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Oliver Kazunga

Senior Business Reporter

THE Government is making “specific” interventions aimed at boosting gold production by the small-scale mining sector, which presently accounts for the bulk of the yellow metal output.

Mines and Mining Development Minister Winston Chitando said this during the 2023 second quarter gold mobilisation workshop in Harare yesterday. Ten teams will be deployed across the eight mining regions of the country to carry out a two-week-long monitoring and surveillance blitz. Gold is Zimbabwe’s biggest foreign currency earner and is expected to contribute US$4 billion to the US$12 billion mining industry by the end of this year.

The strategic roadmap towards the US$12 billion milestone was launched in 2019 and is anchored on the re-opening of closed mines, expansion projects and opening of new mines.

In recent years, the Government has recognised the critical role played by the small-scale miners who produce over 60 percent of Zimbabwe’s gold.

In his address, Minister Chitando said the interventions by the Government would be done through the amendment of the Mines and Minerals Bill.

“The small-scale mining sector is an important sector much as the large-scale mining sector is an important sector. “However, what is happening- the amendment of the Mines and Minerals Bill, the recognition of small-scale miners is now there, which will enable the Government to make specific interventions to assist a very important sector. The sector employs a significant number of our people who are empowered.

“And the clarion call is to everybody in the sector (small-scale and large scale) to ensure that we observe the Responsible Mining Initiative so that we comply with all the laws of the country that we produce in a certain manner,” he said. President Mnangagwa is expected to launch the Responsible Mining Initiative at the State House today.

Minister Chitando commended the gold mobilisation taskforce for implementing efforts to curb gold leakages in the country.

The gold mobilisation workshop yesterday would see 10 teams from various Government departments being deployed across the eight mining regions of the country to carry out a two-week-long monitoring and surveillance blitz.

This follows a similar exercise where 17 teams were deployed in the first quarter for a week-long blitz aimed at promoting the delivery of gold through official channels.

Last year, Zimbabwe produced 35,3 tonnes of gold from which the small-scale mining industry contributed over 23 tonnes.

Stakeholders in the mining industry are targeting 40 tonnes of gold this year, although Minister Chitando believes the country has the potential to reach 50 tonnes.

The 40-tonne target, he said, could be surpassed on account of increased production and compliance to regulations the Government has put in place.

Latest statistics from Zimbabwe’s exclusive buyer of the yellow metal, Fidelity Gold Refineries indicate that gold output in the first four months of the year declined by 15,8 percent to 8,5 tonnes.

“The decreased gold production from small-scale miners, the major contributors of gold delivered to Fidelity Gold Refinery, in January and February was mainly due to heavy rains and they spent the period dewatering shafts.

“As a way to mitigate this challenge, the Government has set aside US$5 million towards capacitation of small-scale miners,” he said.

The decrease in production, Minister Chitando said, was also due to power cuts and the Government has set aside US$5 million towards the establishment of gold service centres.

“For the months of March and April, the gold delivered to FGR has increased significantly.

“This is a very positive outlook from the gold sector and gives us confidence that if we maintain the same delivery rates to FGR, then our 2023 targets are well in sight.”

Speaking earlier at the same occasion, Secretary in the Ministry of Mines and Mining Development Mr Pfungwa Kunaka said the gold mobilisation initiative is part and parcel of the attainment of an upper-middle-income economy by 2030.

“As Ministry of Mines and also as a sector, we are also expected to remain committed to the attainment of the US$12 billion. So, as much as the gold sector is so significant, the target out of the US$12 billion, we cannot leave it to chance.

“We have to attain it because attaining it means also giving ourselves a chance to attain a US$12 billion value.

“So when we sit like this (as stakeholders), we want to make sure that we are moving together and make sure the exercises (gold mobilisation initiatives) will be undertaken as efficiently as it ought,” he said.

FGR chief executive officer Mr Peter Magaramombe said some of the key strategies his organisation has embraced to improve gold production in the country was buying the yellow metal at competitive prices.

“One of the key strategies is to do with the offering of competitive prices to our miners. In terms of gold deliveries, it is important that as FGR we come up with the right price for our miners.

“So what we do in terms of this aspect is that we benchmark our pricing to international gold platforms such as the LBM (London Bullion Market), Dubai Gold Commodity Exchange and others.

“Cash availability will continue to ensure that cash is always available at all our gold-buying centres to ensure our artisanal and small-scale miners are timeously paid,” he said.

Mr Magaramombe added that at the moment FGR does not have cash challenges but what is not available is the gold, which the miners should deliver through the official channels.

“FGR is in the process of opening two more gold buying centres in Chegutu and Shamva. As I speak right now, my team is on the ground finalising the opening of the two gold buying centres and they should be operational by 1 June 2023.

“In addition to that, we are also going to open five more gold-buying centres within the gold service centres that will be set up by the Ministry of Mines and Mining Development.

“And on that aspect, we have set aside some resources to make sure that as soon those service centres are in place, Fidelity Gold Refineries will quickly set up the gold buying centres,” he said.