HARARE — State-owned Mutapa Gold Resources (MGR) has secured a US$125 million syndicated loan from a consortium of local banks to finance the Shamva Hill Project, a major investment expected to triple gold production at Shamva Mine and boost Zimbabwe’s national output.

The syndicate providing the financing comprises CBZ Bank, Ecobank, CABS, ZB Bank, NMB Bank, FBC Bank, First Capital Bank and AFC Commercial Bank, marking one of the largest locally funded mining transactions in Zimbabwe. Part of the facility will also support expansion at Jena Mines.

Speaking at the loan signing ceremony, Shamva Mine general manager Gift Mapakame said the financing fulfilled a strategy the company had pursued since 2021 and would significantly raise gold production.

“We are basically going to move from a production platform of 0.8 tonnes per year to about 2.4 tonnes, an increment that will contribute about 6 percent to national gold production, which is quite huge,” Mapakame said.

The increase would make Shamva Hill one of the country’s key growth projects in the gold sector.

Mapakame said the investment would also deliver wider economic benefits through infrastructure development, employment creation and improved public services.

“The biggest benefactors of this project will be the community. The bulk infrastructure that 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 that communities around us will also be able to tap into.”

He said the Shamva Hill Project was expected to create about 1,800 jobs through a combination of permanent positions and contractors during construction and operations, while investments would also be made in healthcare, education, electricity and water infrastructure.

Early works are scheduled to begin in September, with full-scale construction expected later this year before commissioning in 2028.

MGR chief executive Patrick Shayawabaya said the banking sector exceeded the miner’s initial funding expectations by raising US$125 million against an original target of US$75 million.

“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 looking for,” Shayawabaya said.

He said US$75 million would be invested in the Shamva Hill Project, while the additional US$50 million would be directed towards expanding Jena Mines.

Under the financing structure, CBZ Bank and Ecobank each committed US$25 million, CABS US$20 million, ZB Bank and NMB Bank US$15 million apiece, FBC Bank and First Capital Bank US$10 million each, while AFC Commercial Bank contributed US$5 million.

Shayawabaya said the financing would underpin production growth across MGR’s mining portfolio, with Shamva Hill forming the centrepiece of the company’s expansion strategy.