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Deliberations at ZAMI: Towards a Just Transition and Responsible Mining

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Deliberations at ZAMI: Towards a Just Transition and Responsible Mining

Last week, private and non-governmental organizations, alongside various government departments, convened at the 13th Zimbabwe Alternative Mining Indaba (ZAMI) 2024 in Bulawayo to discuss how mining can benefit communities without causing harm, Mining Zimbabwe can report.

By Rudairo Mapuranga

Attendees included representatives from the Office of the President and Cabinet, the Ministry of State for Provincial Affairs, the Ministry of Mines and Mining Development, the Ministry of Women Affairs, Community, Small and Medium Enterprises, the Environmental Management Agency (EMA), the Zimbabwe Revenue Authority (ZIMRA), the Parliament of Zimbabwe, and a broad range of community and environmental activists, church leaders, academics, development partners, media, and civil society organizations (CSOs). Many participants also joined virtually.

The Indaba was co-hosted by the Zimbabwe Environmental Law Association (ZELA), Zimbabwe Coalition on Debt and Development (ZIMCODD), and Zimbabwe Council of Churches (ZCC), in collaboration with partners including Christian Aid, ActionAid Zimbabwe, Norwegian Church Aid, Business and Human Rights Resource Centre, Centre for Agriculture and Food Policy (CAFP), Green Governance Zimbabwe Trust, UK International Development, Oxfam, Community Technology Development Trust, African Extractivism and Green Transition, Global Witness, ACT Alliance, Terre des Hommes, Centre for Natural Resource Governance, and the Forest Service Department of Agriculture. The event ran under the theme “Energy Transition Minerals: Putting Communities First for Community Development.”

This year’s ZAMI offered a platform for diverse discussions on opportunities for a just transition in Zimbabwe’s mining sector. Key topics included the clean energy transition, public debt, inequality, mining-induced displacements, and the environmental impacts of extractive activities. Emphasis was placed on responsible mining, fair taxation, and the reform of mining legal frameworks to ensure mining benefits Zimbabwean society as a whole.

With the global push towards a net-zero economy intensifying under the Paris Agreement, demand for critical minerals is rising. This trend underscores the need for Zimbabwe to attract investments in mineral value chains while addressing mining’s environmental and social impacts.

The timing of the 13th ZAMI aligns with Zimbabwe’s efforts to achieve Vision 2030 through the National Development Strategy 1 (NDS1), set to conclude in 2025. The mining sector has already reached significant milestones, such as surpassing the $12 billion mining economy target in 2023, driven by legal reforms to enhance transparency and accountability.

However, participants voiced concerns about the ongoing drought, exacerbated by the El Niño effect, which is increasing poverty levels and adding pressure to agriculture and mining. Discussions acknowledged the government’s responsible mining audits, which aim to promote environmental, social, and governance (ESG) principles and reduce the environmental costs of mining.

The urgent need for legal and policy reforms was also highlighted, with particular focus on the Mines and Minerals Amendment Bill, Environmental Management Acts, and other relevant frameworks. Reforming these areas is seen as essential to balancing mineral extraction with environmental sustainability and community rights.

Concerns Raised at the Indaba

  1. Mining-Induced Displacements and Environmental Degradation: Concerns were raised about the negative impact of mining on communities, including displacement, pollution, and loss of agricultural land.
  2. Public Debt and Resource Governance: Zimbabwe’s growing public debt, exceeding $21 billion as of June 2024, was highlighted as a challenge. Participants stressed the need to reduce reliance on resource-backed loans and improve domestic resource mobilization through better governance and tax policies.
  3. Transparency and Accountability: The absence of beneficial ownership registers and gaps in community engagement were seen as obstacles to ensuring mining benefits local communities. Stronger mechanisms to address mineral revenue leakages and hold mining companies accountable were called for.
  4. Water and Environmental Pollution: The resurgence of water pollution and riverbed mining, despite a government ban in August 2024, was flagged as a critical issue. The use of toxic chemicals such as mercury and cyanide in mining has led to water contamination and siltation, endangering human health and ecosystems.

Recommendations from ZAMI 2024

  1. Strengthen Resource Governance: The government was urged to reduce dependency on borrowing by adopting strategies for domestic resource mobilization, including improved tax legislation, strengthening public institutions, and enhancing public financial management.
  2. Empower Local Communities: Local community leaders should be empowered to negotiate natural resource contracts with multinational companies, ensuring that contracts are fair and communities benefit from mining.
  3. Promote Transparency in Mining Audits: The results of the first Responsible Mining Ordinance should be made public, with stakeholders, including communities and CSOs, involved in subsequent audits.
  4. Reform Mining Laws: The government was urged to prioritize the finalization and implementation of mineral-specific policy frameworks and review outdated laws, such as the Gold Trade Act and the Mines and Minerals Act, to better address modern challenges.
  5. Enforce Environmental Protections: EMA and local authorities were encouraged to improve water quality monitoring in mining areas and enforce the ban on riverbed mining. Strengthening grassroots monitoring and collaborating with academic institutions could help safeguard water resources.
  6. Develop Sustainability Protocols: The government should push for a national protocol on environmental sustainability, ensuring mining benefits are long-lasting and ecologically sound.
  7. Tax and Revenue Reforms: To prevent tax evasion and maximize revenue, the government was advised to support international efforts, such as the UN Tax Convention, to standardize tax systems and prevent avoidance practices.
  8. Inclusive Policies for Persons with Disabilities (PWDs): Mining companies should be mandated to ensure PWDs benefit from the industry, providing accessible infrastructure, promoting inclusive employment, and offering skills training.

Zimbabwe Joins SADC’s Renewable Energy Initiative to Boost Energy Access and Strengthen Mining Sector

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Zimbabwe Joins SADC’s Renewable Energy Initiative to Boost Energy Access and Strengthen Mining Sector

The Government of Zimbabwe has recently approved a Memorandum of Agreement (MoA) with Southern African Development Community (SADC) Member States to establish the SADC Centre for Renewable Energy and Energy Efficiency (SACREEE), a crucial step towards achieving universal access to sustainable modern energy by 2030.

By Ryan Chigoche

Presented by the Minister of Justice, Legal and Parliamentary Affairs, Ziyambi Ziyambi, this agreement aligns Zimbabwe with regional efforts to promote renewable energy and energy efficiency across Southern Africa.

SACREEE, to be hosted by Namibia, will play a pivotal role in facilitating access to clean energy, enhancing energy security, and promoting the adoption of renewable energy technologies throughout the region. For Zimbabwe, this partnership will unlock opportunities to enhance the deployment of clean energy solutions, foster the development of energy-efficient technologies, and promote skills development and capacity building in the renewable energy sector.

One of the key impacts of this agreement will be its positive effect on Zimbabwe’s mining sector, a major pillar of the national economy.

Mining operations, which are energy-intensive, will significantly benefit from the promotion of renewable energy and energy-efficient technologies.

As part of the SACREEE initiative, Zimbabwe will gain access to technical resources, funding, and expertise to integrate renewable energy solutions into the mining sector. This shift towards clean energy will reduce the sector’s reliance on costly and environmentally harmful fossil fuels, ultimately lowering operational costs and boosting the profitability of mining projects.

Furthermore, mining companies will be encouraged to adopt energy-efficient practices, contributing to cost savings while reducing their environmental footprint.

This is particularly relevant in a context where energy security is critical to the continued growth and stability of the mining sector, which is often affected by power shortages and unreliable electricity supply.

The initiative will also help create a favourable environment for the scaling up of renewable energy projects within the mining industry, with the establishment of pilot projects, demonstration sites, and renewable energy ecosystems.

These developments will provide mining companies with viable models to follow, encouraging greater investment in solar, wind, and other renewable energy sources. Additionally, Zimbabwean mining professionals will benefit from specialized training programs, enhancing their technical expertise in renewable energy technologies and energy management.

Ultimately, the SACREEE initiative will not only contribute to Zimbabwe’s national energy goals but will also catalyze growth within the mining sector, enabling it to become more sustainable, cost-efficient, and competitive in the global market.

Gold buying prices per gram in Zimbabwe 8 November 2024

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Gold buying prices per gram in Zimbabwe 8 November 2024

These are the official gold buying prices per gram in Zimbabwe today 8 November 2024, from the official gold buyer and exporter Fidelity Gold Refinery (FGR).

SG 90% and ABOVE US$81.78/g
SG ABOVE 85% BUT BELOW 90% US$80.92g
SG ABOVE 80% BUT BELOW 85% US$80.05/g
SG ABOVE 75% BUT BELOW 80% US$79.19/g
SAMPLE BELOW 10g BUT ABOVE 5g US$77.89/g

Fire Assay CASH $82.22/g

NB: Fire Assay cash price is for gold above 100gs, no sample is deducted.
For the Fire Assay Transfer price, a sample of not more than 10g is deducted
A 2% royalty is charged on all deposits (Small-scale miners)
A 5% royalty is set for Primary Producers

Cash available. Fidelity Gold Refinery prices will be changing daily to match world market prices.

Surge in Gold Prices Fuels Growth of Mining Sector

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Surge in Gold Prices Fuels Growth of Mining Sector

According to research and stockbroking firm IH Securities, the rise in gold prices has led to increased foreign currency inflows this year, with export receipts growing by 9.5% from US$5.6 billion in the first half of 2023 to US$6.2 billion in the same period of 2024.

By Ryan Chigoche

In its Year-to-Date Equity Strategy Review, the firm highlighted that mineral exports contributed 65% of the country’s total export revenues in the first half of the year, underscoring the sector’s vital role in the economy.

The mining industry is a significant economic driver, representing 13% of the GDP and providing employment for more than 50,000 people.

Gold deliveries to Fidelity Gold Refinery (FGR) were 7.2% higher in the first nine months of 2024, reaching 24 tonnes compared to the previous year. Fidelity anticipates receiving an additional 11 tonnes by the end of the year, bringing the annual total to 35 tonnes.

However, other sectors within mining have faced challenges due to falling commodity prices. Platinum producers, for example, have been forced to adopt cost-cutting measures. A steady decline in the prices of key metals like lithium and platinum group metals, driven by reduced economic activity in China and other developed markets, has raised concerns about the profitability of local mining ventures.

This downturn has led some mining companies, including well-established ones that previously focused on lucrative metals, to initiate staff layoffs.

In the case of platinum, IH Securities noted that Kuvimba Mining House is considering budget reductions for its Darwendale Platinum Project, and national platinum production is expected to decrease slightly by 1% in 2024 to 504,000 ounces due to operational difficulties and low prices.

Similarly, lithium operations have been impacted by weaker prices, prompting companies like Bikita Minerals to halt production at one of their plants.

The surge in gold prices has had a transformative effect on the mining sector, with gold continuing to be the standout performer among minerals. As global economic uncertainty and inflationary pressures drive investor demand for the precious metal, the rise in gold prices has provided a much-needed boost to the local economy. The increase in gold deliveries and the projected rise in output by Fidelity, a key player in the sector, highlights the potential for further growth in this area. Gold remains one of the most reliable hedges against inflation and market volatility, which is why it continues to attract both domestic and foreign investments, contributing significantly to export revenues.

Despite the challenges other minerals are facing, the broader outlook for the mining sector remains cautiously optimistic. The continued importance of minerals like gold, lithium, and platinum underscores the need for the country to maintain competitive mining practices and invest in innovation.

For example, advancements in sustainable mining technologies, as well as improved exploration and extraction methods, could help mitigate some of the financial risks faced by the sector.

Additionally, stronger regulatory support and better infrastructure for the mining industry could attract further foreign investment, potentially stabilizing the sector in the long run and fostering a more resilient economy. As the global demand for minerals evolves, the ability of Zimbabwe’s mining industry to adapt to market conditions will be key to its future growth and success.

Zulu Remains on Hold as Premier Seeks Financing and Strategic Options

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Zulu Remains on Hold as Premier Seeks Financing and Strategic Options

Operations at London Stock Exchange-listed mining and exploration junior Premier African Minerals Limited’s Zulu Lithium and Tantalum Project remain paused as the company continues to navigate financial and operational challenges, Mining Zimbabwe can report.

By Rudairo Mapuranga

Despite a promising mineral resource update and ongoing test work showing potential improvements in spodumene recovery, the project remains in limbo due to a lack of necessary funding.

Premier African Minerals has released a statement confirming that further interpretation of test results suggests that, with minor reagent adjustments, the plant could produce spodumene at acceptable grades and recoveries without significant changes to the current setup.

Additionally, fabricated inserts, once available, are expected to improve the spodumene grade and recovery. However, the central issue holding back the project’s full resumption is financing.

The company is exploring several options to secure the necessary funds, including the potential sale of the Zulu project, bringing in an investment partner through a partial sale, or entering into a joint venture.

Premier has also hinted at the possibility of self-funding an additional spodumene float plant to retain full ownership.

According to CEO George Roach, the primary challenge is achieving the required spodumene grade.

He said financing of the project is crucial for miners to benefit.

“The latest test work and resource update have reaffirmed that the primary challenge is achieving the required spodumene grade and recovery through the float plant. With the proposed fixes, we are hopeful that continuous operations can begin once the plant is back in operation for a limited trial run. However, for this to happen, proper financing is key,” he said.

The company plans a limited test run of 3 to 5 days using already-mined ore to prove the viability of the reagent adjustments and to allow potential investors to assess the plant.

Stakeholders have expressed frustration, particularly on social media, with some claiming that despite positive technical updates, the ongoing delays and lack of financing are undermining the project.

One shareholder commented, “Still closed and still no money to mine. George is a joke. Until new ownership takes 100% overall control, nothing changes with this investment.” Another echoed the sentiment, adding, “Some recognition that us shareholders have been shafted through dilution-to-oblivion wouldn’t go amiss, George.”

In contrast, some stakeholders remain cautiously optimistic, welcoming the recent updates.

“BOOM! Good RNS for once. Back to business,” one said, while others pointed out that Canmax, a key partner, may be voting against certain proposals, potentially complicating future developments.

Premier African Minerals continues to seek a viable financial solution, but until a deal is secured, the future of the Zulu Lithium and Tantalum Project remains uncertain.

CSOs, Govt Urged to Engage Chinese Investors, Research Compliance, Diversify Investments

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CSOs, Govt Urged to Engage Chinese Investors, Research Compliance, Diversify Investments

Zimbabwe’s civil society organizations (CSOs) and the government have been urged to actively engage with Chinese investors in the mining sector, research compliance standards, and support investment diversification to foster competition and raise industry standards, Mining Zimbabwe can report.

By Rudairo Mapuranga

Speaking to Mining Zimbabwe on the sidelines of the Zimbabwe Alternative Mining Indaba (ZAMI) held in Bulawayo last week, the Zimbabwe Environmental Law Association (ZELA) Deputy Director, Shamiso Mtisi, emphasized the importance of understanding both domestic and international regulatory frameworks that Chinese companies are bound by, particularly regarding environmental and social obligations.

Mtisi noted that Chinese companies operating in Zimbabwe must adhere to global standards, including those set by China’s membership in the Organization for Economic Co-operation and Development (OECD). The OECD’s guidelines on responsible sourcing of minerals from conflict-affected countries establish due diligence standards that Chinese companies are expected to follow.

Mtisi encouraged CSOs to leverage these standards to hold Chinese companies accountable and ensure that their operations align with international best practices.

“I think civil society groups should research what the Chinese are doing both internationally and domestically. The Chinese have developed a complaints-handling system, which they are piloting to address environmental governance issues and challenges they may pose to communities. All Chinese companies are required to comply with it,” said Mtisi.

He urged CSOs to engage with the Chinese Chamber of Commerce’s complaints-handling system to better understand its requirements and monitor whether Chinese companies in Zimbabwe adhere to these standards.

“By engaging with Chinese companies from an informed perspective, CSOs can point out when these companies are not complying with the standards set by the Chinese Chamber of Commerce. This is a key action required from community monitors and NGOs in Zimbabwe,” he added.

Mtisi also highlighted that Chinese lithium mining companies operating in Zimbabwe have formed an association. He suggested that communities and CSOs engage with this association to ensure their concerns are addressed and to foster improved relations between mining companies and local stakeholders.

In addition to promoting engagement with Chinese companies, Mtisi called on the government to diversify investments in the mining sector to increase competition. This is particularly crucial for Zimbabwe’s growing lithium industry, which has garnered significant attention from foreign investors.

“My understanding is that the Chinese lithium mining companies in Zimbabwe have formed an association. It would be beneficial for communities and groups to engage with that association to advance their interests and address the problems they face with these companies,” said Mtisi.

He encouraged the government to attract investors from countries such as the United States, the UK, and Australia.

“Diversifying investments means ensuring there is competition in the sector. Competition will raise the standards of how companies interact with communities, share revenues, and address environmental challenges. Every investor wants to present themselves positively,” he noted.

By diversifying investments and increasing competition, Zimbabwe can create a mining environment that adheres to higher environmental and social standards. Engaging with Chinese investors from an informed standpoint will enable civil society to effectively hold companies accountable and foster positive change in mining practices. Additionally, a competitive market will push all investors to maintain best practices, benefiting local communities and the country’s broader economy.

Mtisi’s call to action is clear: engage Chinese investors through research, monitor their compliance with international standards, and push for diversified investments to ensure a more responsible and sustainable mining sector in Zimbabwe.

Pambili Sets Sights on Becoming a Major Gold Producer in Zimbabwe

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Pambili Sets Sights on Becoming a Major Gold Producer in Zimbabwe

Pambili Natural Resources Corporation, a Canada-based firm, has shifted its strategic focus to Zimbabwe’s gold mining sector, aiming to become a significant player in the country’s gold production.

By Ryan Chigoche

The company, traditionally involved in oil and gas operations in North America, is now prioritizing the expansion of its gold assets in Zimbabwe, where it owns the Golden Valley project in Matabeleland.

In a recent statement, Pambili confirmed the sale of its Canadian oil assets—including the Chinook oil wells, pipelines, surface leases, and the associated Asset Abandonment and Retirement Obligation (ARO) of CAD150,000 (approximately US$108,000)—to Chauvin Energy Inc.

Jon Harris, CEO of Pambili, explained the significance of this divestiture: “Selling the Chinook assets is a pivotal step, as it enables us to eliminate the ARO liability and focus our financial and management resources on gold production in Zimbabwe.”

The Chinook wells were shut down in March 2020 due to low natural gas prices resulting from the pandemic and increased operational costs. Since then, Pambili had carried an estimated ARO of CAD231,500 (roughly US$166,760).

Harris added,

“By removing the legacy oil and gas obligations from our portfolio, we can now direct our attention and resources toward becoming a leading gold producer in Zimbabwe. Our strategy is to acquire a diverse range of gold assets, both producing and near-producing and enhance output through modern mining and processing techniques.”

Recently, Pambili announced that it has successfully brought the gold production plant at its Golden Valley Mine back online. In November 2023, the company entered into a share purchase agreement with White Satin Investments (Private) Limited to acquire the Golden Valley project, a key step in its growth plans.

Additionally, Pambili has partnered with Kavango Resources plc, a London Stock Exchange-listed company focused on Southern African metals and exploration, to revive operations at Golden Valley.

Gold mining plays a crucial role in Zimbabwe’s economy, contributing over 75% of the nation’s export earnings. As the country’s largest single export, gold is expected to generate approximately US$4 billion in 2024, up from US$2.7 billion in 2018.

In 2022, Zimbabwe produced a record 35.3 tonnes of gold, but output fell to 30.1 tonnes in 2023 due to various challenges faced by small-scale miners, such as power shortages and other operational difficulties. In response, the government has pledged to support the sector, setting a gold production target of 35 tonnes for 2024.

One notable policy change is the government’s recent decision to remove the 15% Value Added Tax (VAT) on gold deliveries, as outlined in Statutory Instrument (SI) 105 of 2024. This move followed a series of consultations with industry stakeholders.

According to official data from Fidelity Gold Refinery (FGR), Zimbabwe’s exclusive buyer of gold, the country’s gold output increased by 33% in the third quarter of 2024, reaching 10.3 tonnes, compared to 7.7 tonnes in the previous quarter. For the first nine months of the year, gold deliveries rose by 7.2%, reaching 24.1 tonnes, up from 22.4 tonnes during the same period in 2023.

Gold buying prices per gram in Zimbabwe 7 November 2024

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Gold buying prices per gram in Zimbabwe 7 November 2024

These are the official gold buying prices per gram in Zimbabwe today 7 November 2024, from the official gold buyer and exporter Fidelity Gold Refinery (FGR).

SG 90% and ABOVE US$80.82/g
SG ABOVE 85% BUT BELOW 90% US$79.96g
SG ABOVE 80% BUT BELOW 85% US$79.11/g
SG ABOVE 75% BUT BELOW 80% US$78.25/g
SAMPLE BELOW 10g BUT ABOVE 5g US$76.97/g

Fire Assay CASH $81.25/g

NB: Fire Assay cash price is for gold above 100gs, no sample is deducted.
For the Fire Assay Transfer price, a sample of not more than 10g is deducted
A 2% royalty is charged on all deposits (Small-scale miners)
A 5% royalty is set for Primary Producers

Cash available. Fidelity Gold Refinery prices will be changing daily to match world market prices.

FGR Leads Charge in Transparent Gold Trading with Blockchain Technology

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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.

Gold Deliveries Increase by Over 22%, ASM Leads with Over 30%

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Gold Deliveries Increase by Over 22%, ASM Leads with Over 30%

Gold deliveries to Fidelity Gold Refinery (FGR), Zimbabwe’s sole buyer and exporter, surged by approximately 22% in October compared to the previous month. This increase was largely driven by artisanal and small-scale miners (ASM), who contributed over 75% of the total deliveries, as reported by Mining Zimbabwe.

By Rudairo Mapuranga

According to official FGR figures obtained by this publication, ASM sector deliveries rose from 2,404.9807 kg in September 2024 to 3,143.1649 kg in October 2024, marking a significant increase of approximately 30.7%.

Deliveries from large-scale miners (LSM) also improved, rising by about 1.5% from 1,009.2107 kg in September to 1,024.6346 kg in October.

Overall, gold production climbed from 3,414.1914 kg in September to 4,167.7995 kg in October, an increase of roughly 22%.

In August, deliveries had seen an even greater increase, surging by approximately 36% compared to July. FGR statistics show total gold deliveries from both ASM and LSM rose from 2,495.0803 kg in July to 3,400.3442 kg in August.

ASM deliveries in August showed a remarkable increase of approximately 42.7%, rising from 1,618.5140 kg in July to 2,373.0537 kg. This growth underscores the continued dominance of small-scale miners in the nation’s gold production.

Large-scale miners also contributed positively in August, with their deliveries increasing by 10.6%, from 999.8705 kg in July to 1,027.2995 kg.

In August, ASM accounted for about 70% of total gold deliveries, with LSM contributing the remaining 30%. This highlights the critical role small-scale miners play in Zimbabwe’s gold sector.

The increase in October follows strong performance throughout the year, particularly in the second quarter of 2024 when gold deliveries rose by over 28% compared to the first quarter. Total gold delivered in the second quarter reached 7,739.4241 kg, up from 6,044.8689 kg in the first quarter.

This substantial rise in second-quarter deliveries was mainly driven by the ASM sector, which delivered 4,515.1660 kg—a 55.6% increase from their first-quarter performance. Large-scale miners contributed to the overall increase with a more modest rise of 2.6%, delivering 3,224.2581 kg.

Despite a slight dip in production from May to June 2024, the gold sector remains robust, with small-scale miners continuing to drive growth. The strong performance in August and October reflects the sector’s resilience and reaffirms the importance of both ASM and LSM in sustaining Zimbabwe’s gold production and economic stability.

In 2023, gold deliveries had dropped by 15% due to challenges like rising costs, power shortages, and currency policies. However, the notable rebound in 2024 suggests recovery, bolstered by improved mining conditions and increased contributions from small-scale miners. As the year progresses, the sector is positioned for further growth, particularly if challenges from 2023 continue to be addressed.

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