Gold target on course: Chitando

CLOUDINE MATOLA

Winston Chitando, the Minister of Mines and Mining Development, is optimistic that Fidelity Gold Refinery (FGR), the country’s sole buyer and marketer of gold, will achieve its target of 35 tonnes of the yellow metal by year’s end.

Last year, the miners delivered 30.1 tonnes.

Speaking to Business Times on the sidelines of the gold mobilisation meeting held in the capital Harare this week, Minister Chitando said that  20.67 tonnes of gold was delivered to FGR in the first eight months of this year, reflecting a 7%  increase from  19.3 tonnes delivered in the prior comparative period.

“Up to the end of August, we are around 7% above target. So, we are well on course to achieve the 35% target. But we want to do more, not just to achieve, but to exceed the target by a bigger percentage.

“It is imperative to note that in 2024, the large-scale miners delivered 8.5 tonnes of gold against 7.7 tons for the year 2023 while the small-scale miners delivered 12.1 tonnes to Fidelity  in the period under review  compared to 11.7 tonnes  delivered in 2023, reflecting a 3.4% increase.

“We are on the right track, and through this intervention which we are having today (gold mobilisation) , and various other interventions, we hope that we will increase our gold reference,” he said.

Additionally, Minister Chitando stressed that all leaks must be plugged in the sector.

“The key to realizing this target is the plugging of the leakages,” he said.

Minister Chitando said through the gold mobilisation exercise, the ministry wants to ensure that all the gold being produced in Zimbabwe should be delivered to FGR.

“And the teams are going throughout the country to look at mining operations and ensuring that, you know, the production finds itself to the rightful channels. I think this is more so in view of the fact that we have most of the mineral prices, commodity prices, are very depressed.

“And actually, one commodity price which has managed to, actually, increase, and not decrease, is gold, for an average of US$1 900 per ounce last year to about US$2 500 per ounce  at the moment. So, really, we want to ensure that all the gold we produce within the country, find itself through the rightful channels. That’s really the basis of this exercise,”Chitando said.

Additionally, he emphasized the significance of mining responsibly.

“The responsible mining initiative cuts across all sectors, including gold. And the biggest complaint I had on the responsible mining initiative was that a number of mining entities were not mining responsibly in terms of adhering to the laws of the country. And that’s another separate initiative which we are undertaking,” he said.