Zimbabwe has recorded a strong increase in gold deliveries, raising hopes of reaching its annual production target. The country delivered 36 tonnes during the first nine months, representing a 20 percent increase.
Figures from Fidelity Gold Refinery show continued growth in the sector. Rising international gold prices and improved domestic production have supported the increase.
Government Confident of Meeting Annual Gold Target
Mines and Mining Development Minister Dr Polite Kambamura says Zimbabwe remains on course to achieve its 50-tonne target.
‘’It is almost three months to go before the year comes to an end, and what we are witnessing is another record-breaking year for gold deliveries that are being sustained as a result of fiscal and monetary reforms. At 36 tonnes already, the trend is just promising, and we are confident as a ministry of achieving the set gold production targets come the end of this year; this is largely emanating from interventions being put in place by Government in positioning the yellow metal as a key enabler for growth,’’ he said.
Meanwhile, economists have highlighted gold’s importance in supporting Zimbabwe’s monetary stability. Higher deliveries could strengthen the reserves backing the country’s Zimbabwe Gold (ZiG) currency.
Gold Boosts Reserves as Miners Expand Production
University of Zimbabwe economics professor Albert Makochekanwa says the rising deliveries support efforts to strengthen the country’s reserves.
‘’The trend since the beginning of this year has been highly impressive, and what this means is a huge boost to the monetary authorities’ initiatives to bolster reserves backing the domestic structured currency so that the stability being realised so far continues. Otherwise, it does far so good for Zimbabwe’s gold mobilisation strategy, which is reaping benefits from Government’s favourable policies to sustain growth and set the tone for positive growth rates in the future,’’ Professor of Economics, University of Zimbabwe Professor Albert Makochekanwa said.
Gold remains Zimbabwe’s leading foreign currency earner, contributing more than 60 percent of total exports.
Small-scale miners account for over 70 percent of gold deliveries. Government incentives, better processing facilities and targeted support programmes have helped drive their contribution.
Additionally, large-scale mining companies have increased investment in production equipment. They are capitalising on favourable international gold prices to expand output.
With 36 tonnes already delivered, Zimbabwe needs another 14 tonnes to reach its annual target of 50 tonnes.
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