ZIMBABWE’S cumulative gold deliveries for the 11 months to November 2022 increased by 31,3 percent to 33,3 tonnes compared to 25,3 tonnes in the corresponding period last year.
The increased output of the yellow metal during the period under review is attributable to the Government’s improved support to the mining industry.
Official figures from Zimbabwe’s sole gold buyer, Fidelity Printers and Refiners indicate that for the 11-month period to November 2022, deliveries by the small-scale miners stood at 22,9 tonnes while large miners delivered 10,4 tonnes.
During the same period last year, small-scale miners delivered 15,2 tonnes while large-scale producers delivered 10,1 tonnes.
Zimbabwe Miners Federation (ZMF) chief executive officer, Mr Wellington Takavarasha, whose organisation represents the interests of small-scale miners who produce 60 percent of the gold in the country attributed improved output to continued support by the Government.
“The improved deliveries are largely attributable to improved support to the mining industry by the Government as well as increased coordination and communication between stakeholders on issues around small-scale mining activities.
“Such stakeholders include ZMF itself, Government agencies and departments like the Ministry of Mines and Mining Development, the Environmental Management Agency (EMA), gold mobilisation team from the Reserve Bank, Fidelity Printers and Refiners.
“Unlike in the past, where agencies like EMA would adopt an aggressive approach to small-scale miners regarding the environmental issues, at present, there has been improved coordination between stakeholders in the mining industry and communication in the form of awareness campaigns by agencies like EMA and gold mobilisation teams,” he said.
The Government, he said, has also been supportive of the mining industry through gold milling incentives and Fidelity Printers paying prices at par with the London Bullion Market and this has been motivating small-scale miners to deliver to the formal market.
However, smuggling remains a major drawback as some unscrupulous miners continue to smuggle the yellow metal to neighbouring South Africa, and Dubai, United Arab Emirates.
“We anticipate that by the end of this month, as has been the tradition, more gold will be delivered to Fidelity as miners will be seeking cash to spend during the festive season and also to settle other obligations like paying school fees as schools open in January. In that context, it is likely that we will reach the 35-tonne target or surpass it this year,” said Mr Takavarasha.
In addition to the several incentives small-scale miners were enjoying from FPR, Mr Takavarasha said they were also receiving support from the Ministry of Mines and Mining Development and agencies that deal with mining issues such as EMA.
He said the weekly meetings between ZMF and the Ministry of Mines and Mining Development had seen the Government promptly addressing some of the challenges facing the miners.
The gold sub-sector is one of Zimbabwe’s major foreign currency earners and in general the mining industry is one of the economic centrepieces driving Zimbabwe’s economy.
In 2019, the Government launched the US$12 billion mining industry roadmap by next year from which the gold sub-sector is expected to contribute US$4 billion. – The Herald
