MUTAPA Gold Resources says local banks are expected to finance about half of a US$152 million expansion project at Shamva Hill that will triple monthly gold production at the mine by 2028.
Chief executive officer Patrick Maseva-Shayawabaya said this week the project was nearing financial close and would significantly increase output at the group’s Shamva operations.
“The Shamva Hill project is our principal project at this point in time. We are very close to finalising funding for the project. It will cost US$152 million, about half of which will come from local banks,” Maseva-Shayawabaya said.
“That investment will result in Shamva’s production increasing from 65kg a month to 200kg a month by 2028.”
He said front-end engineering design work was expected to be completed in June, with construction set to begin in July.
“By the end of 2028, we will have a large open-cast mine producing 2,5 million tonnes of ore and an equally large processing plant to handle that volume,” Maseva-Shayawabaya said.
The expansion comes as the state-owned gold producer reported strong financial growth driven by higher bullion prices.
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Maseva-Shayawabaya said revenue increased from US$138 million in the year to March 2024 to US$450 million in the year to March 2026.
“Likewise, profit before tax increased from US$42 million to US$157 million in the year to March 2026,” he said.
“Our tax contribution to the fiscus for the year to March 2026 amounted to US$44 million. Net profit after tax increased from US$35 million to US$138 million.”
He said the group directly employed just under 2 700 workers, while another 1 300 jobs were supported through contractors.
“In total, more than 4 000 people rely on our operations for employment and their livelihoods,” Maseva-Shayawabaya said.
The company is also working with 800 artisanal miners.
Maseva-Shayawabaya said gold production for the year to March 2026 declined to 3,3 tonnes due to lower ore grades, but output was expected to recover.
