Gold Deliveries Surge by Over 36% in August, Driven by ASM
Gold deliveries to Zimbabwe’s sole operating gold buyer and exporter, Fidelity Gold Refinery (FGR), experienced a substantial increase of approximately 36 per cent in August 2024 compared to July, Mining Zimbabwe can report.
By Rudairo Mapuranga
According to FGR delivery statistics, overall gold deliveries from both Artisanal and Small Scale Miners (ASM) and Large Scale Miners (LSM) surged from 2,495.0803 kgs in July to 3,400.3442 kgs in August.
Deliveries by ASM recorded a significant increase of approximately 42.7 per cent, rising from 1,618.5140 kgs in July to 2,373.0537 kgs in August. This sharp rise underscores the continued dominance of small-scale miners in the nation’s gold production.
Large-scale miners also contributed positively to the monthly growth, with their deliveries increasing by 10.6 per cent, from 999.8705 kgs in July to 1,027.2995 kgs in August.
In August 2024, ASM accounted for approximately 70 per cent of the total gold deliveries, compared to LSM’s 30 per cent, highlighting the critical role of small-scale miners in Zimbabwe’s gold sector.
This latest increase follows a strong performance in the second quarter of 2024, where gold deliveries surged by over 28 per cent compared to the first quarter. The total gold delivered in the second quarter amounted to 7,739.4241 kgs, up from 6,044.8689 kgs in the first quarter.
The significant rise in deliveries during the second quarter was largely driven by ASM, which delivered 4,515.1660 kg, representing a 55.6 per cent increase from their first-quarter deliveries. Large-scale miners, while also contributing to the overall increase, saw a more modest rise in their deliveries, which grew by 2.6 per cent to 3,224.2581 kgs.
Despite a minor decline in production from May to June 2024, the gold sector remains robust, with small-scale miners playing a pivotal role in driving growth. The performance in August marks a continuation of this trend, reinforcing the importance of both ASM and LSM in sustaining Zimbabwe’s gold production and economic stability.
Gold deliveries in 2023 had declined by 15 per cent due to challenges like rising costs, power shortages, and government currency policies. However, the strong rebound in 2024 suggests a recovery driven by improved mining conditions and increased contributions from small-scale miners. As the year progresses, the sector appears poised for further growth, particularly if the challenges faced in 2023 continue to be addressed.