14/07/2023
Gold deliveries plunged in the first quarter
Tafaranashe Takavada
Zimbabwe gold output for the first quarter of the year slumped to 11,4 tonnes from 13.1 tonnes produced the same period last year, statistics from Fidelity Gold Refineries (FGR) revealed.
According to FGR, the first five months of 2023, small scale miners delivered 7 tonnes of yellow metal compared to 8.5 tonnes in 2022.
During the same period, large-scale miners delivered 4,4 tonnes compared to 4,6 tonnes last year.
This year the country targets to surpass last year's 35 tonnes to 40 tonnes of gold output.
In January, Zimbabwe produced almost 1.9 tonnes of gold compared to almost 2.8 tonnes in 2022, whereas February gold deliveries were stagnant at 1,895 tonnes before improving to 2,403 tonnes in March and declining to 2,376 tonnes in April 2023.
The gold output growth was jeopardised by several hurdles, including the worsening power crisis, high taxes and inconsistency legal framework.
In an exclusive interview with The Buziness Review, Midlands Miners Forum Chairperson Edgar Benjamin attributed the decline to factors that include lack of modern equipment and Rainfall patterns (climate changes) among other issues.
“Most of our Artisanal Miners are not equipped with mining knowledge and mining equipment. As the time is moving in a more technological world, the government should also bring in better mining methods and provide better mining equipment to the majority of Artisanal Miners as they contribute a lot in the gold production.
“Mining during the rainfall season reduces the activities in the opencast mining and this can be attributed as one of the leading factors which has affected our gold output. In 2022 the rains stopped in February which led to Artisanal Miners go back to their mining activities early and in 2023 season the rains went up to April so this led to the decline of gold output. And now because the rains have stopped, we are seeing a lot of increase in the gold mining activities,” he said.
In addition, “Gold production dropped as most of the produce got channeled through black market as artisanal small-scale miners fail to acquire mining certificate,” said The Zimbabwe prospectors union ZPU president Samson Dzingwe.
However, in the month of May gold deliveries increased by 21%, registering 2875 tonnes from 2376 tonnes in March clocking the highest output so far in the first five months of the year.
Large scale miners significantly improved with 1.069 tonnes, while small scale miners clocked 1.805 tonnes in the same month.
The small-scale miners are the largest contributors to FGR, with government and the Reserve Bank of Zimbabwe spearheading different schemes and mechanisms to support efficient production of the yellow metal in the mining sector.
In October 2019 Zimbabwean government launched an ambitious plan to transform the mining sector into a US$12 billion export industry by the end of 2023.
The target would represent a 275% upwards trend from the US$3,2 billion realised through exporting mining commodities in 2018 as the government envisaged the mining industry as a key pillar to sustainable economic growth.
The blueprint targeted gold output of US$4 billion per year with platinum expected to rack in US$3 billion.
Diamond mining and polishing was set at US$1 billion, equal to the combined target of chrome, nickel and steel, coal, hydrocarbons, lithium and other minerals were projected to contribute the remaining US$3 billion.