Zimbabwe’s state-owned gold miner Mutapa Gold Resources plans to double annual production to 220,000 ounces by 2029, supported by new financing and expansion projects aimed at boosting the country’s top foreign currency earner.
The company said in production reports shared on Friday that output fell 10 percent to 104,626 ounces in the financial year ended March 31, mainly due to lower ore grades.
Despite the decline, the miner said it had secured US$75 million from local banks to fund half of the development costs for its Shamva Hill open-pit project, located about 100 km northwest of Harare.
The project is expected to significantly increase output at Shamva Hill to nearly 80,000 ounces annually, up from about 24,000 ounces currently. Construction is scheduled to begin in August.
Mutapa is also in discussions with foreign lenders to raise additional financing needed to complete the project, reflecting ongoing efforts to expand capacity across its asset base.
The remaining production gains are expected to come from upgrades at the Jena mine, where expansion work is due to begin in late 2026, improved performance at the Freda Rebecca mine, and increased integration of output from artisanal miners into formal production channels.
The company, which is owned by Zimbabwe’s sovereign wealth fund, plays a central role in national efforts to scale up gold production and strengthen foreign exchange earnings.
Zimbabwe is targeting total gold output of 50 metric tons this year, up from a record 46.7 tons in the previous year, as authorities seek to consolidate gains in the mining sector.
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Gold remains Zimbabwe’s most important export commodity and primary source of foreign currency, with earnings reaching US$1.19 billion in the first quarter of 2026, compared with US$579 million in the same period the previous year.
In 2025, gold export revenues totaled US$4.61 billion, accounting for nearly half of the country’s total export earnings of US$9.7 billion.
Analysts say the expansion of state-led mining capacity reflects Zimbabwe’s broader strategy to formalise and scale up mineral production, although they caution that execution risks remain, particularly around financing, energy supply and operational efficiency.
If successful, the planned expansion could strengthen Zimbabwe’s external position and provide a more stable source of foreign exchange in an economy heavily dependent on commodity exports.
