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Gold Hits Record High as Trump’s New Tariffs Spark Market Volatility

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Gold Hits Record High as Trump’s New Tariffs Spark Market Volatility

Gold prices surged to a record high of $2,933 per ounce on February 11, 2025, up from $2,917.90 the previous day, driven by escalating trade tensions under the U.S. President’s new tariff policies.

By Ryan Chigoche

The surge followed Donald Trump’s announcement of fresh 25% tariffs on steel and aluminium imports, triggering volatility in financial markets.

Since the start of the year, gold has gained 10%, reflecting heightened investor demand for safe-haven assets amid global uncertainty.

Aluminium prices also faced upward pressure as concerns grew that the tariffs could disrupt supply chains and dampen economic growth, potentially reducing demand for the metal. The three-month aluminium contract on the London Metal Exchange edged up 0.3% to $2,635 per tonne.

According to data from the American Iron and Steel Institute, the largest steel exporters to the U.S. include Canada, Brazil, Mexico, South Korea, and Vietnam, with Canada also serving as the top supplier of imported aluminium.

The new tariffs are expected to raise costs for U.S. manufacturers, who rely on imports for an estimated 40% to 45% of their aluminium and 12% to 15% of their steel.

The escalating trade war further strains an already fragile global economy, which continues to grapple with geopolitical crises such as Russia’s military actions in Ukraine and the prolonged conflict in Gaza. These disruptions have destabilized supply chains, driven up commodity prices, and fueled inflation.

In response, central banks have pursued interest rate hikes to curb inflation, though these measures have also constrained economic growth by tightening liquidity for investments.

Trump’s return to the political stage has brought renewed tariff threats, targeting imports from China, Canada, Europe, and Russia, further fueling gold’s rally as investors seek safe-haven assets.

His latest round of global steel and aluminium tariffs amplifies concerns of an intensifying trade war, adding to previous metal duties imposed during his first term. Back then, Trump had introduced 25% tariffs on steel and 10% on aluminium but later granted duty-free exemptions to Canada, Mexico, and Brazil.

Former President Joe Biden later negotiated duty-free quota agreements with the United Kingdom, the European Union, and Japan. However, Trump’s latest policy shift leaves uncertainty over whether these exemptions and quotas will remain in place.

Man Jailed 20 Years for Killing Mine Security Guard

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Man Jailed 20 Years for Killing Mine Security Guard

A Gweru man, Colleen Ngwenya, has been sentenced to 20 years in prison for the murder of a security guard at Ngwenya Mine, Lower Gweru. The tragic incident, which occurred in 2021, stemmed from a dispute between Ngwenya and the now-deceased security officer over the possession of weapons at the mine, Mining Zimbabwe can report.

By Rudairo Mapuranga

According to the National Prosecuting Authority of Zimbabwe, on the day of the incident, the security guard confiscated Ngwenya’s knives, instructing him to retrieve them when leaving the mine. Later that day, Ngwenya ambushed the guard and stabbed him in the back and buttocks. The wounded guard was discovered by a passerby, who sought help, but unfortunately, the victim succumbed to his injuries before assistance could arrive.

Ngwenya was arraigned before the Midlands High Court Circuit, where he was found guilty and sentenced to 20 years’ imprisonment for the fatal stabbing.

This case is one of many violent altercations in Zimbabwe’s mining sector, particularly in areas where artisanal mining is prominent. The rise of illegal mining has led to increasing conflicts over resources, often escalating into deadly violence. Many of these disputes involve the use of dangerous weapons like machetes and knives.

The Midlands High Court Circuit has played a key role in addressing these cases. During its recent session, the court completed a total of 60 cases, many of them involving violent disputes among miners. Of the cases heard, 24 offenders were convicted of murder, receiving sentences ranging from 18 years to life in prison. The remaining cases saw either reduced charges of culpable homicide or acquittals due to insufficient evidence.

Authorities, including the National Prosecuting Authority of Zimbabwe (NPAZ), continue to express concern over the surge of violence in mining communities and are pushing for better regulation of the artisanal mining sector. As Zimbabwe’s mining industry continues to expand, there is a growing need for conflict resolution mechanisms to ensure that disputes over mining claims do not result in further loss of life.

 

Gold buying prices per gram in Zimbabwe, 11 February 2025

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Gold buying prices per gram in Zimbabwe, 11 February 2025

Gold buying prices per gram in Zimbabwe today 11 February 2025, from the official gold buyer and exporter Fidelity Gold Refinery (FGR).

SG 90% and ABOVE US$88.24g
SG ABOVE 85% BUT BELOW 90% US$87.31g
SG ABOVE 80% BUT BELOW 85% US$86.37/g
SG ABOVE 75% BUT BELOW 80% US$85.44/g
SAMPLE BELOW 10g BUT ABOVE 5g US$84.04/g

Fire Assay CASH $88.71/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 the world market.

Botha Mine Reasserts Transparency in Wake of Fraud Allegations

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Botha Mine Reasserts Transparency in Wake of Fraud Allegations

Bindura-based mine, Botha Gold Mine, has taken decisive steps to address ongoing allegations and restore stakeholder confidence following the suspension of its top leadership, Mining Zimbabwe reports.

By Ryan Chigoche

In a recent press statement, the company clarified that the alleged suspensions related to a “fraudulent court order,” which it claimed is null and void, reaffirming the integrity of its management team.

Earlier this year, Botha Gold Mine suspended General Manager Angela Mpofu-Chisvo over allegations of theft and fraud involving over US$300,000. However, the company has now publicly dismissed these claims, confirming that they were part of a deceptive scheme orchestrated by minority shareholders attempting to illegitimately seize control of the mine.

The company’s statement affirms that the executive management team, led by General Manager Mrs Mpofu-Chisvo, continues to oversee the mine’s operations without disruption. Botha Gold Mine also extended a sincere apology to those wrongfully implicated in the controversy, specifically Mr Themba Hlongwani and Mrs Mpofu-Chisvo, who were accused of misappropriating funds and concealing information.

The company emphasized that these accusations were part of a broader plot to destabilize the organization. “We put the record straight that no such incident occurred,” the statement declared, noting that these malicious claims were merely a strategy by a faction attempting to take over the mine.

In addition, the company issued a strong warning to the public, advising them to exercise caution and refrain from engaging in business transactions with the individuals involved in the fraudulent activities.

These individuals—Munyaradzi Nzarayapenga, Leonard Rwambiwa, Dudzai Ruzvidzo Kajokoto, Ashley Ziyarura Zulu, Simbarashe Nzenza, and Tendai Chinyani—are not directors or representatives of the company.

Botha Gold Mine stated that it will not recognize any agreements, contracts, or transactions entered into by these rogue parties and disassociates itself entirely from any actions or representations made by them outside of the authorized executive management structure.

This move follows an earlier attempt by certain minority shareholders to use fraudulent court orders in an effort to unseat the mine’s leadership. With the fraudulent suspensions now declared void, Botha Gold Mine has made it clear that its leadership and operational integrity remain intact.

The company’s commitment to ethical business practices is further underscored by the launch of “Operation Ngatibatanei/Asibambaneni” (Uniting with artisanal miners for sustainable mining), which emphasizes community engagement and sustainable development. Through this initiative, Botha Gold Mine aims to foster collaboration with artisanal miners to achieve sustainable mining practices.

By reaffirming its dedication to transparency, integrity, and accountability, Botha Gold Mine seeks to restore trust among its stakeholders and set a strong example of good governance within Zimbabwe’s mining sector. The company has reported the fraudulent activities to the Zimbabwe Republic Police, and the perpetrators will face legal action.

Anglo American Platinum Forecasts Sharp Earnings Decline for FY2024

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Anglo American Platinum Forecasts Sharp Earnings Decline for FY2024
Anglo American Platinum, one of the world’s largest producers of platinum group metals (PGMs), is bracing for a significant earnings decline for the year ended 31 December 2024.
By Ryan Chigoche
The company attributes this downturn to falling PGM prices and operational disruptions, reflecting the broader challenges facing the industry.
Both headline earnings per share (HEPS) and basic earnings per share (EPS) are expected to experience substantial declines.
The PGM mining group expects headline earnings to decrease by 36% to 46%, falling to between R7.6 billion and R9.0 billion from R14 billion in 2023. HEPS is projected to decline to between 2,889 cents and 3,421 cents per share, down from 5,330 cents per share in the previous period.
Basic earnings are expected to decline by 42% to 52%, ranging between R6.3 billion and R7.6 billion, compared to R13 billion in 2023. EPS is forecast to drop to between 2,395 cents and 2,889 cents per share, from 4,952 cents per share in the prior year.
The primary factor behind this downturn is a 13% drop in realized ZAR PGM prices, with palladium and rhodium prices plummeting by 24% and 30%, respectively, in US dollar terms. Weak global demand, particularly in the automotive sector where PGMs are used in catalytic converters has exacerbated the decline.
“The decrease in earnings compared to 2023 is primarily due to a 13% decline in realized ZAR PGM prices,” the company stated in a trading update.
Beyond weaker metal prices, Anglo American Platinum incurred non-recurring costs totalling R3.5 billion, linked to operational and corporate restructuring, the demerger of its PGM business, and associate losses.
 A further R1.9 billion asset write-down, mainly related to coarse particle recovery technology at the Mogalakwena mine, also weighed on earnings. These one-off costs reduced EPS and HEPS by approximately 1,700 cents and 1,100 cents per share, respectively.
Taxation and royalty payments also declined in line with lower profits, reflecting the tough operating environment.
Anglo American Platinum’s Zimbabwean subsidiary, Zimplats, reported a 7% drop in production, attributed to power outages and declining ore grades.
The challenges faced by Anglo-American Platinum and Zimplats reflect broader struggles across the PGM industry.
Weak metal prices, sluggish demand, and oversupply have eroded profitability while rising operational costs further squeeze margins.
The growing adoption of electric vehicles (EVs), which do not require catalytic converters, poses a long-term threat to PGM demand.
While PGMs remain essential for internal combustion engine vehicles, the global push for decarbonization could lead to structural declines in demand over the coming decades.
Despite these headwinds, Anglo American Platinum remains committed to operational efficiency and portfolio optimization. The company aims to unlock value from its resource base, enhance efficiency, and position itself for long-term growth. However, navigating the current volatile market will require strategic adjustments.

ZDAMWU Recognized at Annual National Labour Champions Awards 2024

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ZDAMWU Recognized at Annual National Labour Champions Awards 2024

The Zimbabwe Diamond and Allied Minerals Workers Union (ZDAMWU) has once again demonstrated its commitment to excellence in trade union leadership, as evidenced by its recent recognition at the Annual National Labour Champions Awards 2024, Mining Zimbabwe can report.

The event, organized by the Human Capital Institute (HCI), celebrated outstanding contributions to labour rights and union leadership, with ZDAMWU and its leaders receiving prestigious accolades.

ZDAMWU General Secretary Justice Chinhema was honoured with the Platinum Award for Outstanding Trade Union Leadership. This recognition underscores Chinhema’s unwavering dedication to advocating for workers’ rights and improving labour conditions within the mining sector. His leadership has been instrumental in addressing critical issues workers face, ensuring their voices are heard, and fostering a culture of fairness and equity.

The awards ceremony highlighted the importance of sustained and impactful communication in labour movements. It emphasized the need for leaders to leave a lasting legacy that benefits future generations. The event also called for a collective effort to create a better world, urging leaders to make their lifetime signature one of positive change and enduring influence.

ZDAMWU’s participation in the Annual National Labour Champions Awards 2024 not only celebrates its achievements but also reinforces its commitment to advancing the welfare of workers in Zimbabwe’s diamond and allied minerals industries. The union’s efforts align with the broader goals of the Human Capital Institute, which seeks to recognize and promote excellence in human capital development and labour leadership.

As ZDAMWU continues to champion the rights of workers, its recognition at this prestigious event serves as a testament to the union’s impactful work and the dedication of its leaders. The Platinum Award for Justice Chinhema is a well-deserved honour, reflecting his significant contributions to trade unionism and his commitment to creating a better future for all workers.

ZiG Faces Challenges Despite 90% Gold Reserves Boost

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ZiG Faces Challenges Despite 90% Gold Reserves Boost

Zimbabwe’s ambitious attempt to stabilize its economy using gold reserves and the Zimbabwean gold-backed currency (ZiG) is facing significant challenges, despite assurances from the Reserve Bank of Zimbabwe (RBZ) Governor, Dr John Mushayavanhu, that gold would anchor the nation’s currency and economic stability, Mining Zimbabwe can report.

By Rudairo Mapuranga

In his 2025 Monetary Policy Statement (MPS), Mushayavanhu outlined the central bank’s commitment to using gold to bolster the country’s reserves and support the new currency, but recent events suggest otherwise.

The launch of the ZiG in April 2024 was seen as a bold move to stabilize Zimbabwe’s currency amid the country’s long-standing economic crisis. However, by late September, the RBZ was forced to devalue the ZiG by over 40%, raising concerns about its effectiveness as a stabilizing force. The devaluation, which aimed to reduce the gap between the official and parallel market exchange rates, has instead led to widespread inflation, a drop in consumer purchasing power, and declining corporate profits.

In his MPS, Mushayavanhu highlighted the growth of Zimbabwe’s gold reserves, from 1.5 tonnes in April 2024 to 2.7 tonnes by early 2025, representing a 90% increase in reserves now valued at over US$550 million. According to the governor, this increase was designed to back the newly introduced ZiG, ensuring liquidity and instilling confidence in the currency.

“Since April 2024, our gold reserves have risen significantly, providing a solid buffer to stabilize our currency. This growth guarantees that we now have more than three times the cover for our reserve money,” Mushayavanhu stated.

Despite this, the devaluation of the ZiG in September, followed by five consecutive days of its decline in value against the US dollar, has raised questions about the RBZ’s ability to stabilize the economy through gold alone. The ZiG fell from 25.2836 to the dollar on Friday to 25.2842 by Monday, continuing its downward spiral. The black market rate for the ZiG is now as high as 38:1 against the US dollar, significantly higher than the official market rate of 28:1.

The devaluation has sparked inflationary pressures and eroded the purchasing power of consumers, while businesses are struggling to maintain profitability. The government’s decision to stagger bonus payments to civil servants, combined with the scramble for US dollars during the festive season, has put further pressure on the local currency. While the ZiG was designed to stabilize exchange rates, its failure to do so has prompted concerns from businesses and consumers alike.

Gold, which remains Zimbabwe’s most critical reserve asset, has continued to rise on the international market, with prices hitting record highs. On Friday, spot gold climbed to $2,861.46 per ounce, following a sixth consecutive week of gains. However, despite the positive performance of gold globally, the ZiG has struggled to maintain its value domestically.

In a bid to further accumulate foreign reserves, the RBZ revised its foreign currency retention policy for exporters, reducing the retention threshold from 75% to 70%. Exporters are now required to surrender 30% of their foreign currency earnings, a move that is expected to increase the flow of foreign exchange into the RBZ’s reserves. However, exporters have raised concerns that this will negatively impact their operations, particularly given the volatility of the local currency.

To cushion exporters, the RBZ introduced the US Dollar Denominated Deposit Facility (USDDDF), which allows them to invest the additional surrendered proceeds and withdraw funds in ZiG at the prevailing interbank rate. While this offers flexibility, many exporters remain apprehensive about the long-term stability of the ZiG.

Mushayavanhu expressed optimism that gold production would rise to 40 tonnes by 2025, further strengthening Zimbabwe’s gold reserves and helping the country meet its economic growth targets. The RBZ is targeting a 6% growth rate for the economy in 2025, supported by improvements in agricultural output and increased gold production.

Despite this, the continued volatility of the ZiG and the widening gap between the official and parallel market exchange rates signal that the road to economic stability may be much rockier than initially anticipated. As Zimbabwe’s gold-backed currency continues to face devaluation pressures, questions remain about the efficacy of the RBZ’s strategy in navigating the country through its economic crisis.

Gold buying prices per gram in Zimbabwe, 8 February 2025

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Gold buying prices per gram in Zimbabwe, 8 February 2025

Gold buying prices per gram in Zimbabwe today 8 February 2025, from the official gold buyer and exporter Fidelity Gold Refinery (FGR).

SG 90% and ABOVE US$87.33g
SG ABOVE 85% BUT BELOW 90% US$86.41g
SG ABOVE 80% BUT BELOW 85% US$85.49/g
SG ABOVE 75% BUT BELOW 80% US$84.56/g
SAMPLE BELOW 10g BUT ABOVE 5g US$83.17/g

Fire Assay CASH $87.80/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 the world market.

Gold Deliveries Increase by over 31% , Driven by ASM Growth

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Gold Deliveries Increase by over 31% , Driven by ASM Growth
Gold deliveries to the country’s sole buyer and exporter, Fidelity Gold Refinery (FGR), increased by approximately 31.94% in January 2025 compared to the same period last year, driven by Artisanal and Small-Scale Miners (ASM), who recorded a 69.89% improvement in deliveries, offsetting a 21.66% decline in contributions from Large-Scale Miners (LSM), Mining Zimbabwe can report.
By Rudairo Mapuranga 
In January 2025, total gold deliveries reached 3134.3456 kg, up from 2375.3259 kg in January 2024. ASM contributed a significant 2265.5474 kg, compared to 1333.4371 kg delivered in January 2024. Meanwhile, LSM saw a drop, delivering 868.7982 kg in January 2025, down from 1108.8156 kg the previous year. The surge in ASM output highlights the vital role small-scale miners play in driving the country’s gold production despite the challenges faced by the LSM sector.
This rise in gold deliveries builds on the strong performance of 2024, where gold deliveries to FGR increased by 26.65%, with ASM dominating the sector with a 21.41% surge. Throughout 2024, small-scale miners consistently outperformed their large-scale counterparts, contributing nearly two-thirds of the total gold delivered. By year-end, ASM had delivered 23,745.6423 kg, while LSM accounted for 12,741.1103 kg, bringing the total gold deliveries for 2024 to 36,486.7526 kg. This represents a 21.22% increase from the 30.1 tonnes delivered in 2023.
In December 2024 alone, ASM delivered 3,127.7228 kg of gold, marking a 19.57% increase from 2,615.8037 kg in November. In contrast, large-scale miners experienced a slight decline, delivering 1,034.517 kg, down 8.16% from November’s 1,126.3594 kg. The monthly fluctuations in gold deliveries reflected the volatility of the sector, but ASM’s consistent growth helped maintain overall stability.
This performance reaffirms the crucial role ASM plays in Zimbabwe’s gold production, consistently contributing the bulk of the national output. In fact, small-scale miners accounted for over 65% of total gold deliveries in 2024, demonstrating their growing importance to the country’s economy.
Despite challenges such as rising operational costs, power shortages, and unfavourable exchange rate policies, ASM has proven resilient. The sector’s ability to maintain steady output is essential for Zimbabwe’s economy, especially as large-scale mining operations face operational constraints.
Looking forward to 2025, addressing these challenges will be crucial to maintaining growth. The early indications in January suggest that ASM will continue to drive gold production, while large-scale miners must overcome their current challenges to reclaim their previous levels of contribution. A balance between the two sectors will ensure sustained growth in Zimbabwe’s mining industry, which remains a cornerstone of the national economy.

No to Raw Lithium Exports – Chitando

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No to Raw Lithium Exports – Chitando

Zimbabwe has been making significant strides to position itself as a key player in the global lithium market. The country’s lithium resources, currently at the concentrate stage, are central to the government’s broader economic strategy.

By Ryan Chigoche

However, the ultimate goal, according to Minister of Mines and Mining Development Hon Winston Chitando, is to progress from lithium concentrate production to the manufacturing of lithium batteries and solar panels, thus driving local industrialization and sustainable energy solutions.

Speaking at the recently concluded Investing in Africa Mining Indaba event in Cape Town, Chitando outlined the government’s plan for adding value to Zimbabwe’s lithium production, which is an essential step for boosting the country’s economy and securing its place in the rapidly growing global lithium market.

“We have asked the lithium players to come together with a joint strategy for value addition to the final product, which, at this stage, is the production of solar panels and lithium batteries,” Chitando said, emphasizing the importance of a collaborative approach to the future of the lithium sector.

At present, Zimbabwe is still producing lithium at the concentrate stage, but the government is working to create a value chain that transforms this raw material into finished products, including batteries and solar panels. This strategy is crucial not just for increasing the value of Zimbabwe’s lithium but also for creating jobs and stimulating the local economy.

As part of this vision, the government has signed a Memorandum of Understanding (MOU) with a major lithium player for the Mapinga mines, located just outside Harare.

This company, which ranks among the top three in terms of lithium production, has committed to processing lithium beyond the concentrate stage.

“This player is very significant in lithium production,” Chitando noted. “They are going to process value-added lithium beyond the concentrate stage, and it’s an agreement which has been signed by the government.”

The Mapinga project is expected to play a pivotal role in Zimbabwe’s lithium processing sector, bringing the country closer to its goal of producing higher-value lithium products.

In the near future, the government plans to introduce measures that will ban the export of raw lithium concentrate.

“Once this entity is up and running, and they are now value-adding beyond the concentrate stage, we will ban the export of concentrate. You have to sell to them,” Chitando explained. This decision is part of the government’s strategy to ensure that Zimbabwe not only benefits from its vast lithium reserves but also participates in the higher-value stages of the lithium supply chain.

However, the Minister stressed that this move would not be exclusive.

“What we are saying to the lithium players is it’s not exclusive. The agreement we have signed for the value-adding of lithium up to the final product is open for other players who have the appetite, technical, and financial capacity to come up with their own investment plans,” Chitando clarified. This approach encourages collaboration but also offers flexibility for other players in the sector. “They have to work together and invest in a common value addition process, or they can come up with different investments,” Chitando added, emphasizing the need for innovation and investment in the sector.

The government is also mindful of providing time for the sector to adjust to these changes. “No more exports of concentrates; we now want value added to our final product,” said Chitando, signalling the forthcoming shift.

The eventual ban on concentrate exports will be introduced after a specific date, allowing players to prepare for the transition and ensure that the lithium produced in Zimbabwe contributes to the local economy through value addition.

Zimbabwe’s focus on value addition is not only a means of increasing the country’s economic output but also a critical step toward sustainability.

By advancing to the manufacturing of lithium batteries and solar panels, Zimbabwe is positioning itself to contribute to the global shift toward clean, renewable energy.

With the backing of both public and private sector partnerships, Zimbabwe’s lithium industry looks poised to become a cornerstone of its economic growth in the coming decades.

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