Fidelity Gold deliveries up 6,5percent

GOLD deliveries in Zimbabwe grew by 6,5 percent in August to 13,3 tonnes from 11, 4 tonnes in July this year, according to latest data from Fidelity Printers.

Small scale miners suffered a notable decline in output by about 30kgs last month compared to 33,6kgs in July.

In total the sub-sector produced 776,4kgs in July and 745,9kgs in August.

Figures for large scale gold producers are also fluctuating. In July big miners produced 1 040kgs and 1 185kgs in August. In May they produced 1 087kgs and in June 953kgs —recording a decline of 134kgs.

Zimbabwe has set a target of producing 24 tonnes of gold this year from 18, 4 tonnes recorded last year.

Zimbabwe Miners Federation chief executive officer Mr Wellington Takavarasha commented:

“The small scale miners have experienced a lot of disputes, which have gone for a long time in courts unresolved and many gold claims have been forfeited especially in Matabeleland South.

“The relationship between artisanal and small scale miners with Environmental Management Agency is still sour. It needs to be improved so that the sector grows. Also lack of proper mechanisation in the sector has continued to disadvantage the miners. We are likely not to meet the target set”.

The Deputy Minister of Mines Fred Moyo said his ministry was going to visit the issue of gold production and make the necessary interventions.

“We are still revising the figures and we are yet to see the challenges being faced by gold producers as a ministry”, he said.

The Government has said there is scope to raise deliveries from small scale miners by curbing the smuggling of the metal, which is estimated to take up to 50 percent of the gold produced in the country.

Zimbabwe’s gold output is envisaged to increase to 50 tonnes by 2020, generating $1,8 billion annually.

A total of $600 million is required to increase production in the next five years of which $410 million relates to ramp up capital, while $190 million is for sustenance of operations.

Gold is currently contributing around four percent to the fiscus through Government taxes and other fiscal charges, and an additional four percent is generated in the value chain.