Zimbabwe wealth fund seeks $250m to expand gold mining operations

Zimbabwe’s state owned sovereign wealth fund, the Mutapa Investment Fund, is seeking to raise $250 million to expand its gold mining operations as the country pushes to increase mineral exports and shore up foreign currency earnings.

The fund said it is already in talks with local lenders to secure financing for expansion projects under its mining subsidiary, Mutapa Gold Resources, according to African Economic Inc.

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Ernest Denhere, deputy chief investment officer at Mutapa Investment Fund, told lawmakers in Bindura that the fundraising drive would begin with a $75 million local debt syndication.

“We are currently working on a $75 million local debt syndication as a start,” Denhere said.

The fund is betting heavily on gold as Zimbabwe seeks to strengthen one of its most important export sectors amid continued economic pressure and currency instability.
Mutapa said its mines produced 340 kilograms of gold in March and that it aims to increase monthly production to 570 kilograms by 2028 as operations expand.

The sovereign wealth fund produced 3.6 tonnes of gold last year, although output has eased to 3.3 tonnes so far this year. All gold produced by the group is sold to Fidelity Gold Refinery, Zimbabwe’s state owned gold buyer and refiner.

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Denhere did not identify the financial institutions involved in the fundraising talks.
Mutapa Gold Resources currently holds five mining claims across Zimbabwe covering about 52,000 hectares, positioning the company among the country’s significant state linked gold producers.

The planned expansion comes months after the sovereign wealth fund completed a major restructuring of its mining portfolio in December. Assets previously managed under Kuvimba Mining House were reorganised into separate divisions aimed at improving efficiency and oversight.

The restructuring created units including Mutapa Gold Resources, Mutapa Base Metals, Mutapa Energy Minerals, Mutapa Platinum Group and Mutapa Frontier.

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Zimbabwe has increasingly leaned on gold exports to generate foreign exchange as the government works to stabilise the economy and boost mineral production, with mining remaining one of the country’s most critical revenue sources.