Zimbabwe’s MINES and Mining Development Minister, Winston Chitando, has urged gold miners to boost production by capitalizing on favorable global gold prices.
Gold remains Zimbabwe’s top export, generating approximately US$3 billion annually, with projections indicating it could bring in at least US$4 billion next year.
The mining sector is crucial to Zimbabwe’s economy, contributing around 75% of the country’s total exports. Speaking at the second gold mobilization workshop in Harare, Chitando noted that global demand for gold is rising as investors seek safer assets amidst economic and geopolitical uncertainties. Gold prices have climbed from about US$1,900 per ounce in September 2023 to US$2,500 currently.
Chitando emphasized the importance of maximizing both the volume and price of gold during a period when other commodity prices, such as those for Platinum Group Metals (PGMs), are low.
He highlighted the role of gold in Zimbabwe’s economy and its potential to drive growth, create jobs, and advance the country’s Vision 2030 goals. He stressed that gold should be channeled through official routes like the Fidelity Gold Refinery (FGR) to ensure economic benefits are fully realized and to combat illegal mining and trading.
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The gold mobilization initiative, which is active across Zimbabwe’s eight gold-mining provinces, involves various government agencies. Last year, Zimbabwe produced 30.1 tonnes of gold and aims to reach 35 tonnes this year, matching the record set in 2022. As of August 2024, gold deliveries reached 20.7 tonnes, up from 19.3 tonnes in the same period last year. Despite a 7% increase, Chitando noted the need for more substantial growth.
Large-scale miners contributed 8.5 tonnes to FGR in 2024, a 10.4% increase from 2023, while small-scale miners’ deliveries rose by 3.4%. Artisanal miners saw a 50% increase in gold output last month, attributed to the removal of value-added tax on gold deliveries. Overall, August saw a 36% increase in gold deliveries compared to July.
Chitando is optimistic that ongoing gold mobilization efforts will help increase deliveries and improve tax and royalty revenues for the government.