PAC tour of Freda Rebecca spotlights Mutapa Gold Resources growth plans and stronger parliamentary oversight

PAC tour of Freda Rebecca spotlights Mutapa Gold Resources growth plans and stronger parliamentary oversight
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Bindura – Parliament’s Public Accounts Committee (PAC) has taken its oversight work to Freda Rebecca Gold Mine in Bindura, where lawmakers assessed the scale of operations at Mutapa Gold Resources (MGR) and received briefings on exploration, expansion funding and governance issues affecting Zimbabwe’s sovereign wealth-backed gold portfolio.

MGR is the gold mining arm of the Mutapa Investment Fund, Zimbabwe’s sovereign wealth fund. It was formally created in December 2025 after Mutapa restructured mining assets into commodity-specific units. MGR’s assets include Freda Rebecca, Shamva, Jena and Elvington mines, along with about 52,000 hectares of mining claims.

The May 2026 visit was PAC’s fourth verification and oversight tour of Mutapa Investment Fund entities. PAC chairperson Hon Caston Matewu told management that Parliament’s oversight mandate is provided for under Sections 119 and 299 of Zimbabwe’s Constitution. The committee said it wanted to understand how public resources are being managed, while tracking whether the mining strategy being pursued can deliver growth for the broader economy.

Matewu said lawmakers were encouraged by what they heard about production targets and expansion planning. “Gold is very significant in terms of being an economic enabler, and what we want to see as Parliament is growth. We want to see more tonnage and more gold being produced so that it can have a ripple effect on the economy,” he said during the tour.

He added: “The roadmap that we have heard from Mutapa is quite impressive, and they are looking to have more output of gold by 2028, and they seem to have a strategy to do so, and we are happy as Parliament with the route they are taking.”

Although the PAC is still to compile and table a comprehensive report of its findings, members indicated they were impressed by the sheer magnitude of the operations at Freda Rebecca and across the wider Mutapa Gold Resources portfolio, describing the visit as useful in appreciating how the state-backed mining assets are being run and expanded.

According to figures shared during the engagements, MGR produced 2.2 tonnes of gold in 2025, contributing about 7% of Zimbabwe’s total output. Monthly production averages about 300kg, with a record 340kg achieved in March 2026. The company is targeting 570kg per month by 2028 through brownfield expansion and optimisation projects.

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Mutapa Investment Fund deputy chief investment officer Ernest Denhere told PAC that MGR has set aside more than US$12 million for exploration in 2026, as part of a plan to push each operating asset towards a minimum 10-year life-of-mine. “We are expanding geological programmes to unlock new resources, extend the life of our assets, and de-risk future production,” Denhere said. “For 2026, a capital budget in excess of US$12 million has been allocated for exploration across Mutapa Gold Resources entities aiming to achieve a life of mine of 10 years for each operation.”

Denhere also outlined the scale of funding required for longer-term projects. “Mutapa Gold Resources requires about US$250 million for life of mine expansion and we are currently working on a local debt syndication of US$75 million as a start,” he said. Management said this investment programme is tied to plans for stronger processing and value addition, as Zimbabwe pushes beneficiation in the mining sector.

During the oversight session, MPs questioned management on a range of issues, including the Treasury Bill facility—reported in the US$1.6 to US$1.9 billion range—linked to the earlier acquisition of a 35% stake in Kuvimba Mining House, the predecessor structure before assets were reorganised. MPs sought clarity on how and when public debt would be serviced and whether mining returns could sustain the obligations.

Denhere said the Treasury Bill obligations sit with the Treasury, while the consolidated asset fair value has grown from about US$3.5 billion at acquisition to around US$4.5 billion today, against a present-value acquisition cost of US$1.1 billion. He added that with gold prices exceeding US$5,000 per ounce, the outlook for debt serviceability is stronger than when the assets were acquired.

Another area of interest was the audit trail. MPs queried why audited financial statements for Mutapa Gold Resources were not yet appearing under that name in the Auditor General’s reports. Management said the entity was only established in December 2025, and committed to publishing audited financials within six months of year-end in line with IMF Staff Monitoring Programme requirements. The financial year has also been realigned from April–March to a December year-end, to match the reporting calendar of the parent fund and Government.

PAC also heard of improved financial performance. Chief executive Patrick Maseva-Shayawabaya reported that revenue rose from US$138 million (year to March 2024) to US$415 million (year to March 2026). Profit before tax was reported at US$157 million, with net profit after tax at US$138 million. Management said a US$10 million dividend was paid to the then-parent Kuvimba in the previous financial year, and that a board meeting scheduled for end-May 2026 would consider the current year’s dividend.

Denhere told MPs Mutapa’s approach prioritises growing the tax base and reinvestment during a capital-intensive period, rather than extracting high dividends at the expense of expansion and longer mine life.

On compliance and operational controls, management confirmed that gold is sold to Fidelity Gold Refinery, with no direct exports by the mines. MPs also questioned the company on ZIMRA and NSSA obligations, inventory verification, mine closure provisions under IAS 37, and the reporting framework used. Management said it reports under IFRS.

The committee also reviewed an “experimental” artisanal mining arrangement at Elvington Mine, where about 800 artisanal miners have been allocated plots. Under the model, the company provides equipment and personal protective equipment at its own cost, miners keep 90% of free gold recovered, while MGR retains 10% plus residual ore for processing. Management said it is a commercial arrangement, with revenues disclosed on the income statement. The company said the model is being extended to Jena Mine and is under assessment for Phoenix Prince Mine.

Fidelity Gold Refinery, which buys and processes all of MGR’s output and also falls under the Mutapa Investment Fund, was also discussed as part of PAC’s broader oversight. Fidelity reported record production of 46.7 tonnes in 2025 against a 40-tonne target, and set a 50-tonne target for 2026. Management said artisanal miners now account for 60% of all deliveries, and Fidelity is pursuing LBMA accreditation, with 95% of requirements reported as met. Fidelity’s financial statements were said to be audited and current to 31 December 2025, with a clean audit opinion.

For Mashonaland Central—especially Bindura and Shamva—lawmakers said the focus is to see sustained production, responsible growth and measurable economic benefits from state-backed mining. Matewu said the engagement has helped MPs participate more meaningfully in parliamentary debates about the Mutapa Investment Fund’s role. “At least we are now well informed about what is being done by Mutapa, so when we go back to Parliament and debate, we know how this investment is actually helping these companies,” he said.

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