FGR Leads Charge in Transparent Gold Trading with Blockchain Technology
Zimbabwe’s gold sector has entered a new era of transparency and accountability, as the country’s sole gold buyer and exporter, Fidelity Gold Refinery (FGR), introduces a groundbreaking mine-to-market system, Mining Zimbabwe reports.
By Rudairo Mapuranga
This innovative system, backed by blockchain technology, is set to revolutionize gold trading by ensuring that all stages of the value chain—from extraction to the final market—are fully transparent and traceable.
Gold has long been central to Zimbabwe’s economy, serving as both a store of wealth and a key component of the country’s monetary reserves. As one of Zimbabwe’s precious metals supporting local currency (ZiG), gold plays a crucial role in the financial system. Recognizing this, Fidelity Gold Refinery has aligned with global trends of responsible sourcing and trade practices in commodity markets.
The mine-to-market system is designed to enhance the formalization of Zimbabwe’s gold trade, which has historically faced challenges with illicit activities and opaque trading practices. With this new system, FGR aims to foster trust in the gold sector by providing a platform that secures gold deliveries, guarantees transparent pricing, ensures efficient refining, and facilitates prompt payments to miners.
According to FGR General Manager Peter Magaramombe, the system is intended to transform the gold trading experience for miners in Zimbabwe.
He explained that new legislation in Zimbabwe now mandates gold traceability, and Fidelity’s mine-to-market system directly addresses this requirement.
“We are proud to introduce Fidelity Gold Refinery’s mine-to-market system, designed to change the gold trading experience for miners in Zimbabwe. This system supports our strategic objectives and is underpinned by the legislation passed in June 2023 requiring gold traceability,” he said.
Beyond compliance, the system empowers miners to maximize returns. It provides them with better access to formal markets, allowing them to benefit from higher gold prices and improved access to financial resources.
The backbone of this new system is blockchain technology, implemented in collaboration with Commstack, UK Ltd’s leading mine-to-market trading system developer. Blockchain offers an immutable and secure record of transactions, making it ideal for tracking gold from the mine to the final buyer.
Andrew Sutcliff, Commstack’s Company Director, explained that the technology ensures all data related to gold production, from large-scale mining operations to artisanal miners, is recorded, verified, and accessible in real time.
“Our role at Fidelity Gold Refinery is to provide technical expertise and support to meet the refinery’s strategic goal of bringing transparency, accountability, and security throughout the entire value chain. Blockchain technology allows us to seamlessly integrate all processes, ensuring that each mining entity retains autonomy over its data while maintaining compliance and transparency,” he said.
By leveraging blockchain, FGR can prevent gold from entering illegal channels and provide buyers with confidence in the origin and legitimacy of their gold purchases. The system will also help Zimbabwean gold producers meet international compliance standards, making Zimbabwean gold more competitive on the global market.
Several large-scale gold producers in Zimbabwe, including Caledonia Mining Corporation and Kuvimba Mining Holdings, have already adopted the mine-to-market system.
According to Trevor Barnard, Group CEO of Kuvimba Mining House, the benefits of this system extend beyond regulatory compliance.
“The system provides transparency and accountability, enhancing our gold traceability from mine to market. We wanted to ensure regulatory compliance not only within Zimbabwe but also internationally. This system allows us to be transparent about the sourcing and legitimacy of our gold, while ensuring the highest quality standards are met,” he said.
This level of transparency helps companies like Kuvimba maintain trust with international buyers, further securing their position in the global gold market. It also ensures that traded gold is mined ethically and meets environmental standards.
Fidelity’s mine-to-market system represents a significant step forward for Zimbabwe’s gold sector. The adoption of blockchain technology, with a focus on traceability and accountability, marks a new chapter in the country’s mining industry.
FGR’s efforts align with global calls for more responsible sourcing of precious metals, ensuring that Zimbabwean gold can be traded with confidence on international markets. As Zimbabwe continues to play a central role in the global gold supply chain, this commitment to transparency will strengthen its reputation and create new opportunities for investment.
Fidelity Gold Refinery is inviting all gold producers in Zimbabwe to join this movement toward a more responsible and secure future. As more miners adopt the system, Zimbabwe’s gold industry will continue to grow, benefiting the economy and the communities that rely on mining for their livelihoods.