Online Reporter
Oliver Kazunga
Senior Reporter
A US$125 MILLION syndicated loan secured by Mutapa Gold Resources is set to increase employment at Shamva Gold Mine by 80 percent to 1 800 jobs, marking a major jobs creation milestone as Zimbabwe accelerates efforts to unlock value from its mineral resources.
Presently, Shamva Gold Mine employs 1 000 people.
The funding for the Shamva Hill Open Pit project will expand the mine’s workforce through direct and contractor positions while increasing gold production by 264 percent from 0,8 tonnes to 2,4 tonnes annually, strengthening the company’s drive towards becoming a US$1 billion-a-year revenue mining business.
Shamva Gold Mine general manager Engineer Gift Mapakame said employment creation would be one of the biggest benefits of the project, with the expansion expected to significantly widen opportunities for workers and surrounding communities.
“Shamva Hill will bring with it a lot of employment opportunities and will be able to take up close to around 1 800 employees, including contractors and other employees that will be running the plant,” he said.
Eng Mapakame said the project would also generate wider socio-economic benefits through investments in critical infrastructure, including water, electricity, healthcare and education facilities for surrounding communities.
“The biggest benefactor of this project would be the community at large.
“The project will come with bulk infrastructure that we are going to put in place to support the operation, which includes water and power,” he said.
Mutapa Gold Resources chief executive officer Mr Patrick Maseva-Shayawabaya said the syndicated facility had provided the company with the financial capacity to implement its expansion plans and accelerate growth.
“Few weeks ago, on this very ground, when Mutapa Gold Resources indicated that we are on a journey to move from being a 300kg producer of gold to a producer of 570kg within a three-year period, that journey started with energy today,” he said.
“The financial services industry of Zimbabwe has given us the wherewithal to implement those plans that we so eloquently spoke about.
“We thank those that are participating because they have given us a shot in the arm to develop this business.”
The syndicated facility, which was arranged and funded entirely by seven local financial institutions, exceeded Mutapa Gold Resources’ initial requirement of US$75 million after banks mobilised US$125 million.
The additional US$50 million will be channelled towards expanding production at Jena Mine, where output is expected to rise from about 45kg to 100kg.
“When we went into the market, we were looking for US$75 million which was going to be the first tranche for the financing of the Shamva Hill project.
“The financial services industry in Zimbabwe surprised us. The amount that we have raised is US$125 million, US$50 million more than US$75 million,” Mr Maseva-Shayawabaya said.
CBZ Capital representative Mr Patrick Matute said the transaction represented more than project financing, as it was laying the foundation for the creation of a billion-dollar business.
“We’re witnessing more than the financing of a project. We’re witnessing the making of a billion-dollar business.
“From 115 000 ounces to 200 000 ounces and beyond, Mutapa Gold is on course to become a billion-dollar company,” he said.
Construction of the Shamva Hill Open Pit project is expected to begin later this year, with commissioning targeted for 2028.
The development is expected to strengthen Zimbabwe’s gold production capacity, create thousands of economic opportunities and deepen the role of domestic capital in funding transformative projects.
