LIVINGSTONE MARUFU
In 2023, gold miners fell short of the 40 tonnes target that the Government of Zimbabwe had set, delivering only 30.11 tonnes of the yellow metal to Fidelity Gold Refinery (FGR), the country’s sole buyer and marketer of the yellow metal, due in large part to unfavourable mining policies, inconsistent policies and late payments, Business Times can report.
This represents a 15% drop from the 35.28 tonnes that the miners had delivered in 2022.
This demonstrates just how far short of the mark this has become.
During the course of the 12 months to December 31, 2023, small-scale miners contributed 18.66 tonnes, or 62% of the total gold delivered to FGP with large mining houses contributing the remaining 11.45 tonnes.
FGR general manager Peter Magaramombe confirmed the development.
He, however, said FGR has lined up several engagements with various stakeholders to improve gold deliveries.
“Gold deliveries were just above 30 tonnes in 2023 from 35.28 tonnes achieved in 2023 following subdued gold deliveries in January, February and August,” Magaramombe said.
Multiple analysts blamed unfavourable mining policies, policy inconsistencies and late payments for gold delivered as some of the reasons why the miners failed to achieve the target.
Gold miners are not happy with the 75% foreign currency retention threshold.
According to Irvine Chinyenze, CEO of the Gold Miners Association of Zimbabwe, the retention threshold has a negative impact on the miners morale and encourages smuggling.
“…..The current 75% forex retention threshold incentivises smuggling,” he said.
In order for small-scale miners to increase output, he claimed that it was necessary to review the retention rates for miners.
The government has increased gold centres to harness the yellow metal across the country.
