Staff Reporter
Gold deliveries to Fidelity Gold Refinery has increased during the second quarter (Q2) of the year 2024, due to increased deliveries by the artisanal miners.
Zimbabwe Economic Review on their ‘X account highlighted that, the small-scale miners delivered 1.6tonnes which amounted to 55.59 percent increase in the second quarter of 2024, reaching 4.52tonnes up from 2.9tonnes in the first quarter (Q1).
The Zimbabwe Economic Review further noted that the surge in Artisanal and Small Scale Miners gold deliveries can be attributed to Government measures and FGR’s measures which, among others included, removal of 15 percent VAT on gold sales, regularization of hammer mills uses and FGR’s marketing strategies.
An official from the Zimbabwe Miners Federation, in an interview with the publication said, “Government’s relaxed stance on hammer mills boosted gold production. Education awareness campaigns led by FGR’s gold mobilization teams are also having a significant impact in boosting production.
“FGR has generally improved its service in terms of advertising, feedback and extended working hours. This is a welcome development which is boosting confidence in our small scale miners”, said ZMF Official.
Speaking to this publication, economist Persistence Gwanyanya said, the removal of 15% value added tax (VAT) has made gold delivery lucrative and attractive for miners to continue bringing gold to the formal market.
“The removal of the 15% tax has made gold delivery by small scale miners lucrative and attractive, leaving the miners with enough money to further their operations.
This development will undoubtedly continue to encourage more small-scale miners to bring their gold to the formal market,” said Gwanyanya.
The scraping of the VAT Tax was done through Statutory Instrument (SI) 105 of 2024, since then Small-scale miners have delivered a cumulative 3,3tonnes with 1.68tonnes having been delivered in May and 1.62tonnes in May and June respectively to Fidelity Gold Refinery.
Gwanyanya further highlighted that there are two key drivers which are strong, the first being the favorable gold prices after the removal of the 15% VAT by Government and second one being economic stability as miners continue to grow their confidence in the system.
Overall gold deliveries surged to 7.74tonnes for the second quarter of 2024, marking a significant 28 percent increase from the first quarter’s 6.04tonnes.
Small-scale miners accounted for approximately 61.4 percent of the total gold deliveries, returning to their annual average delivery rate from the decline experienced in February and March when large-scale producers dominated.
