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Mining Sector Power Demand to Surge Beyond 1,500MW as Expansion Accelerates

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Zimbabwe’s mining industry is expected to increase its electricity demand to more than 1,500 megawatts (MW) within the next 12 months as companies expand production and invest in mineral processing facilities, placing energy security at the centre of the sector’s growth ambitions, the Chamber of Mines of Zimbabwe has said.

By Ryan Chigoche

The projected increase represents a 50% rise from current mining consumption levels and comes as the sector moves beyond mineral extraction towards beneficiation and value addition, activities that require significantly more electricity.

The development raises questions over whether Zimbabwe’s power infrastructure can keep pace with an expanding mining industry that is targeting higher production and greater local processing.

Speaking at the Mining Industry Suppliers, Energy and Infrastructure Forum at Mine Entra 2026, Chamber of Mines Chief Executive Officer Isaac Kwesu said the mining sector currently consumes approximately 1,000MW of electricity, accounting for more than half of Zimbabwe’s domestic power generation.

“The industry currently consumes approximately 1,000 megawatts. That is more than half of what is produced locally as electricity. However, with the ongoing expansion activities and new beneficiation facilities, the energy demand is set to surge to more than 1,500 megawatts in the next 12 months,” Kwesu said.

Zimbabwe has expanded its installed generation capacity following the addition of Hwange Units 7 and 8, but available dependable capacity remains constrained by technical limitations, ageing infrastructure, and operational challenges.

The country’s installed generation capacity is estimated at about 2,640MW, while dependable capacity has generally ranged between 1,200MW and 1,600MW, according to the National Energy Compact.

The Ministry of Energy has also previously indicated that average electricity supply capacity was between 1,200MW and 1,400MW, against peak demand of around 1,800MW, highlighting the gap that has historically required imports, demand management, and alternative energy solutions.

The expected rise in mining demand comes as companies invest in expanding output across key minerals, including gold, platinum group metals, lithium, and chrome, while the government pushes for greater domestic processing of mineral resources.

Beneficiation projects are particularly energy-intensive, meaning the success of Zimbabwe’s value addition ambitions will depend not only on mineral availability but also on reliable and affordable electricity supply.

Energy availability has increasingly become a key consideration for mining investors, alongside geological potential, infrastructure, and policy stability. Some mining companies have responded by investing in captive power solutions, including solar projects, to reduce reliance on the national grid and improve operational security.

Kwesu said investment in supporting infrastructure would be critical to ensuring the mining sector remains competitive as it enters its next phase of expansion.

“Investment in these strategic areas will enhance productivity, improve competitiveness, and create an environment where local businesses will thrive,” he said.

Zimbabwe’s mining sector remains the country’s largest source of export earnings, with billions of dollars in expansion projects planned across the industry. However, as miners move towards processing more minerals locally, the availability of electricity is set to become one of the biggest factors determining whether the sector can translate resource wealth into sustained industrial growth.

For Zimbabwe’s mining ambitions, the next major competition may not only be for minerals, but for megawatts.

Banks Map Out Financing Plan for Zimbabwe’s US$10 Billion Mining Expansion

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Zimbabwe’s banking sector has unveiled a financing blueprint it believes can mobilise the US$10 billion needed to expand the country’s mining industry over the next five years, with syndicated corporate lending expected to provide nearly half of the capital required to develop new projects and expand existing operations, Mining Zimbabwe can report.

By Ryan Chigoche

The proposal comes as the Chamber of Mines of Zimbabwe estimates the industry will require about US$10 billion in fresh investment over the next five years to sustain production growth, develop new mines, and expand existing operations, underscoring the scale of the financing challenge facing one of the country’s largest export sectors.

Speaking on the first day of the Mine Entra 2026 Suppliers, Energy and Infrastructure Symposium, CBZ Holdings Divisional Director for Corporate Banking, Lawrence Nyazema, said banks were reshaping their approach to mining finance through a mix of corporate lending, equipment finance, trade finance, and supplier finance, with corporate loans expected to anchor the strategy.

“I go back to the US$10 billion challenge and try to answer the question: Where is the funding going to come from in the next five years? We believe that US$4 billion to US$5 billion will come from corporate lending,” he said.

Nyazema argued that Zimbabwe’s banking sector had already shown it could structure financing on a scale previously considered beyond the reach of local lenders.

He pointed to the recently concluded US$125 million syndicated facility for Mutapa Gold Resources, arranged by eight domestic banks, as evidence that financial institutions were increasingly willing to pool capital to fund large mining investments.

The transaction, involving CBZ Bank, Ecobank Zimbabwe, CABS, ZB Bank, NMB Bank, FBC Bank, First Capital Bank, and AFC Commercial Bank, is being viewed as a template for future syndicated mining finance deals.

That momentum, Nyazema said, is expected to continue.

“The same group of financial institutions is targeting the close of another US$150 million syndicated financing facility by the end of August for a new gold mining project, while similar funding structures are also being explored for a platinum development.”

Even so, he acknowledged that domestic banks alone cannot meet the industry’s financing needs.

With total banking sector deposits standing at around US$6 billion, Nyazema said partnerships with regional and international development finance institutions would remain critical to mobilising long-term capital for mining projects.

“I’ve already said total deposits are about US$6 billion. I would want to take this opportunity to thank and applaud the support that we get from our regional financial partners, the likes of Afreximbank, AFC, and Standard Bank. Our all-weather financial partners will come to the party, but we have to make sure that our projects are creditworthy and bankable,” he said.

Nyazema said the financing model extends beyond corporate lending.

Equipment finance, where mining machinery serves as loan collateral, could contribute between US$1 billion and US$2 billion, while trade finance could unlock a further US$2 billion to support the importation of equipment, consumables, and other operational inputs.

He also identified supplier finance as a key pillar of the strategy, estimating that around US$1 billion could be directed towards manufacturers, contractors, and service providers supplying the mining industry, helping them access the working capital needed to execute mining contracts.

“This is the US$1 billion that will be set aside for you to carry out your activities,” he said.

Taken together, the proposed financing streams could mobilise between US$8 billion and US$10 billion, bringing the Chamber’s investment target within reach through a combination of domestic lending, structured finance, and support from development finance institutions.

The strategy marks a broader shift in Zimbabwe’s banking sector towards syndicated lending, allowing financial institutions to share risk while financing increasingly capital-intensive mining projects. For an industry constrained by limited access to affordable long-term offshore capital, the focus is increasingly shifting from identifying the funding requirement to assembling the financial structures needed to meet it.

“I truly believe that the giant has woken up. I am of the view that the financial services sector has finally started to play its role,” Nyazema said.

Mine Costs Surge 10% as Geopolitical Wars, Forex Woes Hit Suppliers — Mutapa Gold Resources

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MINING houses in Zimbabwe are facing a more than 10 percent increase in operating costs, driven by global inflation in fuel, steel, and reagents, as geopolitical conflicts continue to disrupt supply chains, a senior procurement executive has revealed.

By Rudairo Mapuranga

Mr Ali Nyirenda, Group Procurement Executive at Mutapa Gold Resources, told delegates at the Mine Entra Suppliers and Energy Symposium in Bulawayo that the mining industry was grappling with mounting structural, financial, and regulatory pressures that were eroding profitability.

Forex Constraints Force 100% Upfront Payments

Mr Nyirenda said foreign suppliers were demanding 100 percent upfront payments due to perceived currency instability, foreign currency shortages, and delayed payments through the auction system.

“Because of imports, the global inflation in fuel, steel, reagents, and freight impacts our businesses significantly. Of late, I am talking about more than 10 percent increases in our costs because of that inflation due to geopolitical wars,” he said.

He said the perceived weakness of the Zimbabwe Gold (ZiG) currency had led to reduced credit terms and longer lead times, as suppliers insisted on full payment before shipping critical inputs.

“The perceived US dollar and ZiG opportunity, I am saying perceived because that is what our foreign suppliers perceive, the shortage of foreign currency and the delayed payments by the RBZ actually lead to foreign suppliers requesting upfront payments,” Mr Nyirenda said.

Supply Chain Disruptions Bite

The executive said geopolitical tensions, particularly conflicts in the Gulf region, had severely affected lead times and costs for critical mining inputs.

“Believe me or not, a mine cannot run without critical elements such as explosives, process reagents, grinding media, and critical equipment components,” he said.

The impact, he said, included elevated stock-outs, high inventory holding costs, and unplanned production downtimes.

Policy Complexity, Local Capacity Gaps

Mr Nyirenda acknowledged that policy complexity remained a challenge, though he welcomed Government efforts to improve the ease of doing business.

He cited frequent changes in import-limit regimes, shifting ZIMRA duty classifications, and export retention rules as issues that had caused border delays, added costs, and increased compliance burdens.

On local content, he noted that while progress had been made, few manufacturing companies could meet mining industry specifications.

“There are certain requirements that they need upfront. Things like certification. Yes, it is a mandate. We will not run away from it because, for us to access our markets, there is that requirement of certification in terms of quality,” he said.

Infrastructure Woes: Sandawana, Jena Roads

Mr Nyirenda revealed that Mutapa Gold Resources was taking direct action to address poor road access to its operations, announcing the construction of a new all-weather road to Sandawana Mine starting in August.

“Our Sandawana Mine — that road is actually a 52-kilometre road that is very difficult to use. So what we have done is we are actually constructing a new road starting on the 1st of August. That will be a tarred, all-weather road, not a substandard road,” he said.

He added that the company was also in negotiations to rehabilitate the road to Jena Mine.

“We do not want long transit times. After a long transit, people can take advantage of it if a truck breaks down along the way,” he said.

Call for Policy Stability

Mr Nyirenda called for policy stability, the allocation of funds to support local supply development, and the leveraging of consolidated volumes to reduce costs.

“We need reliable savings. We need the allocation of our funds to deliver local supply development. That is the talk of the day — leverage consolidated volumes, policy stability, and also look at other delivery corridors because of the congestion that is happening,” he said.

Mutapa Gold Resources is Zimbabwe’s largest gold producer and recently secured a US$125 million syndicated loan from local financial institutions to expand production at Shamva and Jena mines, with the potential to generate up to US$1 billion annually in mining revenue.

Mutapa Resources Goes Big on Roads to Unlock Mining Potential

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MUTAPA Gold Resources Procurement Executive, Mr Ali Nyirenda, has revealed an ambitious infrastructure development programme spanning multiple operations, as the State-owned mining conglomerate moves to address one of the sector’s most persistent bottlenecks: poor road access, Mining Zimbabwe can report.

By Rudairo Mapuranga

Speaking at the Mine Entra Suppliers and Energy Symposium in Bulawayo, Mr Nyirenda, who serves as a shared procurement resource across Mutapa Gold Resources and Mutapa Energy, disclosed that the group is actively engaged in road construction and rehabilitation projects at Sandawana, Jena, and along the critical Kwekwe-Silobela highway.

Sandawana Road: 52km All-Weather Route

Mr Nyirenda confirmed that construction of a new tarred, all-weather road to Sandawana Mine in Mberengwa will commence on 1 August. The 52-kilometre stretch has historically become impassable during the rainy season, severely hampering operations.

“Our Sandawana Mine, that road is actually a 52-kilometre road that is very difficult to use. So what we have done is we are actually constructing a new road starting on the 1st of August. That will be a tarred, all-weather road, not a substandard road,” he said.

The investment comes as Mutapa Energy recently certified a 39.9-million-tonne lithium resource at Sandawana, following an 11-month drilling programme covering 103,000 metres at a cost of US$24 million. The company has already mined about two million tonnes of ore and is constructing a three-million-tonne-per-year concentrator plant. Supporting infrastructure already includes the relocation of 104 families and the development of a school and clinic.

The road project directly responds to concerns raised by Mberengwa villagers last year, who had urged the mine to repair gravel roads being damaged by more than 40 heavy trucks carrying lithium ore daily. Local leaders had warned that ambulances could no longer respond to emergencies because the roads were “hardly usable”.

Kwekwe-Silobela Highway: Government Partnership

Mr Nyirenda also confirmed that Mutapa is in negotiations to rehabilitate the highway from Kwekwe to Silobela, a critical artery that has long been a source of frustration for motorists and businesses.

The Kwekwe-Nkayi-Lupane Road is considered strategic, as it reduces the distance from Kwekwe to Victoria Falls by approximately 100 kilometres. However, its poor condition has forced many motorists to prefer the longer Bulawayo route. The road has been in such poor condition that commuter operators were charging between US$6 and US$10 for journeys that usually cost US$4.

The Government has already commenced rehabilitation works on sections of the road, with the contractor having moved onto the site. Midlands Provincial Affairs Minister Owen Ncube recently toured a section being rehabilitated in Silobela, hailing it as a “milestone achievement”.

Senators have also raised concerns over the poor state of the road, with Senator Ritta Ndlovu noting that travelling to destinations such as Silobela had become extremely difficult, taking between seven and ten hours.

Beyond infrastructure, Mr Nyirenda called for policy stability and the allocation of funds to support local supply development.

“We need reliable savings. We need the allocation of our funds to deliver local supply development. That is the talk of the day — leverage consolidated volumes, policy stability, and also look at other delivery corridors because of the congestion that is happening,” he said.

Mr Nyirenda noted that rising global inflation in fuel, steel, reagents, and freight had driven mining costs up by more than 10 percent, with geopolitical conflicts exacerbating supply chain disruptions. He also cited foreign exchange constraints as a key challenge, with foreign suppliers demanding 100 percent upfront payments due to perceived currency instability.

Mine Entra 2026 Aims to Boost Local Content in the Mining Supply Chain, Chamber Says

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Zimbabwe’s mining industry will use Mine Entra 2026 to strengthen links between mining companies and local suppliers as it seeks to boost domestic procurement and widen the sector’s contribution to the economy, the Chamber of Mines of Zimbabwe said.

By Ryan Chigoche

The focus comes as mining companies continue to rely heavily on imported equipment and specialised services despite growing calls to increase local content participation in a sector that remains the country’s largest export earner.

Speaking ahead of the official opening of the three-day exhibition, Chamber of Mines of Zimbabwe Chief Executive Officer Dr Isaac Kwesu said Mine Entra 2026 would bring together mining companies, suppliers, energy infrastructure providers and policymakers to help build stronger value chain linkages across the industry.

“The focus is not just a mining industry that grows, but a mining industry that empowers, a mining industry that translates into local empowerment and improves the social status of our country—an inclusive, broad-based mining industry we desire,” Kwesu said.

He said this year’s exhibition would focus on strengthening connections between mining and other sectors of the economy in order to increase the industry’s multiplier effect.

“It is without doubt that this year’s edition of Mine Entra will improve the linkages between our mining industry and those other sectors in an effort to increase the mining multiplier as it enhances the social development agenda of our country,” he said.

The push reflects a long-standing challenge within Zimbabwe’s mining sector. The Chamber of Mines’ State of the Mining Industry Survey showed that mining companies spent approximately US$2.1 billion on suppliers, yet local suppliers accounted for only 15% of that expenditure, underscoring the limited participation of domestic businesses in the industry’s supply chain.

Against that backdrop, industry stakeholders are increasingly seeking ways to ensure that mining growth translates into wider opportunities for local manufacturers, engineering firms, technology providers and service companies.

The emphasis on stronger linkages comes as Zimbabwe pursues beneficiation, value addition and industrialisation policies aimed at retaining more value from its mineral resources.

While mining has attracted significant investment in recent years, industry leaders say the sector’s broader economic impact will depend on the extent to which local businesses participate in procurement, manufacturing and service provision.

For local suppliers, breaking into mining supply chains has often been hampered by limited access to capital, difficulties in meeting technical specifications and industry standards, and challenges in connecting with procurement decision-makers at major mining operations.

At the same time, mining companies continue to seek reliable suppliers capable of providing equipment, consumables, engineering services, technology solutions and other specialised inputs needed to support expanding operations.

To help address these challenges, Mine Entra 2026 will feature a Suppliers Programme designed to facilitate structured engagements between suppliers and procurement representatives from major mining houses.

The programme is also expected to draw participation from the Ministry of Industry and Commerce, reflecting growing efforts to align mining expansion with the development of Zimbabwe’s manufacturing and industrial sectors.

Kwesu said discussions during the exhibition would also cover energy infrastructure, another critical area for mining growth as producers seek reliable power supplies to support operations and future investment.

Held under the theme, “Unearth, Transform, Prosper: Anchoring Economic Transformation Through Mining Value Chains,” Mine Entra 2026 seeks to position mining as a catalyst for broader economic development by strengthening connections across the value chain.

As mining companies, suppliers, investors and policymakers gather in Bulawayo, industry leaders will be looking beyond production growth to how the sector can create wider opportunities across the economy and build a more inclusive mining ecosystem.

Vice President Chiwenga to Headline Inaugural Exploration Symposium

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Vice President Dr. Constantino Chiwenga is set to preside over the inaugural Exploration Symposium at Mine Entra 2026, marking a historic first for the event, according to Chamber of Mines CEO Isaac Kwesu.

By Rudairo Mapuranga

In his address to the media, Kwesu highlighted the significance of this new addition to the Mine Entra programme, which has been designed to develop strategies and policies to unlock exploration opportunities in Zimbabwe.

“The main objective of this symposium is to develop strategies and policies that unlock exploration and ensure that we can have our mining industry develop new assets that will translate into projects and support its growth through value addition,” Kwesu explained.

The symposium, scheduled for the morning of 30 July, will feature six individual speakers who will share their experiences and successes as exploration investors and miners. Kwesu described the initiative as unprecedented, emphasising that “we never had one of this nature.”

Vice President Chiwenga’s participation underscores the government’s commitment to expanding the mining sector’s exploration frontiers. His presence at the inaugural event aligns with his recent declarations that Zimbabwe’s mineral wealth constitutes a “national trust” to be managed for the benefit of all citizens and future generations.

The Exploration Symposium represents a strategic shift towards enhancing the country’s mineral discovery capabilities, which are essential for sustaining the growth of Zimbabwe’s multi-billion-dollar mining industry ambitions.

President Mnangagwa to Officially Open Mine Entra 2026 Conference

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His Excellency, President Emmerson D. Mnangagwa, is set to officially open the main Mine Entra 2026 Conference on 31 July 2026, marking a significant highlight of the mining industry’s premier event, Mining Zimbabwe can report.

By Rudairo Mapuranga

The announcement was made by Chamber of Mines CEO Isaac Kwesu during a media briefing ahead of the event’s opening. The main conference, scheduled for Friday, will serve as a critical policy platform, bringing together key Cabinet ministers and policymakers to provide strategic direction for the mining value chain.

“This main conference will provide an opportunity for key Cabinet ministers, as well as other policymakers, to give policy direction that enhances the value chain,” Kwesu said.

The event is expected to attract more than 500 high-level delegates, who will participate in various symposiums covering the entire mining value chain, from exploration to beneficiation. Among the Cabinet ministers expected to address the gathering are the Minister of Mines, the Minister of Industry and Commerce, and the Minister of Transport and Infrastructure Development.

President Mnangagwa’s official opening will set the tone for discussions centred on the theme, “Unearth, Transform, Prosper: Anchoring Economic Transformation Through Mining Value Chains.” The conference aims to strengthen linkages between the mining industry and other sectors, ultimately enhancing the mining multiplier effect for Zimbabwe’s economic development.

Mine Entra 2026 Draws Record Industry Participation Ahead of Official Opening

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Mine Entra 2026 has attracted record industry participation ahead of its official opening, signalling growing confidence in Zimbabwe’s mining sector as the country’s premier mining exhibition places greater emphasis on mineral beneficiation and value addition, Mining Zimbabwe can report.

By Ryan Chigoche

The 29th edition of the mining, engineering and transport showcase has recorded strong growth across key performance indicators, with exhibition space nearing full capacity, exhibitor numbers rising, and business visitor registrations almost doubling compared with last year’s edition.

Speaking at a media briefing ahead of the official opening, Zimbabwe International Trade Fair (ZITF) Company Chief Executive Officer Nick Ndebele said the strong turnout demonstrated growing confidence from local, regional and international industry players.

“This year’s edition has seen remarkable growth across all major performance metrics compared to the previous year, which really demonstrates strong confidence from local, regional as well as global industry players,” Ndebele said.

Exhibition space uptake has reached 98%, with 8,853 square metres booked against a target of 9,000 square metres, compared with 7,368 square metres recorded at last year’s exhibition.

A total of 276 direct exhibitors have registered for this year’s edition, representing a 20% increase from the 231 exhibitors recorded last year.

International participation has also expanded, with 33 exhibitors from nine countries — Botswana, China, India, Mauritius, the Philippines, South Africa, Turkey, the United States, and Zambia — compared with 20 foreign exhibitors from four countries at the previous edition.

Business visitor registrations have surged to 6,453, almost double last year’s 3,355, with executives, engineers, geologists, financiers, government representatives and other key industry stakeholders expected to attend the three-day event.

The increased participation comes as Mine Entra continues to evolve beyond a traditional mining exhibition into a platform supporting Zimbabwe’s broader mining transformation agenda, particularly the push towards beneficiation and value addition.

Held under the theme, “An Earth Transformed to Prosper: Anchoring Economic Transformation Through Mining Value Chains,” this year’s edition focuses on moving discussions beyond raw mineral extraction towards developing stronger local mining value chains.

Ndebele said the theme reflects the Government’s growing emphasis on ensuring Zimbabwe derives greater economic value from its mineral resources through increased processing and downstream industrial development.

“Mine Entra 2026 shifts the conversation beyond raw mineral extraction. We have seen that Government has been quite intentional in that thrust to emphasise issues around beneficiation as well as value addition, and this is where we derive our theme,” he said.

Zimbabwe has in recent years intensified efforts to promote mineral beneficiation, particularly in strategic minerals such as lithium and chrome, as the country seeks to retain more value from its mineral wealth, support local industries and create employment opportunities.

With mining contributing about 16% of Zimbabwe’s Gross Domestic Product and the country endowed with more than 60 commercially exploitable minerals, including gold, platinum, lithium, chrome, coal and rare earth elements, Ndebele said Mine Entra provides a platform to promote cleaner technologies, stronger local linkages and sustainable mining practices.

Beyond the exhibition floor, Mine Entra 2026 will feature an expanded Buyers’ Programme designed to connect equipment suppliers and service providers with procurement leaders from 25 major mining houses through structured business-to-business meetings.

The programme is expected to strengthen commercial partnerships, improve local supplier participation and create opportunities for mining-related businesses.

Mine Entra 2026 is being held from July 29 to 31 at the Zimbabwe International Exhibition Centre in Bulawayo in partnership with the Chamber of Mines of Zimbabwe and the Ministry of Mines and Mining Development.

President Emmerson Mnangagwa is expected to officially open the exhibition on Friday.

Premier African Minerals Secures US$715,000 Lifeline as Canmax Talks Continue

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Cash-strapped lithium developer raises fresh capital at a steep discount to sustain Zulu operations while negotiating a critical debt extension

Premier African Minerals Ltd. has raised approximately £550,000 (US$715,000) through a share subscription, issuing 4 billion new shares at 0.01375 pence each as the company scrambles to maintain operations at its Zulu lithium project while negotiations with strategic partner Canmax Technologies Co. drag on, Mining Zimbabwe can report.

By Rudairo Mapuranga

The fundraising, conducted through a direct subscription arranged by the company, represents a 7.4% discount to the stock’s most recent trading level of 0.01485 pence. The new shares will rank equally with existing stock and are being issued within the company’s existing share authorities.

Cash Preservation Strategy

The proceeds will be used primarily to support operating expenditure at Zulu, including the continuation of mining and stockpiling activities, the management of essential creditors, and general working capital requirements. The funding comes as Premier awaits the outcome of “constructive” discussions with Canmax regarding an extension of the Long Stop Date under their August 2023 prepayment and offtake agreement.

Managing Director Graham Hill said the funding provides “important working capital to contribute towards ongoing operational requirements at Zulu” while the company progresses its talks with Canmax. The Board believes the subscription will support “continued progress and preparations for the next production and optimisation campaign once a revised operating timetable has been confirmed.”

Dilution Deepens

The issuance compounds an already aggressive expansion of Premier’s share capital. Just last month, the company issued 2.77 billion shares to Canmax after the Chinese group converted US$628,702 in accrued interest into equity. With today’s 4 billion new shares, total issued capital now stands at approximately 50.1 billion, further diluting existing holders.

The latest tranche was priced at 0.01375 pence, a level that reflects ongoing market skepticism about Premier’s ability to resolve its financing challenges. The company’s shares have fallen approximately 93% over the past 52 weeks, with the stock recently trading at 0.01485 pence.

Zulu Stalled Amid Canmax Negotiations

Premier had previously targeted July for restarting plant operations at Zulu following a truncated June commissioning run that delivered encouraging concentrate grades of up to 5.58% Li₂O. However, the company now says it will not resume operations until concluding negotiations with Canmax over extending the Long Stop Date, the deadline by which Premier must deliver sufficient spodumene concentrate or provide a cash settlement to repay Canmax’s approximately US$46 million advance.

The company remains “confident that a positive outcome can be achieved,” but cautioned that there can be no guarantee an extension will be agreed upon or on what terms. The proposed extension, alongside the successful completion of the next production and optimisation campaign, would represent “an important step in demonstrating sustained plant performance and supporting the Company’s ongoing engagement with potential strategic investors” for Zulu’s continued development.

Going Concern Risks

Premier’s auditor has expressed “significant doubt” about the company’s ability to continue as a going concern, highlighting the critical importance of securing additional financing. The company’s market capitalization has dwindled to approximately £7.2 million (US$9.3 million) from more than £100 million at its peak in 2023.

Engineering improvements undertaken following the June processing campaign have enhanced plant reliability, with modifications, upgrades, and maintenance carried out across the processing circuit. Mining and stockpiling activities are continuing at a reduced scale, with the company building ore inventories ahead of the planned restart.

 

PLZ Commits to Establishing Two Internationally Accredited National Laboratories in Zimbabwe

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Prospect Lithium Zimbabwe has pledged to collaborate with other lithium producers to establish two internationally accredited national laboratories in Zimbabwe, a move that will drive technological innovation and build robust local research capabilities to support the country’s long-term growth, Public Relations Manager Patience Chizodza has said.

By Rudairo Mapuranga

Speaking during a technical visit by Mines and Mining Development Minister Dr. Polite Kambamura, Chizodza said the company is fully committed to the laboratory development initiative, which is among the government’s key conditions for lithium producers following the February suspension of raw mineral and concentrate exports.

“We pledge to collaborate with other lithium producers to establish two internationally accredited national laboratories in Zimbabwe. These labs will drive technological innovation, knowledge sharing, and build robust local research capabilities to support the long-term growth of the nation,” Chizodza said.

She confirmed that a working committee has already been set up to advance the project, with work currently in progress.

The laboratory initiative aligns with the government’s push for enhanced transparency and accountability across the mining value chain. Under the Minerals Value Chain Framework approved recently, Zimbabwe is ending its reliance on foreign laboratories for mineral certification, with the Ministry of Mines and Mining Development decentralising analytical hubs to national universities and establishing a Mine-to-Market tracking system.

The government has commenced the construction and capacitation of mineral testing laboratories to enhance the country’s ability to accurately assess lithium ore, a strategic move expected to improve value retention and ensure Zimbabwe derives maximum benefits from its vast mineral resources.

The National Metallurgical Laboratory in Harare is being upgraded into a comprehensive national reference laboratory capable of testing minerals across the entire mining value chain, from exploration samples to beneficiation and final product analysis.

Chizodza said PLZ maintains full adherence to tax regulations and revenue remittance requirements, with zero outstanding compliance issues. She noted that the company has a fully equipped assay laboratory at the Arcadia Mine for real-time quality control and an Environmental Health and Safety Department that has been operational since 2023.

Minister Kambamura, during the same visit, said the government will examine the sector “with a new eye” to ensure that all producers adhere to their obligations, including the development of laboratories, skills and knowledge transfer, training for local personnel, and the placement of Zimbabweans in senior management roles.