Wallace Ruzvidzo

Zimpapers Reporter

Mutapa Investment Fund has announced that its mining flagship, Kuvimba Mining House, requires US$950 million to scale up operations across gold, lithium, platinum and chrome assets as it seeks to increase operational efficiency, expand its resource base and pursue disciplined growth in all its clusters.

In its annual report and first set of audited financial statements released last week, the sovereign wealth manager said KMH will continue exploration campaigns with a dual focus on identifying new deposits and extending the life of existing mines, with several capital projects already in the development pipeline.

“The company is also exploring alternative energy solutions—including solar power—to improve energy security and operational resilience,” said the annual report.

Within the global context, MIF said the fund’s mineral resources cluster—comprising Kuvimba Mining House (KMH), Defold Mine, Hwange Colliery Company Limited (HCCL) and Tuli Coal—navigated a complex, but opportunity-rich environment.

KMH operates across four key clusters; Gold, Energy Minerals, Platinum Group of Metals, and Bulk Commodities.

As such, MIF said gold’s strong performance played a stabilising role across KMH’s portfolio.

Zimbabwe posted record national gold output of 36,48 tonnes in 2024, a 21 percent increase over the prior year, with KMH’s Gold Cluster contributing around 3,2 tonnes of the total deliveries to Fidelity Gold Refinery.

For the financial year ended March 31, 2025, KMH grew gold production to 3,61 tonnes, up 11 percent year on year, supported by ongoing investment in mine expansions, optimisation of existing operations and enhanced operational discipline.

Beyond KMH, MIF said the broader cluster delivered notable progress.

The Zimbabwe Consolidated Diamond Company (ZCDC), operating under Defold Mine’s Holdings, reported a 12,5 percent increase in diamond output and a 32,8 percent increase in diamond sales.

Kamativi Tin Mines marked a major milestone by commencing lithium production through its investment in Kamativi Mining Company (KMC), which successfully commissioned phases 1 and 2 of its lithium processing plants.

The company also advanced its non-standard tribute arrangement with Bravura, initiating shipments of plant components and preparing the site for civil works ahead of commissioning targeted for 2026.

The HCCL remained under judicial management throughout the year but demonstrated early signs of recovery amid rising domestic and regional demand for coal and coking coal.

“Market demand forecasts remain varied across different minerals; however, the Fund’s diversified asset base provides a natural hedge against commodity specific volatility.

“The operationalisation of the African Continental Free Trade Area (AfCFTA) is expected to broaden regional markets for battery minerals, steel inputs and other commodities, offering new avenues for export growth,” reads the report.

Strategically, MIF said the Fund will continue to prioritise operational excellence, cost discipline, and portfolio optimisation.

Key priorities, said MIF, include advancing exploration, modernising processing infrastructure, scaling viable assets and assessing underperforming operations for potential divestment.

The Fund will also deepen its focus on ESG integration, including safety improvements, environmental stewardship, and community engagement, ensuring the sustainability and long term competitiveness of the mining portfolio.

“Overall, the Mineral Resources Cluster demonstrated resilience and strategic clarity amid a volatile global environment.

“With targeted investments, exploration and funding initiatives, including a sharpened focus on operational sustainability, the cluster is well positioned to create long term national value and reinforce Zimbabwe’s role as a significant mineral producer in regional and global markets,” said the Fund.

MIF said performance in the Energy Minerals cluster was mixed as the collapse in lithium prices adversely affected local production levels and revenue realisations.

“However, KMH continued to advance strategic negotiations for a consortium based special purpose vehicle to develop and process lithium on Sandawana Block A.

“The BOT agreement, expected to reach financial close in 2026, will position KMH to benefit from the anticipated recovery and longer term structural demand for Portfolio Companies lithium,” reads the report.

MIF said Bindura Nickel Corporation remained under administration throughout the period, constrained by persistently low nickel prices and legacy operational challenges that impaired the company’s ability to generate positive cash flows.

The fund said the Bulk Commodities cluster faced logistical and cost challenges driven by an increase in global shipping rates, which affected the competitiveness of Zimbabwean exports.

Zimbabwe Alloys recorded constrained production output due to inconsistent feed supply and recurring power outages, limiting its ability to fully capitalise on market opportunities.

In the PGMs cluster, the Darwendale project remained under care and maintenance as KMH continued to engage potential investors and funding partners for project revival.