Oliver Kazunga
Senior Reporter
A CONSORTIUM of 11 Zimbabwean banks has committed US$160 million towards Mutapa Gold Resources’ US$240 million Shamva Hill expansion project, marking one of the largest local mining investments in recent years and signalling a growing domestic capacity to fund large-scale productive ventures.
The financing, which rose from an initial US$110 million syndicated facility announced in July, will fund the project through to approximately September next year.
Mutapa is continuing negotiations with external financiers to secure the remaining US$80 million.
The development represents a shift towards domestic financing of strategic mineral projects, potentially reducing reliance on offshore capital, retaining financial value within Zimbabwe, and strengthening the role of local banks in funding long-term economic growth.
Mutapa Gold Resources chief executive, Mr Patrick Maseva-Shayawabaya, disclosed the financing milestone, while presenting the company’s third-quarter and nine-month operational and financial performance in Harare, last week.
“We have so far raised US$160 million from the local banks, and that will cover our requirements for this project until about September next year, by which time we expect to have concluded negotiations that are currently underway with external financiers,” he said.
“We have now started this project and we expect that we will complete the project by December 2028 at a total cost of US$240 million.”
Participating financial institutions include CBZ Capital, Ecobank, CABS, NMB Bank, ZB Bank, and FBC Bank. The Shamva Hill Open Pit Project involves developing a 2,4 million tonne-per-annum open-pit mine and processing plant. Production is expected to rise from the current output of about 25,000 ounces of gold a year to 80 000 ounces once fully operational, adding 55 000 ounces to annual production.
Given that gold is Zimbabwe’s largest mineral foreign currency earner, the expansion is expected to boost export receipts.
“An additional 55 000 oz per annum at current international prices translates into over US$130 million in incremental export earnings annually once fully operational,” Mr Maseva-Shayawabaya said, adding that tripling output would have broader macroeconomic benefits as gold accounts for more than 40 per cent of Zimbabwe’s mineral exports.
The project is expected to create approximately 1 800 jobs, including contractor positions, while surrounding communities are set to benefit from investments in bulk water supply, electricity infrastructure, healthcare facilities, and education services.
Mr Maseva-Shayawabaya stated that mobilising US$160 million from domestic banks reflected growing confidence in Mutapa’s operations. The company’s production performance has strengthened over the past year, providing a foundation for the expansion programme.
Mines and Mining Development Minister, Dr Polite Kambamura, welcomed the willingness of domestic institutions to fund large mining projects, stating it reflected improved confidence in Zimbabwe’s investment climate.
“The confidence exhibited by local banks to fund big mining projects such as the Mutapa Gold, Karo Platinum, Caledonia (Bilboes) projects and many other projects, shows that the country has derisked, and improved on predictability and more attractive to investments,” he said.
Dr Kambamura added that the expansion drive was supported by favourable commodity prices and the prevailing investment climate.
“The aggressive expansion drive, and positive review of production targets is buoyed by bullish market prices and the current positive investment climate prevailing in the country,” Dr Kambamura said.
