Mining ZimbabweLatest Mining News, Policy and Industry Updates

Padenga Holdings, the parent company of Dallaglio Investments, has put its search for new gold assets on hold. The group’s chairman has warned that a speculative frenzy, fuelled by record bullion prices, has made claims prohibitively expensive, Mining Zimbabwe can report.

By Ryan Chigoche

Speaking at the company’s annual general meeting in the capital recently, chairman Thembinkosi Sibanda said sellers are demanding unrealistic valuations, forcing the group to prioritise organic growth over external deals.

“Although we haven’t got one we can speak of today, there’s always overpricing in this game at this point in time because everybody thinks gold is doing so well,” the chairman said.

“And so they expect gold assets to be overpriced. We’ve said it’s not a good time to be in the market trying to purchase claims or anything like that because you’re going to be asked to pay more than they’re worth.”

Gold surged past US$5,000 per ounce in early 2026, extending a rally that saw prices close 2025 at US$4,332.59, up sharply from US$2,690.13 in 2024. The rally has attracted speculative capital into Zimbabwe’s mining sector, inflating the value of mineral claims and exploration properties.

Rather than chase overvalued targets, Padenga is shifting its focus to its existing operations. The group runs its mining business through Dallaglio Investments, which operates the Eureka and Pickstone Peerless mines.

“So the strategy the CEO has outlined is to develop, further grow, and expand our existing operations,” the chairman said. “We already know what resources are there. It just requires more capital to continue development.”

Padenga completed the full acquisition of Dallaglio in the first quarter of 2025, having taken an initial 50.1% stake in 2019 before acquiring the remaining 49.9%. The mining unit now accounts for 94% of group turnover, up from 86% in 2024, underscoring the company’s complete transformation from its origins as a crocodile farming business.

The group’s financial performance has been robust. For the year ended 31 December 2025, revenue rose 26% to US$265.82 million, while profit after tax nearly doubled, increasing 93.5% to US$70.7 million. Padenga has budgeted US$17 million for mining exploration in 2026, targeting resource expansion at its existing claims rather than external acquisitions.

The decision to pause acquisitions does not signal a retreat from gold. At Pickstone Peerless, a US$15 million investment is expected to boost output by 26%, while a pit redesign at Eureka is projected to add 15 tonnes of gold and extend the mine’s life to 2039. The group’s market capitalisation now stands at US$1.04 billion, making it Zimbabwe’s second most valuable listed company.

If market conditions normalise, Padenga may revisit external acquisitions. Chief Finance Officer Oliver Kamundimu said last month that the company is actively scouting for “correctly priced gold assets” across Zimbabwe. For now, however, discipline has prevailed over expansion.

That restraint is underpinned by a solid foundation. Dallaglio Investments’ gold portfolio comprises the producing Pickstone Peerless Mine near Chegutu and the Eureka Gold Mine in Guruve, alongside the Giant Gold Claims, which provide additional exploration and resource growth potential. Pickstone serves as the company’s flagship operation, while Eureka was successfully revived after years on care and maintenance, adding a second producing asset to the portfolio.

Together with the Giant Claims and associated exploration ground, these assets have established Dallaglio as one of Zimbabwe’s leading large-scale gold producers, with a strategy centred on both operational growth and resource expansion.

Thanks to improved performance at these assets, the company reported a strong production- and price-driven performance for the first quarter of 2026, with gold output rising 13% to 697kg from 618.9kg in the comparable prior-year period.

Zimbabwe’s enforcement of local beneficiation laws has emerged as a major force in the global lithium market, helping to tighten supply, reshape trade flows, and support a sustained price recovery, according to a recent report by Skillings Mining Review, a century-old research firm specialising in the extractive sector.

By Ryan Chigoche

The report describes the country’s February 2026 ban on raw lithium ore exports as a “Zimbabwean gambit” that removed significant volumes of high-grade material from the spot market, forcing buyers to adjust procurement strategies and accelerating investment in downstream processing.

Battery-grade lithium carbonate prices have since rebounded from late-2025 lows of about US$13,400 per tonne to a more stable range of US$22,000 to US$26,000 per tonne by June 2026. The review attributes part of that recovery to a tighter supply environment created by Zimbabwe’s policy intervention.

According to the report, the market has become increasingly sensitive to export restrictions. Enforcement of local processing requirements has curtailed raw ore exports and compelled producers to shift towards domestic value addition, often requiring substantial capital investment.

The analysis identifies three immediate consequences. Chinese refineries that depended on Zimbabwean feedstock have faced supply shortages, creating what it describes as “internal friction” across supply chains. At the same time, restrictions have largely eliminated informal artisanal exports that previously acted as an unpredictable source of additional supply during the 2024–25 market glut.

Producers operating in Zimbabwe are also being pushed towards what the report terms a “refine or resign” model, requiring meaningful commitments to local processing capacity ahead of the 2027 compliance deadline.

Those changes are beginning to show up in global supply-demand balances. In its Lithium’s Supply-Chain Shock analysis, the publication argues that Zimbabwe’s restrictions have helped tip the market from surplus into deficit, alongside rising battery energy storage system (BESS) demand and production curtailments in Australia.

Data cited in the report shows the lithium market moved into a deficit of 4,500 tonnes of lithium carbonate equivalent (LCE) during the first quarter of 2026 following the partial export ban. The deficit widened to 7,200 tonnes in the second quarter after stricter quotas were introduced and is projected to peak at 10,100 tonnes in the third quarter before easing slightly as new sulphate processing capacity comes online.

Overall, the market is expected to swing from a surplus of 61,000 tonnes in 2025 to a deficit of 22,000 tonnes this year, based on data compiled from BMI, UBS, and Skillings Market Intelligence. New supply additions are forecast to decline from 185,000 tonnes last year to 110,000 tonnes in 2026.

The report further argues that Zimbabwe’s beneficiation drive, combined with growing efforts by the United States and European Union to secure critical mineral supply chains, is contributing to a more fragmented global lithium market.

Reflecting that shift, the publication has raised its 2026 lithium price baseline to US$18,200 per tonne, citing Zimbabwe’s export restrictions as a key factor. It projects a bull-case scenario of US$22,800 per tonne should additional geopolitical disruptions emerge. Current prices, the report notes, appear to have settled around a “clearing price” that sustains efficient producers while discouraging higher-cost supply from re-entering the market too quickly.

For Zimbabwe, the focus is now shifting from policy implementation to execution. As the market increasingly rewards reliable, high-purity production, the country’s ability to convert its resource advantage into processed lithium products will depend on overcoming infrastructure constraints, particularly a power deficit that continues to exceed 1,000 MW.

The report concludes that expectations of a prolonged lithium oversupply underestimated both the pace of the global energy transition and the influence of policy interventions. Zimbabwe’s beneficiation strategy, it suggests, has become one of the clearest examples of how resource-rich countries can influence global commodity markets by moving further up the value chain.

CEO Maseva-Shayawabaya Says Payout Is ‘First of Many’ as Miner Targets 570kg Monthly Output

Mutapa Gold Resources Ltd., the gold mining vehicle restructured under Zimbabwe’s sovereign wealth fund, has declared a US$35 million dividend, its first since inception in January, with the bulk of the payout flowing to its parent, Mutapa Investment Fund, Mining Zimbabwe can report.

By Rudairo Mapuranga

The dividend, representing half of the US$70 million after-tax profit recorded for the nine months to December 2025, was paid last week following board approval. The company changed its financial year-end to December to align with the sovereign fund.

“Shareholders invest money to make money,” Chief Executive Officer Patrick Maseva-Shayawabaya told shareholders at the company’s inaugural briefing. “Delivery is ultimately about return on investment. We are delighted that this is the first of many dividends.”

The US$35 million payout was distributed according to shareholding:

• Mutapa Investment Fund – US$22,050,000
• CBZ Bank – US$4,375,000
• National Venture Capital Company of Zimbabwe – US$2,625,000
• Public Service Pension Fund – US$2,450,000
• Insurance and Pension Commission – US$1,750,000
• Deposit Protection Corporation – US$1,750,000

The dividend comes despite operational headwinds. For the 12 months to March 2026, Mutapa produced 3,266 kilograms (104,626 ounces) of gold from its three operating mines—Freda Rebecca, Shamva, and Jena—down from 3,600 kilograms a year earlier due to lower grades at Freda and Shamva.

Revenue for the nine months to December reached US$271 million, with a gross margin of 60%. For the quarter ended March 2026, revenue was US$144 million, although the margin narrowed to 34%.

Expansion Push

The company is now betting on a US$152 million project at Shamva Hill to develop a new open-pit mine and processing plant, lifting Shamva’s output from 66 kilograms to 200 kilograms per month. Local banks have pledged up to US$90 million.

At Jena, described by Maseva-Shayawabaya as a “rough diamond”, output has risen from 30 to 40 kilograms per month following a US$2 million intervention. Management sees a path to 100 kilograms per month.

Freda Rebecca, currently producing 200 kilograms per month, has only four years of remaining mine life, below the company’s 10-year threshold. Extensive drilling—46,000 metres completed in the past year, with 81,000 metres planned—is aimed at extending reserves.

Once Shamva stops trucking ore to Freda’s plant, the freed-up capacity could lift Freda’s production to 270 kilograms per month, the CEO said.

For the 2026 calendar year, Mutapa forecasts production of 3,400 kilograms (110,000 ounces). At current gold prices of around US$4,100 per ounce, revenue would be approximately US$500 million, with profit before tax of about US$200 million.

“If we hit 570 kilograms per month within three years, today’s US$35 million dividend will pale in significance compared to what we pay in 2028,” Maseva-Shayawabaya said.

Premier African Minerals Ltd. has raised another $1.07 million (£800,000) through the issuance of 4 billion new shares, just one day after announcing the production of its first spodumene concentrate from the long-struggling Zulu Lithium Project in Fort Rixon, Mining Zimbabwe can report.

By Rudairo Mapuranga

The milestone, while genuine, comes at a cost that existing shareholders know all too well: more dilution.

The London-listed miner issued the shares at 0.02 pence each, a slight improvement from the 0.0185 pence used in previous fundraisings, but still a fraction of a penny. Following the subscription, Premier’s total issued share capital will reach 43.3 billion ordinary shares.

Let that number settle. Forty-three billion shares. And the company still needed to raise just over $1 million to fund ongoing optimisation and working capital.

First Concentrate, But No Cash Yet

On 10 June, Premier announced that it had produced its first spodumene concentrate from the newly commissioned Xinhai flotation plant, a genuine operational breakthrough after years of failed circuits and mounting creditor pressures. Managing Director Graham Hill called it an “important operational milestone” and said the plant is operating and producing as expected.

But first concentrate is not commercial production. Optimisation continues. Operating parameters need refining. And the company still has not generated a single dollar in revenue from sales. Until concentrate is shipped, processed, and paid for, Zulu remains a cash incinerator.

The Dilution Never Stops

The maths is brutal. In just over six months, Premier’s share count has gone from roughly 9.35 billion to 43.3 billion, an increase of more than four and a half times. An investor who held 1% of the company in November 2025 now holds less than 0.22%. Their stake has been diluted by nearly 78%, and that is before today’s 4 billion shares are even admitted to trading.

The company says the funds will support ongoing optimisation, operating expenses, creditor management, and general working capital. In other words, even after achieving first concentrate, Premier cannot pay its bills without issuing more shares.

The Export Ban Remains Unresolved

Zimbabwe’s government suspended lithium concentrate exports months ago. Premier has said it is “in dialogue” with the Ministry of Mines and that the ban is “targeted at specific issues.” No formal exemption has been announced. Even if the flotation plant now works, there is no guarantee that any of the concentrate can leave the country and be sold on international markets.

Hill did not address the export ban in today’s funding announcement. The focus was entirely on operational progress and the need for more working capital.

What Comes Next

Premier has finally achieved what it promised for years: spodumene concentrate coming out of a flotation circuit. That is not nothing. But it is also not nearly enough.

Optimisation could take months. Ramp-up to steady-state production could take longer. And every step of that journey will require cash—cash that Premier does not have and cannot borrow. The only source of funding that has worked so far is the one that destroys existing shareholders: equity issuance at a fraction of a penny.

Hill said the board remains focused on advancing Zulu towards sustained production and delivering long-term value. But for the shareholders who have funded this project through nearly 44 billion shares, the question is no longer whether Zulu can produce. It is whether there will be any value left by the time it does.

First concentrate is a milestone. But at this rate, the only thing being reliably produced at Premier is dilution.

• Arcadia Mine Targets Year-End Crude Lithium Carbonate Output, Adding to Zimbabwe’s Processed Lithium Arsenal

Barely a month after making history with Africa’s first lithium sulphate exports, Prospect Lithium Zimbabwe (PLZ)‘s Arcadia Lithium Mine in Goromonzi is already moving to expand its processed lithium portfolio, with plans to produce crude lithium carbonate by the end of 2026, Mining Zimbabwe can report.

By Rudairo Mapuranga

In an exclusive interview with Mining Zimbabwe, PLZ General Manager Haijun Zhu confirmed that the company, a wholly owned subsidiary of China’s Zhejiang Huayou Cobalt, is actively adding new equipment to its Arcadia Lithium Mine in Goromonzi District to enable the production of crude lithium carbonate. Once operational, PLZ aims for a 50/50 output split between lithium sulphate and lithium carbonate.

“Yes, we are trying to move forward,” Zhu said. “We hope that by the end of this year, we should be able to produce crude lithium carbonate. We need to add some equipment.”

The announcement signals the next phase of Zimbabwe’s rapid ascent in the global battery supply chain, building on the government’s strategic push, which has already achieved a 106% quarterly revenue surge on virtually flat export volumes despite a full-month March ban.

From Sulphate to Carbonate: A Natural Progression

PLZ’s Arcadia mine represents the country’s most advanced downstream lithium facility. After commissioning a US$400 million processing plant in late 2025, the company officially began exporting lithium sulphate in April 2026, a high-value intermediate salt used to produce lithium hydroxide and lithium carbonate for EV batteries, grid storage, and consumer electronics.

The plant currently has a nameplate production capacity of 50,000 tonnes per annum of lithium sulphate, with early exports already moving to international markets.

Adding crude lithium carbonate would mark a decisive broadening of PLZ’s product suite. Crucially, unlike the company’s flagship lithium sulphate, which has been the subject of milestone exports, the proposed carbonate would be crude lithium carbonate, a distinct intermediate product that requires further refining to reach battery-grade purity.

Zhu’s planned 50/50 split would position PLZ as one of the most diversified battery mineral processors in Africa, capable of supplying multiple chemical pathways to downstream refineries.

What Is Crude Lithium Carbonate? Understanding the Value Chain

To fully appreciate PLZ’s ambition, it is essential to understand where crude lithium carbonate fits in the production chain from mine to battery.

Crude lithium carbonate (Li₂CO₃) is an intermediate product obtained from the processing of lithium-containing minerals such as spodumene or from the recycling of lithium-ion battery waste. It represents a midway point in the value chain – more refined than raw spodumene concentrate but not yet pure enough for battery applications.

The global benchmark for battery-grade lithium carbonate is a purity of 99.5% or above, with stringent limits on metallic and chemical impurities to ensure electrochemical stability and battery cycle life. Crude lithium carbonate typically falls below this threshold, requiring further purification to meet the specifications for EV and energy storage batteries.

The carbonisation method is one common refinement route: crude lithium carbonate reacts with carbon dioxide and water to form lithium bicarbonate, which is then thermally decomposed to regenerate lithium carbonate at battery-grade purity.

Once refined, lithium carbonate serves as a critical raw material for lithium-iron-phosphate (LFP) batteries, a chemistry that dominates energy storage systems and is rapidly gaining market share in the EV sector due to its lower cost, longer cycle life, and superior thermal stability. In contrast, PLZ’s existing lithium sulphate is typically refined into lithium hydroxide, the preferred feedstock for nickel-rich cathodes such as NMC (nickel-manganese-cobalt), used in premium EVs.

Thus, PLZ’s planned 50/50 portfolio would position the company to supply both major battery chemistries: crude lithium carbonate as an input for LFP-oriented refineries and lithium sulphate as an input for NMC-oriented refineries. This flexibility reduces dependency on any single downstream market segment, a crucial strategic hedge given fluctuating EV adoption rates and shifting battery chemistries.

Perfect Timing: Lithium Market Enters Deficit

PLZ’s crude lithium carbonate timeline coincides with a tightening global lithium market that analysts now characterise as structurally supply-constrained.

UBS recently raised its 2026 China lithium carbonate spot price forecast by 18% to RMB200,000 per tonne (US$28,200/t), with projections that spot prices could reach RMB250,000/t between May and June 2026. The upgrade reflects a 60% year-on-year surge in energy storage battery demand alongside tightening ore supply following Zimbabwe’s February concentrate export ban.

By March 2026, UBS estimated a global supply-demand deficit of approximately 65,000 tonnes LCE for the full year, driving a significant re-rating of lithium equities. The bank raised 2026 earnings forecasts for leading Chinese lithium stocks by 10% to 40%, exceeding market consensus by 56% to 211%, and maintained “Buy” ratings across the sector.

Data from InfoLink confirms the rally. As of mid-May, battery-grade lithium carbonate was trading in a range of RMB190,000–200,000/MT, up 12.7% week on week, with spodumene concentrate (SC6) CIF prices reaching US$2,750–2,850/MT, a 12.4% weekly gain.

China’s lithium carbonate output remains in a ramp-up cycle, with leading smelters maintaining high operating rates. However, lithium ore supply remains relatively tight. April–May seaborne cargoes are largely locked in, leaving limited room for spot replenishment, while ore-side inventory drawdowns continue.

Demand from energy storage systems (ESS) has emerged as the core driver of this market revaluation. UBS estimates global ESS battery demand will grow by 60% year on year, accounting for 17% of total lithium consumption compared to EV batteries’ 53% share.

This market backdrop makes PLZ’s carbonate timeline strategically significant. Each month of production delay risks leaving money on the table as rising prices increase the value of every tonne of processed material.

Beyond Carbonate: A Fully Integrated Power Play

PLZ’s downstream ambitions extend well beyond chemistry diversification. The company has constructed a 70-megawatt on-site power plant capable of supplying electricity to both PLZ and its sister company, Arcadia Technology Zimbabwe (ATZ).

“The power plant is meant to supply electricity to both PLZ and ATZ, and we are hopeful that by the second half of 2026 both entities will be fully operational,” PLZ Public Relations Manager Patience Chizodza said during a government tour of the facility.

The Arcadia complex now employs 2,000 workers directly and another 2,000 indirectly, with the majority drawn from surrounding communities. The company is also rehabilitating roads, constructing dams, building schools and clinics, and implementing community development programmes covering health enhancement, vocational education for youth, women’s empowerment, and energy equity.

The Bigger Picture: Zimbabwe’s Lithium Industry Takes Shape

PLZ’s Arcadia mine is now fully owned by Zhejiang Huayou Cobalt after the Chinese group acquired the remaining minority stake in 2025, bringing its ownership to 100%.

Additional exploration at Arcadia has increased the mine’s remaining lithium carbonate equivalent (LCE) resources from 1.5 million tonnes to 2.45 million tonnes, while ore grade has risen to 1.34%, significantly above the global spodumene average of 1.0–1.2%.

This upgraded resource base gives PLZ considerable runway for expanded downstream processing beyond the current 50,000 tpa sulphate capacity. Should the crude carbonate line prove successful, the company could scale towards its earlier stated ambition of producing more than 60,000 tonnes of processed lithium annually.

Zimbabwe as a whole is expected to produce about 124,000–180,000 tonnes of LCE in 2026, representing roughly 7–8.4% of global supply. The country remains a key supplier to China, providing around 15% of its spodumene imports.

Under the government’s Mineral Classification and Declaration gazetted on 22 May 2026, lithium is formally designated as a “critical mineral” alongside nickel, cobalt, graphite, copper, rare earth elements, chrome, PGMs, and eight others, banning raw or unbeneficiated exports without a conditional transitional plan. The framework mandates state shareholding through special-purpose vehicles (SPVs) and requires prior ministerial approval for all mining rights relating to critical minerals.

PLZ’s early compliance, from lithium sulphate production to the planned carbonate line, positions it as a model partner in Zimbabwe’s beneficiation-driven resource strategy.

Zhu’s year-end target for crude lithium carbonate is ambitious but achievable, requiring additional equipment to be sourced, installed, and commissioned over the coming six to seven months. The company’s existing infrastructure, including the 70 MW power plant, provides a solid foundation for this expansion.

If successful, PLZ will become Africa’s first producer of multiple lithium salt products from a single facility. For Zimbabwe, that success would further entrench the country’s position as a vertically integrated partner for the world’s leading battery manufacturers, not just a source of raw rock.

For investors and mining executives watching Zimbabwe’s lithium transformation, the question is no longer whether local processing will happen, but how fast it can scale. PLZ’s crude carbonate timeline, along with competitor moves such as Bikita Minerals’ US$400 million lithium sulphate plant, suggests that Zimbabwe’s downstream lithium industry is accelerating faster than almost anyone had projected.

Victoria Falls Stock Exchange-listed bullion producer Caledonia Mining’s 2025 exploration at the Motapa property in Zimbabwe has returned high-grade intersections that could turn the project into a strategic extension of its Bilboes mining complex, Mining Zimbabwe can report.

By Ryan Chigoche

The company envisions a combined operation that would enhance production and extend Bilboes’ life. Motapa lies directly adjacent to Bilboes, which has proven and probable reserves of 1.75 million ounces of gold in 24.1 million tonnes of ore at an average grade of 2.26 grams per tonne.

Shared infrastructure and operational synergies between the two properties could improve project economics and reduce capital intensity, Caledonia noted.

The 2025 drilling programme tested sulphide mineralisation below historical oxide open pits and identified new zones across Motapa. Results confirm the continuity of mineralisation along a six-kilometre strike within the Bubi Greenstone Belt, with multiple shear zones at Motapa North, Central and South. Both oxide and sulphide mineralisation support near-term and long-term development.

“These promising results from Motapa demonstrate the potential to significantly enhance the long-term value of the company’s Bilboes project,” CEO Mark Learmonth said. “The consistent high-grade intersections at Motapa North highlight the opportunity to define a substantial resource in close proximity to the planned infrastructure at Bilboes.”

Learmonth added: “While our immediate focus remains the development of Bilboes, targeting first gold in the fourth quarter of 2028, Motapa represents a compelling opportunity to extend mine life and increase future production across a combined mining complex.”

Selected highlights from Motapa North include 19 metres at 8.08 grams per tonne (hole JPRC52), 6.38 metres at 13.95 g/t (JDD11), 12 metres at 7.12 g/t (JPRC63), and 14 metres at 4.31 g/t (PLV5RC4). At Motapa Central (Mpudzi), highlights include 7 metres at 2.39 g/t (MPZRC79) and 3 metres at 4.79 g/t (MPZRC64).

A maiden mineral resource estimate for portions of Motapa is expected in the third quarter of this year.

The 2024 exploration programme comprised 12,724 metres of trenching, 4,143 metres of diamond drilling and 5,433 metres of reverse circulation drilling. In 2025, Caledonia completed 22,364 metres of trenching, 1,562 metres of diamond drilling and 18,547 metres of reverse circulation drilling. Surface trenching at Motapa South has also identified anomalous areas with no evidence of historical open-pit workings.

The significance of Bilboes to Caledonia extends beyond its reserve grade. As the company’s first wholly owned flagship project, it represents a shift from its historic reliance on Blanket Mine, offering full cash flow retention and a platform for growth in Zimbabwe’s gold sector. The Motapa drill results therefore carry strategic weight: they suggest Bilboes could evolve from a standalone asset into a multi-deposit hub, lowering per-ounce costs through shared infrastructure and potentially pushing output beyond 200,000 ounces annually.

Zimbabwe’s large-scale gold mines are on track for their first annual output increase since 2023, with deliveries through May already outpacing the rate recorded during a subdued 2025, according to data from Fidelity Gold Refinery (FGR), Mining Zimbabwe can report.

By Ryan Chigoche

Large-scale producers delivered 5.23 metric tonnes in the first five months of 2026, up about 13.6% from the 4.60 tonnes delivered during the same period in 2025, according to Fidelity Gold Refinery data. The segment produced 11.8 tonnes for the whole of 2025, its lowest annual total since 2022.

The stronger start to 2026 follows a gradual improvement in monthly deliveries after a weak January. Large-scale output fell 10.5% year-on-year to 808.4 kilograms in the opening month but recovered steadily thereafter.

Deliveries rose to 1,105.3 kilograms in March, up 14% from the same month in 2025. Momentum accelerated in April, when deliveries reached 1,213.9 kilograms, a 28.3% increase year-on-year, before remaining broadly stable at 1,210.3 kilograms in May, up 22.2%.

The recovery reflects more than stronger bullion prices, with major miners also benefiting from access to higher-grade ore, fresh capital investment, and a relatively stable operating environment.

Gold is forecast to average US$4,600 to US$5,000 an ounce in 2026, improving margins for industrial producers. Caledonia Mining Corp.’s Blanket Mine has guided for 72,000 to 76,500 ounces this year, with higher-grade ore expected in the second half, while Kuvimba Mining House has allocated US$54 million for equipment upgrades across its gold assets, including Freda Rebecca, Shamva, and Jena mines.

Unlike the artisanal sector, large-scale miners have also largely avoided the policy disruptions that affected gold deliveries earlier this year. In March, the Reserve Bank of Zimbabwe introduced a requirement for small-scale miners to receive 10% of their gold payments in local currency, triggering a 30.8% month-on-month decline in artisanal deliveries as some operators halted production.

The central bank suspended the measure in early April following industry concerns, restoring full foreign-currency payments. Throughout the period, however, large-scale producers retained their usual 70% foreign-currency retention threshold, helping shield operations from the disruption.

That distinction is important in a sector where artisanal and small-scale miners remain the dominant source of gold production. The segment accounted for nearly 75% of Zimbabwe’s record 46.7 tonnes of gold output in 2025. Deliveries from artisanal miners rebounded strongly in May, rising 29.9% year-on-year to 2,744.2 kilograms.

Even so, current trends point to a meaningful recovery in large-scale mining. Based on year-to-date performance and producer guidance, full-year deliveries are projected at between 14.5 and 15.5 tonnes in 2026, representing growth of 23% to 31% from last year’s 11.8 tonnes.

Reaching the lower end of that range would require average monthly deliveries of about 1,325 kilograms between June and December, modestly above the levels recorded in April and May. Achieving the upper end would require monthly deliveries of roughly 1,468 kilograms.

Further growth could come from new projects moving through the development pipeline. The Dokwe Gold Project in Matabeleland North, owned by Ariana Resources, hosts proven and probable reserves of 1.13 million ounces and is designed to produce as much as 100,000 ounces annually, equivalent to about 3.1 tonnes. A definitive feasibility study is expected in the first quarter of 2027, while commissioning is targeted for late 2026 or early 2027.

Seasonal factors may also support production in the months ahead. The second half of the year typically delivers stronger industrial output as drier operating conditions improve mining activity and expansion projects gather pace. With gold prices remaining elevated and major producers maintaining their guidance, Zimbabwe’s large-scale mining sector appears well positioned to record its first annual production increase since 2023.

Zimbabwe’s push for local content and beneficiation has come under fresh scrutiny after new trade data revealed a record US$23.2 million import bill for specialised underground mining machinery in April 2026, exposing the extent to which the country’s mining boom continues to depend on foreign manufacturers, Mining Zimbabwe can report.

By Ryan Chigoche

Latest figures from ZimStat show that imports of self-propelled coal and rock cutters and tunnelling machinery surged from just US$604,000 in March to US$23.2 million in April, an increase of more than US$22.6 million in a single month.

The unprecedented jump points to major mining projects entering critical development and commissioning phases. Yet it also highlights a less visible side of Zimbabwe’s mining growth story: some of the largest procurement contracts generated by the sector are still being awarded outside the country.

The April figure was more than fourteen times larger than any previous monthly import recorded in the category. Between January 2021 and April 2026, monthly imports of tunnelling machinery had never exceeded US$1.6 million.

At the same time, imports of self-propelled bulldozers and excavators climbed to a record US$17.2 million in April from US$16.6 million in March, extending a steady upward trend that has accelerated alongside mining expansion across the country.

Together, the figures paint a picture of an industry investing heavily in new capacity. However, they also expose a growing gap between mineral development and local industrial participation.

For every dollar spent on imported tunnelling machines, underground development equipment, and specialised mining machinery, the associated manufacturing, fabrication, and engineering value is largely captured outside Zimbabwe. While local businesses benefit from mining-related spending on transport, fuel, construction materials, security services, and labour, the highest-value equipment purchases continue to flow offshore.

Policy Ambition Meets Reality

The data arrives at a time when Government is intensifying its push for beneficiation, value addition, and local content through the National Development Strategy 2 and the newly launched Local Content Strategy. The stated ambition is to significantly raise local participation in strategic sectors over the coming decade.

But the April import figures highlight a critical missing link: enforceable procurement targets. Zimbabwe has no binding requirement for mining companies to source specialised underground equipment locally.

Compare that to Chile, which mandates that mining companies above a certain size report local procurement annually, with targets that rise over a decade. Or South Africa’s Mining Charter, which includes local content thresholds for capital goods. Without similar teeth, Zimbabwe’s strategy remains largely aspirational.

The foreign currency implications are stark. Mining exports generate billions of dollars annually, but large-scale equipment imports drain a substantial portion of those earnings. While such machinery is essential for future production growth, the immediate benefits of manufacturing and assembly accrue to industrial centres outside Zimbabwe.

Two Stories, One Question

The April surge therefore tells two stories. One is of growing investor confidence and a robust pipeline of mining projects moving towards production. The other is of a policy gap that allows record mining investment to be accompanied by record machinery imports with little structural benefit to local industry.

Until Zimbabwe develops stronger capabilities in mining equipment manufacturing, assembly, and engineering services, or at least sets phased, enforceable local-content targets, some of the largest cheques written during the country’s mining boom will continue to support factories beyond its borders.

The question for policymakers is no longer whether Zimbabwe can attract mining investment. It clearly can. The question is whether the next phase of the mining boom will finally write local factories into the story, or whether April’s US$23.2 million import bill will become a new baseline rather than an anomaly.