Natalie Nyathi
Matabeleland is experiencing a notable increase in foreign investment as firms ramp up gold exploration and development in the region. This trend is driven by record-high global gold prices and the area’s rich, under-explored greenstone belts, making it a hotspot for both local and international mining companies.
Matabeleland plays a crucial role in Zimbabwe’s gold production, with both historical significance and untapped mineral resources. The region’s geological formations, especially the greenstone belts, contain some of the most promising gold deposits in Southern Africa. Ongoing artisanal mining in the area highlights its potential, while foreign firms like Canada’s Pambili Natural Resources, Caledonia Mining, and Kavango Resources are increasingly interested.
Pambili has announced a C$1 million (US$728,359) capital raise to speed up activities across its gold assets in Matabeleland. This funding shows growing investor interest in Zimbabwe’s minerals, particularly in Matabeleland North and South, where historical production data meets new geological findings. Pambili CEO Jon Harris stated:
“Given current gold prices and good historic project fundamentals, we are excited about the potential at London Wall. This financing will allow us to rehabilitate the historic East Shaft and complete the survey of the old development drives. Our aim is to commence pilot production as soon as possible to assess the mine’s commercial viability.”
The London Wall project is seen as a potentially high-margin operation, benefiting from surface mineralization and access to necessary infrastructure.
Analysts believe Pambili’s approach reflects a growing focus on Zimbabwe’s largely under-explored greenstone formations. According to The Herald, Elizabeth Maphosa, a mining sector analyst, noted:
“What Pambili is doing is textbook strategy. You cannot mine what you have not found. Exploration is not a luxury; it is a strategic imperative.”
She added that companies like Pambili are bringing new life to old claims and boosting confidence in Zimbabwe’s geology. Every dollar spent on exploration helps long-term production, employment, and foreign currency earnings.
This investment surge coincides with historic highs in global gold prices, which hit US$3,500 per ounce in April. Analysts at Goldman Sachs predict further increases, with prices possibly reaching US$3,700 per ounce by year-end. Maphosa mentioned:
“High global gold prices are a game-changer for Zimbabwe. They not only boost margins for producers but also improve project economics for exploration-stage assets that previously sat undeveloped.”
She stressed the importance of Zimbabwe incentivizing and de-risking exploration, especially for smaller firms that may face higher risks but offer significant rewards.
Caledonia Mining has also reported encouraging results from its exploration at Blanket Mine in Gwanda. Recent drilling has shown high-grade mineralization, exceeding expectations. CEO Mark Learmonth said:
“Our ongoing drilling campaign continues to demonstrate encouraging results, further improving our confidence in the Blanket Mine mineral resource and pointing to additional future mineral resource growth.”
Kavango Resources has revealed significant gold intercepts at its Hillside project in Filabusi, indicating the potential for commercially viable deposits. Their recent drilling campaign produced promising results, with 41 significant intercepts exceeding 1g/t.
The gold mining industry is essential for Zimbabwe’s economic development, accounting for over 30% of the mining sector’s GDP. Its contribution to mineral exports has increased from 27% in 2020 to 43% in 2024. The sector also provides jobs for over 1.5 million people directly and indirectly involved in gold mining.
Zimbabwe’s year-to-date gold deliveries have reached 15.8 tonnes, the highest on record, despite a slight decrease in May. Small-scale miners remain crucial, contributing significantly to overall production. As the country targets a minimum of 40 tonnes this year, firms like Kuvimba Mining House and Padenga Holdings are expected to play key roles, with projections indicating continued growth in gold output.
Overall, the increase in foreign investment in Matabeleland’s gold sector represents a positive shift for Zimbabwe, positioning the country to take advantage of its mineral wealth amid favorable global market conditions.