Zimbabwe to boost gold production for new gold-backed ZiG currency
GOVERNMENT has deployed thirteen mobilization groups across the country in a bid to increase production of gold which is backing the recently introduced Zimbabwe Gold (ZiG) currency.
Speaking at the first Gold Mobilization workshop, Minister of Mines and Mining Development, Winston Chitando said the government aims to boost the gold reserves and strengthen the ZiG’s value.
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The mobilization groups were tasked to encourage small-scale miners to formalize their operations and sell their gold through official channels such as Fidelity Gold Refinery (FGR).
“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,” he said.
He added that the first gold mobilization exercise will be conducted in all the country’s mining provinces which are Manicaland, Masvingo, Mashonaland East, Matabeleland South, Matabeleland North, Mashonaland Central, Midlands, Manicaland and Mashonaland West.
The minister also added that increased gold production will boost the Zimbabwean new currency by increasing confidence and credibility.
Chitando further added that gold mobilization has been successful in driving growth in the mining sector and benefiting the national economy and efforts are focused on increasing gold deliveries to FGR to meet set targets and eliminate illegal trading practices that hinder progress in the sector.
The ministry has set a target of 40 tons of gold deliveries to FGR which is higher than the year 2023 which was 30.1 tons.
“For the year 2023, the gold deliveries to FGR stood at 30.1 tons.
“The 2024 gold deliveries to FGR target set stands at 40 tons.
“For 2024 from January to April, the gold deliveries to FGR sits at 8.4 tons against a target of 40 tons by the end of the year.
“It is imperative to note that for the first four months of 2024, the large-scale miners delivered 4.3 tons of gold to FGR against 3.4 tons for the year 2023 representing a 26% increase,” he said.
The minister underscored that the mobilization teams will be encouraging small-scale miners to formalize their operations and provide these miners with increased security, fair prices and access to essential resources.
The government will also ensure that all players in the gold mining industry comply with regulations. and will crack down on illegal mining practices.
Source: https://www.newzimbabwe.com/