At a Glance
- Namib Minerals plans February restart of Redwing mine, targeting record gold prices.
- Redwing holds 2.5 million ounces, anchoring a $300 million Zimbabwe investment.
- Policy stability and high bullion prices revive Zimbabwe’s gold mining sector.
Namib Minerals, a growing African mining company, is moving to restart production at its mothballed Redwing gold mine in Zimbabwe, betting on record-high gold prices and a more supportive mining policy environment to fuel growth across its African portfolio.
The company plans to resume operations at Redwing in February, marking a major milestone in a broader $300 million mining investment in Zimbabwe, according to Chief Executive Officer Ibrahima Sory Tall.
Redwing is the largest asset in Namib Minerals’ Zimbabwe gold portfolio, with an estimated 2.5 million ounces of gold resources, positioning it as a cornerstone of the company’s production strategy.
Historic gold mines anchor growth strategy
The portfolio also includes the operating How Mine, which has produced nearly 2 million ounces of gold since 1941, underscoring the long-term potential of Zimbabwe’s established gold belts.
“Following the completion of technical studies, development work and infrastructure rehabilitation, we are targeting annual gold production of approximately 300,000 ounces from Redwing alone,” Tall said in a statement.
The output would form part of Namib Minerals’ combined production plan across three gold assets in Zimbabwe, significantly lifting the company’s near-term gold output.
Beyond restarting production, Namib Minerals is preparing an aggressive gold exploration program aimed at doubling Redwing’s resource base to about 5 million ounces over the longer term.
The company also owns the Mazowe gold mine, another mothballed asset that produced 1.36 million ounces between 1962 and 2018, providing additional optionality as market conditions improve.
Fiscal stability restores confidence in gold mining
Zimbabwe’s gold mining sector is gaining renewed momentum after years of disruption caused by currency instability and shifting fiscal policies. Higher global gold prices, which remain near record levels, are improving project economics and encouraging miners to bring idle assets back into production.
Policy signals from Harare have also helped restore investor confidence. In December, Zimbabwe reversed plans to double its gold royalty rate to 10% following pushback from miners and industry groups.
Under the revised framework, the gold royalty rate remains at 5%, only rising if bullion prices exceed $5,000 per ounce. Large-scale producers, including Caledonia Mining, had warned that a higher royalty regime would undermine profitability and delay expansion projects.
Caledonia said it welcomed the policy reversal and the decision to drop proposed changes to the tax treatment of capital expenditure, calling them signs of stronger government support for the mining industry.
African mining play eyes U.S. investors
Namib Minerals is positioning itself for a NASDAQ listing under the ticker NAMM, as it seeks to scale up production and attract international capital.
While its current focus remains on gold production and exploration in Zimbabwe, the company has also flagged future interests in copper and cobalt projects in the Democratic Republic of Congo, aligning with global demand for critical minerals.
With significant gold resources, restarted mines, and a growing African workforce, Namib Minerals aims to emerge as a key African gold producer, leveraging Zimbabwe’s mining revival to drive long-term growth and shareholder value.
