Zim’s Gold Industry Glows in January with 25% Prod...

Zim’s Gold Industry Glows in January with 25% Production Increase

Philemon Jambaya

Zimbabwe’s gold mining industry defied rainy January conditions and surged forward, with deliveries to Fidelity Gold Refinery increasing by a remarkable 25% compared to the same period last year. According to statistics compiled by the refinery, this translates to over two tonnes of gold delivered in January, compared to less than a tonne in 2023.

This positive development can be attributed to several factors. Firstly, miners demonstrated resilience by scaling up production despite challenging weather. Secondly, they adhered to government directives promoting responsible and sustainable mining practices during the rainy season.

Interestingly, small-scale, or artisanal, miners are leading the charge, contributing a significant 60% of the overall production. This sector has seen considerable growth, likely fuelled by the current favourable gold prices hovering around US$2 000 per ounce. Large-scale mining entities, bolstered by recent recapitalisation efforts, account for the remaining 40%.

The Chamber of Mines emphasises the crucial role gold plays in the Zimbabwean economy, being the country’s primary foreign currency earner. Recognising this importance, the central bank has pledged to rebuild the nation’s gold reserves, aligning with global best practices. To achieve this, they implemented a new policy where miners contribute half their royalties in gold directly to the bank, with the remaining half paid in cash to the Zimbabwe Revenue Authority.

Further demonstrating bullish prospects, the country has set an ambitious target of producing 40 tonnes of gold in 2024. This ambitious goal reflects the combined efforts of responsible mining practices, supportive government policies, and favourable market conditions.