MUTAPA Gold Resources (MGR) requires an estimated US$250 million to fund a life-of-mine expansion programme and has begun raising capital through a US$75 million local debt syndication, the first phase of a broader financing strategy aimed at significantly increasing production.
Speaking during a Public Accounts Committee visit to Freda Rebecca Gold Mine on Monday, Mutapa Investment Fund (MIF) deputy chief investment officer Enerst Denhere said the expansion drive was central to efforts to boost gold output, deepen beneficiation and strengthen the country’s industrial base.
Freda Rebecca is a key subsidiary of MGR.
“Mutapa Gold Resources requires about US$250 million for the life of mine expansion, and we are currently working on a local debt syndication of US$75 million as a start,” Denhere said.
“Equally important to these initiatives is beneficiation and value addition. Mutapa Gold Resources is committed to moving up the value chain by strengthening local processing, refining, and downstream linkages.”
He said the strategy was aligned with the National Development Strategy 2 (NDS2), which prioritises industrialisation and local content development.
According to Denhere, expanding local processing capacity would build domestic capabilities, create higher-value jobs and deepen skills development.
By retaining more value within Zimbabwe, he said, the initiative would broaden the tax base, support local manufacturing and stimulate new enterprises across the gold value chain.
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“Cost competitiveness underpins our ability to deliver these outcomes sustainably,” he said.
“Through productivity and cost reduction initiatives, we are optimizing supply chains, improving energy efficiency, and leveraging economies of scale so our operations remain viable across commodity cycles.
“A competitive cost base strengthens national economic resilience by safeguarding employment, sustaining export earnings, and ensuring that the mining sector continues to contribute reliably to growth in public revenues. Finally, none of this is possible without strong institutions.”
Freda Rebecca produced 2,2 tonnes of gold in 2025, accounting for about 7% of Zimbabwe’s total gold output.
Denhere said MGR’s five-year strategy was to build a resilient, competitive and sustainable gold business capable of delivering measurable national impact.
The group is currently producing about 300kg of gold per month, with output rising to 340kg in March.
“We are projecting to produce 570 kgs from 2028 through certain mine expansion initiatives. Within Mutapa Gold Resources, Freda Rebecca accounts for about 70% of this total production,” he said.
“Our strategy begins with enhancing gold production through disciplined operational excellence and targeted investment across our mining portfolio.”
Denhere said MGR was expanding geological programmes to unlock new resources, extend the life of its assets and de-risk future production.
“For 2026, a capital budget in excess of US$12 million has been allocated for exploration across Mutapa Gold Resources entities, aiming to achieve a life of mine of 10 years for each operation,” he said.
“In line with NDS2's emphasis on resource mobilisation and capital investment-led growth, data-driven exploration, and strategic partnerships, we will convert Zimbabwe's mineral endowment into bankable reserves, crowding in capital, stimulating regional development, and supporting long-term economic stability.”
MIF is also strengthening governance systems and processes to enhance transparency, accountability and risk management in line with NDS2’s governance and anti-corruption objectives.
Denhere said robust governance was critical to investor confidence, operational integrity and the responsible stewardship of Zimbabwe’s mineral resources.
He added that sound governance would ensure that the benefits of gold production — including jobs, tax revenues, community development and foreign currency earnings — are realised efficiently and equitably.
Other gold mines under MGR include Elvington Mine, Shamva Mine and Jena Mines.
