Mining ZimbabweLatest Mining News, Policy and Industry Updates

Multi-listed, gold-focused miner Caledonia Mining Corporation Plc has, for yet another consecutive quarter since October 2021, approved a quarterly dividend of 14 United States cents (US$0.14) per share, Mining Zimbabwe can report.

By Rudairo Mapuranga

The Q2 2025 dividend continues Caledonia’s record of consistent payouts, reflecting its strong operational performance and solid cash generation from its Zimbabwean gold assets. This dividend is in line with the company’s long-standing quarterly dividend policy, which was adopted by the board in 2014 as part of its strategy to maximise shareholder value.

According to Caledonia, all shareholders with a registered address in the UK will be paid in sterling.

Dividend Timetable for Q2 2025

The relevant dates for the Q2 2025 dividend are as follows:

Ex-dividend date VFEX: August 20, 2025
Ex-dividend date AIM: August 22, 2025
Ex-dividend date NYSE American: August 22, 2025
Record date: August 22, 2025
Payment date: September 5, 2025

Caledonia’s dividend history underscores its commitment to returning value to shareholders. The company adopted its quarterly dividend policy in 2014, building on a track record that began with its inaugural dividend in February 2012 of 6 Canadian cents. By 2013, the company had announced plans to maintain an annual aggregate dividend of the same amount, payable quarterly.

In 2015, the company transitioned its reporting currency from Canadian Dollars to United States Dollars. This change also saw dividends declared in USD, with the first quarter of 2016 paying 1.125 US cents per share, later raised in the same year to 1.375 US cents per share. Following a 1-for-5 share consolidation in 2017, the dividend was adjusted proportionately.

Since then, Caledonia has steadily increased payouts, including notable jumps in 2020 from 7.5 US cents in January to 10 US cents by October. In 2021, the board increased the dividend every quarter, culminating in the October 2021 rise to US$0.14 per share, a 104% increase compared to October 2019, where it has remained.

The October 2021 increase coincided with the commissioning of the Central Shaft at Blanket Mine, which significantly enhanced production capacity and reduced operational risk. Since then, Caledonia has kept its quarterly payout steady at US$0.14 while advancing strategic growth projects, including the Bilboes development and Motapa exploration.

The board will continue to review future dividends in line with operational performance, capital investment opportunities, and its prudent approach to risk management. With consistent production at Blanket Mine and progress on new projects, Caledonia remains well-positioned to maintain its dividend track record while pursuing long-term value creation for shareholders.

Zimbabwe’s lithium industry will converge at Bikita Minerals on 27 August 2025 for the inaugural Lithium Producers Conference, an event organised by the Chamber of Mines of Zimbabwe through its Lithium Producers Committee, Mining Zimbabwe can report.

By Rudairo Mapuranga

The gathering is expected to set the tone for deeper collaboration between government, miners, and investors as the country pushes to strengthen its position in the global lithium value chain.

Minister of Mines and Mining Development Winston Chitando will be the Guest of Honour at the conference, which will tackle policy frameworks, beneficiation strategies, investment incentives, taxation, infrastructure development, and other issues critical to unlocking the sector’s full potential.

A Sector on the Move but Facing Headwinds

Lithium production in Zimbabwe has grown exponentially in the past three years, with exports surging from US$7 million in 2022 to over US$600 million in 2023. Investments exceeding US$3 billion have flowed into the sector since 2021, creating more than 5,000 direct and indirect jobs. Key players, including Bikita Minerals, Prospect Lithium Zimbabwe (PLZ), Sabi Star, Kamativi, Bravura, and Sandawana, are advancing beneficiation plants, some with capacities of up to 600,000 tonnes annually.

Bikita Minerals, owned by China’s Sinomine, is one of three companies alongside PLZ and Kamativi that have committed a combined US$700 million to build lithium sulphate plants. These projects align with the government’s goal of ensuring more minerals are processed locally instead of being exported in raw form.

Speaking earlier this year at the Chamber of Mines AGM in Victoria Falls, Bikita Minerals Managing Director Xuedong Gong underscored the need for government incentives, tax holidays, and policy stability to sustain momentum in the sector.

“Realised through value addition and beneficiation, we know that by processing locally, we stand to gain more than by exporting raw materials,” Gong said. “But investor confidence is low due to policy uncertainty. What we did last year is completely altered by new directives this year.”

Gong argued that clear, consistent policies on licensing, taxation, and exports are essential if Zimbabwe is to attract and retain serious investors. He was particularly critical of the current royalty and levy structure, which he said penalises beneficiation by charging the same rate on processed lithium as on raw products, plus an additional 5% levy on beneficiated output.

“Infrastructure is another bottleneck,” he added. “For new investments in lithium, we require basic infrastructure such as roads, power, and water supply. The lack of these in lithium-rich regions drives up costs and limits competitiveness.”

Global Price Pressures and the Need for Support

Global lithium prices have declined sharply, putting pressure on miners who have invested heavily in midstream and downstream operations. Gong warned that without supportive measures such as tax holidays for new investments, the drive toward value addition could stall.

“We are not just digging, we are processing. We’re building an industry. But for Zimbabwe to lead Africa in lithium, government support is critical,” he said.

He also called for flexibility in labour policies to allow high-investment projects to import specialist skills when necessary, while continuing to hire locally and build community infrastructure.

The 27 August conference at Bikita Minerals is expected to provide a platform for frank discussions between producers and policymakers on these challenges. Delegates will share project updates, explore policy reforms, and identify strategies to align Zimbabwe’s lithium ambitions with global market realities.

With the industry’s rapid growth, the stakes are high. If the right policies, infrastructure, and incentives are put in place, Zimbabwe could not only meet its US$12 billion mining industry target but also establish itself as a global hub for battery-grade lithium.

“Lithium is a gift to Zimbabwe. Let’s treat it with care. Give us stable policy, reliable infrastructure, and supportive partnerships, and we will lead Africa in lithium.”

Zimplats is considering bringing its mothballed Hartley mine back into production, more than two decades after it was placed under care and maintenance, as stronger platinum prices prompt a review of long-stalled assets, Mining Zimbabwe reports.

By Ryan Chigoche

The mine, acquired from BHP in 2001 when Impala Platinum took control of Zimplats, was shut in 1998 after failing to meet production targets.

Now, with prices surging 36% in the second quarter of 2025, driven by rising Chinese demand and supply disruptions in South Africa, the company is reassessing its future.

“Zimplats is conducting studies and trials to develop a safe and efficient mechanised mining method for reopening the mine,” said Impala board chair Thandi Orleyn at the commissioning of a 35 MW solar plant in Selous recently.

However, she gave no timelines or production estimates.

The renewed focus on Hartley comes after two years of weak platinum group metal prices forced Impala and its peers to cut costs and shelve major capital projects. In 2024, Zimplats deferred parts of its US$1.8 billion expansion programme due to subdued market conditions.

Despite the slowdown, the miner has pressed ahead with infrastructure development, completing the first phase of a 185 MW solar project and expanding its smelter.

Both were officially commissioned this week alongside the new solar facility.

Zimplats aims to complete all outstanding capital works, including a refurbishment of its base metal refinery, by 2031.

If studies confirm Hartley’s viability, the project could become a cornerstone of its long-term growth plans.

While many in the industry are looking at Bilboes purely for its size and the promise to triple Caledonia Mining Corporation’s gold output, there is a quieter but equally transformative story unfolding next door, the Motapa property, Mining Zimbabwe can report.

By Rudairo Mapuranga

The Motapa project is not just another exploration licence on the map; it is a calculated move in Caledonia’s chess game to redefine Zimbabwe’s gold production landscape.

Motapa sits cheek by jowl with Bilboes, and in mining, proximity matters, especially when infrastructure, processing, and resource synergies are on the table. After encouraging results from its 2024 exploration programme, Caledonia has doubled down, committing US$2.8 million to a 2025 drilling campaign targeting both sulphide and oxide resources. By the end of June, the company had already sunk 1,788 metres of diamond drilling and 9,638 metres of reverse circulation drilling, with more results expected in the second half of the year.

This is not just exploration for the sake of ticking boxes; it is strategic. Early results have already indicated new mineralised zones near the proposed Bilboes processing plant site. If these results hold, Motapa could feed into Bilboes’ planned processing facilities, reducing standalone capital expenditure and extending mine life beyond initial projections. The relocation of the Bilboes tailings storage facility (TSF) to the Motapa property is also under review, a move that could leverage topography to cut initial construction costs.

Caledonia CEO Mark Learmonth calls Bilboes “transformational” not just for his company, but for Zimbabwe. The project, according to the Preliminary Economic Assessment (PEA) released in June 2024, could produce approximately 168,000 ounces (5,225 kg) of gold annually once operational. When combined with Blanket Mine’s output, Caledonia’s total production would surge to over 240,000 ounces (7,460 kg) a year, making it a heavyweight among African gold producers.

But the key here is not just scale; it is smart growth. The feasibility study (FS) for Bilboes, originally due in Q1 2025, has been deliberately extended. The reason is optimisation opportunities. Caledonia is exploring options like selling concentrate in the early years to defer the high cost of building a BIOX plant, and evaluating TSF relocation to Motapa. These are not delays born of indecision; they are calculated pauses to ensure the project delivers maximum value with minimum waste.

Financing such an ambitious project, pegged at over US$400 million, will require discipline. Learmonth is clear that internal cash flows, particularly from Blanket Mine’s strong performance, will play a central role. Debt financing is also on the table, but equity dilution will be avoided as far as possible.

“A project as big as Bilboes, if successful, would be transformational for Caledonia. It would also be transformational for Zimbabwe, not just in terms of economic contribution, but by forcing international investors to revisit and reconsider their misconceptions about Zimbabwe as a mining investment destination,” he told Mining Zimbabwe.

He is not wrong. For decades, Zimbabwe has been tagged as “high risk” in global mining investment circles, often without investors factoring in the operational successes of companies like Caledonia. A project of Bilboes’ scale, executed to international standards, could change that narrative not only for gold, but for the entire mining sector.

Bilboes’ potential life of mine is already impressive, with forecasts of 1.5 million ounces over the first 10 years. But integrate Motapa’s exploration upside, and the horizon stretches further. More years, more ounces, and more return on infrastructure investment. This is why Motapa is not just an optional side project; it is a crucial piece of the long-term puzzle.

Caledonia’s portfolio strategy reflects this thinking. Blanket Mine remains the cash engine, producing 76,656 ounces in 2024, a 1.6% increase over 2023, and hitting the upper end of guidance. Its 2025 guidance is 73,500 to 77,500 ounces, supported by ongoing development, process efficiency upgrades, and a capital expenditure budget of US$34.9 million for the mine alone. That cash flow strength is what will help fund the early stages of Bilboes without overreliance on external capital.

Learmonth’s disciplined approach, “build value, do not just raise capital for the sake of it,” stands out in an industry where many juniors race to dilute shareholders in pursuit of growth. His focus is on leveraging operational cash flows, integrating synergistic assets like Motapa, and aligning funding structures to protect shareholder value.

If successful, the Bilboes Motapa combination could do more than just change Caledonia’s production profile. It could send a signal far beyond Zimbabwe’s borders that world-class mining projects can be executed here, at scale, with discipline, and with returns that rival the best in Africa.

And for Zimbabwe’s mining sector, that would be transformational in more ways than one.

Mineral economist Lyman Mlambo has issued a stark warning over Zimbabwe’s 30% foreign currency retention policy and the government’s delayed settlement of more than US$609 million owed to platinum group metal (PGM) producers for the first half of 2025.

By Ryan Chigoche

The combined effect, he says, risks stifling growth in one of the country’s most critical sectors and weakening Zimbabwe’s standing as an investment destination.

The Reserve Bank of Zimbabwe (RBZ) mandates that exporters surrender 30% of their foreign currency earnings, known as retentions, in exchange for payment in local currency at an official exchange rate often significantly lower than market rates.

This policy aims to bolster local currency liquidity but has instead resulted in a massive backlog of payments to miners, particularly in the PGM sector.

PGM mining in Zimbabwe accounts for a substantial share of the country’s foreign currency earnings, supporting thousands of jobs and generating export revenues critical to the economy.

However, the sector is capital-intensive, requiring continuous imports of mining equipment, spare parts, chemicals, and specialist technical services.

Mlambo emphasised the disconnect between government policy and industry realities:

“In the first place, the forex retention level is too high considering that the PGM industry (like other mining sub-sectors) is capital intensive and imports most of its capital equipment, spares, consumables such as chemicals, and some technical expertise. The industry is busy trying to establish base metal and precious metal refineries in line with government’s beneficiation and value addition thrust. Thus, holding such a huge cumulative amount is punitive to the PGM industry and self-defeating for the government’s transformative industrial agenda.”

Zimbabwe’s beneficiation push aims to move mining beyond raw export by processing minerals locally, increasing value addition, and generating more jobs.

Yet, Mlambo argues that withholding retentions undercuts these ambitions, restricting the cash flow necessary to invest in such downstream projects.

Compounding the sector’s challenges is the official exchange rate used for converting retentions, which is significantly lower than the parallel market rate miners face when paying for local costs.

“It would be fair if the government were to concede to the miners’ demands that they be allowed to use the converted retentions to meet their statutory and local utility bills in local currency, with the bills also converted at the same official rate. I understand these bills are being settled in foreign currency,” Mlambo said.

Delayed payments have another hidden cost: inflation. With no adjustment for the time value of money, miners receive funds whose purchasing power has eroded by the time they are eventually paid.

This scenario reduces the real benefit of the payments and further squeezes operational liquidity.

The consequences of these policy inefficiencies ripple beyond immediate financial strain. Mlambo warns of potential long-term setbacks:

“This inefficiency on the part of government, which seriously affects the industry’s cashflows, increases the country’s risk profile. It could negatively impact plans by current producers to invest into new mining projects, expand their current operations, and to implement plans on beneficiation in the medium- to long-term.”

Zimbabwe competes with other mineral-rich African countries such as Botswana, South Africa, and Zambia for mining investment capital.

According to Mlambo, the country’s unattractive retention and payment policies risk deterring investors who have more options elsewhere:

“Most importantly, it makes the country a less competitive investment destination compared to other mining jurisdictions. Zimbabwe does compete with other countries, especially mineral-rich African counterparts, for global mining investment capital.”

Industry stakeholders have previously expressed frustration over liquidity constraints caused by the retention policy and delayed payments.

Without urgent government intervention to clear arrears and reform the payment framework, Zimbabwe risks losing momentum in a sector crucial to its economic recovery.

The RBZ’s foreign currency retention policy, introduced to manage liquidity in the local market and stabilise the Zimbabwean dollar, faces a delicate balancing act.

While ensuring currency stability remains vital, Mlambo’s observations suggest that the cost may be too high if it throttles the mining sector’s growth and investor confidence.