Staff Reporter
In a move set to increase gold deliveries and support small-scale miners, Fidelity Gold Refinery (FGR) has lowered the incentive threshold from 20 kilograms to 500 grams, making it easier for more miners to qualify for the 5 percent gold delivery incentive.
This new measure is expected to boost gold output in 2025 while ensuring more miners benefit from formal gold trading.
Previously, the 20kg threshold meant that only large gold-buying agents could qualify for incentives, as individual artisanal and small-scale miners (ASM) struggled to meet this high requirement. With the new 500-gram threshold, small-scale miners can now directly benefit from the 5 percent bonus, making it more financially rewarding to sell their gold through formal channels.
The ASM sector, which has become a key driver of Zimbabwe’s gold production, is expected to see higher morale and increased output following this decision. By making incentives more accessible, FGR aims to curb gold smuggling, boost formal transactions, and enhance the country’s foreign currency earnings.
In an interview with the media, last Saturday, FGR general manager Peter Magaramombe emphasized the importance of this revision.
“This adjustment aims to support and incentivize small-scale miners who produce smaller gold quantities yet play a vital role in driving the growth of the gold mining sector,” said Magaramombe.
The Zimbabwe Miners Federation (ZMF), which represents thousands of small-scale miners, welcomed the new incentive threshold, stating that it levels the playing field and ensures more miners benefit.
ZMF chief executive officer Wellington Takavarashaconfirmed that the organization had been advocating for this change and was pleased with the outcome.
“Fidelity Gold Refinery has agreed to apply the 5 percent gold incentive to all gold deliveries under the new threshold. We believe this will positively impact our members and the sector as a whole,” he said.
Zimbabwe’s gold sector continues to show resilience and growth, with 2024 marking an all-time high gold production of 36.4 tonnes, surpassing the government’s 35-tonne target and the previous 35.3-tonne record in 2022. This success has been attributed to new mining projects, better payment systems for small-scale miners, and favorable gold prices.
Government interventions, including the establishment of 17 gold buying centers, the Gold Development Initiative Fund, and mobile gold buying units, have significantly contributed to increased gold production by improving accessibility, streamlining transactions, and ensuring small-scale miners receive fair compensation for their output.
The mining sector remains central to Zimbabwe’s economic growth, and measures such as lowering the gold incentive threshold ensure that small-scale miners receive fair compensation while contributing to national development.
By supporting formal gold trading, the government aims to increase revenues, curb illegal gold exports, and position Zimbabwe as a leading gold producer in Africa. With the new incentives now in effect, the country is set for another strong year in gold production.
