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In a commentary, Kingdom Financial Holdings Limited said the mining sector was poised for a rebound.
“Statistics show that production has increased between January and February this year to 1 981 kilogrammes up from 840kg recorded at the same period last year.
“Large scale producers accounted for 1 548 kg while the small-scale miners contributed 432kg on the back of rising global prices for the yellow metal,” said the financial institution.

In an interview yesterday, an economic commentator, Mr Fred Ndoro, attributed increased gold output to enhanced recognition of formal channels in delivering the mineral.
He said although there was an increase in gold output during the first two months of the year compared to the same period last year, the statistics could be an understatement, as much of the mineral might have not gone through the formally acknowledged and recorded channels.
“We need to account for our gold so that it goes through the formal system. For example, Fidelity Printers and Refiners needs to be recapitalised so that the institution becomes a credible buyer of gold to attract gold producers,” he said.

Commenting on the implications of the recently gazetted mining activities fees on Zimbabwe’s mineral output, he said:
“The increase in mining activities fees will not have a negative impact in terms of gold production as the issue of fees is not related to productivity.”
In January, the Government increased registration fees by rates that range between 500 percent and 5 000 percent in a move meant to curb speculative activity in the mining industry.

The new mining fees range between $3 000 and $5 million.
The development has seen the Zimbabwe Miners’ Federation (ZMF), which represents the interests of small-scale miners lobbying the Government for exemption in certain mining activities fees.

ZMF has said the new rates discourage prospective miners to venture into the mining industry as well as being retrogressive in boosting mining operations.
Mr Ndoro said Zimbabwe could not continue encouraging more people to venture into the mining industry, as there were a number of registered claims lying idle for speculative purposes.

“For the past 10 years or so the country has been focusing on encouraging people to venture into mining, now our policy should focus on inducement of production.

“The question that should be asked now is where did the Ministry of Mines and Mining Development get  those fees from; are they comparable to the region or any other country in the world, otherwise the idea of gazetting the new fees was to reduce speculative holding of mineral rights,” he said.