Zimbabwe's gold sector boosted by surge in deliver...

Zimbabwe's gold sector boosted by surge in deliveries from artisanal miners

Nyashadzashe Ndoro

Chief Reporter

Zimbabwe has witnessed a substantial increase in gold deliveries from artisanal and small-scale miners in the second quarter of 2024.

According to the Zimbabwe Miners Federation, the sector has seen a remarkable 55.6% rise in gold deliveries from ASM miners, attributed to a combination of government measures and strategies implemented by Fidelity Gold Refinery.

Key factors contributing to this surge include the regularisation of hammer mills use, the removal of the 15% Value-Added Tax on gold sales, and FGR's effective marketing strategies.

The government's relaxed stance on hammer mills has significantly boosted gold production, while education and awareness campaigns led by the gold mobilisation team have also played a crucial role.

FGR's improved services, including advertising, feedback channels, and extended hours, have further enhanced the gold delivery process. As a result, overall gold deliveries have increased by 28.033% from the first quarter, reaching 7,739.4241 kilograms in the second quarter of 2024.

Small-scale miners have made a substantial contribution to this growth, with their deliveries rising by 55.5988% from the previous quarter to reach 4,515.1660 kilograms. Large-scale miners have also seen an increase, albeit at a slower pace, with their deliveries rising by 2.58314% to reach 3,224.2581 kilograms.

The Zimbabwe Miners Federation has welcomed this development, attributing the success to the collaborative efforts of the government, FGR, and the mining community. Meanwhile, this surge in gold deliveries is likely to boost Zimbabwe's new currency, which is based on gold and foreign currency.

Gold, the country's primary foreign currency earner, was projected to reach an output of 40 tonnes this year, a target that was missed in recent years due to various factors, including power supply challenges.