Mining ZimbabweLatest Mining News, Policy and Industry Updates

Government’s latest attempt to tackle Zimbabwe’s ballooning external debt may be walking a fine line between innovation and risk, Mining Zimbabwe reports.

By Ryan Chigoche

This comes as Finance, Economic Development, and Investment Promotion Minister Mthuli Ncube recently revealed that authorities are exploring the use of the country’s vast mineral wealth, including platinum, gold, and lithium, to help clear part of the US$13.2 billion owed to foreign creditors.

He said the government has already begun servicing some arrears through a platinum-backed arrangement and is working to expand similar resource-based mechanisms to address the broader debt burden.

While the plan is seen as a creative way to leverage natural endowments, development economists are warning that without transparency and sound governance, Zimbabwe could end up worsening the very problem it seeks to solve.

The country’s debt crisis has long been a drag on growth and investor confidence. As of December 2024, Zimbabwe’s total public and publicly guaranteed debt stood at US$21.5 billion, or 47.1% of GDP, with US$13.2 billion owed externally and US$8.3 billion domestically. More than 70% of the external arrears are interest-related, a sign of how long Zimbabwe has been unable to access fresh concessional funding.

Zimbabwe’s main creditors include the World Bank (US$1.48 billion), African Development Bank (US$671 million), European Investment Bank (US$372 million), Paris Club lenders (US$3.55 billion), and non-Paris Club creditors (US$2.22 billion). Past efforts to clear arrears, such as the 2015 Lima Strategy and partial payments to the IMF in 2016, failed to unlock new credit lines. Even a more recent US$2.6 billion bridge financing proposal from the AfDB has stalled amid governance and policy credibility concerns.

Against this backdrop, analysts say the idea of resource-backed debt is not new, but it is fraught with pitfalls.

Speaking to Mining Zimbabwe, Morgan & Co. Head of Research Tafara Mtutu said using minerals to repay debt could have unintended consequences if underlying governance problems persist.

“In my humble opinion, I’m not optimistic about this because when you look at why we are in this debt conundrum in the first place, it’s not that Zimbabwe lacks the expertise to generate returns from borrowed funds, but rather a lack of proper governance by those entrusted with public resources,” Mtutu said.

He added that resource-backed loans — where underground assets are used as collateral — have often worsened debt distress in developing countries. “There’s a good chance that we could actually make the situation worse,” he noted, cautioning that such deals can be opaque and difficult to renegotiate if commodity prices fall.

Economist Chenai Mutambasere echoed similar concerns, saying the feasibility of turning mineral wealth into reliable debt repayments remains highly questionable.

“Minerals are physical assets while debt repayments require liquid hard currency,” she explained. “Turning ore in the ground into cash flows depends on efficient extraction, transparent contracts, and global demand — all areas where Zimbabwe has struggled due to governance weaknesses and underinvestment in mining.”

She added that relying on mineral-backed loans could expose the country to dangerous price shocks. “Global commodity prices are notoriously volatile; a slump in platinum or lithium could suddenly undermine repayment capacity,” she warned.

Mutambasere said the biggest risk lies in governance failures. “Zimbabwe’s mining sector is plagued by opacity and elite capture, raising fears that debt-for-minerals deals will enrich a few while entrenching corruption. Without reforms to strengthen institutions and diversify revenue, relying on minerals to service debt is unsustainable. At best, it only buys time; at worst, it deepens the resource curse.”

Analysts point to examples across Africa where similar approaches have gone wrong. In Angola and Congo-Brazzaville, opaque resource-backed loans led to undervalued mineral assets, mounting debt, and lost revenues. Experts warn Zimbabwe could face the same fate unless it strengthens transparency, ensures competitive contract terms, and links such deals to tangible economic outcomes.

The country’s long-term debt sustainability will depend less on what is mined and more on how its resources are managed. Stronger fiscal discipline, credible re-engagement with creditors, and reforms that restore confidence in governance remain key to breaking the debt cycle. Without that, economists say, mortgaging minerals may provide only temporary relief — at the cost of future generations.

Zimbabwe is set to showcase the growing synergy between its mining and agricultural sectors, as plans for a US$400 million coal-to-fertiliser project in Gudo, Chiredzi, move forward. Anchored on rich local coal deposits, the initiative will convert the mineral resource into urea fertiliser, boosting agricultural productivity and supporting key export crops such as tobacco, Mining Zimbabwe can report.

By Ryan Chigoche

The project has already engaged the Ministry of Mines and Mining Development, with Verify Engineering and its partners applying for a special mining grant, highlighting mining’s central role in driving rural industrialisation and national economic growth.

The plant, spearheaded by Verify Engineering in partnership with Rusununguko Nkululeko Trust and a Chinese investor, will ride on coal deposits that have been mined in the area for more than two decades.

Verify has operated a coal mine near the Mkwasine River since 2007, and the same resource will now feed into the fertiliser production facility.

Coal-to-fertiliser technology converts coal into synthetic gas, which is then processed into urea, one of the most widely used nitrogen-based fertilisers.

For Zimbabwe, where agriculture is viewed as the backbone of the economy and fertiliser shortages are a recurring challenge, the project is expected to be a game-changer.

Permanent Secretary for Masvingo Provincial Affairs and Devolution, Dr. Addmore Pazvakavambwa, said the plant would significantly boost fertiliser availability while reducing the country’s import bill.

“The coal-to-fertiliser project in rural Chiredzi will not only improve fertiliser supplies for our farmers but will also create employment and save foreign currency currently spent on imports,” he said.

Local authorities in Chiredzi have welcomed the development, pointing to its potential to reshape the district’s economy, which is heavily dependent on sugarcane production, where fertiliser is a key input. They indicated readiness to support the investors through incentives such as tax concessions.

At the provincial level, the project is being viewed as part of the government’s push to use mineral resources for rural industrialisation. Officials say the investment aligns with efforts to grow Masvingo’s economy and create new industrial hubs.

Verify Engineering’s track record in mineral-based industrial projects has bolstered confidence, with the company having previously established Zimbabwe’s first medical oxygen plant in Mutare, which proved critical during the Covid-19 pandemic.

Mining and agriculture, Zimbabwe’s two largest foreign currency earners, are increasingly becoming interconnected through projects such as this one.

Mining contributes about 75% of the country’s export receipts, while agriculture accounts for roughly 15–20%, led by tobacco, sugar, and horticulture.

By linking coal mining to fertiliser production, the project demonstrates how mining can directly support agriculture’s productivity, while agriculture provides sustained demand for mining-derived inputs — creating a mutually reinforcing cycle that strengthens the country’s balance of payments.

With abundant coal reserves ensuring feedstock supply, and with the Mines Ministry already engaged through the licensing process, the project reflects how mining can be leveraged to power agriculture, stimulate rural economies, and cement beneficiation as a pillar of national development.

The rampant smuggling of Zimbabwe’s mineral wealth can only be effectively stopped when the nation prioritises the welfare and dignity of its frontline human capital, as technological solutions remain futile when the officials operating them are demoralised and under-supported, Senator Conrad Jericho Gotora said.

By Rudairo Mapuranga

Speaking in the upper house on Thursday, Senator Gotora of Mashonaland East argued that the government’s high-tech anti-smuggling drive is doomed to fail unless it first addresses the economic desperation that fuels corruption from within.

His address cuts to the heart of a national crisis, where reports indicate Zimbabwe loses over US$1.5 billion annually to gold smuggling alone, a staggering haemorrhage of resources from a sector that is the cornerstone of the economy. The Senator’s critique challenges the very foundation of current strategies, suggesting that a hungry official, even one armed with the latest technology, cannot be an effective guardian of the state’s wealth.

Recently, authorities have rolled out sophisticated measures designed to curb this illicit trade. The Mineral Marketing Corporation of Zimbabwe (MMCZ) has procured drone technology to enhance surveillance over mining sites and stockpiles, particularly in remote, high-risk areas. This initiative is part of a broader government push that includes boosting mine surveillance and implementing a gold-tracing system to monitor the metal from the mine to the market.

Yet, Senator Gotora pinpointed a fatal flaw in this approach. He stated that the sophisticated equipment is being undermined by the basic needs of the people operating it. “The people who are smuggling are being given permission by security who has drones because the security is hungry; they can’t arrest people who are feeding them,” he told the Senate.

This observation reveals the limits of a purely technological fix. A drone can identify a smuggling operation from the air, but if the officers on the ground are compromised by inadequate pay and hunger, the intelligence it provides is rendered useless. The system fails at the last, most critical mile: the human being tasked with enforcement.

A Tangible Symbol of Misplaced Priorities

The Senator provided a concrete example of what he termed “misplaced priorities,” highlighting the glaring absence of a weighbridge at the Nyamapanda border post. This fundamental piece of infrastructure is critical for monitoring and taxing heavy vehicles, particularly those carrying high-value commodities like granite from his constituency.

“The lorries that are going out with granite from Mtoko and UMP are just using the Nyamapanda border; there is no weighbridge,” he declared. “We are failing to build a weighbridge because we have misplaced priorities.”

This failure is more than an administrative oversight; it is a symbol of a deeper governance crisis. The continued lack of such a basic tool, while more complex solutions are pursued, suggests a disjointed strategy that fails to plug the most obvious revenue leaks.

At the heart of Senator Gotora’s argument is a compelling philosophy: Zimbabwe’s greatest asset is its people. He directly linked the brain drain of skilled professionals to the vulnerability of security personnel, stating, “We have engineers working very well in other countries because here they will be hungry.”

This connection is crucial. A state that fails to adequately invest in its human capital—ensuring its civil servants, security forces, and professionals can live with dignity—unintentionally sabotages its own institutions. A well-fed, fairly compensated official possesses the moral and economic fortitude to resist corruption. A well-remunerated engineer is empowered to build a career at home, strengthening the nation’s productive capacity.

“We need to feed our human capital to reduce smuggling,” the Senator asserted. This is not merely a call for salary increases, but a plea for a fundamental re-evaluation of national spending. It posits that investing in people is the most sophisticated and effective anti-smuggling strategy available.

The government’s technological and regulatory measures are necessary, but as Senator Gotora’s speech makes clear, they are insufficient alone. The fight must be waged on two parallel fronts.

The first is the physical front: continuing to deploy drones, enhancing border security, and finally building the long-overdue weighbridges. These are critical operational tasks that must be executed with urgency.

The second, and more decisive front, is the human one. The state must tackle the economic desperation that turns protectors into accomplices. This means ensuring all state employees, especially those in enforcement, earn a living wage that insulates them from bribery. It also means creating a thriving, formal mining sector where artisanal and small-scale miners are incentivised to operate legally through prompt payment and fair treatment, as the government has attempted through initiatives like the US$100 million facility to support the sector.

As Senator Gotora warned, “We can arrest those at the borders, but it will not change anything.” The lorries will continue to roll through Nyamapanda unimpeded, the drones will watch from above, powerless to act, and the nation will continue to bleed—not from a wound on its border, but from a sickness born of neglected priorities and empty stomachs.

The Victoria Falls Stock Exchange (VFEX) is experiencing an unprecedented boom, with its benchmark index surging by a remarkable 45 per cent this year, propelled by a global rally in gold prices and shifting investor sentiment, Mining Zimbabwe can report.

By Rudairo Mapuranga

The dollar-denominated bourse, established in 2020 to attract foreign capital, has seen its market valuation climb to US$1.8 billion by the end of September. This performance is largely powered by a 48 per cent jump in gold prices this year, which has significantly boosted the stocks of mining companies listed on the exchange.

“Their stocks have become a proxy for gold,” said Lloyd Mlotshwa, head of research at IH Securities. “These companies invested well in time to catch the gold rush and have also ramped up production when the timing is right.”

The exchange’s robust performance is further fueled by a shortage of Zimbabwe’s local currency, the ZiG. According to market watchers, this liquidity crunch has driven investors away from the main Harare bourse and towards the dollar-only VFEX platform.

“ZiG liquidity is weak,” stated Mlotshwa. “Investors resort instead to using their dollars.”

The VFEX now hosts 17 listed companies. Recent additions include UK-based Kavango Resources, which became the third gold miner to list on the bourse last month. It joins other key players like Caledonia Mining Corp and Padenga Holdings.

The surge on the VFEX is prompting a portfolio reassessment among asset managers and pension funds, who are now under pressure to increase exposure to the “real value” emerging from the companies listed on the thriving exchange.

Nasdaq-listed Namib Minerals is moving swiftly to raise capital as part of an aggressive expansion strategy for its gold mining operations in Zimbabwe. The company aims to capitalise on strong bullion prices while simultaneously laying the groundwork to develop its copper and cobalt assets in the Democratic Republic of Congo (DRC), Mining Zimbabwe can report.

By Ryan Chigoche

This was revealed in a recent interview where Namib CEO Ibrahima Tall outlined the company’s strategy, stressing the need to accelerate the expansion of its Zimbabwean gold mines. He noted that boosting production now will not only allow Namib to capture value from today’s high bullion prices but also generate capital to fund its future-facing critical mineral projects.

Gold miners worldwide have enjoyed several strong years, with prices reaching record highs amid geopolitical tensions and global economic uncertainty. While many operators are turning their attention to cobalt and copper — metals critical to the energy transition — gold remains the backbone of profitability for most.

For Namib Minerals, Zimbabwe’s gold mines are the anchor of its growth plan. Fresh from its Nasdaq debut through a SPAC merger, the company has gained global visibility and access to capital to accelerate expansion. It already operates its flagship How Mine and has committed US$300 million to restarting the Mazowe and Redwing gold mines, underscoring Zimbabwe’s importance as the foundation of its portfolio.

Tall underscored the urgency of this push, saying the company looks to scale up its Zimbabwean operations quickly to take advantage of favourable gold market conditions.

“We know that all predictions are saying that the gold price will keep going high, very high. Some are already forecasting the gold price to go beyond 4,000 for the next year. Expanding these mines is one of the main reasons we are looking for this investment, because expanding quickly will take advantage of the current gold price. We believe in gold being high for the next at least five to six years. So yes, this is going to be a good opportunity for anyone who would like to invest in gold and who will see a company being there for creating opportunities and value for investors.”

Tall noted that geopolitical instability continues to drive investors toward gold, reinforcing the company’s confidence in sustaining high prices.

Looking further ahead, Namib is preparing to diversify into copper and cobalt production from its assets in the DRC. However, Tall underscored that it is gold — and particularly the company’s Zimbabwean operations — that will anchor Namib’s future.

“Our goal and vision is to reopen two of these [gold] mines, which are actually currently under maintenance, to expand them to make them way bigger, and then expand into the Democratic Republic of Congo and have producing assets in the copper and cobalt sector going forward. Strategically, this is a way for us to balance, in terms of risk. Gold is very trendy right now. We believe in gold. But we also are mindful of the future and being able to contribute to saving the planet for the next generation,” Tall added.

The company’s optimism is shared by major financial institutions. Goldman Sachs projects gold could hit US$3,700/oz in 2025 and possibly test US$4,000/oz by 2026, while J.P. Morgan expects similar momentum. ANZ has also raised its outlook to around US$3,800/oz, citing strong central bank buying and expectations of lower U.S. interest rates.

Dallaglio Investments, the gold mining subsidiary of Padenga Holdings, is projecting a significant surge in gold output in 2026 as ongoing expansion projects come online. For FY2025, the company expects production to remain in line with 2024 levels, Mining Zimbabwe can report.

By Ryan Chigoche

In 2024, Dallaglio produced 2,740 kilograms of gold, a 29% increase from the 2,120 kilograms recorded in 2023.

This growth was driven by higher mill feed grades, improved recovery rates at both the Eureka and Pickstone Peerless mines, and operational efficiencies implemented since late 2023.

The division’s half-year 2025 output of 1,292 kilograms already reflects a 7% year-on-year increase, highlighting the company’s consistent operational performance.

Expansion projects and operational upgrades to drive the anticipated 2026 production leap

Expansion projects across both mines are expected to underpin the next phase of growth. At Pickstone, Phase 3 of the underground project is progressing on schedule, with access to Level 10 established and development work underway.

The project aims to commission hauling and hoisting infrastructure at Level 10.5 by December 2025, enabling more efficient extraction from deeper ore zones. In parallel, Pickstone is set to add a pre-oxidation facility to improve ore leachability in the Carbon-in-Leach (CIL) process, enhancing overall plant recovery. Procurement for this facility will begin in Q3, with commissioning targeted for Q1 2026.

Energy efficiency and sustainability are also central to Dallaglio’s strategy. Preliminary works for a 4.9 MW solar plant at Pickstone were completed in Q2, with commissioning slated for November 2025.

At Eureka Mine, a 5 MW solar project is progressing, with first power expected by Q1 2026. Together, these initiatives are set to improve energy security, reduce reliance on grid electricity, and support the company’s environmental objectives.

Operational improvements are being implemented alongside these infrastructure projects.

At Eureka, evaluation and blasting trials are exploring steeper open-pit slopes, which could allow access to deeper resources and extend the life of the pit, with results expected in Q3.

Meanwhile, Pickstone’s recent drilling campaign indicates a 30% increase in contained ounces compared to previous estimates. An independent review of the updated block model is scheduled for Q3 to confirm these findings and inform the 2026 Mining Plan.

Dallaglio’s expansion and operational plans are supported by a substantial capital investment. For 2025, Padenga Holdings allocated approximately US$30 million to capital projects, with nearly US$29 million directed to Dallaglio’s mining operations.

With underground development, plant upgrades, renewable energy projects, and improved resource access all coming together, Dallaglio expects FY2025 production to remain stable while anticipating substantial growth in 2026. These developments reinforce the company’s position as one of Zimbabwe’s leading gold producers.