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The government has deployed more than a dozen teams across the country to carry out this year’s first quarter gold mobilisation exercise to boost the mining of the yellow metal which is backing the recently introduced Zimbabwe Gold (ZiG) currency.
This comes after the country recorded a 1,9% drop in gold output in the first quarter of 2024 due to leakages.
Speaking at the first Gold Mobilisation workshop, Minister of Mines and Mining Development, Winston Chitando said that the mobilisation teams were tasked with encouraging small-scale miners to formalise their operations and sell their gold through official channels such as Fidelity Gold Refinery (FGR). Said Chitando (via <a href="https://www.newsday.co.zw/local-news/article/200027203/zig-faces-new-threatas-gold-output-plunges">NewsDay</a>):
<blockquote>
For 2024 from January to April, the gold deliveries to FGR (Fidelity Gold Refineries) sit at 8,4 tonnes against a target of 40 tonnes by the end of the year. In 2023 for the months of January to April a total of 8,57 tonnes were delivered, this represents a 1,9% decrease.
Mineral leakages deprive the government of much-needed revenue from taxes and royalties. By working together, we can ensure that every ounce of gold extracted within our borders contributes to the national good.
</blockquote>
Chitando said increased gold production will boost the gold reserves and strengthen the ZiG’s value. He said (via <a href="https://www.newzimbabwe.com/zimbabwe-to-boost-gold-production-for-new-gold-backed-zig-currency/">NewZimbabwe.com</a>):
<blockquote>
Recently our currency was anchored on gold hence the need to ensure that all gold trade be done through the formal channels and eventually find its way to Fidelity Gold Refinery, our sole gold exporter.
This proactive approach by the ministry demonstrates its commitment to promoting the use of ZiG as a stable and reliable currency backed by tangible assets like gold.
Through these mobilization efforts, the ministry seeks to create a sustainable and robust financial ecosystem that benefits both the government and the citizens of Zimbabwe.
</blockquote>
The first gold mobilisation exercise will be conducted in all the country’s mining provinces which are Masvingo, Mashonaland East, Matabeleland South, Matabeleland North, Mashonaland Central, Midlands, Manicaland and Mashonaland West.
Chitando also revealed that in the first four months of 2024, large-scale miners delivered 4,3 tonnes of gold to FGR compared to 3,4 tonnes in the same period of 2023, representing a 26% increase.
However, gold delivery from small-scale miners, who are the main contributors to the country’s gold output, fell by 23% in the first quarter. Said Chitando:
<blockquote>
For small-scale miners, the gold deliveries to FGR have decreased from 5,2 tonnes in 2023 to four tonnes in 2024, a 23% decrease.
The small-scale miners have contributed 48% of the gold delivered to FGR for the year 2024 as compared to the 60% contribution for the previous year, 2023.
Over the years since 2020, small-scale miners have been the major contributors to gold deliveries to FGR contributing more than 60%.
However, for the year 2024, the contribution by small-scale miners ranges between 42% and 53% which calls for investigations into the decline in gold deliveries.
</blockquote>
More: <a href="https://www.pindula.co.zw/">Pindula News</a>

Pindula News

Govt In Gold Production Mobilisation Drive To Stabilise ZiG

Gold production in Zimbabwe dropped by 26% to 3.79 tonnes in the first two months of this year from the 5.129 tonnes reported in the preceding comparative period.
The significant drop in gold output has been blamed on heavy rains received in most parts of the country.
Fidelity Gold Refiners (FGR) general manager, Peter Magaramombe, told <a href="https://businesstimes.co.zw/rains-wash-away-gold-output/">Business Times</a> that it was imperative to pump out water from mines to boost gold production. He said:
<blockquote>
Our gold deliveries have gone down significantly as the artisanal and small-scale producers were significantly affected by the rains from mid-December 2022 to date.
(Gold miners) are failing to mine due to high water levels.
There are fears of possible mine collapse accidents hence production fell significantly.
</blockquote>
Magaramombe said large-scale producers delivered 1.69 tonnes to FGR in January and February 2023. Small-scale miners delivered 2.099 tonnes during the same period.
As a result, gold export receipts fell 24% to US$228.73 million during the first two months of this year from US$302.5 million earned in the previous comparative period.
More: <a href="https://zero.pindula.co.zw/">Pindula News</a>

Zimbabwe's Gold Output Drops 26% Due To Heavy Rains

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