Zim gold production surges 21pc in May

ZIMBABWE’S gold production surged a weighty 21 percent to 2 875 tonnes in May this year from 2 376 tonnes in the previous month, the latest official figures show.

Statistics from Fidelity Gold Refinery (FGR), the country’s sole authorised buyer of bullion, show that Zimbabwe recorded its highest gold deliveries in the first five months of the year in May.

In February gold deliveries were somewhat stagnant at 1 895 tonnes before improving to 2 403 tonnes in March and declining to 2 376 tonnes in April 2023.

Last month’s improvement in gold production is attributable to the de-watering initiatives that have improved accessibility to the mines by small-scale miners who traditionally contribute the bulk of the yellow metal.

Compared to their large-scale counterparts, the small-scale mining industry does not have sophisticated mining equipment and machinery to de-water the shafts, making it difficult for the small-scale miners to carry out their operations.

The Zimbabwe Miners Federation (ZMF) president Henrietta Rushwaya whose organisation is the mother body of small-scale mining operations in the country recently said: “The drop in gold deliveries by the small-scale mining industry is largely due to the incessant rains received in the first quarter this year compared to the same period last year.

“So, each time the country receives more rain compared to the previous season, our mines become inaccessible and difficult to work in, unlike our large-scale counterparts who have the equipment to de-water the shafts.

“So beginning next month, we expect to see gold deliveries of the small-scale miners improving.”

In the 2022/23 rainy season, Zimbabwe received normal to above-normal rains across the country.

Although gold production in May improved, output of the yellow metal for the first five months of the year was marginally lower at 11,4 tonnes compared to 13,1 tonnes in the corresponding period last year.

In the first five months to May 2023, small-scale miners delivered 7 tonnes of the yellow metal while in the corresponding period last year, the small-scale mining industry produced 8,5 tonnes.

Large-scale miners, during the five-month period to May 2023, delivered 4,4 tonnes while in the same period last year, the large-scale miners produced 4,6 tonnes.

Gold is Zimbabwe’s single largest export.

In October 2019, the Government launched the US$12 billion mining industry roadmap from which the gold sub-sector is expected to contribute US$4 billion.

This is on the back of various programmes that include new investments in the gold sector, rehabilitation and expansion of old mines as well as incentive schemes the Reserve Bank of Zimbabwe (RBZ) has come up with to support the small-scale mining industry.

Last year, Zimbabwe’s gold output reached a record high of 35,3 tonnes and this year the mining sector targets 40 tonnes.-herald