Zimbabwe records 28pc surge in monthly gold output

Sun June 15 2025

FIDELITY Gold Refinery (FGR), Zimbabwe’s sole authorised gold buyer, registered a 27,6 percent surge in deliveries in May, largely driven by prompt payments and incentives to producers by the Government.

Deliveries of the yellow metal, the country’s single largest export earner, to FGR totalled 3  488 kilogrammes in May compared to 2  734kg during the same period last year.

In 2024, Zimbabwe’s gold exports generated a total of US$2,5 billion.

This represents a 37 percent increase compared to the previous year. The FGR and small-scale miners who accounted for three-quarters of the haul were key players in this revenue jump.

The southern African nation’s other significant shipments include platinum group metals and tobacco.

Notably, mining accounts for more than 90 percent of Zimbabwe’s exports, making it one of the country’s most important economic sectors.

Zimbabwe’s export earnings were US$7,43 billion in 2024, according to the United Nations COMTRADE database, a comprehensive global trade information platform.

Last year’s shipments, however, represent a marked decrease from the previous year when the country realised US$9,2 billion

Timely payments for their gold deliveries this year have improved confidence among small-scale miners, encouraging producers to use formal channels.

Delayed payments had previously been cited as one of the key reasons some miners used illegal channels to sell the bullion.

The gold deliveries are expected to maintain exponential growth, anchoring economic growth and development.

This comes after FDR lowered the incentive threshold for gold deliveries from 20 kilogrammes to 500 grammes, making it more appealing to sell to Zimbabwe’s only licensed gold buyer.

FGR now offers a 5 percent incentive on a minimum of 500 grammes of gold delivered.

Lowering the threshold is poised to offer substantial relief to the artisanal and small-scale mining (ASM) sector, whose members struggled to meet the minimum incentive target of 20kg to qualify for the gold incentive.

In an interview, FGR General Manager, Mr Peter Magaramombe, said the supportive Government policies had been critical in driving increased gold deliveries.

“We realised that miners needed to be paid immediately after their deliveries and that has gone on to motivate our miners to bring their gold to FGR, “ Mr Magaramombe said.

He also noted the positive impact of gold incentives on deliveries to FGR.

“Both are playing a pivotal role in attracting artisanal and small to medium miners to deliver their gold.

“Such favourable Government policies are playing a very critical role in ensuring that gold deliveries increase at Fidelity,” he said.

Zimbabwe Miners Federation (ZMF) chief executive officer (CEO), Mr Wellington Takavarasha, said increased engagement between the Government and miners through ZMF has been key in driving deliveries.

“Government is beginning to understand the mining sector. Firstly, FGR has moved from paying miners late to paying instant cash. It has also introduced incentives that encourage deliveries.

“Also, gold prices are currently high, which is lucrative, which makes it unnecessary for players to sell their gold on the black market,” he said.

Young Miners Foundation (YMF) CEO, Mr Payne Kupfuwa, said prompt payments by FGR had made it possible for small-scale miners to increase production capacity.

“Timely payments have been critical in availing working capital to miners, which has enabled small-scale miners to develop their operations from small scale to medium, because they are now getting good prices.

“As such, miners are now developing their shafts, so a mine that was producing 10 grammes a day can now produce even 100 grammes daily,” said Mr Kupfuwa.

Zimbabwe’s gold production reached a record 36,4 tonnes in 2024, exceeding the Government’s target of 35 tonnes and the previous record of 35,3 tonnes achieved in 2022.

Growth in gold deliveries is a direct result of strategic initiatives implemented by the Government and industry players.

While improved payment systems and incentives have positively impacted gold production, other key factors contributing to the rise include initiatives by the primary producers.

Large-scale producers have also been riding the crest of bullish global prices to increase production capacities through expansions and reopening previously closed or disused mines.

Source: https://www.heraldonline.co.zw/