Tafadzwa Nyikadzino

Mutapa Gold Resources has secured a US$125 million syndicated loan from eight local banks to expand operations at Shamva and Jena mines and increase gold output.

The financing, the first of its kind in Zimbabwe’s gold sector, was signed at the company’s head office on Thursday.

CBZ Bank and Ecobank each committed US$25 million. CABS pledged US$20 million, while ZB Bank and NMB each provided US$15 million. FBC Bank and First Capital Bank contributed US$10 million each, and AFC Commercial Bank committed US$5 million.

Mutapa Gold Resources Chief Executive Officer, Patrick Maseva-Shayawabaya, said the amount raised exceeded the company’s initial US$75 million target.

“The financial services industry in Zimbabwe surprised us. By the time all participating institutions have signed, we will have raised US$125 million, which is US$50 million more than the US$75 million we were targeting,” Maseva-Shayawabaya said.

“Of the US$125 million, US$75 million will be channelled to the Shamva Hill Project and US$50 million will be allocated to Jena,” he added.

Shamva Mine General Manager, Gift Mapakame, said the funding would boost production and support community development through infrastructure and job creation.

“We are moving from a production platform of 0.8 tonnes per year to about 2.4 tonnes. That is an increase of about 6% to national gold output, which is quite significant,” Mapakame said.

The project is expected to create about 1,800 jobs for permanent employees and contractors during construction and operations.

“The biggest beneficiaries of this project will be the community. The bulk infrastructure we are putting in place, including water and power, is being designed not only to support Shamva Mine but also to cater for surrounding communities,” he said.

“We are engaging ZINWA and ZETDC to ensure the infrastructure has built-in capacity so communities around us can also tap into it,” Mapakame added.

Jena Mine General Manager, Alfred Madowe, said the US$50 million allocation would fund exploration and plant upgrades.

“The primary objective is to conduct exploration to year-end. Beyond that, we need to refurbish the plant, which is dilapidated. It is also too small for the capacity we want to achieve, so we need to expand it,” Madowe said.

“Jena Mine has a series of small, single-compartment shafts. We also need to increase the capacity of those shafts,” he said.