Gold deliveries to Zimbabwe’s sole authorized buyer and exporter, Fidelity Gold Refinery (FGR), decreased by 9.65% in November compared to October, Mining Zimbabwe can report.
By Rudairo Mapuranga
In November, small-scale miners contributed 2,639.7751 kilograms of gold, a 16% decrease from the 3,143.1645 kilograms delivered in October. Large-scale miners, however, recorded a 9.94% increase, delivering 1,126.3594 kilograms in November, up from 1,024.6346 kilograms in October. Total gold deliveries for November amounted to 3,766.1345 kilograms, reflecting a decline from October’s total of 4,167.7995 kilograms.
From January to November 2024, small-scale miners delivered a cumulative total of 20,321.2496 kilograms, while large-scale miners contributed 11,706.5933 kilograms. This brought the combined total to 32,027.8429 kilograms, underscoring the dominance of small-scale miners, who account for nearly two-thirds of Zimbabwe’s gold output.
October Performance Outshines November
The November decline contrasts with October’s strong performance, where gold deliveries surged by approximately 22% compared to September. This growth was largely driven by a 30.7% increase in contributions from artisanal and small-scale miners (ASM), which reached 3,143.1649 kilograms in October. Deliveries from large-scale miners also rose modestly by 1.5% in October, totalling 1,024.6346 kilograms.
Overall, October’s total gold production climbed to 4,167.7995 kilograms from September’s 3,414.1914 kilograms. This marked an impressive month-on-month increase driven by both ASM and large-scale mining sectors.
Year-to-Date Trends and Sector Volatility
Throughout 2024, gold deliveries have demonstrated significant volatility. For example, in August, deliveries rose by about 36% from July, primarily due to a 42.7% increase in ASM contributions. Total deliveries in August reached 3,400.3442 kilograms, up from 2,495.0803 kilograms in July. Large-scale miners also saw a 10.6% rise in contributions during this period.
The second quarter of 2024 saw a notable 28% increase in gold deliveries compared to the first quarter, with ASM accounting for a 55.6% surge. This consistent performance by ASM highlights its critical role in driving Zimbabwe’s gold production, although the sector faces challenges such as rising operational costs and unfavourable government currency policies.
Challenges and Outlook
Despite November’s decline, the overall gold sector remains resilient. The year-to-date performance has outpaced previous years, but the sector faces sustainability concerns, especially among small-scale miners who are grappling with operational challenges. In 2023, gold deliveries dropped by 15% due to similar difficulties, but 2024 has shown a robust rebound.
Stakeholders in Zimbabwe’s gold industry are optimistic about sustaining production levels into 2025. Efforts to address the challenges faced by both ASM and large-scale miners, particularly through supportive policies and improved mining practices, will be crucial for the sector’s continued growth.
