- 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$50 million is what we’re going to allocate to Jena.”
Banking syndicate details
The financing facility was arranged and fully funded by Zimbabwean institutions, marking one of the largest domestic syndications for a mining expansion project in recent years. The breakdown of commitments is as follows:
| Bank | Amount (US$) |
|---|---|
| CBZ Bank | 25 million |
| Ecobank | 25 million |
| CABS | 20 million |
| ZB Bank | 15 million |
| NMB Bank | 15 million |
| FBC Bank | 10 million |
| AFC | 5 million |
| First Capital | 10 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.”
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.”
