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Diaspora Investor Protection: What Legal Safeguards Must Be In Place To Ensure You Retain Control Of Your Mine From Abroad?

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Introduction

This topic deserves at least two comprehensive articles. For now, however, I shall focus on one critical aspect that has haunted the dreams of countless diaspora investors: how to retain control of your mining investment when you are thousands of miles away.

Three years ago, a colleague of mine, a successful businesswoman based in the USA called me with infectious enthusiasm. She had heard about Zimbabwe’s mining boom and, more importantly, about the Government’s new policies designed to support local investors in the sector. The timing seemed perfect.

Within weeks, she had secured mining claims and purchased equipment, including a small processing plant for ore extracted. She had committed her life savings to this venture. It was, by any measure, a bold and calculated investment. Then came the critical decision: she appointed her brother to manage the day-to-day operations. What could possibly go wrong? For months, her brother’s updates were remarkably consistent. Each call brought news of a “visible belt” of gold, tantalisingly close, yet always requiring just a bit more capital to access and extract.

One month became two. Two months became a year. Her life savings dwindled. Her patience evaporated. Yet the promised gold never materialised. She found herself trapped in a peculiar limbo: waiting for a return on investment that would never arrive, unable to intervene because she was an ocean away and increasingly aware that something had gone terribly wrong. But what, exactly, had gone wrong? Was it bad luck? Poor geology? Or was it something far more preventable?

In this article, I will share my perspective informed by sixteen years of legal practice on the specific legal safeguards you must put in place to protect your diaspora mining investment. More importantly, I will show you how to ensure that you retain absolute control of your mining operation, regardless of where you live or who manages it on the ground.

Summary of the safeguards

The fundamental problem facing diaspora miners is this: you are investing significant capital in an operation you cannot physically monitor. You are entrusting your money to a local manager or partner whom you may not know well. You are operating in a foreign legal system. And you are hoping that the person on the ground is acting in your best interests.

This is a recipe for disaster unless you put specific legal safeguards in place. These safeguards fall into five categories: corporate structure, contractual agreements, financial controls, operational transparency, and dispute resolution mechanisms.

A proper corporate structure ensures that you own the mining operation, not your local manager. A comprehensive contractual agreement specifies exactly what your manager can and cannot do. Financial controls ensure that every dollar is accounted for. Operational transparency ensures that you know what is happening on the ground in real time. And dispute resolution mechanisms ensure that if something goes wrong, you have a legal pathway to recover your investment.

Without these safeguards, you are vulnerable to mismanagement, theft, unauthorised spending, and complete loss of control.

Common nightmares experienced by Diasporas

My colleague’s story is not unique. I have seen variations of it dozens of times in my practice. There is the diaspora investor who appointed his cousin to manage the mine. The cousin spent $50,000 on a new vehicle “for operational purposes.” The vehicle was used for personal transport. When the diaspora investor objected, the cousin refused to return the money, claiming it was his compensation for managing the operation.

There is the diaspora investor who appointed a local mining partner. The partner secretly negotiated with a third party to sell the mining claim. By the time the diaspora investor found out, the claim had been transferred. The diaspora investor had no legal recourse because the claim was registered in the partner’s name.

There is the diaspora investor who sent monthly payments to her local manager. The manager deposited the money into a personal bank account, not a company account. When the diaspora investor asked for financial statements, the manager provided vague, undocumented figures. Years later, the diaspora investor discovered that the manager had been skimming 40% of the funds for personal use.

There is the diaspora investor who appointed a local director to his company. The director, without authorisation, took out a loan in the company’s name. The company is now liable for a debt the diaspora investor never authorised.

These are not hypothetical scenarios. They happen regularly. And they happen because diaspora investors fail to put legal safeguards in place.

What mistakes are you making?

If you are a diaspora investor, you are likely making one or more of these critical mistakes.

1. Registering the mining claim in someone else’s name

You appoint a local manager or partner and register the claim in their name “for convenience.” This is a catastrophic mistake. Once the claim is in their name, it is legally theirs. You have no ownership. They can sell it, mortgage it, or abandon it. You have no recourse.

2. Failing to formalise the management arrangement

You appoint your brother, cousin, or friend as manager based on a handshake and WhatsApp messages. There is no written agreement specifying their responsibilities, their authority, their compensation, or what happens if they breach their duties. When disputes arise, you have no contract to enforce.

3. Failing to establish financial controls

You send money to your manager, and they deposit it into a personal bank account. There are no monthly financial statements. There is no independent audit. There is no segregation of personal and business funds. You have no visibility into how your money is being spent.

4. Failing to establish operational transparency

You do not know what is happening on the ground. You do not receive regular operational reports. You do not know how much ore is being extracted. You do not know how much is being sold. You do not know the profit margins. You are flying blind.

5. Failing to establish a dispute resolution mechanism

If something goes wrong, you have no agreed-upon process to resolve the dispute. You end up in expensive, time-consuming litigation in Zimbabwe courts while your mining operation sits idle.

How can you be protected?

Here are the legal safeguards you must put in place before you send a single dollar to Zimbabwe.

1. Use a Private Limited Company

Do not register the mining claim in your personal name or in your manager’s personal name. Register it in the name of a Private Limited Company. You own the company through shares. Your local manager is an employee or director of the company, not the owner. This ensures that you retain legal ownership of the mining operation.

2. Draft a comprehensive management agreement

Before appointing a local manager, draft a detailed written agreement that specifies: their exact responsibilities, their authority limits, their compensation, how they will report to you, what financial controls they must follow, what happens if they breach the agreement, and how disputes will be resolved. This agreement must be signed and registered with the appropriate authorities.

3. Establish a company bank account

Do not allow your manager to use a personal bank account. Open a company bank account in Zimbabwe. All funds must be deposited into this account. All expenses must be paid from this account. You must receive monthly bank statements. This creates a clear audit trail.

Require monthly financial reporting

Your manager must provide you with detailed monthly financial statements showing: cash received from ore sales, all expenses incurred, the balance remaining, and a reconciliation to the bank account. These statements must be signed by your manager and verified by an independent accountant.

Require operational reports

Your manager must provide you with detailed monthly operational reports showing: the amount of ore extracted, the grade of the ore, the amount sold, the selling price, the profit margin, and any operational challenges. This allows you to monitor the actual mining operation, not just the finances.

6. Establish a tiered authority structure

Your manager should not have unlimited authority. Specify that expenses above a certain threshold (e.g. US$5,000) require your written approval. Specify that major decisions (e.g. hiring new staff, purchasing new equipment, changing operational procedures) require your approval. This prevents unauthorised spending.

7. Include a dispute resolution clause

Your management agreement should specify that any disputes will be resolved through mediation and arbitration, not litigation. This is faster, more confidential, and more enforceable than court proceedings.

8. Conduct regular site visits

Even though you live abroad, you should visit the mining site at least twice per year. Verify that the equipment exists and is in good condition. Verify that mining operations are actually taking place. Verify that the financial statements match the operational reality. A site visit often reveals problems that financial statements hide.

Wither profitability?

You may be wondering: if I put all these safeguards in place, will my mining operation still be profitable?

The answer is yes. In fact, these safeguards will make your operation more profitable because they eliminate waste, prevent theft and ensure that your manager is focused on maximising production and profit. The safeguards do not prevent your manager from earning a good income. They simply ensure that the income is earned through legitimate operational profit, not through skimming funds or misusing company resources.

A well-managed mining operation with proper safeguards in place can generate excellent returns. A poorly managed operation with no safeguards will generate nothing but losses.

The choice is yours. You can either invest the time and money upfront to establish proper safeguards, or you can invest the time and money later to recover from fraud and mismanagement.

In conclusion

My colleague in the USA eventually recovered part of her investment through litigation. However, it took three years, cost her US$50,000 in legal fees, and she lost the opportunity to develop the mining operation further. The mining claim was eventually forfeited to the State because it was not actively worked during the dispute.

She learned a hard lesson: legal safeguards are not optional. They are essential.

If you are a diaspora investor considering investing in a Zimbabwe mining operation, do not make her mistake. Before you send a single dollar, put these safeguards in place. Register the claim in a company you control. Draft a comprehensive management agreement. Establish financial controls. Require operational transparency. Include dispute resolution mechanisms.

These safeguards will not guarantee success. Mining is inherently risky. They will, however, protect you from the most common causes of diaspora mining failure: mismanagement, theft, and loss of control. Your investment is too important to leave to chance. Protect it with proper legal safeguards.


Namatirai Ruzvidzo is a registered Legal Practitioner, Conveyancer and Notary Public. She possesses over 15 years specializing in Commercial law, Mining law and Property law. She practices in Avondale, Harare under the Law Firm Ruzvidzo Legal Counsel. She can be reached on +263 784 228 534 or by email: [email protected], copying [email protected]

Gold buying prices in Zimbabwe per gram/ ounce, 24 July 2026

Gold buying prices in Zimbabwe per gram/ ounce, 24 July 2026, from the official gold buyer and exporter, Fidelity Gold Refinery (FGR).

1 oz = 31.1035 g

CategoryPrice (US$/g)Price (US$/oz)
SG 90% and Above121.563,780.94
SG 85% but Less Than 90%120.273,740.82
SG 80% but Less Than 85%118.993,701.01
SG 75% but Less Than 80%117.703,660.88
Sample (5–10 g)115.773,600.85
Fire Assay (Cash)122.203,800.85

 

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

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


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

Young Miners Call for New Lending Model to Unlock Zimbabwe’s Mining Growth

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  • Small-Scale Miners Push for New Lending Model to Unlock Mining Growth

Zimbabwe’s young miners are calling for a radical overhaul of lending practices, urging financial institutions to assess mining projects on their production potential rather than traditional collateral requirements that they say continue to shut out emerging entrepreneurs, Mining Zimbabwe can report.

By Ryan Chigoche

The proposal emerged during a dialogue on access to finance for artisanal and small-scale miners organised by planetGOLD Zimbabwe, where stakeholders examined ways of closing the long-standing financing gap facing the sector.

Speaking at the meeting, Young Miners Foundation Chief Executive Officer Payne Farai Kupfuwa said conventional lending models were built around established mining companies with fixed assets, leaving many young miners unable to secure capital despite having viable operations and the capacity to increase production.

“As young miners, we should not be considered based on what we already have, but on the potential that we have to extract more minerals through financing,” he said.

Kupfuwa argued that banks and other financiers should broaden their credit assessment criteria to include production history, operational performance, and growth prospects, particularly for youth-led mining enterprises that often lack title deeds or other forms of conventional collateral.

The call comes as access to affordable finance remains one of the biggest barriers to growth in Zimbabwe’s artisanal and small-scale mining sector. While the segment contributes a significant share of the country’s gold output, many miners struggle to raise capital to invest in equipment, expand production, and improve operational efficiency because they fail to meet traditional lending requirements.

Beyond financing, Kupfuwa said greater formalisation and professionalisation of artisanal and small-scale miners would improve their ability to access alternative sources of capital. Strengthening governance and business practices, he said, would increase confidence among lenders while opening the door to innovative financing models tailored to the realities of small-scale mining.

He also linked the financing challenge to Zimbabwe’s drive towards more responsible mining, saying limited access to capital is slowing the adoption of mercury-free gold processing technologies.

While cleaner processing methods are becoming increasingly important as the country seeks to reduce the environmental and health risks associated with mercury use, the high cost of acquiring modern equipment remains beyond the reach of many young miners.

“Most of the youth are setting up their mining enterprises. They need to be assisted even from the start, even without titles. There can be evidence of production track records and other proof showing that a young person is already producing,” Kupfuwa said.

He said financing products should be co-designed with miners to reflect the realities of the sector, enabling young entrepreneurs to invest in safer technologies, increase productivity, and participate more meaningfully across the mining value chain.

The discussions form part of broader efforts by government, financial institutions, and development partners to improve financial inclusion within Zimbabwe’s artisanal and small-scale mining sector. As the country pursues higher mineral output and more sustainable mining practices, stakeholders say expanding access to appropriately structured finance will be critical to unlocking the growth potential of the next generation of miners.

Government Overhauls Mining Loan Fund for ASM Miners

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  • Government Moves to Overhaul Mining Loan Fund to Widen Access for Small-Scale Miners

The Ministry of Mines and Mining Development has begun overhauling the Mining Industry Loan Fund (MILF), with authorities reviewing its mandate and lending criteria in a bid to make the facility more accessible to Zimbabwe’s artisanal and small-scale miners, Mining Zimbabwe can report.

By Ryan Chigoche

The review targets a long-standing financing gap that has left many miners unable to secure affordable capital for mechanisation, mine development, and business expansion despite the sector’s growing contribution to national gold production.

Speaking to Mining Zimbabwe, Mining Industry Loan Fund Manager Ranga Mhazo said reforming the facility had become an urgent priority to ensure it better reflects the realities of Zimbabwe’s mining sector.

“The transformation of the fund is critical and very urgent,” Mhazo said. “We are reviewing the mandate of the fund as well as the eligibility criteria so that it becomes more inclusive and removes many of the challenges faced by our miners. At the same time, we must remember that this is a revolving fund and beneficiaries have to repay their loans so that the fund remains sustainable.”

The Mining Industry Loan Fund was established to provide affordable financing and equipment to small-scale miners, helping them develop into medium- and eventually large-scale operations. However, miners have for years complained that restrictive eligibility requirements, limited funding, and cumbersome application processes have prevented many deserving operators from accessing the facility.

The latest review builds on previous government efforts to strengthen the fund, including a US$5 million recapitalisation aimed at increasing lending capacity. Authorities now hope that revising the fund’s operational framework will improve its effectiveness and broaden its reach.

The reforms come at a time when access to affordable finance remains one of the biggest constraints facing Zimbabwe’s artisanal and small-scale mining sector. Limited access to capital has restricted investment in modern equipment, mine development, exploration, and safer mining technologies, slowing efforts to improve productivity and formalise mining operations.

The reforms are expected to support the government’s broader efforts to formalise the artisanal and small-scale mining sector, which consistently accounts for the majority of Zimbabwe’s gold deliveries to Fidelity Gold Refinery but continues to face significant financing constraints.

If successfully implemented, the overhaul could widen access to government-backed funding, helping miners invest in equipment, improve productivity, and build more formal and sustainable mining businesses.

NMB Links Mining Finance to ESG Performance

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  • NMB Links Mining Finance to ESG as Miners Seek Affordable Capital
NMB Bank is making environmental, social and governance (ESG) performance a key requirement for mining companies seeking concessionary financing, signalling a shift in how lenders are assessing credit risk as sustainable finance gains traction in Zimbabwe, Mining Zimbabwe can report.
By Ryan Chigoche 
For years, access to affordable finance has ranked among the biggest constraints facing Zimbabwe’s mining industry, with artisanal and small-scale miners frequently citing stringent collateral requirements, high borrowing costs and financing models that do not reflect the realities of their operations. Industry stakeholders have also argued that while banks are willing to lend, many miners struggle to meet the requirements needed to access formal financing.
As lenders increasingly incorporate environmental, social and governance (ESG) considerations into credit decisions, the requirements for accessing cheaper capital are also changing. NMB Bank says miners that meet its climate finance eligibility criteria can access concessionary lending at reduced interest rates, with qualifying businesses eligible for a 0.5 percentage point interest rate concession.
Speaking to Mining Zimbabwe, NMB Bank Group ESG Officer Gerald Chigumbu said the initiative forms part of the bank’s broader climate finance framework, which rewards businesses that integrate sustainability into their operations.
“We offer what we call a concessionary rate, but for you to qualify you need to meet our climate finance eligibility criteria. We assess whether a company has a climate strategy and whether its operations contribute to climate mitigation or adaptation. For mining companies, this means having the appropriate environmental and social management systems, and we also conduct environmental and social due diligence before determining eligibility for the concessionary rate,” Chigumbu said.
The move reflects the growing role of sustainability-linked finance in the banking sector, where access to lower-cost capital is increasingly tied to environmental and social performance as well as financial strength. Development finance institutions that provide climate finance to commercial banks typically require strong ESG safeguards, prompting lenders to incorporate these standards into their credit assessment frameworks.
For mining companies, this means ESG is becoming more than a regulatory or corporate reporting requirement. It is increasingly influencing the cost and availability of finance for expansion projects and new investments.
Chigumbu said the bank’s due diligence extends beyond reviewing financial statements and includes site inspections to assess environmental and social risks. Lenders also evaluate rehabilitation plans, waste management systems, occupational health and safety practices, and engagement with host communities before approving climate-linked financing.
He added that financing mining projects requires specialist technical expertise, with banks relying on independent evaluators to assess operational risks and project viability alongside traditional financial analysis.
The ESG requirements vary according to the scale of operations. Smaller mines are expected to implement environmental and social management plans, while larger operations require comprehensive environmental and social impact assessments supported by mine rehabilitation programmes.
Industry stakeholders also called for financing models that reflect the realities of Zimbabwe’s artisanal and small-scale mining sector, arguing that differences in scale, land tenure and capital requirements make standard lending approaches unsuitable for many operators.
The development comes as Zimbabwe’s mining industry continues to seek affordable long-term capital to support expansion and meet the country’s ambition of building a US$12 billion mining economy. While access to finance has long been identified as one of the sector’s biggest constraints, lenders are increasingly indicating that strong ESG performance will play an important role in determining which projects qualify for concessionary funding.
For miners, the message is becoming clearer: demonstrating sound environmental management, responsible community engagement and good governance is no longer only about meeting regulatory expectations it is increasingly becoming a prerequisite for accessing cheaper capital.

Mutapa Gold Commits US$50 Million to Transform Jena Mine, Targets 100kg Monthly Gold Output by 2029

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  • Jena Mine Poised for Transformation as Mutapa Gold Allocates US$50 Million to Midlands Operation
  • Phase One expansion targets 100kg per month as exploration accelerates and plant rehabilitation begins

Jena Mine, described by Mutapa Gold Resources CEO Patrick Maseva-Shayawabaya as possessing “arguably one of the best resources in the country,” is set for a major transformation after the company allocated US$50 million from its recently secured US$125 million syndicated loan facility for the mine’s Phase One expansion, Mining Zimbabwe can report.

By Rudairo Mapuranga

The funding, part of a broader US$212 million expansion programme across Mutapa’s portfolio, will see Jena’s monthly gold production rise from the current 44 kilograms to 100 kilograms by 2029. The mine currently contributes about 40 kilograms per month, with production having rebounded from 17kg in January to a projected 42–43kg in April.

“We’ll use part of the money that has been oversubscribed on this fund-raise to do some work at Jena so that we increase their production from 45kg to 100kg,” Maseva-Shayawabaya said at the Shamva Hill project financing signing ceremony in Harare. “Of all our three operations, the biggest potential is with Jena.”

Immediate Priorities

Alfred Mandowe, General Manager of Jena Mine, outlined the three key areas for immediate investment:

“Primary objective is to do some exploration to the end of the year. Beyond that, we need to fix the plant,” Mandowe said. “For those who have been to Jena, the plant is a bit dilapidated. It’s an old plant. It’s also small for the capacity that we want to get to.”

The mine currently has a series of small shafts operating in a single compartment, requiring expansion to increase hoisting capacity as production scales up.

Stabilisation and Staged Expansion

Mandowe has previously indicated that the mine is undergoing a stabilisation phase requiring under US$10 million in capital this year. The current Phase One expansion is part of a staged approach:

  • Stabilisation phase: Under US$10 million to ensure consistent performance.
  • Interim upgrade: Approximately US$20 million to lift production to 60–80kg per month, adding one additional mill and improving underground operations.
  • Full expansion: Beyond US$100 million to push output past 200kg per month.

“A full-scale expansion, we are looking at capital expenditure in excess of US$100 million, although this would not need to be deployed all at once,” Mandowe said.

Resource Potential

Jena Mine has only been developed to a depth of 250 metres despite significant untapped potential, with management describing the asset as having high-grade ore approaching 2.5 grammes per tonne. Exploration spending could rise to around US$10 million to fully delineate targets, while investment in a larger processing plant is expected to exceed US$30 million.

“With the right level of capital, exploration and development, Jena can easily become one of the largest mines in Zimbabwe,” Mandowe said.

Employment and Community Impact

The mine currently employs about 700 workers, a figure expected to rise to around 1,000 during the interim upgrade phase. However, Mandowe said the full expansion would rely more heavily on mechanisation, limiting employment growth to roughly 1,500.

Jena Mine is also set to benefit from Mutapa Gold’s artisanal mining partnership model, which is being expanded to the operation following a successful pilot at Elvington Mine. Maseva-Shayawabaya confirmed the company will continue working with artisanal miners at Jena, saying there are “adequate spaces for each other” given the mine’s 4,000-hectare tenement.

By the end of 2029, Mutapa Gold Resources expects Jena to be producing 100 kilograms per month, contributing to the group’s broader target of 570 kilograms monthly across all operations. The company produced 1,826 kilograms in the first half of 2026 and remains on track to meet its annual target of 3,400 kilograms.

BMC Secures US$5 Million Ecobank Facility in Non-Dilutive Funding Boost for How Mine

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Bulawayo Mining Company (BMC), the wholly owned Namib Minerals subsidiary that operates the producing How Mine, has secured a US$5.0 million, 36-month non-dilutive term facility from Ecobank Zimbabwe Limited, following the bank’s own independent assessment, Mining Zimbabwe can report.

By Rudairo Mapuranga

The facility, which carries a base lending rate of 12% per annum minus a margin of 1% per annum, is subject to an acceptance fee of 1% of the total facility amount and a drawdown fee of 0.5% of the amount drawn down.

The term loan is designated to finance mining development, including hoist upgrades, expansion and maintenance of the milling plant, and drilling equipment at How Mine.

To secure the facility, How Mining Company has entered into a Security Agreement creating a security interest valued at US$7.5 million in favour of Ecobank over certain plant and machinery. A tripartite assignment agreement has also been executed with Fidelity Gold Refinery and Ecobank, providing for the assignment and routing of at least US$3 million monthly from gold sales through How Mining Company’s account held at Ecobank.

Strategic Impact on Redwing DFS

The strategic significance of the facility extends beyond How Mine. To date, Namib Minerals has funded the DFS technical programme for Redwing from internally generated cash flow. With How Mine’s capital works now financed on dedicated terms, the internally generated cash flow previously absorbed by those works is released and committed to funding the DFS technical programme through completion.

This creative funding structure enables the company to advance the Redwing restart without shareholder dilution, consistent with its previously communicated strategy of prioritising non-dilutive and minimally dilutive funding where possible.

Covenants and Terms

The Facility Agreement contains customary restrictive covenants applicable to How Mining Company and requires Ecobank’s prior consent for certain actions, including the incurrence of additional indebtedness, the acquisition of businesses or assets, and the repayment of shareholder loans or redemption of share capital.

The facility expires on May 31, 2029.

The company has also maintained a separate US$8.5 million facility with African Banking Corporation of Zimbabwe Limited, secured against mining leases and equipment, demonstrating its access to diversified funding sources.

The Ecobank facility strengthens Namib Minerals’ balance sheet and supports its disciplined, milestone-linked growth strategy. As the DFS technical programme progresses, the company will continue evaluating additional funding opportunities to advance Step 3 of the Redwing restart pathway, which includes resource definition drilling to enhance bankability.

Mutapa Gold Secures US$125 Million Syndicated Loan for Shamva Hill Project

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  • Consortium of eight local banks oversubscribes facility by US$50 million as Zimbabwe’s financial sector backs mining expansion

Mutapa Gold Resources Ltd. has secured US$125 million in syndicated financing from a consortium of eight domestic banks, significantly exceeding its initial US$75 million target in a landmark transaction that signals growing confidence in Zimbabwe’s mining sector, Mining Zimbabwe can report.

By Rudairo Mapuranga

The funding, which was oversubscribed by US$50 million, will support the development of the US$152 million Shamva Hill Project and expansion works at Jena Mine. The project will transform Shamva from a 66kg-per-month producer to a 200kg-per-month operation while freeing up processing capacity at Freda Rebecca.

“The financial services industry in Zimbabwe surprised us. When all those participating have signed, the amount that we have raised is US$125 million – US$50 million more than the US$75 million that we wanted,” said Patrick Maseva-Shayawabaya, CEO of Mutapa Gold Resources. “That US$50 million is what we’re going to allocate to Jena.”

Mutapa Gold Secures US$125 Million Syndicated Loan for Shamva Hill Project

Banking syndicate details

The financing facility was arranged and fully funded by Zimbabwean institutions, marking one of the largest domestic syndications for a mining expansion project in recent years. The breakdown of commitments is as follows:

BankAmount (US$)
CBZ Bank25 million
Ecobank25 million
CABS20 million
ZB Bank15 million
NMB Bank15 million
FBC Bank10 million
AFC5 million
First Capital10 million

Patrick Matute, Group General Manager of CBZ Holdings, speaking on behalf of the banking consortium, described the transaction as “the making of a billion-dollar business”. CBZ, which is one of Zimbabwe’s largest financial services groups, has committed approximately US$254 million towards mining-related financing across the extractive industry.

“Today, Mutapa Gold is already Zimbabwe’s largest gold producer, delivering around 115,000 ounces annually across Freda, Shamva and Jena,” Matute said. “That alone is a remarkable position. But the ambition we’re financing today goes much further – with the development of the Shamva open-pit mine and its state-of-the-art processing plant, Mutapa Gold has a clear path to annual output of over 200,000 ounces.”

Mutapa Gold Secures US$125 Million Syndicated Loan for Shamva Hill Project

Project timeline and impact

Gift Mapakame, General Manager of Shamva Mine, confirmed that site works are expected to commence in September 2026, with mainstream construction starting toward the end of the year. The project is scheduled for commissioning in 2028, following a 24-month construction period.

“Shamva Mine’s production is going to grow by about 264%. We’re basically going to move from a production platform of 0.8 tonnes per year to about 2.4 tonnes – an increment of 6% contributing to national gold production, which is quite huge,” Mapakame said.

The broader expansion programme will see Mutapa Gold’s monthly production rise from approximately 300 kilograms to 570 kilograms by 2029. The breakdown includes:

  • Shamva Hill: 66kg to 200kg per month
  • Freda Rebecca: 204kg to 270kg per month
  • Jena Mine: 44kg to 100kg per month

Community benefits

Mapakame emphasised that the project will deliver significant community infrastructure, including bulk water and power supply designed to serve both the mine and surrounding communities.

“The biggest benefactors of this project will be the community,” he said. “The project will come with bulk infrastructure that will not only cater for Shamva but will be able to cater for communities at large. We are having discussions with ZINWA and ZETDC to ensure we’ve got built-in capacity that communities will tap into.”

The project is expected to create approximately 1,800 jobs, including contractors and plant operators.

Billion-dollar ambition

Matute drew parallels with Zimbabwe’s largest corporates, saying the country could soon count Mutapa Gold among its billion-dollar revenue businesses.

“I think in Africa there are just about 365 businesses that have revenues of over a billion, and in Zimbabwe you can count about four – Innscor, Delta, Zimplats and, lately, Econet,” Matute said. “But I believe in two years we’ll be adding Mutapa Gold to that list. Owned here, mined here, financed here – all Zimbabwe.”

Eureka Gold Mine Powers Up 5.4MW Solar Plant in US$15m Energy Expansion

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Eureka Gold Mine has commissioned the first 5.4MW phase of its planned 16.4MW solar power plant after investing US$4.5 million, as the gold producer moves to strengthen electricity security and reduce exposure to grid disruptions, Mining Zimbabwe can report.

By Ryan Chigoche

The solar project, being developed by Dallaglio Investments, a subsidiary of Padenga Holdings, is expected to cost between US$12 million and US$15 million when fully completed.

Once operational at full capacity, the facility will generate 16.4MW of electricity, with about 8.2MW expected to be exported to the national grid through Zimbabwe’s net metering framework.

The first phase consists of 42 solar panel arrays, seven inverters, and a 5.5MW substation supplying electricity directly to the mine. The project uses solar tracking technology, allowing generation to continue for between 10 and 11 hours daily, compared with about six hours from conventional fixed solar installations.

The investment comes as mining companies increasingly develop their own power solutions to manage electricity supply challenges that have affected production across the sector.

Reliable electricity is critical for mining operations, particularly processing plants that require continuous power to maintain production. Power interruptions can reduce plant utilisation, delay processing schedules, and increase costs through greater reliance on diesel generation.

For Eureka, the solar project is expected to improve operational reliability while reducing dependence on alternative power sources during periods of grid instability.

Beyond supplying the mine, the completed facility will also contribute additional electricity capacity to Zimbabwe’s power system, with surplus generation expected to be exported to the national grid.

Eureka’s investment reflects a wider shift among mining companies towards captive power generation as producers seek greater control over one of their most important operating inputs.

Several mining companies in Zimbabwe have also moved to invest in renewable energy solutions. Platinum producers and lithium operations have been developing solar projects and other energy initiatives to support expanding production capacity and reduce exposure to power supply risks.

The push for independent power generation comes as the mining sector targets increased output and beneficiation, both of which require stable and affordable electricity supplies.

The solar development adds to the broader redevelopment of Eureka Gold Mine under Dallaglio Investments. The operation has undergone significant investment in recent years to restore production and establish itself as one of Zimbabwe’s modern gold producers.

With the first phase now commissioned, Eureka joins a growing number of mining companies investing in energy infrastructure as access to reliable electricity becomes increasingly important to sustaining production growth and improving operational efficiency.

The Finance Act: The Missing Link for Standardised CSR in Zimbabwe’s Mining Sector?

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Corporate Social Responsibility (CSR) in Zimbabwe’s mining sector remains a contentious issue for all parties involved. Host communities argue that they are not receiving fair value for the social and environmental costs they bear from mining operations. Meanwhile, mining companies express frustration about being treated as bottomless funding sources by various actors pursuing political or other agendas. The central question everyone is asking is simple but critical: where should CSR start, and where should it stop?

By Alexandra Tokozile Mliswa

The Mining Paradox

The National Development Strategy (NDS) 1 and 2 rightfully prioritise mining, considering the sector generates 75% of national exports. Yet, despite these impressive figures, the communities hosting mining operations, and the nation at large, have seen limited tangible development benefits. This disconnect points to a systemic problem that demands a structured solution.

A Framework Already Exists—We Just Need to Use It

Rather than reinventing the proverbial wheel, we should leverage existing legislative foundations. The Finance Act [Chapter 23:04], Section 22P (as amended by Act No. 7 of 2025), already requires mining companies to pay a levy equivalent to 3% of the gross value of coal, lithium, quarry stone, black granite, and dimensional stone.

Here’s where things get fuzzy: the Finance Act doesn’t explicitly state that this levy is for CSR—and that’s a problem. However, the intent has been signalled through official channels. ZIMRA’s Public Notice 09 of 2024 (issued on January 24, 2024) specifies that “the levy will be ring-fenced for community development.” More recently, in November 2025, the Minister of Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube, explicitly branded this as a “Corporate Social Responsibility levy” and emphasised mining companies’ obligation to pay it.

The Critical Questions

So, we have a CSR fund in place, yet communities continue to struggle. The immediate question becomes unavoidable: where has this 3% levy actually gone? Beyond that, several troubling questions remain unanswered:

  • Is there a formal record of collected funds?
  • Which companies have paid, and which haven’t?
  • How are the funds allocated?
  • What accountability mechanisms exist?
  • Who oversees compliance?

Clear Recommendations for Moving Forward

To establish a functional, transparent CSR framework, I recommend the following three-pronged approach:

Legislative Clarity

Amend the Finance Act to explicitly state that the 3% levy is designated for CSR purposes. This eliminates ambiguity and prevents overlapping or conflicting legislation down the line.

Operational Detail

Introduce secondary legislation (an SI, for instance) that outlines clear application and enforcement mechanisms for the 3% levy. This creates the scaffolding necessary for consistent implementation across all mining operations.

Public Transparency (Critical)

Make the levy a matter of public record. This is non-negotiable for building community trust and ensuring accountability. Section 13(4) of Zimbabwe’s Constitution provides that:

“The State must ensure that local communities benefit from the resources in their areas.”

To that end:

Transparency Mechanisms: Making Management Open

To complement these recommendations, I propose the following transparency measures:

  • Community Reporting: The relevant government department should publish annual CSR reports detailing how levy funds were deployed to host communities.
  • Community Oversight Committees: Create local committees with community representation to review and approve CSR spending proposals.
  • Accessible Dashboard: Develop user-friendly online platforms where stakeholders can track levy collection and disbursement in real time.

Unless we embed these accountability mechanisms, the CSR landscape will continue to face the same problems. The solution lies in openness—a framework where every monetary stream is visible to all interested parties.