shloboe boe
Nqobile Bhebhe, nqobile.bhebhe@chroncile.co.zw
RECENT gold production figures from Fidelity Gold Refinery (FGR) illustrate a robust sector in Zimbabwe, defying expectations and solidifying the country’s position on the global market.
Gold is Zimbabwe’s single largest export earner, averaging US$3 billion annually over the past few years.
In 2016, miners delivered 21.4 tonnes to FGR, up from 18.6 tonnes in 2015.
Deliveries increased to 24 tonnes in 2017 and 33.29 tonnes in 2018. In 2019, the total was 27.66 tonnes, rising to 30.1 tonnes in 2020 and reaching 29.7 tonnes in 2021.
According to FGR, Zimbabwe’s sole buyer of the precious metal, 35.3 tonnes were realised in 2022.
However, the country’s gold production reached a record 36,48 tonnes in 2024, a 21 percent surge from 30.1 tonnes recorded in 2023.
The government had set a target of 35 tonnes.
This achievement comes despite numerous challenges, including economic fluctuations and global market pressures.
The intermittent power supply also significantly affected mining companies, which rely heavily on consistent electricity supply to operate machinery.
Power challenges not only disrupt production but also drive up costs. Many mines rely on diesel generators as a temporary solution, however, high fuel prices and increased maintenance expenses add to their financial burdens.
Mines without access to dedicated power lines are facing severe and ongoing outages, which hinder their ability to meet production targets.
As a result, mining companies are increasingly relying on more expensive energy sources, such as diesel.
The rising costs associated with procuring these alternatives have created significant operational challenges for mining entities.
Despite the challenges faced by authorities and industry players, however, gold production surpassed expectations.
Artisanal and small-scale miners delivered a significant 23.7 tonnes of gold, while primary producers contributed 12.7 tonnes.
The mining sector is vital to Zimbabwe’s economy, accounting for approximately 60 percent of the country’s export earnings and making a substantial contribution to the Gross Domestic Product.
The government has been focusing on diversifying energy sources by investing in new infrastructure.
A noteworthy development is the recent construction of the Hwange Thermal Power Station Units 7 and 8 Project, which has successfully added 600 megawatts to the national grid.
The gold sector carries huge potential for the country’s economy with small-scale miners producing about 60 percent of gold receipts, which has necessitated consistent efforts to support their production.
Industry experts credit this increase in production to the dedication of local miners and the government’s efforts to improve the mining environment.
Streamlining licensing procedures and supporting small-scale miners has resulted in higher output and investment.
Additionally, new technologies and enhanced mining practices have increased efficiency, enabling small operators to optimise their yields.
Mr Payne Kupfuwa, Chief Executive Officer of the Young Miners Foundation, asserts that the rise in gold production, primarily from small-scale miners, is beneficial for the economy and strengthens Zimbabwe’s position in the global gold market.
As demand for gold increases, local producers are well-positioned to take advantage of favourable conditions. He noted that reaching the 36-tonne milestone is just the start, paving the way for even greater achievements in the future.
The sector could produce between 40 to 50 tonnes annually with sufficient and readily available energy supply, he said.
“The young miners’ family was thrilled by the delivery of 36.48 tonnes of gold in 2024, a 21 percent increase over 2023. This significantly contributes to Zimbabwe’s economic growth, as it is tied to gold production. We believe we can achieve annual outputs of 40 to 50 tonnes,” he said.
“Power is essential throughout our gold production process. If power remains available, we can boost gold output. We are optimistic as young miners and are preparing for 2025,” he said.
Mr Kupfuwa is optimistic that investors are likely to respond positively to the production levels, potentially increasing foreign direct investment in the sector.
Chief executive officer of the Zimbabwe Miners Federation (ZMF), Mr Wellington Takavarasha said several factors contributed to the growth in 2024, including the implementation of supportive policies, advantageous pricing and strengthened regulatory frameworks.
Increased mining activities by artisanal and small-scale miners, timely payments to miners and favourable gold prices are other factors, said Mr Takavarasha.
“The introduction of a five percent gold incentive for artisanal and small-scale miners who sold 10kg of gold or more also significantly boosted deliveries,” he said.
Miss Precious Ndimande, a small-scale miner in Filabusi, emphasised that the growth of the mining sector is vital for attracting foreign investment and stabilising the economy.
She said exceeding 35 tonnes of gold production in 2024 signals an upward trend for Zimbabwe’s gold sector.
“With collaborative efforts from the government, miners and stakeholders, a promising future lies ahead.
The coming years may bring further advancements, reinforcing Zimbabwe’s role in the global gold market and significantly aiding the nation’s economic recovery.
“The resilience and determination shown so far indicate a bright future, where Zimbabwe can truly excel on the world stage,” she said.
Additionally, Miss Ndimande said women in mining are eager to contribute significantly to production levels.
Large-scale miners also significantly increased their output.
Dallaglio, the gold division of Padenga, produced 2 025kg in the nine months ending September, representing a 22 percent increase compared to the same period in 2022.
On the other hand, Caledonia produced 1 610 kg by September and has projected a full-year output of approximately 2 200kg for 2024.
Figures from FGF show that the October 2024 output reached 4.3 tonnes, while in December, 4.2 tonnes were produced.
The fourth quarter production increased to 12.2 tonnes, representing the highest quarterly production of the year. This was followed by a production level of 10.4 tonnes recorded in the third quarter of 2024.
Government has indicated plans to set up additional gold centres across provinces to boost deliveries to FGR and promote mineral beneficiation and local value-addition.
FGR operates 17 gold buying centres strategically located across all mining provinces in Zimbabwe.
The government has identified gold centres as among the key intervention strategies needed to bridge the gap between small-scale miners and some of their legacy challenges largely centred on a lack of machinery and technical know-how on modern mining methods.
In the 2025 National Budget statement, Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube, noted that the initiative will be financed through collaboration between the Government and the private sector.
According to the Mining Industry Prospects for 2025, mining executives are optimistic that the sector will register a strong rebound in 2025 with mineral revenue, employment levels and capacity utilisation projected to increase.
“Survey findings show that average capacity utilisation for the mining industry is expected at 90 percent in 2025 up from 84 percent in 2024. Key sectors anticipated to drive the improvement in capacity utilisation are gold, ferrochrome and PGMs,” reads part of the report.
