Zimbabwe licenses second gold refinery in Bulawayo

Zimbabwe has licensed a second gold refinery that is expected to begin operations in Bulawayo next year, marking a significant development in the country's rapidly growing gold sector.

The new refinery will become only the second facility authorised to process gold in Zimbabwe and is expected to ease pressure on the state-owned Fidelity Gold Refinery, which currently serves as the sole buyer and refiner of the country's gold production.

According to officials cited by Bloomberg, the identities of the investors behind the project will only be disclosed once the refinery is commissioned. The Ministry of Mines and Mining Development declined to comment on the development.

The licensing comes as Zimbabwe's gold industry continues to expand, with the government targeting production of 50 tonnes in 2026, up from a record 46.7 tonnes delivered in 2025.

Rising global gold prices have been a major driver of investment in the sector. Gold prices have increased by approximately 130 percent over the past three years, encouraging expansion by both established mining companies and new entrants.

The additional refining capacity is expected to support future growth in production as several major mining projects advance towards implementation.

Among them is Mutapa Gold Resources, a subsidiary of Zimbabwe's sovereign wealth fund, which plans to double annual gold production to 220,000 ounces by 2029.

The company produced 104,626 ounces during the financial year ended March 2025, although output declined by 10 percent from the previous year due to lower ore grades at its operations.

Meanwhile, Caledonia Mining Corporation is progressing development of the Bilboes gold project after securing US$150 million through a seven-year convertible bond issuance earlier this year.

The Bilboes project is expected to become Zimbabwe's largest gold mining operation, with production scheduled to begin in late 2028.

Once fully operational, Bilboes is projected to produce approximately 200,000 ounces of gold annually from 2029 for at least its first decade of operation.

The establishment of a second refinery is expected to strengthen Zimbabwe's gold value chain, reduce processing bottlenecks and support the government's ambitions to increase mineral beneficiation and value addition within the country.

Gold remains Zimbabwe's largest foreign currency earner and one of the key pillars of the country's mining industry, making expansion of refining capacity strategically important as production continues to rise.