Zimbabwe approves second gold refinery as output climbs

Zimbabwe has approved a second gold refinery as the country seeks to support growing production and expand value addition in its mining sector. 

The new facility, which is expected to begin operations in Bulawayo next year, will become only the second licensed gold refinery in the country. It is expected to reduce pressure on state-owned Fidelity Gold Refinery, which currently handles the nation’s gold purchases and refining activities. 

The approval comes as Zimbabwe’s gold industry continues to benefit from stronger global prices and increased investment. Gold remains the country’s biggest source of foreign currency and one of the most important contributors to the economy. 

Government officials are targeting gold output of 50 tonnes in 2026, up from a record 46.7 tonnes delivered in 2025. Higher bullion prices have encouraged both established producers and new investors to expand operations. 

According to officials, the identities of investors behind the Bulawayo refinery will be made public after the project is commissioned. Zimbabwe’s Ministry of Mines and Mining Development declined to comment.

Rising output drives demand for more refining capacity 

The addition of a second refinery comes as several mining companies prepare to increase production over the coming years. More local processing capacity is expected to help reduce bottlenecks and support the government’s push for greater beneficiation. 

Gold prices have risen about 130 percent over the past three years, creating fresh interest in Zimbabwe’s mining industry and encouraging companies to pursue expansion projects.

Major projects set to boost production 

Mutapa Gold Resources, a unit of Zimbabwe’s sovereign wealth fund, plans to double annual production to 220,000 ounces by 2029. The company produced 104,626 ounces in the financial year ended March 2025, although output fell 10 percent from a year earlier because of lower ore grades. 

Meanwhile, Caledonia Mining Corporation is advancing the Bilboes gold project after raising $150 million through a seven-year convertible bond earlier this year.

Bilboes project expected to become largest gold mine 

Production at the Bilboes project is expected to start in late 2028. Once fully operational, the mine is projected to produce about 200,000 ounces of gold annually from 2029 and maintain that level for at least its first decade. 

The second refinery is expected to strengthen Zimbabwe’s gold value chain and support the government’s efforts to keep more processing activities within the country as production continues to increase.