Story by Yolanda Moyo
ZIMBABWE’S gold sector is experiencing a major investment surge, with more than US$1.6 billion committed towards mine expansion, exploration and rehabilitation as confidence in the industry strengthens and production capacity expands.
The investment inflows are reshaping the mining landscape, with capital directed towards operational upgrades, exploration projects and the revival of previously closed assets.
According to Chamber of Mines Chief Executive Officer, Mr Isaac Kwesu, the sector is witnessing significant capital deployment, including plans linked to the revival of closed operations such as RioZim entities.
“A significant portion of funds has been spent, approximately US$1.6 billion has been spent in various projects, ramp-up, as well as maintenance. The gold sector is expanding, there is huge capital outlay in the pipeline for massive projects in expansion, and others are equally spending on exploration. But by and large, we have also seen some previous closed mines coming on board. And we expect also some mines that have stopped production, specifically the RioZim entities, also require significant capital, more than half a billion. If they have to come to the scale of operation that they used to. We have quite a significant amount of money that has been spent in the gold sector. Exploration is really the engine for mining. We need to discover new ores, new assets. Most of the existing assets that are currently being mined are from ancient works, and their lifelines are coming to an end. And we need continuity to ensure that we replace the old with new mines.
“Exploration is very critical. Zimbabwe, just like our peers in the region, needs to compete for capital, and we need to support junior mining to ensure that we do the much-needed work for exploration. The government also needs to issue new EPOs, and that would support really harnessing new assets from virgin lands. We need to create an enabling environment. The issuance of EPOs is very critical. At the same time, the operations of stock markets, because exploration requires risk capital, because it is based on probabilities. So, you cannot bet, I mean, tax or other known incomes, but we have to support the works of junior miners. These are the ones that undertake the much-needed risk in exploration,” Mr Kwesu said.
While large-scale capital inflows are driving expansion, stakeholders say the long-term growth of the sector also depends on strengthening exploration and creating an enabling environment for investment.
Attention is also shifting to the formalisation of artisanal and small-scale miners, who continue to play a significant role in national gold output and foreign currency earnings.
President of the Zimbabwe Miners Federation (ZMF), Ms Henrietta Rushwaya, said formalisation is transforming the sector and unlocking economic opportunities.
“Once small-scale miners have been formalised, it will also go a long way insofar as the Government’s initiatives of planning for the country’s future are concerned. Small-scale miners are able to go and borrow money from the banks. Small-scale miners are now able to own property. Gone are the days where Government would say, ‘We cannot do this for you because your sector is not organised.’ Gone are the days where banks would not offer us any loans because they would say we did not have any collateral as small-scale miners. But look at where we are today in the Second Republic. Small-scale miners have become so productive to the extent that the Government is also depending on us in terms of production and in terms of the country’s Gross Domestic Product.
We have become the single biggest foreign currency-generating entity. And our export receipts have actually increased in leaps and bounds as a sector. And by so doing, this will now actually create more jobs in the rural areas. Create more funding opportunities for people who have been in the isolated and looked-down-upon sector over the years. We were a downtrodden sector because of our malpractices insofar as issues to land reclamation were concerned, insofar as issues to do with responsible mining were concerned. But now we are saying we have started to work hand-in-hand with the Government. We have started to work hand-in-hand with banks. We have started to work hand-in-hand with the regulators of policies, be it the Environmental Policy Management through EMA, be it the tax revenue collectors, which is ZIMRA, just to mention a few. By so doing, this will also increase Zimbabwe’s Gross Domestic Product,” she said.
Mutapa Investment Fund General Manager, Mr Tirivashe Vere, said efforts are underway to improve efficiency, safety and productivity within the small-scale mining sector.
“Mutapa Gold Resources is actively moving to equip and formalise them. By directing miners to known geological sites, offering exploration aid, and providing training through the School of Mines, the company aims to eliminate waste and boost safety. Advanced tools like 3D mapping and ground-penetrating radar are being deployed to monitor underground voids, while strategic ‘twinning’ partnerships ensure miners can access processing facilities and get a fair, equity-driven price for their output,” he said.
President of the Association of Mine Surveyors of Zimbabwe, Mr Stewart Gumbie, said formalisation will unlock access to finance, equipment and compliance support.
“When we do formalise this sector, we are going to ensure that their production is greatly improved. They become bankable, they become they then gain access to various sources of funding, and they gain access to capital and equipment. Formalising is going to increase the production and productivity of this sector. And as mine surveyors, through the Association of Mine Surveyors, we are custodians of mineral accountability. We want to assist these small-scale miners in becoming compliant. We assist them with various services to make sure that they quickly comply and become more productive and become registered entities,” he said.
With over a billion dollars already invested and reforms deepening across both large-scale and small-scale mining, Zimbabwe is positioning its gold sector as a key pillar of economic transformation, export growth and future industrial competitiveness.
