Source: New incentives for gold miners | The Sunday Mail
Zimbabwe will enjoy strong agricultural and mining output to support revenues, according to global economic research firm BMI Michael Tome
Business Reporter
IN a bid to increase gold deliveries in 2025, Fidelity Gold Refinery (FGR) has lowered the incentive threshold for gold deliveries from 20 kilogrammes to 500 grammes, making it attractive to deliver gold to the country’s sole buyer of the precious metal.
Zimbabwe’s exclusive gold buyer and exporter now offers a 5 percent incentive on 500 grammes of gold and upwards with immediate effect.
By lowering the threshold, the move is poised to offer substantial relief to the artisanal and small-scale mining (ASM) sector, which had previously found it challenging to meet the huge requirement of 20kg to qualify for the 5 percent gold incentive.
These revisions are expected to boost morale in the ASM sector and increase its contribution to the nation’s overall gold output.
The new incentives make it more financially rewarding for the small players, as benefits that were previously inaccessible to most are now within reach.
In the past, the 20kg threshold favoured gold-buying agents, who typically aggregated gold from multiple sources, rather than individual small-scale miners, who often struggled to meet this high volume requirement due to their limited production capacity.
FGR’s decision comes at a time when the ASM sector is now recognised as a key contributor to Zimbabwe’s gold production, significantly enhancing the country’s foreign exchange earnings.
This policy move by FGR is in line with the Government’s commitment to boosting the productivity of small-scale mining, which has been identified as a crucial component in the broader framework of Vision 2030.
Observers say by implementing supportive measures for small-scale miners, the Government seeks to stimulate job creation, enhance local investment and improve overall resource management within the mining sector.
The enhanced incentives are expected to encourage more small-scale miners to formalise their operations, thereby granting them access to financial benefits while also contributing to the Government’s efforts to reduce gold smuggling by promoting the use of formal channels.
“The gold delivery incentive threshold has been revised, effective immediately, to specifically benefit artisanal and small-scale miners.
“This adjustment aims to support and incentivise small-scale miners who produce smaller gold quantities yet play a vital role in driving the growth of the gold mining sector,” said Fidelity Gold Refinery Ltd general manager Mr Peter Magaramombe.
According to the Zimbabwe Miners Federation (ZMF), the previous threshold disproportionately benefitted gold-buying agents, as most individual small-scale miners were unable to deliver the required quantities.
ZMF chief executive officer Mr Wellington Takavarasha said his organisation actively advocated the change and was confident the revision would yield positive outcomes for small-scale miners and the sector at large.
“Fidelity Gold Refinery has agreed to apply the 5 percent gold incentive to all gold deliveries made under the new threshold bracket using one’s mine name and indicating that you are a ZMF member on the delivery sheet.
“We believe that this revision will have a positive impact on our members and the sector as a whole. We want to thank Fidelity Gold Refinery for listening to our pleas and their continued support,” said Mr Takavarasha.
Zimbabwe’s gold production has demonstrated remarkable resilience, achieving an all-time high of 36,4 tonnes in 2024.
This milestone is attributed to strategic initiatives implemented by the Government and industry stakeholders.
Last year’s output exceeded the Government’s 35-tonne target and surpassed the previous record of 35,3 tonnes set in 2022.
Growth in gold production can be attributed to several key factors, which include new mining initiatives at primary gold producers, improved payments for small-scale miners, increased mining activities by artisanal and small-scale miners, prompt payments to miners and favorable gold prices.
Despite experiencing fluctuations, the gold sector has shown significant growth since 2017.
However, a decline in 2019 was caused by currency instability and payment disputes.
The Government addressed this issue by ensuring 100 percent payment in USD for small-scale producers, resulting in notably improved gold deliveries.
Government interventions have also played a crucial role in achieving national production targets.
Initiatives such as the establishment of 17 gold buying centres, the Gold Development Initiative Fund and mobile buying units have contributed to the growth of the sector.
The expansion of the sector has revitalised the mining industry and positively impacted the national economy, particularly in boosting Zimbabwe’s export earnings.
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