Mining ZimbabweLatest Mining News, Policy and Industry Updates

Geo Associates has drilled just two wells across its 360,000-hectare Mzarabani licence, meaning the project’s true potential remains largely untapped, according to founder and managing director Paul Chimbodza.

By Rudairo Mapuranga

Speaking at the Chamber of Mines Annual Conference, Chimbodza said the company’s two wells – Mukuyu 1 and Mukuyu 2 – are located approximately seven kilometres apart, a tiny fraction of the exploration area.

“If you just suppose that with a licence area that is 360,000 hectares, what it says is we have barely scratched the surface,” Chimbodza said.

“The two wells, Mukuyu 1 and Mukuyu 2, seven kilometres apart, in a licence area as big as this room, we’ve just scratched the corner.”

The Mzarabani project is licensed under Geo Associates, with Invictus Energy – an Australian-listed company – holding 80 percent and One Gas Resources holding the remaining 20 percent. Chimbodza clarified the ownership structure to address what he described as “a lot of confusion in the marketplace.”

The initial licence area of 100,000 hectares has since been expanded to 360,000 hectares through collaboration with the Mutapa Investment Fund.

Chimbodza said the company has generated more than a dozen drill-ready targets across the licence area, giving Geo Associates an embarrassment of riches.

“In most exploration projects, the problem is to generate targets that you can follow up for drilling or targets that are worthy of drilling,” he said. “In our case, we are spoiled for choice on where to drill.”

He noted that Mobil had explored the area for about 10 years, leaving behind seismic data that Geo Associates has reinterpreted using modern computing power and software.

“I normally talk of, you know, if you had a scan done in 1980, and then you compare that with an MRI scan today, the resolution is so different,” Chimbodza said. “That’s all we did with the Mobil data. We subjected it to new techniques, new resolution, and we started picking up what Mobil couldn’t pick up then.”

The company subsequently conducted its own seismic survey to validate the findings.

Gas Market Now Exists Where None Did Before

Chimbodza noted that while Mobil had explored the area some 40 years ago, the project was never developed because there was no market for gas at the time.

“If you go back 40 years ago, the gas market was non-existent,” he said. “Even in our homes 40 years ago, no one was using cooking gas.”

“Fast forward to today, there is a huge market, not only in Zimbabwe but in the region.”

He said the project is well-positioned to supply gas-to-power projects, with every country in the region facing power shortages.

Chimbodza framed the resource in stark terms, measuring gas in trillion cubic feet.

“One TCF is big enough to power a 500-megawatt power station for 50 years,” he said.

With infrastructure already available in the region that can be retrofitted, the project could supply power to Zimbabwe’s energy-hungry economy and beyond.

Chimbodza explained that Geo Associates operates under a production-sharing agreement with the government, under which the company explores at its own risk.

“If you don’t find anything, tough luck, because that’s your business,” he said. “If you find something, we will allow you to recoup your costs, plus a small premium… What is left on the table, we then share with the Government of Zimbabwe.”

THERE is abundant capital sloshing around Zimbabwe’s economy waiting to find a home in the mining sector, but a disconnect between available funds and accessible investment opportunities is preventing locals from participating in the country’s mineral wealth, Deputy Minister of Finance, Economic Development and Investment Promotion David Kudakwashe Mnangagwa has said.

By Rudairo Mapuranga

Speaking at the Chamber of Mines Annual Conference in Victoria Falls, the Deputy Minister issued a direct challenge to mining industry players to look beyond traditional offshore financing and aggressively pursue local sources of capital.

“In our estimation, the monies are there, but there is a dissonance between how people can access your mines,” Mnangagwa said. “Every Zimbabwean who is holding cash wants to participate in mining in one manner or the other, but there’s a huge gap in distance. Our capital markets are the only way that we can bridge that gap.”

The Deputy Minister highlighted the recent launch of Zimbabwe’s first gold-backed Exchange Traded Fund (ETF) on the Victoria Falls Stock Exchange (VFEX) as a prime example of how local capital can be mobilised for the mining sector.

“A few weeks ago, we launched our first mutual gold ETF,” Mnangagwa said. “There’s been a call within the room that maybe access to global capital might be diminishing. There’s a lot of capital that is sloshing around within our economy that is failing to find a home and ends up in luxuries.”

The First Mutual Wealth Gold ETF began trading on the VFEX on 8 May 2026 and delivered an impressive debut, surging nearly 40 percent during its first trading session. The ETF opened at an issue price of 10 US cents before closing at 13.94 US cents, with 357,257 units exchanging hands on the opening day.

Mnangagwa said the listing sends “a strategic signal to both local and international investors that Zimbabwe’s financial markets are evolving and becoming increasingly sophisticated”.

Notably, retail investors contributed more than 60 percent of total subscriptions during the ETF’s subscription phase, significantly exceeding the VFEX’s initial public spread target of 30 percent. The minimum investment threshold was set at just US$100, making the product accessible to ordinary Zimbabweans.

“We are trying as government to deepen our financial sector through the creation of instruments that will allow investment, even from our locals,” Mnangagwa said. “We’d like to make sure that we build a homegrown and competitive industry to make sure that the synergies that are there are fully capitalised.”

Policy Openness to Industry Input

The Deputy Minister also addressed concerns raised by outgoing Chamber of Mines President John Musekiwa regarding the royalty framework, which Musekiwa had described as potentially suboptimal.

“I’m not entirely sure, but we always invite players to sit down with the Ministry of Finance and we go through your financial modelling,” Mnangagwa said. “We like financial modelling so that policy is informed by numbers and facts, not by perception.”

He extended an open invitation to the industry: “If, as an industry, there is a widespread feeling that the framework in place is not effective, our doors are always open.”

The Deputy Minister noted that over the past five years, the mining sector has recorded robust and sustained performance, with average growth estimated at around 9 percent annually. The PGM sector remains one of the most important export sectors, contributing significantly to foreign currency earnings.

He reaffirmed government’s commitment to maintaining Zimbabwe’s attractiveness as a competitive mining investment destination while ensuring the country derives fair, sustainable value from its finite mineral resources.

The mining sector continues to benefit from various tax incentives, including accelerated depreciation of capital assets, indefinite carry-forward of losses, 0 percent customs duty on imported capital equipment, and deferment of VAT for up to three years on projects with longer gestation periods.

On foreign exchange, Mnangagwa acknowledged delays in the payment of surrender portions of export proceeds, an issue raised by the outgoing Chamber president.

“I believe something has been happening in the last few weeks. If it hasn’t been happening as we’ve been briefed, then we need to continue discussing that,” he said.

Under the current framework, mining exporters retain 70 percent of their export proceeds in foreign currency, with the remaining 30 percent surrendered to formal foreign exchange markets at the prevailing official exchange rate.

The Deputy Minister emphasised that the future of Zimbabwe’s mining sector lies not only in extraction but also in downstream processing, refining and industrial development, particularly in strategic minerals such as PGMs and lithium.

“Beneficiation investments require substantial capital, advanced technologies, and long-term financing arrangements,” he said. “Government remains committed to continuously strengthening policy frameworks that support value addition and maximise domestic value retention.”

The conference, running under the theme “Unlock Value, Maximise Benefits, Sustain Growth”, brought together mining executives, investors, policymakers and industry suppliers at a time when the sector has become the country’s strongest lever for economic growth and foreign currency generation.

“As government advances the beneficiation and value addition agenda, the alignment between fiscal policy and foreign exchange policy becomes increasingly important,” Mnangagwa said.

Zimbabwe’s Mines and Mining Development Minister Dr Polite Kambamura has declared a renewed offensive against the illicit export of gold, lithium and diamonds, vowing that the government will pursue traffickers with relentless force as the country moves to plug a leak that has cost it billions in lost revenue, Mining Zimbabwe can report.

By Ryan Chigoche

Speaking at the just-concluded Chamber of Mines of Zimbabwe Annual General Meeting and Conference, Dr Kambamura said mineral leakages are bleeding the economy of critical foreign currency, state revenue and jobs.

“We remain uncompromising in combating gold leakages and smuggling. Every gram of gold lost through illicit channels represents lost foreign currency, lost revenue and lost national development opportunities,” he said. “A tonne of lithium smuggled out of the country, a carat of diamond exported illicitly — that is revenue lost and jobs exported.”

The minister’s tough stance follows persistent concerns over illicit flows in the extractive sector. The Centre for Natural Resource Governance has estimated that up to 36 tonnes of gold could be smuggled out of Zimbabwe annually, more than half of official production at the time.

Investigators have described Zimbabwe’s mineral leakages as “industrial-scale looting”, involving “a complex web of criminal syndicates, state-embedded actors and private-sector entities”, according to a 2025 report by the Global Initiative Against Transnational Organised Crime. “Non-renewable resource crimes are among Zimbabwe’s most profitable illicit markets,” the report added.

Lithium smuggling networks exploit porous borders through mislabelled shipments, forged customs documents and bribes paid to border officials. In one case, a truck driver carrying a sealed container he believed held chrome was impounded after inspectors discovered raw lithium inside — an illegal export under Zimbabwean law. Officials sometimes lack the geological expertise to identify lithium ores, creating gaps that are easily exploited by exporters.

Investigative journalists have played a pivotal role in exposing smuggling networks. In April 2025, an undercover investigation by Oxpeckers uncovered a transnational lithium smuggling ring moving ore through South Africa and Mozambique, revealing how “majors” (local fixers) and compromised border guards facilitated the illicit trade.

The investigation also highlighted a startling anomaly. South Africa, which has minimal domestic lithium production, suddenly recorded a 147,000-tonne surge in lithium ore exports to China in 2024, pointing directly to Zimbabwe as the source.

Against this backdrop, Kambamura said cracking down on smuggling is the critical first step towards safeguarding Zimbabwe’s mineral wealth and warned that the government would not compromise in its efforts to stem the outflow of unprocessed minerals.

Zimbabwe is estimated to lose up to US$15 billion annually through illicit financial flows (IFFs), with gold and precious stones identified as major drivers.

These outflows exceed the government’s entire US$12 billion mining sector target, underscoring the devastating economic impact of smuggling.

“It is looting at an industrial scale,” said Farai Maguwu, executive director of the Centre for Natural Resource Governance.

Despite government pledges and a raft of policy interventions, including a ban on raw lithium exports, smuggling networks continue to exploit weak enforcement, official complicity and porous borders.

The scale of losses has led observers to warn that, without genuine institutional reform, Zimbabwe’s mineral wealth will continue to enrich foreign markets and criminal syndicates rather than its own citizens.

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Zimbabwe’s platinum miners are staring down a liquidity abyss as unpaid export surrender balances in ZiG have ballooned to more than US$228 million, pushing an already fragile sector to its operational limits, industry leaders have warned.

By Rudairo Mapuranga

The staggering figure, confirmed at the recent PGM Producers’ Indaba at the Chamber of Mines Annual Conference in Victoria Falls, reflects the growing mismatch between foreign currency earnings and the government’s delayed settlement of the mandatory 30% surrender portion—paid in the local ZiG currency. Producers say the accumulating backlog is not just a balance-sheet headache but an existential threat that is stalling exploration, starving local suppliers, and forcing some operators to review their Zimbabwean exposure.

“The ZiG surrender delays have effectively locked up working capital equivalent to nearly four months of operating costs for some mines,” a senior executive who attended the indaba told Mining Zimbabwe on condition of anonymity. “We’re being asked to fund the state’s cash-flow gap while our own equipment ages, contractors go unpaid, and new shafts remain on ice.”

Fresh concerns have emerged around downstream service providers, while community trust funds are also feeling the pinch, as miners have slashed procurement budgets by over 15% in the first half of 2026 to preserve dollar-denominated reserves. The unpaid ZiG portion, which companies cannot easily use to import critical reagents or pay expatriate staff, has created a perverse two-speed economy within the mining houses.

Valterra’s Unki operation confirmed a US$100 million claim in February. Industry sources now suggest the combined figure has crept higher as new surrenders from Q1 2026 have been added without corresponding settlements.

The crisis comes at a cruel juncture. Global PGM prices recovered modestly from 2025 lows, boosting export earnings to US$1.9 billion last year, but producers argue they cannot leverage that uptick because the ZiG surrender mechanism acts as a drag on dollar liquidity. The central bank and Treasury have acknowledged the backlog and begun partial repayments, but miners say the pace is too slow to reverse project deferrals, notably a planned US$400 million concentrator expansion that has been shelved indefinitely.

Production data underscores the urgency: platinum output dipped to 17,882kg in 2025 from 18,911kg in 2024, while palladium fell to 14,620kg. The Chamber of Mines is forecasting a 5% rebound this year, but that projection hinges on improved cash flow, which the US$228 million ZiG albatross makes increasingly unlikely.

“We are not asking for a waiver or a handout; we are asking for the rules of the game to be honoured,” said Alexander Mhembere, Chair of the Platinum Producers Association. “Every day that this ZiG balance remains unsettled, we are effectively subsidising the fiscal deficit with our own survival. That cannot continue if Zimbabwe wants to remain a top-ten PGM producer.”

Mining executives are now calling for a radical overhaul of the surrender framework—either switching to a fully dollarised export retention model or introducing a guaranteed settlement window of no more than 30 days. Without such reforms, they warn, the US$228 million figure could exceed US$300 million by year-end, turning a crisis point into a full-scale collapse that would imperil 18,000 direct jobs and nearly 30% of formal mining employment.

For now, the sector watches and waits, but patience, like dollar liquidity, is wearing dangerously thin.

ZIMBABWE’S mining industry requires approximately US$10 billion in capital investment over the next five years to sustain operations and ramp up output, outgoing Chamber of Mines of Zimbabwe President Mr John Musekiwa has said.

By Rudairo Mapuranga

Delivering his final address at the Chamber’s 26th Annual Mining Conference and Exhibition in Victoria Falls, Mr Musekiwa painted a picture of a sector at a pivotal moment—recording robust growth and record earnings, but facing significant funding constraints that threaten to stall momentum.

The mining sector recovered strongly in 2025, recording growth of around 7 percent compared to 2.3 percent in 2024, Mr Musekiwa reported.

On the back of strong output growth in gold, coal, and lithium, the sector generated a record US$8.5 billion in export earnings in 2025, up from US$5.9 billion in 2024, driven by strong output performance and favourable prices, particularly for gold and PGMs.

The sector accounted for 81 percent of national exports in 2025, paid about 20 percent of earnings to the government through various taxes and levies, and contributed 10 percent to the country’s GDP, employing around 60,000 people in the formal mining sector.

Mr Musekiwa noted that the sector’s multiplier effect is estimated at around 3, “implying that for every dollar generated by the sector, three more dollars are created in other sectors of the economy.”

However, the outgoing president struck a cautionary note on the sector’s ability to sustain its growth trajectory.

“The funding gap to optimise operations and meet output targets remains huge. Approximately US$10 billion is required by the industry in the next five years for sustenance and ramping up output,” he said.

“A significant number of mining companies are struggling to raise offshore funding, thus relying on internally generated resources or retained earnings.”

Mr Musekiwa also highlighted several challenges weighing down the sector’s performance, including high royalties and levies, high capital costs, and uncompetitive electricity tariffs.

“While we appreciate ZESA’s commitment to prioritise mining companies for available power, the power supply situation for the mining industry remains a dominant issue. Some mining companies continue to experience power outages,” he said.

“To this end, some mining houses have been supplementing their power requirements through alternative solutions, including running expensive diesel-powered generators.”

The outgoing president raised concerns about foreign currency shortages affecting expansion projects and beneficiation facilities.

“Our mining houses, specifically those undertaking expansion projects and constructing beneficiation facilities, are reporting that the available foreign currency is inadequate to meet their requirements,” he said.

“It is our humble plea that the government allows mining companies to participate on the Willing Buyer, Willing Seller platform, specifically for legitimate forex requests to supplement their forex requirements.”

He also noted delays in the payment of the surrender portion of export proceeds, which have “adversely affected operating cash flows as well as delayed the execution of capital projects.”

Despite the challenges, the outlook for the mining sector remains bright, with the sector projected to grow by a further 10 percent in 2026 as output for all minerals is expected to expand.

Gold output is expected to increase from 50.6 tonnes in 2025 to around 55 tonnes in 2026, generating corresponding exports of around US$5 billion. PGM output is projected to increase by an average of 5 percent in 2026, with exports reaching US$2 billion. Lithium output is expected to increase to 3 million tonnes in 2026, from around 2.5 million tonnes in 2025, with exports anticipated to reach US$700 million.

“I would like to take this opportunity to thank the executive committee, management, members, and all stakeholders for their support during my tenure,” he said.

“It is without doubt that the Chamber of Mines will remain in safe hands as my able successor, Mr Fungai Makoni, steers the ship as the industry scales to new heights.”

Zimbabwe’s mining industry could generate greater economic and social benefits if supported by stronger transparency measures, improved infrastructure, enhanced data systems, and targeted policy reforms, according to findings presented by the Zimbabwe Economic Policy Analysis and Research Institute (ZEPARI), Mining Zimbabwe can report.

By Ryan Chigoche

Speaking at the Chamber of Mines of Zimbabwe Annual Mining Conference and Exhibition in Victoria Falls held last week, ZEPARI Executive Director Dr Gibson Chigumira said the country needed to move beyond traditional measures of mining performance and develop mechanisms that capture the sector’s wider contribution to national development.

Mining has strengthened its position as one of Zimbabwe’s most important economic pillars in recent years. Its contribution to gross domestic product increased to 14.5% in 2025 from 12.8% in 2021, while mineral export earnings rose to US$7.3 billion from US$3.7 billion over the same period. The sector now accounts for approximately 75% of Zimbabwe’s total export receipts.

Despite this growth, concerns remain over whether the full value generated by the industry is being effectively measured and translated into sustainable development outcomes.

According to ZEPARI, one of the major weaknesses is the lack of reliable and comprehensive data to support policymaking. While mining’s contribution is typically measured through indicators such as GDP, employment, exports, fiscal revenue, and foreign direct investment, its broader developmental impact often remains undocumented.

These benefits extend to community empowerment programmes, environmental, social and governance initiatives, infrastructure development, education and healthcare investments, capital market growth, and rural industrialisation. However, the absence of systematic data collection and documented evidence continues to limit informed policy discussions and decision-making.

Addressing these shortcomings will require stronger transparency and accountability throughout the mining value chain. Recommendations include establishing a mining contract register, improving disclosure of production, value-addition and export information, and strengthening reporting of community social investments.

The institute also identified weaknesses in data management and sector oversight. Proposed interventions include creating a centralised mining data portal, adopting standardised reporting systems, installing additional weighbridges to improve the accuracy of mineral export measurements, and enhancing technological and technical capacity within Government institutions.

Legislative reforms and stronger stakeholder engagement were also highlighted as important measures to improve sector performance. Regular public disclosures and closer collaboration between Government, mining companies, and civil society organisations were identified as critical to building trust and supporting long-term growth.

The report further recommends comprehensive monitoring and evaluation frameworks incorporating key performance indicators, periodic economic assessments, and mechanisms to track environmental and social contributions made by mining companies.

However, unlocking mining’s full potential will also require addressing persistent operational constraints. High royalty rates, expensive electricity tariffs, elevated financing costs, unreliable power supplies, foreign currency shortages, delayed payments of surrendered export proceeds, and limited access to capital continue to weigh on the industry’s competitiveness.

These challenges are limiting the ability of mining companies to reinvest, expand production, and accelerate project development. With mineral resources finite by nature, ZEPARI stressed the need for long-term strategies that ensure mineral wealth translates into lasting economic transformation, industrial development, and sustainable benefits for future generations.

Gold Producers Association of Zimbabwe (GPA) is projecting production of more than 55 tonnes and export earnings of US$5 billion. However, foreign exchange shortages, delays in export proceeds, and persistent operational constraints are curbing the sector’s ability to expand capacity and fully capitalise on a sustained bullion price rally, Mining Zimbabwe can report.

By Ryan Chigoche

Gold production rose 31% to 50.6 tonnes in 2025 from 38.5 tonnes a year earlier, while export earnings surged to US$4.6 billion from US$2.5 billion, accounting for 44% of Zimbabwe’s total exports.

The strong performance has reinforced confidence in the sector’s growth prospects, supported by firm gold prices and a growing pipeline of expansion projects and mine restarts expected to add new production capacity.

Speaking at the Chamber of Mines Annual Conference in Victoria Falls (Gold Symposium) held last week, Gold Producers Association of Zimbabwe chairperson Qhubeka Nkomo said the medium- to long-term outlook for the industry remains favourable, with production expected to surpass 55 tonnes in 2026 and export earnings projected to reach US$5 billion.

“The medium- to long-term prospects for the gold industry are on the upside, with favourable prices expected to persist alongside ongoing expansion projects across the country. The revival of closed mines, including Red Wing in Penhalonga and Mazowe Mine, is also expected to support higher output as these operations and new developments ramp up production, with gold output expected to surpass 55 tonnes in 2026,” Nkomo said.

The GPA’s projections are underpinned by a combination of mine restarts and new developments. Efforts to bring previously closed operations such as Red Wing and Mazowe Mine back into production are expected to provide near-term output gains, while projects being advanced by Kavango Resources in Filabusi and at Dokwe in Tsholotsho are set to contribute additional supply over the medium term.

Despite the favourable outlook, producers say a number of structural constraints continue to limit the industry’s ability to fully benefit from the current gold price environment.

Producers say structural bottlenecks continue to constrain the sector’s growth potential, with access to capital and foreign currency emerging as the most significant challenges.

Many gold producers are struggling to secure offshore financing for expansion projects and are increasingly relying on internally generated cash flows to fund mine development and capacity upgrades. Financing conditions have also tightened, with some lenders demanding physical gold as collateral and requiring producers to maintain escrow accounts to mitigate counterparty risk.

Foreign exchange shortages are adding to the pressure, limiting producers’ ability to meet both operational requirements and capital equipment needs.

“Most gold producers that are expanding their operations continue to report foreign exchange shortages in meeting both operational requirements and capital equipment needs, which is already delaying plant expansion projects,” Nkomo said.

Delays in the settlement of ZiG equivalents under the Reserve Bank of Zimbabwe’s export surrender framework have further strained liquidity across the sector.

“Producers have also reported that payment delays are creating liquidity and operational pressures, with many now forced to operate on discounted cash flows,” he said.

Miners say the widening gap between official and parallel foreign exchange market rates is eroding value and complicating cash flow planning.

The financial pressures come as producers contend with a high-cost operating environment characterised by elevated electricity tariffs, significant fiscal charges, and a high cost of capital.

While strong bullion prices continue to support profitability, industry leaders warn that any sustained decline in gold prices could expose viability challenges, particularly for higher-cost operations.

Even so, producers remain confident the sector can sustain its growth trajectory if policy, liquidity, and infrastructure bottlenecks are addressed.