Harare, Zimbabwe – Kuvimba Mining House (KMH) is in the final stages of securing funding for the US$150 million Shamva Hill open-pit gold project, with discussions expected to be concluded by the end of this year. The project, aimed at revitalizing operations at Shamva Gold Mine, is a critical part of Zimbabwe’s broader strategy to boost domestic gold production.
Funding Discussions Near Conclusion
KMH, which operates under the Mutapa Investment Fund (Zimbabwe’s sovereign wealth fund), has been in talks with several funders to finance the open-pit project at Shamva. Engineer Trevor Barnard, KMH’s acting group chief executive officer, confirmed that discussions with potential partners are ongoing. “We should be able to close out that transaction in the next few months,” Barnard said in an interview, indicating that the company expects to finalize the deal before the year ends.
Once the funding is secured, it will be allocated toward essential infrastructure, including processing facilities that will allow Shamva Gold Mine to process ore on-site. Currently, ore from Shamva is transported to KMH’s Freda Rebecca Gold Mine, located approximately 30 kilometers away, for processing.
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Significant Production Potential at Shamva
Shamva Gold Mine is one of Zimbabwe’s oldest mining operations, dating back to 1910. The mine is currently producing 45,000 tonnes of ore per month from its underground operations. KMH hopes that the open-pit project at Shamva will significantly increase gold output. Pre-feasibility and bankable feasibility studies for the Shamva Hill open-pit project were completed last year, setting the stage for the project’s development once funding is secured.
The Shamva open-pit project is part of KMH’s broader strategy to ramp up gold production across its mining cluster, which includes Shamva, Jena, and Freda Rebecca mines. In the financial year ending March 31, 2024, KMH produced 3,240 kilograms of gold, with Freda Rebecca contributing 70%, Shamva 20%, and Jena 10%.
Future Prospects for Gold Production
KMH is confident that the Shamva Hill open-pit project will play a key role in boosting Zimbabwe’s gold output. Barnard emphasized the company’s commitment to increasing production, stating, “We’re definitely looking at developing our mines, specifically the Shamva Hill open-pit project, to significantly increase our total gold production.”
Zimbabwe is keen to strengthen its mining sector as part of its national economic development agenda. The government and mining companies alike are banking on projects like Shamva to not only boost production but also enhance the country’s standing in the global gold market.
With funding discussions nearing completion and development plans moving forward, the Shamva Hill open-pit project is expected to become a major contributor to Zimbabwe’s gold mining industry, increasing both domestic output and the country’s export potential.
