Gold deliveries increase significantly
GOLD deliveries in the first quarter totalled 10 176,83kgs, a significant increase from 5 400,84kgs compared to the same period under review last year, Fidelity Printers and Refiners, the country’s gold refinery company, has revealed.
This reflects a growth of 88,4 percent compared to the last year’s output for the same period.
The gold refinery company also revealed that most of the gold is delivered by small-scale miners, who delivered 6 571,22kgs compared to 2 257,16kgs the same period last year.
Primary producers delivered 3 605,61kgs compared to 3 143,68kgs during the first quarter of 2021. In October 2019, President Mnangagwa launched the US$12 billion mining industry strategic roadmap by 2023 as the Second Republic set its sights on increasing minerals’ contribution to the economy.
Speaking to Business Chronicle, Zimbabwe Miners Federation (ZMF) chief executive officer Mr Wellington Takavarasha said increased gold output is attributed to the hard work of all mining stakeholders, including Government, with its relevant ministries, small-scale miners, Environmental Management Agency (EMA) and the buyers.
“The huge increase of gold output as recorded by Fidelity Printers is attributed to mining stakeholders, which include Zimbabwe Chamber of Mines, ZMF and other mining units for having collaborative efforts with other Government arms like EMA, which have given ease of doing business to small-scale miners,” said Mr Takavarasha.
“There has been so much Government involvement as it continued to have many engagements with miners.”
He said as ZMF they will continue to engage Government on issues such as formalisation of small-scale miners to continue increasing gold output.
“When talking about formalisation, we are talking about so many issues, which include decriminalisation of gold trade so that we think outside the box and be able to reach 100 tonnes of gold annually,” he said.
To achieve the US$12 billion mining sector by 2023, Mr Takavarasha said the Ministry of Mines and Mining Development together with ZMF have initiated a document called ZERO, whose scope is the formalisation and regularisation of illegal mining activities so that they are in the mainstream economy.
The mining sector is critical in generating foreign currency, which contributes about 70 percent of the forex earnings largely driven by gold, platinum and diamonds.
Meanwhile, gold producer Caledonia Mining Company Plc, has also recorded a 40,3 percent output increase to 18,515 ounces compared to 13,197 ounces in same period last year.
“The first quarter of 2022 was an excellent start to 2022. Gold production in the quarter represents a new production record for any first quarter. Production in April showed a further improvement: production of almost 6 800 ounces in the month reflects an annualised production rate that is marginally above the top end of our guidance range for
2022 of 73 000 to 80 000 ounces of gold.
“Higher production reflects increased tonnes milled, better grade and improved recovery. Production in the quarter excludes approximately 1 500 ounces of recoverable gold contained in an ore stockpile, which accumulated during the quarter as we await the commissioning of an additional mill later in the year,” the company said in its trade update.