Nyashadzashe Ndoro- Chief Reporter
Fidelity Gold Refinery, Zimbabwe's sole gold buyer and exporter, has significantly lowered its incentive threshold for gold deliveries, a move aimed at directly benefiting artisanal and small-scale miners.
Effective immediately, the threshold has been reduced from 20 kilograms to 500 grams per calendar month.
This revision allows ASM operators to qualify for a 5% gold incentive on their deliveries to FGR. Previously, the high threshold primarily benefited gold-buying agents and larger entities, leaving many individual small-scale miners unable to access the incentive.
The Zimbabwe Miners Federation, which represents ASM interests, played a key role in advocating for the change. ZMF CEO Wellington Takavarasha stated that the revised threshold "is a big win for the small-scale mining sector," acknowledging the contributions of miners producing smaller quantities. He added that the previous system was perceived as favouring large buyers and middlemen.
The reduction to 500 grams is expected to boost morale within the ASM sector and encourage increased formal gold deliveries. As ASM contributes a significant portion of Zimbabwe's gold output, this change is anticipated to drive compliance, transparency, and responsible mining practices.
ZMF President Henrietta Rushwaya welcomed the revision, noting that it came shortly after the federation presented its request to FGR. She believes the new incentives will encourage increased gold production, contributing to economic growth and boosting export receipts. Rushwaya expressed confidence that the revised policy will facilitate the ASM sector's achievement of its 40-ton annual production target by 2025.
"A very welcome and positive move indeed, especially after we presented the request to Fidelity barely a month ago on the need to differentiate incentives between producers and buyers at our strategic workshop," Rushwaya stated.
"Coming up with such incentives encourages the ASM sector to produce more gold, thereby contributing significantly to economic growth. Such moves will make us more competitive in terms of production, thereby increasing our export receipts."
"With such a noble gesture, reaching an annual 40-ton production target in 2025 by the small-scale mining sector will be easily attainable."
The government anticipates that increased incentives will formalise more ASM operations and curb gold smuggling through official channels.
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