Chitando hails “turning point” in Zim gold surge

STAFF WRITER

Zimbabwe’s gold sector witnessed a significant rebound in April, with deliveries to Fidelity Gold Refinery (FGR) soaring by a staggering 63% compared to the previous month—an upswing Mines and Mining Development Minister Winston Chitando has described as a “turning point” in the country’s bid to revitalise mineral output and drive economic recovery.

“Good global prices have given us the momentum. But beyond that, we are creating an environment that supports sustained growth in gold mining. We are deploying mobilisation teams to engage miners directly and resolve challenges on the ground,” Chitando said.

The Minister emphasised that the spike in deliveries was not an isolated incident but the result of deliberate government action to strengthen confidence across the mining value chain. He reiterated Zimbabwe’s ambition to meet its national gold delivery target of 40 tonnes in 2025.

According to Fidelity Gold Refinery general manager Peter Magaramombe, the country received over 3.8 tonnes of gold in April—up from about 2.3 tonnes in March—marking a sharp 63% increase.

“I can confirm that for April, gold deliveries reached over 3.8 tonnes, up from about 2.3 tonnes in March. That is a 63% jump. It shows that miners are responding positively to favourable global prices and the incentive structures we’ve put in place,” Magaramombe said.

The impressive figures were unveiled at the workshop that brought together government officials, small-scale mining representatives, gold buyers, and other industry stakeholders. The workshop served as a strategic platform to review progress, identify gaps in the gold mobilisation framework, and assess the role of artisanal and small-scale miners in sustaining production momentum.

Once again, small-scale miners emerged as the key contributors, accounting for the majority of the gold delivered in April. Their role in Zimbabwe’s mining landscape continues to grow, despite operational challenges, constrained access to capital, and informal structures.

Zimbabwe Miners Federation (ZMF) chief executive Wellington Takavarasha attributed the growth in gold output to a combination of government-backed initiatives and strengthened trust between miners and the state.

“A lot of incentives have been unveiled to spur gold production. With continued support and confidence-building measures, we expect this upward trend to continue throughout the year,” Takavarasha said.

The ZMF boss also highlighted that government decentralisation efforts—such as sending out field mobilisation teams—were beginning to yield results in hard-to-reach artisanal mining communities.

Experts agree that the sector’s resilience and responsiveness signal more than just a momentary recovery. For Zimbabwe, which is aiming to re-establish itself as a competitive gold producer on the African continent, the surge marks a critical milestone on the path toward long-term sectoral transformation and export diversification.

The workshop, attended by high-level representatives from the Ministry of Mines, Fidelity Gold Refinery, ZMF, and private sector financiers, focused on harmonising field efforts, reviewing gold incentive structures, and rooting out leakages in the value chain.

Chitando noted that the mobilisation teams deployed across the country had been effective in not only monitoring delivery volumes but also resolving on-site disputes, assessing equipment needs, and educating miners on compliance and traceability protocols.

“Beyond production figures, what we are building is trust and efficiency. The delivery numbers are the result of a more structured engagement with miners and stakeholders,” Chitando said.

He stressed that the government would continue to prioritise the formalisation of artisanal and small-scale mining (ASM) operations. This includes granting them access to technical assistance, environmental compliance training, and potential credit facilities from local banks or development finance institutions.

Gold remains Zimbabwe’s single largest foreign currency earner, contributing significantly to national revenue and employment. In 2022, the country produced approximately 35.3 tonnes of gold, but deliveries dipped in 2023 amid inflationary pressures, illegal smuggling, and currency instability.

The strong April performance has reignited hope within government circles that 2025’s 40-tonne target is not only realistic but achievable—if structural bottlenecks are addressed and international price trends remain favourable.

Economic analysts note that a sustained recovery in gold output could have ripple effects across related sectors, including energy, logistics, banking, and local government tax bases.

“The multiplier effect of a thriving gold industry cannot be overstated,” said one analyst familiar with mining policy. “You are not just talking about bullion. You are talking about job creation, forex inflows, infrastructure development, and rural industrialisation.”

To maintain credibility with international partners and buyers, Zimbabwe is also strengthening its gold traceability systems. FGR has been working on introducing tamper-proof packaging, barcoding systems, and refining standards that comply with the London Bullion Market Association (LBMA).

“These steps are not just about marketing our gold abroad,” Magaramombe said. “They are about proving that we are serious about governance, transparency, and value addition.”

The government is also tightening controls on gold exports to curb smuggling, which has historically undermined official delivery figures. New regulations require that all gold be sold through official channels such as Fidelity Gold Refinery, with stiffer penalties for non-compliance.

Despite the renewed optimism, stakeholders acknowledge that structural challenges still loom large. These include limited access to capital and equipment for small-scale miners, insufficient geological data, and the persistence of illegal mining operations.

In many rural districts, small-scale miners operate with little or no environmental safeguards, exposing both workers and surrounding communities to hazards such as mercury contamination and mine collapses.

“There is a lot of work to be done to ensure that growth is not just about numbers but about sustainable practices,” said an environmental officer who attended the workshop.

April’s surge in deliveries, while welcome, is not merely a statistical victory. It represents a broader economic inflection point for Zimbabwe, especially at a time when the country is seeking to unlock new sources of export revenue amid constrained access to international capital markets.

Minister Chitando, while bullish on future prospects, was quick to caution that momentum must be matched with discipline, innovation, and strategic investments.

“We have seen what is possible. But we must build on this with stronger institutions, clearer regulations, and more robust public-private partnerships. The gold sector can be the backbone of our economic revival, but only if we stay the course,” he said.

As global gold prices remain firm and investor interest in precious metals rises amid geopolitical uncertainty, Zimbabwe is positioning itself to capitalise on its mineral wealth. April’s performance, stakeholders say, may be the beginning of a new chapter in the country’s gold mining story—one defined not just by quantity, but by quality, equity, and shared prosperity.