Staff Reporter
Zimbabwe's gold deliveries have defied expectations, with a significant 25.29% jump in January 2024 compared to the same period in 2023.
This positive trend emerged despite the temporary suspension of artisanal and small-scale mining (ASM) by the Ministry of Mines and Mining Development, from mining activities during the rainy season, in an effort to safeguard lives against potential collapse.
However, despite this measure, recent data indicates a notable increase in gold deliveries, reflecting resilience and adaptability within the mining sector.
According to a reliable source within Fidelity Printers and Refiners (FPR), the country's sole gold buyer, total gold deliveries have witnessed a remarkable jump.
“There was a surge in gold deliveries at the refinery, with a remarkable increase of 25.29% to 2,375.3259 kilogrammes in January 2024 compared to 1,895.9153 kilogrammes in January 2023, which signifies a significant upturn in the country's gold production,” said the source.
Additionally, the source revealed that there were also notable deliveries by artisanal and small-scale miners (ASMs).
“The real gem lies within the ASM sector. Deliveries from these small-scale miners skyrocketed by 31.78%, jumping from 961.07 kilogrammes in January 2023 to 1,266.51 kilogrammes in January 2024. This significant increase hints that recent policy adjustments are indeed paying dividends. This surge is particularly noteworthy given the concerns about the ASM suspension's impact on production,” said the source.
Concurrently, according to the source, deliveries by primary producers also witnessed a noteworthy rise, increasing by 18.61% to 1,108.8152 kilogrammes in 2024 from 934.8500 kilogrammes in the prior comparative period.
Moreover, a source within the Ministry of Mines and Mining Development attributed some of the improvements in gold deliveries to a reversal in the payment system, which was introduced on November 1, 2023.
“A key driver of this success lies in the November 2023 policy change on the miners' payment system. Under this revised system, miners are paid partly in United States dollars (75%) and the remaining 25% in local currency. This change in payment structure has incentivized miners, providing them with greater financial stability and confidence in their earnings, ultimately contributing to the observed increase in gold deliveries,” said the source.
Meanwhile, the increase in gold deliveries is a positive sign for the economy, indicating enhanced productivity within the mining sector. This demonstrates the importance of implementing policies that support and incentivize economic activity.
