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What a 0.0012% Shareholder Can Do: RioZim and the Limits of Corporate Control

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What a 0.0012% Shareholder Can Do: RioZim and the Limits of Corporate Control

A fresh application to place RioZim Limited under corporate rescue has once again drawn attention to the company’s financial position, this time from a shareholder holding just 0.0012% of its issued share capital, Mining Zimbabwe can report.

By Ryan Chigoche

The filing comes less than a year after a similar attempt by the Zimbabwe Diamond and Allied Minerals Workers Union (ZDAMWU), which was dismissed by both the High Court and the Supreme Court. That earlier case placed RioZim’s financial position under judicial scrutiny, and while the company successfully defended it, the emergence of a second application has renewed focus on what corporate rescue law actually allows and what it tests.

What has drawn particular attention is not only the repeated application, but also the applicant’s profile. A shareholder holding such a marginal stake would ordinarily have no practical influence over corporate decision-making. RioZim has emphasised this point, describing the allegations as “bare and unsubstantiated.”

But legally, that framing misses the central issue.

What the law actually prioritises

Zimbabwe’s corporate rescue regime is governed by Part XXIII of the Insolvency Act [Chapter 6:07]. Its focus is not ownership size or corporate influence, but financial condition and viability.

At the heart of the framework is the statutory test for financial distress. Section 122 states that:

“A company is financially distressed if it appears to be reasonably unlikely that the company will be able to pay all of its debts as they become due and payable within the immediately ensuing six months.”

This makes corporate rescue a forward-looking assessment, not a reaction to current default alone.

Equally important is who is allowed to approach the court. Section 124 provides that an application may be made by:

“an affected person,” a category that includes shareholders, creditors, employees and trade unions, with no minimum shareholding requirement attached.

In effect, Zimbabwean law deliberately separates the right to file from the ability to control, placing emphasis instead on whether the allegation of distress has substance.

Where the court’s attention shifts

A corporate rescue legal expert who spoke to Mining Zimbabwe on condition of anonymity said the size of the shareholding is legally irrelevant once an application is before the court.

“The focus of the court is therefore not whether the applicant owns 0.0012% or 20%, but whether the underlying allegations have substance.”

According to the expert, the court will instead interrogate core indicators of financial distress, including whether the company can meet its obligations as they fall due, the extent of its debt exposure, creditor positions and the operational performance of its mining assets.

The assessment also extends to whether there is a realistic prospect of recovery through restructuring, recapitalisation, asset sales or strategic partnerships, and whether such intervention would produce a better outcome than continued deterioration or liquidation.

More than a shareholder dispute

Viewed in this context, the application begins to resemble less of a shareholder grievance and more of a broader test of financial and operational stability.

“From what is currently being alleged publicly, the application appears to go beyond a simple minority shareholder dispute,” the expert said.

That perspective becomes more significant when governance concerns are considered.

“If credible offers for joint ventures, recapitalisation, asset purchases or strategic investment were received by management or the controlling shareholder and were not properly disclosed to the board or the market, then serious governance questions arise,” the expert added.

Such issues, if substantiated, could shift the focus of the case beyond liquidity constraints to how the company is being managed and whether value is being preserved for all shareholders.

A source close to developments at the company echoed similar concerns, pointing to deeper structural issues around control and decision-making.

“They run the company as if it is their own private entity,” the source said. “The only way that company can be saved is through corporate rescue.”

The source further suggested that the concentration of control has enabled governance practices that may not align with expectations for a listed public company.

While these claims remain unverified, they highlight growing scrutiny around transparency, disclosure and decision making at RioZim.

Implications for a capital-intensive sector

RioZim Limited operates across gold, nickel and diamond assets in Zimbabwe, a sector characterised by high capital requirements, operational risk and sensitivity to liquidity constraints.

In such environments, corporate rescue provisions serve as an early intervention mechanism designed to preserve viable businesses rather than push them into liquidation.

The RioZim case illustrates a defining feature of Zimbabwe’s insolvency framework: access to court is deliberately broad, but success depends entirely on evidence.

What ultimately matters

Despite the focus on the 0.0012% shareholding, Zimbabwean law is clear that ownership size is not a deciding factor in corporate rescue proceedings.

What the court will ultimately determine is whether the applicant can demonstrate two key elements:

That the company is financially distressed as defined under the law and that there is a reasonable prospect of rescuing the business

If both thresholds are met, corporate rescue may be granted. If not, the application will be dismissed.

Either way, the case reinforces a central principle of Zimbabwe’s insolvency regime: even the smallest shareholder can initiate a high-stakes legal process, but only credible evidence can sustain it.

Gold buying prices in Zimbabwe per gram/ ounce, 12 May 2026

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Gold buying prices in Zimbabwe per gram/ ounce, 12 May 2026

Gold buying prices in Zimbabwe per gram/ ounce, 12 May 2026, from the official gold buyer and exporter Fidelity Gold Refinery (FGR).

1 oz = 31.1035 g

CategoryPrice ($/g)Price ($/oz)
SG 90% and above141.624,404.88
SG 85% but less than 90%140.124,358.22
SG 80% but less than 85%138.624,311.57
SG 75% but less than 80%137.124,264.91
Sample (5–10g)134.874,194.93
Fire Assay CASH142.374,428.21

 

Note: The Fire Assay cash price applies to gold above 100g, with no sample deduction.

A sample of not more than 10g is deducted for the Fire Assay Transfer price.

#GoldPrices #GoldBuying #GoldMarket #GoldTrading #GoldRate #GoldPriceToday #GoldNews #PreciousMetals #GoldIndustry #GoldEconomy #FidelityGoldRefinery

Mutapa Gold injects $12m exploration war chest, targets 10-year life of mine across all operations

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Mutapa Gold injects $12m exploration war chest, targets 10-year life of mine across all operations

Mutapa Gold Resources has allocated a capital budget exceeding US$12 million for exploration in 2026 alone, as part of an aggressive drive to extend the life of mine (LoM) for each of its operating assets to a minimum of 10 years, the Deputy Chief Investment Officer of the Mutapa Investment Fund has revealed.

By Rudairo Mapuranga

Speaking during a visit by the Parliamentary Public Accounts Committee to the Freda Rebecca Gold Mine on Monday, Ernest Denhere outlined a sweeping geological expansion programme aimed at unlocking new resources, de-risking future production, and converting Zimbabwe’s vast mineral endowment into bankable reserves.

“We are expanding geological programmes to unlock new resources, extend the life of our assets, and de-risk future production,” Denhere said. “For 2026, a capital budget in excess of $12 million has been allocated for exploration across Mutapa Gold Resources’ entities, aiming to achieve a life of mine of 10 years for each operation.”

Denhere provided a candid assessment of Mutapa Gold’s current reserve positions, revealing significant variance across its flagship mines:

Operation | Current Life of Mine | Target / Notes
Freda Rebecca | 4 years | Immediate exploration priority
Jena Mines | 6 years | Expansion to 100 kgs/month planned
Shamva Mine | 15 years | Conditional on scaling production to Freda’s level

The figures underscore the urgency of the exploration drive. Freda Rebecca, one of Zimbabwe’s most storied gold producers, has only four years of remaining reserves at current extraction rates, making the US$12 million exploration push critical to its survival.

Mutapa Gold Resources currently produces an average of 300 kilograms of gold per month across its portfolio. Denhere confirmed that the company is targeting a 90% increase to 570 kgs per month through a combination of exploration, operational optimisation, and capital investment.

Key production targets include:

  • Shamva Mine: Current production of 65 kgs per month will rise to 200 kgs per month, more than tripling output, provided it scales up to Freda Rebecca’s operational level.
  • Jena Mines: Will increase to 100 kgs per month, up from its current baseline.
  • Freda Rebecca: Expected to benefit directly from the exploration programme to extend its LoM beyond four years, stabilising production.

The $250 million life-of-mine expansion plan

Denhere disclosed that Mutapa Gold Resources requires an estimated US$250 million for full life-of-mine expansion across all assets. To kickstart this funding, the company is currently working on a local debt syndication of US$75 million.

“In line with NDS2’s emphasis on resource mobilisation and capital investment-led growth, data-driven exploration and strategic partnerships will convert Zimbabwe’s mineral endowment into bankable reserves, crowding in capital, stimulating regional development, and supporting long-term economic stability,” he said.

The US$12 million exploration budget represents a significant shift from reactive mining to proactive geological investment. By targeting a 10-year LoM for each operation, Mutapa Gold is seeking to:

  • De-risk future production through systematic resource definition
  • Attract additional capital by demonstrating reserve longevity
  • Align with the National Development Strategy 2 (NDS2) agenda of capital investment-led growth
  • Convert mineral endowment from speculative resources to bankable reserves

The presence of the Parliamentary Public Accounts Committee at Freda Rebecca signals heightened legislative interest in the performance of state-owned and sovereign wealth-backed entities. Denhere’s detailed disclosure of capital budgets, reserve lives, and production targets provides the committee with clear benchmarks against which Mutapa Gold’s performance can be measured.

Caledonia Share Price in Focus as EBITDA Jumps 50% on Gold Price Surge

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Caledonia Share Price in Focus as EBITDA Jumps 50% on Gold Price Surge

Caledonia Mining Corporation Plc is likely to draw renewed investor attention after posting a sharp 50.2% increase in EBITDA to US$33.87 million for the first quarter of 2026, a performance that strengthens the group’s earnings profile despite softer production, Mining Zimbabwe can report.

By Ryan Chigoche

With gold equities increasingly trading as a proxy for bullion prices, the company’s share price outlook is now closely tied to its ability to convert elevated gold prices into sustained earnings and cash flow growth.

A key metric underpinning this narrative is EBITDA, earnings before interest, tax, depreciation, and amortisation, which strips out financing and accounting effects to show the underlying strength of operations.

In capital-intensive sectors such as mining, EBITDA is closely watched by investors as it provides a clearer picture of operational efficiency, margin resilience, and the capacity to generate cash to support dividends and expansion.

Caledonia’s latest numbers highlight this dynamic. While gold production from its flagship Blanket Mine fell 20.9% to 14,767 ounces, the impact on earnings was more than offset by a 66.3% surge in the average realised gold price to US$4,816 per ounce.

This translated into an 18.3% rise in revenue to US$66.43 million and a 69.4% jump in profit after tax to US$18.91 million, while free cash flow more than doubled to US$12.28 million, key indicators that the business is still generating strong returns even under operational pressure.

The production decline was linked to constrained access to higher-grade ore, with head grade dropping from 3.1 g/t to 2.5 g/t. This weighed on recoveries and drove costs higher, with on-mine costs rising to US$1,740 per ounce and all-in sustaining costs averaging US$2,765 per ounce.

Even so, the broader investment case remains intact. Management pointed to improving grades through the quarter and into April, suggesting that output and cost performance could strengthen in the second half of the year. Full-year production guidance of 72,000 to 76,500 ounces has been maintained, with output expected to be weighted towards H2.

For shareholders, the combination of stronger earnings and cash generation is already feeding into returns. Earnings per share rose 77.8% to US$0.80, while the company declared a quarterly dividend of US$0.14 per share, reinforcing confidence in the sustainability of payouts.

Beyond near-term performance, investors are also tracking progress on the Bilboes gold project, where financing discussions continue following a US$150 million convertible notes raise earlier this year. The project represents a potential step change in production capacity and could become a key driver of future valuation.

In the near term, Caledonia’s share price trajectory will likely hinge on two key variables: continued strength in gold prices and evidence that operational recovery at Blanket is translating into higher output and lower costs. For now, the sharp uplift in EBITDA and cash flow provides a solid foundation for market support.

Caledonia Invests US$3.8M in Motapa as Bilboes Project Gains Momentum

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Caledonia Invests US$3.8M in Motapa as Bilboes Project Gains Momentum

Exploration at the strategically positioned asset adjacent to Bilboes progresses toward a maiden resource estimate, as Zimbabwe’s largest gold mine takes shape

Gold-focused miner Caledonia Mining Corporation Plc has allocated US$3.8 million to accelerate exploration at its Motapa gold project this year, as part of a broader US$162.5 million capital expenditure programme that also supports the development of the Bilboes project, which, once operational, will become Zimbabwe’s largest gold mine, Mining Zimbabwe can report.

By Rudairo Mapuranga

The exploration investment forms part of the company’s strategy to expand its resource base and unlock synergies between Motapa and Bilboes, which are located directly adjacent to one another in southern Zimbabwe. Initial exploration results from Motapa, acquired in November 2022, have already demonstrated widespread gold mineralisation over a combined strike length of more than nine kilometres, with significant high-grade intersections including 12 metres at 6.36 grams per tonne and 13 metres at 5.17 grams per tonne.

Caledonia plans to integrate exploration results into an updated mineral resource and mineral reserve statement during 2026. A maiden mineral resource estimate for the sulphide mineralisation at Motapa North remains on track for completion this year, while ongoing exploration is also evaluating near-surface oxide potential at Mpudzi and further drilling of the Motapa South sulphide mineralisation below historical open pits.

Beyond Motapa, Caledonia’s flagship Bilboes project is advancing rapidly through a four-part funding strategy designed to manage risk while preserving shareholder value. The company commissioned a Preliminary Economic Assessment in June 2024 that indicated an approximate annual production of 168,000 ounces once operational, significantly boosting the group’s gold output.

In January 2026, Caledonia successfully raised US$150 million through a seven-year convertible senior notes offering, marking the largest international capital raise for Zimbabwe in over a decade. Investor demand from US institutional investors exceeded US$600 million, more than four times the initial offering size, underscoring growing confidence in Zimbabwe’s mining investment landscape.

Mark Learmonth, Chief Executive Officer of Caledonia, commented on the fundraising success: “Receiving more than US$600 million of demand from high-quality North American investors is a tremendous endorsement of our strategy, the quality of our assets, our operational track record and the long-term prospects of the company.”

Construction at Bilboes is expected to begin following the development of production shafts, with the first gold targeted for early 2029. The project has a forecast annual output of 200,000 ounces over an initial 10-year period and an estimated total capital cost of US$584 million. Importantly, Caledonia owns 100 percent of Bilboes, unlike its 64 percent stake in the producing Blanket Mine, allowing a greater share of future cash flows to accrue directly to shareholders.

The proximity of Motapa to Bilboes presents significant operational synergies that could fundamentally reshape Caledonia’s production footprint in Zimbabwe. Early exploration results have already indicated new mineralised zones near the proposed Bilboes processing plant site, raising the possibility that Motapa ore could feed directly into Bilboes’ planned processing facilities, reducing standalone capital expenditure and extending mine life beyond initial projections.

Furthermore, the relocation of the Bilboes tailings storage facility to the Motapa property is under review, a move that could leverage favourable topography to cut initial construction costs. These optimisation opportunities demonstrate how Motapa is not merely an adjunct exploration licence but a calculated strategic asset in Caledonia’s growth portfolio.

When combined with Blanket’s existing output of approximately 76,213 ounces, the development of Bilboes and eventual contributions from Motapa could propel Caledonia’s total annual gold production beyond 240,000 ounces, positioning the company as a heavyweight among African gold producers.

To support the development timetable, Caledonia has appointed Stanbic Bank Zimbabwe and CBZ Bank Limited as co-lead arrangers for an interim funding facility of up to US$150 million, which is expected to be in place by mid 2026. The company is also engaging regional and global financial institutions for broader project finance, with a formal process expected to commence in the coming months.

“Our FY 2026 budget reflects our commitment to sustained investment in both our core operations and future growth,” Learmonth said earlier this year. “The planned capital expenditure will support ongoing production at Blanket and advance the development of the Bilboes project and exploration at Motapa, where we see long-term, value-enhancing synergies with Bilboes.”

Caledonia’s substantial investment in Motapa and Bilboes arrives at a pivotal moment for Zimbabwe’s gold mining sector, which faces both significant opportunities and emerging policy headwinds. The country’s gold production hit an all-time high of 47 metric tonnes in 2025, having more than doubled over the past decade from the crisis-era lows of 3 metric tonnes in 2008.

Artisanal and small-scale miners now account for approximately 60 percent of total national gold deliveries, providing a foundation upon which formal sector consolidation could be built. However, the sector is navigating a complex regulatory environment. Zimbabwe recently adopted a new gold royalty framework that includes a tiered royalty structure of 3 percent for gold prices at or below US$1,200 per ounce, increasing to 5 percent for prices between US$1,201 and US$2,499 per ounce, and 10 percent for prices at or above US$2,500 per ounce.

Despite these adjustments, Zimbabwe continues to offer mining investors a range of attractive incentives, including full deductibility of capital expenditure, indefinite carry forward of mining losses, accelerated capital allowances, preferential corporate tax rates for strategic projects, VAT deferment on imported mining equipment, customs duty exemptions, and equal treatment for resident and non-resident investors. The government reversed proposed increases to gold royalty rates and preserved capital expenditure tax treatment after industry consultation, moves welcomed as evidence of a more consultative investment environment.

Recent policy signals indicate that Zimbabwe is positioning itself as a stable and predictable mining destination in a continent where resource nationalism is gaining ground elsewhere. With its US dollar-denominated gold trade providing insulation from domestic currency volatility, and with formal sector players like Caledonia demonstrating that international capital can access Zimbabwe for the right projects, the conditions appear to be aligning for a new phase of large-scale gold investment.

The Bilboes project alone is expected to create substantial local employment, generate significant foreign exchange earnings, and demonstrate that world-class mining projects can be successfully financed, developed, and operated in Zimbabwe to international standards, a narrative with the potential to transform perceptions of the country’s mining investment landscape.

With Motapa exploration progressing toward a maiden resource estimate, Bilboes financing advancing through its structured four-part plan, and Blanket Mine continuing to generate reliable cash flow, Caledonia is executing a clear and disciplined strategy to become a multi-asset gold producer of scale in Zimbabwe. The company’s ability to attract oversubscribed international capital, secure local banking partnerships, and advance exploration simultaneously demonstrates that Zimbabwe remains open for responsible, long-term mining investment when projects are properly structured and managed.

Gold buying prices in Zimbabwe per gram/ ounce, 11 May 2026

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Gold buying prices in Zimbabwe per gram/ ounce, 11 May 2026

Gold buying prices in Zimbabwe per gram/ ounce, 11 May 2026, from the official gold buyer and exporter Fidelity Gold Refinery (FGR).

1 oz = 31.1035 g

CategoryPrice ($/g)Price ($/oz)
SG 90% and above139.794,347.65
SG 85% but less than 90%138.314,301.61
SG 80% but less than 85%136.844,255.89
SG 75% but less than 80%135.364,209.85
Sample (5–10g)133.144,140.78
Fire Assay CASH140.534,370.67

 

Note: The Fire Assay cash price applies to gold above 100g, with no sample deduction.

A sample of not more than 10g is deducted for the Fire Assay Transfer price.

#GoldPrices #GoldBuying #GoldMarket #GoldTrading #GoldRate #GoldPriceToday #GoldNews #PreciousMetals #GoldIndustry #GoldEconomy #FidelityGoldRefinery

Zimbabwe Police Net 17 in Mining Explosives Crackdown

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Zimbabwe Police Net 17 in Mining Explosives Crackdown

The Zimbabwe Republic Police said coordinated efforts have identified 17 individuals and entities convicted for the illegal abuse and trading of explosives in the mining sector, with authorities vowing to widen the dragnet, Mining Zimbabwe can report.

By Rudairo Mapuranga

Since the launch of the operation, 17 people and companies have been arrested and successfully prosecuted, according to a statement from Commissioner P. Nyathi, Chief Staff Officer for Press and Public Relations. The convicted include small-scale mine operators, private investment firms, and individual offenders.

Among those named are Walter Maranda (Heritage Mine), Patience Ncube (Imbesu Mine), Forbes Tarwirei (Murray Minerals Resources Mine), Dalabuhle Sibanda (Happy Valley Mine Private Limited), and Everservice Investment Private Limited. Others include Rangariraayi Clive Mavhiya (Trustone Mine), Alawa Ncube (Jane A Oregla Gold Mine), Energy Makoni and Tafadzwa Gurutsa (both from By Chance 73 Mine), Precious Paradza (Runxin Mine), Tadius Tavaziva, Luis Fashtiny, Shepherd Gondo, Tapiwanashe Zhou, Caison Takawira, and Regedzai Foroma.

The total value involved in the illicit explosives trade was cited at $7.0 million, though the police statement did not specify whether the figure refers to the market value of diverted explosives, estimated damage, or uncollected revenue.

The Zimbabwe Republic Police said it acted “without fear or favour” and that some officers found on the wrong side of the law have also faced stern sanctions. No further details on internal disciplinary actions were provided.

Authorities have urged Zimbabweans to report any abuse of explosives or illegal trading through the National Complaints Desk at 0242 703631 or via WhatsApp at 0712800197.

“Serious and coordinated efforts are underway to account for individuals, syndicates, and institutions who are abusing explosives,” the police statement read, reiterating that the country’s laws are being strictly applied.

The crackdown signals heightened regulatory risk for mining operators, particularly in the small-scale and artisanal sector, where unlicensed explosives have long been linked to safety hazards and leakages into informal gold supply chains.

Three Killed in Temstan Mine Collapse Amid Rising Artisanal Mining Accidents

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Three Killed in Temstan Mine Collapse Amid Rising Artisanal Mining Accidents

The Zimbabwe Republic Police has confirmed a fatal accident at Temstan Mine in Pickstone, Chegutu, where three artisanal miners lost their lives after a boulder fell on them while prospecting for gold, Mining Zimbabwe can report.

The incident occurred on May 6, 2026, in a vertical shaft estimated to be about 100 metres deep, highlighting the extreme conditions under which many informal miners operate. According to police reports, the miners were underground when the boulder suddenly dislodged, trapping them at the bottom of the shaft.

Following the accident, authorities conducted retrieval operations, and the bodies of the victims were recovered and taken to Chegutu District Hospital mortuary for post-mortem examinations. The ZRP said the names of the deceased are yet to be released, pending notification of their next of kin, while investigations into the circumstances surrounding the incident are ongoing.

The Temstan Mine tragedy adds to a growing list of fatal incidents in the Mashonaland West gold belt, where artisanal mining activity has intensified in recent months. Just days earlier, at least two miners were confirmed dead following a shaft collapse at Elvington Mine in Chegutu after a rockfall trapped several workers underground.

In a separate but related incident within the same mining area, rescue teams retrieved multiple bodies after a collapse at G-Zone Mining and Milling Company, where a group of artisanal miners had been working in underground shafts, further underscoring the frequency of such accidents.

Taken together, these incidents point to a broader pattern of safety challenges within the artisanal and small scale mining sector, where operations are often conducted in hazardous conditions. Deep, unsupported shafts and unstable ground remain common, with limited use of reinforcement systems or geological assessments, increasing the likelihood of sudden rockfalls and collapses.

Despite the risks, artisanal mining continues to expand across gold rich districts such as Chegutu, largely driven by sustained gold prices and constrained formal employment opportunities. As a result, more miners are venturing into disused or informally reopened workings, where safety conditions are typically poor.

While the sector remains a critical contributor to Zimbabwe’s gold output, its growth has been accompanied by a disproportionate rise in fatal accidents, placing renewed focus on the gap between production gains and safety standards.

This has intensified calls for stricter enforcement of mining regulations, improved formalisation of artisanal operations, and wider access to training and technical support, as stakeholders seek to reduce recurring loss of life in Zimbabwe’s mining sector.

Massive Police Crackdown Nets 79 in Mazowe Mining Areas

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Massive Police Crackdown Nets 79 in Mazowe Mining Areas

A major security operation by the Zimbabwe Republic Police (ZRP) has resulted in the arrest of 79 suspects in Mazowe’s mining area, in a sweeping crackdown targeting serious criminal activities and environmental destruction.

The operation, which focused on illegal mining hotspots including Storeys, Jumbo Mine, and surrounding areas, was aimed at curbing crimes such as murder, robbery, rape, and stock theft, while also addressing escalating environmental damage linked to uncontrolled mining activities.

In an official statement, the ZRP confirmed the scale and scope of the operation:

“The ZRP has conducted a massive operation against criminal acts such as murder, robbery, rape, stock theft, among others in Mazowe mining areas. The operation also targeted land degradation, soil erosion, destruction of railway infrastructure, road and water systems. 79 suspects were arrested, including four for causing damage to railway infrastructure.”

Police also reported significant recoveries during the raids, including 30 excavators, 10 generators, 3 submersible pumps, 7 hammer mills, 6 windlasses, and 20 water tanks. Authorities believe the equipment was being used in illegal mining operations that have severely impacted the environment and local infrastructure.

The crackdown extended to the Storeys area, where both Zimbabwean nationals and foreign nationals were arrested for engaging in alluvial mining activities. These operations reportedly disrupted water systems and damaged agricultural land, raising concerns among local communities.

In addition to mining-related offences, the ZRP dismantled several illegal establishments, including shebeens, and confiscated multiple kilograms of meat, alcohol, illicit brews, and groceries. Police say these informal setups have been contributing to rising criminal activity in the region.

The operation underscores growing efforts by law enforcement to restore order in Zimbabwe’s mining belts, where illegal activities have increasingly threatened both livelihoods and critical infrastructure.

Authorities have indicated that similar operations will continue across the country as part of a broader strategy to combat crime and promote sustainable mining practices.

WATCH:

Regional Buyers ‘Quite Excited’ by Dinson Steel as Manhize Plant Powers Zimbabwe’s 2030 Ambition

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Regional Buyers ‘Quite Excited’ by Dinson Steel as Manhize Plant Powers Zimbabwe’s 2030 Ambition
  • US$1.5 billion integrated mill shifts from import substitution to export earnings, delivering tangible results for the upper-middle-income target

MANHIZE – The first steel products rolling out of Dinson Iron and Steel Company’s (Disco) US$1.5 billion Manhize plant have drawn “quite exciting” feedback from regional buyers as the project transforms Zimbabwe’s industrial landscape and accelerates the nation’s drive toward an upper-middle-income economy by 2030, Mining Zimbabwe can report.

By Rudairo Mapuranga

Speaking at the Manhize site, CEO Benson Xu said the integrated mill is now supplying both the domestic market and neighbouring countries, with customers praising product quality and service delivery.

“The feedback which we get from the regional market they are quite exciting,” Xu told reporters. “In terms of the product and also the service delivery, I think they are quite satisfied.”

His remarks underscore how a single “tangible, impactful project” is already reshaping Zimbabwe’s trade balance. Before Disco, the country imported roughly 90% of its steel, draining up to US$1 billion annually in foreign currency. Today, steel exports have surged from 413 tonnes in 2024 to over 140,000 tonnes in the first half of 2025, transforming Zimbabwe from a net importer into a regional producer.

“We talk about 2030 vision. 2030 vision can only materialise by individual tangible, impactful projects,” Xu said. “So we hope that this is one of the projects which can bring the tangible result for us to achieve the 2030 vision.”

The Manhize complex, which began as geological surveys 15 to 16 years ago, now employs over 2,000 workers directly, a figure expected to reach 25,000 at full capacity. With Phase One producing 600,000 tonnes annually, scaling eventually to 5 million tonnes, the plant has already saved Zimbabwe an estimated US$500 million per year in avoided steel imports.

Recalling the site’s humble beginnings, Xu described a barren, wild field. “When I came here, everything was just a field, a tobacco field. Like you saw, a wild field. But we started from scratch and put everything up.”

“So now you see, the steel plant is up, and production is ongoing. And also the people, they come to pick the product from here. So that is the dream coming to reality.”

Roughly 60 per cent of Dinson’s annual production is currently exported to regional and international markets, generating valuable foreign currency for Zimbabwe’s balance of payments, Chinese Ambassador to Zimbabwe Zhou Ding confirmed during a recent parliamentary visit to the plant.

The plant’s product range has expanded beyond pig iron and steel billets to include deformed steel bars in 16mm, 20mm, and 25mm sizes, with hot wire rods and mill steel balls now also in production, critical inputs previously sourced from abroad at high cost.

Steelmaking is notoriously energy-intensive, but Dinson has moved to meet its own requirements through a 50 megawatt power plant that utilises advanced heat exchange technology, capturing waste heat and combustible gases from its blast furnace processes to generate electricity.

The company plans to expand its generation capacity to 70 megawatts, with surplus power to be fed into Zimbabwe’s national grid, strengthening energy security for the broader economy.

Beyond the immediate production targets, Phase One at 600,000 tonnes annually, ultimately scaling to 5 million tonnes per year by the fourth phase, the company has secured Special Economic Zone status, which is expected to accelerate investment and industrialisation in the surrounding area.

Plans are already underway for the development of a Smart City, designated as Manhize Town, and a science university, developments expected to transform the Midlands Province into an industrial and innovation hub.

Throughout his remarks, Xu repeatedly emphasised the critical role played by Zimbabwean authorities in enabling the project’s success against a challenging backdrop.

“For the past three to four years, we have been very thankful to the government, the country, and the leadership for giving us so much assistance, help, and motivation for us to be where we are today. As we can see, we are harvesting the trust and the support from the government,” he said.

The social footprint of the investment is substantial. Dinson has invested US$6 million in power grid infrastructure, US$8 million in a dual lane road connecting the plant to the highway, borehole projects valued at US$50,000, and the renovation of seven schools costing US$200,000, according to Ambassador Zhou.

More than 90 per cent of the plant’s employees are Zimbabweans, with the majority drawn from local communities, and Disco has prioritised the relocation of affected families into modern housing units.

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