State-owned Mutapa Gold Resources is preparing to embark on a US$152 million expansion programme centred on the Shamva Hill Project, a move expected to more than double the company's annual gold production and strengthen Zimbabwe's drive to increase mineral export earnings.
Construction of the flagship project is scheduled to begin next month at Shamva, about 100 kilometres northwest of Harare, where the company plans to develop a new open-pit mine and a processing plant capable of treating two million tonnes of ore annually.
The investment represents one of the largest mining projects currently being undertaken by a state-owned enterprise and forms part of Mutapa Gold's strategy to increase monthly gold production to about 570 kilogrammes by the end of 2029.
Chief Executive Officer Patrick Maseva-Shayawabaya said the company had already secured half of the required funding from local lenders.
"We initially approached the market seeking US$75 million. A consortium of four banks came together and raised the amount," he said.
The financing package has been arranged by CBZ Bank, Ecobank, CABS and NMB Bank, while discussions are continuing with international financiers to secure the remaining capital required for the project.
Maseva-Shayawabaya said interest from the domestic banking sector had exceeded expectations.
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"Since then, other banks have indicated interest in participating, meaning we could ultimately raise as much as US$100 million from local financial institutions," he said.
Beyond increasing mining capacity, the project is expected to resolve one of Shamva Mine's biggest operational constraints.
At present, Shamva produces about 66 kilogrammes of gold each month, but its ore must be transported to Freda Rebecca Mine for processing because the mine lacks its own processing plant. Once the new facility is commissioned, Shamva's monthly production is expected to rise to around 200 kilogrammes.
The expansion is also expected to unlock additional production at Freda Rebecca.
With Shamva processing its own ore, Freda Rebecca's 2.8-million-tonne processing plant will be freed to handle more ore from its own mine, allowing monthly production there to increase from 204 kilogrammes to about 270 kilogrammes.
The Shamva Hill Project is one component of a broader expansion programme that also includes a US$15 million first-phase upgrade at Jena Mine, scheduled to commence during the fourth quarter of 2026.
"The picture for us is that, by the end of December 2029, we will be producing around 570 kilograms of gold per month," Maseva-Shayawabaya said.
If achieved, annual production would increase to approximately 220,000 ounces, more than double the 104,626 ounces produced during the year ending March 2026.
The expansion comes as Zimbabwe continues relying on gold as its largest foreign currency earner. Gold deliveries reached a record 46.7 tonnes in 2025, generating US$3.76 billion in export earnings, with small-scale miners contributing nearly three-quarters of total deliveries.
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