Zimbabwe may surpass 2024 gold production target
Sun Dec 15 2024
Zimbabwe's gold mining sector has witnessed remarkable growth over the past decade, with production nearly doubling since 2015. The country is now on track to surpass its 35-tonne gold production target for 2024, bolstered by strategic government policies and interventions aimed at formalising the sector and boosting deliveries.
Key initiatives such as gold mobilisation programmes, policy reforms, and
legislative adjustments have played a pivotal role in the sector's growth.
These measures have
not only increased gold deliveries but also reduced mineral leakages, ensuring that more miners operate within the formal system.
Mines and Mining Development Minister Winston Chitando highlighted the success
of these interventions during the fourth-quarter gold mobilisation send-off.
"As an example, when we had the last gold mobilisation in October, the
deliverance went up to 4.17 tonnes, and November saw 3.7 tonnes," he said.
"We are confident
we will surpass our 35-tonne target for the year."
By the end of November, gold deliveries had already reached 32 tonnes, with
expectations of closing the year at 37 tonnes. Mines and Mining Development
Deputy
Minister Dr. Polite Kambamura explained that this projection includes contributions from both traditional gold miners and platinum group minerals (PGM) producers.
"We expect at least 3 tonnes from miners in December and 2 tonnes from PGM
miners, taking us well beyond our target," said Dr. Kambamura.
A key turning point for the sector was the repeal of the 15% value-added tax
(VAT) on gold deliveries to Fidelity Gold Refiners earlier this year.
Introduced in early 2024, the VAT had disrupted cash flows for small-scale
miners, pushing many to informal markets. The swift reversal of the tax through
Statutory Instrument 105 of 2024
restored stability and trust in the sector.
Economist Tinevimbo Shava hailed the repeal as a transformative move.
"The removal of VAT has eased financial burdens for miners, encouraging
them to deliver gold through formal channels," he said.
Similarly, Chamber of Mines of Zimbabwe President Isaac Kwesu noted that the
policy shift reduced operational costs, making formal gold deliveries more
attractive.
The success of the gold mobilisation programmes has also been attributed to
strong collaboration between the Government and industry stakeholders. Gold
Producers
Association President Thomas Gono commended the programmes for fostering transparency and accountability.
"These interventions demonstrate a commitment to ensuring that the
country's mineral wealth is effectively harnessed for national
development," said Mr. Gono.
He added that the Government's engagement with stakeholders has aligned policy
objectives with on-the-ground realities, creating an enabling environment for
sustained
growth and investment in gold production.
As Zimbabwe positions gold as a cornerstone of its economic growth and the
stability of its Zimbabwe Gold (ZiG) currency, the Government's efforts to
formalise the
sector are expected to yield long-term benefits.
"Gold is one of the anchors of our currency. We must maximise deliverance
and ensure that our efforts are redoubled in the coming years," said
Minister Chitando.
With the sector already recording 32 tonnes of deliveries in 11 months,
stakeholders are optimistic that Zimbabwe will not only meet but exceed its
35-tonne target for 2024, setting the stage for continued growth in the coming
years.
Source: https://bulawayo24.com/