TANATSWA KANDENGA
Zimbabwe’s small-scale and artisanal gold miners have become the backbone of the sub-sector, shattering production records and delivering more gold than the large-scale mining houses, statistics have shown.
In fact, the artisanal and small-scale miners—who are frequently perceived as criminals, intruders, disruptive, and chaotic—do not get the credit and respect they so richly deserve. In 2023 alone, the small-scale miners delivered 62% of the gold to Fidelity Gold Refinery (FGR), the country’s sole buyer and marketer of the yellow metal.
The gold producers delivered a total of 30.11 tonnes of the yellow metal to FGR. Of that amount, 18.66 tonnes or 62% of the delivered gold came from small-scale and artisanal producers.
The remaining 11.45 tonnes, or 38% of the gold, was produced by large mining companies and secondary producers like platinum group metal miners, according to Peter Magaramombe, general manager of FGR.
Nonetheless, the 30.11 tonnes output, however, was less than the 35.28 tonnes the country’s gold miners delivered in 2022. Of the 35.28 tonnes, the small-scale miners contributed 68% of the total output at 24.09 with the primary producers contributing 11.18 tonnes.
A total of 29.6 tonnes of gold were produced in 2021; 18.5 tonnes came from small-scale producers and 11.1 tonnes from large-scale miners.
Between 2017 and 2020, the country’s gold producers delivered 24.8 tonnes, 33.2 tonnes, 27.6 tonnes and 19 tonnes respectively with small-scale miners contributing the bulk of the yellow metal.
With over 40% of all mineral exports revenue coming from gold, the metal has continued to be the nation’s most popular.
Though official numbers are unavailable, approximations indicate that over 60% of Zimbabwe’s active gold reserves are under the hands of small-scale and artisanal miners, employing over a million people in this subsector.
As a result, the government, through the Reserve Bank of Zimbabwe (RBZ), has launched an initiative to improve the subsector’s productivity and capacity in a number of ways, realizing the critical role that small-scale mining plays in Zimbabwe.
With few exceptions, a sizable number of artisanal and small-scale miners have been working laboriously and intricately to extract the golden metal using antiquated and ineffective machinery.
Moreover, the government has helped small-scale and artisanal miners by providing a multi-million-dollar gold development facility through the RBZ.
Approximately 40% of Zimbabwe’s 4,000 known gold deposits are currently being commercially exploited , according to official data Business Times obtained this week from the Ministry of Mines and Mining Development.
More than 90% of gold deposits in Zimbabwe are found in the Gemstone Belts.
The government will continue to support the mining industry to promote sustainable growth, according to a pledge made by Professor Mthuli Ncube, Minister of Finance, Economic Development, and Investment Promotion, in his 2024 national budget.
Mines and Mining Development Deputy Minister, Polite Kambamura concurred with Professor Ncube saying: “Government will avail US$55m to capacitate small-scale miners. So, a miner can go to a provincial office and apply for that facility. We are also working with FGR in issuing some loans especially to those who have mining claims for them to buy equipment to improve their work.”
He added: “Government through FGR has put a number of buying centres across the country especially in remote areas that are rich in gold.
Also, FGR have partnered with some banks that include ZB bank and CBZ bank, as buying points and fidelity printers are in place of putting more buying units.”
Payment delays for gold delivered to FGR have been a source of grievance for the gold miners.
Magaramombe, however, asserted that the divisive matter had been settled.
“As soon as the miners give us their gold, we pay them instantly at buying units and that’s where they can go to buy every day and the miners can easily approach these facilities at any time,” Magaramombe told Business Times this week.
He added: “The 25 % (of the total invoice) paid in local currency to miners and they are paid using the ruling exchange rate at the day of payment’.
While on the one hand the small scale and artisanal miners are thriving, the large mining houses, on the other hand are under pressure to cut costs as they try to respond to high operating costs, high fiscal charges, shortages and high cost of electricity, capital shortages and foreign payment challenges, among many others.
