ASM Gold Deliveries Surge Due to Hammer Mill Regulation, VAT Removal, and FGR’s Strategies: ZMF
The Zimbabwe Miners Federation (ZMF), the country’s leading representative of the Artisanal and Small-Scale Mining (ASM) sector, has attributed the 55.6% increase in gold deliveries in the second quarter of 2024 to the government’s relaxed stance on hammer mills, the removal of value-added tax (VAT), and marketing strategies implemented by Fidelity Gold Refinery (FGR).
By Rudairo Mapuranga
Speaking to Mining Zimbabwe, ZMF CEO Mr Wellington Takavarasha stated that the government’s decision to regularize the use of hammer mills by ASM miners, rather than disrupting their operations through arrests, has improved gold production and deliveries to FGR.
“The government has realized the full potential and significance of hammer mills. Together with the Minister of Mines and Mining Development, we have started to regularize the operations of those using hammer mills. This equipment allows small-scale miners to crush as little as 20 kg and quickly realize the benefits,” Takavarasha said.
He added that the removal of the 15% VAT on all gold sales to FGR and the deployment of the gold mobilization team, which educates and encourages miners to deliver the gold to the country’s sole operating gold buyer and exporter, have significantly contributed to increased gold deliveries.
“Recently, the removal of the 15% tax has incentivized gold deliveries to Fidelity Gold Refinery. The gold mobilization team, sent by the Minister of Mines, has been conducting education and awareness campaigns. These efforts have improved relations between miners and the government and encouraged miners to deliver their gold to Fidelity,” he said.
Takavarasha also noted Fidelity’s efforts to enhance its services, including advertising, creating social groups for feedback, and extending operating hours, even on holidays. These measures have removed barriers to gold deliveries during normal times.
“We anticipate a significant increase in gold deliveries from small-scale miners. There is potential for even greater production as we continue to have mutual meetings with the Minister of Mines and develop policies that support the artisanal sector,” Takavarasha concluded.
Gold deliveries to the country’s sole operating gold buyer and exporter increased by over 28% in the second quarter of 2024.
Overall, gold deliveries surged to 7,739.4241 kgs for the second quarter of 2024, marking a significant 28.033% increase from the first quarter’s 6,044.8689 kgs.
Small-scale miners led this surge, delivering 4,515.1660 kgs in the second quarter, representing a substantial 55.5988% increase from their first-quarter deliveries of 2,901.8006 kgs. This notable rise underscores the critical role of artisanal and small-scale miners in the country’s gold production.
Large-scale miners also contributed to the overall increase, albeit to a lesser extent. Their deliveries rose to 3,224.2581 kgs in the second quarter, up by 2.58314% from the 3,143.0683 kgs delivered in the first quarter.