Zimbabwe Miners Federation (ZMF) President Ms. Henrietta Rushwaya has hailed the reduction of the gold incentive threshold from 20 kilograms to 500 grams as a game-changer for Artisanal and Small-Scale Miners (ASM), Mining Zimbabwe can report.
By Rudairo Mapuranga
Speaking to this publication after Fidelity Gold Refinery (FGR) announced the new incentive policy, Rushwaya described the move as a direct response to the requests presented to FGR by the ZMF during their strategic workshop just a month ago.
“A very welcome and positive move indeed, especially after we presented the request to Fidelity barely a month ago on the need to differentiate incentives between producers and buyers,” said Rushwaya. “Coming up with such incentives encourages the ASM sector to produce more gold, thereby contributing significantly to economic growth. Such moves will make us more competitive in terms of production, thereby increasing our export receipts.”
The decision by FGR comes at a crucial time when the ASM sector is being recognized as a vital driver of Zimbabwe’s gold output, contributing significantly to the country’s foreign exchange earnings. The revised threshold makes it more accessible for small-scale miners, who often deliver smaller quantities of gold compared to large buyers, to benefit from the 5% incentive. In the past, the 20kg threshold was seen as benefiting gold-buying agents rather than individual small-scale miners, who rarely achieved such high delivery volumes.
The revision of the gold incentive comes at a time when gold deliveries to FGR have shown impressive growth, driven primarily by ASM’s strong performance. In January 2025, total gold deliveries increased by a staggering 31.94% compared to the same period in 2024, reaching 3,134.3456 kilograms, up from 2,375.3259 kilograms last year.
ASM led this surge, delivering 2,265.5474 kilograms, a remarkable 69.89% increase from the 1,333.4371 kilograms delivered in January 2024. Meanwhile, Large-Scale Miners (LSM) saw a 21.66% decline in their contributions, delivering 868.7982 kilograms compared to 1,108.8156 kilograms in January 2024. This shift highlights the increasing reliance on small-scale miners to maintain and grow Zimbabwe’s gold production.
Rushwaya emphasized that the new incentive would further motivate small-scale miners, making the 40-ton annual production target for 2025 “easily attainable.” This is especially significant, as ASM miners consistently delivered the majority of the country’s gold in 2024, accounting for over 65% of the total output.
The performance in January 2025 builds on the positive momentum seen throughout 2024. Gold deliveries to FGR in 2024 increased by 26.65%, with ASM contributing 21.41% more gold than in the previous year. By the end of the year, ASM miners had delivered 23,745.6423 kilograms, outpacing large-scale miners, who delivered 12,741.1103 kilograms. In total, Zimbabwe produced 36,486.7526 kilograms of gold in 2024, a 21.22% increase from 30.1 tonnes in 2023.
In December 2024, ASM delivered 3,127.7228 kilograms, marking a 19.57% increase from November’s 2,615.8037 kilograms. In contrast, large-scale miners experienced a slight decline, delivering 1,034.517 kilograms, down 8.16% from November’s 1,126.3594 kilograms.
The consistent growth in ASM deliveries reflects the resilience and adaptability of the sector despite the many challenges it faces, including rising operational costs and power shortages. Rushwaya noted that incentivizing ASM through policies like the revised threshold is key to sustaining this growth.
With the reduction of the incentive threshold and the continued strong performance of ASM, Zimbabwe’s gold production outlook for 2025 looks promising. The sector is set to continue playing a pivotal role in the country’s economic growth, with small-scale miners now better positioned to benefit from the incentives in place.
However, for long-term success, both ASM and LSM sectors must address their respective challenges. While ASM is gaining momentum, large-scale mining operations must work towards overcoming the operational and infrastructural hurdles that have caused their decline in production. Ensuring a balanced contribution from both sectors will be vital in achieving sustained growth in Zimbabwe’s gold mining industry.
The move by FGR to lower the gold incentive threshold will undoubtedly empower ASM miners, aligning with Zimbabwe’s broader goals of increasing gold production and export receipts, further cementing the sector’s importance to the national economy.
