en.Wedoany.com Reported - The Zimbabwean government officially approved the construction of a second gold refinery in Bulawayo, the country's second-largest city, on June 17, 2026. The facility is expected to commence operations in 2027, primarily for procuring and processing the nation's growing gold output. This move aims to alleviate the capacity pressure on the state-owned Fidelity Gold Refinery.
Zimbabwe's gold industry is undergoing rapid expansion. Currently, all gold in the country is sold and processed through the state-owned Fidelity Gold Refinery. However, with gold production continuing to rise, government officials indicate that the existing single refinery may be unable to handle the national gold output from 2027 onward. The approval of a second refinery is intended to address the capacity shortfall and provide necessary infrastructure support for expanding output. Information on the investors behind the new refinery has not yet been disclosed, with officials stating it will be revealed when the facility becomes operational.
The Zimbabwean government has set a gold production target of 50 tonnes for 2026, higher than the historical record of 46.7 tonnes achieved in 2025. As of the end of May 2026, gold deliveries to Fidelity Gold Refinery had reached 17 tonnes. The sustained rise in international gold prices is the primary driver of increased investment in the country's gold industry, with prices having risen by approximately 130% over the past three years. The completion of the new refinery is expected to support further production growth. Several large-scale gold mining projects are underway, including Mutapa Gold Resources, under the sovereign wealth fund, which plans to double annual output to 220,000 ounces by 2029. Additionally, Caledonia Mining Corporation is advancing the Bilboes gold project, expected to become Zimbabwe's largest gold mine, with production slated to begin by the end of 2028 and an average annual output of approximately 200,000 ounces starting in 2029.
The establishment of a second refinery is seen as a key step for Zimbabwe to strengthen the gold value chain, reduce processing bottlenecks, and promote mineral beneficiation and value addition. Gold remains Zimbabwe's largest source of foreign exchange earnings and a pillar of the mining industry. As production continues to grow, the expansion of refining capacity holds significant strategic importance.
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