KMH Eyes $150 Million Development for Shamva Gold Mine

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KUVIMBA Mining House (KMH) has announced that discussions with potential funders for the US$150 million development of the Shamva Gold Mine’s open-pit project are expected to conclude by the end of this year.

This development is part of KMH’s plans to revitalize operations at the historic mine through the Shamva Hill project.

Operating under Zimbabwe’s sovereign wealth fund, the Mutapa Investment Fund, KMH aims to secure funding not only for the open-pit project but also for the construction of essential infrastructure, including processing facilities that will enable gold to be processed directly at the Shamva site. Currently, ore from Shamva is processed at KMH’s Freda Rebecca Gold Mine, located about 30 kilometers away in Bindura.

In an interview, KMH acting group CEO Engineer Trevor Barnard stated, “We’ve got a number of different developers engaging with us to assist with the funding and development of that project. We expect to finalize discussions in the next few months to determine which funders or developers we will partner with.”

The company completed pre-and bankable feasibility studies for the Shamva Hill project last year, and Barnard indicated an announcement regarding the project is anticipated before the year’s end.

Shamva, one of Zimbabwe’s oldest gold mines, is currently producing approximately 45,000 tonnes of ore per month, a level last achieved in 1910. The mine, part of KMH’s gold cluster alongside Jena and Freda Rebecca, yielded 3,240 kilograms of gold in the financial year ending March 31, 2024. Freda Rebecca accounted for 70% of that production, while Shamva and Jena contributed 20% and 10%, respectively.

Barnard noted, “Shamva is producing similar quantities to its historical outputs. Overall, our gold cluster is generating around 300 kg of gold a month. We are focused on developing our mines, particularly the Shamva Hill project, to significantly increase production.”

Despite global geopolitical challenges that have affected commodity prices, gold has seen a positive trajectory, rising from US$1,900 per ounce in September last year to around US$2,500 currently. Gold is Zimbabwe’s primary export, generating approximately US$3 billion annually, with projections indicating that it could reach US$4 billion by next year.

The mining sector remains a vital component of Zimbabwe’s economy, contributing at least 75% to national exports. In 2023, the country produced 30.1 tonnes of gold, with a target of 35 tonnes for this year—an achievement that would surpass the record high set in 2022. As of August this year, gold deliveries reached 20.7 tonnes, compared to 19.3 tonnes during the same period in 2023.

Source: Herald