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Zim misses gold target

Zim misses gold target


Zimbabwe has missed the 40 tonne gold target in 2023 on the back of subdued deliveries in January and February as well as August.

Gold deliveries fell 15% in 2023 to 30.11 tonnes from 35.28 tonnes the previous year.

Fidelity Gold Refinery general manager Peter Magaramombe told ZimHub that the sole bullion buyer and exporter has lined up a number of engagements with various stakeholders to improve gold deliveries.

“Gold deliveries were just above 30 tonnes in 2023 from 35.28 tonnes achieved in 2023 following subdued gold deliveries in January, February and August ,” Magaramombe said.

Analysts said unfavorable mining policies failed miners to reach 40 tonnes.

Some miners cited late payments and policy inconsistencies towards the end of the year.

Of the total gold production, 18.66 tonnes were delivered by small-scale miners who accounted for 62% of total deliveries.

Large scale miners accounted for 11.45 tonnes during the past twelve months.

Experts said there was a need to introduce new policies to ramp up production and capitalise on firm strong commodity prices which are above US$61 000 per kilogrammes.

However, the yellow metal is being smuggled due to umbrella 75% foreign currency retention threshold and delays in payments.

CEO of the Gold Miners Association of Zimbabwe Irvine Chinyenze said the new law has affected miners morale and promotes smuggling.

“We don’t condone criminality but the current 75% forex retention threshold incentivises smuggling,” he said.

Experts say there was a need to review retention levels for miners and capacitation of small scale miners to ramp up production.

The government has increased gold centres to harness the yellow metal across the country.

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