, although the strong gold price environment provides some cushion.

Safety Performance and Outlook

Beyond the production and profit gains, Blanket achieved a record safety performance during the quarter, with approximately 395 consecutive days without a lost-time injury and more than 5.4 million injury-free man-hours logged, according to Chief Executive Mark Learmonth.

The operational measures implemented to enhance mine flexibility and ore availability are beginning to bear fruit, Learmonth said. The June introduction of a seven-day working week represents a significant milestone, with the company expecting to process an additional 200 tonnes of ore per day from September. Combined with the elution plant upgrade completed earlier this year and continued progress in accessing higher-grade material, Caledonia anticipates further production strengthening in the second half of 2026.

The favourable gold price environment, coupled with these operational improvements, lifted quarterly revenue to $75.9 million and profit after tax to $30 million, while bolstering the company’s cash reserves.

Caledonia affirmed that it remains well positioned to finance growth initiatives at both Bilboes and Blanket while sustaining its dividend programme for shareholders.

A 32-year-old Mutare customs clearance runner accused of orchestrating a sophisticated scheme to smuggle 204 tonnes of lithium ore to China using a cloned export permit from Bikita Minerals has been arrested and remanded in custody following his escape to Mozambique, Mining Zimbabwe can report.

By Rudairo Mapuranga

Simbarashe Shazha, of Greenside, appeared before Mutare magistrate Poterai Gwezhira facing two counts of attempted export and export of unbeneficiated base mineral ore under the Criminal Law (Codification and Reform) Act and the Base Minerals Export Control (Unbeneficiated Base Mineral Ores) Order, 2023.

The court heard that Shazha, who allegedly fled to Mozambique after his accomplices were arrested, was apprehended on Thursday upon his return to Zimbabwe.

Prosecutor Deliwe Masibhera alleged that in May, Shazha conspired with Tsitsi Manyumwa, a co-director of Kunshan Mineral Consultancy, and a Chinese national, Li Dewen, who remains at large, to fraudulently export lithium ore to China via Forbes Border Post.

Bikita Minerals Permit Fraudulently Cloned

According to investigators from the Zimbabwe Anti-Corruption Commission (ZACC), the syndicate cloned an expired export permit issued to Bikita Minerals (Pvt) Ltd and ZimAlloys Chrome for petalite concentrate to facilitate the smuggling operation. The fraudulent documentation was used to make the illegal export appear legitimate.

This incident follows a pattern of fraudulent permit use targeting legitimate mining operations. In a previous case, a Chinese businesswoman was denied bail for allegedly defrauding a company of US$160,000 using a counterfeit lithium export permit. Additionally, sources indicate that Chinese mining companies, including Sinomine—which owns Bikita Minerals—have raised concerns with Zimbabwean authorities about the fraudulent use of their export permits by smuggling syndicates.

Six-Truck Convoy and Sophisticated Smuggling Operation

The State alleged that between May 15 and 17, Manyumwa procured six haulage trucks to collect cargo containers from MSC for loading with lithium ore warehoused at CEVAFRICA Logistics Zimbabwe in Harare. The trucks then proceeded to Forbes Border Post, intending to cross into Mozambique for onward transmission to China.

On May 20, at around 5am, two trucks arrived at Forbes Border Post carrying the lithium ore. Shazha allegedly approached drivers Peter Duri and Philip Majada and handed them export documents and ZIMRA road manifests declaring the containers empty.

However, ZIMRA officers became suspicious after noticing that the containers were sealed and verified the load. The drivers allegedly admitted they were carrying lithium ore, leading to the seizure of the trucks. One driver was found in possession of a Mozambican Transit Declaration Form indicating that he was transporting lithium to Beira, contradicting the ZIMRA manifest.

Multi-Truck Smuggling Network Uncovered

Investigations revealed that the two intercepted trucks were part of a six-truck convoy ferrying lithium ore to Beira en route to China. Four trucks abandoned the exit queue and returned to Harare after realising that the operation had been compromised.

Two containers were later recovered at a car park near Glen View One Government Primary School in Harare on June 18. Another truck transferred its container to a different haulage vehicle in Msasa on May 28, with Shazha allegedly supplying the driver, Rodrick Macheke, with fraudulent export documents on June 4. Macheke used these documents to exit Zimbabwe on June 6. A fourth truck was intercepted in Goromonzi and seized at BAK storage.

ZACC investigations indicate that while the syndicate targeted approximately 204 tonnes of lithium ore for export, only about 34 tonnes are believed to have successfully left the country before the operation was disrupted. The seized lithium ore is valued at approximately US$100,000.

Context of Zimbabwe’s Lithium Export Ban

The smuggling attempt comes amid Zimbabwe’s tightened controls on unprocessed lithium exports. In December 2022, the government banned exports of unbeneficiated lithium ore, allowing exports only under a written ministerial permit. In February 2026, authorities suspended exports of all raw minerals and lithium concentrates, citing export malpractices and mineral leakages.

The government has since classified 14 minerals as “critical” and banned the export of all raw or unbeneficiated forms, with mandatory state shareholding through Special Purpose Vehicles now enshrined in law. Mines and Mining Development Minister Dr Polite Kambamura has stated: “The era of shipping raw rock for marginal returns is over.”

Shazha, represented by Mr Nyasha Mukonyora of Gonese and Ndlovu Legal Practitioners, was remanded in custody to August 12 pending a bail application. His co-accused, Manyumwa, previously appeared before Harare Magistrate Ruth Mutare and was granted US$1,000 bail. Li Dewen remains at large as investigations continue.

Zimbabwe’s gold sector is set to remain supported by historically high bullion prices despite mounting pressure from elevated interest rates, with the World Gold Council (WGC) saying resilient central bank buying, strong Asian demand, and renewed inflation risks continue to underpin the precious metal’s longer-term outlook, Mining Zimbabwe can report.

By Ryan Chigoche

The assessment comes as Zimbabwe steps up efforts to increase gold production and export earnings, positioning the country’s top foreign currency earner to benefit if bullion prices remain near record highs, even as global markets navigate an uncertain monetary policy environment.

Gold ended July largely unchanged at US$4,027 per ounce after repeatedly testing the US$4,000 level during the month. According to the WGC, positive price momentum and renewed inflows into gold-backed exchange-traded funds (ETFs) offset pressure from rising bond yields, while a weaker US dollar also provided support.

The Council said European investors led ETF inflows in July, marking a notable shift as investors increased allocations to gold despite real bond yields reaching multi-year highs.

More significantly, the WGC warned that the risk of a second wave of inflation is rising, although it does not expect a repeat of the prolonged inflation spiral experienced during the 1970s.

Instead of oil shocks, today’s inflation risks are increasingly tied to geopolitical fragmentation, strategic stockpiling of critical minerals and metals, and rising government and corporate spending on artificial intelligence and industrial policy.

“Inflation could reignite if another shock arrives before inflation expectations have fully normalised,” the Council said in its latest Gold Market Commentary.

For Zimbabwe, the outlook could provide a favourable backdrop for producers at a time when the Government is seeking to expand gold output, formalise artisanal mining, and strengthen mineral export earnings.

Sustained bullion prices above US$4,000 an ounce improve operating margins for producers, increase the economic viability of lower-grade deposits, and can encourage further investment in mine expansion and exploration.

The WGC cautioned, however, that higher inflation alone is unlikely to trigger another sharp rally in gold.

Instead, bullion’s performance will depend on how inflation influences real interest rates, the US dollar, and global economic growth. Gold tends to perform more strongly when inflation is accompanied by falling real yields, a weaker dollar, or rising recession risks.

The Council also argued that today’s global gold market is being driven by a broader set of forces than in previous decades.

While US monetary policy remains influential, central bank purchases and physical demand from Asian consumers have emerged as increasingly important pillars of the market, helping gold maintain elevated prices despite historically restrictive real interest rates since 2023.

That shift is particularly relevant for Zimbabwe, whose gold industry has become increasingly important to national export earnings and foreign currency generation. A prolonged period of elevated prices would support mining revenues while strengthening government royalty collections and export receipts.

The WGC expects inflation risks to remain elevated but believes any future gains in gold are more likely to be driven by slowing economic growth, lower long-term bond yields, and continued official-sector buying than by inflation alone.

“Together with continued central bank buying and Asian consumer demand, that should prove supportive for gold, albeit without necessarily repeating the outsized gains of 2025,” the Council said.

• Muzarabani Oil and Gas Project Locks in November Spud as Rig Contract Signed

The Muzarabani oil and gas project, one of Africa’s largest undeveloped hydrocarbon resources with an estimated US$90 billion in-place value, has confirmed a November 2026 spud date for its high-impact Musuma-1 exploration well after Invictus Energy executed a revised drilling contract with Exalo Drilling S.A., Mining Zimbabwe can report.

By Rudairo Mapuranga

The Deed of Variation to the drilling contract formalises the provision of Exalo Rig 202 for the well, which will target an estimated gross mean unrisked prospective resource of 1.2 trillion cubic feet of gas and 73 million barrels of condensate in the eastern portion of the Cabora Bassa licence area. The well is designed as the first high-impact exploration test outside the Mukuyu gas-condensate discovery area, targeting a new play type identified through the CB23 seismic survey.

“This enables Invictus to confirm the Musuma-1 spud for November 2026,” Invictus Managing Director Scott Macmillan said. “Musuma-1 is a high-impact exploration well with the potential to materially expand the resource base of the Cabora Bassa Project and complement the Mukuyu gas-condensate discovery.”

Rig Preparation and Mobilisation Underway

Exalo will undertake a comprehensive maintenance and operational readiness campaign for Rig 202 ahead of its relocation from the Mukuyu area to the Musuma-1 wellsite. The inspection and maintenance scope has been completed, with preparation work designed to support safe mobilisation, rig-up, and drilling operations.

The rig preparation campaign will include critical maintenance activities, with Exalo personnel working alongside Invictus and Geo Associates drilling teams. Procurement of the remaining well services has also substantially progressed, with contracts being prepared for award, followed by equipment preparation and staged mobilisation to the Musuma-1 location.

Wellpad Construction to Begin Following Cultural Ceremonies

Construction of the Musuma-1 wellpad and associated civil works is scheduled to commence next week following the completion of customary cultural ceremonies and traditional protocols with local leaders and host communities.

The civil works programme will include construction of the wellpad and supporting site infrastructure, as well as upgrades to the road network required for mobilisation of the drilling rig and associated services.

Regulatory Framework in Place

The contract milestone follows the formal signing of the Petroleum Production Sharing Agreement (PPSA) in May 2026 between the Government of Zimbabwe and Geo Associates, Invictus’ 80%-owned subsidiary. The agreement established the legal and fiscal framework governing oil and gas exploration, production, and revenue sharing at the Cabora Bassa project.

The PPSA adopts a hybrid model allowing the Government to receive its share either in cash or in petroleum products, using a sliding-scale model tied to project returns. “In times of low returns, the contractor gets a higher share. In times of higher returns, Government gets a much bigger share,” Macmillan explained at the signing.

Basin Potential

The broader Cabora Bassa Basin is estimated to contain approximately 1.38 billion barrels of oil and condensate, with the Mukuyu gas field alone holding up to 20 trillion cubic feet of gas and 845 million barrels of conventional gas condensate. Independent estimates value the in-place resources at approximately US$90 billion at current market prices.

The project has been granted National Project Status and Special Economic Zone designation, providing fiscal and non-fiscal incentives to facilitate equipment imports and accelerate development timelines. The Mutapa Investment Fund, Zimbabwe’s sovereign wealth fund, holds a significant shareholding position in Invictus Energy through the project structure.

With wellpad construction, civil works, logistics, and rig maintenance activities now progressing in parallel, all critical path activities are underway to support the November drilling schedule. “The Company looks forward to providing further updates as we move into the execution phase of the drilling campaign,” Macmillan said.