The country’s sole gold buyer and exporter, Fidelity Gold Refinery (FGR), has made a critical revision to its incentive threshold that will directly benefit Artisanal and Small-scale Miners (ASM). The new incentive policy, effective immediately, reduces the gold delivery threshold from 20 kilograms to 500 grams per calendar month, Mining Zimbabwe can report.
By Rudairo Mapuranga
This revision is set to provide significant support to the ASM sector, which has struggled to meet the previous high threshold of 20kg to access the 5% gold incentive. Miners, through the Zimbabwe Miners Federation (ZMF), voiced their concerns, noting that the previous target mainly benefited gold-buying agents rather than individual small-scale miners, as very few ASMs were able to deliver such large quantities.
According to ZMF CEO Mr. Wellington Takavarasha, ZMF, which represents the interests of ASM, played a key role in advocating for the revision, explaining that miners who produce will be rewarded by Fidelity.
“The revised threshold is a big win for the small-scale mining sector. It acknowledges the hard work of miners producing smaller quantities and ensures that they are rewarded appropriately for their contributions.”
Takavarasha’s statement underscores the frustration that small miners faced under the old system, which they perceived as geared more toward large buyers or middlemen, depriving them of fair incentives.
The reduction to 500 grams will allow more ASM players to qualify for the 5% incentive, boosting morale and encouraging increased formal gold deliveries. As the ASM sector contributes a significant portion of the nation’s gold output, this change is expected to drive further compliance and transparency while promoting responsible mining practices. The sector’s contribution is seen as crucial to the overall success of Zimbabwe’s gold production goals, with small-scale operations consistently delivering sizable quantities to FGR.
This policy shift aligns with the Zimbabwean government’s focus on enhancing the productivity of small-scale mining as a key pillar in achieving Vision 2030, where the nation is expected to become an upper-middle-income economy. The increase in incentives is expected to help formalize more ASM operations, providing them with financial benefits while simultaneously supporting the broader objective of curbing gold smuggling through formal channels.
With these changes, ASM miners now have the opportunity to increase their contribution to national gold output while benefiting from financial incentives that were previously out of reach for the majority. As the sector continues to grow, further collaborations between ZMF, FGR, and government bodies will likely play a crucial role in supporting responsible gold mining and sourcing in Zimbabwe.
