Mining ZimbabweLatest Mining News, Policy and Industry Updates

Kavango Resources plc has raised approximately US$8.4 million through parallel subscriptions in the United Kingdom and Zimbabwe, funds that will accelerate the expansion of its gold production footprint in Zimbabwe, Mining Zimbabwe can report.

By Rudairo Mapuranga

The Southern Africa-focused metals exploration and gold production company announced on 6 March that it secured about US$4.7 million from investors on the Victoria Falls Stock Exchange (VFEX) and £2.8 million (approximately US$3.7 million) from the UK subscription, both at a price of £0.01 per share.

The pricing represents a significant vote of confidence in the company’s Zimbabwe strategy, coming in at approximately a 33% premium to the mid-market price recorded on 5 March 2026. A total of 629,991,138 new ordinary shares will be issued under the two subscription tranches.

In a move signalling strong internal confidence, Chairman and Interim Chief Executive Officer Peter Wynter Bee personally participated in the UK leg of the fundraising, subscribing for 20 million shares at the same price.

Wynter Bee brings extensive Zimbabwean mining experience, having previously worked on developing mines in the country, including his tenure at Reunion Mining plc, which developed operations in Zimbabwe and Zambia before being acquired by Anglo American in 1999. His participation is viewed by market observers as a strong signal of management’s alignment with shareholder interests.

The company has applied for the newly issued UK shares to be admitted to trading on the Main Market of the London Stock Exchange. For the VFEX shares, a two-step process will see them first admitted to trading on the LSE before being transferred to Zimbabwe through a branch register control account, enabling direct listing and trading on the VFEX.

Both admissions are expected to become effective, with trading set to commence at 8:00 a.m. on or around 16 March 2026.

US$13.5 Million War Chest for Zimbabwe Growth

The fresh capital injection significantly strengthens Kavango’s financial position. When combined with existing cash resources and previously committed funds, the company now has approximately US$13.5 million available for deployment across its Zimbabwean portfolio.

According to the company, proceeds will be used for:

• Expansion of the Hillside gold production
• Acquisition of the Nara Gold Project
• Associated legal and transaction costs
• Further exploration activities
• General working capital

The Hillside Gold Project, located in the Filabusi Greenstone Belt in Matabeleland South, remains Kavango’s flagship asset. The project includes multiple gold prospects such as Bill’s Luck, Nightshift, Britain, and Steenbok, where exploration has confirmed mineralised structures suitable for both open-pit and underground mining.

Currently, the project is producing approximately 2 kilogrammes of gold per month from small-scale operations. The company plans to scale up production through expanded mining and processing infrastructure, supported by the new funding.

The fundraising also supports the planned acquisition of the Nara Gold Project, which comprises approximately 45 contiguous gold claims near Bulawayo in Matabeleland South. Funds have been allocated for both the acquisition and any related legal processes.

Strong Timing Amid Gold Market Momentum

The successful capital raise comes at a strategic time for gold-focused miners. Gold remains one of Zimbabwe’s most important minerals, accounting for the largest share of mineral exports and serving as a key source of foreign currency.

Zimbabwe’s gold sector recorded a strong performance in 2025, with 44.7 tonnes valued at US$4.8 billion exported. With global bullion prices remaining near historic highs, investor appetite for gold exposure continues to grow.

Kavango’s ability to secure funding from both local and international investors is particularly notable given the challenging financing environment facing junior miners globally, characterised by tightening credit conditions and volatile commodity markets.

Growing Confidence in Zimbabwe Mining

Kavango’s fundraising reflects broader momentum in Zimbabwe’s mining investment landscape. While its projects remain at early production stages, other international players, including Caledonia Mining Corporation and Namib Minerals, are advancing plans to develop new gold mines in the country.

These developments support Zimbabwe’s long-term strategy to increase mining revenues and formalise gold production, which has historically seen significant volumes channelled through informal and artisanal mining.

A quiet but profound shift is underway in Zimbabwe’s mining sector, driven by a simple yet powerful question: why are foreign investors bringing their own chief executives, finance directors, and technical managers when Zimbabwe has a deep pool of qualified professionals?

By Rudairo Maparanga

Speaking at a workshop on energy minerals co-hosted by ActionAid Zimbabwe and the Parliament of Zimbabwe, the Ministry of Mines and Mining Development Permanent Secretary, Pfungwa Kunaka, put the issue squarely on the table, declaring that the era of imported management must end if the country is to truly benefit from its mineral wealth.

“Currently, we have concerns, Chairman, that in some mining projects, they are not employing our own people at senior levels. The chief executive officers, the operating officers, and those in finance, some of them are being brought from abroad,” Kunaka told lawmakers and civil society representatives.

His remarks strike at the heart of a tension that has long simmered beneath Zimbabwe’s mining boom: high levels of foreign investment have not translated into high-level local employment. While thousands of Zimbabweans work as miners, truck drivers, and general labourers, executive positions remain largely occupied by expatriates.

“We are looking at coming up with a policy, Chairman, so that employment in those areas recognises our skills. It is an area that we want to examine very critically,” Kunaka said.

Kunaka’s concerns are not theoretical. The platinum group metals (PGM) sector provides a strong counterexample of what is possible when companies commit to localisation.

At Zimplats, Zimbabwe’s largest platinum producer, the executive management committee reflects significant local expertise. Chief Executive Officer Alexander Mhembere leads a team that includes Chief Finance Officer Patricia Zvandasara, Managing Director Dr Stanley Segula, Chief Technical Officer Amend Chiduma, Human Resources Director Takawira Maswiswi, and Corporate Affairs Head Sibusisiwe Chindove.

The same trend is evident at Mimosa Mining Company and Unki Mine. These operations demonstrate that world-class mining standards do not require imported leadership. Zimbabwean professionals can and do run complex, multi-billion-dollar operations efficiently and profitably.

“Throughout the value chain, including laboratories and technical services, these issues need to be addressed,” Kunaka added, signalling that the localisation drive extends beyond executive roles to specialised technical functions where expatriates still dominate.

The gap between investment and local employment has not gone unnoticed by industry observers. Mining economist Lyman Mlambo emphasised that localising technical services must be a priority.

“Industry needs to reduce imports of technical services and utilise local resources. This includes Environmental Impact Assessments, Social Impact Assessments, Mine Closure Plans, feasibility studies, and repair and maintenance services,” Mlambo said.

He acknowledged that building local capacity requires strengthening educational institutions.

“Employing locals requires that our educational and training institutions produce high-quality graduates who are employable at all levels. Industry and government share the responsibility to strengthen mining training institutions and review curricula to align with industry needs.”

Government is already moving in this direction. Minister of Mines and Mining Development Polite Kambamura recently announced plans to compel mining companies to take students on industrial attachment.

“Graduates and undergraduates are not finding attachment opportunities, so we are going to make it mandatory for mining companies to absorb students. We will also strengthen skills and knowledge transfer,” Kambamura said.

The Caledonia Model: 100% Local Workforce

Caledonia Mining Corporation provides another compelling example. The company reports that its entire workforce at Blanket Mine consists of Zimbabwean nationals, with 92% of its 2023 procurement sourced from Zimbabwean-owned companies.

“100% of employees at Blanket Mine are Zimbabwean. All employees are paid in U.S. dollars, and all undergo safety training,” the company said in its latest ESG report.

Caledonia’s approach demonstrates that local employment is not merely a compliance requirement but a strategic advantage that strengthens community relations and operational stability.

The demand for local employment continues to gain traction in mining communities. The Association of Junior Mining Professionals of Zimbabwe (AJMPZ), through Secretary General Hazel Karoro, has called for policies that prioritise skills transfer and local employment across the mining value chain.

Karoro emphasised the need to empower local human resources managers to make independent hiring decisions, rather than having recruitment dictated by foreign headquarters.

At a recent minerals governance dialogue in Manicaland, workers echoed similar concerns. Proud Nyakunu of the Zimbabwe Diamond and Allied Workers Union stressed the importance of policies that favour local employment and procurement.

“This creates jobs and stimulates the local economy. Meaningful community participation in decision-making processes related to mining projects is essential,” Nyakunu said.

The ESG Dimension

Environmental, Social and Governance (ESG) considerations are increasingly shaping investor expectations around local employment and community benefit. Namib Minerals recently highlighted its community investments at How Mine, including staff housing, a school block, and healthcare support.

These initiatives reinforce the importance of strong community relationships in de-risking mining operations and ensuring long-term sustainability.

Kunaka’s intervention signals that government is preparing to move from concern to action. A policy framework that promotes local employment at senior levels, strengthens skills transfer, and ensures Zimbabweans occupy decision-making roles across the mining value chain is now under consideration.

The PGM sector has shown it can be done. Caledonia has shown it can be done. The question remains: why should every mining investor in Zimbabwe not meet the same standard?

“When you look at the ban, these are the opportunities it will create,” Kunaka said, linking export restrictions to a broader vision of a mining sector that delivers not only revenue, but also skills, jobs, and industrial capacity.

The implementation of that vision, he acknowledged, will be critical. But the direction is clear: investment without meaningful local participation at senior levels is no longer sufficient. Zimbabweans must benefit—not only as labourers, but as leaders.

Police in Zimbabwe have arrested a foreign national in connection with an alleged US$1.5 million mining investment fraud, as authorities intensify efforts to curb financial crimes and illegal mineral activities in the sector.

According to a press statement issued by the Zimbabwe Republic Police, the suspect is linked to a case involving fraud and the externalisation of funds in which another foreign investor was allegedly duped of US$1.5 million in a mining investment deal.

The suspect was arrested on 14 March 2026 at the Norton Tollgate while travelling in a black Lexus SUV with three other individuals. During a search of the vehicle, police reportedly recovered prepared dagga, leading to an additional charge of unlawful possession.

Authorities later searched the suspect’s residence in Borrowdale, an affluent suburb of Harare. The operation resulted in the recovery of approximately 10 grammes of suspected gold nuggets.

Police indicated that investigations are ongoing to determine whether the suspect possessed the necessary permit for holding the recovered gold.

The Zimbabwe Republic Police urged members of the public, particularly investors, to exercise caution when entering into mining transactions.

“Investors are encouraged to conduct thorough due diligence and verify ownership of mining claims with the relevant authorities before committing funds,” the police said in the statement.

Diversified mining group RioZim Limited has lost its mining special grant for the Sengwa coalfields after the Government cancelled the licence under its “use-it-or-lose-it” policy, marking the latest setback for the struggling miner, Mining Zimbabwe can report.

By Ryan Chigoche

The development comes as the company continues to grapple with financial pressures and legal challenges that have weighed on its operations in recent months, effectively stripping it of control over one of Zimbabwe’s largest undeveloped coal resources.

The decision follows an unsuccessful appeal by the Zimbabwe Stock Exchange-listed company against the revocation of its coal mining rights for the Sengwa Colliery, a project that has remained undeveloped for decades.

In a letter addressed to RioZim director Wilson Gwatiringa, the Permanent Secretary in the Ministry of Mines and Mining Development, Pfungwa Kunaka, confirmed that the appeal against the cancellation had been dismissed.

“Following the cancellation of your coal mining Special Grant Number 849 (Sengwa Colliery) and your subsequent appeal against the proposed cancellation, please be advised that the appeal was unsuccessful,” Kunaka wrote.

“By notice of this letter, Special Grant Number 849 is hereby cancelled with immediate effect in terms of the provisions of the Mines and Minerals Act [Chapter 21:05].”

The Sengwa coalfields, located in Midlands Province, Zimbabwe, are estimated to hold around 1.3 billion tonnes of coal, making them one of the country’s largest undeveloped coal resources.

RioZim had planned to develop the deposit alongside a large-scale 2,800-megawatt coal-fired thermal power station, a project valued at about US$3 billion and intended to help address the country’s electricity shortages.

However, the project failed to reach financial closure despite several attempts over the years to attract investment.

The Sengwa concession was historically held under a joint venture between RioZim Limited and global mining group Rio Tinto, with both companies sharing the asset equally. Since the early 1990s, RioZim has been searching for investors to finance the power project, but without success.

In an effort to revive the development, the company later proposed restructuring the project into four phases of 700 megawatts each, a model aimed at reducing upfront capital requirements. However, limited funding and the absence of a bankable power purchase agreement prevented the project from progressing.

The Government’s decision to cancel the licence suggests the authorities may now seek to allocate the Sengwa coal resource to new investors capable of developing the asset.

The move is consistent with Zimbabwe’s “use-it-or-lose-it” policy, which allows the State to reclaim mining concessions that remain undeveloped for extended periods.

Meanwhile, concerns have emerged regarding disclosure obligations, as RioZim is yet to issue a cautionary statement to investors regarding the loss of the Sengwa concession.

Under the listing rules of the Zimbabwe Stock Exchange, listed companies are required to notify the market of any material developments that could affect their asset base or share price.

The development comes at a time when RioZim is already facing mounting operational and financial pressures.

In recent months, the company has been dealing with a corporate rescue push initiated by mine workers. The legal challenge has added further uncertainty around the future of the group’s assets and restructuring plans.

The dispute recently forced the miner to halt a planned US$21 million sale of some of its mining operations after a court setback linked to the ongoing corporate rescue proceedings.

With the loss of the Sengwa coal concession and the ongoing legal battles, RioZim’s path to recovery is likely to remain closely watched by investors and the mining sector.

Gold deliveries to Fidelity Gold Refinery (FGR) staged a strong recovery in February 2026, rising 12.1% month-on-month to 3,412.9502 kg from 3,044.9708 kg in January 2026, while posting an impressive 31.5% year-on-year increase compared to 2,596.1084 kg delivered in February 2025, according to the latest statistics released by the country’s sole operating gold buyer and exporter, Mining Zimbabwe can report.

By Rudairo Mapuranga

The February rebound follows January’s seasonal slowdown and confirms what industry analysts have long understood: first-quarter production always recovers as weather conditions improve and operations normalise after the holiday period.

Total gold deliveries for February 2026 stood at 3,412.9502 kg, representing:

Month-on-Month: A 12.1% increase from 3,044.9708 kg in January 2026
Year-on-Year: A substantial 31.5% increase from 2,596.1084 kg in February 2025

Artisanal and Small-Scale Miners (ASM), the backbone of Zimbabwe’s gold sector, delivered 2,525.6529 kg in February 2026, demonstrating remarkable resilience as the rains begin to subside.

Month-on-Month: A strong 12.9% increase from 2,236.5628 kg in January 2026
Year-on-Year: An exceptional 54.0% surge from 1,640.3149 kg delivered in February 2025

The February performance confirms the seasonal pattern highlighted in Mining Zimbabwe’s previous analysis. January’s modest 1.3% year-on-year decline, recorded during peak rainfall, has given way to explosive growth as water levels recede and previously flooded workings become accessible. The 54% year-on-year increase demonstrates that the ASM sector’s productive capacity, built through 2025’s record-breaking performance, remains fully intact.

Large-Scale Producers (LSM) delivered 887.2973 kg in February 2026, showing a modest recovery after January’s holiday-related slowdown.

Month-on-Month: A 9.8% increase from 808.4080 kg in January 2026
Year-on-Year: A 7.2% decline from 955.7935 kg delivered in February 2025

The large-scale sector continues to face structural headwinds. While the month-on-month improvement signals a return to normal operations following December’s holiday shutdowns and January’s ramp-up period, the persistent year-on-year decline reflects ongoing challenges, including power shortages, equipment breakdowns, and capital expenditure constraints that have kept LSM output below its historical potential.

The February 2026 figures validate the analytical framework presented in Mining Zimbabwe’s “Don’t Panic, It’s a January Trend” feature. Following January’s 38.4% month-on-month decline from December 2025’s record performance, the sector has rebounded exactly as historical patterns predict.

January 2026 Recap:

Total deliveries: 3,044.9708 kg (down 38.4% from December 2025, down 3.9% year-on-year)
ASM deliveries: 2,236.5628 kg (down 42.4% month-on-month, down 1.3% year-on-year)
LSM deliveries: 808.4080 kg (down 23.7% month-on-month, down 10.5% year-on-year)

The February recovery demonstrates that January’s slowdown was precisely what analysts described: a natural production reset following December’s exceptional output, amplified by heavier-than-usual rainfall that constrained ASM operations.

The sector’s underlying strength is evident in the year-on-year comparisons. Despite starting the year with a marginal decline, February’s 31.5% overall increase and ASM’s 54% surge confirm that the production gains achieved throughout 2025 have been sustained into 2026.

New Framework Takes Effect Post-February

It is important to note that Fidelity Gold Refinery’s recently announced 90:10 forex payment structure for small-scale miners, implemented following a Reserve Bank of Zimbabwe directive, came into effect after the February delivery period. The February figures, therefore, reflect deliveries made under the previous 100% foreign currency retention framework.

The policy shift, announced in late February 2026, requires small-scale miners to surrender 10% of their export earnings to the central bank in local currency (ZiG), while retaining 90% in foreign currency. This marks a change from the previous arrangement where small-scale miners were exempt from surrender requirements and retained 100% of their proceeds in USD.

RBZ Governor John Mushayavanhu explained that the new framework aims to ensure fairness across the gold sector and eliminate regulatory arbitrage, noting that authorities had observed a “worrying trend” where large-scale producers were channelling gold through small-scale miners to access the 100% USD payment and ASM-specific tax rebates.

Industry stakeholders will watch closely to assess the policy’s impact on March deliveries and beyond, particularly given previous warnings from the Gold Miners Association of Zimbabwe that reducing forex retention could “promote the illicit flow of gold out of the country as miners look for more lucrative markets.”

However, several factors may cushion the transition. Global gold prices remain near historic highs, with bullion up approximately 95% year-on-year. For small-scale miners, 90% of a record-high gold price still exceeds 100% of the lower prices prevailing when the original incentive was designed. The 10% requirement is also deliberately modest, far below the 30% applied to large-scale producers.

Pricing Transparency Supports Producer Confidence

Fidelity Gold Refinery’s recent shift to live market spot prices for all gold purchases and settlements—implemented in early 2026—continues to support producer confidence through greater pricing transparency and responsiveness to global market openings.

By transitioning its primary pricing reference to live spot prices, the refinery ensures its partners benefit from real-time market movements. This modernised approach is crucial given that the gold spot price changes every 15 seconds, influenced by supply and demand, geopolitical tensions, currency movements, and high-frequency trading activity.

For miners, the change simplifies valuation. The price they receive is now directly pegged to a verifiable international standard, updated continuously during market hours. This transparency builds trust and incentivises formal deliveries, particularly important as the sector navigates the transition to the new forex retention framework.

Momentum Building Toward 50 Tonnes

The February rebound strengthens confidence in Zimbabwe’s ability to achieve the projected 50-tonne national target for 2026. With ASM delivering 2,525 kg in February—a 54% year-on-year increase—and the sector now entering the post-rainfall production surge, momentum is building toward the record-breaking performance required.

Key indicators to watch:

March–April acceleration: Historical patterns show ASM production surges once rains fully subside. March 2025 saw ASM deliver a record 1.86 tonnes in a single month; 2026 could see even higher figures given the sector’s expanded capacity.

LSM recovery trajectory: While large-scale producers continue to lag year-on-year, the 9.8% month-on-month increase signals a return to normal operations. Sustained improvement will require resolution of structural challenges, including power supply and equipment constraints.

Policy implementation: The 90:10 framework’s impact on March deliveries will provide the first indication of how small-scale miners respond to the revised incentive structure. Efficient disbursement of the local currency portion and maintenance of reasonable ZiG value will be critical.

February 2026 confirms what experienced industry observers understand: Zimbabwe’s gold sector operates on a predictable seasonal rhythm. January brings consolidation—against rain, against holiday shutdowns, against the slow restart of operations. February begins the recovery. March and April deliver acceleration.

The 31.5% year-on-year increase in February deliveries, driven by ASM’s extraordinary 54% surge, demonstrates that the sector’s productive capacity—built through 2025’s record-breaking campaign—remains fully intact. The fundamentals that propelled Zimbabwe beyond 40 tonnes—competitive pricing, improved transparency, and a resilient ASM sector—continue to support growth.

January was never the story. February is the first page of the real narrative. And that narrative points firmly toward 50 tonnes.