Government Eyes Higher Gold Deliveries Despite 7% Increase
While gold deliveries to Fidelity Gold Refinery (FGR), the country’s sole operating gold buyer and exporter, increased by 7% from January to August 2024 compared to the same period last year, the government believes that deliveries should have been higher, given the current favourable gold prices, Mining Zimbabwe can report.
By Rudairo Mapuranga
Speaking at the gold mobilization send-off workshop held at Cresta Jameson Hotel in Harare on Monday, the Minister of Mines and Mining Development, Hon. Winston Chitando, noted that while gold deliveries rose to 20.7 tonnes in the first eight months of 2024, compared to 19.3 tonnes during the same period in 2023, the rise should have been greater, especially considering the current surge in gold prices.
“The global demand for gold is on the rise, as the world turns to gold as a safe haven amid economic and geopolitical issues. This has seen the price of gold increase from about $1,980 in September 2023 to its current price of $2,500. It is absolutely crucial that, as a country, we maximize both the volume and the unit price. At a time when market prices for other minerals, such as platinum and lithium, are subdued, gold is experiencing an increase.
“From January to August 2024, gold deliveries through Fidelity stood at 20.7 tonnes, compared to 19.3 tonnes for the same period in 2023, reflecting a modest increase. However, it should be more, especially with the rise in gold prices. Some old gold deposits, previously deemed unprofitable, have now become viable. Therefore, while we celebrate a 7% increase, we believe we should aim for even more,” Chitando said.
The government hopes that, through its gold mobilization efforts, deliveries to FGR will eventually surpass the current annual target of 35 tonnes.
“In 2024, large-scale miners delivered 8.5 tonnes of gold through Fidelity, compared to 7.7 tonnes in 2023, representing a 10.4% increase. Small-scale miners delivered 12.1 tonnes in 2024, up from 11.7 tonnes in 2023, a 3.4% increase. However, considering the significant rise in gold prices, this increase should have been much higher. We hope that through today’s intervention and other measures, we will see a rise in gold deliveries,” Minister Chitando added.
Zimbabwe’s gold sector remains strategic to national economic development, contributing significantly to the country’s economy. In 2020, gold deliveries through Fidelity Printers and Refiners amounted to 30.1 tonnes, and the 2024 target has been set at 35 tonnes. To achieve this goal, the government emphasizes the need to curb leakages to side markets, which have hindered the sector’s growth. The Gold Mobilization Task Force is seen as a key initiative to prevent these leakages.
The country’s currency is anchored on gold, underscoring the importance of ensuring that all gold trades within Zimbabwe are conducted through FGR. The gold mobilization exercise has proven successful, receiving positive feedback and making a substantial impact each time it is implemented.
“Sometimes, we feel that this exercise should happen more frequently because of its positive outcomes. Mineral resources provide the government with much-needed revenue from taxes and royalties. By working together through this initiative, we aim to ensure that every ounce of gold produced within our borders contributes to the national good.”
To the teams being deployed today, this intervention is of paramount importance. I wish you all the best as we embark on this crucial assignment to maximize revenues for the country and minimize losses by stopping illegal gold trade,” concluded Minister Chitando.