Namib Minerals is set to restart operations at its Redwing gold mine in eastern Zimbabwe in February, marking a major step in a broader investment drive in the country’s mining sector.
The mine, which has been dormant for several years, forms part of a wider US$300 million investment programme by the company in Zimbabwe. Speaking on Friday, Namib Minerals chief executive Ibrahima Sory Tall said preparations to reopen the mine were now complete.
Redwing holds an estimated 2.5 million ounces of gold, making it the largest resource in Namib Minerals’ Zimbabwean portfolio. The company also operates How Mine, one of the country’s oldest gold producers, which has yielded close to two million ounces since operations began in 1941.
Following the completion of technical studies, development work and infrastructure upgrades, the company is targeting annual production of around 300,000 ounces of gold from Redwing alone. The output will form part of a wider production strategy across three mining assets in Zimbabwe.
Namib Minerals said it will also begin a new exploration programme at Redwing, with the long-term aim of doubling the mine’s resource base to about five million ounces.
In addition to Redwing and How Mine, the company owns the Mazowe mine, another previously operational site that produced around 1.36 million ounces of gold between 1962 and 2018.
Zimbabwe’s gold sector has struggled for years with currency instability and shifting policy decisions, which affected the viability of several large-scale mining operations. However, miners are now beginning to expand output, supported by record-high global gold prices.
Earlier this month, the Zimbabwean government reversed plans to double the gold royalty rate from five percent to ten percent, following strong objections from miners and industry bodies. Under the revised arrangement, the royalty rate will remain at five percent and will only increase if gold prices rise above US$5,000 an ounce.
Large producers, including Caledonia Mining Plc, had warned that higher royalties would threaten profitability and delay planned expansion projects. Caledonia said on Friday that it welcomed the government’s decision, describing it as a positive signal of support for the mining sector.
