Gold deliveries to Fidelity surge

STAFF WRITER

Zimbabwe’s gold mining sector continues to show signs of resilience and recovery, with year-on-year gold deliveries rising by 27.6% in May 2025, driven primarily by increased output from the artisanal and small-scale mining (ASM) sector.

This upward trajectory underscores the impact of favourable market conditions, improved payment systems, and strategic sector reforms, even as month-on-month performance registered a slight dip.

Gold deliveries to Fidelity Gold Refinery (FGR) reached 3,488kg in May 2025, up from 2,734kg recorded in the same month last year, marking a 27.6% increase. This year-on-year growth highlights a consistent rebound in the sector, particularly within the ASM segment, which continues to serve as the backbone of the country’s gold production.

However, on a month-on-month basis, deliveries declined by 9.48%, down from 3,854kg in April 2025. This dip reflects the volatile nature of small-scale operations, which remain vulnerable to seasonal fluctuations, operational challenges, and inconsistent access to inputs such as power and equipment.

Despite the monthly decline, the performance of the artisanal and small-scale mining sector remains significant. In May 2025 alone, small-scale miners delivered 2,552kg of gold, representing a 12.77% drop from April’s 2,926kg, yet still accounting for nearly 73% of total national output.

The ASM sector continues to lead gold production, demonstrating resilience in the face of enduring constraints such as rising operational costs and erratic power supplies.

Government efforts to formalise small-scale mining activities through strategic partnerships and regulatory support have yielded tangible results.

Zimbabwe Miners’ Federation (ZMF) chief executive officer, Wellington Takavarasha, credited ongoing collaboration with government and the rollout of effective policies for the ASM sector’s growth.

“The collaboration between Zimbabwe’s Miners’ Federation and the Government is yielding positive results in formalising artisanal and small-scale mining (ASM) operations,” Takavarasha said.
“This approach is enhancing sector productivity and reducing miner arrests as the Government gains a better understanding of the sector. Fidelity’s spot payment system has significantly boosted gold production in the country by providing timely payments to miners.”

Internationally gold prices have remained robust, averaging over US$3 300 per ounce in recent months, making gold mining one of the most lucrative sectors in Zimbabwe’s economy.

While the ASM sector showed strong performance, large-scale miners posted marginal gains. In May 2025, large-scale operators delivered 936kg, up 0.91% from 927kg in April. However, this still represents an 11.37% year-on-year decline from the 1,056kg delivered in May 2024.

High production costs, limited access to capital, and outdated infrastructure continue to weigh down performance among large-scale operations. Many primary producers are also grappling with legacy debts, foreign currency shortages, and regulatory compliance issues, which slow down expansion and investment.

The year-on-year progress in gold deliveries is further affirmed by the first-quarter data for 2025. Gold deliveries for Q1 stood at 8,496kg—a remarkable 40.49% increase from the same period in 2024. The ASM sector contributed 5,771kg during this period, marking a near-doubling of output year-on-year.

Such a performance builds upon the momentum from 2024, when Zimbabwe achieved a record gold output of 36.4 tonnes—surpassing the government’s target of 35 tonnes and breaking the previous high of 35.3 tonnes set in 2022.

The historic 2024 output is attributed to a mix of strategic policy interventions, financial incentives, and enhanced infrastructure. These include 100% US dollars  payments to small-scale miners to ensure value retention, the establishment of 17 gold buying centres across the country, the Gold Development Initiative Fund (GDIF) for capital support and mobile buying units to ensure remote access to markets.

These measures significantly curtailed gold leakages and increased compliance, ensuring more gold was sold through formal channels.

Government and industry stakeholders have focused on reducing barriers to entry for small-scale miners, while promoting sustainability and formalisation. In addition to monetary incentives, investments in infrastructure and policy support are helping turn the tide.

The Government’s aggressive stance on illegal gold trading has been coupled with initiatives aimed at integrating informal miners into the mainstream economy. Moreover, the Zimbabwe Mining Development Corporation (ZMDC) and Ministry of Mines are working to streamline licensing and offer technical training, further professionalising the sector.

Efforts to establish gold service centres—hubs providing processing, refining, and equipment leasing—are also underway to ease the burden on ASM producers.

Gold remains a critical pillar of Zimbabwe’s export revenue. In 2024, the sector contributed over 40% of the country’s mineral export earnings, supporting foreign currency inflows and helping stabilise the economy.

With international gold prices remaining elevated, the sector is likely to continue generating significant earnings in 2025. Analysts expect that if policy consistency and investment stability are maintained, Zimbabwe could surpass its 2024 record and push toward 40 tonnes of annual output in the medium term.

Moreover, the positive trajectory of the gold sector provides an essential buffer for an economy still grappling with high inflation, currency volatility, and debt challenges.

Looking ahead, stakeholders agree that Zimbabwe’s gold sector holds the potential to anchor broader economic transformation—provided that certain structural hurdles are addressed.

Zimbabwe’s gold sector stands at a critical juncture. The impressive year-on-year growth in deliveries reflects not only favourable commodity prices but also the impact of structural reforms and formalisation efforts, especially in the ASM sector.

While challenges remain, including high operational costs and infrastructure deficits, the foundations laid through collaborative stakeholder action are beginning to bear fruit.

With the right mix of policy stability, capital investment, and sustainable practices, Zimbabwe’s gold mining industry could well become a cornerstone of national economic revitalisation.