Mining ZimbabweLatest Mining News, Policy and Industry Updates

Gold has reached a new all-time high amid growing expectations for Federal Reserve rate cuts and increased trader speculation on a potential second Donald Trump presidency.

Spot gold was up 1.7% to $79.24 per gram by 2:15 p.m. ET, having earlier hit a new record of $79.30 per gram. U.S. gold futures also surged 1.7% to $79.38 per gram in New York.

Bullion is now almost 20% higher for the year, boosted by anticipation of Fed loosening as well as significant buying by central banks. Geopolitical tensions have also supported the metal, which is traditionally seen as a safe-haven asset.

“Optimism about U.S. interest rate cuts as more economic data supports the case for a Fed pivot is supporting gold,” Ewa Manthey, a commodities strategist at ING Bank NV, said in a Bloomberg note on Tuesday.

“Gold is poised to keep its positive momentum going amid the current global geopolitical and macroeconomic landscape, while central bank demand is expected to grow,” Manthey added.

On Monday, Fed Chair Jerome Powell said recent data had given policymakers greater confidence that inflation is heading down to the central bank’s 2% goal. Traders have been adding bets there will be three cuts this year after Goldman Sachs said conditions were ripe for easing, with “a solid rationale” for officials to lower rates as soon as July.

Gold’s latest rally isn’t unexpected: in June, consultancy Metals Focus predicted a fresh record this year, while earlier this month Citigroup said its base case for gold in 2025 was $86.78-$96.42 per gram.

Trump’s presidential candidacy gained momentum after a failed assassination attempt over the weekend and a judge dismissed a criminal case against him. However, a Trump presidency could have potentially positive and negative impacts on gold, according to Giovanni Staunovo, a commodity analyst at UBS Group AG. It might lead to “tax cuts, supporting a shift to equities, and eventually limiting faster rate cuts,” he warned. On the other hand, tax cuts would impact U.S. fiscal balances, potentially weakening the dollar’s status and pushing buyers toward safe-haven assets such as gold, Staunovo said.

Shamva Gold Mine requires a total of US$150 million to develop into a world-class resource and establish the necessary infrastructure for gold processing, according to Kuvimba Mining House (KMH) Group CEO Trevor Barnard.

By Rudairo Mapuranga

Kuvimba is investing heavily in exploration at Shamva Mine, though currently, ore from the mine is processed at Freda Rebecca Gold Mine.

Speaking to Mining Zimbabwe, Barnard emphasized the significance of Shamva Gold Mine as a resource Kuvimba aims to fully develop before seeking additional investors.

“Shamva Mine is already operational underground, but we recognize its potential as a significant resource that needs further development. We are looking at a substantial capital investment of up to US$150 million to build the necessary infrastructure, including a processing plant, to start producing our own gold there,” Barnard stated.

In January last year, Shamva Gold Mine announced plans to develop a US$140 million open-pit mining operation at Shamva Hill, targeting the production of 200,000 tonnes of ore per month over the next 16 years.

Currently, the mine produces 45,000 tonnes of ore per month from its underground operations, a level last achieved in 1910. Operations at the Shamva Hill Open Pit project are expected to commence in two years.

Shamva Gold Mine operates as a conventional mine, utilizing 10-tonne locomotives capable of transporting up to 30 tonnes in a single draw, along with other earthmoving equipment.

Since 2020, the mine has produced an average of 520,000 tonnes of ore annually, mined at a grade of 1.70g per tonne.

Mutapa Investment Fund owned Kuvimba Mining House (KMH) has implemented mineral accountability and transparency software at its gold processing units.

By Rudairo Mapuranga

This initiative aims to ensure that the gold produced aligns with international standards on responsible sourcing and mining guidelines.

KMH’s gold cluster has partnered with Comstack to enhance accountability, transparency, and responsible mining in its operations. This partnership will be implemented across the gold cluster and extended to other clusters in the future.

KMH ranks among the top five in Africa for the installation and operationalisation of this system. It aims to comply with EU guidelines and the OECD’s five-step framework, emphasizing transparency and due diligence in maintaining a clean and accountable supply chain.

KMH Chief Executive Officer (CEO) Trevor Barnard articulated the company’s vision to mainstream accountability and transparency through traceability systems. He highlighted the step-by-step process undertaken to streamline these systems, ensuring old systems are updated and skilled personnel effectively monitor and manage them.

The partnership with Comstack, a UK-based company, is crucial for ensuring transparent gold marketing systems. This collaboration between local and international institutions underscores KMH’s commitment to maintaining transparency and accountability in their gold operations.

Speaking to Mining Zimbabwe, Barnard said, “Our business model involves taking mining investments and operationalizing mines across various mineral groups. Some mines are not operational, while others are new resources that have been recently uncovered. We ensure these mines can run sustainably and long-term, creating wealth and better livelihoods for Zimbabweans.

“Our operating model is divided into four clusters: gold, bulk commodities, platinum group minerals, and energy minerals. Today, you will visit one of our gold mines, Freda Rebecca, to look at the traceability of our product. We also have chrome assets and iron assets, a large platinum asset, and a significant lithium resource at the Sandawana Lithium Mine.

“In the gold cluster, we are the largest gold producer in Zimbabwe, producing over 300 kilograms of gold monthly. Freda Rebecca is our primary mine, with other operations at Shamva Gold Mine and Jena Mine. Additionally, we have assets like Elvington and Homestake contributing to our gold sector.

“In bulk commodities, we have chrome assets through Zimbabwe Alloys. We’re processing chrome concentrate and enhancing further beneficiation. In the platinum group minerals cluster, we have the Great Dyke Investment, a significant resource we’re working to develop. Lastly, in energy minerals, our lithium assets at Sandawana are among the top hard rock lithium resources globally. We’re negotiating partnerships to develop a processing plant to produce and export lithium concentrate and take further beneficiation steps.

“Our traceability system, developed by Comstack, ensures our gold production is traceable from mine to market, ensuring confidence in our legitimacy. This system provides regulatory compliance, transparency, quality control, sustainability, and ethical sourcing, ensuring we operate in a sustainable and efficient manner. It gives us a competitive advantage and market access, vital for our business.”