Mining ZimbabweLatest Mining News, Policy, and Industry Updates

Kavango Resources, a London Stock Exchange-listed mining exploration group, has expressed concerns about the risks its overseas projects face, particularly in jurisdictions outside the UK. The company is worried about the potential impacts of political and economic instability, changes to regulatory frameworks, and the uncertainty surrounding licences and permits, all of which could affect its operations in Zimbabwe.

By Ryan Chigoche

Kavango Resources, a London Stock Exchange-listed mining group, has raised concerns about the risks its projects face in Zimbabwe. These risks stem from the country’s political, economic, and regulatory challenges, which could affect the company’s operations.

Kavango Resources, an exploration company focused on base and precious metals in Southern Africa, is developing gold deposits in Zimbabwe. The company aims to bring these deposits into production using modern mechanised mining methods.

In Zimbabwe, Kavango owns three projects: Hillside, Nara Gold, and Leopard. Hillside, covering 503 hectares with 44 gold claims, is the company’s primary focus due to its high potential. The Nara Gold project, located near Bulawayo, includes four mines that historically produced over 90,000 ounces of gold. Leopard, which consists of two claim groups, has a recorded output of 2,000 ounces.

However, operating in Zimbabwe comes with its challenges. Kavango has expressed concerns about the country’s regulatory environment, which is often subject to changes. The company relies heavily on a stable legal and fiscal framework, making these uncertainties a significant risk to its operations.

In its 2024 strategic report, CEO Ben Turney commented: “The licences and operations of the Group are in jurisdictions outside the United Kingdom and accordingly there will be a number of risks which the Group will be unable to control.” He further added, “Whilst the Group will make every effort to ensure it has robust commercial agreements covering its activities, there is a risk that the Group’s activities will be adversely affected by economic and political factors such as the imposition of additional taxes and charges, cancellation or suspension of licences, and changes to the laws governing mineral exploration and operations.”

Turney also highlighted the uncertainty surrounding its licences and permits, noting that these could be withdrawn or changed at any time. “The Group’s activities will be dependent upon the grant of appropriate licences, concessions, leases, permits, and regulatory consents that may be withdrawn or made subject to limitations. There can be no assurance that they will be granted or renewed or, if so, on what terms. There is also the possibility that the terms of any licence may be changed other than as represented or expected.”

Despite these challenges, Kavango Resources is committed to advancing its Zimbabwean projects. The company raised £6.5 million to fast-track development and secure financial resilience. Furthermore, Kavango secured a US$5 million interest-free loan from Zimbabwean pension funds to help develop its gold mines and build a processing plant at the Hillside Project.

While Kavango has made significant progress, the political and economic risks in Zimbabwe remain substantial. The company will need to carefully navigate these challenges to ensure the success of its mining ventures in the region.

The Zimbabwe Miners Federation (ZMF) is set to enter into a transformative partnership with Dinson Iron and Steel Company (DISCO), marking a new era of collaboration between Zimbabwe’s burgeoning steel manufacturing sector and the nation’s influential small-scale mining industry.

By Rudairo Mapuranga

Speaking during a recent tour of DISCO’s state-of-the-art facility in Manhize, ZMF President Henrietta Rushwaya emphasised that Zimbabwe’s mining sector, particularly its small-scale players, will no longer rely on imported steel machinery and tools. She announced that ZMF will soon sign a Memorandum of Understanding (MoU), leading to a formal agreement positioning ZMF as a key consumer and distributor of DISCO’s steel products.

“This is the right time for us to engage with Dinson Iron and Steel Company,” said Rushwaya. “Gone are the days when we imported hammer mills, ball mills, and other steel products from outside Zimbabwe. ZMF represents a significant market for these products, and we are committed to supporting local industry.”

According to Rushwaya, ZMF will mobilise its vast network of small-scale miners and the broader public to consume locally manufactured steel, which she said is “cheaper, stronger, and better” than imported alternatives. The collaboration is expected to spur growth within Zimbabwe’s industrial ecosystem by strengthening backward linkages between mining and manufacturing.

“Our small-scale miners are eager to access affordable, high-quality equipment. This partnership guarantees supply, improves reliability, and most importantly, puts money back into the Zimbabwean economy,” she said.

Rushwaya hailed DISCO as one of Zimbabwe’s most strategic industrial assets, with the capacity to revolutionise the country’s manufacturing and export potential.

“Dinson is a game-changer not just for the mining sector but for Zimbabwe’s re-industrialisation as a whole. For the first time in years, Zimbabwe will not just stop importing steel—we will begin exporting it. That speaks volumes about where our economy is headed,” Rushwaya said.

The move aligns with Zimbabwe’s vision of becoming an upper-middle-income economy by 2030 through local value addition and beneficiation. As the mining sector contributes over 70% to foreign direct investment and 80% to exports, strengthening domestic industrial capacity will further anchor the country’s development strategy.