Zimpapers Logo

Oliver Kazunga, Senior Business Reporter
ZIMBABWE’S total gold output for the first two months of the year spiked by 137 percent to 5 130,7 kilogrammes compared to 2 168,3 kilogrammes in the corresponding period in 2021, official figures show.

According to production figures availed by Fidelity Printers and Refiners, which is the country’s sole gold buyer, the buoyant small-scale mining sector continues to deliver the bulk of the yellow metal delivering 1 331kg last month compared to 930,9kg by the big producers.

The Zimbabwe Miners Federation (ZMF) president, Ms Henrietta Rushwaya whose organisation is the mother body of the small-scale mining industry said small-scale miners have become dominant players.

Players in the mining sector remain optimistic that Zimbabwe will achieve the US$12 billion milestone by 2023.

Ms Rushwaya is on record commending FPR for incentivising the small-scale gold mining industry saying a raft of incentives that have been introduced were attracting new players to the sector thereby boosting production.

Zimbabwe had in the past been losing a lot of gold through smuggling largely to South Africa and Dubai in the United Arab Emirates but more miners are now selling their gold to FPR.

“Rampant leakages are now a thing of the past and as such we are determined to meet the US$12 billion milestone,” said Ms Rushwaya recently.

The Government in October 2019, launched the US$12 billion mining industry roadmap  and the gold sub-sector is expected to contribute US$4 billion.

Through good retention offered by FPR,  many producers are now selling the gold to the sole gold buyer which in the past was losing a lot of the yellow metal to individuals smuggling it to SA.

FPR has come up with a 100 percent forex retention and ZMF has vowed to reciprocate the gesture by delivering the gold to the formal market.

Meanwhile, the Government has said it is satisfied with progress made by mining sector players towards mineral beneficiation in line with the quest for a US$12 billion mining industry by 2023.

The move comes as the Government has, over the past five years, been exploring possible methods of ensuring beneficiation of minerals, with policies targeting mostly platinum, diamonds, gold and chrome.

Mines and Mining Development Deputy Minister Dr Polite Kambamura is on record saying some sector players have made progress and commitments while others are yet to bring in their comprehensive plans.

Zimbabwe can produce up to 25 percent of the world’s supply of diamonds but is not earning much forex from its diamonds.

Diamond beneficiation is expected to earn the country more than US$8 billion annually and create 200 000 jobs.

Zimbabwe is also working on beneficiation of platinum which is produced by Zimplats, Unki and Mimosa.

Mimosa and Unki export platinum as concentrates while Zimplats exports as matte.

In the chrome sector, the Government is not content with the level of beneficiation at smelting level and has given ultimatums for the mining firms to have a base metal refinery.

Chrome in Zimbabwe is mostly sold as ferrochrome while a little percentage is exported as as raw ore.

Zimbabwe Mining and Smelting Company; Maranatha; Zimbabwe Alloys; Riochrome and Oliken in Kwekwe have been the main chrome smelting firms before the coming in of new entrants into the industry, which include some small-scale smelter installations exploiting Dyke ores such as Afrochine Smelting (Pvt), a subsidiary of Tsingshan Iron and Steel Group of China. —@KazungaOliver