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Prospect Resources Sells Step Aside Lithium Project in Strategic Pivot to Copper

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Prospect Resources Sells Step Aside Lithium Project in Strategic Pivot to Copper

In a strategic move reflecting shifting market priorities, ASX-listed Prospect Resources Ltd (PSC) has announced the sale of its Step Aside Lithium Project in Goromonzi. The company entered into a share sale agreement valued at up to US$2.2 million, redirecting its focus and resources entirely toward the burgeoning Mumbezhi Copper Project in Zambia, Mining Zimbabwe can report.

By Rudairo Mapuranga

This decision continues a pattern for Prospect, which previously sold its flagship Arcadia Lithium Project to Chinese battery giant Huayou Cobalt for US$422 million in 2022.

The sale of the Step Aside project is a deliberate pivot by Prospect Resources to capitalise on strengthening copper fundamentals while navigating lithium market volatility.

Managing Director and CEO Sam Hosack stated that the transaction “offers us both upfront cash return and future upside to subsequent exploration success and value growth at Step Aside,” while allowing the company to simplify its corporate structure and reduce overhead costs.

The buyer, Fatima Resources Pty Ltd, brings extensive Zimbabwe operating experience, positioning the Step Aside Project for continued development under new ownership.

The US$2.2 million agreement is structured to provide immediate liquidity while preserving future upside for Prospect.

The milestone payments are contingent on the buyer achieving specific development targets, including entering into binding offtake agreements, upgrading the mineral resource, or completing a future sale transaction valuing the project above US$5.0 million.

The Step Aside Lithium Project, located just 8 km north of the Arcadia Lithium Mine, has demonstrated significant potential through a multi-phase drilling program conducted from 2022 to 2024.

Recent assays from Phase 4 diamond drilling yielded high-grade intercepts confirming substantial mineralisation:

  • 13.0m @ 1.68% Li₂O from 75.5m (WinBin)
  • 15.3m @ 1.25% Li₂O from 179.9m, including 11.0m @ 1.60% Li₂O from 182.0m (Pegmatite E)
  • 5.0m @ 1.68% Li₂O from 149.0m (Pegmatite C)

The drilling successfully extended the high-grade mineralised zone at WinBin by at least 100 meters southwest and confirmed that the deposit remains open in multiple directions and at depth, indicating significant exploration upside. Hosack highlighted the identification of a “significant co-joined mineralised pegmatite system” as a key discovery.

The divestment of Step Aside mirrors Prospect’s successful monetisation of its flagship Arcadia Project just a few years prior.

In December 2021, Prospect signed a binding agreement to sell an 87% interest in the Arcadia Lithium Project to a subsidiary of Zhejiang Huayou Cobalt for an upfront cash consideration of approximately US$377.8 million. The total deal value was US$422 million, including minority shareholders.

The Arcadia Project was one of the world’s biggest hard-rock lithium resources, with proven and probable reserves estimated at 42.3 million tonnes grading 1.19% Li₂O. The sale represented a significant return on investment for Prospect, which had spent approximately US$25.7 million on exploration and evaluation at Arcadia.

Prospect’s strategic pivot centres on the Mumbezhi Copper Project in Zambia’s prolific Central African Copperbelt. The proceeds from the Step Aside sale will fund ongoing exploration at Mumbezhi, particularly the Phase 2 drilling program.

The company announced a maiden mineral resource estimate for Mumbezhi in March 2025 of 107.2 million tonnes at 0.5% copper for 514.6 kilotonnes of contained copper. Recent drilling has extended mineralisation at the flagship Nyungu Central deposit, with hole NCDD010 intercepting 60.5m at 0.53% copper from 296m, including 33.0m at 0.71% copper.

Hosack commented on the progress: “We are making excellent progress with the significant amount of Phase 2 exploration work currently underway. Our drilling at Nyungu Central continues to deliver promising extensional results and is helping us to better define the structure of this significant copper deposit.”

Prospect Resources’ decision to divest its lithium assets and pivot to copper reflects broader trends in the critical metals sector. The global copper market faces a projected supply deficit, driven by demand for electrification and renewable energy infrastructure. Electric vehicles, for example, use up to four times more copper than conventional internal combustion engine vehicles.

Meanwhile, the lithium market has experienced significant price volatility, making it challenging for junior explorers to maintain project economics. Prospect’s strategic shift allows it to reallocate capital from a non-core asset toward a copper project in a stable mining jurisdiction during a period of favourable market fundamentals.

As the company focuses on advancing Mumbezhi, the structured milestone payments from Step Aside provide additional upside exposure without ongoing operational commitments, creating a balanced approach to value creation in the evolving energy metals landscape.

Shareholders to decide on funding lifeline for Premier African’s Zulu Lithium

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Shareholders to decide on funding lifeline for Premier African’s Zulu Lithium

Premier African Minerals Limited is set to ask shareholders to endorse a major capital-raising plan to ensure the progression of its Zulu Lithium and Tantalum Project in Fort Rixon, Matabeleland South, at the forthcoming AGM, Mining Zimbabwe can report.

By Ryan Chigoche

The board has flagged two critical resolutions as the main agenda items at the AGM, stressing that approval is essential for the company’s survival and future.

Given the company’s recent operating loss of US$7.7 million in the first half of 2025, and cash on hand of only US$29,000 as at 30 June, the meeting has become a make-or-break event for the miner.

Scheduled for 7 November 2025, the AGM follows a postponement made to allow extra consultation between the board and the company’s principal shareholder on the funding proposals.

Premier is seeking authority to disapply pre-emption rights for 24 months, allowing the board to issue or grant rights over up to five billion ordinary shares.

A second, conditional resolution asks shareholders to approve issuing a further one billion shares within the next 12 months, to facilitate the conversion of rights held by Canmax Technologies, as previously disclosed.

In its circular, the company stated:

“The Board strongly supports both resolutions. Without approval of these resolutions, the Company will be unable to issue shares or raise further capital, and this may have a material adverse impact on the Company’s ability to continue as a going concern.”

Managing Director Graham Hill highlighted the operational significance of the capital raise, saying:

“My conviction has been that in order to achieve stable and consistent operations, all parts of the plant need to be balanced in terms of mass and water flows. This is true for the existing flotation plant as well as for the Secondary Flotation Plant.”

Hill added that the funding will support Phase Five, the pre-production readiness phase, which involves extended plant runs, maintenance optimisation, and system balancing ahead of full-scale production.

The funding appeal comes amid notable operational and financial headwinds. For the six months ended 30 June 2025, the company reported an operating loss of US$7.687 million, attributed mainly to ongoing overheads and administration costs tied to the construction, installation, and optimisation of the Zulu plant.

Cash at hand stood at US$29,000. Furthermore, the company has warned that until the funding is secured and the plant is optimised, substantial uncertainty remains over its ability to deliver on its production targets and may cast doubt on its capacity to continue as a going concern.

This development comes as the company recently announced the completion of a detailed on-site technical audit at the Zulu project that reviewed core plant systems, including pumping, pipelines, and water and mass balance.

The findings from that audit will inform operational adjustments and funding deployment, supporting the company’s assessment of whether the plant, with the proposed capital injection, can reach its design capacity.

Given the operational challenges, tight cash position, and the stakes attached to Phase Five, the 7 November AGM takes on elevated importance: approval of the resolutions may well determine the company’s immediate future, whilst rejection could force Premier to pursue more uncertain, ad-hoc funding routes.

Caledonia Appoints July Ndlovu to Board in Move to Strengthen Growth Strategy

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Caledonia Appoints July Ndlovu to Board in Move to Strengthen Growth Strategy

Caledonia Mining Corporation has appointed July Ndlovu as an independent non-executive director, a move aimed at strengthening the company’s leadership as it pursues expansion and operational efficiency across its gold portfolio, Mining Zimbabwe can report.

By Ryan Chigoche

Ndlovu brings more than 28 years of experience in the Southern African mining sector. He previously served as Chief Executive Officer of Thungela Resources Limited, a South African thermal coal producer, leading the company through significant growth and transformation.

He has also held senior roles at Anglo American Platinum Limited and other major mining firms, overseeing large-scale operations and projects.

Currently an independent non-executive director at AECI Limited, Ndlovu chairs the Remuneration & Human Capital Committee and sits on the Investment, Innovation & Technology Committee.

He has also chaired the boards of Unki Mine (Private) Limited and Anglo American Zimbabwe. He holds a Master’s in Business Leadership from the University of South Africa and a BSc in Metallurgical Engineering from the University of Zimbabwe.

Commenting on the appointment, John Kelly, Chairman of Caledonia, said Ndlovu’s experience in the industry will be key as the company embarks on its next growth stage.

“We are very pleased to welcome July to the Board as an independent non-executive director. His extensive and broad-based experience in scaling and transforming businesses in the mining sector brings a valuable perspective as we execute our next stage of growth. July’s commitment to responsible leadership, health and safety, and stakeholder engagement is exactly the type of guidance we need at this stage.”

As part of its next growth phase, Caledonia is advancing the Bilboes and Motapa projects in Zimbabwe.

The Bilboes sulphide project is undergoing feasibility and optimisation studies aimed at accelerating development while managing capital costs, positioning it as a potential new production hub.

Adjacent to Bilboes, the Motapa property is being explored for shallow oxide and sulphide mineralisation that could supplement the Bilboes feed, enhancing overall project economics.

Together, these initiatives signal Caledonia’s transition from a single-mine operation at Blanket to a multi-asset producer, underpinning the company’s ambition to expand output and strengthen its long-term growth trajectory.

As a result, Ndlovu’s appointment supports Caledonia’s strategic goals.

His track record in large-scale project development, team leadership, and responsible mining is expected to provide critical guidance as the company advances its growth and sustainability objectives.

Skilled Rig Operator Accuses Chinese Drilling Giant of Unpaid Dismissal Package; HR Stonewalls Inquiry

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Skilled Rig Operator Accuses Chinese Drilling Giant of Unpaid Dismissal Package; HR Stonewalls Inquiry

A skilled Zimbabwean rig operator is locked in a dispute with China Jiangxi International, a Chinese drilling company, over an unpaid terminal benefits package allegedly promised upon his dismissal, Mining Zimbabwe can reveal.

By Rudairo Mapuranga

Obert Mufudza, whose employment with the company dates back to 2019, was dismissed on 2 September 2025. He alleges that the company agreed to a US$1,500 settlement covering his back pay and other entitlements, but has since failed to honour the agreement. When confronted with detailed questions, the company’s Human Resources department allegedly became confrontational and refused to provide any answers.

The case places a spotlight on the labour practices of some Chinese contractors in Zimbabwe’s critical mining sector and tests the enforcement of the country’s labour laws against well-resourced foreign entities.

According to Mufudza, his working relationship with China Jiangxi International began on 17 October 2019. He states that he worked for months without a formal contract—a period during which he was already operating complex and high-risk drilling rigs—before finally signing a short-term contract in 2020.

After a period of interrupted work, he was recalled in August 2024 and worked consistently until his dismissal on 2 September 2025. It was at this point, Mufudza says, that the company made a firm financial commitment.

“When they terminated my employment, they said they would give me all my money, notes, pay leave, and a package. They said they would give me $1,500, which they said was my money for all this time,” Mufudza stated.

This promise, he claims, has not been fulfilled. “Now they don’t want to give it to me; they are just procrastinating. They even said I would get it by the end of last month, but nothing came,” he added.

Mining Zimbabwe sent a detailed list of questions to China Jiangxi International’s HR department, seeking their account of the dismissal and the alleged broken settlement agreement.

After receiving no formal reply, a follow-up call was made. An HR representative confirmed that the inquiry had been “forwarded to his superior” but offered no timeline for a response. When the journalist noted that this lack of feedback left the public “in the dark,” the representative allegedly became abrupt and ended the conversation without any commitment to address the allegations.

This refusal to engage suggests a lack of accountability and leaves the claims made by Mr Mufudza unchallenged.

The role of a rig operator is highly skilled and safety-critical, involving the operation of heavy machinery essential for mineral exploration. The alleged initial lack of a formal contract for such a position raises significant questions about the company’s adherence to standard labour and safety protocols during that period.

The company’s alleged conduct appears to run counter to evolving labour standards, even within China itself. Recent legal developments in China show a push toward stronger worker protections. A new Judicial Interpretation from China’s Supreme People’s Court, effective September 2025, emphasises the importance of stable employment and clarifies employer liabilities, including double wage penalties for failure to sign a written labour contract in certain circumstances.

Furthermore, while China promotes a positive image in Zimbabwe through aid projects such as borehole drilling, disputes like Mr Mufudza’s may undermine that goodwill and fuel perceptions of unfair labour practices by its corporations overseas.

The standoff between Obert Mufudza and China Jiangxi International is more than a personal dispute—it is a test case for corporate accountability. It challenges whether Zimbabwean labour rights can be enforced against international players who choose to ignore them.

For now, the only response from China Jiangxi International is silence—a strategy that speaks volumes and leaves the public to draw its own conclusions.

VP Chiwenga Hails Hwange Colliery’s 31% Production Surge and Debt Clearance

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VP Chiwenga Hails Hwange Colliery’s 31% Production Surge and Debt Clearance

Hwange Colliery Company Limited (HCCL) Holdings’ impressive 31% production growth and remarkable financial turnaround have drawn high-level praise from Vice President Dr. Constantino Chiwenga, who hailed its revival as a signature achievement of the Second Republic, Mining Zimbabwe can report.

By Rudairo Mapuranga

The company reported a surge in its half-year output, climbing to over 2.5 million tonnes from 1.9 million tonnes in the same period last year. This significant growth was achieved through internal financing, without any fresh capital injection from the government.

VP Chiwenga, who was in Hwange to assess critical government projects, toured the colliery on Monday and witnessed firsthand the operational resurgence. He expressed profound relief and optimism at the company’s recovery.

“I am quite thrilled, very happy, and very relieved to see Hwange Colliery now on its feet,” he said. “I think everyone in the country had almost lost hope regarding its revival, especially with the terrific speed we have witnessed. The team here, led by Mr. Munashe Shava and CEO Mr. William Gambiza, has done a wonderful job.”

The Vice President highlighted the company’s success in clearing a massive debt burden. From a peak of US$450 million in 2018, which included substantial local and statutory obligations, the firm has now settled all its domestic debts. This financial discipline leaves Hwange Colliery with only external debts to manage, marking a critical step towards long-term stability.

The revival has also had a direct human impact, with the workforce expanding to 500 employees—a dramatic increase from the mere handful employed before the advent of the Second Republic.

This performance aligns with the government’s broader economic strategy, which aims to foster growth by increasing the export of coking coal and ensuring a reliable supply of coal for domestic electricity generation.

With the colliery now on a stable footing, VP Chiwenga challenged management to maintain the momentum. “Hwange is back on its feet, and what we now want to see is the rapid development of the various ideas and strategies they have presented to us,” he concluded, signalling government support for the company’s future plans.

Gold buying prices in Zimbabwe per gram/ ounce, 6 November 2025

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Gold buying prices in Zimbabwe per gram/ ounce, 6 November 2025

Gold buying prices in Zimbabwe per gram/ ounce, 6 November 2025, from the official gold buyer and exporter Fidelity Gold Refinery (FGR).

1 oz = 31.1035 g

CategoryPrice ($/g)Price ($/oz)
SG 90% and ABOVE120.563,749.11
SG 85% and above but below 90%119.283,709.79
SG 80% and above but below 85%118.013,670.84
SG 75% and above but below 80%116.733,631.15
Sample 5g and above but below 10g114.823,571.28
Fire Assay CASH121.203,771.75

 

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.

Dangote’s US$1 Billion Investment Set to Reshape Limestone Mining in Zimbabwe

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Dangote’s US$1 Billion Investment Set to Reshape Limestone Mining in Zimbabwe

The landscape of Zimbabwe’s mining and industrial sector is on the verge of a major transformation, directly tied to its vast limestone deposits. Africa’s richest man, Aliko Dangote, is finalizing plans for a US$1 billion industrial complex in the country—a project that promises to reshape the nation’s limestone mining and cement production, marking a potential watershed moment for the economy, Mining Zimbabwe can report.

By Rudairo Mapuranga

This venture, which integrates cement manufacturing, coal mining, and power generation, could become one of the largest privately led investments in Zimbabwe in over a decade. For a country with a history of stalled foreign investments, Dangote’s return signifies a renewed confidence that could recalibrate the entire regional market.

Dangote’s interest in Zimbabwe is not new. The Dangote Group initially explored opportunities in 2015 and 2018, with discussions around a cement plant and other investments. Those early efforts, however, did not come to fruition.

Reports from that period highlight challenges, including bureaucratic hurdles such as the denial of visas for Dangote’s technical team and alleged demands for bribes by political bigwigs, which stifled the progress of the investment.

The current push gained momentum after discussions during the Afreximbank Annual Meetings in Abuja in June. Paul Tungwarara, President Emmerson Mnangagwa’s investment adviser, confirmed that “The richest man in Africa is coming to Zimbabwe at the invitation of President Mnangagwa,” and that logistical preparations for the visit are underway. The government appears keen to ensure this visit concludes with a solid investment, determined to avoid the outcome of the 2015 visit, when Dangote “came but did not return.”

The planned US$1 billion investment is not a single factory but a comprehensive, vertically integrated industrial complex. This strategic approach is designed to control costs and ensure efficiency across the production chain, with the limestone quarry at its core. The components will likely include:

Cement Factory and Limestone Quarry: A major cement production plant, fundamentally supported by its own large-scale limestone quarry and grinding plant. This will move Zimbabwe’s limestone mining from primarily local supply to a major industrial export orientation.

Coal Mine: A dedicated coal mine to supply energy for the cement manufacturing process.

Power Station: An integrated power generation facility to guarantee a stable and cost-effective energy supply for the entire complex.

This model of vertical integration has been a hallmark of Dangote’s success across Africa, reducing operational costs and securing the entire production chain from raw material to finished product.

The arrival of the Dangote Group represents more than just a financial injection; it is a strategic overhaul of a key mineral sector.

Economic Revitalization: The project is expected to create numerous jobs, drive industrial growth, and bolster Zimbabwe’s standing as a destination for high-value foreign direct investment. A success could reposition the country as a regional supplier of construction materials and energy.

A Pan-African Industrial Strategy: For the Dangote Group, which operates in 17 African countries, this move is a strategic step in building a pan-African industrial network. Zimbabwe offers a strategic location near South Africa—a major market where Dangote currently has no active industrial presence. The busy Beitbridge border crossing between the two countries would facilitate regional trade.

Proven Track Record: Dangote’s operations in countries such as Ethiopia, Senegal, and Zambia have already disrupted markets, stabilized local supply chains, and reduced construction costs. The group’s landmark US$20 billion refinery in Nigeria further demonstrates its capacity to undertake transformative, continent-shaping projects.

As Dangote prepares to meet with President Mnangagwa and senior officials to discuss mining concessions for limestone and coal, tax incentives, and investment security, the world is watching. This US$1 billion venture is more than an investment; it is a test of Zimbabwe’s reformed business climate and its ability to secure and nurture large-scale, job-creating foreign investments.

If successful, the clinker from its kilns will do more than produce cement—it will lay the foundation for a new era of industrial ambition in Zimbabwe, firmly built upon its limestone bedrock.

Gold buying prices in Zimbabwe per gram/ounce, 5 November 2025

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Gold buying prices in Zimbabwe per gram/ounce, 5 November 2025

Gold buying prices in Zimbabwe per gram/ ounce, 5 November 2025, from the official gold buyer and exporter Fidelity Gold Refinery (FGR).

1 oz = 31.1035 g

CategoryPrice ($/g)Price ($/oz)
SG 90% and ABOVE120.043,736.99
SG 85% and above but below 90%118.773,697.23
SG 80% and above but below 85%117.503,657.48
SG 75% and above but below 80%116.233,617.73
Sample 5g and above but below 10g114.323,558.25
Fire Assay CASH120.673,756.57

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.

Jena Mines Gold Production Increases 25%

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Jena Mines Gold Production Increases 25%

Kuvimba Mining House (KMH)-owned Jena Mines has demonstrated a robust operational recovery, reporting a significant 25 percent surge in gold production for the quarter ended 30 September 2025. The impressive quarterly performance signals a positive turnaround after a slower previous period, though a half-year comparison reveals the challenges the operation has faced over the broader period, Mining Zimbabwe can report.

By Rudairo Mapuranga

The latest production figures, seen by Mining Zimbabwe, show output rose to 3,086 ounces in the three months to September — a substantial increase from the 2,476 ounces produced in the quarter ended 30 June 2025. This quarter-on-quarter growth of 24.6 percent underscores a successful ramp-up in operational activity. The combined output for the half-year ended 30 September 2025 reached 5,562 ounces.

However, when viewed against the previous year’s performance, the data tells a more complex story. The half-year total of 5,562 ounces represents a decrease of 14.4 percent compared to the 6,494 ounces achieved in the equivalent half-year period ended 30 September 2024. This year-on-year dip highlights the impact of the mine’s slower start to the calendar year. The recent strong quarterly growth, however, suggests that management’s interventions are effectively steering the operation back on track. This performance follows a particularly productive first half of the 2025 calendar year, when Jena Mines reported a production of 11,092 ounces for the period ended 31 March.

Industry analysts suggest this volatile production profile is not uncommon for mining operations navigating issues such as fluctuating ore grades and plant availability. The decisive quarter-on-quarter rebound at Jena is being viewed as a positive indicator of resolving such temporary setbacks. This performance aligns with the wider strategic narrative communicated by Kuvimba Mining House, which has publicly emphasized a focus on optimizing existing assets through improved plant recovery rates and processing efficiencies rather than immediate large-scale capital expansion.

A company statement from KMH earlier in the year alluded to this strategy, noting that “overall gold production is expected to remain stable, with potential increases driven by enhanced processing efficiency.” The 25 percent production jump at Jena Mines in the last quarter appears to be a direct reflection of this focused operational approach, possibly through the beneficiation of higher-grade ore sections or completed minor plant upgrades.

The performance of Jena Mines contributes to the broader picture of Zimbabwe’s gold sector — a critical anchor for the national economy. The sector has been on a general upward trajectory, with the country having surpassed its 2024 production target after a record delivery from both large-scale and artisanal miners. As one of the significant operations in the Midlands Province, Jena’s return to strong quarterly growth under the KMH umbrella will be a key metric watched by investors and industry stakeholders alike, who will be keen to see if this momentum can be sustained through the remainder of the financial year.

Gold buying prices in Zimbabwe per gram/ ounce, 4 November 2025

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Gold buying prices in Zimbabwe per gram/ ounce, 4 November 2025

Gold buying prices in Zimbabwe per gram/ ounce, 4 November 2025, from the official gold buyer and exporter Fidelity Gold Refinery (FGR).

1 oz = 31.1035 g

CategoryPrice ($/g)Price ($/oz)
SG 90% and ABOVE122.293803.64
SG 85% and above but below 90%121.003763.05
SG 80% and above but below 85%119.703722.46
SG 75% and above but below 80%118.413682.06
Sample 5g and above but below 10g116.473621.08
Fire Assay CASH122.943820.04

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.

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